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FY 2021 Operating Budget

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FY 2021 Operating Budget 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. i CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET ii CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET TABLE OF CONTENTS iii CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET iv CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET 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 v CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET 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 vi CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET 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 vii CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET viii CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET 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. 1 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET 2 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET CITY MANAGER’S MESSAGE 3 CITY OF ARANSAS PASS, TEXAS FY 2020-2021 ANNUAL BUDGET 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.
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