Annual Budget 2020-2021 Presented to City Council September 14, 2020 City of Aransas Pass, Texas Pass, Aransas of City CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

CITY OF ARANSAS PASS ANNUAL OPERATING BUDGET FOR FISCAL YEAR 2020-2021 This budget will raise more total property taxes than last year’s budget by an amount of $473,814 (General Fund $289,0217 and Debt Service Fund $184,787), which is a 10.81% increase from last year’s budget. The property tax revenues to be raised from new property added to the tax roll this year is $278,536. City Council Recorded Vote The recoded vote for each member of the governing body voted by name voting on the adoption of the Fiscal Year 2020 (FY 2020) budget as follows: September 14, 2020 Ram Gomez, Mayor Jan Moore, Mayor Pro Tem Billy Ellis, Councilman Carrie Scruggs, Councilwoman Vick Abrego, Councilwoman

Tax Rate Adopted FY 19-20 Adopted FY 20-21 Property Tax Rate $0.799194 $0.799194 No-New-Revenue Tax Rate $0.715601 $0.764378 NNR M&O Tax Rate $0.451317 $0.466606 Voter Approval Tax Rate $0.799194 $0.818847 Debt Rate $0.311772 $0.314914

At the end of FY 2020, the total debt obligation (outstanding principal) for the City of Aransas Pass secured by property taxes is $11,870,000. More information regarding the City’s debt obligation, including payment requirements for current and future years, can be found in the Debt Service Funds section of the budget document.

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TABLE OF CONTENTS

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Table of Contents Mission Statement 1 City manager's Message 3 City Profile 7 Form of Government 10 History 11 Demographic & Economic Information 13 Area Attractions 14 City Council 15 Administrative Officials 16 Organizational Chart 17 Budget Summary 19 Consolidated Budget Total by Funds 21 Revenues Sources 26 Consolidated Expenditures 29 Building the Budget 33 Budget Process 35 Budget Calendar 37 Basis of Accounting 38 Basis of Budgeting 38 Fund Accounting 39 Fund Structure 39 Budget Ordinance 41 Ratify Increase in Revenues 43 Property Tax Ordinance 44 General Fund 45 General Fund Budget Fund Summary 47 General Fund Revenues 53 General Fund Revenues by Line Item 57 General Fund Expenditures 65 General Fund Expenditures by Department 69 City Council 71 City Manager 74 Information Technology 77 Finance 80 Emergency Management 83 Tax 86 Contractual & Support 88 Facilities & Building Maintenance 90 Municipal Court 92

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Table of Contents Police Department Administration 96 Police Department Investigation 100 Police Department Patrol 103 Police Department Communications 106 Police Department Animal Control 110 Police Department Facilities 114 Fire Department 116 Library 121 Citizen's Collection Station 125 Garbage 127 Building/Code Enforcement 129 Planning 133 Streets & Drainage 136 Public Health 140 Parks & Recreation 142 Public Works Facilities 146 Debt Service Fund 149 Debt Service Overview 151 General Debt Service Fund 152 Debt Schedule 153 Water & Sewer Fund 155 Water & Sewer Fund Budget Summary 157 Water & Sewer Revenues 163 Water & Sewer Revenues by Line Item 167 Water & Sewer Expenditures 171 Water & Sewer Expenditures by Department 175 General 179 Administration 180 Billing 183 Meter Readers 187 Water Production 191 Water Distribution 194 Sewer Collection 198 Sewer Treatment 202 Harbor Fund 207 Harbor Fund Revenues & Expenditures 214 Aquatic Center Fund 217 Aquatic Center Fund Revenues & Expenditures 223 Civic Center Fund 227

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Table of Contents

Civic Center Fund Revenues & Expenditures 233 Forfeiture Fund 237 Forfeiture Revenue & Expenditures 240 Municipal Court Technology Fund 241 MC Technology Fund Revenues & Expenditures 243 Municipal Court Building Security Fund 245 MC Building Security Fund Revenues & Expenditures 248 Municipal Court Jury Fund 249 MC Jury Fund Revenues & Expenditures 252 Hotel/Motel Fund 253 Hotel/Motel Fund Revenues & Expenditures 258 E911 Fund 259 E911 Fund Revenues & Expenditures 262 Municipal Development District (MDD) Fund 263 MDD Fund Revenues & Expenditures 269 Crime Control & Prevention District (CCPD) Fund 271 CCDP Fund Revenues & Expenditures 275 Policies 277 Budget Amendment Policy 279 Budget Policy 280 Capital Improvement Plan Policy 283 Debt Management Policy 284 Finance Policy 285 Fund Balance Policy 287 Investment Policy 290 Purchasing Guidelines 297 Glossary 303

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Mission Statement

We work closely with our citizens to provide services and facilities that provide an outstanding quality of life. In fact, we are dedicated to making Aransas Pass the most desirable place to live, work, play, and visit. We envision and work toward creating and maintaining a safe and secure environment, an informed citizenry, as well as high quality educational, recreational, and cultural opportunities, all within a robust and vibrant economic environment. We pledge, through a strong sense of teamwork and customer service, to be respectful of individual dignity and rights, to remain fiscally responsible, too ethically and responsively interact with our citizens, to innovate when addressing community needs, and, in doing all that, be an organization in which we are all proud to serve.

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CITY MANAGER’S MESSAGE

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4 CITY OF ARANSAS PASS Gary Edwards, City Manager

September 3, 2020

Mayor Ram Gomez City Council City Hall Aransas Pass, Tx

Dear Mayor and Council:

Fiscal Year 2020-21 could be a watershed year for the Aransas Pass budget. For the first time in memory, our City Budget has a healthy General Fund Balance. The General Fund Balance is a good indicator of a City’s financial health. Additionally, Sales tax and property tax revenues remain stable and strong. In the case of sales tax, we expected the national, state and local sales to be down due to Covid, however, here in Aransas pass the sales tax numbers remain strong. Overall, the long-term economic picture for Aransas Pass continues to be bright. The recovery from Hurricane Harvey is on the downhill side. After showing signs of weakness immediately after Harvey, property tax revenue is bouncing back and will continue to improve as homes are built, repaired or replaced. The Fiscal Year 2021 Budget is the third post-storm budget. It continues to reflect many of the problems caused by Harvey, as well as some the strengths that resulted.

Some of the problems from Harvey that initially impacted the FY19 and FY20 budgets include a weakened water/sewer fund caused by fewer occupied residences. However, both are improving. In fact, we may be stronger by the end of this fiscal year than before the hurricane. More specifically, Revenue from the Water/Sewer fund in 2018, immediately after Hurricane Harvey, was $1,850,169. That total was down considerably because of residents and homes lost due to the storm. As we started to rebuild Aransas Pass that number in 2019 increased to $2,545,712. But, better yet, in 2020 it is projected to be $2,789,905. That is higher than prior to Harvey. New homes are being built and damaged homes and apartments are being repaired. This has a positive impact on the property tax revenue and the water/sewer fund.

The City of Aransas Pass has a multi-year history of a large water loss. In other words, the amount of water purchased compared to the amount sold. The gap between the two is the water loss. Nationally, an acceptable loss is in the area of 10%. That will allow the things that cannot be prevented, such as occasional leaks, or even theft. However, 600 W. CLEVELAND - ARANSAS PASS, TEXAS 78336 PHONE (361) 758-5301 - FACSIMILE (361) 758-4854 5 until about a year ago, our loss was hovering around 40%. That is an astoundingly high number. Thanks to the work of the public works department and the location of long- undetected leaks, we have that number down to about 14%. That is an impressive improvement and it helps the City’s financial health.

The sales tax is our second strongest source of revenue. During FY19 we stopped using calendar year 2018 as a sales tax measurement year. That year is an anomaly and not a good indicator of purchases in Aransas Pass. An abnormally large amount of recovery work was going on in calendar year 2018 creating a bias in the sales tax amounts. Consequently a better indicator is calendar year 2017. When current sales tax totals are received we now compare those to 2017 and 2019 and not 2018. For every month in 2019, when using this more accurate measurement, sales tax figures are increasing. Interestingly, current FY20 sales tax revenue are now higher than even 2018. We cannot predict how long that will continue.

Frankly, the economic picture for Aransas Pass remains bright, but we also have the immediate challenge of maintaining a City Operating Budget that has been rebuilt following many years of weakness, including a hurricane. .In other words, we can’t slip back. Elected officials and staff have shown their willingness to accomplish this goal, so I am confident what was successfully started in 2018 will continue in FY21. With the continued community recovery from Category 4 Hurricane Harvey, citizens also are paving the way for an economically stronger Aransas Pass. This, in turn, helps strengthen the City Budget.

Sincerely, Gary Edwards, City Manager

600 W. CLEVELAND - ARANSAS PASS, TEXAS 78336 PHONE (361) 758-5301 - FACSIMILE (361) 758-4854 6 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

CITY PROFILE

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City Profile

Aransas Pass, Texas

Aransas Pass is the heart of the Coastal Bend. Located at 27°54′N 97°8′W (27.9019, -97.1395) on the coast of Texas touching the shores of Redfish Bay. The city limits of Aransas Pass encompass most of Redfish Bay and its islands, most of which are in Nueces County, as well a portion of Aransas Bay in Aransas County. The land portion of the city is primarily in San Patricio County, extending north into Aransas County. The City is on the mainland of Texas and is connected to Mustang Island (which contains the City of Port Aransas) via a 6-mile (9.7 km)-long causeway, and a free ferry that carries vehicles to the island. By Texas State Highway 35 and U.S. Route 181, Aransas Pass is 20 mi (32 km) northeast of Corpus Christi.

• ZIP Codes: 78335-78336 • Area Code: 361 • Population: 8,123 (2018) • Elevation: 16ft. (5m) • Counties: San Patricio, Aransas, Nueces • Density 160/sq. mi. (61/km2)

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Form of Government

The City of Aransas Pass was incorporated April 5, 1910. The City is governed by a Council-Manager form of government. The City Council consists of the Mayor and 4 Council Members. The Positions of Mayor, Place 1, and Place 3 are to be elected on odd- numbered years and the positions of Place 2 and Place 4 shall be elected during even- numbered years. The members of the Council shall serve for a term of two (2) years from the date of their election. The City Council appoints a City Manager who will be the Chief Administrative Officer of the City and will be responsible to the City Council for the efficient administration of all of the affairs of the City.

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History

The first people to discover Aransas Pass were the Karankawa Indians, however, by the 1830’s there were very few Karankawa remaining. The name ‘Aransas’ was influenced by Spanish Catholic Missionaries and was named for the ‘Pass’ between Mustang and St. Joseph’s Islands. Pryer Lea was the first of many to attempt to turn Aransas Pass into a flourishing deep water port city. He founded the Aransas Road Company and began his attempts at creating the railroad and turnpike to connect the Coast with San Antonio. In the 1850’s his failed attempts were then revived by the Central Transit Company, unfortunately, due to the Civil War funding ran out quickly. The dreams of having a deep water port city had not ended and in 1879 $10,000 was raised by a Rockport group to help fund this project. Also, in 1879 Congress passed a resolution to authorize Aransas Pass to deepen the waters. In 1882 a charter was put in place by the Texas Homestead and Farmers Association (Aransas Pass Land Company) to purchase and subdivide the land. In 1890 combined efforts led to yet another project to dig a channel from the Gulf to the proposed Harbor City Location. In 1891 work had begun on the Terminal Railroad linking Aransas Pass to the mainland. The Terminal Railroad was the link between the San Antonio and Aransas Pass Railway and the offloading of barges to bring the rock being used for the jetty. In 1893 the news of this development had the Country buzzing with excitement. In 1893 to accommodate the flood of people and to further give reason for excitement the 3 story Hoyt Hotel (Bayview Hotel) opened its doors. Yet again the dream of creating this flourishing city was crushed by the panic of 1893. In 1899 the US Corps of Engineers took on the $401,554 project given to them at no charge by the previous promotors. Finally in 1907, after many years and

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multiple failed attempts a second jetty and deep water channel had been completed. Thomas Benton Wheeler, a former Lieutenant Governor of Texas was able to successfully entice real estate developers to buy 12,000 acres from Mary McCampbell. This opened the door for the biggest land sale in South Texas. 6,000 land lottery tickets were intended to be sold at $100 a ticket until Postal Inspectors forced competitive bidding to take place.

The Lottery included the chance to win 3 prizes and 1 city lot per ticket. Developers continued dredging the channel and forming the Terminal Railroad to join the Southern Pacific main line. Things seemed to be moving in the right direction on September 13, 1912 records stated that in two weeks 47,093 bales of cotton had been shipped. In 1910 the city was incorporated and W.H. Vernor was elected Mayor. In 1916 the resilient city was hit with a hurricane and was able to recover within two months. In 1919 the city was not as fortunate receiving severe damage to the city and its shipping facilities. June 5, 1920 the dream of having a flourishing deep water port city ended when Corpus Christi was chosen over Aransas Pass and Rockport. The city continued to grow despite this set back and in 1892 the school system was started by a combined Methodist church and school building. Charles T. Black was the first Post Master when the Post Office opened in 1892. In 1911 a two story school building was erected and in 1988 the building was still used as the central office for the school district. A Seawall was built after the devastating hurricane of 1919 and opened the door for a new venture for the city. Fishing and shrimping became the new industry for the city of Aransas Pass and at one time the city held the largest shrimping fleet on the Gulf Coast. The city continues to be a fishing coastal town where tourists and locals alike can enjoy the waterfront properties and activities.

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Demographic and Economic Information Population Education 2019 Estimate 8,388 High School graduate or higher (age 25+) 75.3% 2010 Census 8,204 Bachelor's Degree or higher (age25+) 9.9%

Families and Living arrangements Health Average household sizes 2.58 Persons with disability under 65 11.8% number of households 3,088 Persons without health insurance under 65 22.7% living in same house 1 year ago 71.4% language other than English Income and Poverty spoken in the home 30.2% Median Household Income $ 44,583 Per Capita Income in past 12 months $ 21,933 Age and Sex Persons in poverty 16.2% Persons under 5 years 7.9% Persons under 18 years 24.7% Economy Persons 65 years and over 19.8% Civilian Labor Force (16+) 54.7% Female persons 48.9% Civilian Labor Force (Female, 16+) 47.2% Total Retail Sales, 2012 ($1,000) 267,670 Race Total retail Sales per Capita 2012 $ 32,319 White 86.5% Total Accommodation & Food Services Black or African American 4.0% Sales, 2012 ($1,000) 18,970 American Indian and Alaska native 0.8% Asian 0.7% Businesses Native Hawaiian and Other Pacific Islander 0.0% All Firms 766 Two or More Races 6.2% Men-Owned Firms 265 Hispanic or Latino 45.0% Women-Owned Firms 279 White alone, not Hispanic or Latino 49.2% Minority-Owned Firms 257 Nonminority-Own Firms 472 Population Characteristics Veteran-Owned Firms 52 Veterans 791 Nonveteran-Owned Firms 639 Foreign Born Persons 7.7%

Source: US Census Bureau

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Area Attractions

Aransas Pass offers a wide variety of events, parks, water activities, and more. Annual Events • Shrimporee • Baconfest • Hotties on the Harbor • 4th of July Fireworks Celebration • Fall Feast

PARKS • Aquatics Center • Community Park • Conn Brown Harbor Park • Newbury Park • Lighthouse Lakes Paddling Trails

Things to Do • Kayaking • Fishing • Theater • Shopping • Coastal Dinning • Farmer’s & Artisan Market

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City Council

Mayor Ramiro Gomez

Councilwoman Place 1 Councilman Place 2 Carrie Scruggs William “Billy” Ellis

Councilwoman Place 3 Mayor Pro-Tem Councilwoman Place 4 Jan Moore Vickie Abrego

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City of Aransas Pass

Administrative Officials

City Manager Gary Edwards

City Secretary Mary Juarez

Chief of Police Eric Blanchard

Human Resources Christina Beard

Information Technology Director Jeff Martin

Finance Director Sandra Garcia

Fire Chief Nathan Kelly

Public Works Director Fernando Quintanilla

Building Official Burl Smith

Community Enrichment Director Sarah Lee

Harbormaster Chuck West

Planning Omei Amo-Mensah

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Organizational Chart

Aransas Pass Citizens

Mayor and Council

Municipal Boards City Manager City Secretary City Attorney Court Judge

Admin Asst HR

Information Community Municipal Finance Public Safety Public Works Water/Sewer Harbor Technology Enrichichment Court

Building/Code Water Payroll Police Library Enforcement Production

A/P, A/R Aquatic Planning Water Accounting Fire Distribution Center

Streets & Waste Water Utility Billing Animal Civic Center Control Drainage Collection

Meter Emergency Parks & Waste Water Readers Management Recreation Treatment

Code Enforcement

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BUDGET SUMMARY

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City of Aransas Pass Consolidated Budgeted Totals by Fund FY 2021 Adopted Budget

Estimated Anticipated Estimated Beginning Revenues Anticipated Anticipated Ending Fund Fund Fund Balance Sources Expenditures Change Balance

100 General Fund 4,237,890 10,853,945 10,881,078 (27,133) 4,210,757

150 Debt Service Fund 482,529 1,959,489 2,183,888 (224,399) 258,130

200 Water & Sewer Fund 6,314,321 4,234,500 4,147,353 87,147 6,401,468 300 Harbor Fund 855,948 3 53,699 3 52,871 828 85 6,776

400 Aquatic Center (54,661) 374,279 374,279 - (54,661)

450 Civic Center (180,488) 395,539 395,536 4 (180,484) 500 Forfeiture Funds - Federal 483,104 6,000 183,250 (177,250) 305,854

501 Forfeiture Funds - State 24,015 - 2,500 (2,500) 21,515

502 MC - Technology Fund 2,180 4,575 6,700 (2,125) 55

503 MC - Building Security Fund 39,962 4,300 - 4,300 44,262

505 MC - Jury Fund 50 100 - 100 150

700 Hotel/Motel Fund 116,568 201,000 209,000 (8,000) 108,568

800 e911 Fund 413,899 99,800 132,119 (32,319) 381,580

900 Municipal Development District 1,350,343 1,109,000 901,842 207,158 1,557,501

950 Crime Control & Prevention District 1,740,679 1,167,500 1,151,050 16,450 1,757,129

The Unassigned General Fund Balance is 38.70%. The City’s Fund Balance Policy dictates that the Unassigned Fund Balance should be 40%.

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City of Aransas Pass Consolidated Budget Summary Fiscal Year 2021

Governmental Fund Types Crime Other Debt Municipal Control & Non- General Service Develop. Prevention Major Fund Fund Dist. District Funds

Fund Balances-Beginning of Year 4,237,890 482,529 1,350,343 1,740,679 1,079,778

Revenues

Taxes

Property Taxes 3,690,305 1,959,489

Sales Taxes 2,300,000 1,100,000 1,150,000

Franchise Taxes 348,250

Mixed Beverage Taxes 15,500

Occupancy Taxes 200,000

Licenses and Permits 564,300

Intergovernmental 130,000

Charges for Services 1,787,300 55,000

Rents and Royalties 328,000

Industrial Development Districts and PI 305,840

Fines and Forfeitures 160,700 8,600

Interest Income 31,000 9,000 17,500 8,175

Drug Forfeitures

Donations 7,500

Other 78,200 Total Revenues 9,746,895 1,959,489 1,109,000 1,167,500 271,775

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ANNUAL BUDGET FY 2020-2021

Governmental Fund Types Crime Other Debt Municipal Control & Non- General Service Develop. Prevention Major Fund Fund Dist. District Funds

Expenditures

General Government 2,206,931 108,500 4,050

Public Safety 4,886,743 324,569

Public Works 1,740,175

Sanitation Health & Welfare 1,300,294

Water & Sewer

Culture and Recreation 594,335

T ourism 209,000

Debt Service

Principal 1,764,437 440,000

Interest and Fiscal Charges 419,451 113,342

Capital Outlay 152,600 Total Expenditures 10,881,078 2,183,888 661,842 4,050 533,569

( y) revenues over/under expenditures (1,134,183) (224,399) 447,158 1,163,450 (261,794)

Other Financing Sources (Uses)

Transfers In 44,000

Transfers Out 1,107,050 (240,000) (1,147,000)

Insurance Proceeds

Grants Received -

Bond Proceeds Total other financing sources 1,107,050 - (240,000) (1,147,000) 44,000

Net Change in Fund Balance (27,133) (224,399) 207,158 16,450 (217,794)

Fund Balances-End of Year 4,210,757 258,130 1,557,501 1,757,129 861,984

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ANNUAL BUDGET FY 2020-2021

City of Aransas Pass Consolidated Budget Summary Fiscal Year 2021

Proprietary Fund Types

Water & Civic Aquatic Sewer Center Center Harbor Combined Fund Fund Fund Fund Total

Fund Balances-Beginning of Year 6,314,321 (180,488) (54,661) 855,948 15,613,143

Revenues

Taxes

Property Taxes 5,649,794

Sales Taxes 4,550,000

Franchise Taxes 348,250

Mixed Beverage Taxes 15,500

Occupancy Taxes 200,000

Licenses and Permits 564,300

Intergovernmental 130,000

Charges for Services 4,229,000 155,540 194,210 6,421,050

Rents and Royalties 353,699 681,699

Industrial Development Districts and PILT 305,840

Fines and Forfeitures 169,300

Interest Income 5,500 71,175

Drug Forfeitures -

Donations 7,500

Other 78,200 Total Revenues 4,234,500 155,540 194,210 353,699 19,192,608

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Proprietary Fund Types

Water & Civic Aquatic Sewer Center Center Harbor Combined Fund Fund Fund Fund Total

Expenditures

General Government 288,871 2,604,302 Public Safety 5,211,312

Public Works 1,740,175

Sanitation Health & Welfare 1,300,294

Water & Sewer 3,666,693 3,666,693

Culture and Recreation 395,536 374,279 1,364,150

T ourism 209,000

Debt Service -

Principal 275,563 2,480,000

Interest and Fiscal Charges 89,028 621,821

Capital Outlay 152,600 Total Expenditures 4,031,284 395,536 374,279 288,871 19,350,347

( y) revenues over/under expenditures 203,216 (239,996) (180,069) 64,828 (157,739)

Other Financing Sources (Uses)

Transfers In 240,000 180,069 1,571,119

Transfers Out (116,069) (64,000) (1,571,119) Insurance Proceeds -

Grants Received -

Bond Proceeds - Total other financing sources (116,069) 240,000 180,069 (64,000) (157,739)

Net Change in Fund Balance 87,147 4 - 828 (157,739)

Fund Balances-End of Year 6,401,468 (180,484) (54,661) 856,776 15,455,404

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CONSOLIDATED CITY BUDGET

The FY 2021 budget for all funds totals $20,763,726 in revenues and $20,921,466 in expenditures, including transfers between funds and grant spending. In accordance with City Council guidelines, the budget is fiscally sustainable. The City’s budgeted General Fund Balance for FY 2021 is 38.70%. The fund that comprise Other Non- Major Funds under Government Fund Types, shows expenditures exceeding revenues by $217,794 due to expenses in the Drug Forfeiture Fund.

Please note that the consolidated budget does not include the Capital Project Budget component unit fund. This fund is presented separately.

CONSOLIDATED REVENUES

FY 2021 citywide budgeted revenues total $20,763,726. Primary revenue sources are charges for services, property tax, and sales tax. Each of these revenues sources are expected to increase in FY 2021.

CITYWIDE REVENUE SOURCES

FY 2021 Revenue Type Budget % Property Taxes 5,649,793 27.2% Franchise Taxes 348,250 1.7% Occupancy Taxes 200,000 1.0% Licenses and Permits 564,300 2.7% Charges for Services 6,421,050 30.9% Rents and Royalties 681,699 3.3% Sales Taxes 4,550,000 21.9% Industrial Development Districts and P 305,840 1.5% Fines and Forfeitures 169,300 0.8% Other 172,375 0.8% Transfers In 1,701,119 8.2% 20,763,726 100.0%

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CITYWIDE REVENUE SOURCES

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• PROPERTY TAX is a $0.79194 tax levied on each $100 of assessed real property value. • FRANCHISE TAXES are the rental costs paid by utilities that use the city’s right- of-ways to their city property to transmit their services. • OCCUPANCY TAX is a local hotel tax that the city collects. The current rate is 7%. • LICENSES AND PERMITS are fees that are collected through the building department. • CHARGES FOR SERVICES include sanitation, water, sewer, civic center, and aquatic center fees. • RENTS AND ROYALTIES ate collected from the Lessees. The majority are Harbor related leases. • SALES TAX is a 1% tax on all retail sales, leases and rentals of most goods, as well as taxable services. • INDUSTRIAL DEVELOPMENT DISTRICTS AND PILT are agreements that contractually protect companies located in the designated district from annexation and City requirements in exchange for a Payment in Lieu of Taxes (PILOT). • FINES AND FORFEITURES – Fines are the mandatory punishment meted out by the municipal courts. Forfeitures are seized properties that were used in, and the proceeds gained from, commission of certain crimes. • OTHER REVENUES consist of mix beverage tax, interest income, donations, and miscellaneous revenues. • TRANSFERS in are revenues transferred from one fund to another.

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CONSOLIDATED EXPENDITURES

Consolidated citywide expenditures for FY 2021 are budgeted at $20,921,466 including transfers. As previously mentioned, these numbers do not include expenditures for Capital Projects, which are presented as a separate component unit fund.

By service Public Safety is the largest expenditure, representing 24.91% of the total. Starting pay is being set at $15 per hour.

CITYWIDE – EXPENDITURES BY SERVICE TYPE

Transfer Out General Capital Outlay 7% 1% Government 12% Debt Service 15%

Tourism 1%

Public Safety Culture and 25% Recreation 7%

Water & Sewer 18% Public Works Sanitation Health & 8% Welfare 6%

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CITYWIDE – EXPENDITURES BY SERVICE TYPE

Combined Expenditure by Service Total %

General Government 2,604,302 12.45%

Public Safety 5,211,312 24.91%

Public Works 1,740,175 8.32%

Sanitation Health & Welfare 1,300,294 6.22%

Water & Sewer 3,666,693 17.53%

Culture and Recreation 1,364,150 6.52%

T ourism 209,000 1.00%

Debt Service 3,101,821 14.83%

Capital Outlay 152,600 0.73%

Transfer Out 1,571,119 7.51%

20,921,466 100.00%

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Expenditures by Fund

The General Fund accounts for 52.1% of the City’s expenditures. Police, Fire, Parks, and Streets are the major departments included in this fund. The Water & Sewer Fund with its Water Production and Distribution, Sewer Collection and Treatment, and Meter Reading and Billing departments represents 19.82% of expenses. Debt services represents 10.44% with smaller funds making up the remaining amount.

Citywide Expenditures by Fund:

General Fund Debt Service Fund Water & Sewer Fund 52% Harbor Fund 10% Aquatic Center Civic Center Forfeiture Funds - Federal

20% Forfeiture Funds - State Technology Fund 5% Hotel/Motel Fund 4% 2% E911 Fund Municipal Development District 2% 1% 1% 2% Crime Control & Prevention District 0%

1% 0%

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BUILDING THE BUDGET

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Budget Process

Development of Proposed Budget

The City Manager is responsible for the development of the City operating and capital budgets. The Finance Department assist the City Manager in the management, coordination, development and production of the City’s annual operating and capital budgets. In developing budgets, Department Directors reference their departmental missions and objectives, and maintain the priorities established by the City Council. The Department Director manages and coordinates all departmental efforts to produce the department budget. The budget is then submitted to the City Manager and the Finance Department for review.

The close involvement of Department Directors in the budget process is essential. Department Directors are the best source of information in identifying both service needs and opportunities.

In the course of reviewing departmental budget request, the City Manager considers the following:

• Do performance and service levels justify the budget request? Could the requested funds be utilized elsewhere within the organization? Are all budget requests totally with justification or merit? • Are the spending request credible? What are the basis and assumptions placed within the request? • Is the approach to a particular service the best way to achieve the stated objective based on the department’s previous track record? • How significant or valuable are programs, services and operational enhancements to the community? If reductions in existing services are necessary, which will be eliminated first? • Will service enhancements lead to long-term savings? • What consideration has the Department Director given to reducing the cost of existing programs through better utilization of personnel, improved work methods and automation?

Proposed Budget Submittal

Sixty days prior to the beginning of the fiscal year, the City Manager submits the proposed budget to City Council and files one with the City Secretary. The City Manager presents the proposed budget to the City Council during regular meetings and work sessions.

35 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Public Hearing/Budget Adoption

After the public hearing, the City Council adopts a balanced budget prior to October 1st, the beginning of the fiscal year. If Council fails to adopt the budget by this date, the amounts appropriated for the current fiscal year are deemed adopted for the ensuing fiscal year on ta month to month basis. All items will be prorated until Council adopts a budget.

Budget Administration

The administration for the budget is a year round activity for both the City Manager and Department Directors. Revenues and expenditures are monitored on a regular basis and financial reports are submitted to the City Council for review on a monthly basis. Departmental expenditures are subject to the City’s Purchasing Policy to insure the highest degree of accountability. Operating expenditures are controlled at the department level for General Fund and at the fund level for other funds and may not exceed appropriations at those levels. Capital project expenditures are controlled at the fund and project level and may not exceed appropriations at any of those levels.

Budget Process Calendar

Planning April

Department's Adopt Budget Budgets September May

City Council's City Manager's Budget Budget Aug.- Sept. June & July

36 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Planning (April)

• April 20 – City Council appoints Budget Committee member. • April 22 – Work session presentation of budget calendar. • April 30 – Preliminary values are due from Chief Appraiser.

Department’s Budget (May)

• May 4 – Regular session presentation of budget calendar • May 13 – Budget worksheets are delivered to department directors • May 18 – Budget Public Hearing – To provide opportunity for citizens to offer input into to the budget process.

City Manager’s Budget (June & July)

• June 18 – Strategic Budget Planning Session – This session includes Mayor, City Council, and Department Directors. The purpose of this session is to give the Mayor and City Council the opportunity to offer goals for upcoming budget. • June 19 – Budget worksheets are returned to City Manager and Director of Finance. • June 26 to July 2 – Budget Committee meeting with Department Heads. • July 14 – Budget Preview to City Council. • July 24 – Certified appraisal Rolls are delivered by the Chief Appraiser. • July 30 – Work session with Mayor and Council. Present summary of projected available funding for the upcoming fiscal year along with proposed expenditures. • July 31 – File proposed budget with City Secretary.

City Council (August – September)

• August 3 – Presentation to Mayor and Council – summary of proposed budget and Capital Improvement Plan. • August 17 – City Council set date for Budget & Property Tax Rate Public Hearing. • September 8 – Public Hearing for the Property Tax Rate and Budget • September 14 – Adoption of Budget and Property Tax Rate.

Adopted Budget October

• Oct 1 – Fiscal year begins; implementation of adopted budget. • Oct 4 – Distribute final budget to departments.

37 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Basis of Accounting

The accounting and financial reporting policies of the City conform to Generally Accepted Accounting Principles (GAAP) and the accounting principles prescribed by the Governmental Accounting Standards Board (GASB). The City uses fund accounting to ensure and demonstrate compliance with finance related legal requirements.

Governmental Funds - Governmental activities, which normally are supported by taxes, grants, and intergovernmental revenues, are reported in governmental funds. The largest governmental fund is the General Fund. Other governmental funds include special Debt Service Fund, Municipal Development Fund, Crime Control and Prevention District, and Other Non- Major Funds. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current year or soon enough thereafter to pay liabilities of the current year. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.

Proprietary Funds - The proprietary fund category includes Water and Sewer Fund, Aquatic Center Fund, Civic Center Fund, and Harbor Fund. These funds are used to account for activities that are similar to private sector businesses. The largest proprietary fund is the Water Fund. Proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flow.

BASIS OF BUDGETING

In most cases, the City’s budget follows the same basis as the accounting and financial reporting previously described. Exceptions to this treatment are as follows:

• Capital outlay is budgeted as expenditures in the year purchased. • Depreciation is not budgeted. • Principal payments are shown as expenditures rather than a reduction of the liability. • Purchases of inventory are considered to be expenditures when purchased, not when sold or used. • Accrued compensated absences are not considered expenses until paid.

38 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Fund Accounting

Fund accounting is used for both budgeting and accounting purposes. Each fund is established for a specific purpose and is considered a separate accounting entity.

The flow of revenues and expenditures within each fund is somewhat like a bank checking account. Revenues are deposited into the account and are used to fund maintenance and operations throughout the year. At the end of the fiscal year, any excess of revenues over expenditures remains in the account and is called fund balance. The fund balance can be reserved or designated to be spent only for certain items in the future, such as capital projects.

City Council must approve, or appropriate, any expenditure from the various funds, including expenditures from reserves. The authorization is typically granted before the fiscal year begins, but it can also be done with approval from City Council anytime during the year, if sufficient funds are available.

Fund Structure

In accordance with the Governmental Accounting Standards Board (GASB), our annual report is grouped in reporting sections for governmental funds, proprietary funds and component unit funds. Funds are further broken down into fund types within each GASB grouping. Fund types include general, capital projects, special revenue, debt service, and enterprise. The next level down is individual funds, which are shown below with our internally assigned fund number in parenthesis.

Governmental Fund Category

General Capital Projects Special Revenues Debt Service General Fund Grants & Bonds Fund Municipal Development Fund General Debt Service Crime Control & Protection Fund e911 Fund Hotel/Motel Fund Technology Fund Building Security Fund Jury Fund Drug Forfeiture Fund Proprietary Fund Category

Major Enterprise Non Major Enterprise Water and Sewer Fund Aquatic Center Fund Civic Center Fund Harbor Fund

39 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

General Fund – The General category is a governmental fund type that includes the majority of City services. Services provided in this category include: City Council, City Secretary, City Attorney, Finance, Information Technology, Municipal Court, Police, Fire, Planning, Building/Code Enforcement, Parks and Recreation, Streets, Public Health, and Library. The following funds are included in the General category:

• General Fund

Capital Projects Fund - The following funds are governmental funds used to account for resources that are restricted, committed or assigned to expenditure for capital outlays:

• Grants & Bond Fund

Special Revenue Funds - The following funds are governmental funds used to account for specific revenue sources that are legally restricted or committed to expenditure for specified purposes:

• Municipal Development District Fund • Crime Control and Prevention District Fund • E911 Fund • Hotel/Motel Fund • Technology Fund • Building Security Fund • Jury Fund • Drug Forfeiture Fund – both state and federal Debt Service Fund - The following fund is a governmental fund type, also known as an interest and sinking fund, and is used to account for the accumulation and expenditure of funds required to make principal and interest payments on tax supported debt:

• General Debt Service Fund

Enterprise Funds - The following funds are proprietary funds used to account for business type activities that are financed primarily through fees charged for goods or services provided:

• Water & Sewer Fund • Aquatic Center Fund • Civic Center Fund • Harbor Fund

40 41 42 43 44 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

GENERAL FUND

45 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

46 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

GENERAL FUND BUDGET SUMMARY

47 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

48 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

General Fund Budget Summary

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Revenues

Taxes

Property Taxes 2,531,706 2,803,261 3,429,452 3,379,496 3,690,305

Sales Taxes 2,524,318 2,271,781 2,200,000 2,491,864 2,300,000

Franchise Taxes 339,642 354,360 340,700 350,847 348,250

Mix Beverage Taxes 16,883 16,620 15,500 17,571 15,500

Licenses and Permits 797,878 486,800 483,950 563,031 564,300

Intergovernmental 129,034 399,200 336,100 331,233 130,000 Special Assessments - - - - -

Charges for services 1,703,452 1,755,469 1,663,308 1,793,210 1,787,300 Rents and Royalties 52,303 50,084 29,669 53,959 328,000

Industrial Development Districts and PIL 198,768 64,711 210,748 305,840 305,840

Fines and Forfeitures 235,981 201,751 200,800 155,005 160,700

Interest Income 50,092 75,821 50,000 27,629 31,000 Drug Forfeiture 171,782 119,270 -

Donations 29,285 7,969 7,500 9,201 7,500

Other 11,435 12,121 77,527 86,567 78,200

Total Revenues 8,792,558 8,619,217 9,045,255 9,565,453 9,746,895

49 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 20182019 2020 Projected 2021 Actual Actual Budget Year End Budget

Expenditures

General Government 1,496,293 1,794,277 1,931,439 1,569,236 2,206,931

Public Safety 4,375,535 4,309,772 4,565,835 4,509,061 4,886,743

Public Works 1,228,062 1,591,234 1,520,536 1,442,258 1,740,175

Sanitation, health, and Welfare 1,195,201 1,243,161 1,276,930 1,296,547 1,300,294

Culture and Recreation 501,721 479,828 550,538 468,657 594,335

Capital Outlay 137,143 550,584 296,254 134,181 152,600

Hurricane Recovery 6,788,766 - - 13,041 - Total Expenditures 15,722,721 9,968,855 10,141,532 9,432,981 10,881,078

Revenues Over/(Under) (6,930,163) (1,349,638) (1,096,278) 132,472 (1,134,183) Expenditures

Other Financing Sources

Transfers In 736,861 667,043 1,132,000 1,044,088 1,107,050

Transfers Out (274,640) (25,000) (36,000) (859,346) -

Insurance Proceeds 2,171,193 1,200,256

Grants Proceeds 5,283,184 308,166 26,000 6,000 -

Community Disaster Loan - - - - -

Bond Proceeds 415,000 Total Other Financing Sources 8,331,598 950,209 1,122,000 1,390,998 1,107,050

Net change in fund balance 1,401,435 (399,429) 25,722 1,523,470 (27,133)

Fund Balance

Beginning Fund balance 1,459,335 2,860,770 2,714,420 2,714,420 4,237,890

Prior Period Adjustment 253,079

Net Increase/(Decrease) 1,401,435 (399,429) 25,722 1,523,470 (27,133)

Ending Fund balance 2,860,770 2,714,420 2,740,142 4,237,890 4,210,757

50 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

The General Fund I the general operating fund and the largest fund of the City. It includes governmental services such as Police, Fire, Parks and Recreation, and Streets. In addition, City Council, City Secretary, IT, Finance, Developmental Services ate a part of the General Fund. These services are funded primarily by property tax and sales tax. For accounting and financial reporting purposes, this is considered a governmental fund that uses the modified accrual basis of accounting.

The FY 2021 budget for the General Fund includes $10.8 million in revenues and expenses resulting in a decrease in fund balance of $27K.

51 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

52 CITY OF ARANSAS PASS, TEXAS FY 2020-2019 ANNUAL BUDGET

GENERAL FUND REVENUES

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54 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

General Fund Revenues

FY 2021 budgeted revenue totals $10,853,945 which is 6.38% higher than FY 2020 budgeted revenues. The increase is due primarily to increase in property taxes.

Property tax and sales tax are the largest revenue categories, accounting for 55.19% of the total revenues

Fines and Forfeitures 2% Industrial Development Transfers In Districts and PILOT 10% 3% Property Taxes 34%

Charges for services 17%

Intergovernmental Sales Taxes 1% 21% Licenses and Permits Other 5% 4% Franchise Taxes 3%

55 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Property Tax

The City’s largest revenue source, property tax, is expected to increase 7.61% to $3,690,305 in FY 2021. Due to increase in appraised values and annexation. The property tax revenue assumes a 97% collection rate of the 2020 certified tax roll. This collection rate is consistent with our historical average.

Fiscal Year M&O I&S Tax Rate 2021 0.484280 0.314914 0.799194 2020 0.487422 0.311772 0.799194 2019 0.488984 0.286212 0.775196 2018 0.415614 0.273041 0.688655 2017 0.347433 0.341222 0.688655 2016 0.343648 0.336706 0.680354 Sales Tax

The graph below shows the volatility of the City’s second largest revenue source, sales tax. Sales tax is expected to generate $2,300,000 in FY 2021. The local economy is strong and new retail is on track to open in Aransas Pass.

Sales Tax Revenue - % Change

$3.00 30.00% 25.00% $2.50 Millions 20.00% $2.00 15.00% 10.00% $1.50 5.00% Axis Title $1.00 0.00% -5.00% $0.50 -10.00% $0.00 -15.00% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Axis Title

Total Revenue % Changed Expon. (Total Revenue)

56 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

GENERAL FUND REVENUES BY LINE ITEM

57 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

58 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Account Actual Actual Budget Year End Budget

Property Tax Property Tax - Current / M&O 2,696,571 2,437,481 3,355,151 3,254,496 3,613,404 Property Tax - Delinquent / 52,126 M&O 53,721 46,901 60,000 46,901 Property Tax - Misc. Income / 3,065 M & O 4,744 2,400 15,000 5,000 Property Tax - Penalties & 51,499 Interest / M & O 35,760 25,000 50,000 25,000 Tot a l Pr ope r t y Ta x 2,531,706 2,803,261 3,429,452 3,379,496 3,690,305

Sales Tax Sales Tax 2,271,781 2,524,318 2,200,000 2,491,864 2,300,000 Total Sales Tax 2,524,318 2,271,781 2,200,000 2,491,864 2,300,000

Franchise Tax Franchise Tax - Cable TV 62,824 56,847 52,000 51,920 52,000 Franchise Tax - Electricity 272,431 262,637 269,000 282,648 280,000 Franchise Tax - Natural Gas 13,527 13,982 13,700 13,645 13,650 Franchise Tax - Taxicab 5 - - - - - Franchise Tax - Telephone 5,573 6,176 6,000 2,634 2,600 Total Franchise Tax 339,642 354,360 340,700 350,847 348,250

Mix Beverage Tax Mixed Beverage Tax 16,620 16,883 15,500 17,571 15,500 Total Mix Beverage 16,883 16,620 15,500 17,571 15,500 Ta x

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History Current Adopted 2020 2018 2019 2020 Projected 2021 Account Actual Actual Budget Year End Budget

Licenses and Permits Fee - EMS 107,428 104,409 107,000 111,423 110,000 Permits - Alarms 13,976 20,112 11,000 15,500 14,000 License - Animal 955 706 500 1,500 750 Animal - Adoption Fees 1,200 851 750 1,000 750 Animal - Impound Fees 5,066 7,535 4,000 2,500 2,200 Fee - Fire Safety 69,216 68,005 69,000 70,458 70,000 Permit - Building 134,388 351,050 126,000 200,000 200,000 Permit - Electric 29,967 38,653 27,000 45,000 50,000 Permit - Plumbing 22,375 20,215 16,000 45,000 50,000 Permit - Foundation 951 595 500 450 500 Permit - Misc. 94,118 182,696 110,000 45,000 50,000 License - Golf Cart 2,310 1,800 2,100 2,000 2,100 Reinspection Fee 4,850 1,250 4,000 5,500 4,000 Boards of Commission ------Platting Fee - - - 600 6,000 5,000 Rezoning Fee - - - 5,500 8,500 3,000 Conditional Use Permit - - - - 1,400 1,000 Rezoning Board of Adjusters - - - - 1,800 1,000 Total License and 797,878 486,800 483,950 563,031 564,300 Permits

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History Current Adopted 2020 2018 2019 2020 Projected 2021 Account Actual Actual Budget Year End Budget Intergovernmental

Mutual Aid - Fire Protection 25,552 26,338 25,000 27,495 25,000 Beverage License - - - 2,100 - - Fee - Drainage 105,435 102,696 104,000 109,054 105,000 Income - San Patricio Drainage 268,213 - - 205,000 194,684 - Tot a l 129,034 399,200 336,100 331,233 130,000 Intergovernmental

Charge for services

PD - DEA Overtime Reimbursem 34,465 36,442 30,000 30,000 30,000 Fee - Fire Inspection 3,175 1,650 2,500 2,000 2,000 Library - Book Sales 420 365 350 150 200 Library - Miscellaneous Income 64 114 100 80 100 Income - Brush Site / Citizen's C 13,603 18,686 16,000 13,400 15,000 Income - Garbage 1,703,742 1,646,195 1,614,358 1,747,580 1,740,000 Total Charge for 1,703,452 1,755,469 1,663,308 1,793,210 1,787,300 services

Rents & Royalties

Income - Lease payments 28,866 28,148 29,669 32,104 328,000 Receipts - Oil & Gas Royalties 21,218 24,154 - 21,855 - Total Rents & 52,303 50,084 29,669 53,959 328,000 Royalties

61 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Account Actual Actual Budget Year End Budget Industrial Development District

Industrial District Tax 64,711 198,768 210,748 305,840 305,840 Total Industrial 198,768 64,711 210,748 305,840 305,840 Development

Fines & Forfeitures

MC - Fines Levied 187,495 223,580 190,000 140,000 150,000 MC - Judgment Nisi 5,191 2,764 5,000 10,000 5,000 MC - Child Safety Seat 6,141 8,845 5,000 4,605 5,000 MC - Miscellaneous Income 2,025 - - - - - Library - Fines 898 792 800 400 700 Total Fines & 235,981 201,750 200,800 155,005 160,700 Forfeitures

Int erest Income

Interest Income 75,821 50,092 50,000 27,629 31,000 Total Interest 50,092 75,821 50,000 27,629 31,000 Income

Drug Forfeiture

Drug Forfeiture 171,782 119,270 - - - Tot a l Dr ug 171,782 119,270 - - - Forfeiture

Donations

General Fund Donation - 21,460 - - - Library - Donations 7,969 7,825 7,500 9,201 7,500 Total Donations 29,285 7,969 7,500 9,201 7,500

62 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Account Actual Actual Budget Year End Budget Other

Lot Mowing / Brush Lien 416 - 60 418 700 Income - Miscellaneous (152) - - - Miscellaneous Income - - - 40,000 55,149 44,000 PD - Miscellaneous Income 9,301 8,801 29,263 21,000 25,000 Animal - Donations 225 - - - - Fire - Miscellaneous Income 1,645 3,320 8,204 10,000 8,500 Total Other 11,435 12,121 77,527 86,567 78,200

Other Financing Sources Grant CCPD for Building Dept. - - - 20,000 - 10,000 Grant CCPD for Fire Dept. - 2,501 5,000 - 3,000 Grant CCPD for Polioce Dept. 667,043 734,360 1,107,000 1,044,088 1,094,050 Insurance Proceeds - 2,171,193 - 1,200,256 - Transfer In from Other Fund - - - 20,000 - - Grant Proceeds 308,166 5,283,184 6,000 6,000 - Bond Proceeds - 415,000 - - - Total Other 8,606,238 975,209 1,158,000 2,250,344 1,107,050 Financing Sources

Total Revenues 17,227,014 9,594,426 10,203,255 11,815,797 10,853,945

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64 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

GENERAL FUND EXPENDITURES

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General Fund Expenditures by Department

Police Department, Operations (City Council, City Manager, Contractual Obligations, Finance, and IT), Fire, and Public Works (Streets & Drainage, and Public Health) account for 79.34% of expenditures. Starting pay for all positions have been increased to $15 per hour.

Department Expenditures % Operations 1,895,496 17.42% Municipal Court 201,303 1.85% Police 3,760,377 34.56% Fire 1,307,948 12.02% Library 194,524 1.79% Garbage & Collection Station 1,274,877 11.72% Building/Code Enforcement 412,022 3.79% Planning 165,365 1.52% Public Works 1,669,167 15.34% ______Total Expenditures 10,881,079 100%

Police

Fire Municipal Court Library Garbage & Operations Collection Station

Public Works

Building/Code Planning Enforcement

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68 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

GENERAL FUND EXPENDITURES BY DEPARTMENT

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City Council

Budgeted Positions

Position Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Mayor 1 1 1 1 1 Mayor Pro-Tem 1 1 1 1 1 Council Member 3 3 3 3 3 City Secretary 1 1 1 1 1 Executive Assist 0 0 0 0 1 Department Total 6 6 6 6 7

DEPARTMENT DESCRIPTION/MISSION: The City Council is the elected governing body of the City of Aransas Pass. The City Council provides leadership and policy direction, and their responsibilities include: • City Governance: responsible for the care, oversight and direction of the City. • Policy Setting: responsible for determining the needs of the community and setting intermediate and long range policies. • Financial Planning: responsible for approving a balance budget with adequate reserves to ensure sustainability.

The City Secretary is directed to provide accurate and efficient record keeping and election services for the City Council, staff, and citizens of Aransas Pass. His/her responsibilities include: • Document Management: responsible for maintaining official records of the city, including Charter, Code of Ordinances, Resolutions, contracts, leases, studies, etc. • Recoding Secretary: responsible for preparing agendas, attending meetings, and preparing minutes for the City Council and Charter Review Committee.

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City Council

• Boards and Commissions: responsible for processing appointments to all City boards, providing board members training regarding open government, rules and procedures, and posting agendas for all meetings. • Elections: responsible for managing all City elections in accordance with state law. • Open Records request: responsible for processing all public information requests in accordance with state law.

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • One Code Inspector hired • Demolition Program (A total of 45 structures were demolished in FY 19-20) • Door/Building Access Security • Meters, Meter Boxes and Curb Stops

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Increase starting pay to $15.00 • Continue to fund the demolition program • Improve security at City Hall • Create new positions: - Full-Time Administrative Assistant for Fire Department - Part –Time Assistant for City Secretary - Full – Time Planning Tech for Planning Department - Hire a Marketing staff for Civic Center • Capital Outlay - 2 Dump Trucks for the Public Works Department - Rebuild clarifier in the Wastewater Treatment Plant - Rebuild Kayak Shelters - John Deere Tractor for the Parks and Recreation Department - Drain Digester at the Wastewater Treatment Plant • Continue with the ongoing CIP projects • Continue repairs from Harvey

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City Council History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

City Secretary - Salaries - Regular 55,279 61,486 56,666 59,970 77,827

Insurance - Health / Life / Dental - - 7,137 5,387 5,838

Insurance - Worker's Compensation - - 164 141 202

Insurance - Unemployment - - 180 159 198

Contribution - Social Security - - 4,849 4,543 5,954

Contribution - Retirement - - 6,320 5,948 6,266

Postage & Freight 321 6,498 500 250 500

Fees - Legal Notices 5,319 11,958 7,000 13,046 10,000

Fees - Training 2,191 - 6,423 3,111 2,000

Fees - Subscriptions, dues, notary 8,191 9,827 8,770 8,150 8,664

Prof. Serv. - Elections 20,475 21,156 21,000 - 42,000

Prof. Serv. - Ordinance Codification 3,033 2,781 2,000 5,000 3,000

Supplies - Office 148 2,760 - - -

Discretionary Reserve 15,460 25,141 3,050 2,000 3,050

Community Special Events 10,210 29,089 30,000 30,000 30,000

120,628 170,697 154,059 137,705 195,498

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City Manager

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget City Manager 1 1 1 1 1 HR and Asst. to CM 0 0 0 1 1 Department Total 1 1 1 2 2

DEPARTMENT DESCRIPTION/MISSION: The City Manager is responsible for the provision of leadership to all city employees and the efficient & effective management of all city departments.

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City Manager

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Improvements to CBH began • EOC Completed • $10 Million CDBG-DR grant received • New Water Tower Completed • Vast majority of FEMA projects either completed, underway or obligated • Drainage Study Completed • Construction on Harbor Master Building began • City’s first ladder truck received • City made many adaptations to COVID-19 crisis • Years, if not decades, of extremely high water loss is not corrected • City gets its first new street sweeper in years • City keeps it’s ‘4’ ISO Rating • City continues to keep it’s AA Credit Rating after a follow-up review by S&P. They are satisfied with what they see and the City is removed from a post-hurricane watch list

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Complete environmental work at Conn Brown Harbor • Complete EDA project at Conn Brown Harbor • Continue to strengthen budge and General Fund Balance • Complete utility rate study • Complete FEMA projects • Complete Harbor Master Building • Complete the majority of projects associated with the CDBG-DR grant • Strengthen floodwater drainage in the City • Continue with community clean-up, including demolitions • Adapt daily City government routine to COVID-19 developments • Work on improved pay for employees

75 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

City Manager History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Salaries - Regular 117,581 125,008 125,008 146,836 175,011

Insurance - Health / Life / Dental 14,378 4,422 5,838 7,798 11,676

Insurance - Worker's Compensation 266 310 343 294 473

Insurance - Unemployment 159 9 180 300 198

Contribution - Social Security 9,544 9,306 10,123 11,062 13,948

Contribution - Retirement 13,351 13,623 13,193 15,266 18,361

Allowance - Vehicle / Equipment 7,424 7,320 7,320 7,320 8,000

Utilities - T elephone 2,583 563 - - -

Postage & Freight 29 70 150 250 150

Fees - Training 3,511 2,104 3,500 1,148 2,500

Fees - Subscriptions, dues, notary 2,422 2,195 2,195 1,651 2,500

Supplies - Books 4,399 22 250 - 250

Discretionary Reserve - 520 1,000 40 1,000

175,648 165,473 169,100 191,965 234,067

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Information Technology

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget IT Director 1 1 1 1 1 Systems Administrator 1 1 1 1 1

Department Total 2 2 2 2 2

DEPARTMENT DESCRIPTION/MISSION: The Information Technology Department is responsible for the architecture, hardware, software, and networking of all city computers. The IT Department provides hardware, software, and training support to all city users. They are responsible for maintaining reliable and secure access to all city data and manage both internal and external communications for the city employees.

77 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Information Technology

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Hardware Refresh o About 80% complete on the Server/Workstation Hardware Refresh. All hardware has been ordered and most has either been deployed or is being provisioned. • Software Upgrades o Software updates are in progress but will be slow and methodical. IT Staffing challenges have set this project back somewhat. I estimate we are currently at 60%.

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Replace and Centralize Management of City WIFI • Train new IT Staff • Implement Door Security • Improve Council Live Broadcast • Improve City employee computer training options

78 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

IT History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 96,923 92, 890 108,139 104,103 107,495

Ov ertime - 2,002 - 241 2,000

Insurance - Health / Life / Dental 11,229 9,335 11,676 11,675 11,676

Insurance - Worker's Compensation 208 246 301 258 297

Insurance - Unemployment 324 27 360 290 198

Contribution - Social Security 7,823 7,734 8,874 8,451 8,774

Contribution - Retirement 11,171 10,539 11,565 11,125 11,550

Allowance - Vehicle / Mileage 5,500 6,812 7,440 6,720 6,720

Salaries - Longevity Pay 300 580 420 420 480

Utilities T elephone 6,708 4,835 - - -

Fees - Training 613 125 500 - 1,500

Fees - Subscriptions, dues, notary 452 - 500 100 800

Supplies - Office 540 21,284 2,000 - 250

Supplies - Equipment - - - - 5,000

Supplies - Hardware - - - - 27,450

Website 250 200 5,100 4,658 5,442

Software Licenses 10,980 27,847 7,567 15,688 18,580

Capital Outlay 4,571 17,084 14,570 1,782 8,800

Discretionary Reserve 257 63 300 70 500

Disaster Expense 202 - - 355 -

158,049 201,603 179,312 165,936 217,512

79 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Finance Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Finance Director 1 1 1 1 1 Staff Accountant 1 1 1 1 1 HR Tech/Payroll Accts Pay Clerk 1 1 1 1 1 HR Tech 1 0 0 0 0 Payroll/HR Tech 0 1 1 1 0

Department Total 4 4 4 4 3

DEPARTMENT DESCRIPTION/MISSION: Functional responsibilities of the Finance Department include accounting, budgeting, investments, cash and debt management, and financial reporting. Payroll, accounts receivable, accounts payable, and fixed assets are all part of the accounting function. Utility Billing and Meter Reader Divisions are also part of the Finance Department for supervision and control purposes.

80 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Finance

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Finance Staff has consistently improved reconciling accounts in a timely manner • Provide timely Financial Reports to Council • Audit completed by the March 31st Deadline • All Financial Reports are available on website • Successfully completed FEMA Projects

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Transition to a paperless environment • Provide more opportunities for Staff to attend training and increase their knowledge and capacity • Apply and Receive Texas Transparency Stars Program for Traditional Finances • Apply for Distinguished Budget Award

81 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Finance History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 152,137 168,992 183,304 157,293 164,158

Ov ertime 70 - - - -

Insurance - Health / Life / Dental 16,930 20,018 23,352 16,709 17,514

Insurance - Worker's Compensation 310 375 486 416 443

Insurance - Unemployment 648 35 720 439 297

Contribution - Social Security 11,702 12,863 14,537 11,936 13,087

Contribution - Retirement 15,390 16,986 18,945 16,367 17,227

Allowance - Vehicle / Equipment 5,548 6,979 6,720 6,720 6,720

Salaries - Longevity Pay - - - - 190

Utilities - T elephone 1,984 - - - -

Postage & Freight 3,465 2,078 1,680 1,400 2,500

Fees - Training 1,348 4,423 2,540 2,200 3,010

Fees - Subscriptions, dues, notary 1,370 793 1,211 1,654 4,201

Supplies - Books - - - - -

Supplies Office 4,426 83 - - -

Software Licenses 200 15,635 6,448 6,448 7,500

Capital Outlay - - - - -

Discretionary Reserve - - - - -

Disaster Expense - - - 1,067 -

215,528 249,261 259,943 222,648 236,846

82 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Emergency Management Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Emergency Management Coordinator 1 1 1 1 1

Department Total 1 1 1 1 1

DEPARTMENT DESCRIPTION/MISSION: Elite, professional policing through protection, service, and education for those whom have empowered and entrusted us with their safety, preservation of property, life and liberty; respectfully delivered with compassion, commitment, and the utmost of integrity.

83 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Emergency Management

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Added Shutters to Blue building • Made some purchases toward a Command Trailer • Hardened the Council Chambers into permanent EOC • Two more large portable pumps added • Drainage study completed • Steps taken towards overhaul of pump stations • Limited EOC has been activated nearly all of 2020. I am very pleased with how our team has responded and managed what seems to be a never ending “emergency”

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Outfitting and supplying EOC • Train and exercise in new EOC • Stockpiling supplies for Emergency Management • Outfit seized Motorhome as command/rehab

84 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Emergency Management History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 57,367 59,157 61,110 62,578 66,110 Salaries - Overtime 331 1,814 1,000 100 1,000

Insurance - Health / Life / Dental 132 71 - - 65

Insurance - Worker's Compensation 1,142 1,445 1,667 1,428 1,800

Insurance - Unemployment 162 9 180 144 99

Contribution - Social Security 4,169 4,183 4,833 3,871 5,220

Contribution - Retirement 6,650 6,246 6,299 6,373 6,872

Allowance - Vehicle / Equipment - 720 720 720 720

Salaries - Longevity Pay 230 290 350 350 410

Utilities - T elephone 660 - - - -

Fees - Training 563 - - - -

Equipment Serv./Maintenance 10,403 - - - -

Supplies - Office - 227 - - 1,000

Supplies - Emergency Management - 665 1,000 650 1,000

Capital Outlay 7,352 - 36,000 35,000 -

Contractual Obligations 4,457 7,508 8,000 2,965 7,960

Disaster Expense - - - 3,543 -

93,618 82,336 121,160 117,722 92,257

85 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Tax Texas has no state property tax. It is up to the local taxing units, which use tax revenues to provide local services including streets and roads, police and fire protection and many others, to levy a property tax.

A city adopt a tax on the value of land, improvements, and certain personal property. Such a tax is sometimes referred to as ad valorem tax, which is Latin for “according to value”. Of the approximately 1,200 incorporated cities in Texas, 1,066 levy a property tax for general revenue. A city may levy property tax in accordance with its budget.

86 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Tax History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Contractual Obligations 16,697 17,596 18,500 19,907 20,000

Professional Fees - Tax Appraisals/Coll. 66,889 80,528 75,918 83,559 76,284

83,586 98,124 94,418 103,466 96,284

87 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Contractual & Support This department is comprised of the City’s attorney and legal fees, EMS Services, Engineering, development abatements and incentives, annual audit cost, and contractual obligations.

Department Responsibilities: • The City Attorney provides legal advice and acts as the attorney for the City Council as well as all departments and boards of the City. The City Attorney helps these entities archive their missions in defensible, law-abiding, and socially acceptable manner. • EMS Services are provided by Tri County EMS to provide service to the citizens of Aransas Pass. • Development abatements are incentives promote growth and development in targeted areas of the City. We concentrate on revitalizing targeted sectors and alleviating challenges to development by providing incentives that meet the development and revitalization goals of the City of Aransas Pass.

88 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Contractual & Support History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - City Attorney 12,830 - - - -

Insurance - Worker's Compensation 36 - - - -

Insurance - Unemployment 81 - - - -

Contribution - Social Security 981 - - - -

Prof. Service - Audit 20,250 47,350 54,000 58,950 54,000

Prof. Service - Consulting - - 2,500 5,613 -

Contractual Obligations 73,755 64,000 63,654 45,560 79,062

Professional Fees - Attorney/Legal 79,688 228,000 305,000 100,000 463,550

Professional Fees - Engineering 4,275 - 20,000 22,600 25,000

Development Abatements/incentives 51,000 40,800 95,600 - 40,800

Prof. Service - EMS 142,739 147,739 172,739 172,739 177,057

Prof. Service - Other 6,577 - 6,071 6,071 6,071

392,212 527,889 719,564 411,533 845,540

89 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Facilities/Building Maintenance

This department is responsible for cleaning City Hall, Public Works, and Harbor facilities on a daily basis. The City has contracted with an outside company to do the cleaning.

90 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Facilities/Building Maintenance History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 10,123 18,074 23,566 23,778 -

Salaries - Overtime - 45 - - -

Insurance - Health / Life / Dental 3,728 3,897 5,838 6,659 -

Insurance - Worker's Compensation 526 153 750 643 -

Insurance - Unemployment 81 10 90 107 -

Contribution - Social Security 726 1,359 1,830 1,393 -

Contribution - Retirement 1,166 1,894 2,385 1,821 -

Allowance - Vehicle / Equipment - 180 - 360 -

Equipment Rental - 4,580 4,695 5,054 5,100

Utilities - T elephone 1,004 2,861 3,504 6,018 5,364

Supplies - Fuel - 422 350 570 530

Supplies - Office - 6,025 5,500 6,700 9,700

Insurance - Property & Casualty 4,994 5,477 5,400 14,638 14,638

Utilities - Water/Sewer/Garbage 4,217 2,658 2,700 2,900 2,848

Utilities - Electricity 12,058 14,082 11,000 10,932 11,289

Utilities - Natural Gas 886 459 600 957 1,100

Maintenance - Building 11,635 10,478 10,000 2,100 14,125

Maintenance - Building Equipment 1,804 1,203 1,070 3,700 3,705

Supplies - Janitorial 1,312 1,092 1,200 1,000 1,350

Disaster Expense 1,238 - - 40 - 55,498 74,949 80,478 89,370 69,749

91 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Municipal Court

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Municipal Court Judge 1 1 1 1 1 Municipal Court Clerk 1 2 2 2 2 Department Total 2 3 3 3 3

DEPARTMENT DESCRIPTION/MISSION: The purpose of Municipal Court is to insure fair and impartial administration of justice to all people with professionalism and effectiveness.

92 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Municipal Court

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Offer defendants additional payment options: payment drop box and online payments • Judge and staff attended webinars • Roofs almost complete • Added violations to the system for Fire Department and Animal Control • Increases in fines • Purchased two laptops for courtroom and two desks for staff • Updated city website

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Install flooring through the court area • Go Paperless • Continue adding violations to the system as needed • Replace technology items as needed • Apply for grant from payment kiosk

93 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Municipal Court History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Salaries - Regular 113,993 103,272 107,441 108,823 122,240

Ov ertime 33 - - - -

Insurance - Health / Life / Dental 8,126 14,416 12,093 12,418 11,741

Insurance - Worker's Compensation 245 240 280 240 318

Insurance - Unemployment 653 125 540 432 297

Contribution - Social Security 8,500 7,695 8,251 8,152 9,393

Contribution - Retirement 11,427 10,626 10,754 10,885 12,364

Salaries - Longevity Pay - - 420 420 540

Cash Over/Short (317) (19) - - -

Utilities T elephone 7,080 3,400 3,384 3,696 3,744

Fees - Bank Card Charges 4,356 4,875 4,400 4,980 4,800

Postage & Freight 948 1,557 1,500 1,000 1,500

Fees - Training 5,736 4,491 4,000 1,274 5,000

Fees - Subscriptions, dues, notary 353 10 216 497 235

Prof. Service - Physical Exams 250 - - - -

Prof. Service - Audit 5,000 4,500 - - -

Prof. Service - Court Attorney - 3,525 9,000 12,000 13,500

Equipment Service/maintenance 46 - 250 155 -

Supplies - Books 10 - 400 - 450

Supplies - Office 2,962 1,895 3,000 2,800 3,250

Software Licenses - 857 - - 8,300

Fees -Jury Duty 144 36 600 354 650

94 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Capital Outlay 180 - - - -

Insurance - Property & Casualty 4,867 1,189 1,200 1,397 1,397

Utilities - Water/Sewer/Garbage 237 278 280 313 324

Utilities - Natural Gas 886 459 600 957 960

Maintenance - Building 214 113 250 231 300

Maintenance - Building Equipment 119 - - - -

Disaster Expense 98 - - 514 -

176,146 163,538 168,859 171,538 201,303

95 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Administration

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Chief of Police 1 1 1 1 1 Assist. Chief of Police 1 1 1 1 1 Custodian 1 1 1 1 1 Executive Assistant 1 1 1 1 1 Records Manager 1 1 1 1 1 IT Manager 1 1 1 1 1 Department Total 6 6 6 6 6

DEPARTMENT DESCRIPTION/MISSION: Elite, professional policing through protection, service, and education for those whom have empowered and entrusted us with their safety, preservation of property, life and liberty; respectfully delivered with compassion, commitment, and the utmost of integrity.

96 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Administration

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Expanded Chat with Chief, a regular monthly event for the most part • Added SRO for schools and tightened school security board and participation • Remained a training leader in the Coastal Bend for law enforcement • Acquired a First Responder Retention Stipend • Began working on the establishment of a Coast Bend Police Chief’s Association

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Improve first responders salaries to be more competitive in the area (we rank 2nd lowest currently) • Major IT upgrades related to wireless connectivity and online reporting for the public • Achieve another layer of redundancy for phone system and internet for the PD and City • Acquire free cellular phone service through T-Mobile to help reduce our Verizon expense • Expand the TCO Symposium to make it even bigger and more far-reaching • Compete dispatch facility remodel • Complete Animal Control Facility remodel • Get MRAP vehicle complete and into use, start training with it as well • Sustain manpower coverage • Look toward instituting a regular marine patrol operation

97 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Admininstration History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Police Admin Salaries - Regular 303,040 348,703 328,786 322,867 331,261

Ov ertime 7,212 4,962 6,000 2,000 6,000

Insurance - Health / Life / Dental 30,008 27,504 29,190 34,160 35,028

Insurance - Worker's Compensation 3,536 4,801 5,427 4,648 5,566

Insurance - Unemployment 942 161 1,080 765 594

Contribution - Social Security 22,926 26,517 26,042 23,938 25,791

Contribution - Retirement 34,677 35,980 33,940 32,492 33,950

Allowance - Vehicle / Mileage - 2,760 3,600 2,880 3,600

Clothing 19,601 28,290 21,650 17,000 27,350

Salaries - Longevity Pay 1,630 1,630 2,035 2,035 2,275

Cash Over / Short (4) - - - -

Utilities T elephone 15,564 6,860 3,456 3,363 3,408

Postage & Freight 2,937 2,834 2,450 3,200 2,050

Fees - Training 62,654 58,251 50,239 43,600 48,000

Fees - Subscriptions, dues, notary 1,131 713 600 523 572

Prof. Serv. - Physical Exams 2,050 860 1,910 5,400 3,945

Prof. Ser. - Audit 8,000 - - - -

Maintenance - Communications 315 - - - 24,000

Equipment Service / Maintenance 255 2,203 1,364 1,848 29,722

Equipment Rental 3,458 5,921 6,468 6,483 4,740

Maintenance - Vehicle 56,580 59,784 55,000 55,000 78,286

Supplies - Fuel 55,016 60,698 54,946 46,600 51,123

Supplies - Office 22,798 22,032 20,369 20,000 20,033

98 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Supplies - Prisoner 2,298 2,151 2,050 1,800 5,123

Software Maintenance 16,782 31,763 60,000 45,000 63,405

Capital Outlay 52,380 159,068 229,007 186,000 40,000

E911 118,226 28,477 - - -

Discretionary Reserve 12,810 6,351 10,644 7,000 7,026

Contract Services - - - - 2,500

Prof. Fees - Sexual Assult Medical E 8,000 3,000 5,000 - -

Security - Shrimporee - - - - -

Disaster Expense 5,949 - - 7,786 -

870,769 932,274 961,251 876,388 855,397

99 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Investigation

Budgeted Positions

Positions Historical Current Adopted 2019 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Detective 2 2 2 2 2 Detective Sergeant 3 3 3 3 3 Detective Captain 1 1 1 1 1 Property & Evidence Tech. 1 1 1 1 1 Department Total 7 7 7 7 7

DEPARTMENT DESCRIPTION/MISSION: Elite, professional policing through protection, service, and education for those whom have empowered and entrusted us with their safety, preservation of property, life and liberty; respectfully delivered with compassion, commitment, and the utmost of integrity.

100 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Investigations

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Many training goals achieved including a new investigator course and a comprehensive investigations course that focused on homicide investigations • Obtained a new vehicle (Dodge Ram 4X4 1500 pickup truck) • Continued success in investigations related to serious misdemeanors and felonies

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • To maintain a high level of quality investigation services for the citizens of Aransas Pass • To meet our training goals that include interview and interrogation classes, as well as advanced crime scene classes • Pursue having an investigator trained in the forensic examination of computers and cellular phones • Acquire camera equipment capable of photo documenting the effects of luminal, and other low light situations and pursue advancing technology in the area of crime scene documentation, including a 3D printer, a drone, new crime scene lights, and cell bright for phone searches • To get new Detective trained and set up to be a successful criminal investigator. He will need courses in Interview and Interrogation, New Deceive (criminal investigator), specializing investigations training etc. • To maintain quality management of the evidence room and purchase much needed items, including a stainless steel table to process and package evidence on • To work with DEA TFOs and other State and Federal resources to combat the use and distribution of Illegal narcotics, which remain a constant source of criminal activity • To improve and maintain the Sex Offender registration program. To enforce compliance and arrest those who violate their state requirements. To provide a safe community for our children.

101 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Investigations History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Police Invest Salaries - Regular 339,551 351,314 361,676 371,161 385,123

Ov ertime 45,024 44,626 49,100 46,938 49,100

Insurance - Health / Life / Dental 35,991 40,614 40,866 40,450 40,866

Insurance - Worker's Compensation 6,876 8,553 9,818 8,409 10,442

Insurance - Unemployment 1,134 63 1,260 1,100 693

Contribution - Social Security 29,096 29,841 31,764 31,295 33,560

Contribution - Retirement 44,320 41,266 41,397 42,111 44,177

Allowance - Vehicle / Mileage - 720 720 720 720

Clothing - 420 - - -

Salaries - Longevity Pay 2,855 3,360 3,720 3,720 3,755

Utilities T elephone 2,640 - - - -

Disaster Expense - - - - -

507,487 520,777 540,322 545,904 568,437

102 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Patrol

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Patrol Officer 12 12 11 11 11 Patrol Captain 1 1 1 1 1 Patrol Sergeant 2 2 4 4 4 SRO 1 1 1 2 2 Code Enforcement Officer 1 1 1 1 1

Department Total 17 17 18 19 19

DEPARTMENT DESCRIPTION/MISSION: Elite, professional policing through protection, service, and education for those whom have empowered and entrusted us with their safety, preservation of property, life and liberty; respectfully delivered with compassion, commitment, and the utmost of integrity.

103 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Patrol

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • All patrol officers are now Marine Safety Enforcement Officer (MSEO) certified • Officers have started utilizing the police boat more. Officers are working towards training on the boat and being able to utilize the patrol boar instead of calling out the marine division • We have started utilizing the Department’s drone more for various incidents • We have implemented a patrol detective which has been a tremendous asset to the patrol division • Added a 2nd SRO position and obtained a vehicle for it, both funded by the Crime Board

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Continue with a patrol detective position • Complete regular, routine marine patrols • Try to obtain a grant for a more robust drone to assist with crime scene and vehicular crash scene preservation utilizing 3D mapping and digital documentation • Begin to transfer paper documents into digital documents officers can utilize in the field with officer’s tablets or department issued phones • Obtain needed useable property from the DLA (Formerly 1033 program)

104 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Patrol History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Police Patrol Salaries - Regular 695,104 705,879 882,031 865,181 969,000

Ov ertime 113,088 125,773 80,750 115,000 104,500

Insurance - Health / Life / Dental 86,312 83,926 110,922 97,080 110,922

Insurance - Worker's Compensation 15,819 20,464 24,656 21,117 27,567

Insurance - Unemployment 2,677 355 3,420 2,900 1,881

Contribution - Social Security 60,458 61,541 73,890 72,051 82,387

Contribution - Retirement 93,150 88,064 96,298 98,018 108,449

Allowance - Vehicle / Mileage - 840 - 180 -

Clothing - 4,732 - - -

Salaries - Longevity Pay 1,935 2,495 3,095 2,445 3,450

Utilities T elephone 1,860 - - - -

Disaster Expense - - - - -

1,070,403 1,094,069 1,275,061 1,273,972 1,408,155

105 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Communications

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget TCO Supervisor 1 1 1 1 1 TCO 5 6 6 6 8 Department Total 6 7 7 7 9

DEPARTMENT DESCRIPTION/MISSION: Elite, professional policing through protection, service, and education for those whom have empowered and entrusted us with their safety, preservation of property, life and liberty; respectfully delivered with compassion, commitment, and the utmost of integrity.

106 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Communications

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Hired and trained one additional dispatcher • Organized and held the first TCO Symposium for South Texas • 2-day event that had attendance close to 100 people each day • Received praise from review taken at the conference and at the 911 Advisory Board meeting at COG Feb 19th, 2020 • Took bids and chose a vendor for Dispatch remodel • Desk have been ordered, looking at late July/early August install • Maintained workforce with no turnover • Received high quality training for all members of dispatch • Implemented the Rapid SOS platform in assisting with locating 911 callers • Participated in news interviews promoting our Department and the product • Portable 911 system ordered and received • Portable radio system ordered and in the process of being built

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Facility Improvements • Complete the Dispatch remodel • Install air purification in HVAC system • Staffing • Hire and train an additional dispatcher which would give us double coverage 24/7 • More competitive pay • Better longevity, incentives, and benefits • Training • Organize and grow the 2nd Annual TCO Symposium (pending COVID) • De-escalation type training specifically for Dispatchers • Team Building

107 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Communications

• 911 Public Education • Develop presentations for school age children • Online campaign for older individuals

108 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Dispatch History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Police Dispatch Salaries - Regular 255,469 274,218 311,126 313,150 384,094

Ov ertime 12,667 16,921 27,000 19,780 27,000

Insurance - Health / Life / Dental 37,715 39,113 46,704 42,700 52,542

Insurance - Worker's Compensation 640 654 811 695 1,073

Insurance - Unemployment 1,134 63 1,440 1,150 891

Contribution - Social Security 19,834 21,330 23,932 24,423 31,675

Contribution - Retirement 30,919 30,153 31,190 33,299 41,695

Allowance - Vehicle /Equipment - 720 - 720 720

Clothing - - - - -

Salaries - Longevity Pay 840 1,140 1,715 1,715 2,240

Utilities T elephone 1,481 - - - -

Disaster Expense - - - - -

360,699 384,312 443,919 437,632 541,931

109 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Animal Control

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget ACO 2 2 2 2 2

Department Totals 2 2 2 2 2

DEPARTMENT DESCRIPTION/MISSION: Elite, professional policing through protection, service, and education for those whom have empowered and entrusted us with their safety, preservation of property, life and liberty; respectfully delivered with compassion, commitment, and the utmost of integrity.

110 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Animal Control

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Secured funding for much needed facility improvements • Began facility improvements

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Complete facility improvements • Increase number of adoption events (The current pandemic, with local, county and state orders, has severely impacted these events.) • Create a stand operating procedures manual

111 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Animal Control History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Salaries - Regular 42,982 64,690 60,008 61,634 66,560

Ov ertime 3,087 6,514 6,000 2,500 6,000

Insurance - Health / Life / Dental 8,934 11,641 11,676 11,587 11,676

Insurance - Worker's Compensation 1,475 1,938 2,376 2,035 2,612

Insurance - Unemployment 324 27 360 423 198

Contribution - Social Security 3,479 5,376 5,050 4,781 5,551

Contribution - Retirement 5,308 7,308 6,581 6,317 7,307

Allowance - Clothing 1,094 539 - - -

Salaries - Longevity Pay - - - - -

Utilities T elephone - - - - -

Postage & Freight 31 226 200 300 226

Fees - Training 75 136 - - -

Equipment Service/Maintenance 101 - - - -

Maitenance - Vehicle - - - - -

Supplies - Animals 1,016 4,282 500 400 910

Supplies - Chemicals 434 969 1,100 2,500 3,000

Supplies - Fuel 3,403 3,358 2,800 2,800 3,600

Supplies - Protective Clothing - - - - -

Supplies - Minor T ools 500 458 700 500 600

Supplies - Office 460 313 500 80 250

Capital Outlay - - 135,000 37,989 100,000

112 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Adoption Expense 2,312 1,079 3,200 2,500 3,200

Animal Disposal - - - - -

Utilitiy - Electricity 3,186 1,612 2,700 2,814 2,750

Maintenance - Building 1,477 1,910 2,500 400 2,575

Disaster Expense - - - - -

79,680 112,373 241,251 139,560 217,015

113 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Facilities Police department facilities accounts for the department’s building costs incurred. These costs include insurance, utilities, maintenance, and supplies.

114 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Police Department Facilities History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Insurance - Property & Casualty 46,843 42,395 43,824 47,348 47,348

Utilities - Water/Sewer/Garbage 6,402 4,869 5,183 4,240 5,171

Utilities - Electricity 12,578 9,773 8,079 8,400 7,995

Utilities - Natural Gas 1,394 853 1,007 1,058 1,234

Maintenance - Building 18,758 10,618 12,311 20,000 12,293

Maintenance - Building Equipment - 899 - - -

Supplies - Janitorial 3,653 2,998 2,793 2,500 3,144

Disaster Expense - - - - 89,628 72,404 73,197 83,546 77,184

115 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Fire Department

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Fire Chief 1 1 1 1 1 Asst. Fire Chief 1 1 1 1 1 Captain 3 3 3 3 3 Firefighter/EMT 6 6 6 6 6 Driver Operator 3 3 3 3 3 Admin Assistant F/T 0 0 0 0 1 Department Total 14 14 14 14 15

DEPARTMENT DESCRIPTION/MISSION: To provide the highest level of professional service to the public by protecting lives and property, while providing life safety community education.

116 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Fire Department

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Two certification pay increases • Increased social media presence which lead to TV interview that plan to feature one of our rescues called ‘Live Rescue’

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Obtain Staffing for Adequate Fire & emergency Response and Retention. Est Cost $195,000

o The Aransas Pass Fire Department has seen an increase of 38% in the amount of calls for service over the past year. Our calls for service outside of the city limits has also increased. With the newly annexed area we have more service district to protect.

o With the increase of firefighters this allow us to run multiple companies. This would also allow us to run two apparatuses to a call at the same time eliminating the delay caused by waiting for personnel. This would also allow the department to begin a squad unit, a new pickup truck that could run medical calls while leaving the engine in serviced and staffed to respond to other calls. The addition of the squad truck allows for less wear and tear on our larger more expensive apparatuses.

o The increase in personnel would allow us to send firefighters on a mutual aid call while still having firefighters remain at the station to cover the city.

117 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Fire Department

• Obtain a Fire Department Administrative Assistant. Est. Costs $20,000

o Maintains records for the state which is necessary for our state inspection from TCFP (fire) as well as TDHS (EMS).

o Answer the phones. o The assistant would help with setting inspection schedules. o The assistant would help with out of town training coordination for our department.

o Invoicing and budget tracking. • Purchase a building to house work out equipment. Est. costs $22,000

o Provide a place that all city employees can exercise. o Provides a climate controlled area for exercise. o Expands the room in the bays by moving out gym equipment.

118 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Fire Department History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Salaries - Regular 607,834 599,673 663,289 686,745 755,478

Ov ertime 60,845 79,770 69,896 100,000 95,885

Insurance - Health / Life / Dental 75,609 70,717 81,315 81,604 87,570

Insurance - Worker's Compensation 10,430 12,472 13,371 11,452 16,011

Insurance - Unemployment 2,410 176 2,520 2,100 1,485

Contribution - Social Security 49,397 50,735 54,742 58,455 65,836

Contribution - Retirement 77,065 70,827 71,633 79,807 86,663

Allowance - Vehicle/Equipment - 2,419 2,160 2,160 3,600

Allowance - Clothing 18,907 8,440 11,890 3,000 16,170

Salaries - Longevity Pay 4,285 4,585 5,240 4,885 5,640

Utilities T elephone 4,664 2,315 4,957 6,707 5,372

Postage & Freight 426 104 200 200 200

Fees - Training 16,872 18,327 14,558 4,500 21,050

Fees - Subscriptions, dues, notary 3,256 1,946 2,230 1,800 3,160

Prof. Service - Physical Exams 422 7,535 8,280 500 8,100

Prof. Service - Audit 1,800 - - - -

Prof. Service - Court Attorney 2,681 - - - -

Equipment Service/maintenance 10,168 1,123 8,375 4,600 10,717

Lawn Equipment/Maintenance 434 92 500 500 500

Maintenance Vehicle 22,222 17,653 18,530 11,000 29,055

Supplies - Books 881 3,477 3,950 2,000 4,200

Supplies - Fuel 10,789 11,876 11,000 9,500 11,000

119 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Supplies - Minor T ools 3,077 19,628 1,000 2,000 5,380

Supplies - Office 4,086 2,669 1,565 3,500 3,415

Supplies - Prevention 11,889 4,219 10,000 9,500 10,000

Supplies - EMS 3,056 925 4,860 3,200 5,070

Supplies - T raining - 859 2,000 2,000 1,000

Software Licenses - 3,300 9,627 4,000 8,835

Capital Outlay 49,068 58,416 66,684 65,410 8,800

Discretionary Reserve 3,300 1,441 2,925 2,150 3,125

Allocation for Volunteer Program - 1,697 2,000 - 3,000

Insurance W/C - Volunteers - - 750 - 750

Insurance - Property & Casualty 12,872 12,315 13,000 11,627 11,627

Utilities - Water/Sewer/Garbage 811 1,180 1,100 1,400 1,400

Utility - Electricity 9,350 8,457 7,800 8,200 8,000

Utilities - Natural Gas 886 459 660 957 1,000

Maintenance - Building 1,131 2,209 3,130 1,500 2,980

Maintenance - Building Equipment 607 143 - - 3,275

Supplies - Janitorial 2,639 2,330 2,600 1,200 2,600

Disaster Expense 6,774 - - 1,453 -

1,090,943 1,084,509 1,178,337 1,189,612 1,30 7,948

120 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Library

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Head Librarian 1 1 1 1 1 Assistant Librarian 2 2 2 2 2 Department Total 3 3 3 3 3

DEPARTMENT DESCRIPTION/MISSION: In striving for public service excellence, the Ed and Hazel Richmond Public Library is a welcoming community center whose staff, resources, programs, and services provide for the needs of our diverse community.

121 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Library

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Aided 1,517 patrons in our Reserve Librarian Program • Patrons using Overdrive – 2,137 • We had 25,041 people visit our Library • 6,132 Patrons took advantage of our public computers • 3,446 Patrons used our free Wi-Fi • We had approximately 14,589 items checked out • Library Team – 2nd Place in San Patricio County Adult Literacy Council Scrabble Tournament • Updated public library computers by adding 7 new workstations • Updated Wi-Fi system by upgrading existing access points and adding new access points • Updated library camera systems by adding two new cameras to cover parking lot and back part of library • Repaired roof • The library partnered with the ESC Region 2 to host HSE (High School Equivalency) classes in our library • The library partnered with the SPCALC to host ESL (English as a Second Language) classes in our library

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Replace outdated lights with new LED panels • Develop systems for virtual learning activates • Continue goal of improving and promoting existing library programs • Continue goal of ongoing promotion of community involvement through social media of library sponsored special events • Improve Library collections in all formats and for all age groups by staying abreast of current reading trends

122 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Library History Current Adpoted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Salaries - Regular 98,604 98,403 101,485 101,583 109,839

Ov ertime - 61 - - -

Insurance - Health / Life / Dental 11,447 11,310 12,093 11,743 11,741

Insurance - Worker's Compensation 243 295 337 289 364

Insurance - Unemployment 486 27 540 432 297

Contribution - Social Security 7,857 7,890 8,146 8,122 8,799

Contribution - Retirement 11,364 10,630 10,617 10,630 11,502

Allowance - Vehicle / Equipment 2,750 3,720 3,720 3,720 3,000

Salaries - Longevity Pay 690 950 1,280 1,280 1,460

Utilities - T elephone 4,554 1,992 4,500 2,025 2,050

Postage & Freight - - - - -

Fees - Subscriptions, dues, notary 672 1,385 3,500 2,160 3,500

Prof. Serv. - Physical Exams - - - - -

Prof. Serv. - Audit 750 - - - -

Supplies - Books 5,697 6,024 6,000 6,000 6,000

Supplies Office 1,235 706 1,300 800 1,150

Capital Outlay 23,592 8,592 6,400 6,100 -

Discretionary Reserve - - - - -

Insurance - Property & Casualty 11,245 11,539 12,000 11,371 11,371

Utilities - Water / Sewer / Garbage 3,149 4,143 4,600 1,786 3,600

Utilities - Electricity - 9,956 8,400 8,401 8,400

Utilities - Natural Gas 508 425 500 500 500

123 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adpoted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Maintenance - Building 5,911 6,049 6,200 4,500 10,200

Maintenance - Building Equipment 257 300 200 - 200

Supplies - Janitorial 464 372 400 200 550

To be paid by third party (overbid) 10,630 12,714 - - -

Disaster Expense 6,341 - - 145 -

208,446 197,482 192,219 181,787 194,524

124 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Citizens Collection Station The collection station provided a place for citizens of Aransas Pass to bring unwanted items and dispose of them. The collection station is available for those items not accepted in the normal trash receptacle or bulky items pick up at curbside.

125 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Citizen Collection Station History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Cash Over/Short 10 - - - -

Fee - Trash Disposal - 81,640 91,000 100,487 100,551

10 81,640 91,000 100,487 100,551

126 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Garbage To protect public health and safety, the city contracts with Absolute Waste to provide safe, efficient, and environmentally friendly solid waste services. Absolute Waste provides curbside services including collection of regular garbage, yard waste, and bulky items.

127 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Garbage Collection History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Fee - Trash Disposal 1,169,992 1,152, 190 1,160,020 1,180,442 1,174,326 1,169,992 1,152,190 1,160,020 1,180,442 1,174,326

128 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Building/Code Enforcement Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Building Official 1 1 1 1 1 Permit Tech. 1 1 1 1 1 Permit Clerk 1 1 1 1 1 Code Enforcement Officer* 0 0 1 1 1 Inspector 0 0 1 1 1

Department Total 3 3 5 5 5 *The second Code Enforcement Officer comes out of the Police Department Budget.

DEPARTMENT DESCRIPTION/MISSION: The Building Department’s mission is to ensure commercial building and residential homes constructed, altered, or maintained within the City of Aransas Pass’s jurisdiction meet the recognized standard for quality of life and building safety. In order to facilitate this responsibility we provide a full range of plan review and construction inspection services to support enforcement of the International Codes. The Code Enforcement Officer works with the building department to ensure the codes are being upheld for the safety and well-being of the community.

129 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Building/Code Enforcement

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Streamline Plan Review, Scheduling Inspections, and completing inspections in a timely manner • Continued to provide better customer service • Working with City Attorney and Staff on Annexation Project

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Recycling Center for AP Residents • Quarterly water way clean ups • Trash Receptacles on Steadman and Harbor Islands • Beautification and Educational signs along 361 between Aransas Pass and Port Aransas • Conn Brown Harbor clean up • Increased information for the Public and schools as part of the Cities Leave No Trace Program • Maintain the volume of work with regard to new residential builds and commercial builds by getting the word out that we are builder, developer, and business friendly. • Continue to provide personalized service • Building a closer relationship with homeowners and business owners to improve our City • Continue to build database for damage assessments (FEMA) for next disaster to allow assessments to be completed in a timely manner. • Continue Digitizing all plans past and present as well as having all files organized and available for review and use • Training for staff and continuing education • Hire an additional Inspector

130 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Building Department History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Salaries - Regular 128,660 130,670 221,794 170,958 197,870

Ov ertime - 3,149 12,000 600 -

Insurance - Health / Life / Dental 18,951 20,570 34,611 29,038 29,190

Insurance - Worker's Compensation 626 670 1,044 894 958

Insurance - Unemployment 595 96 1,080 800 495

Contribution - Social Security 7,098 9,239 18,011 12,387 15,323

Contribution - Retirement 14,041 13,861 23,620 17,280 20,170

Allowance - Vehicle / Equipment - 1,260 1,440 1,260 2,880

Allowance - Clothing - 253 440 300 606

Salaries - Longevity Pay - - 210 210 270

Cash Over / Short 669 - - - -

Utilities - T elephone 2,706 1,839 1,750 1,486 -

Utilities - Internet - - - - -

Fees - Bank Card Charges 949 4,197 3,000 4,655 5,000

Postage & Freight 360 1,328 1,000 800 1,000

Fees - Legal Notices 1,694 5,177 2,500 1,500 2,500

Fees - Training 8,081 10,022 12,240 9,000 13,000

Fees - Subscriptions, dues, notary 1,282 474 1,000 900 1,200

Prof. Serv. - Physical Exams 285 225 125 125 125

Prof. Serv. - Audit 100 - - - -

Prof. Serv. - Court Attorney - - - - -

131 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Demolition - 1,244 - - 80,000

Equipment Service - Maintenance 796 - - - -

Maintenance - Vehicle 3,847 4,700 3,000 3,000 3,000

Supplies - Books 1,233 1,478 1,200 1,000 1,500

Advertising - 39 250 - -

Supplies - Fuel 1,633 1,159 1,440 1,500 1,500

Supplies - Protective Clothing - - 250 245 375

Supplies - Minor Tools 228 1,446 1,000 1,310 1,500

Supplies Office 2,247 2,102 2,200 2,250 2,500

Fees - Trash Disposal - - - - -

Software Licenses - 8,097 4,396 4,300 4,400

Capital Outlay - 48,260 80,000 29,000 -

Insurance - Property & Casualty 2,211 1,833 2,200 1,700 1,659

Contractual Obligations 30,432 105,526 - 50,000 25,000

Disaster Expense 219 - - 700 -

228,943 378,912 431,802 347,198 412,022

132 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Planning

Budgeted Positions

Position Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget City Planner 1 1 1 1 1 Planning Tech 1 0 1 0 1 Department Total 0 1 2 1 2

DEPARTMENT DESCRIPTION/MISSION: The City of Aransas Pass Development Services Department is responsible for the enforcement of development regulations including zoning, land subdivisions, and floodplain management. The primary purpose of this department is to assist developers in building safe, sustainable homes and businesses for our community. The Planning & Zoning Commission and Zoning Board of Adjustment are managed through this department.

133 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Planning

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Comprehensive Plan complete

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Update, organize, and codify the zoning ordinance • Streamline development

134 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Planning Department History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 75,769 59,500 56,659 64,404 103,293

Ov ertime 29 177 - - -

Insurance - Health / Life / Dental 3,842 4,711 65 5,551 11,676

Insurance - Worker's Compensation 180 185 149 127 270

Insurance - Unemployment 209 117 180 153 198

Contribution - Social Security 4,146 4,101 4,390 4,768 7,957

Contribution - Retirement 6,432 5,741 5,721 6,129 10,401

Allowance - Vehicle / Mileage - 540 720 - 720

Utilities T elephone 660 - - - -

Fees - Legal Notice 229 5,519 12,000 3,000 6,000

Fees - Training 1,380 1,389 4,500 1,000 2,500

Fees - Subscriptions, dues, notary - 316 650 - 650

Supplies - Office - - - - 1,700

Capital Outlay - - - - -

Contractual Obligations - 20,000 20,000 20,000 20,000

Disaster Expense - - - 175 -

92,876 102,294 105,034 105,307 165,365

135 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Streets & Drainage

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Field Tech I 6 6 6 6 6 Field Tech II 0 0 0 0 0 Field Tech III 1 1 1 1 1 Maintenance Superintendent 1 1 1 1 1 Project Manager 1 1 1 1 1 Management Assistant 1 1 1 1 1 PW Superintendent 1 1 1 1 1

Department Total 11 11 11 11 11

DEPARTMENT DESCRIPTION/MISSION: The mission of the Aransas Pass Public Works Department is to effectively maintain and develop public infrastructure and facilities, and to provide services to the public to achieve common social, economic, and environmental desires

136 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Streets & Drainage

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • City Infrastructure Improvements o Crews paved 9 roads this fiscal year in house. o Treated 2 miles of roadway with a pavement rejuvenation process. o City purchased a street sweeper and staff now maintains curb and gutter.

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • CDBG-BR Project o To begin replacement of falling storm pope through 13 different grant funded projects. • Street Improvements o 15 areas of town will be paved through the CDBG-DR project once the infrastructure repairs are completed.

137 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Streets & Drainage History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Salaries - Regular 314,778 387,424 401,690 348,745 457,826

Ov ertime 5,271 3,722 18,000 3,500 6,000

Insurance - Health / Life / Dental 40,929 51,537 57,963 47,000 58,380

Insurance - Worker's Compensation 7,197 8,557 8,400 7,194 9,414

Insurance - Unemployment 1,503 307 1,980 1,500 1,089

Contribution - Social Security 24,348 28,441 32,482 25,133 35,877

Contribution - Retirement 36,874 40,558 41,156 34,445 47,072

Allowance - Vehicle/Equipment - 2,820 2,880 2,160 2,880

Allowance - Clothing 5,343 5,668 4,930 5,000 4,960

Salaries - Longevity Pay 1,635 2,140 2,030 1,700 2,275

Equipment Rental 21,663 14,105 18,360 12,000 11,360

Utilities T elephone 11,717 9,351 15,500 10,172 12,500

Utilities - Street lighting 31,906 73 20,000 16,772 17,000

Postage & Freight 24 68 75 400 75

Fees - Training 10,002 12,522 11,000 5,250 11,300

Prof. Service - Physical Exams 1,475 1,831 500 1,100 875

Prof. Service - Audit 1,500 - - - -

Maintenance - Brush Site 9,172 9,729 15,020 5,000 15,020

Maintenance - Drainage 24,847 174,564 25,000 23,000 18,000

Maintenance - Communications 8,349 5,299 7,000 6,000 6,000

Equipment Service/Maintenance 26,969 30,675 30,000 26,000 30,000

Maintenance Vehicle 6,771 9,930 15,000 15,000 10,000

Supplies - Signs & Post 17,897 18,563 12,000 10,500 11,500

138 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Supplies - Asphalt & Caliche 24,647 40,415 35,000 33,000 32,000

Supplies - Chemicals 2,599 2,167 3,000 4,000 3,000

Supplies - Fuel 38,645 36,790 29,160 20,000 23,000

Supplies - Protective Clothing 5,000 5,264 5,000 5,000 5,000

Supplies - Minor T ools 6,298 10,974 12,000 8,500 8,000

Supplies - Office 2,786 2,950 2,500 2,200 2,250

Capital Outlay - - - 402,470 -

Insurance - Property & Casualty 6,070 10,235 10,400 4,693 4,693 Utilities - Water/Sewer/Garbage - - - - -

Utilities - Electricity 95,199 80,017 86,000 89,000 90,000

Maintenance - Building 5,025 7,883 8,000 6,000 7,000

Maintenance - Building Equipment 10,115 7,975 8,000 7,500 7,500

Supplies - Janitorial 388 698 750 500 750

Contractual Obligations - 87,390 60,060 170,867 153,925

Street Construction 17,833 5,994 - - -

Disaster Expense 1,002,943 - - 4,837 -

1,827,718 1,000,836 963,306 1,366,139 1,106,521

139 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Public Health This department accounts for the cost of vector control within the City. This includes the cost of fuel and the necessary tools to decrease the mosquito population in the City. Vector control sprays public property for mosquitoes to protect the residents and visitors to Aransas Pass. Staff uses source reduction techniques and pesticides as necessary to control mosquitoes on public property.

140 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Public Health History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 3,565 - - - -

Ov ertime 121 - 8,000 3,500 8,000

Insurance - Health / Life / Dental 34 - - - -

Insurance - Unemployment - - - - -

Contribution - Social Security 276 - 612 268 612

Contribution - Retirement 419 - 798 350 806

Allowance - Clothing - - - - -

Fees - Training 154 480 500 200 250

Supplies - Fuel 893 654 2,500 1,500 2,000

Supplies - Minor T ools 23 - - - -

Capital Outlay - 10,725 - - -

Mosquito Spraying 18,812 2,381 14,000 10,000 14,000

Lot & Brush Clean Up 1,100 - - - -

Disaster Expense 1,339 - - - -

26,736 14,240 26,410 15,818 25,668

141 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Parks & Recreation

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Grounds Tech I 6 6 6 6 6 Grounds Tech III 1 1 1 1 1 Field Tech I 0 0 0 0 0 Custodian 1 1 1 1 0 Project Manager 0 0 0 0 0

Department Total 8 8 8 8 7

DEPARTMENT DESCRIPTION/MISSION: The mission of the Aransas Pass Public Works Department is to effectively maintain and develop public infrastructure and facilities, and to provide services to the public to achieve common social, economic, and environmental desires.

142 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Parks & Recreation

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Completed the Dog Park with new agility course, shade structures, water line, benches and trash receptacles • Repaired the road at Lighthouse Lakes • Lighthouse Lakes bird watching gazebos are being rebuilt and will be completed by end of August 2020

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Newbury Park o Put in new park sign, new landscaping, purchase new picnic table and benches. o If Council approves, install new playground equipment.

143 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Parks & Recreation History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 160,256 148,004 184,298 152,575 230,859

Ov ertime 3,643 5,036 16,000 5,217 7,000

Insurance - Health / Life / Dental 34,299 29,635 43,785 25,945 40,866

Insurance - Worker's Compensation 3,317 3,960 4,977 4,263 5,792

Insurance - Unemployment 1,469 163 1,350 1,100 693

Contribution - Social Security 12,308 11,395 15,395 11,639 18,273

Contribution - Retirement 18,988 15,828 20,064 15,392 24,054

Allowance - Vehicle/Equipment 1,073 780 720 720 720

Allowance - Clothing 1,971 2,775 4,380 3,523 4,080

Salaries - Longevity Pay - - 225 225 285

Utilities T elephone 1,037 - - - -

Fees - Training 910 1,541 3,300 1,100 1,500

Prof. Service - Physical Exams 690 818 500 1,000 750

Equipment Service/Maintenance 8,848 13,373 15,000 16,000 13,000

Maintenance Vehicle 3,256 6,061 5,000 5,000 5,000

Supplies - Chemicals 39 514 500 300 500

Supplies - Fuel 13,095 11,284 11,000 8,500 8,500

Supplies - Protective Clothing 1,032 1,313 1,875 2,050 1,875

Supplies - Minor T ools 3,922 4,471 3,500 3,000 3,500

Supplies - Office 294 434 250 200 250

Capital Outlay - - - - 35,000

Utility - Electricity 13,300 8,879 12,000 12,386 16,000

144 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Maintenance - Building 1,959 2,704 2,000 3,595 2,814

Maintenance - Trees& Shrubs/Landsc 21,327 9,312 10,000 9,000 9,500

Maintenance - Playing Fields 4,188 2,888 6,500 5,600 6,500

Supplies - Janitorial 2,601 2,218 2,500 1,800 2,500

Disaster Expense 8,257 - - 3,900 -

322,081 283,384 365,119 294,030 439,811

145 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Facilities/Building Maintenance

This department accounts for the cost of maintenance of all Public Works facilities.

146 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Public Works Facilities History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular - - - - -

Salaries - Overtime - - - - -

Insurance - Health / Life / Dental 1,872 - - - -

Insurance - Unemployment - - - - -

Contribution - Social Security (89) - - - -

Contribution - Retirement (140) - - - -

Utilities - T elephone 1,272 231 - - -

Capital Outlay - - - - -

Insurance - Property & Casualty 40,154 31,039 35,000 39,166 39,166

Utilities - Water/Sewer/Garbage 17,518 32,846 26,000 19,916 22,000

Utilities - Electricity 44,001 25,187 35,000 13,064 20,000

Maintenance - Building 4,823 3,550 3,000 2,500 3,000

Maintenance - Building Equipment 20,019 15,288 10,500 10,000 12,000

Supplies - Janitorial 1,530 976 1,000 1,100 1,000 Disaster Expense 448 - - - -

131,408 109,118 110,500 85,746 97,166

147 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

148 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

DEBT SERVICE FUND

149 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

150 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Overview

The City uses a separate fund called Debt Service Fund in order to budget for annual principal and interest payments on outstanding debt. The General Debt Service Fund uses the modified accrual accounting method, like the General Fund. The Water Debt Service is combined with the Water & Sewer Funds for annual financial reporting and uses the full accrual method of accounting, like other enterprise funds.

The City has an AA- rating from Standard & Poor’s rating service for its general obligation debt. This rating indicates a high credit quality and investment grade status.

Debt Limits

There are no dollar amount limits for tax supported debt under state law or the City’s home rule charter. However, there are property tax limits that impact the amount of debt a city can issue. The Texas Constitution limits property tax for a home rule city of over 5,000 in population to not more $2.50 per $100 of assessed value. Aransas Pass’ $0.799194 total tax rate is well below the $2.50 constitutional limit.

The Texas Attorney General’s Administrative Code limits the debt service portion of the levy to no more than $1.50 per $100 of assessed value. The City’s debt rate for FY2021 is $0.314914 or 39.40% of the total $0.799194 tax rate and much less than the $1.50 Administrative Code limit.

Debt for the Water & Sewer Fund is $363,391 for FY 2021. Actual debt service in FY2021 is 9.3% of revenue at $3.9 million.

Debt Changes

No new debt was issued in FY 2020. The City does not anticipates issuing debt in FY 2021.

151 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

General Fund Debt Schedule

CO CO CO CO CO Refunding Tax Note Tax Note Total Series Series Series Series Series Series 2018 2019 Payment 2005 2012 2014 2015 2016 2016 2021 76,620 262,556 599,407 238,694 187,450 490,287 66,972 259,502 2,181,488 2022 477,420 79,347 189,000 491,055 65,478 263,591 1,565,891 2023 478,930 77,929 190,400 485,489 63,984 262,488 1,559,220 2024 366,553 81,512 191,650 488,509 131,619 261,255 1,521,098 2025 335,465 197,750 489,981 259,895 1,283,091 2026 339,940 193,550 485,029 263,347 1,281,866 2027 334,103 194,350 488,616 1,017,069 2028 339,915 195,000 534,915 2029 340,290 195,500 535,790 2030 340,315 195,850 536,165 2031 339,990 191,050 531,040 2032 339,160 191,250 530,410 2033 337,820 191,300 529,120 2034 341,030 191,200 532,230 2035 190,950 190,950 2036 190,550 190,550

152 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

General Fund Debt Service Fund 2,500,000

2,000,000

1,500,000

1,000,000

500,000

- 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

CO Series 2005 CO Series 2012 CO Series 2014 CO Series 2015 CO Series 2016 Refudnding Series 2016 Tax Note 2018 Tax Note 2019

153 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Debt Service Fund History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues:

Property Tax - Current/I&S 1,591,846 1,566,808 1,577,727 1,899,000 1,913,489

Property Tax - Delinquent/I&S 55,858 42,202 38,442 43,000 26,000

Property Tax - Principal & Interest/I& 28,221 38,698 32,765 48,000 20,000

Interest Income 5,914 100 103 60 -

Transfers In From Other Funds - 228,276 - - -

Bond Proceeds - - - - -

Total Revenues 1,681,839 1,876,084 1,649,037 1,990,060 1,959,489

Expenditures:

Bond Principal Expense 1,307,313 1,315,000 1,335,000 1,335,000 1,764,437

Bond Interest Expense 373,926 353,452 378,063 378,063 417,051

Bond Issuance Cost - - - - -

Agent Fee 600 1,100 - 1,000 2,400

Total Expenditures 1,681,839 1,669,552 1,713,063 1,714,063 2,183,888

Net Change in Fund Balance - 206,532 (64,026) 275,997 (224,399)

Fund Balance Beginning of Year - - 206,532 206,532 482,529

Fund Balance End of Year - 206,532 142,506 482,529 258,130

154 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

WATER & WASTEWATER FUND

155 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

156 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

WATER & WASTEWATER FUND BUDGET SUMMARY

157 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

158 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water/Wastewater History Current Adopted Financial Summary 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Operating Revenues

Charges for Services 4,114,479 4,236,513 4,073,743 4,474,339 4,229,000

Operating Expenses

General Accounts - - 314,116 - 641,487

Administration 156,856 173,955 140,091 130,314 136,813

Utility Billing 228,609 220,172 204,686 211,143 229,075

Meter Readers 200,822 217,280 326,538 284,085 309,528

Water Production 2,011,962 1,582,217 1,866,114 1,523,572 1,484,107

Water Distribution 461,960 318,192 554,186 346,261 384,886

Sewer Collection 301,471 269,850 369,337 300,315 377,723

Sewer Plant 416,798 310,959 423,210 322,486 378,636

Depreciation & amortization 588,976 589,575 - 590,000

Total Operating Expenses 4,367,455 3,682,200 4,198,279 3,708,176 3,942,256

Operating Income (Loss) (252,976) 554,313 (124,536) 766,163 286,744

159 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Non-Operating Revenues (Expenses)

Loss on inventory conversion - - - -

Interest income 8,200 8,611 8,400 5,500 5,500

Interest expense and agent fees (255,144) (216,492) (193,004) (193,004) (89,028)

Total non-operating revenue (expenses) (246,944) (207,881) (184,604) (187,504) (83,528)

Income (Loss) before contributionsand transfer (499,920) 346,432 (309,140) 578,659 203,216

Transfer In 166,600

Transfer Out (228,276) (635,000) (61,000) (116,069)

Change In Net Position (499,920) 284,756 (944,140) 517,659 87,147

Total Net Position-Beginning 6,329,580 5,829,660 5,796,661 5,796,661 6,314,321

Prior Period Adjustment (317,755)

Total Net Position-Ending 5,829,660 5,796,661 4,852,522 6,314,321 6,401,468

160 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

The Water & Wastewater Fund accounts for the provision of water and sewer services to the residents of the City. All activities necessary to provide these services are accounted for in this fund including Water Production, Water Distribution, Wastewater Collection and Treatment, Meter Reading, and Utility Billing. For accounting and financial reporting purposes, the Water & Sewer Fund is considered an enterprise fund that uses the full accrual basis of accounting.

The FY 2021 budget for the Water & Sewer Fund includes $4.2 million in revenues and $4.1 million in expenditures, resulting in a surplus that will increase the fund balance by $87K.

161 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

162 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

WATER & WASTEWATER REVENUES

163 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

164 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water & Wastewater Fund Revenue

FY 2021 budgeted revenues total $4.2 million. Water and sewer sales account for 63.8% and 28.3% of the revenues respectively.

Revenue Type Revenue % Tap Fee 71,000 1.7% Sales-Water 2,700,000 63.8% Sales-Sewer 1,200,000 28.3% Sales - Bulk Sewer 115,000 2.7% Sales-Miscellaneous 15,000 0.4% Fees-Customer Penalties / Disconnect Fees 110,000 2.6% Interest Income 5,500 0.1% Income - Miscellaneous 18,000 0.4% 4,234,500 100.0%

165 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Utility Rates The base bill for a water customer living inside city limits is $62.00 and outside city limits is $51.31. The customer outside city limits does not have sewer services that is why their base bill is lower.

Services for Residential Citizen Services for Senior New City Ordinance Chapter 29 Utilities Article II – Water & Sewer Services for Commercial Citizen Citizen Commercial Inside City Limits Deposits Service Section 29-20(d-d3) ¾” Meter Residents 65 and older, registered with the A sum equal to one month average bill. Residential Inside City Limits Deposits Minimum $150.00 City Water Department, showing proof of ¾” Meter age and inside city limit residency shall pay Water $75.00 Commercial Inside City Limits Sewer $75.00 Minimum Monthly Fees the following rates: Total $150.00 Meter size Water Waste Water Total *Larger meter size subject to an increase. ¾” $16.08 $13.31 $29.39 1” $27.70 $22.98 $50.68 Inside City Limits Minimum Monthly Fees 1.5 “ $47.07 $39.10 $86.17 Senior Citizens Inside City Limits Deposits Meter size Water Waste Water Total 2” $70.31 $58.44 $128.75 ¾” Meter ¾” $15.08 $13.31 $28.39 3” $124.54 $103.51 $228.05 Water $75.00 1” $26.70 $22.98 4” $202.00 $168.05 $370.05 Sewer $75.00 $49.68 6” $395.67 $329.33 $725.00 Total $150.00 1.5 “ $46.07 $39.10 *Larger meter size subject to an increase. $85.17 Inside City Limits Water consumption charge per 1000 gallons 2” $69.31 $58.44 # of Gallons Res/Com Inside City Limits Minimum Monthly Fees $127.75 1 to 5,000 $4.75 Meter size Water Waste Water Total 5,001 – 10,000 $5.72 ¾” $12.02 $12.38 $24.40 Over 10,000 $6.36 1” $22.48 $21.08 $43.56 Inside City Limits Water consumption charge per 1000 1.5” $39.91 $35.59 $75.50 gallons Inside City Limits Sewer consumption charge per 1000 gallons 2” $60.83 $53.00 $113.83 # of Gallons # of Gallons Res/Com Res/Com 1 to 5,000 $2.34 Inside City Limits Water consumption charge per 1000 1 to 5,000 5,001 – 10,000 $3.05 gallons $4.75 Over 10,000 $ 4.17 # of Gallons Res/Com 5,001 – 10,000 $5.72 1 to 5,000 $4.75 Over 10,000 Commercial Outside City Limits Deposits 5,001 – 10,000 $5.72 $6.36 *Add 25% Over 10,000 $6.36 Inside City Limits Sewer consumption charge per 1000 gallons Commercial Outside City Limits Inside City Limits Sewer consumption charge per 1000 # of Gallons Res/Com Minimum Monthly Fees gallons 1 to 5,000 $2.34 Meter size Water Waste Water Total # of Gallons Res/Com 5,001 – 10,000 $3.05 ¾” $18.73 $15.31 $ 34.04 1 to 5,000 $2.34 Over 10,000 $4.17 1” $33.25 $24.98 $ 58.28 5,001 – 10,000 $3.05 1.5” $57.46 $41.10 $ 98.56 Over 10,000 $4.17 Residential Outside City Limits Deposits 2 ” $86.51 $60.44 $ 46.95 Meter Deposit Total $150.00 3” $154.30 $105.51 $ 59.81 *Larger meter size subject to an increase. 4” $251.13 $170.05 $ 21.18 6” $493.22 $331.23 $824.45 Outside City Limits Minimum Monthly Fees Meter size Water Waste Water Total Outside City Limits Water consumption charge per 1000 gallons ¾” $17.73 $14.31 $32.04 # of Gallons Res/Com 1” $32.25 $23.98 1 to 5,000 $5.72 $56.23 5,001 – 10,000 $6.94 1.5” $56.46 $40.10 Over 10,000 $7.68 $96.56 2” $85.51 $59.44 Outside City Limits Sewer consumption charge per 1000 gallons $144.95 # of Gallons Res/Com 1 to 5,000 $2.53 5,001 – 10,000 $3.28 Outside City Limits Water consumption charge per 1000 Over 10,000 $5.17 gallons # of Gallons Res/Com 1 to 5,000 $5.72 5,001 – 10,000 $6.94 Over 10,000 $7.68

166 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

WATER & WASTEWATER REVENUES BY LINE ITEM

167 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

168 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water & Wastewater History Current Adopted Revenues 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Tap Fee 50,183 71, 290 70,000 88,000 70,000

Meter Set Fee 300 300 - 1,200 1,000

Sales-Water 1,850,169 2,545,217 2,500,000 2,815,325 2,700,000

Sales-Sewer 1,211,739 1,230,411 1,200,000 1,299,441 1,200,000

Sales - Bulk Sewer 175,987 171,393 160,000 117,630 115,000

Sales-Miscellaneous 18,253 89,595 10,000 33,000 15,000 Fees-Customer Penalties / Disconnect Fees 116,147 124,711 110,000 86,000 110,000

Interest Income 8,200 8,611 8,400 5,500 5,500

Miscellaneous Income - Restricted 692,000 - - - -

Income - Miscellaneous - 3,895 - 10,000 18,000

Test Data 10 - - - -

Other Financing Sources - - 23,743 23,743

4,122,989 4,245,424 4,082,143 4,479,839 4,234,500

169 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

170 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

WATER & WASTEWATER FUND EXPENDITURES

171 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

172 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water & Wastewater Fund Expenditures

IN FY 2021, the City will be matching funds for Colonia Grants. These grants are for water and wastewater services for residents that currently do not have such services.

Water & Wastewater Expenditures Interest expense and agent fees Transfer Out Sewer 3% 2% Plant 9% Administration General Sewer Collection 3% 9% Accounts 16% Utility Billing 6%

Water Meter Distribution Readers 9% Water Production 7% 36%

Expenditure Type $$$ % General Accounts 641,487 15.47% Administration 136,813 3.30% Utility Billing 229,075 5.52% Meter Readers 309,528 7.46% Water Production 1,484,107 35.78% Water Distribution 384,886 9.28% Sewer Collection 377,723 9.11% Sewer Plant 378,636 9.13% Interest expense and agent fees 89,028 2.15% Transfer Out 116,069 2.80% 4,147,353 100%

173 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

174 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

WATER & WASTEWATER FUND EXPENDITURES BY DEPARTMENT

175 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

176 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Debt service for the Water & Wastewater Fund are budgeted along with any grant matching funds needed for Capital Projects.

FY 2021 there is debt service of $363,391. There is also $310,924 in grant matching funds required.

Water & Sewer Debt Service 1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

- 74,313 76,865 79,200 76,402

CO Series 2005 CO Series 2012 CO Series 2014 Tax Note 2018 81,272 282,119

177 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water & Wastewater Fund Debt Service Schedule

CO Series CO Series CO Series Tax Note 2005 2012 2014 2018 Total

2021 81,272 282,119 363,391

2022 74,313 261,781 202,840 285,396 824,330

2023 76,865 261,856 204,641 283,486 826,848

2024 79,200 262,806 206,149 548,155

2025 76,402 258,578 202,433 537,413

2026 258,775 202,905 461,680

2027 258,463 202,568 461,031

2028 262,963 202,055 465,018

2029 262,275 206,280 468,555

2030 260,875 205,243 466,118

2031 258,750 204,030 462,780

2032 261,400 202,550 463,950

2033 258,825 205,710 464,535

2034 203,600 203,600

178 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

General Accounts History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Grant Matching Funds - - 314,116 - 310,924

Bond Principal - - - - 275,563

Bond Interest 218,744 215,292 192,004 192,004 87,828

Agent Fee 36,400 1,200 1,000 1,000 1,200

Transfer To Other Funds - - 635,000 61,000 116,069

Contractual Obligatigations - - - - 30,000

Bond Issuance - - - - 25,000

255,144 216,492 1,142,120 254,004 846,584

179 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Administration – Water & Wastewater Fund

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Director of Public Works 1 1 1 1 1

Department Total 1 1 1 1 1

DEPARTMENT DESCRIPTION/MISSION: The mission of the Aransas Pass Public Works Department is to effectively maintain and develop public infrastructure and facilities, and to provide services to the public to achieve common social, economic, and environmental desires.

180 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Administration – Water & Wastewater Fund

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Staff Development and Training o Have more licensed staff now than ever before in the City of Aransas Pass. • Water Tower Completion o Water tower has been completed and online. Minor cosmetic work being completed in July. • Staff Retention o Been promoting staff within the department, have improved turnover in the utility department. • Have begun replacing and repairing old lines in the system • Dropped our water loss down to 14% from 42% in previous year

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR:

• Staff Development and Training o Continue to train and develop staff so that we can work more effectively and correctly within the regulations set by codes and standards. • Set up procedures for testing Sanitary Sewer for infiltration issues • Grant Projects: o Complete all 15 CDBG-DR projects on time and under budget. o Complete TEDM emergency backup critical infrastructure project. o Complete Conn Brown Harbor Road Construction Project. o Close out at least 70% of FEMA related projects.

181 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Administration History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 97,607 84,728 90,522 90,355 92,162

Insurance - Health / Life / Dental 7,439 5,658 5,838 5,838 5,838

Insurance - Worker's Compensation 263 248 254 217 259

Insurance - Unemployment 162 9 180 144 99

Contribution - Social Security 7,209 6,790 7,503 7,029 7,633

Contribution - Retirement 10,897 8,473 9,778 9,773 10,048

Allowance - Vehicle / Equipment 6,050 7,320 7,320 7,320 7,320

Salaries - Longevity Pay - - 235 235 295

Utilities - T elephone 857 - - - -

Postage & Freight 2,089 2,060 - - -

Fees - Training 7,160 11,564 10,275 4,320 6,575

Fees - Subscriptions,Dues,Notary - 836 861 848 950

Prof. Service -Audit 2,500 - - - -

Maintenance - Vehicle 15 - 500 - 500

Supplies - Fuel 1,975 806 1,500 400 1,000

Supplies - Public Awareness 3,067 2,214 4,000 2,700 3,000

Supplies - Protective Clothing - - 125 125 125

Supplies - Minor T ools - 237 - - -

Supplies - Office 164 - - - -

Insurance - Property & Casualty 9,402 9,561 1,200 1,009 1,009

Disaster Expense - 33,452 - - -

156,856 173,955 140,091 130,314 136,813

182 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Utility Billing

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Utility Supervisor 1 1 1 1 1 Utility Billing 3 3 2 2 2 Department Total 4 4 3 3 3

DEPARTMENT DESCRIPTION/MISSION:

Functional responsibilities of the Utility Billing are to assist customers with their accounts. This position is responsible for maintaining the records of the Water and Sewer Utility Customers which include: meter reading books, billing ledgers, payment posting, consumption history, sewer billing, and meter test records in accordance with generally accepted accounting standards that is required to perform a variety of related clerical tasks.

183 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Utility Billing

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR:

• We have enrolled over 1,250 customers into our E-Billing System • Cut down on water loss by notifying customers of high usage • Disconnection list are smaller than previous years.

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR:

• Continue to improve on notifications of high water usage before the bill comes out • Verification of correct contact information on accounts • Implementing email instead of paper service orders

184 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Utility Billing History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 119,217 103,227 95,744 95,547 107,692

Overtime - - 1,500 - -

Insurance - Health / Life / Dental 24,352 20,239 17,514 17,513 17,514

Insurance - Worker's Compensation 285 270 258 221 285

Insurance - Unemployment 813 33 540 432 297

Contribution - Social Security 9,019 7,546 7,617 7,250 8,425

Contribution - Retirement Allowance - 13,732 10,658 9,927 9,939 11,318

Vehicle / Equipment Clothing 84 720 720 720 720

Allowance - - - - -

Salaries - Longevity Pay 2,100 1,480 1,600 1,600 1,720

Cash Over / Short (268) 22 - (10) -

Utilities - Telephone 699 30 120 138 200

Fees - Bank Card Charges Postage 17,896 28,007 17,600 25,950 27,765

& Freight 23,112 27,122 22,900 26,000 22,000

Fees - Training 1,195 1,696 2,600 100 2,500

Prof. Serv. - Physical Exams 135 - - - -

Maintenance - Communications - - - - -

Equipment Service / Maintenance 565 1,245 - - -

Equipment - Rental 6,714 4,984 10,324 14,281 11,260

Maintenance - Vehicle - - - - -

Supplies - Fuel - - - - -

Supplies Office 3,229 1,002 7,200 2,550 8,500

185 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Software Licenses Capital - 10,682 6,424 6,424 7,200

Outlay Professional Fees ------

Other 4,640 1,208 2,100 2,200 1,679 Diaster Expense 1,089 - - 288 -

228,609 220,172 204,686 211,143 229,075

186 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Meter Reading

Budgeted Positions

Position Historical Current Adopted 2020 2018 2018 2020 Projected 2021 Actual Actual Budget Year End Budget Meter Reader Supervisor 1 1 1 1 0 Meter Reader 3 3 3 3 2 Meter Reader Tech 0 0 0 0 1 Meter Reader III 0 0 0 0 1 Department Total 4 4 4 4 4

DEPARTMENT DESCRIPTION/MISSION: The Meter Reader Department is responsible for reading meters for the billing department, installing and maintaining meters, as well as making repairs throughout the city as needed.

187 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Meter Reading

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR: • Increased notification for leaks • Data loggers increase the efficiency in leak detection • Locked all vacant accounts

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR: • Finish larger meter switched over to digital meters • Proactive maintenance of meter and routes • Continue to GPS meter • Maximize technology • Integrating Latitude and Longitude Coordinates

188 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Meter Readers History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 108,155 96,064 103,499 103,216 128,960

Salaries - Overtime 342 638 3,000 200 4,000

Insurance - Health / Life / Dental 21,944 18,959 23,568 22,871 23,352

Insurance - Worker's Compensation 2,959 3,521 3,490 2,990 4,364

Insurance - Unemployment 732 84 720 469 396

Contribution - Social Security 7,341 7,048 8,147 7,549 10,187

Contribution - Retirement 11,980 10,164 10,618 10,254 13,410

Allowance - Vehicle / Equipment - 600 - - -

Allowance - Clothing 2,228 1,746 2,400 2,200 2,500

Salaries - Longevity Pay 825 680 - - 205

Utilities - T elephone 4,170 1,729 900 2,087 2,520

Fees - Training 2,198 394 3,833 700 900

Maintenance - Communication - - - - -

Equipment Service/Maintenance 215 - - - 3,300

Maintenance - Vehicle 3,699 3,777 3,220 4,200 3,065

Supplies - Fuel 7,255 7,418 6,900 6,500 7,000

Supplies - Protective Clothing 2,869 1,352 2,000 1,000 2,180

Supplies - Minor T ools 1,601 7,072 2,000 3,500 5,000

Supplies - Office 860 1,000 - - -

Software License 5,887 198 3,500 21 3,050

Capital Outlay - - 35,129 10,646 -

189 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Meter Expense - 33,936 107,614 75,000 59,925 Meter Parts/Installation Supplies 13,598 20,900 6,000 30,000 30,000

Contractual Obligations - - - - 5,214

Disaster Expense 1,964 - - 682 -

200,822 217,280 326,538 284,085 309,528

190 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water Production

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Utility Inspector 1 1 1 1 1

Department Total 1 1 1 1 1

DEPARTMENT DESCRIPTION/MISSION:

The mission of the Aransas Pass Public Works Department is to effectively maintain and develop public infrastructure and facilities, and to provide services to the public to achieve common social, economic, and environmental desires.

191 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water Production

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR:

• Reduce amount Dead Ends o Eliminated the two dead end flushers at Harbor with new looped line. o Eliminated two dead end flushers on Rhodes with new water line.

GOALS & OBJECTIVES FOR 2019-2020 FISCAL YEAR:

• Improve our residual readings throughout the water system • Continue to eliminate dead end water lines

192 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water Production History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 15,895 - 29,702 13,128 36,400

Salaries - Overtime 1,258 - - 1,100 1,500

Insurance - Health / Life / Denta 3,698 977 5,838 2,432 5,838

Insurance - Worker's Compensat 849 674 624 534 792

Insurance - Unemployment 162 - 180 - 99

Contribution - Social Security 1,256 - 2,327 1,157 2,954

Contribution - Retirement 1,989 - 3,033 1,515 3,889

Allowance - Vehicle / Equipment - - 720 240 720

Allowance - Clothing 273 84 440 207 440

Salaries - Longevity Pay (205) - - - -

Utilities - T elephone 300 - - - -

Fees - State License - - - - 9,150

Fees - Training 1,580 1,850 2,000 1,817 1,025

Maintenace Communication 4,015 3,957 4,050 4,200 4,150

Equipment Service/Maintenance 7 - - - -

Maintenance - Vehicle 242 2,294 1,800 1,700 1,800

Supplies - Chemicals 14,559 10,931 11,000 10,000 11,000

Supplies - Fuel 1,884 2,127 1,500 1,600 1,700

Supplies - Protective Clothing 84 150 250 170 250

Supplies - Minor T ools 1,876 2,879 2,650 2,200 2,400

Supplies - Water Purchase 1,959,161 1,556,594 1,800,000 1,481,571 1,400,000

Capital Outlay - - - - -

Disaster Expense 2,386 - - - -

2,011,962 1,582,518 1,866,114 1,523,572 1,484,107

193 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water Distribution

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Utility Tech I 5 5 5 3 3 Utility Tech II 0 0 0 0 0 Utility Tech III 0 0 0 0 0 Crew Leader 1 1 1 1 1 Department Total 6 6 6 4 4

DEPARTMENT DESCRIPTION/MISSION:

The mission of the Aransas Pass Public Works Department is to effectively maintain and develop public infrastructure and facilities, and to provide services to the public to achieve common social, economic, and environmental desires.

194 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water Distribution

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR:

• Replacement of Old Water Lines o Purchased a device to listen for water breaks and have identified leaks faster and helped save on our water loss. o Our water purchase has dropped over $200,000. • Fire Hydrant Replacement / Repairs o Replaced / repaired a total of 20 fire hydrants to date this year.

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR:

• Work more efficiently o Perform in-house boring of water service lines to avoid cutting streets open. o Complete SOPs for all work scenarios. o Use tablets to perform work orders in the field. o Keep running inventory of supplies. • Fire Hydrant Replacement / Repairs o Replace and repair fire hydrants around town with issue to help improve ISO rating. Develop a plan to install new hydrants where none are currently in place.

195 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water & Wastewater History Current Adopted Distribution Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 129,606 69,419 150,446 83,947 138,840

Overtime 9,643 7,456 15,000 9,433 10,000

Insurance - Health / Life / Dental 23,093 16,074 56,295 17,152 23,352

Insurance - Worker's Compensation 4,070 5,338 9,202 7,881 4,087

Insurance - Unemployment 883 200 1,800 700 396

Contribution - Social Security 10,242 5,711 20,583 6,615 10,676

Contribution - Retirement 16,063 8,014 27,300 9,330 14,054

Allowance - Vehicle / Equipment - - - 600 720

Clothing Allowance 1,288 1,441 2,000 1,200 2,200

Salaries - Longevity Pay - - - - -

Utilities - Telephone 660 - - - -

Fees - Training 4,464 4,270 3,510 2,100 3,100

Prof. Fees - Testing & Analysis 1,651 185 - - -

Equipment Service / Maintenance 3,229 3,507 4,000 2,200 3,500

Maintenance - Vehicle 1,570 1,840 5,000 3,800 4,000

Maintenance - Line Repair 96,850 89,771 85,000 85,000 75,000

Supplies - Chemicals 575 1,174 2,500 1,500 1,750

Supplies - Fuel 3,365 4,984 4,500 3,000 3,500

Supplies - Protective Clothing 1,348 1,092 1,000 900 1,000

Supplies - Minor Tools 1,580 1,858 1,500 1,500 1,500

Supplies Office 493 275 250 200 250

Capital Outlay 493 - 63,100 37,100 -

196 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Insurance - Property & Casualty 8,711 9,154 9,200 9,962 9,962

Utilities - Water / Sewer / Garbage 9,449 6,530 7,000 5,867 7,000

Utilities - Electricity 100,693 79,898 85,000 56,274 70,000

Maintenance - Building 2,273 - - - - Diaster Expense 29,667 - - - -

461,960 318,192 554,186 346,261 384,886

197 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Sewer Collection

Budgeted Positons

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Maint. Tech II 1 1 1 1 1 Utility Tech I 2 2 3 3 3 Utility Tech II 0 1 0 0 0 Vector Truck Operator 0 1 1 1 1 Department Total 3 5 5 5 5

DEPARTMENT DESCRIPTION/MISSION:

The mission of the Aransas Pass Public Works Department is to effectively maintain and develop public infrastructure and facilities, and to provide services to the public to achieve common social, economic, and environmental desires.

198 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Sewer Collection

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR:

• Created a Line maintenance program that has resulted in addressing two major sanitary issues that were unknown • Made repairs to two major sanitary issue that if not done would have caused many problems for residents

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR:

• Storm Water Infiltration o Begin smoke testing of sanitary sewer lines to identify issues with storm water infiltration into system. o Develop a plan to improve issues with infiltration into sanitary sewer system • Rhodes & Beasley Sanitary Sewer Project o Complete the extension of new sanitary sewer to Rhodes and Beasley Ave from Avenue A to Saunders. • Colonia Sanitary Sewer Project o Complete extension of new sanitary sewer to Sherwood Forest through grants awarded to the City.

199 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Water & Wastewater History Current Adopted Collection Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Salaries - Regular 81,577 107,131 132,246 111,440 170,934

Overtime 8,499 10,719 15,000 6,958 10,000

Insurance - Health / Life / Dental 16,444 20,284 29,190 25,134 29,190

Insurance - Worker's Compensation 3,055 2,621 3,384 2,898 3,938

Insurance - Unemployment 503 46 900 800 495

Contribution - Social Security 6,926 8,905 11,298 8,471 13,169

Contribution - Retirement 10,374 12,238 14,724 12,016 17,335

Allowance - Vehicle / Equipment - 1,200 - 960 720

Clothing Allowance 1,986 1,690 2,000 2,300 3,220

Salaries - Longevity Pay 725 375 435 435 495

Utilities - Telephone 867 - - - -

Fees - State License - - - - 1,075

Fees - Training 4,488 4,060 4,200 2,073 4,000

Maintenance - Communication 965 - - - -

Equipment Service / Maintenance 14,043 15,090 12,000 12,000 12,000

Maintenance - Vehicle 7,625 7,983 5,000 4,000 4,500

Maintenance - Line Repair 78,658 56,680 100,000 90,000 85,000

Supplies - Chemicals 2,894 8,269 8,500 6,500 7,000

Supplies - Fuel 4,038 6,731 26,060 10,000 10,500

Supplies - Protective Clothing 1,884 1,696 1,650 1,500 1,650

200 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Supplies - Minor Tools 1,572 2,807 2,500 2,600 2,250

Supplies - Office 472 1,325 250 230 250

Capital Outlay - - - - -

Disaster Expense 53,877 - - - -

301,471 269,850 369,337 300,315 377,723

201 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Sewer Treatment Plant

Budgeted Positions

Positions Historical Current Adopted

2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Utility Tech I 2 3 3 3 2 Utility Tech II 0 0 1 1 0 Plant Operator 1 1 1 1 1 Lift Station Tech 0 0 0 0 1 Department Total 3 4 5 5 4

DEPARTMENT DESCRIPTION/MISSION:

The mission of the Aransas Pass Public Works Department is to effectively maintain and develop public infrastructure and facilities, and to provide services to the public to achieve common social, economic, and environmental desires.

202 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Sewer Treatment Plant

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR:

• Improvements to the Wastewater Treatment Plant o Two drying beds have been redone and activated for use again. o Clarifier #2 is being rehabilitated. • Staff Development and Training o 2 Staff member received Class D wastewater operator license.

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR:

• Prepare a proper lift station maintenance program • Improvements to the Wastewater Plant o Complete electrical repairs to the treatment plant that were damaged as a result of Hurricane Harvey. o Repair Clarifier #2. o Repair concrete catwalk on racetrack. o Drain and repair the digester.

203 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Sewer Treatment Plant History Current Adopted Expenditure Detail 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Salaries - Regular 59,577 61,388 124,426 77,364 102,960

Salaries - Overtime 3,015 5,218 6,000 2,500 3,000

Insurance - Health / Life / Dental 12,344 7,947 23,352 11,000 17,514

Insurance - Worker's Compensation 2,483 2,506 3,334 2,855 3,027

Insurance - Unemployment 494 9 720 250 297

Contribution - Social Security 4,818 2,984 10,033 4,074 8,106

Contribution - Retirement 7,321 4,065 13,075 5,358 10,670

Allowance - Vehicle / Equipment - - 720 - -

Allowance - Clothing 736 536 1,600 670 2,070

Salaries - Longevity Pay 1,995 - - - -

Utilities - T elephone 1,144 1,094 1,000 1,033 1,000

Fees - State License 22,683 15,322 20,000 15,322 16,000

Fees - Training 1,866 1,349 4,260 1,000 2,250

Prof Fees - Testing & Analysis 21,657 10,369 20,000 13,000 15,000

Sludge Removal 66,491 54,619 50,000 44,000 50,000

Maintenance Communication - - - - -

Equipment Service/Maintenance 23,844 10,178 15,000 8,625 10,000

Maintenance - Vehicle 929 1,556 3,000 600 1,500

Supplies - Chemicals 51,378 45,166 45,000 35,000 39,000

Supplies - Fuel 1,508 2,282 3,540 1,000 2,750

Supplies - Protective Clothing 1,759 1,559 1,650 2,100 1,400

Supplies - Minor T ools 2,022 3,175 2,000 1,800 2,000

204 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Supplies - Office 1,765 1,946 1,000 1,000 1,000

Capital Outlay 18,260 - - - -

Insurance - Property & Casualty 22,250 24,246 24,500 23,100 23,092

Utilities - Electricity 38,990 47,208 42,000 64,403 59,000

Maintenance - Building 1,472 1,439 1,500 1,300 1,500

Maintenance - Building Equipment 5,069 4,799 5,000 4,600 5,000

Supplies - Janitorial 32 - 500 500 500

Disaster Expense 40,894 - - 32 -

416,798 310,959 423,210 322,486 378,636

205 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

206 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

HARBOR FUND

207 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

208 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Harbor Fund

The Harbor Fund is an Enterprise Fund that generates revenue from lease payments, boat slip rentals, and percent of sales. In 2017 the Harbor was one of many areas of the City that was damaged including the total loss of the Harbor Master’s building. The Harbor has since received two grants, the first from the Lion’s Club and the second from the Economic Development Administration for $4,800,000 with a match of $25,000. The purpose of the grant is to provide road improvements to Conn Brown Harbor. More specifically, the grant will provide rebuilt roads at Conn Brown with an adjacent bike/walking path. If permitted by the funding amount the City plans to overlay the parking lot at Harbor Point. The preliminary design calls for a roundabout at the intersection of Allen, Bigelow and Huff. Considering the harbor may be the last undeveloped piece of property in the Coastal Bend, these improvements will make the harbor that much more attractive to developers. The harbor consists of 49 acres of submerged inner harbor, 42 acres of submerged outer harbor area, and 95 acres of upland fill comprising the peninsula, the harbor includes 16,900 feet of shoreline, most of which is bulkhead. The depth of the inner harbor ranges from 16-20 feet in the center and 8-12 feet on the outer area of the harbor. The Municipally owned harbor was originally used in the shipping of cotton, crude oil, hauling of jetty rock, corn, grain, and livestock. Since the late 1930’s Aransas Pass was known as the “Shrimp Capital of the World,” and at one time there were 11 seafood processing companies to process primarily shrimp. Since the 1920's the city has owned and managed the harbor and been responsible for the harbor operations and maintenance.

209 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Harbor Fund Revenues

Commercial vessels requiring temporary dockage may utilize the City docks along the bulkhead located for a fee of $6 per hour. Aside from leases and boat slip rentals, the City also collects revenues as a percent of sales from Redfish Bay Boathouse, Handsome Sailor, and ICW RV. The harbor is projected to generate $353,699 in revenues in FY 2021.

Harbor Revenue

Lease Payments 78%

Boat Slip Rentals 11% % of Sales 11%

Harbor Leases

The responsibility of the maintenance of the harbor is shared with the tenants of the harbor through lease agreements. Currently the harbor has 12 lease agreements with the following business: • G&S Marine Services • Redfish Bay Boathouse • Capt. Cady’s • Aransas Pass Seafood Packers • Diamond Marine Services • Handsome Sailor • Capt.’s Bait Shack • Justin Chandler (2) • Coast Point Shrimp Co. • Aransas Marine Ways • ICW RV Park

210 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Harbor Fund

Budgeted Positions

Positions Historical Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget Harbor Master 1 1 1 1 1 Contract Labor 0 1 0 0 0 Maintenance Tech 0 0 1 1 1

Department Total 1 2 2 2 2

DEPARTMENT DESCRIPTION/MISSION:

The mission of the Harbor Master is to provide citizens with a safe and secure park facility for recreational fishing and related activities, manage all lease activity to provide efficient use of resources, and assist all efforts to secure future economic development which maximizes benefits to citizens.

211 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Harbor Fund

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR:

• New Harbor Master Building plans completed, funding approved, bid accepted, contract out, construction started FEMA Project • Lion’s Club grant utilized to assist in creating small pocket park at end of peninsula with new sidewalks, benches, covers on cleaning tables, restoring shelters, planting palm trees, installing piling fence at perimeter of parking lot and repainting exterior of restroom facility • Let contract, chose bidder and restored lighting at Harbor Park and Fishing Pier FEMA Project • Lion’s Club grant utilized to restore all picnic table/shelters and rebuild Observation Decks with Handicapped access ramps at Lighthouse Lakes Kayak Park • Used grant money to install 3 new water fountains and constructed a new Handicapped access ramp at Harbor Park • Maintained schedule of mitigation efforts on the pollution sites at JBS and Coastline • Started and maintained physical work to mitigate the Sea Grass Issue • Opened new Business, CB Marine Service • Closed TCEQ complaint for former Gulf King location • Continued progress on old JBS and Coastline pollution sites • Maintained “on the water” presence of over 250 hours, assisted in body recovery, carried out debris clean-up and pollution control

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR:

• Improve Appearance o Repaint interior of Harbor Park Restroom. o Paint or stain all wood structures at Harbor Park. o Paint or stain all wood structures at Kayak Park. o Continue pothole maintenance in Harbor Park. o Stripe in parking lot as feasible. o Plant Red Yucca in bare dirt areas at Harbor Park and sod as necessary.

212 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Harbor Fund

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR:

• Improve Appearance o Repaint interior of Harbor Park Restroom. o Paint or stain all wood structures at Harbor Park. o Paint or stain all wood structures at Kayak Park. o Continue pothole maintenance in Harbor Park. o Stripe in parking lot as feasible. o Plant Red Yucca in bare dirt areas at Harbor Park and sod as necessary. o Monitor all projects to completion. • Improve Functionality o Replace all missing signage (speed limit, no parking, no wake, stay off grass, etc.). o Review and maintain all Harbor leases, insurance documents and payments. o Review and recommend changes to modernize all Harbor city ordinances. o Review/Re-write all city ordinances dealing with Harbor rules to enable enforcement (no wake, parking, etc.). o Seek Food Truck vendors and Fish Cleaning Services to aid citizens on busy weekends and holidays. • Development o Identify with signage adequate overflow parking areas adjacent to the parking lot for use during road construction project. o Repair/restore the wooden deck at the north end of the Harbor and designate parking for safety and appearance. o Complete any unfinished work on a new Harbor Master building and parking area. o Seek a funding source for a pier with boat lifts to service the new building. o Apply for a new permit from USACE for wet slips in the Harbor. o Seek a funding source for new wet slips if/when needed.

213 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Harbor Fund History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues:

Income - Lease Payments 269,020 262,824 259,000 247,773 273,699

Income - Boat Slip Rentals 40,256 55,246 52,500 41,825 40,000

Income - % of Sales 43,487 48,875 28,000 45,000 40,000

Income - Miscellaneous 3,298 - - - -

Interest Income - - - - -

Transfers In From Other Funds - - - - -

Grant Income - 15,826 - 11,092 -

Total Revenues 356,061 382,771 339,500 345,689 353,699

Expenditures:

Salaries - Regular 57,333 66,619 73,463 74,344 91,220

Ov ertime 208 45 - 3,715 -

Insurance - Health / Life / Dental 155 1,191 3,336 3,248 5,903

Insurance - Worker's Compensation 1,100 1,316 1,907 1,634 2,492

Insurance - Unemployment 162 14 270 216 198

Contribution - Social Security 4,402 5,158 5,703 5,712 7,103

Contribution - Retirement 6,632 6,910 7,432 7,440 9,350

Allowance - Vehicle / Equipment - 916 1,080 1,080 1,440

Allowance - Clothing - 150 375 215 265

Longevity Pay - - - - 190

Utilities - T elephone 38 76 750 456 750

214 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Postage & Freight - 172 75 10 100

Fees - Legal Notices 120 - 100 50 100

Fees - Training - - 200 - 200

Prof. Serv. - Audit 1,000 - - - -

Prof. Fees - Clean Up 157,110 - - - -

Prof. Fees - Consulting 13,500 - - - -

Equipment Service / Maintenance 1,380 4,246 1,000 1,000 1,000

Equipment Rental - - - - -

Maintenance - Vehicle 820 2,429 3,000 1,800 1,500

Supplies - Fuel 1,946 2,142 2,750 1,700 2,500

Supplies - Office 112 36 250 6 500

Capital Outlay - 32,058 - - -

Insurance - Property & Casualty 3,395 3,139 3,300 2,946 3,250

Utilities - Water / Sewer / Garbage 7,625 3,735 3,500 8,054 8,000

Utilities - Electricity 6,260 13,909 17,000 6,776 10,000

Maintenance - Building - - 1,500 600 500

Maintenance - Building Equipment 1,935 7,051 6,500 41,000 10,000

Supplies - Janitorial 228 974 1,000 3,100 -

Contractual Obligations 3,213 4,193 - - 50,000

Professional Fees - Engineering 263 - 1,500 - -

Environmental Projects 15,761 71,509 17,000 15,000 65,000

Grant Matching Funds - - 92,610 - 16,350

Interest Expense 1,879 1,475 1,800 694 958

215 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Transfer to Other Fund 967 141,600 92,000 137,000 64,000

Disaster Expense 9,079 - - - -

Depreciation Expense 30,177 28,188 - - -

Total Expenditures 326,799 399,253 339,401 317,796 352,871

Net Change in Fund Balance 29,261 (16,482) 99 27,894 828

Fund Balance Beginning of Year 815,275 844,536 828,054 828,054 855,948

Fund Balance End of Year 844,536 828,054 828,153 855,948 856,776

216 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

AQUATIC CENTER FUND

217 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

218 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Aquatic Center Fund

The Aquatic Center Fund is an Enterprise Fund that generates revenue from admissions, parties, swimming lessons, water aerobics classes, merchandise, and concessions sells. The Aquatic Center was the first community project created and funded by bonds issued to the Municipal Development District. The center was completed and ready for business in 2002, costing the MDD Board $3.4 million and it is the largest pool of its kind in the entire Coastal Bend that is not privately owned and operated.

The facility is 29,000 sq. ft. with 3 pools, 3 slides, a high and low dive, lily pads, and a rope net. The competition pool and slide pool are 200,000 gallons and the kiddie pool is 50,000 gallons. The Aquatics Center is open from May to September employing over 30 seasonal employees.

219 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Aquatic Center Revenues

Daily entrance fee and transfers in from other funds accounts for 80.52% of the Aquatic Center’s revenues.

Revenue Type $$$ Daily Entrance 121,295 Annual Passes 3,715 Concessions 20,000 Classes 6,000 Facility Rental 40,000 Miscellaneous 3,200 Transfer in from other funds 180,069 374,279

AQUATICS CENTER REVENUE

Transfer in from Daily Entrance other funds 32% 48%

Facility Rental 11% Annual Passes 1% Classes Concessions 2% 5% Miscellaneous 1%

220 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Aquatics Center

Budgeted Positions

Positions Historical Current Adopted 2018 2019 2020 2020 2021 Actual Actual Budget Projected Budget Year End Manager 1 1 1 1 1 Assistant Manager 1 0 1 1 1 Seasonal Employees 22 21 30 38 30

Department Total 24 22 32 40 32

DEPARTMENT DESCRIPTION/MISSION:

To provide a multi-use facility for the residents of Aransas Pass and surrounding communities at a reasonable cost for all ages and abilities, and a professional staff which maintains a safe and friendly atmosphere.

221 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Aquatic Center

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR:

• Was not able host any water safety classes because of pandemic • Slide tower was completely sandblasted, sealed and, painted • Opened for partial season during the COVID pandemic

GOALS & OBJECTIVES FOR 2020-2021 FISCAL YEAR:

• Preventative maintenance is our top priority • Expand our water safety program • Expand In house concessions • Main off season project will be to recoat the 3 fiberglass slides

222 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Aquatic Center History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues

Income - Daily Entrance 98,673 118,064 145,000 9,517 121,295

Income - Annual Passes 3,308 3,922 5,000 20 3,715

Income - Concessions 999 16,826 20,000 1,153 20,000

Income - Classes 5,019 4,609 7,000 25 6,000

Income - Facility Rental 38,239 42,519 40,000 337 40,000

Income - Miscellaneous 1,467 3,170 3,000 - 3,200

Refunds (780) (1,007) - -

Transfer In From Other Funds 153,503 161,117 128,000 234,000 180,069

Total Revenues 300,428 349,219 348,000 245,052 374,279

Expenditures

Salaries - Regular 139,960 197,900 348,000 93,829 202,869

Ov ertime 2,567 1,029 - 100 -

Insurance - Health / Life / Dental 5,760 7,088 10,842 11,685 11,676

Insurance - Worker's Compensation 5,765 4,705 4,952 4,241 4,942

Insurance - Unemployment 1,943 153 5,760 717 3,168

Contribution - Social Security 10,849 14,901 15,623 7,116 15,591

Contribution - Retirement 3,919 4,619 6,565 6,564 6,544

Allowance - Vehicle / Equipment - 240 720 720 -

Allowance - Clothing 2,470 3,377 2,000 - 2,000

Salaries - Longevity Pay - - 4,000 - 220 Cash Over / Short (316) (277) - - -

223 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Utilities - T elephone 321 4,494 4,000 3,518 3,800

Fees - Bank Card Charges 1,957 3,954 1,000 1,000 2,000

Postage & Freight 9 2 20 60 60

Fees - Training 1,420 2,279 2,000 490 1,475

Prof. Serv. - Physical Exams 910 1,425 2,000 805 1,575

Prof. Serv. - Audit 1,500 - - - -

Equipment Service - Maintenance 14,002 10,637 10,000 8,000 16,724

Advertising 2,398 3,326 4,500 500 4,000

Supplies - Chemicals 33,911 25,757 15,000 23,000 25,000

Supplies - Office 4,160 4,203 3,300 2,600 4,400

Capital Outlay 282 1,392 25,000 26,374 -

Insurance - Property & Casualty 8,872 5,424 5,500 6,034 6,035

Utilities - Water / Sewer / Garbage 14,290 11,108 13,000 9,466 12,000

Utilities - Electricity 13,544 16,890 16,253 16,000 16,500

Utilities - Natural Gas 317 237 500 419 500

Maintenance - Building 3,139 11,310 8,000 7,500 11,200

Maintenance Pool Equipment 7,849 4,079 5,000 7,250 8,000

Supplies - Janitorial 886 2,278 2,500 180 3,200

Supplies - Concession 2,021 9,176 7,500 1,530 9,000

Supplies - Swim Classes 292 1,748 1,500 - 1,500

Supplies - Event Expense 455 482 300 - 300

Supplies - Admission System - 160 - - -

224 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Disaster Expense 35,413 27,261 - 3,973 -

Total Expenditures 320,868 381,358 525,334 243,672 374,279

Net Change in Fund Balance (20,441) (32,138) (177,334) 1,380 0

Fund Balance Beginning of Year (3,462) (23,903) (56,041) (56,041) (54,661)

Fund Balance End of Year (23,903) (56,041) (233,375) (54,661) (54,661)

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226 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

CIVIC CENTER FUND

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Civic Center Fund

The Civic Center Fund is an enterprise fund that generates its revenue through the rental of the Civic Center. The Civic Center was the second community project created through bonds issued to the Municipal Development District. The Civic Center opened its doors April 2009 and is managed by the Director of Community Enrichment, Sarah Lee.

The Civic Center is 30,000 Square feet and has several different options for event space. The rooms range in size from 700 square feet to 16,000 square feet. It is the largest and newest facility in our area north of the Harbor Bridge.

Unfortunately, August of 2017 the Civic Center was greatly damaged by Hurricane Harvey incurring over $750,000 in construction costs. Today the Civic Center is still under repair from Hurricane damages causing even further losses in the Civic Centers revenue

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Civic Center Revenues

Transfers in from the Municipal Development District account for 60.68% of the Civic Center’s revenues. This is something that staff is working to decrease in the future.

Revenue Type $$$ Transfer in from other funds 240,000 Facility Rental 125,040 Miscellaneous 5,000 Equipment 13,500 Catering 3,000 Labor Charge 9,000 395,540

Civic Center Revenue Facility Rental 32%

Transfer in from other funds 61% Miscellaneous 1%

Equipment 3% Catering Labor Charge 1% 2%

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Civic Center

Budgeted Positions

Position Historical Current Adopted 2018 2019 2020 2020 2021 Actual Actual Budget Projected Budget Year End Director of Community 1 1 1 1 1 Enrichment Administrative Assistant 1 1 1 1 1 Marketing Manager 0 0 0 0 1 Event Clerk 1 1 1 1 1 Custodian/Maintenance 0 1 0 0 1 Administrative Clerk 0 0 1 1 0 Department Total 3 4 5 5 5

DEPARTMENT DESCRIPTION/MISSION:

The Aransas Pass Civic Center is the ideal venue for conferences, trade shows, concerts, theatrical events, banquets, weddings, receptions, and more. We are a small town facility with big city capabilities. We pride ourselves on service and style.

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Civic Center

ACCOMPLISHMENTS FOR 2019-2020 FISCAL YEAR:

• Completed the HVAC and electrical project • Replaced boardroom contents • Hosted community events, private events and tradeshows

GOALS & OBJECTIVES FOR 2019-2020 FISCAL YEAR:

• Preventative maintenance is our top priority • Complete audio/visual project • Meet and possible exceed our sales goal for the year • Hire a Marketing Manager to promote the Civic Center regionally

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Civic Center History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues:

Transfers In From Other Funds 403,965 192,015 260,000 228,953 240,000

Income - Facility Rental 54,372 51,835 75,000 37,000 125,040

Income - Miscellaneous 791 - 5,000 2,260 5,000

Refunds (1,575) - - - -

Rentals - Equipment 3,375 4,665 13,500 4,000 13,500

Fees - Catering 1,752 1,591 3,000 930 3,000

Fees - Labor Charge 5,720 10,485 9,000 6,400 9,000

Fee - Miscellaneous - - - - -

Fee - Event Taxable - - - - -

Total Revenues 468,400 260,592 365,500 279,543 395,5 40

Expenditures:

Salaries - Regular 108,827 102,543 104,506 105,878 174,479

Ov ertime 3,462 6,165 8,000 6,000 4,300

Insurance - Health / Life / Dental 13,465 12,315 10,842 11,489 17,514

Insurance - Worker's Compensation 315 333 294 252 419

Insurance - Unemployment 621 75 540 400 495

Contribution - Social Security 8,810 8,235 8,682 8,434 14,534

Contribution - Retirement 11,949 13,615 9,449 10,269 15,878

Allowance - Vehicle / Equipment 5,538 7,440 8,160 8,160 10,260

Allowance - Clothing - 17 250 - 250

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Civic Center History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Longevity Pay 585 705 825 825 945

Utilities - T elephone 4,277 2,591 4,971 5,731 6,000

Utilities - Internet 1,421 2,031 - - -

Fees - Bank Card Charges 238 1,217 600 1,200 -

Fees - Training 374 60 1,500 300 500

Fees - Subcriptions, Dues, Notary - 100 1,050 260 200

Prof. Services - Physical Exam 135 - 250 35 240

Prof. Fees - Consulting - - - - -

Advertising 68 1,255 5,000 415 2,500

Supplies - Office 703 1,034 3,200 600 6,200

Capital Outlay 29,224 - 21,600 200 -

Insurance - Property & Casualty 30,325 34,121 56,000 38,722 38,760

Utilities - Water / Sewer / Garbage 7,286 9,433 10,600 10,395 12,000

Utilities - Electricity 43,274 36,829 60,000 34,114 55,000

Utilities - Natural Gas 2,293 311 1,400 1,467 1,500

Maintenance - Building 4,923 1,609 8,500 8,000 7,500

Maintenance - Building Equipment 15,815 19,285 17,479 15,000 15,563

Supplies - Janitorial 2,709 1,620 4,000 2,000 4,500

Disaster Expense 322,898 16,908 - 935 -

Salaries - Regular - - - - -

Ov ertime - - - - -

Insurance - Health / Life / Dental - - - - -

234 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Civic Center History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Insurance - Worker's Compensation - - - - -

Insurance - Unemployment - - - - -

Contribution - Social Security - - - - -

Contribution - Retirement - - - - -

Equipment Rental - (3) - - -

Event Expense 1,543 849 10,000 400 6,000

Total Expenditures 621,079 280,695 357,698 271,482 395,536

Net Change in Fund Balance (152,679) (20,103) 7,802 8,061 4

Fund Balance Beginning of Year (15,767) (168,446) (188,549) (188,549) (180,488)

Fund Balance End of Year (168,446) (188,549) (180,747) (180,488) (180,485)

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236 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

FORFEITURE FUND

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238 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Forfeiture Fund

The Aransas Pass Police Department (APPD) is a member agency of multiple Federal Task Forces used to target criminals who prey on the vulnerable for financial gain. As such, APPD participates in federal investigations that can include the seizure of assets (money and property) used in the commission of crimes. The seizure of these assets is authorized by the Department of Justice Asset Forfeiture Program. According to the Department of Justices’ A Guide to Equitable Sharing, these asset forfeitures are authorized to be shared with cooperating state and local law enforcement agencies through the Equitable Sharing Program. The program serves not only to deter crime but also to provide valuable additional resources to state and local law enforcement agencies. For full details regarding the use of Equitable Sharing Funds, please refer to the United States Department of Justice and United States Department of Treasury guidelines.

APPD has received Equitable Sharing Funds from the United States Department of Justice and Treasury. APPD receives these funds after a federal case has been adjudicated and the assets have been authorized for release according to the Department of Justice and Department of Treasury guidelines.

239 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Forfiture Fund History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues

Interest Income 16,209 20,540 20,000 6,047 6,000

Federal Forfeiture income 129,817 98,969 91,000 106,604 90,000

Income - Miscellaneous 41,965 - - - -

Auction Income - 20,301 - - -

State Forfeiture Funds - - - - 2,500

Total Revenues 187,991 139,810 111,000 112,651 98,500

Expenditures

Federal Forfeiture 418,621 440,237 272,400 422,518 183,250

State Forfeiture 3,100 3,000 - 2,202 2,500

Total Expenditures 421,721 443,237 272,400 424,720 185,750

Net in Fund Balance (233,730) (303,427) (161,400) (312,069) (87,250)

Beginning Fund Balance 1,526,611 1,292,881 989,454 828,054 515,985

Ending Balance 1,292,881 989,454 828,054 515,985 428,735

240 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

MUNICIPAL COURT TECHNOLOGY FUND

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242 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

MC Technology Fund History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues

Interest Income 43 125 120 70 75

MC - Fines Levied 5,943 5,207 5,300 4,000 4,500

Miscellaneous Income - - -

Total Revenues 5,986 5,332 5,420 4,070 4,575

Expenditures

Equipment Service / Maintenance 14,786 13,810 2,000 - -

Supplies - Office - 1,977 - - -

Software License - - 13,800 13,500 6,700

Total Expenditures 14,786 15,787 15,800 13,500 6,700

Net Change in Fund Balance (8,800) (10,456) (10,380) (9,430) (2,125)

Fund Balance Beginning of Year 30,865 22,065 11,610 11,610 2,180

Fund Balance End of Year 22,065 11,610 1,230 2,180 55

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244 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

MUNICIPAL COURT BUILDING SECURITY FUND

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246 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Municipal Court Building Security Fund

Municipal Court Technology Fund was created when the City Council adopted an ordinance that required a defendant convicted of a misdemeanor offense to pay a technology fee not to exceed $4.90 as a cost of court. Fund may be used only to finance security personnel for the municipal court including: • The purchase or repair of X-ray machines and conveying systems • Handheld metal detectors • Walkthrough metal detectors • Identification cards and systems • Electronic locking and surveillance equipment • Bailiffs, deputy sheriffs, deputy constables, or contract security personnel during times when they are providing appropriate security services • Signage • Confiscated weaponry inventory and tracking systems • Locks, chains, alarms, or similar security devices • The purchase or repair of bullet-proof glass • Continuing education on security issues for the court personnel and security personnel

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MC Bldg Security Fund History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues

Interest Income 127 194 150 300 300

MC - Fines Levied 4,463 3,905 4,000 3,600 4,000

Miscellaneous Income - - - - -

Total Revenues 4,590 4,099 4,150 3,900 4,300

Expenditures

Capital Outlay 7,339 - 2,000 - -

Contractual Obligations - - 3,000 - -

Total Expenditures 7,339 - 5,000 - -

Net Change in Fund Balance (2,749) 4,099 (850) 3,900 4,300

Fund Balance Beginning of Year 34,712 31,963 36,062 36,062 39,962

Fund Balance End of Year 31,963 36,062 35,212 39,962 44,262

248 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

MUNICIPAL COURT JURY FUND

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250 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Municipal Court Jury Fund

Municipal Court Jury Fund was established to require a defendant convicted of a misdemeanor offense to pay a fee not to exceed $0.10 as a cost of court. Funds may only be used to fund juror reimbursements and otherwise finance jury services.

251 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

MC Jury Fund History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues

MC - Fines Levied - - - 50 100

Total Revenues - - - 50 100

Expenditures

Supplies - Office - - - - -

Total Expenditures - - - - -

Net Change in Fund Balance - - - 50 100

Fund Balance Beginning of Year - - - - 50

Fund Balance End of Year - - - 50 150

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HOTEL/MOTEL FUND

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254 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Hotel/Motel Fund

The Hotel Motel Tax Fund is a special revenue fund that generates revenues from Hotel Occupancy Tax (HOT Funds) collected from hotels, motels, bed and breakfasts, and inns. HOT Funds may only be used to directly promote tourism and the convention and hotel industry in Aransas Pass. In order to use HOT Funds there are two criteria that must be met:

• Every Expenditure must directly enhance and promote tourism and the convention and hotel industry in Aransas Pass. • Every Expenditure of the Hotel Occupancy Tax must clearly fit into one of nine statutorily provided categories for expenditure of local hotel occupancy tax revenues. The Categories are as follows: o Convention Centers and Visitor Information Centers o Registration of Convention Delegates o Advertising, Solicitations and Promotions that Directly Promote Tourism and the Hotel and Convention Industry o Promotions of the Arts that directly promote Tourism and the Hotel and Convention Industry o Historical Restoration and Preservation Activities that directly promote Tourism and the Hotel and Convention Industry

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o Sporting Events Expenses that substantially Increase Economic Activity at Hotels o Certain Portions of Sporting Facilities o Shuttle Services for Convention Activities o Signage directing tourists to signs and attractions that are visited frequently by hotel guests in the municipality

Hotel Motel Tax Advisory Committee To ensure the HOT Funds are being used properly the Hotel Motel Tax Advisory Committee was created on May 7, 2018 by Ordinance No. 2018-4213. The committee consists of five members who are appointed by the City Council including three citizens, the Executive Director of the Aransas Pass Chamber of Commerce, and the Director of Finance. The Committee serves as an advisory body to the City Council by providing recommendations based on an application and guidelines applicants must follow when applying for use of HOT Funds.

Hotel Motel Chamber Agreement The City has entered into a Publicity and Tourism Agreement with the Aransas Pass Chamber of Commerce in which the Chamber is to receive 70% of HOT Funds collected by the City. The Chamber may use this money for advertising and promoting tourism for the visitors market from which the City of Aransas Pass derives direct tourist income benefits. The Chamber may use the HOT Funds in the following specific areas:

• The furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants; • Advertising and conducting solicitations and promotional programs to attract tourist and convention delegates or registrants to the municipality or its vicinity or; • Advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historical sites or museums; and • The encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music, dance, drams, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photograph, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms.

256 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Hotel Motel Fund Revenue

The City is projected to collect $128,571 in HOT Funds for FY 2020 which is a decrease of $138,018 than that collected the previous year. The drastic decline is due to the COVID-19 Pandemic that has affected the entire country since March 2020. Events that have been supported by HOT Funds include Vets Fishing, Boat Shows, The Coastal Bend Custom & Classic Car Show, and Coastal Bend Wood Carving.

HOT Funds Collected 300,000

250,000

200,000

150,000

100,000

50,000

- 2017 2018 2019 2020 2021

257 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Hotel / Motel Fund History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues

Hotel / Motel Tax 273,064 266,589 270,000 128,571 200,000

Interest Income 1,156 2,124 2,100 1,000 1,000

Total Revenues 274,220 268,714 272,100 129,571 201,000

Expenditures

Advertising 21,980 15,604 - - 22,200

Community Special Events 35,925 49,362 50,000 40,000 38,800

Prof. Serv. - Other 190,261 187,017 189,000 90,000 148,000

Total Expenditures 248,166 251,983 239,000 130,000 209,000

Net Change in Fund Balance 26,054 16,730 33,100 (429) (8,000)

Fund Balance Beginning of Year 74,212 100,266 116,997 116,997 116,568

Fund Balance End of Year 100,266 116,997 150,097 116,568 108,568

258 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

E911 FUND

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260 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

E911 Fund

E911 fees are charges imposed on the customers pursuant to state or local law to finance Enhanced 911 services in a particular district.

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E911 Fund History Current Proposed 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues

Interest Income 612 770 780 840 800

Income - Grant Crime Control 53,178 44,000 44,000 44,000 44,000

Income - E911 Fees 55,692 56,640 50,000 56,600 55,000

Total Revenues 109,482 101,410 94,780 101,440 99,800

Expenditures

Utilities - T elephone 516 46,834 59,141 44,000 46,236

Equipment Service/Maintenance - - - - -

Code RED - - - - 7,000

PDCF Project - CRIMES - - - - 16,500

PDCD Netmotion & Google Apps - 18,254 15,000 28,000 36,265

Nex Gen 911 - - - - 26,118

Transfer to Other Funds 31,542 - - - -

Total Expenditures 32,058 65,088 74,141 72,000 132,119

Net Change in Fund Balance 77,424 36,321 20,639 29,440 (32,319)

Fund Balance Beginning of Year 270,713 348,137 384,459 384,459 413,899

Fund Balance End of Year 348,137 384,459 405,098 413,899 381,579

262 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

MUNICIPAL DEVELOPMENT DISTRICT FUND

263 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

264 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Municipal Development District

The Aransas Pass Municipal Development District (MDD) is a political subdivision of the State of Texas and the City, established in 1998 for the purpose of promoting economic development within the City as prescribed by Chapter 377 of the Texas Local Government Code.

To create the MDD, the City called an election through an ordinance that defined the proposed boundaries of the district. District revenues are collected through local sales and use tax of $0.005. The MDD is governed by aboard of nine members that are appointed by the Coty Council. The members are appointed for two year terms with no limit on the number of terms they can serve.

The MDD Board must adopt a budget each year at public meeting. Once the MDD Board approved the budget, it is then presented to City Council for final approval.

265 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Municipal Development District Revenues

Sales Tax

Local sales and use tax is the sole source of revenues for the municipal Development District. The graph below shows the sales and use tax collections and the change for the past 10 years. The MDD Board is expecting to generate $1,100,000 in FY 2021.

Sales Tax Revenue - % Change 1,400,000 25.00%

1,200,000 20.00%

1,000,000 15.00%

800,000 10.00%

600,000 5.00%

400,000 0.00%

200,000 -5.00%

- -10.00% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Sales Tax Revenue % Change

266 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Municipal Development District Debt Service

The MDD Board has issued debt to fund its two projects, Aquatic Center and Civic Center.

MDD Debt Service 600,000

500,000

400,000

300,000

200,000

100,000

- 2021 2022 2023 2024 2025 2026 2027

Refunding Series 2007 Refunding Series 2018

Refunding Refunding Series 2007 Series 2018 Total 2021 273,394 279,950 553,344 2022 274,740 278,441 553,181 2023 275,684 281,790 557,474 2024 276,225 284,857 561,082 2025 276,364 282,640 559,004 2026 273,100 280,282 553,382 2027 275,434 282,783 558,217

267 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Municipal Development District Expenditures

Debt service and the Civic Center Deficit Transfer account for

Bond Principal MDD Expenditures Bond Interest Expense, 48.79% Expense, 12.57%

Prof. Service , 0.39% Civic Center Deficit, 26.61% Maintenance - Capital Outlay, Building, 8.32% 3.33%

Expenditure Amount % Prof. Service 3,500 0.39% Capital Outlay 30,000 3.33% Maintenance - Building 75,000 8.32% Bond Principal Expense 440,000 48.79% Bond Interest Expense 113,342 12.57% Civic Center Deficit 240,000 26.61% 901,842 100%

268 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Municipal Development District History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues

Sales Tax 1,071,532 1,036,756 1,020,000 1,154,620 1,100,000

Interest Income 10,959 12,495 12,000 9,331 9,000

Total Revenues 1,082,491 1,049,250 1,032,000 1,163,951 1,109,000

Expenditures

Prof. Service 3,300 3,300 3,500 3,300 3,500

Capital Outlay - - 25,000 - 30,000

Insurance - - - - -

Maintenance - Building - - 125,000 - 75,000

Prof Fees - Attorney/Legal - - - - -

Personnel Expense - - - - -

Bond Principal Expense 380,000 410,000 430,000 430,000 440,000

Bond Interest Expense 180,115 148,056 128,063 128,063 113,342

Civic Center Deficit 251,285 192,015 260,000 228,953 240,000

Aquatic Center Deficit - 161,117 - - -

Transfer To Other Funds - - - - -

Total Expenditures 814,700 914,488 971,563 790,316 901,842

269 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Net Change in Fund Balance 267,791 134,762 60,437 373,635 207,158

Fund Balance Beginning of Year 574,155 841,946 976,708 976,708 1,350,343

Fund Balance End of Year 841,946 976,708 1,037,146 1,350,343 1,557,501

270 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

CRIME CONTROL & PREVENTION DISTRICT FUND

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272 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Crime Control & Prevention District Fund

The Aransas Pass Crime Control and Prevention District (CCPD) was established in 2009 following a vote by the citizens that lived in San Patricio and Nueces County and portions of Aransas Pass, Texas. The purpose of this vote was to increase the sales tax revenue one-half of one percent making sales tax 8.25%. The law that authorizes the CCPD can be found under the Local Government Code Chapter 363, Crime Control and Prevention Districts. Today, the CCPD’s annual budget is just over $1.1 million.

The Purpose Behind Establishing the CCPD

The CCPD was established for the purpose of developing and financing all permissible projects prescribed by the Local Government Code. These projects are needed in order to help reduce the crime rate and provide for staff, training, and tools, all of which are needed in the City.

The General Fund typically funds the Police Department budget. However, the CCPD sales tax helps offset the police department budget, allowing General Fund dollars to be stretched even further.

The CCPD Board must adopt a budget each year at a meeting open to the public. Once the CCPD Board approves the budget, it is then presented to City Council for final approval.

273 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Crime Control & Prevention District Revenues

Sales Tax

Local sales and use tax is the sole source of revenues for the CCPD. The graph below shows the sales and use tax collected and the change for the past 10 years. The CCPD Board is expected to generate $1,150,000 in FY 2021.

Sales Tax Revenue - % Change 1,400,000 25.00%

1,200,000 20.00%

1,000,000 15.00%

800,000 10.00%

600,000 5.00%

400,000 0.00%

200,000 -5.00%

- -10.00% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Sales Tax Revenue % Change

274 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

Crime Control & Prevention District History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Revenues

Income - Miscellaneous - - - - -

Sales Tax 1,076,038 1,047,687 1,000,000 1,164,755 1,150,000

Interest Income 10,972 21,030 15,000 20,654 17,500

Total Revenues 1,087,009 1,068,716 1,015,000 1,185,409 1,167,500

Expenditures

Prof. Serv. - Audit 3,303 3,300 3,500 3,300 3,500

Professional Fees - Attorney / Legal - 1,040 500 - 250

Prof. Serv. - Other - - 100 - 100

Grant - Patrol Funding 225,000 260,000 260,000 260,000 260,000

Grant - SRO 95,000 96,725 190,000 190,000 190,000

Grant - General 430,000 300,000 300,000 403,865 300,000

Grant - General 1st Responders Stipend - - - - 175,000

Grant - Code Enforcement / Demolition - - 20,000 - 10,000

Grant - Patrol Vehicles - - 160,000 111,905 40,000

Grant - Equipment - - 5,000 - 15,000

Grant - E911 Upgrade 37,537 44,000 44,000 44,000 44,000

Grant - Public Awareness - 10,318 12,000 - 10,000

Grant - Fire 2,501 - 5,000 - 3,000

Grant - Building - - 180,000 2,700 100,000

Insurance - Other - 140 200 - 200

Personnel Expense - - - - -

Total Expenditures 793,341 715,523 1,180,300 1,015,770 1,151,050

275 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

History Current Adopted 2020 2018 2019 2020 Projected 2021 Actual Actual Budget Year End Budget

Net Change in Fund Balance 293,668 353,193 (165,300) 169,639 16,450

Fund Balance Beginning of Year 924,179 1,217,847 1,571,040 1,571,040 1,740,679

Fund Balance End of Year 1,217,847 1,571,040 1,405,740 1,740,679 1,757,129

276 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

POLICIES

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278 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET

BUDGET AMENDMENT POLICY

The purpose of this policy is to provide a process for making changes to the City of Aransas Pass Budget. This policy applies to all departments having funds appropriated in the annual budget ordinance.

Departments are responsible for monitoring their budgets and determining if a budget amendment is necessary. Funds must be available in the appropriate line item prior to purchasing of goods or services. Therefore, budget amendments must be fully processed before purchases are made.

When to initiate a budget amendment:

1. Funds need to be transferred from one line item to another line item within the department; 2. Department budget needs to increase or decrease in total; 3. A new capital project is established; 4. A capital project’s budget needs to be increased or decreased; 5. Additional revenues received that the department anticipates using to fund current operations.

Guidelines for completing a budget amendment:

1. Departments must use the Budget Amendment Form (Attached) 2. The “Explanation for Change” section on the form must also be filled out 3. The form should be signed by the department head and forwarded to the Finance Department 4. Finance Director will review the amendment request and forward it to the City Manager 5. The City Manager will either approve or deny the request 6. Budget Amendment requests that increase or decrease the department’s budget must be approved by Council.

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BUDGET POLICY

Fiscal Year October 1st through September 30th

1. The Finance Director shall begin preparing departmental budgetary worksheets in Mid-May. The worksheets shall include all line items for each departmental budget. They also shall include the line item amount for the current budget and a two year history for each line item from the previous two fiscal years. There also shall be a column for projected end of the year amount for each line item. This projected amount, which should be as accurate as possible, will assist the Finance Director with budget projections, including the anticipated General fund balance. Finally, this work sheet shall have a blank column for each line item so the department head can make his/her budgetary request for each line item. 2. During the month of June, the City Manager will schedule a budgetary public hearing. The purpose of this hearing is to provide an opportunity for citizens to provide input into the beginning of the budgetary process. This hearing can be held during a regularly scheduled Council meeting. During the hearing, the City Manager will briefly discuss the upcoming budgetary process. Additionally, the Manager will present to the Council the budgetary goals from the previous year. This session will provide the public with an opportunity to offer early input into the upcoming budget document. 3. Also in June, the City Manager will schedule a strategic planning session between the Mayor, Council and department heads. The purpose of this session is to give the Mayor and Council the opportunity to offer goals for the upcoming budget. The format should be as follows: • Department heads give individual presentations on the prioritized needs of their departments with supporting evidence for those needs. • At this session, and before prioritization, all of the citywide/departmental needs and goals are placed in a visible location. • The Mayor and Council prioritizes the needs as presented by the department heads. By doing so, the needs are converted to short-term and long-term goals for the year. It is anticipated that many of the goals will be incorporated into the budget, depending on the strength of the budget. • Throughout the upcoming fiscal year, the City Manager will report to the Council during a regular council meeting, the status of the prioritized goals. 4. Within a week or two of the strategic planning session, but no later than late June, the Finance Director and the City Manager, and if scheduling permits the Mayor (or designee) will be invited to attend as the elected official representative, shall meet with each department head separately and go over every line of the departmental budget. This is the opportunity for the department head to defend his/her budget requests. Preferably, there will be access to at least three computers at this meeting so the Department Head, the Finance Director and the

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City Manager will each have access to a computer and changes can be made immediately and in real time. 5. During the month of July, and during a regular Council meeting, the City Manager, with the assistance of staff, shall present an Operational Overview and Budget Preview. The Operational Overview restates the Aransas Pass guiding principles (i.e. economic development, employee excellence, public safety, etc.) and provides year-end departmental statistics. It also reviews the projects completed thus far during the current fiscal year and points out new initiatives. The Operational Overview gives a status report of the goals from the most recent strategic planning session (which ones were accomplished and which were not), financial trends in the community, plus an early preview of the proposed budget and capital improvement plan for the upcoming year, based on the guidelines from the strategic planning session. Finally, the Operational Overview will present other potential policy and program directions for the upcoming fiscal year. 6. Before the draft budget is prepared, the City Manager will obtain a report from the county, state and nation. This can be accomplished by obtaining sales tax and/or growth projections from these governmental entities. The City Manager also will obtain the unemployment rate for the three county area with a two year history. Local economic projections and numbers can be obtained from the Aransas Pass Chamber of Commerce. 7. A Council work session shall be held between the second regular meeting in July and the first regular meeting in August. During this work session, the City Manager, with the Assistance of the Finance Director will present a summary of projected available funding for the upcoming fiscal year along with proposed expenditures for the upcoming fiscal year. The Council shall be presented with Staff’s recommendation for funding, while pointing out major items for Council deliberation. This approach helps prevent the Council from getting bogged down in budgetary minutia such as paper and pens. It is important to be constantly monitoring the General Fund Balance during this preparation process and making certain it stays within City Policy, or is working toward the goal of taking the General Fund Balance up to the policy level. Based on consensus reached by the City Council, Staff will prepare a proposed budget and Capital Improvement Plan. 8. August 1st – A draft of the budget will be presented to the City Secretary. 9. During the first regular Council meeting in August, the Finance Director, with assistance from the City Manager, shall present a summary of the proposed budget and Capital Improvement Plan. Comparisons to the strategic planning session and the Council consensus reached during the work session shall be included. 10. A second public budget hearing is held. This hearing provides citizens an additional opportunity to comment on the budget. Notice of public hearing must be published by mid-September and no later than 10 days before the public hearing. The earliest the budget public hearing can be held is 10 days after the announcement

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publication and after the 15th day after the proposed budget is filed with the City Secretary. 11. September 1st – last day to provide notice of proposed tax rate by publication or mail. Noticed must be published on City’s website and must remain on the website until the City adopts its tax rate. 12. During the first meeting in September the City Council adopts the budget. 13. Tax rate public hearing – earliest is 7 days after the publication notice. If there is a need for a second hearing, it must be held at least three days before and no more than 14 days before the adoption of the tax rate. 14. During the Second Council meeting in September, the City Council adopts the tax rate. 15. Copies of the adopted budget and Capital Improvement Plan shall be on record and open to public review with the City Secretary, at the City Public Library and on the City webpage. 16. After adoption of the budget, the budget can be amended by ordinance to increase expenditures. However, additional appropriated funds will be made available to that department.

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CAPITAL IMPROVEMENT PLAN POLICY

The City of Aransas Pass will prepare, for the City Council’s annual adoption, a five year Capital Improvement Plan, which will detail each capital project, the estimated cost and funding source. The City will determine and use the most effective and efficient method for financing all new capital projects in accordance with its debt management policies.

Capital Improvement plans provide a vision for the residents of a community as to how a community plans to address aging infrastructure, plans for expansion and growth, as well as plans that will dictate Aransas Pass’ fiscal health in the coming decades.

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DEBT MANAGEMENT POLICY

1. The city will not use long-term debt for current operations 2. The City will adhere to the following when it finds it necessary to issue debt instruments: • Average weighted general obligation bond maturities will not exceed 20 years. • The term of any debt issuance will not exceed the useful life of the capital project, facility or equipment for which the borrowing is intended. • Debt service for all funds in any year will not exceed 25% of the total annual operations budgets across all other funds; • Interest earnings on debt service fund balances will be used to make debt service payments. 3. The City will comply with all federal requirements regarding arbitrage on debt issuances to avoid any penalties. 4. The City will consider opportunities to refund existing debt issuances if there are savings on the current principal and interest payments over the remaining life of the debt.

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FINANCE POLICY

Purpose: As is the case with any City that has been impacted by a major disaster, it is critical to take extraordinary steps to protect the budget and municipal finances. That is the purpose of this policy. Aransas Pass received a direct hit from Hurricane Harvey on August 25/26, 2017. With that natural disaster comes extraordinary expenses. This policy also calls for the implementation of several new and/or revised City administrative financial policies to help maintain Post-Harvey financial stability.

1. Pursue CDL or Tax note – This will help resolve potential cash flow problems created by Harvey expenses. 2. Debt Service - Each month the Finance Director will evaluate the General Fund and Utility Fund to see what monies can be comfortably made available to the debt service fund until the necessary amount for the upcoming debt service payments are in place. 3. Monitor expenses – During monthly financial reports submitted by the Finance Department we should be able to see if individual departmental requests are exceeding their budgeted allowance or not using the following formula: October Financial report: each department should not exceed 8.33% of their budgeted expenses November: 16.67% December: 25% January: 33.33% February: 41.67% March: 50% April: 58.33% May: 66.67% June: 75% July: 83.33% August: 91.67% September: 100% These monthly updates will be presented during regularly scheduled staff meeting. Any departmental monthly overages will result in a discussion between the department head and the City Manager. The OVERALL monthly expenditure level will be reported by the Finance Director to the City Council, as explained below. 4. Implement new and/or revised administrative financial policies • General Fund Balance policy – Minimum/maximum measurements • Purchasing policy – Already in place, but will make changes. • Investment policy – already in-place

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• General Budget Policy – sets in written policy – the budgetary process • Capital Improvement Policy • Debt Policy • Surplus Property Policy Any of the above policies now in place and previously approved by the Council will be reviewed. 5. Departmental Budget Reduction – All departments will reduce their budgets by a minimum of 10%. 6. Continue Hiring Freeze. • Generally speaking, no new hiring will be allowed. Or, when applicable, consider hiring a part-time person when a full-time person leaves employment with the city. Essential personnel – such as police and fire - will be considered on an individual basis. All new hires must be approved by the City Manager (not qualifications, just the monetary aspect). Essential personnel requests shall be submitted in writing to the City Manager with an explanation of why this position is considered essential. Essential personnel will be those whose elimination would create a health, safety or operational danger for the public or city staff. • Permitting and other City Fees – Under no circumstances can the City allow construction to occur without the necessary permits. However, during the Harvey recovery the permitting fees for construction projects have been enforced loosely – and understandably so. We want to prevent people from leaving Aransas Pass, so we have used this vehicle….to a limited degree…to encourage them to stay. A declining population after a major storm also will negatively impact our financial picture. However, as of this moment, Council has not taken official action to officially reduce or excuse permit fees. Beginning December 1, 2018, no waivers nor reductions in building fees will be permitted. 7. Travel Expense – All department are asked to evaluate travel expenses with the goal of reducing this line item. While it is understood that training/travel is essential to some departments for public safety and/or required licensing, travel not falling into these essential needs should be re-evaluated. 8. Not-for-Profit Reevaluations – Beginning with the FY19 Budget….City Not-for- Profit funding will be reevaluated and measured against budgetary needs and meeting the public purpose test. If possible, this consideration should also be given during the FY18 budget. 9. Events- reduce the cost of events and the non-discretionary fund in the budget. 10. Monthly Public Reports – Each month, beginning with the November 20th Council meeting – The Finance Director will report to the City Council, during a regular Council meeting - on the status of City Revenues and Expenses and how these measure against the budget projections.

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11. 6 Month review – In March review the status of revenue and expenditure projections. These projections will take into account budget cuts that were implemented or are planned. It will review the status of the most up-to-date expenditures and revenues. The review also will analyze the status of City hurricane recovery costs and reimbursements

Fund Balance Policy Purpose: The purpose of this policy is to establish a key element of the financial stability of the City of Aransas Pass by setting guidelines for the fund balance. Unassigned Fund Balance is an important measure of economic stability and it is essential that the City maintain adequate levels of unassigned fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, such as natural disasters and other similar circumstances. This policy will ensure the City maintains adequate fund balances in the operating fund with the capacity to:

1. Provide sufficient cash flow for daily financial needs. 2. Provide funds for unforeseen expenditures related to disasters. 3. Offset significant economic downturns or revenue shortfalls, and 4. Secure and maintain a high investment grade bond ratings.

Definition: Fund Balance – An accounting distinction is made between the portions of fund balance that are spendable and non-spendable. These are divided into five categories: 1. Non-spendable fund balance – this includes amounts that are not in spendable form or are required to be maintained intact. Examples are inventory and endowment. 2. 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. An example include grants. 3. Committed fund balance – includes amounts that can be used only for the specific purposes determined by a formal action by the Aransas Pass City Council. Commitments may be changed or lifted only by the 1. City Council. 4. Assigned Fund Balance – comprises amounts intended to be used by the City for specific purposes. Intent can be expressed by the City Council or by an official or officials to which the Council delegates the authority. Assigned Fund Balance represents the amount that is not restricted or committed. Such assignments cannot exceed the available fund balance in any fund. 5. Unassigned Fund Balance – the residual classification of the General Fund and

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includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose.

Fund Balance Policy

Committed Fund Balance City Council action, in the form of a resolution, is required to establish, modify or rescind a fund balance commitment. 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.

Assigned Fund Balance

The City Council has authorized the City Manager as the official authorized to assign the fund balance to a specific purpose as approved by this policy.

Target Unassigned Fund Balance

The City’s goal is to achieve and maintain an unassigned fund balance in the General fund equal to 40% of budgeted operating expenditures. In the event the fund balance is calculated to be less than the policy stipulates, the City shall plan to adjust expenditures to restore the balance.

Appropriation of Unassigned Fund Balance

To reduce the Unassigned Fund Balance below 40%, there must be Council approval. If a disaster causes significant reduction in city revenues, the fund balance could be reduced below 40% to provide funding to maintain city services at their pre-disaster levels. The fund balance may be used this way until revenues recover.

Reserve Mandate

There shall be maintained in the budget an annual 3% General Fund Reserve. This reserve is mandated by the City Charter and may be used on emergency or unexpected expenditures. It also can be used to prevent a reduction in the fund balance below 40%.

Replenishment of Fund Balance Reserves

If the unassigned fund balance falls below 40% or if it is anticipated that at the completion of any fiscal year, the projected fund balance will be less than the minimum requirement, the City Manager shall prepare and submit a plan to City Council to restore the required level. The plan shall detail the steps necessary for the replenishment of the fund balance

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as well as an estimated timeline for achieving such, not to exceed five years. In the event the fund balance is calculated to be less than 40%, the 3% reserve, as mandated by the City Charter, may be used to replenish the fund balance.

Accumulation of the Fund Balance

The unassigned fund balance may be allowed to accumulate above the 40% target to accommodate operating and unexpected capital expenses. It is not recommended that the unassigned fund accumulate above 50%.

Monitoring and Reporting

The Finance Director shall be responsible for monitoring and reporting the City’s Fund Balance and reserves. The City Manager is directed to make recommendations to the Council on the use of reserve funds both as an element of the annual operating budget submission and from time to time throughout the fiscal year as needs may arise.

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City of Aransas Pass, Texas INVESTMENT POLICY AND STRATEGY

I. INTRODUCTION It is the policy of the City of Aransas Pass that the administration of its funds and the investment of those funds shall be handled as its highest public trust. Investments shall be made in a manner which will provide the maximum security of principal while meeting the daily cash flow needs of the City and conforming to the Public Funds Investment Act (the " Act") Texas Government Code Chapter 2256. It is the intent of the City to be in complete compliance with local law and the Act.

The receipt of a market rate of return will be secondary to the requirements for safety and liquidity. The earnings from investment will be used in a manner that best serves the interests of the City.

The purpose of this Policy is to set specific investment policy and strategy guidelines. Direct specific investment parameters for the investment of public funds in Texas are found in the Act. The Public Funds Collateral Act, Chapter 2257, Texas Government Code, specifies collateral requirements for all public Texas funds deposits.

II. SCOPE This investment policy applies to all financial assets of the City and any new funds created unless specifically exempted by the City Council and this Policy.

Ill. OBJECTIVES It is the policy of the City that all funds shall be managed and invested with four primary objectives, listed in order of their priority: safety, liquidity, diversification and yield. Investments are to be chosen in a manner which promotes diversity. To match anticipated cash flow requirements the maximum weighted average maturity (WAM) of the overall portfolio may not exceed 6 months.

Safety The primary objective of the investment activity is the preservation of capital. Each investment transaction shall be conducted in a manner to avoid capital losses, whether from security defaults, safekeeping, or erosion of market value. Investments in high credit quality securities and decisions based on anticipated cash needs are primary factors in providing safety.

Liquidity The investment portfolio shall be structured to meet all expected obligations in a timely manner. This shall be achieved by matching investment maturities with forecasted cash flow liabilities and maintaining additional liquidity for unexpected liabilities.

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Diversification The portfolio shall be diversified by institution, market sector and maturity as much as possible.

Yield The benchmark for the commingled portfolio shall be the comparable period of 6 months U.S. Treasury Bill, designated for its comparability to the expected average cash flow pattern and the Policy maximum weighted average maturity (WAM) limit of 6months. The investment program shall seek to augment returns above this threshold consistent with risk limitations identified and the City's prudent investment strategy.

Cash management is the process of managing funds in order to insure maximum cash availability and reasonable yield on short-term investments. The City shall strive for a cash management program which includes timely collection of accounts receivable, vendor payments in accordance with invoice terms, and prudent investment of assets.

IV. INVESTMENT STRATEGY The City maintains one commingled portfolio for investment purposes which incorporates the specific uses and the unique characteristics of the funds in the portfolio. The investment strategy has as its primary objective assurance that anticipated liabilities are matched and adequate investment liquidity provided. The City shall pursue conservative portfolio management strategy. This may be accomplished by creating a laddered maturity structure with some extension for yield enhancement. The maximum maturity of any security will be 24 months and the maximum dollar weighted average maturity of 6 months or less will be calculated using the stated final maturity date of each security.

The investment strategy for debt service funds shall have as its primary objective the timely payment of debt service obligations. Successive debt service dates will be fully funded before any investment extensions are made.

V. DELEGATION OF RESPONSIBILITY No unauthorized person may engage in an investment transaction and all transactions shall be executed as provided under the terms of this Policy and its supporting procedures.

Investment Officer(s) The City Manager and Director of Finance will be designated as Investment Officers, by governing body resolution, responsible for investment decisions and activities. The Investment Officer(s) are responsible for creating and maintaining the portfolio in accordance with this Policy, providing timely quarterly reporting to the Council, and establishing supporting procedures. The City may further contract with an SEC registered investment adviser for non-discretionary management of the portfolio.

All investment officers shall attend at least ten (10) hours of training approved by the City Council

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within twelve months of designation as investment officer and shall attend eight (8) hours of training every two successive fiscal years.

Investment Officers shall refrain from personal and business activity that could conflict with proper execution of the investment program or which could impair their ability to make impartial investment decisions. An Investment Officer who has a personal business relationship within two levels of blood or marriage with an organization seeking to sell an investment to the City shall file a statement disclosing that relationship to the City Council and the Texas Ethics Commission.

City Council Responsibilities The City Council holds ultimate fiduciary responsibility for the portfolio. It will designate investment officer(s), receive and review quarterly reporting, approve and provide for investment officer training, approve broker/ dealers, and review and adopt the Investment Policy and Strategy at least annually.

VI. PRUDENCE AND CONTROLS The standard of prudence to be applied to all City investments shall be the "prudent person" rule, which states:

"Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the 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 under the City's control, over which the officer has responsibility rather than a consideration as to the prudence of a single investment.

The Investment Officer, acting in accordance with written procedures and exercising due diligence, shall be responsible but not liable for a specific security's credit risk or market price changes, provided that these deviations are reported immediately and that appropriate action is taken to control adverse developments.

Internal Controls The Investment Officer is responsible for establishing and maintaining internal controls to reasonably assure that assets are protected from loss, theft, or misuse. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived, and, the valuation of costs and benefits requires ongoing estimates and judgments by management.

The internal controls shall address the following points at a minimum:

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Control of collusion, Separation of transaction authority from accounting and record keeping, Custodial safekeeping, Clear delegation of authority, Written confirmation for all transactions, and Review, maintenance and monitoring of security procedures both manual and automated.

Annually the Investment Officer shall perform an internal compliance audit to assure compliance with requirements of this Policy and the Act. Annually, the City's external auditor shall review the quarterly reports.

Cash Flow Forecasting Cash flow forecasting is designed to protect and sustain cash flow requirements of the City. The Investment Officer will analyze and maintain a cash flow plan to monitor and forecast cash positions for investment purposes.

Competitive Bidding All security transactions will be made on documented competitive bid basis to assure the City is receiving good market rates. When-issued US agency securities should be compared to other securities available in the secondary market to determine competitiveness.

Monitoring Credit Ratings The Investment Officer shall monitor, on no less than a monthly basis, the credit rating on all authorized investments in the portfolio which require credit ratings based upon independent information from a nationally recognized rating agency. If any security falls below the minimum rating required by Policy, the

Investment Officer shall notify the City Council of the loss of rating, and liquidate the investment within two days.

Monitoring FDIC Status for Mergers and Acquisitions The Investment Officer shall monitor, on no less than a weekly basis, the status and ownership of all banks issuing brokered CD securities owned by the City based upon information from the FDIC (fdic.gov). If any bank has been acquired or merged with another bank in which brokered CDs are owned by the City, the Investment Officer or Adviser shall immediately liquidate any brokered CD which places the City above the FDIC insurance level.

VII. AUTHORIZED INVESTMENTS Assets of the City may be invested only in the following instruments as further defined by the Act. If changes are made to the Act they will not be authorized until this Policy is modified and adopted by the City Council. All investment transactions will be made on a competitive basis.

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A. Obligations of the United States Government, its agencies and instrumentalities with a maximum stated maturity of 2 year excluding mortgage backed securities

B. Fully insured or collateralized depository certificates of deposit from banks in Texas, with a maximum maturity of 2 year insured by the Federal Deposit Insurance Corporation, or its successor, or collateralized in accordance with this Policy.

C. AAA-rated, Texas Local Government Investment Pools which strive to maintain a $1 net asset value (NAV) as defined by the Act and authorized by resolution of the City Council.

D. AAA-rated, SEC registered money market mutual funds striving to maintain a $1 net asset value.

E. FDIC insured, brokered certificates of deposit securities from a bank in any US state, delivered versus payment to the City's safekeeping agent, not to exceed 12 months maturity. Before purchase, the Investment Officer must verify the FDIC status of the bank on www.f dic.gov to assure that the bank is FDIC insured .

F. FDIC insured or collateralized interest bearing and money market accounts from any FDIC insured bank in Texas.

Delivery versus Payment All securities shall be purchased on a delivery versus payment (DVP) settlement basis. Funds shall not be released until receipt of the security by the City's approved custodian. The custodian shall provide the City with proof of ownership or claim by an original document delivered to the City.

VIII. REPORTING Quarterly Reporting The Investment Officers shall submit a signed quarterly investment report to the governing body in accordance with the Act giving detail information on each portfolio and bank position and summary information to permit an informed outside reader to evaluate the performance of the investment program. The report will include the following at a minimum:

• A full description of each individual security or bank/pool position held at the end of the reporting period including the amortized book and market value at the beginning and end of the period, • Unrealized gains or losses (book value minus market value), • Overall change in market value during the period as a measure of volatility, • Weighted average yield of the portfolio and its applicable benchmarks, Earnings for the period, • Allocation analysis of the total portfolio by market sector and

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maturity, and • Statement of compliance of the investment portfolio with the Act and the Investment Policy signed by the Investment Officer(s).

Market prices for the calculation of market value will be obtained from independent sources.

IX. FINANCIAL COUNTER-PARTIES Depository At least every five years, a banking services depository shall be selected through a competitive request for proposal or bid process in accordance with the Texas Government Code 105. In selecting a depository, the services, cost of services, credit worthiness, earnings potential, and collateralization by the institutions shall be considered. If securities require safekeeping, the RFP/bid will request information on safekeeping services. The depository contract will provide for collateral if balances exceed the FDIC insurance balance per tax identification number.

All time and demand deposits in any depository of the City shall be insured or collateralized at all times in accordance with this Policy.

Other banking institutions, from which the City may purchase certificates of deposit or place interest bearing accounts, will also be designated as a depository for depository/collateral purposes. All depositories will execute a depository agreement and have the Bank's Board or Bank Loan Committee pass a resolution approving the agreement if collateral is required.

Security Broker/Dealers All pools, financial institutions, and broker/dealers who desire to transact business with the City must supply the following documents to the Investments Officer(s).

• (if brokers) Financial Industry Regulatory Authority (FINRA) certification and CRD # • (if brokers) proof of Texas State Securities registration • policy review certification

Each pool/bank/broker must be provided a copy of the City's current Investment Policy and certify to a review of the Policy stating that the firm has controls in place to assure only Policy approved investments will be sold to the City.

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A list of qualified broker/dealers will be reviewed at least annually by the City Council. In order to perfect the DVP process the banking services depository, or its brokerage subsidiary, will not be used as a broker.

XI. COLLATERAL Time and Demand Deposits Pledged Collateral All bank time and demand deposits shall be collateralized above the FDIC coverage by pledged collateral. In order to anticipate market changes and provide a level of security for all funds, collateral will be maintained and monitored by the pledging depository at 102% of market value of principal and accrued interest on the deposit s. The bank shall monitor and maintain the margins on a daily basis.

Collateral pledged to secure deposits shall be held by an independent financial institution outside the holding company of the depository. The collateral agreement with the depository shall be approved by resolution of the Bank Board or Bank Loan Committee. The Custodian shall provide a monthly report of collateral directly to the City.

All collateral shall be subject to inspection and audit by the City or its independent auditors.

Authorized Collateral Only the following securities are authorized as collateral for time and demand deposits or repurchase agreements:

A. FDIC insurance coverage. B. Obligations of the United States, its agencies or instrumentalities, or evidence of indebtedness of the United States guaranteed as to principal and interest including MBS and CMO which pass the bank test. C. Obligations of any US state or of a county, City or other political subdivision of any state having been rated as investment grade (investment rating no less than "A" or its equivalent) by two nationally recognized rating agencies. D. Letter of Credit from the FHLB.

XI. SAFEKEEPING All purchased securities are to be cleared to the City's safekeeping agent on a delivery versus payment (DVP) basis. All safekeeping arrangements shall be approved by the Investment Officer and an agreement of the terms executed in writing. The independent third party custodian shall be required to issue safekeeping receipts to the City listing each specific security, rate, description, maturity, cusip number, and other pertinent information.

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XII. INVESTMENT POLICY ADOPTION

The City's Investment Policy shall be reviewed and adopted by resolution of the City Council no less than annually. Any changes made to the Policy must be noted in the adopting resolution.

City of Aransas Pass Purchasing Guidelines This policy establishes guidelines regulating the degree of formality to be followed in the purchase or lease of goods and services, depending on the costs of the items to be purchased. The dividing of purchases or lease payments into smaller order/payments to avoid these requirements is prohibited. Each Department Head is responsible for ensuring that proper procurement procedures are followed. This section of the policy lists general purchasing guidelines. Subsequent sections go into extensive detail with purchasing standards for the City of Aransas Pass. GENERAL GUIDELINES A. Local purchases It is the desire of the City to purchase or lease from local vendors whenever possible. Consequently, special efforts should be taken to ensure that local vendors are included in the competitive bid process without excluding the possibility of better pricing through non- local vendors. B. Sales Tax The City is exempt from paying Sales Tax C. Personal Purchases City employees are strictly prohibited from using their position or the City's name to purchase items for services for personal use. D. All agreements entered into by the City shall allow for a 30 day termination, unless the City Council specifies other termination agreements. E. All receipts must be accompanied by a requisition form. These forms are available in the Finance Department. F. The PO requisition form should be used when requesting a PO. This allows the request to be approved prior to the issuance of the PO and not at the time of the payment request. G. Please turn in receipts promptly. Failure to do so could result in late charges to the City and restrictions on purchasing. H. All invoices that are turned in by Wednesday at 12 noon will be processed for payment by the Friday of that week. If you need an invoice to be paid immediately, please inform someone in the Finance Department so the payment can be expedited. I. All City Departments are encouraged to use Historically Underutilized Businesses (HUB). The HUB promotes full and equal procurement opportunities for small,

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minority and women owned businesses. This is a State of Texas recognized program.

PURCHASING GUIDELINES

A. Small Purchase Procedures - $2,500 or less Department Heads or their designees are authorized to purchase directly from vendors for any expenditure in the amount of $2,500 or less. Price comparisons should be made on a routine basis to ensure the best value is obtained in each purchase. Department Heads may place restrictions on the designee's authority to purchase items. B. Informal Purchase Procedures - $2,501 to $25,000 Department Heads, or their designees, must obtain three or more quotations for the goods or services required. In common commodity purchases (off the shelf items), documentation of price checks such as webpage printouts or copies of current catalog pages showing current pricing may be used to document the purchase decision. The Department Head will approve the purchase order, awarding the purchase to the lowest and/or best bidder. If it is decided to award the purchase to the a vendor that is not submitting the lowest bid, a letter or e-mail shall be submitted to the City Manager explaining the reason for the decision. The Department head shall maintain a copy of the correspondence for his/her file. Under no circumstances shall the purchase of goods or services be divided into multiples in order to avoid the maximum limit of $25,000.

C. Formal Bids - over $25,000 Department Heads anticipating the purchase of goods or services exceeding $25,000 shall prepare specifications based upon standards appropriate to meet the City's needs and following the formal bid process.

(1) Whenever a Department Head determines that they must purchase goods or services from a "sole source vendor" the Department Head shall document why only one company or individual is capable of providing the goods or services required. The documentation shall be attached to the purchase order. The City Manager must approve all sole source purchases over $25,000. (2) The award will normally be made to the lowest and best bidder meeting specifications. However, there may be instances when accepting the low bid is not in the best interest of the City. When such a situation arises, the Department Head shall thoroughly

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document the reasons why the low bidder should be disqualified or not selected. This document, which may be an e-mail, shall be submitted to the City Council and the City Manager, with a copy kept in the departmental files. The City reserves the right to select a vendor based upon past service and experience with the vendor. (3) Pursuant to Section 252.043(c) of the Texas Local Government Code, a municipality must indicate in the bid specifications and requirements that the contract may be awarded either to the lowest responsible bidder or the bidder who provides goods or services at the best value for the municipal lit y. The following language shall be added when preparing a Request for Bid or Proposal: The contract may be awarded either to the lowest responsible bidder or the bidder who provides the goods and services at the best value for the City. In determining the best value, the municipality may consider: a. The Purchase Price; b. The reputation of the bidder and the bidder's goods or services; c. The quality of the bidder's goods or services; d. The extent to which the goods or services meet the municipality's needs; e. The bidders past relationship with the municipality; f. The impact on the ability of the municipality to comply with laws and rules relating to contracting with historically underutilized businesses and nonprofit organizations employing persons with disabilities; The total long-term cost to the City to acquire the bidder's goods or services; and g. Any relevant criteria specifically listed in the request for bids or proposals.

(4) Formal Bid Process a. Obtain permission from the City Council to request bids, RFP's or RFQ's. b. The Department will prepare and make available to qualified vendors a Request For Proposal (RFP). c. The Department will prepare an RFP Notice for submittal to the City Secretary and such RFP notice shall be published in the local newspaper of record. Additionally, it shall be published on the City's webpage d. All RFP's shall clearly indicate that the City of Aransas Pass reserves the right to accept or reject any and all bids when it is determined that it is in the best interest of the City to do so. e. All bids being submitted by the vendor shall be sealed and filed with the City Secretary at or prior to the deadline stated in the notice. Bids not meeting this requirement shall be disqualified. The City Secretary shall not disclose any information about any bids received prior to the closing date and time for receipt of the bids. f. All bids shall be opened at the specified time and date stated in the RFP, and shall be

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publicly read by the City Secretary or a designee. Any bids arriving after the designated bid opening date and time shall be time-stamped and the bid will remain unopened. Late arriving bids will not be tabulated or considered. g. The Department from which the RFP was issued shall have a representative attend the bid opening to witness and record the bids as they are opened and read. The representative may be an engineer or other professional involved with the RFP process. h. The City Secretary shall prepare a written tabulation of all bids. The Department Head shall submit a written recommendation to the City Manager for the award of the bid. When appropriate, it may be necessary to also obtain a written recommendation from professionals such as engineers. The City Manager shall make a recommendation to the City Council for any acceptance of bids from this process.

(5) No Response Bids In the event there is no response to the RFP, the Department Head may take either of the following actions after documenting the lack of responsive bids with a memo to the City Manager; and upon his/her approval: a. Initiate a new formal bidding process with the same or revised specifications b. Utilize a Cooperative Procurement Program (see below) If any of these actions result in locating an acceptable bid or proposal, the Department Head shall then make a recommendation to the City Manager and City Council, who shall make the final decision. (6) Emergency Purchases The bid procedures outlined in this policy may be waived under emergency conditions when the department operations would be severely hampered.

a. When the need for an emergency purchase occurs, the Department Head shall notify the City Manager who will give verbal approval of the transaction if warranted. The Department will submit a written explanation to the City Manager explaining the reasons for the emergency purchase with copies to the Finance Director. The department will prepare the purchase order as soon as operations permit. b. The City Manager is authorized to order emergency purchases up to a limit of $50,000. Any emergency purchases exceeding that amount will require the verbal consent of the Mayor.

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(7) Cooperative Procurement Programs Department Heads are encouraged to use cooperative purchasing programs sponsored by the State of Texas. Cooperative purchasing can prove financially advantageous to the City. Purchases made through these programs must have met the requirements of competitive bidding and require the approval of the Department Head and the City Manager. Department Heads are encouraged to check with the State regarding Cooperative Procurement contracts that are in effect. Departments also are encouraged to purchase items from State and Federal surplus property units. Other national purchasing cooperatives, such as Buy Board, that meet the spirit and intent of this policy may be considered.

(8) Professional Services Normal competitive procedures cannot be utilized in securing professional services such as Attorneys, engineers, Certified Public Accountants, Planners and other professional people who, in keeping with the standards of their discipline, will not enter into a competitive bidding process

(a) A Request For Qualifications (RFQ) can be prepared in much the same way as RFP specifications including requirements and minimum standards for the services to be provided. Following the submittal of the RFQ's meeting all requirements, all RFQ's shall be reviewed by an Ad Hoc Committee set-up by the Department Head. The City Manager shall be a member of this committee. The Department Head shall prepare an evaluation and scoring sheet for committee members to use in the evaluation of all RF Q's. It shall be the responsibility of the Committee to reach a majority consensus about which RFQ to recommend to the City Manager and City Council for approval. It shall be the responsibility of the Department Head to submit all evaluation sheets with the committee's final decision to the City Secretary for record-keeping purposes. (b) A contract shall be negotiated with the professional selected by the Ad Hoc committee. The contract shall be approved by the City Council.

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GLOSSARY

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ACCOUNT NUMBER An Account number is a line item code defining appropriation.

ACCRUAL ACCOUNTING Accrual accounting is a basis of accounting in which revenues are recognized in the accounting period in which they are earned, and expenses are recognized in the period in which they occur.

ACCRUAL BASIS Accrual basis is a method of accounting that recognizes revenue when earned, rather than when collected and expenses are recognized when incurred rather than when paid.

AD VALOREM TAX Also known as the PROPERTY TAX, the ad valorem tax is payable at a rate per $100 of taxable property value. The City Council sets the ad valorem tax rate every year as part of the budget process. A portion of the tax funds General Fund operations. The remaining portion funds General Obligation Debt Service.

AMENDED BUDGET Amended budget, as used throughout the budget document, represents the original adopted budget plus any amendments passed by the City Council as of September 30 each year. This figure does not include prior year encumbrances or re-appropriations.

APPROPRIATION Appropriation is the legal device by which the City Council authorizes the spending of City funds for specific purposes. Appropriations are usually limited in the amount and timeframe for expenditure.

APPROVED BUDGET Approved budget, as used in fund summaries and department and program summaries within the budget document, represents the budget as originally adopted by the City Council.

ASSESSED VALUATION A government sets a valuation upon real estate or other property as a basis for levying taxes. An assessed valuation represents the appraised valuation less any exemptions.

BAD DEBT The U.S. Comptroller of the Currency, Administrator of National Banks defines a bad debt as an unsecured debt for which interest or payment is past due and unpaid for six months

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(and which is not in process of collection). Some businesses set aside a reserve on their books to offset losses from bad debts.

BALANCED BUDGET A balanced budget is a budget in which planned expenditures can be met by current income from taxation and other central government receipts.

BASIS OF ACCOUNTING Basis of Accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial records of the City, regardless of the measurement focus applied. Accounting records for governmental fund types are maintained on a modified accrual basis, with revenue being recorded when available and measurable, and expenditures being recorded when services or goods are received and the liabilities are incurred.

BASIS OF BUDGETING (See also MODIFIED ACCRUAL) The City’s basis for budgeting is the modified accrual basis for governmental funds, including the General Fund. Budgeting for proprietary funds, which includes enterprise and internal service funds, is essentially on the full accrual basis. Encumbrances are recognized by both governmental and proprietary funds since encumbrances represent a commitment of funding for goods and services.

BEGINNING BALANCE The beginning balance is the residual non-restricted funds brought forward from the previous fiscal year (ending balance).

BONDS Bonds are debt instruments that require repayment of a specified principal amount on a certain date (maturity date), together with interest at a stated rate or formula for determining the interest rate.

BOND DEBT Bond debt is that portion of indebtedness represented by outstanding bonds.

BUDGET AMENDMENT A Budget amendment is a revision of the adopted budget that, when approved, replaces the original provision and increases or decreases the budget appropriation.

BUDGET CALENDAR The budget calendar is the schedule of key dates that a government follows in preparation

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and adoption of the budget. B BUDGET ORDINANCE The budget ordinance refers to the schedule of key dates that a government follows in preparation and adoption of the budget.

BUDGET PERIOD The period for which a budget is approved or a budget ordinance is adopted. It is known as the budget period, normally coincides with the fiscal year.

BUDGET TRANSFER A budget transfer is a procedure utilized by City Departments to revise budget appropriations within the departmental operating budget accounts.

BUDGETARY CONTROL Budgetary control is the management of a government or enterprise in accordance with an approved budget for the purpose of keeping spending within available appropriations and available revenues.

BUDGETARY EXPENDITURES Budgetary expenditures are decreases in net assets. In contrast to conventional expenditures, budgetary expenditures do not include amounts represented by non- current liabilities.

BUDGET A budget is a plan of financial operation embodying an estimate of proposed expenditures and the means of financing them.

CAPITAL BUDGET The capital budget is a plan of proposed capital outlays and the means of financing them. The annual capital budget is the primary means by which most of the acquisition and construction activities for facilities and major improvements of a government are controlled.

CAPITAL EXPENDITURES Capital expenditures are funds used to acquire or improve long-term assets.

CAPITAL OUTLAY Capital outlay is an item costing more than $5,000 and having a useful life of more than one year.

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CERTIFICATES OF OBLIGATION Certificates of obligation are used to obtain quick financing. The full faith and credit of the City secure them. Under the State Act, the intent to issue certificates must be published in the local newspaper 14 days In advance. Voter approval is not required unless 5% of the qualified voters sign a petition and file it with the City Clerk. Certificates can be used for real property purchase and construction. 9 COMMERCIAL PAPER Commercial paper refers to short-term, unsecured promissory notes, usually due within 30-45 days. Generally, the notes are backed by a line of credit with a bank.

COMMODITIES Commodities are consumable goods such as office supplies, small tools, and fuel, which are used by the City.

CONTRACTUAL OBLIGATION A contractual obligation is a short-term debt instrument which does not require voter authorization, used to finance the purchase of items, such as equipment and vehicles.

COST Cost is the amount of money or other consideration exchanged for property, services, or an expense.

CURRENT The term "current" designates the present fiscal period, as opposed to past or future periods. It usually means items likely to be used up or converted into cash within one year.

DEBT SERVICE Debt service is the amount of money required for interest and principal payments on an outstanding debt in any given year.

DEBT SERVICE FUND The debt service fund—also called a SINKING FUND—is a fund established to account for the accumulation of resources for the payment of principal and interest on long term debt.

DEFICIT A deficit is 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

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period.

ENCUMBRANCE Encumbrances include obligations in the form of requisitions, purchase orders, contracts, or other commitments that are chargeable to an appropriation and for which a part of the appropriation is reserved. They cease to be encumbrances when paid or actual liability is set up, at which point they become expenditures. GET 7/31/19 ENDING BALANCE The dollars remaining after current expenditures for operations and debt service are subtracted from the sum of the beginning fund balance and current resources. Portions of the fund balance may be reserved for various purposes, such as contingencies or encumbrances.

ENTERPRISE FUND An enterprise fund is established to provide accountability for operations which: (a) finance and operate in a manner similar to private business enterprises whose governing body's intent is for the costs (expenses, including depreciation) of providing goods and 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, and accountability of other purposes. Examples of enterprise funds are those for the Water Fund and Aquatic Center.

EXPENDITURES Expenditures are decreases in net financial resources. They include current operating expenses that require the current or future use of net current assets, debt service, and capital outlay.

EXPENSES Expenses are decreases in net total assets. They represent the total cost of operations during a period, regardless of the timing of related expenditures.

FEES Fees are charges for services.

FIXED ASSETS Fixed assets are of long-term character and are intended to continue to be held or used. Examples are land, buildings, and improvements such as machinery and equipment.

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FIDUCIARY FUND A fiduciary fund is a trust and agency funds used to account for assets held by a local government in a trustee capacity or as an agent for individuals, private organizations, other governmental units, or other funds.

FISCAL YEAR The accounting period for which an organization’s budget is termed the fiscal year. The fiscal year for the City of Kerrville runs from October 1 to September 30 of the following year.

FUND A fund is a fiscal and accounting entity with a self-balancing set of accounts. It records cash and other financial resources, all related liabilities, residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

FUND BALANCE Fund balance refers to the balance of net financial resources that are spendable or available. Portions of the fund balance may be reserved for various purposes, such as contingencies or encumbrances.

FUNDING SOURCE A funding source is the specifically identified dollars allocated to meet budgeted requirements.

GENERAL FUND The General Fund is used to account for all financial resources except those required to be accounted for in another fund. Examples of General Fund departments include Parks and Recreation Department, Fire Department, Library, Municipal Court, and Police Department.

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP) GAAP are the uniform minimum standards of, and guidelines to, financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompass the conventions, rules, and procedures necessary to define the accepted accounting practices at a particular time. They include both broad guidelines of general application and detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. OSED BUDGET 7/31/19

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GENERAL OBLIGATION BONDS (GO BONDS) General Obligation Bonds are bonds that are secured by the full faith and credit of the issuer. GO bonds issued by local units of government are secured by a pledge of the issuer’s ad valorem taxing power. They are usually issued to pay for general capital improvements such as parks and streets.

GOVERNMENTAL ACCOUNTING Governmental accounting is the composite activity of analyzing, recording, summarizing, reporting and interpreting the financial transactions of government.

GOVERNMENTAL ACCOUNTING STANDARD BOARD (GASB) GASB is the governing body that sets accounting standards specifically for governmental entities at the State and Local level.

GOVERNMENTAL FINANCE OFFICERS ASSOCIATION (GFOA) GFOA is a professional association of state/provincial and local finance officers in the United States and Canada dedicated to the sound management of government financial resources.

GOVERNMENTAL FUNDS Governmental funds are generally used to account for tax-supported activities. There are five different types of governmental funds: the general funds, special revenue funds, debt service funds, capital projects funds, and permanent funds.

GRANT A grant is a contribution by one government unit or funding source to another unit. The contribution is usually made to aid in a specified function (for example, education), but it is sometimes also for general purposes.

INVESTMENTS Investments are securities and real estate held for production of revenue in the form of interest, dividend, rentals or lease payments. The term does not include fixed assets used in governmental operations.

LEVY To levy means to impose taxes, special assessments of service charges for the support of governmental activities.

LINE-ITEM BUDGET A line item budget refers to a budget format in which departmental outlays are grouped

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according to the items that will be purchased with one item or group of items on each line.

MISSION The reason or purpose for the organizational unit’s existence is called its mission.

MODIFIED ACCRUAL City of Aransas Pass governmental funds are budgeted using the modified accrual basis, with revenues recognized when they become measurable. Revenue is "measurable" when the can be reasonably determined. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred and is expected to be liquidated within 60 days.

NON-RECURRING REVENUE Non-recurring revenue is a one-time windfall that is budgeted only for one fiscal year.

NOTE A note is a written, short-term promise of the issuer to repay a specified principal amount on a certain date, together with interest at a stated rate, or according to a stated formula, payable from a defined source of anticipated revenue. Notes usually mature in fewer than five years.

OBJECT CLASS/CATEGORY Object class is the expenditure classification according to the types of items purchased or services obtained; for example, personnel service, materials, supplies and equipment.

ORDINANCE An ordinance is a formal legislative enactment by the City Council. 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 City.

PROPRIETARY FUND A proprietary fund is an account that shows actual financial position and operations, such as actual assets, liabilities, reserves, fund balances, revenues, and expenditures, as distinguished from budgetary accounts.

REFUNDING Refunding is when an issuer refinances an outstanding bond issue by issuing new bonds. There are two major reasons for refunding: to reduce the issuer's interest costs, or to remove a burdensome or restrictive covenant imposed by the terms of the bonds being refinanced. The proceeds of the new bonds are either deposited in escrow to pay the

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debt service on the outstanding obligations when due, or they are used to immediately retire the outstanding obligations. The new obligations are referred to as the "refunding bonds" and the outstanding obligations being refinanced are referred to as the "refunded bonds" or the "prior issue."

RESERVE Reserve is an account in which a portion of the fund balance is segregated for a future use and which is, therefore, not available for further appropriation or expenditure. A reserve for inventories equal in amount to the inventory of supplies on the balance sheet of the general fund is an example of such a reserve.

RESOLUTION A resolution is a special or temporary order of a legislative body requiring less legal formality than an ordinance or statute.

REVENUE BONDS Revenue bonds are bonds payable from a specific source of revenue, which do not pledge the full faith and credit of the issuer. Revenue bonds are payable from identified sources of revenue and do not affect the ad valorem tax rate. Pledged revenues may be derived from operation of the financed project, grants, excise, or other specified non-ad valorem tax.

REVENUE Revenue is (1) an increase in a governmental fund net current assets from other than expenditure refunds and residual equity or (2) an increase in a proprietary fund net total assets from other than expense refunds, capital contributions, and residual equity transfers.

SINKING FUND A sinking fund is an account into which a debt issuer makes periodic deposits to ensure the timely availability of sufficient monies for the payment of debt service requirements. The revenue to be deposited into the sinking fund and payments from the fund are determined by the terms of the bond contract.

STRUCTURAL BALANCE Structural balance is the state at which current revenue sufficiently supports current expenditures.

TAXES Taxes are compulsory charges levied by a government for the purpose of financing

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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, or charges for services rendered, such as sewer service.

TAX RATE The tax rate is the amount of tax levied for each $100 of assessed valuation.

TAX RATE LIMIT The term “tax rate limit” refers to the maximum tax rate at which a governmental may levy tax. Overall tax rate limits usually restrict levies for all purposes and of all governments, state or local, having jurisdiction in a given area. The State of Texas has a maximum Ad Valorem limit of $2.50 per $100 of assess property value. Taxes are levied via a Tax Levy Ordinance.

TRANSFERS Transfers are the authorized exchanges of cash or other resources between funds.

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