CITY OF KILGORE

Budget FY 2020-2021

KILGORE CITY of STARS | Mission, Vision, & Values | Council Members |

ANNUAL OPERATING BUDGET FOR FISCAL YEAR 2020‐2021

City Council Record Vote The members of the governing body voted on the adoption of the budget as follows:

FOR: Mayor R. E. Spradlin, Mayor Pro-Tem Harvey McClendon III, Merlyn Holmes, Mike Sechrist, Victor A. Boyd

AGAINST: None PRESENT and not voting: None ABSENT: None

Tax Rates Proposed FY 2020-21 Adopted FY 2019-20 Property Tax Rate/$100 0.539000 0.539000 No New Revenue Tax rate/$100 0.590572 0.534730 Effective M&O Tax Rate/$100 0.509118 0.509118 Voter Approval Tax Rate/$100 0.608301 0.543826 Debt Rate/$100 0.029882 0.029882

The total amount of municipal debt obligation secured by property taxes for the City of Kilgore is $3,425,000.

Officers and Officials

Elected

R.E. Spradlin, III- Mayor

Merlyn Holmes- Council Member, Place 1

Harvey McClendon- Mayor Pro-Team; Council Member, Place 2

Mike Sechrist- Council Member, Place 3

Victor Boyd- Council Member, Place 4

Appointed

Joshua C. Selleck - City Manager

Robert G. Schleier, Jr. - City Attorney

Glenn D. Phillips - Municipal Court Judge

MISSION

The City organization is dedicated to providing an efficient, effective and responsive government for the citizens of Kilgore consistent with our city’s history, culture and unique character. We recognize our citizens as our greatest assets, and we will serve as role models by anticipating and providing for the needs of the community through quality service, innovation and leadership for today and in the future.

VISION

Kilgore strives to be a safe, clean, well‐maintained and affordable City. We value strong moral character, solid family values, and our rich history and culture. We embrace innovation, well‐ planned growth, and a strong business‐friendly environment in which opportunities abound for employment, education, culture, entertainment, tourism, and recreational enjoyment.

VALUES

|Accountable |

|Fiscally Responsible|

| Friendly|

| Trustworthy |

|Communicative|

|Proactive|

|Innovative|

|Visionary|

|Family Oriented|

COUNCIL MEMBERS

MAYOR COUNCIL MEMBER, PLACE 1 MAYOR PRO TEAM, PLACE 2 R.E. Spradlin, III Merlyn Holmes Harvey McClendon

COUNCIL MEMBER, PLACE 3 COUNCIL MEMBER, PLACE 4 Mike Sechrist Victor Boyd

Josh Selleck City Manager

Landon Ward Finance Director

Clayton Evers Public Works Director

TABLE OF CONTENTS

1. Community Profile pg.10

2. Budget Message pg.22

. Budget Process pg.26 . Budget Calendar pg.28

3. Personnel pg.30

4. Management & Budget Policies pg.40

. Investment Policy & Strategies pg.55 . Capitalization Policy pg.63

5. Budget Summary All Funds pg.69

. Operating Budget pg.70 . General Fund pg.78 . Capital General Projects Fund pg.111 . Water Utilities Fund pg.114 . Water Utilities Project Fund pg.129 . Golf Fund pg.131 . Debt Service pg.141 . Other Government Funds pg.156

6. Kilgore Economic Development Corporation (KEDC) pg.174

7. Adopting Documents pg.179

8. Glossary pg.186

KILGORE The City of Stars

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COMMUNITY PROFILE

City of Kilgore, TX

COMMUNITY PROFILE

The City of Kilgore is a "council-manager military law and presides over the meetings form of city government.” Pursuant to its of the city council and performs other duties provisions and subject only to the limitations consistent with the office as may be imposed imposed by the constitution and general laws upon him by the City Charter, ordinances, and of the State of Texas and by the charter, all resolutions passed by the City Council. He powers of the city are vested in the elective may participate in the discussion of all city council. The City Council which is made matters coming before the council and shall up of a mayor and four council members be entitled to a vote as a member thereof. enacts local legislation, adopts budgets, determines policies, and appoints the city The City Manager serves as chief manager who shall execute the laws and administrative and executive officer of the administer the government of the city. All City and assures that all laws and city powers of the city are exercised in the ordinances are enforced; and does related manner prescribed by the charter, or if the work as required. The City Manager appoints manner is not prescribed, then in a manner as and removes all heads of departments and all prescribed by an ordinance adopted by the subordinate officers and employees of the City Council. The City operates as a home-rule City, except as otherwise provided in the City city under the laws of the State of Texas and a Charter. The City Manager exercises control Charter approved by its voters in 1960 that over all departments and subdivisions was last amended in 2014. thereof create by the City Charter and City Council. The City Manager attends all The City operates under a Council Manager meetings of the City Council, taking part in form of government where the governing discussions and recommending Council body consists of the Mayor and four City action as appropriate and keeps the Council Council Members elected for staggered two- fully advised as to the financial condition and year terms. The City operates City Council needs of the City. The City Manager assures formulates operating policy for the City while the annual budget is prepared and submitted the City Manager is the chief administrative to the City Council and assures the City officer. operates within its budget. The City Manager executes deeds and contracts on behalf of the The Mayor of the City of Kilgore is City when authorized by ordinance, recognized as head of the city government for resolution or motion of the City Council. The all ceremonial purposes and by the governor City Manager also represents the City in of the State of Texas for the purposes of professional and civic organizations.

City of Kilgore, TX

HISTORY

 Kilgore was founded in 1872, when transformed Kilgore from a declining the International - Great Northern rural community into a boomtown. Railroad chose to bypass New Danville, and instead form a new  Kilgore, located near the geographic town on land purchased from center of the oilfield, became an Constantine “Buck” Kilgore. important production, processing, service, and supply hub. By 1936 the  Kilgore city was named after town's population had swelled to Constantine Buckley Kilgore, who sold 12,000. 174-acre town site to the railroad.  Today Kilgore is a major industrial  Early Kilgore depended on the hub in East Texas. The oil industry railroad and cotton industries. still plays a major role in the local Everything changed when oil was economy, and economic development discovered in East Texas in 1930. and diversification efforts by the Overnight Kilgore was transformed Kilgore Economic Development into an oil boomtown with a Corporation continue to strength-en population over 12,000. Kilgore’s local economy.

 The discovery of the surrounding East Texas oilfield in the fall of 1930

City of Kilgore, TX

LOCATION

The City of Kilgore is a political subdivision and 66 miles west of Shreveport, LA on the I- and municipal corporation of the State, 20 corridor. The City currently covers located in Gregg and Rusk Counties of East approximately 18.58 square miles. Texas. Kilgore is 120 miles east of Dallas, TX

Location of Major Cities in relation to Kilgore, Texas

Mileage from Major Cities

Dallas 120

Shreveport 55

Houston 199

Austin 276

New Orleans 404

Tulsa 292

Nashville 626

Source: http://www.kilgore‐edc.com/community‐profile/location‐major‐cities City of Kilgore, TX

POPULATION

16,000 14,000 12,000 10,000 Population 8,000 6,000 4,000 2,000 0 2000 2002 2004 2006 2008 2010 2018

Source: United States Census Bureau

In accordance with the U.S. Census, as of July illustrates the change in population from 1st, 2018; Kilgore is home to an estimated 2000-2010 based off of the 2010 U.S. Census 14,862 individuals. This represents a 10.5% and also provides an unofficial projected population increase from 2010 when the population for 2018 based upon recent population was 13,453. The graph above development within Kilgore.

City of Kilgore, TX

ECONOMY

The 2010 U.S. census illustrates those threshold was defined as earning $22,208 or residences living in the City of Kilgore 15.3% less per year. Kilgore’s median household of them are living in poverty (approximately income from 2014-2018 was $54,436 2,286 individuals). Kilgore’s average family compared to the state’s median household size for 2014-2018 was 2.71 persons per income of $59,570. household; based off this average the poverty

Economy

In civilian labor force, total, percent of population 50.8% age 16 years+, 2014-2018

In civilian labor force, female, percent of 55.8% population age 16 years+, 2014-2018

Total accommodation and food services sales, 33,364 2012 ($1,000)

Total health care and social assistance 48,550 receipts/revenue, 2012 ($1,000)

Total manufacturers’ shipments, 2012 ($1,000) 465,968

Total merchant wholesaler sales, 2012 ($1,000) 950,555

Total retail sales, 2012 ($1,000) 351,797

Total retail sales per capita, 2012 $25,608

Source: https://www.census.gov/quickfacts/fact/table/kilgorecitytexas/RTN130212#qf‐headnote‐c

City of Kilgore, TX

2020‐2021 MAJOR EMPLOYERS IN KILGORE, TEXAS

Company Name Category Employment Kilgore Independent School Primary & Secondary Public Education 600 District General Dynamics SATCOM Satellite and Communications 550

Technologies

Kilgore College Higher Education Institute 320 Region VII Education Service Regional Public Education Service Provider 290

Center Martin Midstream Partners, Mkt. & Transporting of Petroleum/Chemicals 241 LP Corp. Headquarters Closure Systems Plastic Closures 227 International, Inc. Cudd Pressure Control Oilfield Services 225 Exterran Compression Services 197 Orgill, Inc. Warehouse Distribution 185 Caterpillar Surface Mining Equipment 184 Pak-Sher Company Plastic Bags 160 City of Kilgore Municipal Government 160 BJ Services Oilfield Services 155 Yamaha/Skeeter Products, Recreational 197 Inc. Triumph Group, Inc. Machined Aircraft Parts, Misc. Trans. Equip. 122 Weatherford International Oil & Gas Services 112

Baker Petrolite Specialty Polymers 105 Ana-Lab Corp. Analytical Services 99 Allied Waste Services Solid Waste Management 92 Permian Tank Steel and fiberglass oil storage tanks, heater 85 treaters, separators Frank’s Casing Crew & Rental Oilfield Services 83 Tools, Inc. Surface Equipment Design and Fabrication of Pressure Vessels 70 Corporation Progressive Waste Solutions District Headquarters, Waste Collection, 63 Transportation and Disposal

Source: http://www.kilgore‐edc.com/community‐profile/major‐employers

City of Kilgore, TX

HOUSING

Kilgore’s median household value from 2014- 2018 was $112,000 based off the 2018 The City of Kilgore has seen tremendous estimated U.S. Census data. Compared to the growth in the housing market since the 2010 state of Texas median household value of census data was released. 80 new apartment $161,700 Kilgore residents have access to a units have been completed in Phase III of much more affordable housing market. With Lexington Court, Oakridge Addition has 27 the 2018 U.S. Census indicating that the new single family homes, Windsor Park homeownership rate reached 67.8%, a (under development) will provide 49 new majority of Kilgore’s citizens are utilizing the single family homes, Remington Estates cities affordable housing market. The average (under construction) will provide 52 new market value of a home in Gregg County was single family homes and 30 townhome units, $132,000 with a taxable value of $106,500. and Meadowgreen Addition will provide 24 The average market value of a home in Rusk units of townhomes. County was $118,500 with a taxable value of $89,100.

EDUCATION

Kilgore Independent School District (KISD) is  Chandler Elementary (Grades 2-3) centered on Kilgore, Texas and encompasses  Kilgore Heights Elementary 106.7 square miles in Gregg and Rusk (Grades PK-K) counties. It provides education for students  Elder Alternative School ranging from Pre-K through 12th grade. Kilgore residents have access to a variety of Accommodating approximately 3900 local colleges and Universities. Citizens of students, KISD is separated into six campuses Kilgore are located within a daily commuting below: distance of numerous two year and four year colleges; Letourneau University is 13.4  Kilgore High miles away, The University of Texas at (Grades 9-12) Tyler is 26.7 miles away, Texas College  Kilgore Middle is 28.8 miles away, Tyler Junior College (Grades 6-8) is 29.4 miles away, and East Texas  Kilgore Baptist University is 35 miles away. Intermediate (Grades 4-5)

Education Attainment Age 25+ (2010) No High School Diploma 54,381 15.9%

High School 101,956 29.8%

Some College 88,337 25.9%

Associate’s Degree 29,817 8.7% City of Kilgore, TX

Bachelor’s Degree 49,042 14.4%

Postgraduate Degree 18,119 5.3

Total 552,461 100.0% Source: http://www.kilgore‐edc.com/community‐profile/education‐attainment‐age‐25‐2010

TRANSPORTATION

The City of Kilgore is approximately six miles Field. Both airports provide flights to Dallas, from the East Texas Regional Airport and Houston and Austin on a daily basis. approximately 30 miles from Tyler Pounds

 Local Bus: The East Texas Council of Governments which is located in  Interstate Bus: Greyhound Bus Kilgore Texas offers the GO BUS Station is located on South Street in program. ETCOG's rural Kilgore, Texas. Greyhound offers bus transportation system makes 800+ service to many areas within and trips a day, 5 days a week, throughout outside of Texas at an affordable the 14 counties of East Texas. ETCOG price. introduced the new brand for its transportation system formerly  Train: Kilgore is also located just 12 known as the Rural Transit District at miles from the Amtrak Station in the 2011 National Train Day Longview, Texas. This rail service celebration in Longview. The new offers transportation to many name GOBUS encourages East Texans destinations within the United States. to "Get on the Go" in the eye catching purple and green buses.

HEALTH

The Emergency Room of Christus Good are a variety of general practitioners in Shepherd Medical Center is currently serving Kilgore that provide a top notch level of care. the residents of Kilgore. Additionally, there

City of Kilgore, TX

CULTURE & ARTS

The City of Kilgore is home of the East Texas citizens. The downtown area of Kilgore is Oil Museum located on the Kilgore College home to Kilgore’s world’s Richest Acre Park. campus; this museum honors part of Texas The acre park displays one original oil derrick history and “houses the authentic re-creation and 30 more restored derricks that are the of oil discovery and production in the early remnants of Kilgore's boomtown birth (all 1930s from the largest oil field inside U.S. but one of the derricks in town was boundaries. Here, visitors see the people, dismantled during the 1960s). Historical their towns, their personal habits, their tools markers throughout the park tell the stories. and their pastimes – all colorfully depicted in The World's Richest Acre Park is open year dioramas, movies, sound presentations and round and is free to all. actual antiques donated by East Texas

 Texas Shakespeare Festival is an historic preservation by annual event in June and July. implementing guidelines set forth by Professional Actors audition every the National Trust Main Street year to be a part of this amazing Center's Four Point Approach, a acting company. The Festival has national revitalization movement opened to many sold out audiences currently in place in more than 2000 for 27 years, and the festival has communities across the nation. produced more than 28 plays of Shakespeare Canon.  Rangerette Showcase and museum, located on the Kilgore College  Kilgore Arts Festival Committee was campus, features a mechanized formed in Spring 2011 to develop a display of Rangerette props, a display signature, arts-focused event that of costumes from the spring stage would become a self-sustaining, show Rangerette Revels and cultural outlet for the Kilgore thousands of photographs and community, a celebration to ‘put newspaper clippings. Kilgore on the map’ in terms of the arts, drawing visitors from an ever-  Annual East Texas Oilman’s Chili‐ increasing geographic area to visit the Cook off is a favorite for everyone. city during an annually-growing The cook-off is held to benefit East festival. Texas Treatment Center. The event is held in November of every year in  Kilgore Main Street program works downtown Kilgore. to enhance downtown vibrancy and

City of Kilgore, TX

PUBLIC SAFETY

The mission of the City of Kilgore’s Police community relationships. KPD provides a Department is “to protect the lives and variety of services, such as CodeRED, extra property of the patrol, Smart 911 and Tip 411, in an effort to people who live, proactively prevent and investigate crime as work and play in well as keep the public informed. In addition, the City of Kilgore we offer a variety of programs to help build and to enforce laws relationships within the community. The and ordinances Citizens Police Academy, Clergy and Police within the Alliance and our award winning National framework of the Night Out event are just a few opportunities United States for the community to interact with the Constitution with Kilgore Police Department. fairness, honesty and Kilgore Fire Department consists of three integrity.” The Kilg fire stations; Central Fire Station located off of ore Police Department became a Recognized Highway 42 North @ Kilgore Street, Station Agency through the Texas Police Chief's #2 located off of South Henderson Boulevard, Association Best Practices Program in 2013. Located on North Kilgore Street, the City of and Station #3 located off of Stone Road. Lead Kilgore is served by 53 full-time employees of by Fire Chief Johnny Bellows the Kilgore Fire the Police Department, including 38 sworn Departments is served by 36 paid fire- officers and 15 civilian staff members. Several fighters and 3 units within the Department also utilize part- compensated fire- time personnel. The Department is divided fighters that are into three sections: Administrative, dedicated to Operations and Support. maintaining a safe The S.W.A.T. (Special Weapons and Tactics community by using Team) Team is a multi-agency team efficient emergency consisting of 24 officers, including officers response techniques from the Gregg County Sheriff's Office, and educating the public about safety Longview Police Department and paramedics procedures during an emergency. One from the Longview Fire Department. The teaching tool the Kilgore Fire Department Longview Police Department manages the team. The S.W.A.T. Team is a part-time uses to help educate the public is the “Fire assignment, whose members have other Prevention/Storm Awareness Trailer”. assignments within their respective departments. The S.W.A.T. Team trains two days each month. The Kilgore Police Department maintains three positions within the S.W.A.T. Team as well as one Hostage Negotiator.

The Kilgore Police Department operates on a dual philosophy of a hard hitting approach to crime while, at the same time, fostering City of Kilgore, TX

PUBLIC WORKS

Rabbit Creek, which then flows into the Sabine River. Daily sampling and analysis is required at the WWTP to ensure the efficient operation of the plant and to demonstrate compliance with the discharge permit issued by the TCEQ. In addition to the in-house testing, samples were collected and sent to a contract lab for biomonitoring analyses. This testing is an ongoing project as part of a toxicity reduction evaluation required by the TCEQ.

The Public Works Department is The City of Kilgore Parks system covers 13 responsible for streets, water and sewer properties totaling approximately 94 acres. systems. The City of Kilgore has two major The mission of the Parks & Facilities sources of drinking water: eight wells located Department is to provide safe, clean, fun, and in Smith County and a surface water friendly parks for the City's residents treatment plant located in the northern part especially the Kilgore youth. The department of the City. Together they provide safe, clean also strives to provide clean and well- drinking water to meet the domestic, manicured cemeteries and to keep all of its commercial and industrial water demands of city owned buildings/structures well the City. The two sources of water together maintained. The City owns Meadowbrook can produce approximately 7.1 million Golf and Event Center, a nine-hole golf course gallons daily when operating at full adjacent to Meadowbrook Park. The semi- capacity. This is more than adequate to private course has an event center seating supply the needs of the City. 250, business center, pro shop and swimming pool. The City’s wastewater treatment plant plays an important part role in protecting the environment by removing impurities from the wastewater generated from residences, businesses and manufacturing facilities before discharging it back to the receiving stream. Through its various physical and biological processes, the plant continues to do an excellent job in treating the wastewater prior to returning it to the receiving stream. The plant effluent is discharged to

BUDGET MESSAGE

Mayor and Council, It is my pleasure to present the Proposed Fiscal Year 2021 budget. This year’s budget provides funding for core city operations, while activating previously established cost cutting strategies necessary to balance the budget. Projected revenues for the budget reflect an extraordinary reduction from prior year levels as a result of the sharp decline in the oil and gas industry which was compounded by the COVID-19 Pandemic. The proposed budget categorizes expenditures into four main components: the base budget, adjustments to the base, enhancements and cuts. The base budget is the funding level necessary to provide core services at current levels. Adjustments to the base outline any substantial additional resources necessary to maintain the current service level. Enhancements represent additional resources necessary to increase beyond the current service level or create new programs. Cuts represent reductions in funding that are anticipated to impact the level of services that are provided. The FY 2021 budget was prepared consistent with the City’s long-term budget philosophy. That philosophy can be summarized as follows: Each proposed budget will make necessary organizational adjustments and incorporate new projects necessary to provide efficient and effective Core Services to the public. Core services include public safety, public works, quality of life, and development and community services. Other budget expenditures such as road reconstruction projects, parks and facilities construction or rehabilitation can be categorized as contingent uses, as they represent discretionary or limited discretion expenditures. Because these contingent uses are less sensitive to timing, they can typically be delayed for short periods of time to allow continuation of core services in times of economic uncertainty. The ultimate goal of this budget philosophy is to match sustainable and dependable revenue sources to core services, while allowing volatile revenue sources to fund contingent uses when available. So long as sufficient additional resources are put into contingent uses during times of economic prosperity, this philosophy delivers a sustainable city budget over the long-term. General Fund: The proposed General Fund budget provides for Police, Fire, Streets, Parks, Library, and other general governmental services. Total proposed General Fund resources are $16,850,367 with total outlays amounting to $16,850,367, resulting in a balanced budget. Total resources includes a $646,121 draw down on reserves to fund the budget. Total outlays decline by $1,439,995 from the FY 2020 budget which was necessary to offset the $1,658,570 decline in recurring revenues. Sales Tax The projected sales tax revenues of $4.7 million reflect the substantial decline in the oil and gas market, with that market making up roughly 70 percent of sales tax remitted to the City. The budgeted number has declined by $1.5 million from FY2020.

Ad Valorem Tax Ad Valorem Tax (Property Tax) is budgeted at $6,260,000. This number reflects an unchanged tax rate of $0.539 per $100 of value and is lower than the FY2020 number by approximately $110,000 primarily due to a reduction in the tax roll related to business personal property. The Proposed Tax Rate is comprised of two components, the I&S (Interest and Sinking) rate which provides funds necessary to service the City’s tax supported debt payments, and the O&M (Operations and Maintenance) portion which supports ongoing operations in the General Fund. The Proposed I&S rate is $0.029882 and the Proposed O&M rate is $0.509118 per $100 of value. Other Revenues Other city revenue sources in FY 2021 come from Garbage Services (12%), Other Tax and Franchise Fees (5%), Intergovernmental Transfers (4%), Fines and Fees (3%), User Fees (2%), and Transfers In (4%). In general, those revenues are expected to remain similar to FY 2019 levels. Significant General Fund Changes from FY 2020:

• Freezes 7 full time positions including: Fire Chief, Street Maintenance Worker, Parks Maintenance Worker, Facilities Maintenance Worker, Community Relations Manager, Main Street Manager, and an over-hire Police position. • Pay adjustments are included in the budget for an April 1st implementation, but are contingent on recovery in the economy and will require an affirmative vote from Council next spring before being awarded. For Public Safety Employees, the budget funds salary adjustments based on a rank and tenure compensation plan. Non-Public Safety employee pay plan adjustments average 1.375%. Only employees who receive a meets expectations or higher rating in their annual performance evaluation will be eligible for pay adjustments. • Removed $600,000 from ongoing street maintenance and eliminated the capital construction street transfer that was typically $750,000.

Water and Wastewater Utility Fund The City’s Utility Fund provides Water and Wastewater services to Kilgore businesses and residents. The FY 2021 Proposed Budget continues to fund the ongoing operational aspects of the two utilities, and also funds substantial Capital Improvement plans in both areas. Water Utility Kilgore currently utilizes ground water from wells located west of the City to provide potable water from late fall into early spring while demand is low. During high demand periods, the City activates its surface water treatment plant which treats water from the Sabine River in order to supplement its ground water supply. In prior years, the Utility sold bonds to fund a wide range

of engineering and construction projects necessary to repair and restore utility infrastructure. The FY 2021 budget year will see many of those projects complete construction phase and the next round of design will begin. FY 2021 marks the sixth year of a ten year plan to adjust rates necessary to address rehabilitation and expansion needs. As such, the FY 2021 budget includes a 2.5% rate increase across the board for water rates and anticipates approximately $3.2 million of new debt being issued to rehabilitate the High Service Pump Station at FM 349. Wastewater Utility Similar to the Water Utility, the Wastewater Utility faces capacity issues as well as deterioration of its existing infrastructure. However, the expansion of the current plant may be postponed if Inflow and Infiltration issues can be limited in the collection system. As a result, the FY 2021 budget continues the implementation of a 10 year program to rehabilitate the Wastewater System in order to reduce the impact of rain events on the plant. The Wastewater budget includes funds for continued operation as well as funds for debt service on debt sold in prior years. Similar to the Water Utility, Wastewater rates will be increase 2.5% and an additional $3 million of bonds will be sold to fund the rehabilitation of the Rabbit Creek Lift station. Meadowbrook Golf and Event Center The FY 2021 Budget for the Meadowbrook Golf and Event Center continues the focus on controlling costs and increasing revenues in a variety of areas. Additionally, the construction of the new revenue generating Cart Storage facility is complete and will add to the facility’s sustainability in 2021. The General Fund contribution will be held at $156,000 for the year, while staff will continue their focus on business development.

Respectfully Submitted, Joshua C. Selleck, CFP®, CGFO City Manager, City of Kilgore

City of Kilgore, TX

Budget Process

The City of Kilgore’s Budget process starts in early spring when the City Manager and the accounting staff prepare “budget packets” consisting of a budget calendar, general budget instructions, and definitions. These are then distributed at a “budget kick-off” to each department head with directions to begin their planning with the base budget provided. Using these general guidelines, each department formulates and submits budgetary estimates based on trends and known values to the City Manager.

The resulting requests and recommendations consist of either (1) components of the base budget necessary to maintain existing service levels, (3) adjustments to base, or (2) service enhancements intended to elevate existing service levels or to provide capabilities and programs not currently available at the base budget level. The department requests are compiled into a comprehensive working draft. Priority ranking of improvements is done in order to determine what can be funded with projected revenues.

Under the direction of the City Manager, the Mayor and City Council participate in “budget workshops” to analyze the requested budget and to make recommendations of courses of action that are presented to the council. The purpose of these workshops are to blend together programs that the city has embarked on during current and prior periods with new goals and programs that the Mayor, the City Council, the City Manager and department heads see as necessary to deliver anticipated services to the citizens of the City of Kilgore. During these workshops, funding strategies are developed to deliver the anticipated programs and services in order to assure that the overall cost of services fits within the parameters specified by the council on behalf of the citizenry as a whole.

The budgets for the General and Debt Service Funds (i.e. governmental funds) are prepared on a budgetary basis similar to the modified accrual basis of accounting. Under this basis, revenues are recognized when they become measurable and available to finance expenditures of the current period. Expenditures are generally recognized when the related fund liability is incurred. However, there is one fundamental difference between the technique used to report the City’s financial plan (i.e. budget) versus the technique used to report the historical results of financial operations (the Financial Statements prepared at year end).

The difference between the modified accrual basis used for financial reporting and the budget is the way capital purchases are handled. Each government fund must budget the full cost of all capital purchases for a fiscal year, while the City’s financial statements record the capital within the individual government funds. Each year, an amount of depreciation is recorded as an expense so that the cost of the asset is spread over the life of the asset even though the full cost is recorded in the budget during the period in which the item was purchased. This accelerates the recognition of the cost and forces the City to officially identify and appropriate funding at the earliest possible stage.

City of Kilgore, TX

The budget may be amended by the City Council through the passage of a supplemental appropriation ordinance. The City Manager may at any time with the approval of the council transfer any unencumbered appropriated balance or portion thereof between general classifications of expenditures within an office, department, or agency. At the request of the City Manager and within the last three months of the budget year, the council may by resolution transfer

any unencumbered appropriated balance or portion thereof from one office, department, or agency to another. CITY OF KILGORE FY 2020-2021 BUDGET CALENDAR

DATE EVENT ACTION Training on 2021 Budget Process for Department March 18, 2020 FY 2020-2021 Budget & CIP Kickoff Directors Departmental Budget & CIP Submittal Departments create their proposed budget and March 18-May 10, 2020 Preparation CIP submittal for review

RPRTO IMPLEMENTATION PREPARATION May 10, 2020 Budget & CIP Submittals due Departments submit budgets for review

Deadline for submitting appraisal records Mid May No action by City to ARB

May 11 -May 29, 2020 Finance Review of Submittals

CM holds budget & CIP submittals City Manager reviews and discusses submittals June 1st -June 19, 2020 meetings with Department Directors

June 30, 2020 City Council Summer Workshop

July 24, 2020 Tax Roll Certification Chief Appraiser official date for certifying tax roll

Calculation of Effective and Rollback Tax Finance Department calculates effective and End of July Rates rollback tax rates from certified tax roll Special Called Meeting - Proposed FY Staff provides presentation of Proposed Budget August 11, 2020 2020-2021 Budget and Tax Rate to Council at Regular Council Meeting Presentation to Council Last Date Publish Proposed Budget & CIP Provide Budget to Library, City Secretary and August 8, 2020 Set Public Hearing Schedule place on website. Public hearing for budget. May need to schedule Regular Meeting - First Reading of Budget and announce meeting to adopt tax rate 3 - 14 August 11, 2020 and Tax Rate days from this date IF proposed rate exceeds the ETR. Possible Second Reading (or 3rd if Must be within 3 - 14 days from this published August 25, 2020 needed) of Budget and Tax Rate adoption date, if publication necessary 72 hour notice for meeting at which September 5, 2020 governing body will adopt tax rate Regular Meeting Second reading; September 8, 2020 Vote on Budget and Tax Rate Adoption of Budget and Tax Rate

October 1, 2020 Operating Fiscal Year begins

November 15, 2020 Close FY 2021

December 9, 2020 Begin FY 2021 Audit

November 30, 2020 Publish FY 2021 Budget

December 7, 2020 Submit Budget to GFOA

March 31, 2020 Complete 2021 Audit and publish CAFR

KILGORE The City of Stars

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PERSONNEL

CITIZENS OF KILGORE

Mayor and Council KEDC Board of Directors Rachel Rowe Josh Selleck Rob Schleier Glenn Phillips

Jana Russell City Clerk City Manager City Attorney Muni Ct Judge KEDC Director Assoc Judge

KEDC Michele Kincaid .5 - A.P. 3-FTE HR Director

Chief. Todd Hunter Mark Henderson Clay Evers BJ Owen Police Department Fire Department Public Works General service director Bill Martin Stacey Cole Carol Windham Danny Downing 47-FTE 36-FTE Building Official Controller Library Planning Parks Director Director Director Water Utilities Health, Animal Ctrl Volunteer Rescue Unit 21-FTE Code Enforcement Landon Ward Library Cemetry/ Edgar Rachal 2-FTE Finance Director 3-FTE Admin Assistant Rescue Chief Street Maintence 10- FTE Permits Accounts Meadowbrook Golf 1-FTE Payable FTE-2

Swimming Pool Customer Service Parks Department 6.5 - FTE 3-FTE FTE-8

James Womack Building maintence Equip Svcs 2-FTE

Municipal Court 2-FTE

Note: Boxes that identify a single position or name the person occupying the position, equal 1 authorized position F.T.E. = Full Time Equivalent

T:\Finance\Budget\FY2021\Budget Document\Org Chart - 6\Org-Chart 2021 City of Kilgore, TX

DETAIL OF POSITIONS FOR BUDGET

FULL TIME POSITIONS 2017-18 2018-19 2019-20 2020-21

City Manager 1 1 1 1 City Clerk 1 1 1 1 Human Resource Director 1 1 1 1 3 3 3 3 Finance Department Controller 0 1 1 Finance Director 1 1 1 1 Assistant Director of Finance 0 1 0 0 Senior Accountant 1 0 0 0 Accounts Payable/Payroll Clerk 1 1 1 1 3 3 3 3 Police Department Police Chief 1 1 1 1 Assistant Police Chief 0 1 1 1 Lieutenant (Support & Patrol) 2 2 2 2 Sergeant CID 1 1 1 1 Sergeant SRO 1 1 1 1 Sergeant Patrol 4 4 4 4 Corporal Administrative 1 1 1 1 Corporal 4 4 4 4 Corporal CID 3 3 3 3 Police Officer Patrol 11 14 14 14 Police Officer DEA 1 1 1 1 Police Officer Canine 2 2 2 2 School Resource Officer 2 2 2 2 Evidence Officer 1 1 1 1 Jail Administrator 1 1 2 2 Victim Service Coordinator 1 1 1 1 Office Manager 1 1 1 1 Records Clerk 1 1 2 2 Dispatcher Supervisor 1 1 1 1 Dispatcher 7 7 7 7 48 50 52 52 Municipal Court Municipal Judge 1 1 1 1 Court Administrator 0 1 1 1 Court Clerk 2 1 1 1 4 4 3 3 Fire Department Over 1 FT Fire Chief 1 1 1 0 Assistant Fire Chief 0 1 1 1 Administrative Assistant 0.5 0.5 0.5 0.5 Fire Marshal 1 1 1 1 Captain 9 9 9 9 Driver 9 9 9 9 City of Kilgore, TX

Firefighter 15 16 16 16 36.5 37.5 37.5 36.5 Rescue Unit Rescue Chief 1 1 1 1

Street Department Assistant Director of Public works 0 1 1 1 Crew Leader 2 2 2 2 Equipment Operator 1 3 3 4 Maintenance Worker 6 4 4 3 10 10 10 10 Parks Department Director of Parks and Facilities 1 1 1 1 Administrative Assistant 0 1 1 1 Crew Leader 1 1 1 1 Equipment Operator 7 5 5 5 Maintenance Worker 1 2 2 1 11 10 10 9 Cemetery Department Equipment Operator Contracted Contracted Contracted Contracted Cemetery Worker 1 1 1 1 Cashier II 0 0 0 0 1 1 1 1 Equipment Services Equipment Services Supervisor 1 1 1 1 Mechanic 2 2 2 2 3 3 3 3 Health Department Code Enforcement Officer 1 1 1 1 Animal Control Officer 1 1 1 1 2 2 2 2 Building Maintenance Dept. Maintenance Worker 0 2 2 1 3 2 2 1 Library Department Library Director 1 1 1 1 Assistant Library Director 1 1 1 1 Library Assistants 2 2 2 2 4 4 4 4

Planning Department Director of Planning/Zoning 1 1 1 1 GIS Coordinator Contracted Contracted Contracted Contracted Main Street Manager 0 0 0 0 Community relations Manager & Special Events 1 1 1 1 2 2 2 2 Economic Development Executive Director of EDC 1 1 1 1 Assistant Director of EDC 1 1 1 1 Administrative Assistant 2 2 2 2 City of Kilgore, TX

4 4 4 4 Inspection Department Director of Special services 0 1 1 1 Inspector 1 1 1 1 Permit Office Manager 1 1 1 1 2 3 3 3

Total Authorized Positions - GF 137.5 139.5 140.5 136.5

Water Production I Utility Plant Operator 1 1 1 0

Water Production II Assistant Utility Superintendent 1 1 1 1 Equipment Operator 0 0 7 6 7 7 8 7 Water Customer Service Utility Billing Coordinator 1 1 1 1 Cashiers 2 2 2 2 4 3 3 3 Water Distribution System Equipment Operator 3 4 7 7 Meter Readers 1 1 1 1 7 7 8 8 Wastewater Plant Chief 1 1 1 1 Plant Operators 3 3 4 3 5 5 5 4 Water/Sewer Administration Director of Public Works 0 1 1 1 Utility Superintendent 1 1 1 1 Administrative Assistant 0.5 0.5 0.5 0.5 Project Manager 1 Engineer In Training 1 1 1 1 3.5 3.5 3.5 4.5

Total Authorized Positions - Water Fund 26.5 26.5 28.5 26.5

Hospital Maintence supervisor 1 1 1 Maintence worker 1 1 1

Total Hospital Positions 2 2 2

Meadowbrook Golf Head Golf Professional 1 1 1 1 Grounds keeper 2 2 2 2 Total Meadowbrook 4 4 3 3 City of Kilgore, TX

Total Authorized Positions 168 172.0 174.0 169.0

Other Part-time or Seasonal Employees Admin Summer intern (2PT) 1 1 Patrol Officer (1PT) 0.5 0.5 Jailers (7 PT) 4.5 4.5 3.5 3.5 Associate Judge (1PT) 0.5 0.5 Firefighters (6PT) 3 3 Compensated Volunteer Firefighters (9PT) 2.5 2.5 4.5 4.5 PT Streets MWK (1PT) 1 1 0.5 0.5 PT Code Enforcement (1PT) 0.5 0.5 0.5 0.5 Pool Manager & Asst. (1PT) 0 0 0.5 0.5 Life Guards (23 PT) 6.5 6.5 11.5 11.5 Librarian Part-Time (4PT) 1.5 2 2 2 Dispatcher ( 4PT) 2 2 2 2 Pool Director 0 0 0 0 Students working/school programs (3 PT) 2 2 1.5 1.5 Golf Course/Restaurant (9 PT) 2 2 4.5 4.5 Maintence Worker Hospital (1PT) 0.05 0.5 0.5 Full-time Equivalents 9.5 10.05 36.5 36.5

City of Kilgore, TX

Job Classification Listing FY 2020-21

Grade Min Mid Max Classification 1 15,960 19,099 22,238 N Regular Part-time (Library) N Temporary Part-time (HS Students/Interns) N Temporary Part-time (College Students) N Rescue Unit N Part-Time Pro Golf Shop N Part-Time Mosquito Sprayer N Part-Time Maintenance Worker N Part-Time Pool Manager 2 19,949 23,873 27,797 N Seasonal Part-time Swim Pool N Part-Time Groundskeeper 3 21,944 26,260 30,576 N Part-time Jailer N Groundskeeper N Municipal Associate Judge 4 24,139 28,886 33,634 N Part-Time Code Enforcement N Custodian N Library Assistant or Clerk N Part-Time Code Enforcement 5 26,552 31,775 36,997 N 6 29,208 34,952 40,697 N City Judge N Dispatcher N Animal Control Officer N Cashier II N Municipal Court Clerk N Police Records Clerk N Librarian (Degreed) N Administrative Assistant I N Victims Services Coordinator N MWK (ST,WT,WW,PK) N Jailer FT 7 32,129 38,448 44,767 N Accounting Clerk N Administrative Assistant II N Code Enforcement Officer N MWK(ST,WT,WW,PK) N Mechanic N Equipment Operator (ST,WT,WW.PK) N Utility Billing Coordinator N Maintenance Supervisor/Meadowbrook 8 35,342 42,293 49,243 N Assistant Director of Library N Code Enforcement (Licensed Peace Officer) N Equipment Operator(ST.WT,WW,PK) N Building Inspector N Court Administrator N Utility Plant Operator E Main Street Manager N Firefighter City of Kilgore, TX

N Human Resources Generalist 9 38,875 46,522 54,167 N Municipal Bailiff E Office and Project Manager (KEDC) E Permit Office Manager E Project Manager N Dispatch Supervisor E Police Manager N Equipment Services Supervisor N Part-Time Building/Restaurant Inspector N Industrial Pretreatment Coordinator N Support Operations Officer N Fire Driver N Garage Equipment/Maintenance Supervisor N IT Coordinator 10 42,764 51,174 59,585 N Engineer I N CHIEF OPERATOR (PLANTS) N Crew Leader N Fire Captain E GIS Coordinator N Police Patrol I E Fire Marshall 11 47,039 56,291 65,543 E Senior Accountant E City Clerk E Assistant Utilities Superintendent E Assistant Director Public Works N Police Patrol II N Police Patrol/CID N Patrol Administrative Corporal E Community Relations Manager 12 51,744 61,920 72,097 E Street Superintendent E Support Police Lieutenant N Police Sergeant E Head Golf Professional 13 56,918 68,113 79,307 E Assistant Director of Finance E Operations Chief E Director of Library E Director of Planning E Director of Human Resources 14 62,609 74,924 87,238 E Director of General Services E Director of Parks & Facilities E Utilities Superintendent 15 68,870 82,416 95,962 E Assistant Police Chief E Fire Asst Chief/Admin & Training Officer E Fire Operations Chief E City Engineer E Police Captain/Assistant Chief 16 75,758 90,657 105,557 E Director of Finance E Controller City of Kilgore, TX

17 83,334 99,724 116,113 E Police Chief E Fire Chief E Director of Public Works 18 Open Range E City Manager E KEDC Director E KEDC Assistant Director N Non-Exempt E Exempt

KILGORE The City of Stars

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MANAGEMENT & BUDGET POLICIES

City of Kilgore, TX

INTRODUCTION

The fiscal year 2021 budget has been prepared in accordance with generally accepted management and budget policies. These policies were established and put into place to clarity specific budget issues or objectives. The aim of these policies is to ensure that financial resources are available to meet the present and future needs of the citizens of Kilgore.

There are many reasons to prepare and maintain a budget. Some of these reasons are as follows:

. Provide sound financial management . Ensure that revenues and expenditures meet established priorities . Establish direction for future expenditures . Comply with city charter and state statute

Any modifications or revisions to the original adopted budget must be approved by the City Council with the passage of a Budget Amendment Ordinance.

When compiling the budget totals for revenues and expenditures, department heads work closely with the City Manager and Director of Finance. It is essential that all of these items be used when forecasting revenues, since a miscalculation could have dramatic effects on the City’s ability to provide services. Revenue projections are based on the following:

. Sales tax fluctuations and uncertain future forecasts . Property values and related ad-valorem taxes . Historical data . The local economy

ACCOUNTING SYSTEM

The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds are those through which most governmental functions of the City are financed. Governmental funds focus on financial position or fund balance and changes in financial position, rather than on net income. Enterprise funds are used to account for governmental activities that are operated in a manner similar to a business enterprise. Their focus is on net income. All of the funds of the City can be divided into these two categories: Governmental Funds and Proprietary Funds

GOVERNMENTAL FUNDS

. General Fund –the general operating fund of the City and its function is to account for the resources devoted to finance the services traditionally associated with local government. . Special Revenue Funds – used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. . Debt Service Funds – used to account for the resources for, and the payment of, general long-term principal, interest and related costs of bonds issued not serviced by the Enterprise funds. City of Kilgore, TX

. Capital Projects Funds – used to account for financial resources to be used for the acquisition or construction of major capital facilities and/or improvements to existing facilities/structures.

PROPRIETARY FUNDS

The City maintains two different types of proprietary funds:

. Enterprise Funds – used to account for operations that are financed and operated in a manner similar to a private business enterprise, where the intent of the City Council is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Administrative fees paid by the Enterprise Funds to the General Fund are for the value of administrative services rendered and are not accounted for as inter-fund transfers. Enterprise Funds for the City include the Water/Sewer Utility Fund. . Internal Service Funds – an accounting device used to accumulate and allocate cost internally among the City’s various functions. Internal service funds are used by management to charge the cost of capital equipment purchases and health insurance to individual funds. Certain assets and liabilities of the internal service funds are included in business-type activities.

BUDGET BASIS

The City’s financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

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 period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City.

The City’s property tax is based on all taxable property located in the City as of January 1st of the year. Property taxes attach as an enforceable lien on the property on October 1st of the year following the levy and are due without penalty prior to February 1st.

City of Kilgore, TX

CASH AND INVESTMENTS

The City is required by Government Code Chapter 2256, The Public Funds Investment Act, to adopt, implement, and publicize an investment policy. The current policy was adopted by City Council on July 12, 2016 and requires an annual audit of investment practices. Prior to October 1st of each year, the policy is reviewed.

The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, certificate of deposits and short-term investments with original maturities of two years or less.

CASH FLOW INFORMATION

For the purposes of the Statement of Cash Flows, the City’s funds consist principally of cash, certificates of deposits, and governmental investment pools.

RECEIVABLES AND PAYABLES

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “do to/from other funds” (i.e. the current portion of inter- fund loans) or “advances to/from other funds” (i.e., the non-current portion of inter-fund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances.

INVENTORIES AND PREPAID ITEMS

Inventories are valued at cost using the first-in/first-out method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased.

Certain payments to vendors reflect cost applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

RESTRICTED ASSETS

Certain General Fund investments and proceeds of Enterprise Fund Bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants and other restrictions. The Debt Service Fund is used to segregate resources accumulated for debt service payments over the next twelve months. Customer deposits received for water/sewer services are, by law, to be considered restricted assets.

COMPENSATED ABSENCES

The City encourages its employees to take annual leave (vacation) in the year it accrues, however, employees are allowed to accumulate vacation time for a maximum of two years credit. If an employee voluntarily resigned from employment with at least two weeks advance written notice, the employee will receive the full balance of accrued, but unused vacation. If an employee voluntary resigns from employment with less than two weeks’ notice, but with at least one week advance written notice, the employee will receive fifty percent of the accrued balance. Effective May 22, 2001, the City enacted a policy that states if an employee retires with 10 years of service, they would be paid for one-half of their accumulated sick leave up to 45 days. City of Kilgore, TX

LONG‐TERM OBLIGATIONS

In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts as well as issuance costs, are deferred and amortized over the life of the bonds, using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

FUND EQUITY

In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally-restricted by outside parties for use for a specific purpose.

Fund Balances – Governmental Funds

The City Adopted GASB54, Fund Balance Reporting and Governmental Fund Type Definitions. This does not affect the calculation of fund balance, but alters the various components used to report it.

Fund balances of the governmental funds are classified as follows:

. Non-spendable Fund Balance – represents amounts that cannot be spend because they are either not in spendable form (such as inventory or prepaid insurance) or legally required to remain intact (such as notes receivable or principal of a permanent fund).

. Restricted Fund Balance – represents amounts that are constrained by external parties, constitutional provisions or enabling legislation.

. Committed Fund Balance – represents amounts that can only be used for a specific purpose because of a formal action by the City Council. Committed amounts cannot be used for any other purpose unless the City Council removes those constraints by taking the same type of formal action. Committed fund balance amounts may be used for other purposes with appropriate due process by the City Council. Commitments are typically done through adoption and amendment of the budget. Committed fund balance amounts differ from restricted balances in that the constraints on their use do not come from outside parties, constitutional provisions, or enabling legislation.

. Assigned Fund Balance – represents amounts which the City intends to use for a specific purpose, but that do not meet the criteria to be classified as restricted or committed. Intent may be stipulated by the City Council or by an official or body to which the City Council delegates the authority. Specific amounts that are not restricted or committed in a special revenue, capital projects, debt service or permanent fund are assigned for purposes in accordance with the nature of their fund type or the fund’s primary purpose. Assignments within the general fund convey City of Kilgore, TX

that the intended use of those amounts is for a specific purpose that is narrower than the general purpose of the City itself.

. Unassigned Fund Balance – represents amounts which are unconstrained in that they may be spent for any purpose. Only the general fund reports a positive unassigned fund balance. Other governmental funds might report a negative balance in this classification because of overspending for specific purposes for which amounts had been restricted, committed or assigned.

. When expenditure is incurred for a purpose for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds.

USES OF ESTIMATES

Preparing the City’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

BUDGETS AND BUDGETARY ACCOUNTING

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

Prior to September 5, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer comments. Prior to October 1, the budget is legally enacted through passage of an ordinance.

The City Manager is authorized to transfer budgeted amounts within a department; however, any revisions that alter the total expenditures of any department must be approved by the City Council.

Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Fund, and Enterprise Funds.

To establish and document a policy framework for fiscal decision-making, the City Manager will develop and present for the City Council Member’s consideration a comprehensive set of Financial Management Policy Statements. The aim of these policies is to ensure that financial resources are available to meet the present and future needs of the citizens of Kilgore. Specifically this policy framework mandates the pursuit of the following fiscal objectives:

I. Revenues: Design, maintain and administer a revenue system that will assure a reliable, equitable, diversified and sufficient revenue stream to support desired City services. II. Expenditures: Identify priority services, establish appropriate service levels and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of services. III. Fund Balance/Retained Earnings: Maintain the fund balance and retained earnings of the various operating funds at levels sufficient to protect the City’s creditworthiness as well as its City of Kilgore, TX

financial position from emergencies. IV. Capital Expenditures and Improvements: Annually review and monitor the state of the City’s capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, funding alternatives, and availability of resources. V. Debt: Establish guidelines for debt financing that will provide needed capital equipment and infrastructure improvements while minimizing the impact of debt payments on current revenues. VI. Investments: Invest the City’s operating cash to ensure its safety, provide for necessary liquidity and optimize yield. VII. Intergovernmental Relations: Coordinate efforts with other governmental agencies to achieve common policy objectives, share the cost of providing governmental services on an equitable basis and support favorable legislation at the state and federal level. VIII. Grants: Seek, apply for and effectively administer federal, state and foundation grants-in-aid which address the City’s current priorities and policy objectives. IX. Economic Development: Initiate, encourage and participate in economic development efforts to create job opportunities and strengthen the local economy. X. Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the City’s financial performance and economic condition. XI. Financial Consultants: With available resources, seek out and employ the assistance of qualified financial advisors and consultants in the management and administration of the City’s financial functions. XII. Accounting, Auditing and Financial Reporting: Comply with prevailing federal, state and local statutes and regulations. Conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants (AICPA), and the Government Finance Officers Association (GFOA).

I. Revenues

To design, maintain and administer a revenue system that will assure a reliable, equitable, diversified and sufficient revenue stream to support desired City services.

A. Balance and Diversification in Revenue Sources The City shall strive to maintain a balanced and diversified revenue system to protect the City from fluctuations in any one source due to changes in local economic conditions which adversely impact that source.

B. User Fees For services that benefit specific users the City shall establish and collect fees to recover the costs of those services. The City Council shall determine the appropriate cost recovery level and establish the fees. Where feasible and desirable, the City shall seek to recover full direct and indirect costs. User fees shall be reviewed on a regular basis to calculate their full cost recovery levels, to compare them to the current fee structure, and to recommend adjustments where necessary.

C. Property Tax Revenues/Tax Burden The City shall endeavor to reduce its reliance on property tax revenues by revenue diversification, implementation of user fees, and economic development. The City shall also City of Kilgore, TX

strive to minimize the property tax burden on Kilgore citizens.

D. Utility/Enterprise Funds User Fees Utility rates and enterprise funds user fees shall be set at levels sufficient to cover operating expenditures, meet debt obligations, provide additional funding for capital improvements, and provide adequate levels of working capital. The City shall seek to eliminate all forms of subsidization to utility/enterprise funds from the General Fund.

E. Administrative Services Charges The City shall establish a method to determine annually the administrative services charges due the General Fund from enterprise funds for overhead and staff support. Where appropriate, the enterprise funds shall pay the General Fund for direct services rendered.

F. Revenue Estimates for Budgeting In order to maintain a stable level of services, the City shall use a conservative, objective, and analytical approach when preparing revenue estimates. The process shall include analysis of probable economic changes and their impacts on revenues, historical collection rates, and trends in revenues. This approach should reduce the likelihood of actual revenues falling short of budget estimates during the year and should avoid mid-year service reductions.

G. Revenue Collection and Administration The City shall maintain high collection rates for all revenues by keeping the revenue system as simple as possible in order to facilitate payment. In addition, since revenue should exceed the cost of producing it, the City shall strive to control and reduce administrative costs. The City shall pursue to the full extent allowed by state law all delinquent taxpayers and others overdue in payments to the City.

City of Kilgore, TX

II. Expenditures

To assure fiscal stability and the effective and efficient delivery of services, through the identification of necessary services, establishment of appropriate service levels, and careful administration of the expenditure of available resources.

A. Current Funding Basis The City shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.)

B. Avoidance of Operating Deficits: Balanced Budget The City will maintain a balanced operating budget, encourage commitment to a balanced budget under normal circumstances, and provide for disclosure when a deviation from a balanced operating budget is planned or when it occurs. The City shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue re-estimates are such that an operating deficit (i.e., projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions can include a hiring freeze, expenditure reductions, fee increases, or use of fund balance within the Fund Balance/Retained Earnings Policy. Expenditure deferrals into the following fiscal year, short-term loans, or use of one-time revenue sources shall be avoided to balance the budget.

C. Maintenance of Capital Assets Within the resources available each fiscal year, the City shall maintain capital assets and infrastructure at a sufficient level to protect the City’s investment, to minimize future replacement and maintenance costs, and to continue service levels.

D. Periodic Program Reviews The City Manager shall undertake periodic staff and third-party reviews of City programs for both efficiency and effectiveness. Privatization and contracting with other governmental agencies will be evaluated as alternative approaches to service delivery. Programs which are determined to be inefficient and/or ineffective shall be reduced in scope or eliminated.

E. Purchasing The City shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also use competitive bidding in accordance to State law to attain the best possible price on goods and services.

City of Kilgore, TX

III. Fund Balance/Retained Earnings

To maintain the fund balance and retained earnings of the various operating funds at levels sufficient to protect the City’s creditworthiness as well as its financial positions from unforeseeable emergencies.

A. General Fund Undesignated Fund Balance Fund balance is the difference between fund assets and fund liabilities of governmental and similar trust funds. The City shall strive to maintain the General Fund undesignated fund balance at 25 percent of current year budget expenditures. After completion of the annual audit, if the undesignated fund balance exceeds twenty-five (25) percent, the City Council will be provided the option of transferring the excess to the Capital Projects Fund (undesignated).

B. Retained Earnings of Other Operating Funds In other enterprise operating funds, the City shall strive to maintain positive retained earnings positions to provide sufficient reserves for emergencies and revenue shortfalls. Specifically, in the Water and Sewer Enterprise Fund, an operating reserve will be established and maintained at twenty-five (25) percent of the current year’s budget appropriation for operation and maintenance, which is defined as the total budget less debt service and capital project expenditures.

C. Use of Fund Balance/Retained Earnings Fund Balance/Retained Earnings shall be used only for emergencies, not recurring expenditures, or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, recommendations will be made on how to restore it.

D. Retained Earnings of Internal Service Funds The City shall not regularly maintain positive retained earnings in internal service funds with the exception of the Employee Health Benefit Plan (self-insurance) fund and Capital Equipment Purchase Fund. When an internal service fund builds up retained earnings, the City shall transfer it to other operating funds.

IV. Capital Expenditures and Improvements

To annually review and monitor the state of the City’s capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, funding, alternatives, and availability of resources.

A. Capital Improvement Planning Program The City shall annually review the needs for capital improvements and equipment, the current status of the City’s infrastructure, replacement and renovation needs, and potential new projects. All projects, ongoing and proposed, shall be prioritized based on an analysis of current needs and resource availability.

B. Replacement of Capital Assets on a Regular Schedule The City shall annually prepare a schedule for the replacement of its non-infrastructure capital City of Kilgore, TX

assets. Within the resources available each fiscal year, the City shall replace these assets according to the aforementioned schedule.

C. Capital Expenditure Financing The City recognizes that there are five basic methods of financing its capital requirements. The options are: 1) budget the funds from current revenues; 2) purchase through the Equipment Replacement Fund and re-pay as a self-funded lease program 3) pre-pay into the Equipment Replacement Fund so as to not have a deficit fund balance 4) take the funds from operating fund balance/retained earnings as allowed by the Fund Balance/Retained Earnings Policy; or 5) borrow money through debt. Debt financing includes general obligation bonds, revenue bonds, certificates of obligation, lease/purchase agreements, certificates of participation, and commercial paper. Guidelines for assuming debt are set forth in the Debt Policy Statements.

V. Debt

To utilize debt financing which will provide needed capital equipment and infrastructure improvements while minimizing the impact of debt payments on current revenues.

A. Use of Debt Financing Debt financing, to include general obligation bonds, revenue bonds, certificates of obligation, certificates of participation, commercial paper, and lease/purchase agreements, shall only be used to purchase capital assets that cannot be financed from either current revenues or fund balance/retained earnings and to fund infrastructure improvements and additions. The useful life of the asset or project shall exceed the payout schedule of any debt the City assumes. The City is currently reviewing our capital needs and will possibly consider a bond issue for funding.

B. Assumption of Additional Debt – Legal Debt Margin The City shall not assume more tax-supported general purpose debt than it retires each year without conducting an objective analysis as to the community’s ability to assume and support additional debt service payments. The City’s debt paid by ad valorem taxes is limited to $2.50 per $100 of the taxable appraised value within the City.

C. Affordability Targets The City shall use an objective analytical approach to determine whether it can afford to assume new general purpose debt beyond what it retires each year. This process shall compare generally accepted standards of affordability to the current values for the City. These standards shall include debt per capita, debt as a percent of taxable value, debt service payments as a percent of current revenues and current expenditures, and the level of overlapping net debt of all local taxing jurisdictions. The process shall also examine the direct costs and benefits of the proposed expenditures. The decision on whether or not to assume new debt shall be based on these costs and benefits and on the City’s ability to “afford” new debt as determined by the aforementioned standards. The City shall strive to achieve and/or maintain these standards at a low to moderate classification.

D. Debt Structure The City shall structure its debt payment schedules for general purpose debt to ensure relatively level principal & interest repayment schedules. The City shall not assume any debt with “balloon’ City of Kilgore, TX

repayment schedules which consist of low annual payments and one large payment of the balance due at the end of the term. While balloon payment structures minimize the size of debt payments during the period, they force a large funding requirement on the budget of the final year. Given the uncertainties of the future, level payment schedules improve budget planning and financial management.

E. Sale Process The City shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a negotiated bid. The City shall award bonds based on a true interest cost (TIC) basis as long as the financial advisor agrees that the TIC basis can satisfactorily determine the lowest and best bid.

F. Bond Rating Agencies Presentations Full disclosure of operations and open lines of communication shall be made to the bond rating agencies. City staff, with assistance of financial advisors, shall prepare the necessary materials and presentation to the bond rating agencies.

G. Continuing Disclosure The City is committed to continuing disclosure of financial and pertinent credit information relevant to the City’s outstanding securities.

H. Debt Refunding City staff and the financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the present value savings of a particular refunding should exceed 3.5% of the refunded maturities.

VI. Investments

To invest the City’s cash in such a manner so as to insure the absolute safety of principal and interest, to meet the liquidity needs of the City, and to achieve the highest possible yield. Interest earned from investments shall be distributed to the City funds from which the money was provided. (Reference: Investment Policy required by the Public Funds Investment Act, Resolution 16-21 adopted July 12, 2016, or most current)

VII. Intergovernmental Relations

To coordinate efforts with other governmental agencies to achieve common policy objectives, share the cost of providing government services on an equitable basis, and support favorable legislation at the state and federal levels.

A. Inter local Cooperation in Delivering Services In order to promote the effective and efficient delivery of services, the City shall actively seek to work with other local jurisdictions in joint purchasing consortia, sharing facilities, sharing equitably the costs of service delivery, and developing joint programs to improve service to its citizens. City of Kilgore, TX

B. Legislative Program The City shall cooperate with other jurisdictions to actively oppose any state or federal regulation or proposal that mandates additional City programs or services and does not provide the funding to implement them. Conversely, and as appropriate, the City shall support legislative initiatives that provide more funds for priority local programs.

VIII. Grants

To seek, apply for and effectively administer federal, state and foundation grants-in-aid that address the City’s current priorities and policy objectives.

A. Grant Guidelines The City shall apply, and facilitate the application by others, for only those grants that are consistent with the objectives and high priority needs previously identified by the City Council. The potential for incurring ongoing costs, to include the assumption of support for grant-funded positions from local revenues, will be considered prior to applying for a grant.

B. Indirect Costs The City shall recover full indirect costs unless the funding agency does not permit it. The City may waive or reduce indirect costs if doing so will significantly increase the effectiveness of the grant.

C. Grant Review All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet the City’s policy objectives. If there are cash match requirements, the source of funding shall be identified prior to application. An annual report on the status of grant programs and their effectiveness shall also be prepared.

D. Grant Program Termination The City shall terminate grant-funded programs and associated positions when grant funds are no longer available unless alternate funding is identified.

City of Kilgore, TX

IX. Economic Development

To initiate, encourage and participate in economic development efforts to create job opportunities and strengthen the local economy.

A. Positive Business Environment The City shall endeavor, through its regulatory and administrative functions, to provide a positive business environment in which local businesses can grow, flourish and create jobs. The City Council and City staff will be sensitive to the needs, concerns and issues facing local businesses.

B. Commitment to Business Expansion, Diversification, and Job Creation The City shall encourage and participate in economic development efforts to expand Kilgore’s economy and tax base and to increase local employment. These efforts shall not only focus on newly developing areas but also on other established sections of Kilgore where development can generate additional jobs and other economic benefits.

C. Tax Abatements The City Council may issue tax abatements to encourage commercial growth and development throughout Kilgore. The City shall use due caution in the analysis of any tax incentives used to encourage development. Factors considered in evaluating proposed abatements for development include the location of the project, its size, the number of temporary and permanent jobs created, the costs and benefits for the City and its impact on Kilgore’s economy. The City will periodically review tax abatement contracts to ensure the community is receiving promised benefits, and the Council may seek to renegotiate an abatement contract if it is determined that the firm receiving the abatement has failed to keep its part of the agreement.

D. Increase Non‐residential Share of Tax Base The City’s economic development program shall seek to expand the non-residential share of the tax base to decrease the tax burden on residential homeowners.

E. Coordinate Efforts with Other Jurisdictions The City’s economic development program shall encourage close cooperation with other local jurisdictions, chambers of commerce, and groups interested in promoting the economic well- being of this area.

F. Use of Other Incentives The City may use enterprise zones, public improvement districts, tax-increment reinvestment zones or other incentives as allowed by law to encourage business expansion. The City shall also coordinate with state and federal agencies on offering any incentive programs they may provide for potential economic expansion.

X. Fiscal Monitoring

To prepare and present regular reports which analyze, evaluate and forecast the City’s financial performance and economic condition.

City of Kilgore, TX

A. Financial Status and Performance Reports Monthly reports comparing expenditures and revenues to current budget, projecting expenditures and revenues through the end of the year, noting the status of fund balances to include dollar amounts and percentages, and outlining any remedial actions necessary to maintain the City’s financial position shall be prepared for review by the City Manager and the Council.

B. Five‐year Forecast of Revenues and Expenditures A five-year forecast of revenues and expenditures, to include a discussion of major trends affecting the City’s financial position, shall be prepared in anticipation of the annual budget process. The forecast shall also examine critical issues facing the City, economic conditions, and the outlook for the upcoming budget year. The document shall incorporate elements of the International City Management Association financial trend monitoring system to provide further insight into the City’s financial position and to alert the Council to potential problem areas requiring attention.

C. Annual Status Report on Capital Projects A summary report on the contracts awarded, capital projects completed and the status of the City’s various capital programs will be prepared annually and presented to the City Manager and the Council.

D. Compliance with Council Policy Statements The Financial Management Policy Statements will be reviewed annually by the Council and updated, revised or refined as deemed necessary. Policy statements adopted by the Council are guidelines, and occasionally, exceptions may be appropriate and required. However, exceptions to stated policies will be specifically identified, and the need for the exception will be documented and fully explained.

XI. Financial Consultants

To employ the assistance of qualified financial advisors and consultants as needed in the management and administration of the City’s financial functions. These areas include but are not limited to investments, debt administration, financial accounting systems, program evaluation, and financial impact modeling. Advisors shall be selected on a competitive basis using objective criteria and requests for proposals based on the scope of the work to be performed.

XII. Accounting, Auditing, and Financial Reporting

To comply with prevailing local, state, and federal regulations relative to accounting, auditing, and financial reporting, accounting practices and financial reporting shall conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants, (AICPA), and the Government Finance Officers Association (GFOA). The City Council shall select an independent firm of certified public accountants to perform an annual audit of all operations.

City of Kilgore, TX

CITY OF KILGORE INVESTMENT POLICY AND STRATEGIES

I. PURPOSE AND NEED FOR POLICY

Chapter 2256 of the Government Code, (“Public Funds Investment Act”), as amended from time to time by the Texas State Legislature requires each city to adopt rules governing its investment practices and to define the authority of the investment official. The Investment Policy addresses the methods, procedures and practices which must be exercised to ensure effective and prudent fiscal management of the City of Kilgore funds.

II. SCOPE OF POLICY

A. Funds Included This investment policy applies to the investment and management of all funds under direct authority of the City of Kilgore, Texas, at the present time and any funds to be created in the future. All funds may be pooled for investment purposes and shall include but not limited to the following funds: . General Fund . Enterprise Funds . Special Revenue Funds . Capital Project Funds . Debt Service Funds . Internal Service Funds . Component Unit Funds managed by City

B. Funds Excluded This policy shall not govern funds which are managed under separate investment programs in accordance with Section 2256.004 of the Act. Such funds currently include: funds established by the City for deferred employee compensation plans, the city’s participation in the Texas Municipal Retirement System, and defeased bonds that are held in trust escrow accounts.

III. PRUDENCE

Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. In determining whether an investment official has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration:

(1) The investment of all funds, or funds under the City’s control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment; and

(2) Whether the investment decision was consistent with the written investment policy of the City.

City of Kilgore, TX

All investment officials will seek to act responsibly as custodians of the public trust. Investment officials will avoid any transaction that might impair public confidence in the City’s ability to govern effectively. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism which is worthy of the public trust.

IV. OBJECTIVES OF POLICY

The primary objectives of the City of Kilgore investment activities shall be: Safety, Liquidity, Yield, and Public Trust. It is the policy of the City of Kilgore to invest public funds in a manner which is consistent with state and federal law that will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City. The safety of the principal invested always remains the primary objective. All investments shall be designed and managed in a manner responsive to the public trust.

Safety: Preservation of capital and protection of investment principal is the foremost objective of the City. Investments of the City of Kilgore shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The City’s investment portfolio shall be diversified to avoid incurring unreasonable market risks.

Liquidity: The City of Kilgore’s investments will be structured to enable the City to meet all operating requirements, which can be reasonably anticipated. Liquidity will be achieved by matching investment maturities with forecasted cash flow requirements.

Yield: It shall be the design of this policy to earn the greatest return on investments with safety as the primary and liquidity being the secondary objectives of the portfolio structure. The maximum allowable stated maturity of any individual investment owned by the City of Kilgore shall not exceed two years unless approved by the City Council.

Public Trust: Officials of the City of Kilgore with investment authority shall seek to act responsibly as custodians of the public trust. All officials of the City of Kilgore shall avoid any transaction, which might impair public confidence in the City’s ability to govern effectively. The City of Kilgore investment portfolio shall be open public records and shall be made readily available upon request by the Mayor and City Council. Reports of the investment portfolio shall be made to the Mayor and City Council quarterly.

V. RESPONSIBILITY AND CONTROL

Delegation of Authority and Training The City Manager and his designee are designated as the Investment Officers for the City of Kilgore and are responsible for all investment activities. Investment Officers of the City, as required by law, must attend a training session within 6 months of assuming their duties. Additionally, Investment Officers must receive at least 10 hours of training not less than once every two fiscal years. Such training shall be provided by an independent source other than a Business Organization with whom the City of Kilgore may engage in an investment transaction.

City of Kilgore, TX

Internal Controls The Investment Officers are responsible for establishing and maintaining an internal control structure designed to ensure the assets of the City of Kilgore are protected from loss, theft or misuse. The Investment Officers shall annually provide for the independent review by an external auditor to assure compliance with policies and procedures.

The Investment Officers, acting in good faith and in accordance with this policy, exercising due diligence, shall be relieved of personal liability for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion to the Mayor and City Council and that appropriate and immediate action by the Investment Officer is taken to control adverse developments.

The Investment Officers shall refrain from personal business activity that could conflict with proper execution of the City’s investment program. An investment officer of the City who has a personal business relationship with a business organization offering to engage in an investment transaction with the City shall file a statement disclosing that personal business interest. An investment officer who is related within the second degree of affinity or consanguinity to a seller of investments to the City shall file a statement disclosing that relationship with the Texas Ethics Commission and the City Council. For purposes of this section, an investment officer has a personal business relationship with a business organization if the investment officer:

(1) Owns 10% or more of the voting stock (2) Owns $5,000 or more of the fair market value (3) Receives funds in excess of 10% of gross income (4) Acquires personal investment equal to $2,500 or more

VI. AUTHORIZED INVESTMENTS AND STRATEGIES

The Investment Officers shall invest the City of Kilgore funds in accordance with Chapter 2256 of the Texas Government Code. Approved investments are as follows:

(1) Obligations, including letters of credit, of the United States or its agencies and instrumentalities including Federal Home Loan Bank (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Bank (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC).

(2) Direct obligations of the State of Texas or its agencies and instrumentalities and direct obligations of any other state or political subdivision rated not less than A or its equivalent.

(3) Depository Banks and Credit Unions in Texas which are insured by FDIC or NCUA.

(4) Local Government Investment Pools authorized under Section 2256.016 of the Texas Government Code which invest in instruments and follow practices allowed by current law. A pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one nationally recognized rating service.

City of Kilgore, TX

(5) Certificates of Deposits and Share Certificates authorized under Section 2256.010 of the Texas Government Code.

(6) Security and Exchange Commission registered no-load money market mutual funds

If an investment in the City’s portfolio becomes an unauthorized investment due to changes in the Investment Policy of the Public Funds Investment Act, or an authorized investment is rated in a way that causes it to become an unauthorized investment, the investment officials of the City shall review the investment and determine whether it would be more prudent to hold the investment until its maturity, or to redeem the investment. Officials shall consider the time remaining until maturity of the investment, the quality of the investment, and the quality and amounts of any collateral which may be securing the investment in determining the appropriate steps to take.

VII. PORTFOLIO AND INVESTMENT ASSET PARAMETERS

A. Bidding Process for Investments

It is the policy of the City to require competitive bidding for all investment transactions (securities and bank C.D’s) except for: (1) Transactions with money market mutual funds and local government investment pools (which are deemed to be made at prevailing market rates): and (2) Treasury and agency securities purchased at issue through an approved broker/dealer. At least three bids or offers must be solicited for all other investment transactions. In a situation where the exact security being offered is not offered by other dealers, offers on the closest comparable investment may be used to establish a fair market price of the security. Security swaps are allowed as long as maturity extensions, credit quality changes and profits or losses taken are within the other guidelines set forth in this policy.

B. The following maximum limits, by instrument, are established for the City’s total portfolio: . U.S. Treasury Notes/Bills…………………………….…… 50% . U.S. Government Agencies & Instrumentalities…. 75% . State and Local Obligations ……...……………………. 75% . Certificates of Deposit………………………………………. 100% . Money Market Mutual Funds…………………………….. 25% . Local Government Investment Pools…………….…… 100%

The maximum maturity permitted in all funds except Reserve funds will be two years. The portfolio, excluding Reserve funds, will be structured to maintain a maximum dollar weighted average maturity of 1 year. The maximum maturity permitted in Reserve funds will be three years The maximum dollar weighted average maturity of Reserve funds will be 18 months.

VIII. AUTHORIZED BROKER/DEALERS AND FINANCIAL INSTITUTIONS

A. Investment officials will maintain a list of financial institutions and broker/dealers selected by credit worthiness, who are authorized to provide investment services to the City. These firms may include: . All primary government securities dealers; and

City of Kilgore, TX

. Those regional broker/dealers who quality under Securities and Exchange Commission Rule 15C3-1 (uniform net capital rule), and who meet other financial credit criteria standards in the industry.

B. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must supply the investment officials with the following: . Audited financial statements; . Proof of National Association of Securities Dealers (N.A.S.D.) certification, unless it is a bank; . Resumes of all sales representatives who will represent the financial institution or broker/dealer firm in dealings with the City; and . An executed written instrument, by the qualified representative, in a form acceptable to the City and the business organization substantially to the effect that the business organization has received and reviewed the investment policy of the City and acknowledges that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the City and the organization that are not authorized by the City’s investment policy.

IX. INVESTMENT COLLATERAL AND SAFEKEEPING

The City’s depository bank shall comply with Chapter 2257 of the Government Code, Collateral for Public Funds, as required in the City’s bank depository contract. Depositor’s holding deposits and investments of the City funds that are secured by pledged collateral, shall anticipate market changes. The level of security and collateralization will be equal to or greater than 102% of market value of principal and accrued interest on the deposits or investments less an amount insured by the FDIC or NCUA. Evidence of the pledged collateral shall be maintained by the City Investment Officers. Collateral shall be reviewed to assure that the market value of the pledged securities is adequate.

The City of Kilgore shall accept only the following collateral and securities: . FDIC or NCUA insurance coverage . A bond, certificate of indebtedness or Treasury Note of the United States, or other evidence of indebtedness of the United States that is guaranteed as to principal and interest by the United States. . Obligations, the principal and interest on which are unconditionally guaranteed or insured by the State of Texas . A bond of the State of Texas or of a county, city or other political subdivision of the State of Texas having been rated as investment grade (no less that “A” or its equivalent) by a nationally recognized rating agency.

All collateral shall be subject to inspection and audit by the City’s independent auditor.

All investments except funds placed in investment pools or money market mutual funds will be made on a delivery versus payment basis to the City’s designated depository safekeeping account. The depository bank will promptly issue a safekeeping receipt to the Investment Officer to verify the City has perfected interest in any investment placed in the account.

City of Kilgore, TX

X. INVESTMENT REPORTING AND PERFORMANCE EVALUATION

An investment Officer shall prepare and submit to the members of the City Council a written report showing the cash and investment positions of all City Funds. The report shall be submitted to the City Council within 45 days following the end of the quarter.

The Report will include: . A full description of individual securities held at the end of the reporting period based on amortized value. . The Fund to which the cash or investment belongs. . The source location of the invested funds. . The average maturity of each portfolio. . The rate of return being earned on the investments. . Unrealized gains or losses by security and total portfolio. . Overall change in market value during the period as a measure of volatility. . Weighted average yield of the portfolio and yield of its benchmark. . Earnings (accrued plus net amortization) for the period. . Analysis of the total portfolio by market sector and maturity. . A statement that the investments comply with the adopted policy of the City and the relevant provisions of the Public Funds Investment Act as amended.

XI. INVESTMENT POLICY AND STRAGEGIES ADOPTION

The City of Kilgore’s Investment Policy and Strategies shall be adopted by resolution by the City Council. The City Council is required by state statute and by this investment policy to review this investment policy and investment strategies not less than annually and to adopt a resolution stating the review has been completed and recording any changes made to either the policy or strategy statements.

City of Kilgore, TX

Approved Broker/Dealer List

. Int’l FC Stone (Treasuries & Agencies) . Hapoalim Securities (Treasuries & Agencies) . Mizuho Securities (Treasuries & Agencies) . Stifel, Nicolaus & Co. (All permitted securities) . Bank of America Merrill Lynch (All permitted securities) . Great Pacific (All permitted securities)

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CITY OF KILGORE CAPITALIZATION POLICY FOR CAPITAL ASSETS

31.1 Purpose:

To establish a standard for recording, tracking, capitalizing and depreciating the City’s Capital Assets.

31.2 Policy:

The acquisition of capital-type items that meet the definition of a Capital Asset will be recorded as capital expenditure. All other additions not meeting the criteria will be recorded as operating expense. Capital expenditures exceeding capitalization thresholds will be capitalized and depreciated in accordance with GASB 34.

31.3 Definitions:

Capital Asset – an asset that is used in operations and benefits more than one fiscal period with a cost of $2,500 or more. Capital Assets include land, land improvements, easements, buildings and improvements, vehicles, machinery, equipment, infrastructure and all other tangible or intangible assets that are used in operations and have initial useful lives extending beyond a single fiscal period. The acquisition or improvements of and additions to Capital Assets are recorded in capital outlay accounts. Capital-type expenditures not meeting the Capital Asset definition are expensed (recorded as an operating expense).

Capital Asset Revaluation - All additions, improvements and repairs to Capital Assets which increase the economic benefit of the asset, are added to the original cost of the asset. Routine costs incurred to maintain the asset in its operating condition are expensed. The revalued asset must be properly classified based on the existing capitalization policy.

Capitalization - For GASB compliance, capitalization is a financial reporting issue concerned with the reporting of Capital Assets on the balance sheet.

Capitalization Threshold – The monetary criterion used to determine whether a given Capital Asset should be reported on the balance sheet or expensed. The City’s minimum capitalization threshold is $5,000. The only exception to this rule is land, which is always capitalized. There are different capitalization thresholds for different classes of Capital Assets. Capital Assets are capitalized only if they have an estimated useful life of at least two (2) years following the date of acquisition. Assets meeting the capitalization threshold will be depreciated.

Depreciation – the process of allocating the cost of a Capital Asset over a period of time rather than deducting the cost as an expense in the year of acquisition. The straight-line method of depreciation will be used.

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GASB 34 – authoritative statement issued by the Governmental Accounting Standards Board that establishes new financial reporting requirements for state and local governments.

Infrastructure Assets – long-lived assets that are normally stationary in nature and can be preserved for a much greater number of years than most Capital Assets. Examples include roads, bridges, sidewalks, storm water systems, water and sewer systems, park facilities and lighting systems.

Property Accounting System – a perpetual inventory of City-owned tangible personal property consisting of capital equipment with a cost of $2,500 or more and a useful life of two (2) years.

Useful Life – the estimated number of months or years that an asset can be used for the purpose for which it was purchased.

31.4 Procedures:

Capital Asset acquisition:

Capital Assets are recorded at cost and include ancillary charges necessary to place the asset into its intended location and condition for use. Ancillary charges include costs directly attributable to asset acquisition, such as freight and transportation charges, site preparation and professional fees. Donated Capital Assets should be recorded at their estimated fair market value.

Costs subsequent to acquisition:

For major Capital Assets, after the asset has been placed in service, additional costs may be incurred ranging from ordinary repairs to significant additions. Certain types of expenditures add value to the underlying asset whereas other types of expenditures are merely a current period expense.

Capital Asset Revaluation

Costs incurred to achieve greater future benefit and to increase the future service potential of the asset are recorded as capital expenditures. Costs that merely maintain the existing condition of the asset or restore it to normal operating efficiency are expensed. If the costs are determined to be capital expenditures, the revalued asset must be reclassified based on the capitalization policy.

The distinction between a Capital Asset and expenditure is not always clear-cut and allows for professional judgment.

In most cases, consistent application of a capital/expense policy is justified as more important than attempting to provide general theoretical guidelines.

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Generally, three major types of expenditures are incurred relative to existing assets.

1. Additions – Increase or extension of existing asset 2. Improvement and replacements – Substitution of an improved asset for an existing one 3. Repairs – Expenditures that maintain assets in condition for operation.

Additions An addition to an existing asset is recorded as capital expenditure because a new asset has been created. The addition of a wing to a building or the addition of another lane to an existing road, for example, increases the service potential of the facility and should be capitalized.

Improvements and Replacements Improvements (or betterments) and replacements are substitutions of one asset for another. The distinction between an improvement and a replacement is that an improvement is the substitution of a better asset for the one currently used. In the case of streets and roads, if the work done impacts the “base” structure, the cost should be capitalized (i.e. mill and overlay or full depth reconstruction). Otherwise it should be expensed as repair and maintenance. A replacement is the substitution of a similar asset. Improvements and replacements occur as the result of modernizing or rehabilitating older buildings or equipment. If the future service potential of the existing asset is increased, the improvement or replacement should be capitalized. Otherwise it should be expensed.

Repairs and Maintenance Ordinary repairs are expenditures made to maintain Capital Assets in operating condition or to restore the asset to normal operating efficiency. Replacements of minor parts, lubricating and adjusting, repainting, road resurfacing, pothole and culvert repair are examples of ordinary operating expense.

If a major repair to a plant asset, such as an overhaul, occurs, several periods will benefit and the cost should be handled as addition, improvement or replacement depending on the type of repair made.

31.5 Asset Categories / Useful Life

The City’s Capital Assets consist of General Capital Assets and Enterprise Capital Assets. For tracking purposes, all Capital Assets will be grouped by categories and assigned a useful life based on that category. General Capital Assets groupings and useful life are as follows:

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Asset Useful Life in Years Land Land Improvements 10 - 45 Buildings and Improvements 25 - 50 Infrastructure: Streets 20 - 30 Trail/Bicycle Paths/Sidewalks 20 - 30 Parking Lots 12 - 20 Landscaping/Irrigation 10 Traffic & Street Lights 15 - 20 Signage 7 - 10 Bridges 45 Storm Water Systems 30 - 40 Parks Facilities: Fencing 20 Athletic Fields 20 Bleachers 20 Outdoor Lighting 20 Motor Vehicles: Police Vehicles 3 - 7 Heavy Trucks 5 - 10 Light Cars & Trucks 3 - 7 Fire Trucks 10 Machinery and Equipment: Fire Apparatus 5 - 20 Equipment 5 - 20 Office Furniture and Equipment 5 - 20 Computer / Networks 3 - 5

Enterprise Capital Assets are grouped in following categories:

Land Land Improvements 10 - 45 Plant and Facilities 25 - 40 Water Wells 25 - 40 Transmission and Distribution 25 - 40 Collection and Transmission 25 - 40 Lift Stations 25 - 40 Meter System 10 - 15 Motor Vehicles: Heavy Trucks 5 - 10 Light Cars & Trucks 3 - 7 Machinery and Equipment: Equipment 5 - 20 Office Furniture and Equipment 5 - 20 Computer / Networks 3 - 5

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The City will depreciate Capital Assets meeting the capitalization threshold using the straight-line method of depreciation.

31.6 Capitalization Thresholds

The threshold levels for capitalizing and depreciating Capital Assets depend on their estimated useful lives and their cost. All individual assets with a cost exceeding what is listed in the various asset categories listed below and an estimated useful life of two (2) years or more will be capitalized.

For capitalization purposes, internal labor and other internal expenses will be capitalized in the appropriate category.

For accountability purposes, the City will continue to track machinery and equipment, vehicles and computer equipment using a Master Listing which is maintained in an excel spreadsheet.

The following thresholds for Capital Assets will be used for tracking and inventory purposes and capitalization and depreciation purposes:

ASSET CATEGORY TRACKING AND CAPITALIZE AND INVENTORY DEPRECIATE

Land Cost Capitalize only Land Improvements Cost $25,000 Buildings $2,500 $25,000 Building Improvements $2,500 $25,000 Infrastructure $2,500 $25,000 Machinery & Equipment $2,500 $5,000 Motor Vehicles $2,500 $5,000 Computers / Networks $2,500 $5,000

Depreciation Convention

To avoid the complications of depreciating each asset from the specific date on which it was placed in service, the City will adopt the full-month convention where depreciation is taken from the first day of the month in which the asset is placed in service regardless of the actual day of the month it was placed in service. If the asset is disposed of before the end of the estimated useful life, no depreciation is allowed for the month of disposition.

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BUDGET SUMMARY ALL FUNDS

FY 2021 OPERATING FUND BUDGET SUMMARY

REVENUE SUMMARY

FY 2018 FY 2019 FY 2020 FY 2021 FUNDS ACTUAL ACTUAL BUDGET BUDGET

REVENUES GENERAL FUND$ 17,611,854 $ 18,438,995 $ 18,227,160 $ 16,875,367 UTILITY FUND 8,115,384 6,975,276 6,745,732 6,892,756 UTILITY DEBT SERVICE FUND 282,575 726,425 668,750 1,033,278 GENERAL DEBT SERVICE FUND 305,731 397,098 404,098 401,098 HOTEL/MOTEL OCCUPANCY TAX FUND 321,000 377,158 351,000 251,000 EMPLOYEE BENEFIT FUND 1,620,717 1,926,904 1,824,668 1,834,668 HOSPITAL FUND 388,174 429,404 445,500 433,000 GRANTS ‐ ‐ ‐ ‐ 911 FUND 104,354 106,252 91,500 91,200 CEMETERY PERPETUAL CARE FUND 137,158 177,249 124,000 124,000 K‐9 DRUG DOG FUND 767 536 560 600 SEWER RESTORATION 398.00 578.53 400 ‐ GOLF FUND 539,139.00 940,339.00 473,500 502,900 CAPITAL IMPROVEMENTS‐GENERAL GOVT 2,060,169.45 3,786,032.57 4,505,692 ‐ CAPITAL IMPROVEMENTS‐UTILITIES 2,815,872.83 1,921,164.60 1,553,982 3,905,000 CAPITAL EQUIPMENT REPLACEMENT FUND 592,605 587,979 433,539 632,581 IT FUND 509,909 509,909 742,959 681,435 FEDERAL DRUG SEIZURE FUND 589,773 40,472 57,000 20,500 CHAPETER 59 SEIZURE FUND 7,453 239 175 ‐ KYSSED FUND 59 79 6,046 2,000 COURT TECHNOLOGY FUND 9,882 8,332 8,000 6,000 COURT SECURITY FUND 8,786 8,786 6,000 7,200 MAIN STREET HOTEL TAXES FUND 83 120 90 ‐ MAIN STREET DOWNTOWN FUND 220 320 240.00 ‐ KILGORE ARTS FESTIVAL FUND 2,143 5,727 5,200 5,200

TOTAL REVENUE $ 36,024,207 $ 37,365,375 $ 36,675,791 $ 33,699,783

GENERAL FUND

REVENUE SUMMARY

FY 2021 Proposed Revenue

$18,000,000 $16,875,367 $16,000,000 $14,000,000 $12,000,000 $10,000,000

$8,000,000 6,892,756 $6,000,000 3,905,000 $4,000,000 1,834,668 1,033,278 502,900 681,435 $2,000,000 632,581 433,000 401,098 2,000 251,000 ------124,000 91,200 20,500 600 6,000 7,200 5,200 $- GRANTS IT FUND 911 FUND GOLF FUND KYSSED FUND UTILITY FUND UTILITY GENERAL FUND HOSPITAL FUND K-9 DRUG DOG FUND CAPITAL EQUIPMENT… SEWER RESTORATION COURT SECURITY FUND CAPITAL IMPROVEMENTS-… CAPITAL IMPROVEMENTS-… EMPLOYEE BENEFIT FUND COURT TECHNOLOGY FUND CHAPETER 59 SEIZURE FUND UTILITY DEBT SERVICE FUND DEBT SERVICE UTILITY CEMETERY PERPETUAL CARE… GENERAL DEBT SERVICE FUND GENERAL DEBT FEDERAL DRUG SEIZURE FUND KILGORE ARTS FESTIVAL FUND HOTEL/MOTEL OCCUPANCY TAX… HOTEL/MOTEL MAIN DOWNTOWN FUND STREET MAIN HOTEL TAXES FUND STREET

FY 2021 PROPOSED REVENUE

CHAPETER 59 SEIZURE CAPITAL EQUIPMENT KYSSED FUND, 0% REPLACEMENT FUND, 2% FUND, 0% COURT SECURITY FUND, FEDERAL DRUG SEIZURE 0% FUND, 0% MAIN STREET CAPITAL IMPROVEMENTS‐ DOWNTOWN FUND, 0% UTILITIES, 12% IT FUND, 2% KILGORE ARTS FESTIVAL FUND, 0% CAPITAL IMPROVEMENTS‐ COURT TECHNOLOGY GENERAL GOVT, 0% GOLF FUND, 1% FUND, 0% K‐9 DRUG DOG FUND, 0% MAIN STREET HOTEL CEMETERY PERPETUAL TAXES FUND, 0% CARE FUND, 0% 911 FUND, 0% GRANTS, 0% SEWER RESTORATION, HOSPITAL FUND, 1% 0% EMPLOYEE BENEFIT FUND, 5%

HOTEL/MOTEL OCCUPANCY TAX FUND, 1% GENERAL DEBT SERVICE FUND, 1%

UTILITY DEBT SERVICE FUND, 3%

UTILITY FUND, 20% GENERAL FUND, 50%

FY 2021 OPERATING FUND BUDGET SUMMARY

EXPENSE SUMMARY

FY 2018 FY 2019 FY 2020 FY 2021 FUNDS ACTUAL ACTUAL BUDGET BUDGET

EXPENSE GENERAL FUND$ 16,915,373 $ 20,724,089 $ 18,290,362 $ 16,875,367 UTILITY FUND 5,012,888 10,712,085 6,562,106 9,350,407 UTILITY DEBT SERVICE FUND 282,575 282,850 282,975 667,400 GENERAL DEBT SERVICE FUND 404,676 396,100 382,250 398,550 HOTEL/MOTEL OCCUPANCY TAX FUND 603,732 428,089 399,723 237,249 EMPLOYEE BENEFIT FUND 1,628,043 1,669,353 1,790,000 1,790,000 HOSPITAL FUND 955,574 885,771 627,850 625,297 GRANTS - - - - 911 FUND 84,226 64,204 115,437 93,911 CEMETERY PERPETUAL CARE FUND 38,382 545,913 22,000 - K-9 DRUG DOG FUND 1,758 4,689 2,250 2,250 SEWER RESTORATION 9 9 25,000 25,000 GOLF FUND 499,232 459,293 469,830 536,003 CAPITAL IMPROVEMENTS-GENERAL GOVT 1,067,986 2,656,527 4,783,608 - CAPITAL IMPROVEMENTS-UTILITIES 1,192,233 2,454,923 1,835,776 - CAPITAL EQUIPMENT REPLACEMENT FUND 325,001 367,902 562,000 562,000 IT FUND 555,785 480,335 782,291 681,432 FEDERAL DRUG SEIZURE FUND 144,586 152,126 100,000 - CHAPETER 59 SEIZURE FUND 2,003 261 - - KYSSED FUND - 707 2,000 2,000 COURT TECHNOLOGY FUND 5,416 4,190 8,000 3,500 COURT SECURITY FUND 2,775 2,778 6,000 0 MAIN STREET HOTEL TAXES FUND 2 2 2 2 MAIN STREET DOWNTOWN FUND 5 5 - - KILGORE ARTS FESTIVAL FUND 4,436 6,687 5,200 5,200

TOTAL EXPENSE $ 29,726,696 $ 42,298,889 $ 37,054,660 $ 31,855,568

GENERAL FUND

EXPENSE SUMMARY FY 2021 PROPOSED EXPENSE

$18,000,000 $16,875,367 $16,000,000 $14,000,000 $12,000,000

$10,000,000 9,350,407 $8,000,000 $6,000,000 $4,000,000 1,790,000 667,400 536,003 681,432 625,297 $2,000,000 562,000 398,550 25,000 - - 2,000 2 - 237,249 - - - - 93,911 3,500 0 5,200 2,250 $- GRANTS IT FUND 911 FUND GOLF FUND KYSSED FUND UTILITY FUND UTILITY GENERAL FUND HOSPITAL FUND K-9 DRUG DOG FUND SEWER RESTORATION COURT SECURITY FUND EMPLOYEE BENEFIT FUND COURT TECHNOLOGY FUND CHAPETER 59 SEIZURE FUND UTILITY DEBT SERVICE FUND DEBT SERVICE UTILITY GENERAL DEBT SERVICE FUND GENERAL DEBT FEDERAL DRUG SEIZURE FUND KILGORE ARTS FESTIVAL FUND MAIN DOWNTOWN FUND STREET MAIN HOTEL TAXES FUND STREET CEMETERY PERPETUAL CARE FUND CAPITAL IMPROVEMENTS-GENERAL… CAPITAL IMPROVEMENTS-UTILITIES CAPITAL EQUIPMENT REPLACEMENT… HOTEL/MOTEL OCCUPANCY TAX FUND HOTEL/MOTEL

FY 2021 PROPOSED EXPENSE

CHAPETER 59 SEIZURE CAPITAL EQUIPMENT KYSSED FUND, 0% REPLACEMENT FUND, 2% FUND, 0% CAPITAL IMPROVEMENTS‐ FEDERAL DRUG SEIZURE COURT SECURITY FUND, 0% UTILITIES,CAPITAL 0% IMPROVEMENTS‐ FUND, 0% GENERAL GOVT, 0% MAIN STREET DOWNTOWN GOLF FUND, 2% IT FUND, 2% FUND, 0% K‐9 DRUG DOG FUND, 0% KILGORE ARTS FESTIVAL CEMETERY PERPETUAL FUND, 0% CARE FUND, 0% COURT TECHNOLOGY FUND, 911 FUND, 0% GRANTS, 0% 0% MAIN STREET HOTEL TAXES HOSPITAL FUND, 2% EMPLOYEE BENEFIT FUND, SEWER RESTORATION, 0% FUND, 0% HOTEL/MOTEL OCCUPANCY6% TAX FUND, 1% GENERAL DEBT SERVICE FUND, 1%

UTILITY DEBT SERVICE FUND, 2%

UTILITY FUND, 29% GENERAL FUND, 53%

KILGORE The City of Stars

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OPERATING BUDGET

GENERAL FUND

City of Kilgore, TX 2021

GENERAL FUND

SUMMARY OF REVENUES AND EXPENDITURES

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGETED PROPOSED BUDGET

Total Revenues$ 17,611,854 $ 18,438,995 $ 18,227,160 $ 16,875,367

Total Expenditures$ 16,803,394 $ 15,654,524 $ 17,293,362 $ 16,719,367

Surplus/(Deficit) $ 808,461 $ 2,784,471 $ 933,798 $ 156,000

$18,500,000

$18,000,000

$17,500,000

$17,000,000

$16,500,000

$16,000,000

$15,500,000

$15,000,000

$14,500,000

$14,000,000 1234 Total Revenues $17,611,854 $18,438,995 $18,227,160 $16,875,367 Total Expenditures $16,803,394 $15,654,524 $17,293,362 $16,719,367

City of Kilgore, TX 2021

GENERAL FUND

REVENUE SUMMARY

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGETED PROPOSED BUDGET

REVENUES SALES TAX$ 7,048,607 $ 6,735,627 $ 6,200,000 $ 4,700,000 AD VALOREM TAXES$ 5,966,680 $ 6,246,430 $ 6,369,712 $ 6,260,000 OTHER TAXES$ 115,365 $ 49,018 $ 122,000 $ 133,000 FRANCHISE FEES$ 703,874 $ 655,741 $ 710,000 $ 665,000 SOLID WASTE FEES$ 2,408,988 $ 2,294,390 $ 2,395,000 $ 2,465,000 PERMITS$ 67,704 $ 118,922 $ 67,900 $ 78,450 FINES & FEES$ 498,757 $ 424,086 $ 500,000 $ 500,000 INTERGOVERNMENTAL$ 75,590 $ 167,572 $ 64,000 $ 64,000 POOL FEES$ 16,100 $ 43,924 $ 36,500 $ 38,500 MISC. REVENUES$ 674,270 $ 1,157,759 $ 1,244,204 $ 1,146,796 TRANSFER IN$ 35,920 $ 545,526 $ 517,844 $ 153,500 USE OF FUND BALANCE$ - $ - $ - $ 671,121

TOTAL REVENUE $ 17,611,854 $ 18,438,995 $ 18,227,160 $ 16,875,367

FY 2021 Proposed Revenue

7000000

6000000

5000000

4000000

3000000

2000000

1000000

0

City of Kilgore, TX 2021

FY 2021 PROPOSED REVENUE

USE OF FUND TRANSFER IN BALANCE 1% 2% MISC. REVENUES 20% SALES TAX 29%

POOL FEES 0% FINES & FEES 3% INTERGOVERNME NTAL 0%

PERMITS SOLID WASTE FEES 0% 11%

FRANCHISE FEES 3% OTHER TAXES 1% AD VALOREM TAXES 30%

City of Kilgore, TX 2021

GENERAL FUND

EXPENDITURES BY DEPARTMENT

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGETED PROPOSED BUDGET

COMMUNITY RELATIONS 38,457 195 0 119,030 ADMINISTRATION 0 454,468 371,795 344,816 FINANCE 305,015 412,784 430,397 461,186 POLICE 288,248 4,311,605 4,578,801 4,708,471 EMERGENCY MGT. 4,569,947 24,377 67,042 48,590 COURT 0 216,759 242,614 237,694 FIRE 184,106 3,143,033 3,275,049 3,253,819 CITY COUNCIL 3,122,490 97,150 88,113 106,919 HUMAN RESOURCES 46,741 0 119,924 131,073 RESCUE 0 100,407 121,522 125,058 STREET MAINT. 102,634 1,373,378 1,921,504 1,249,921 SIGN MAINT. 2,122,839 10,197 10,863 9,618 ROW 7,361 52,894 66,324 68,920 HEALTH/CODE COMPLIANCE 60,800 346,166 356,513 379,836 PARKS 0 1,151,535 1,041,280 1,066,402 SWIMMING POOLS 230,734 144,432 133,004 151,254 CEMETERIES 1,045,895 175,172 166,949 174,851 BUILDING INSPECTION 63,239 224,561 257,786 251,314 LIBRARY 199,860 435,533 451,903 460,268 EQUIPMENT SVCS. 224,775 243,084 293,865 262,666 PLANNING 371,276 129,621 132,619 128,074 GIS 165,403 229 0 0 MAIN STREET 121,040 141,405 246,783 114,600 Contingency 1,393 0 201,171 200,000 Building Maintenance 1,386,750 0 241,574 194,687 Economic Development 0 412,767 450,967 386,300 KMH Park0000 Non-Departmental Gen Gov 2,144,389 2,052,770 2,025,000 2,084,000

TOTAL EXPENDITURES $ 16,803,394 $ 15,654,524 $ 17,293,362 $ 16,719,367

City of Kilgore, TX 2021

GENERAL FUND EXPENDITURES BY DEPARTMENT 5000000 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0

City of Kilgore, TX 2021

GENERAL FUND

EXPENDITURES BY CATEGORY

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGETED PROPOSED BUDGET

PERSONNEL 9,022,163 9,910,920 10,781,285 10,597,126 SUPPLIES 840,060 936,845 1,050,610 1,016,672 CONTRACTUAL SVCS. 2,519,984 2,806,750 3,185,409 2,786,845 UTILITIES 2,372,605 2,221,778 2,317,460 2,368,724 SUNDRY CHARGES 740,977 (308,739) (49,902) (50,000) CAPITAL OUTLAY 32,835 86,969 8,500 0 TRANSFER OUT 1,386,750 5,069,565 997,000 156,000

TOTAL EXPENDITURES $ 16,915,373 $ 20,724,089 $ 18,290,362 $ 16,875,367

GENERAL FUND EXPENDITURES BY CATEGORY

TRANSFER OUT 19%

CAPITAL OUTLAY… SUNDRY CHARGES 0%

UTILITIES 11% PERSONNEL 50%

CONTRACTUAL SVCS. 15%

SUPPLIES 5%

City of Kilgore, TX 2021

Department| ADMINISTRATION

Function

The administrative division includes the city manager, human resources, and city clerk. The City Manager’s office leads, directs and coordinates all City operations and staff, in order to fulfill municipal policies and purposes and to achieve the City Council’s identified vision, mission and strategies for the community. Positions responsible for these functions are the City Manager, City Clerk.

Mission

To provide general management and administrative oversight for all departments. To record, preserve, and distribute all municipal documents as required by the Charter, City Council, and state law. To be responsible for the efficient and effective provision of municipal services through leadership and direction to the staff of the City, and execution of policies approved by the City Council. To recruit and retain a highly qualified work force and to minimize risk to the City.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 350,976 359,301 285,113 279,594 Supplies 14,648 15,811 9,200 11,650 Contractual 37,037 60,315 58,082 74,645 Utilities 19,931 19,041 19,400 19,400 Sundry Charges (117,577) - - - Capital Outlay - - - - Total Budget 305,015 454,468 371,795 385,289

City of Kilgore, TX 2021

Department| COMMUNITY RELATIONS

Function

. Preserve and promote Kilgore . Reporting to the Citizens of Kilgore . Develop new programs and activities

Mission

Promotion of all with the context of historic preservation and new information regarding Kilgore.

Vision

To promote and inform about the City of Kilgore.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - - 140,863 Supplies 146 195 - 5,000 Contractual - - - 29,000 Utilities - - - - Sundry Charges 38,312 - - - Capital Outlay - - - - Total Budget 38,457 195 - 174,863

City of Kilgore, TX 2021

Department| FINANCE

Function

The Finance Department consists of the Finance Director, Controller and an Accounts Payable/Payroll Clerk. The Finance Department is responsible for developing, implementing, and maintaining the City’s financial system in conformity with the Generally Accepted Accounting Principles (GAAP); processing and disbursing funds for payments; process cash collections, managing investments of cash balances; publishing appropriate financial statements, reports, and preparing the City’s annual budget and managing bonded indebtedness. The department strives to review and improve the efficiency and effectiveness of the City’s financial practices.

Mission

To provide financial integrity and dedication to the Citizens of Kilgore; by providing timely, accurate and complete information and support to all other City departments.

Vision

To have Systems and processes in place that allows our team to be the most efficient and successful in serving our Customers.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 206,201 228,311 243,584 266,165 Supplies 3,714 4,489 5,000 4,500 Contractual 162,085 179,983 181,813 190,521 Utilities - - - - Sundry Charges (83,753) - - - Capital Outlay - - - - Total Budget 288,248 412,784 430,397 461,186

City of Kilgore, TX 2021

Department| POLICE

Function . Problem oriented . Protect internal community policing security . Promote and preserve . Crime prevention public order . Routine patrol . Detection and services investigation of crime . Protect public . Create and maintain a properties against acts feeling of security in of vandalism/criminal the community mischief . Crash investigation . Arrests of criminal . Special events/crowd suspects control . Report and records . Operation of management municipal jail . Uphold and enforce . Regulate traffic on the law roads/highways Mission

To protect the lives and property of the people who live, work and play in the City of Kilgore and to enforce laws and ordinances within the framework of the United States Constitution with fairness, honesty and integrity

Vision

The Kilgore Police Department will set the standard for a safe and crime free community through service, professionalism and excellence in policing. This high standard will result in our citizens having a premier quality of life with a strong sense of security, free from crime and fear anywhere within the City Limits of Kilgore.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 3,854,581 3,926,911 4,106,349 4,200,330 Supplies 219,968 211,733 240,476 240,676 Contractual 376,778 404,452 446,318 462,341 Utilities 33,422 30,674 35,560 39,909 Sundry Charges 85,198 - - - Capital Outlay - - - - Total Budget 4,569,947 4,573,771 4,828,703 4,943,255

City of Kilgore, TX 2021

Department| MUNICIPAL COURT

Function

The Municipal Court processes and adjudicates class “C” misdemeanor criminal cases, which occur within the territorial limits of the City. A City Judge, Associate Judge, Court Administrator, and Court Clerk administer the Court.

Mission

To provide a fair, timely, and speedy resolution to cases involving infractions in a manner this is efficient both for the City and for the defendant and/or the complainant. To provide professional court proceedings which follow all applicable laws and ensure the rights of all persons are observed.

Vision

To have Systems and processes in place that allows our team to be the most efficient and successful in serving our Customers.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 120,471 148,965 176,792 161,088 Supplies 2,594 2,772 2,775 2,500 Contractual 58,671 65,021 63,047 74,106 Utilities - - - - Sundry Charges 2,370 - - - Capital Outlay - - - - Total Budget 184,106 216,759 242,614 237,694

City of Kilgore, TX 2021

Department| FIRE

Function . Part of TIFMAS response team . Fire investigation and (Texas Intrastate Fire Mutual prevention Aid System) . Fire protection and response . Provide enhanced EMS covering 75.5 sq. miles response . Provide hazardous material . Public fire and safety response education . Assist with community . Residential inspection and projects Business inspection and plan . Assist other City departments reviews . Assist with traffic control on . Emergency response inside roads and highways City limits, the ETJ, and Gregg . Business fire safety surveys and Rusk counties

Mission

The Kilgore Fire Department is dedicated to protecting lives, property, and the environment through preparedness, prevention, public education, and emergency response with an emphasis on quality services, efficiency, effectiveness, and safety.

Vision

The Kilgore Fire Department vision is to be recognized as an all‐hazards, all risk service provider by developing and maintaining strategic community partnerships, hiring and training exceptional personnel, developing efficiencies in service provision to ensure fiscal sustainability for the organization.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 2,585,403 2,671,024 2,820,516 2,849,590 Supplies 155,601 161,380 175,500 187,310 Contractual 228,135 273,422 248,533 302,419 Utilities 31,532 31,087 30,500 31,000 Sundry Charges 121,818 - - - Capital Outlay - 39,431 - - Total Budget 3,122,490 3,176,345 3,275,049 3,370,319

City of Kilgore, TX 2021

City of Kilgore, TX 2021

Department| CITY COUNCIL

Function

All powers of the city are vested in the elected city council which shall enact local legislation, adopt budgets, determine policies and appoint the City Manager who shall execute the laws and administer the government of the city. The Council consists of a Mayor, Mayor Pro Tem and three council members.

Mission

All Powers of the city are vested in the elected city council which shall enact local legislation, adopt budgets, and determine policies and appoint the City Manager who shall execute the laws and administer the government of the city. The council consists of the Mayor, Mayor Pro tem and three council members.

Vision

To provide effective leadership, high quality services, utilize best practices and promote well‐planned growth while enhancing our community's sense of pride.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - - - Supplies 1,757 1,295 5,500 6,000 Contractual 74,847 95,855 82,613 100,919 Utilities - - - - Sundry Charges (29,863) - - - Capital Outlay - - - - Total Budget 46,741 97,150 88,113 106,919 City of Kilgore, TX 2021

Department| HUMAN RESOURCES

Function

The administrative division includes the city manager, human resources, and city clerk. The City Manager’s office leads, directs and coordinates all City operations and staff, in order to fulfill municipal policies and purposes and to achieve the City Council’s identified vision, mission and strategies for the community. Positions responsible for these functions are the City Manager, City Clerk, and Human Resource Director.

Mission

To provide general management and administrative oversight for all departments. To record, preserve, and distribute all municipal documents as required by the Charter, City Council, and state law. To be responsible for the efficient and effective provision of municipal services through leadership and direction to the staff of the City, and execution of policies approved by the City Council. To recruit and retain a highly qualified work force and to minimize risk to the City.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - 97,903 99,897 Supplies - - 9,300 9,300 Contractual - - 12,721 21,876 Utilities - - - - Sundry Charges - - - - Capital Outlay - - - - Total Budget - - 119,924 131,073 City of Kilgore, TX 2021

Department| RESCUE UNIT

Function . Part of TIFMAS response team . Fire investigation and (Texas Intrastate Fire Mutual prevention Aid System) . Fire protection and response . Provide enhanced EMS covering 75.5 sq. miles response . Provide hazardous material . Public fire and safety response education . Assist with community . Residential inspection and projects Business inspection and plan . Assist other City departments reviews . Assist with traffic control on . Emergency response inside roads and highways City limits, the ETJ, and Gregg . Business fire safety surveys and Rusk counties Mission

The Kilgore Fire Department is dedicated to protecting lives, property, and the environment through preparedness, prevention, public education, and emergency response with an emphasis on quality services, efficiency, effectiveness, and safety.

Vision

The Kilgore Fire Department vision is to be recognized as an all‐hazards, all risk service provider by developing and maintaining strategic community partnerships, hiring and training exceptional personnel, developing efficiencies in service provision to ensure fiscal sustainability for the organization.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 23,457 32,107 35,335 37,175 Supplies 38,809 41,182 59,600 54,600 Contractual 12,809 14,575 20,912 27,333 Utilities 4,536 5,044 5,675 5,950 Sundry Charges - - - - Capital Outlay 23,024 7,500 - - Total Budget 79,611 92,907 121,522 125,058

City of Kilgore, TX 2021

Department| STREET MAINTENANCE

Function . The Street Division includes Street construction Maintenance, Signs and Markers, and . Roadway drainage Right-of-Way Maintenance. . Street sweeping . Roadway maintenance and . Signs and traffic markings

Mission The Kilgore Public Works Department is committed to maintaining and developing public infrastructure for the benefit of our community through planning, design, innovation, and the efficient allocation of resources

Vision Public Works employees will be regarded as professionals who are well‐trained, productive, proactive and above all, dedicated to improving the City of Kilgore. Employees will work together to implement creative and innovative solutions to infrastructure problems, balancing financial realities with the highest level of service available, treating citizens with respect, and earning respect in return. We will strive to be good stewards of our time, efforts and resources and to approach our responsibilities with all due diligence.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 360,619 436,315 623,558 652,420 Supplies 156,034 163,839 225,900 181,571 Contractual 679,412 570,590 859,546 881,712 Utilities 206,686 196,815 204,000 212,040 Sundry Charges 720,088 - - - Capital Outlay - 5,820 8,500 - Total Budget 2,122,839 1,367,558 1,913,004 1,927,743 City of Kilgore, TX 2021

Department| SIGN MAINTENANCE

Function

. Signs and Traffic marking

Mission

The Kilgore Public Works Department is committed to maintaining and developing public infrastructure for the benefit of our community through planning, design, innovation, and the efficient allocation of resources.

Vision

Public Works employees will be regarded as professionals who are well‐trained, productive, proactive and above all, dedicated to improving the City of Kilgore. Employees will work together to implement creative and innovative solutions to infrastructure problems, balancing financial realities with the highest level of service available, treating citizens with respect, and earning respect in return. We will strive to be good stewards of our time, efforts and resources and to approach our responsibilities with all due diligence.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - - - Supplies 6,410 9,057 10,000 8,100 Contractual 35 - 63 618 Utilities 917 1,140 800 900 Sundry Charges - - - - Capital Outlay - - - - Total Budget 7,361 10,197 10,863 9,618

City of Kilgore, TX 2021

Department| ROW MAINTENANCE

Function

. Maintain infrastructure

Mission

The Kilgore Public Works Department is committed to maintaining and developing public infrastructure for the benefit of our community through planning, design, innovation, and the efficient allocation of resources.

Vision

Public Works employees will be regarded as professionals who are well trained, productive, proactive and above all, dedicated to improving the City of Kilgore. Employees will work together to implement creative and innovative solutions to infrastructure problems, balancing financial realities with the highest level of service available, treating citizens with respect, and earning respect in return. We will strive to be good stewards of our time, efforts and resources and to approach our responsibilities with all due diligence.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 14 - 3,000 - Supplies 23,459 19,374 24,250 21,250 Contractual 33,306 31,688 33,074 41,670 Utilities 4,022 1,832 6,000 6,000 Sundry Charges - - - - Capital Outlay - - - - Total Budget 60,800 52,894 66,324 68,920

City of Kilgore, TX 2021

Department| HEALTH & CODE COMP

Function . Code Enforcement: Identify and . Health Investigations: Reduce public investigate violations, ensure health threats through enforcement, compliance through notifications, inspections, education and assistance warnings, citations and education. programs Utilization of Trustee Program

Mission To ensure that the citizens of Kilgore are protected from conditions which are detrimental to health and safety, through the enforcement of environmental and consumer health‐related statutes and ordinances. To provide animal control, vector control and respond to other health‐related complaints.

Vision To help provide measurable reduction in health related issues through monitoring, enforcement, abatement and education

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 116,978 141,575 148,577 172,975 Supplies 16,242 14,571 27,950 27,950 Contractual 83,423 175,438 159,386 158,311 Utilities 14,091 14,581 20,600 20,600 Sundry Charges - - - - Capital Outlay - - - - Total Budget 230,734 346,166 356,513 379,836

City of Kilgore, TX 2021

Department| PARKS

Function

. Maintain parks and facilities, brush . City staff equipment operators are pick up, cleaning of grave spaces, right responsible for mowing, maintaining of way mowing, green waste center, restrooms, playground equipment, daily grounds clean up and litter disposal

Mission

To provide, operate, enhance and maintain a park and recreation system, which enriches the quality of life for residents and visitors alike, and preserve it for future generations

Vision

Enhancing our City by providing and maintaining quality parks that inspire and enrich our community by offering recreational activities and facilities for people of all ages and abilities

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 576,092 601,645 612,622 634,231 Supplies 87,636 121,321 70,800 70,800 Contractual 229,880 328,514 289,108 340,874 Utilities 86,164 65,838 68,750 68,750 Sundry Charges 56,312 - - - Capital Outlay 9,811 34,218 - - Total Budget 1,036,084 1,117,317 1,041,280 1,114,655

City of Kilgore, TX 2021

Department| SWIMMING POOL

Function

. To operate and maintain a swimming . Scheduling and staffing of lessons, free pool to provide swim lessons, public swim and parties for the season swimming, and swim parties

Mission

To provide pool service that is a safe venue for water related activities

Vision

To provide pool services and amenities to meet public need and updated technologies

2021 2018 2019 ADOPTED ACTUAL ACTUAL 2020 BUDGET BUDGET Category Personnel 52,040 99,432 83,655 100,780 Supplies 594 28,088 30,200 30,200 Contractual 7,616 7,947 2,474 3,599 Utilities 2,989 8,965 16,675 16,675 Sundry Charges - - - - Capital Outlay - - - - Total Budget 63,239 144,432 133,004 151,254

City of Kilgore, TX 2021

Department| CEMETERY

Function

. Sale of burial spaces, record keeping, data entry, making graves and monuments

Mission

We will honor, celebrate, and remember life by providing a place of solace and beauty to memorialize the deceased while consoling families and individuals with compassion and dignity. We will strive to create a dignified and respectful environment for those who visit our cemeteries and those with Sepulture rights, by maintaining the peace and serenity of the grounds with the highest standards of care and respect.

Vision

The vision of the City of Kilgore Cemetery Department is to serve the community with a place of burial that provides a peaceful and well‐maintained setting. We will strive to expand the capacity of the cemeteries when possible and remain dedicated to maintaining the sacredness of the grounds.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 23,763 51,000 45,770 46,829 Supplies 9,840 6,622 8,500 8,500 Contractual 111,084 106,211 88,679 95,522 Utilities 55,172 11,338 24,000 24,000 Sundry Charges - - - - Capital Outlay - - - - Total Budget 199,860 175,172 166,949 174,851

City of Kilgore, TX 2021

Department| BUILDING INSPECTION

Function

. The Building Maintenance . The Division is responsible for issuing department provides for the health permits for all new construction, and safety of the community through remodeling, pools, fences, sprinklers, the development and enforcement of drives, walks, and miscellaneous the City’s Building Codes, the contractor’s permits to ensure Development Code, the Code of compliance with the City’s Building Ordinances and other related codes Codes and Ordinances

Mission

To ensure public safety through the enforcement of various construction codes and to foster a cooperative relationship with developers and contractors

Vision

To become a department with a streamlined, developer friendly, plan review and permitting process with multiple qualified inspectors

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 198,256 172,639 234,891 235,510 Supplies 13,646 30,257 5,300 5,800 Contractual 12,753 21,665 17,595 10,004 Utilities 120 - - - Sundry Charges - - - - Capital Outlay - - - - Total Budget 224,775 224,561 257,786 251,314

City of Kilgore, TX 2021

Department| LIBRARY

Function

. The library provides public services in the form of materials, audio books, DVD’S, for circulation, educational data base for reference services and weekly programs to the Kilgore community in order to meet their informational and reading needs.

Mission

The Kilgore Public Library aspires to enrich the lives of our users by providing open access to cultural, intellectual, technological and, informational resources.

Vision

The Vision of the Kilgore Public Library is to be deeply rooted in the community: promoting partnerships, fostering the development of a literate and informed citizenry through free and equal access to cultural, intellectual, recreational and informational resources, and making the most effective use of taxpayer funding.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 239,601 277,680 295,885 298,378 Supplies 67,713 75,246 77,140 77,140 Contractual 40,154 63,719 55,878 61,750 Utilities 20,150 18,889 23,000 23,000 Sundry Charges 3,660 - - - Capital Outlay - - - - Total Budget 371,276 435,533 451,903 460,268

City of Kilgore, TX 2021

Department| EQUIPMENT SERVICES

Function

. This division is responsible for all city vehicle and equipment maintenance, roadside and plant site service calls, and for tracking routine/preventative maintenance.

Mission

The Kilgore Public Works Department is committed to maintaining and developing public infrastructure for the benefit of our community through planning, design, innovation, and the efficient allocation of resources.

Vision

Public Works employees will be regarded as professionals who are well trained, productive, proactive and above all, dedicated to improving the City of Kilgore. Employees will work together to implement creative and innovative solutions to infrastructure problems, balancing financial realities with the highest level of service available, treating citizens with respect, and earning respect in return. We will strive to be good stewards of our time, efforts and resources and to approach our responsibilities with all due diligence.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 180,933 198,742 209,165 210,404 Supplies 17,823 17,297 23,175 23,175 Contractual 15,464 15,986 51,025 18,587 Utilities 8,163 11,059 10,500 10,500 Sundry Charges (56,981) - - - Capital Outlay - - - - Total Budget 165,403 243,084 293,865 262,666

City of Kilgore, TX 2021

Department| PLANNING & ZONING

Function

. Administer the comprehensive plan . Provide staff support to the Planning and involuntary and Zoning Board . Provide staff support to the Main . Administer Flood Plain Program Street Advisory Board . Process zoning application and . Process annexations both voluntary subdivision plats

Mission

The mission of the Planning and Zoning Department is to provide the residents, businesses, and industrial community with fair, progressive, consistent, efficient, and effective development standards and planning programs to protect environmental resources; to encourage citizen participation and communication; to promote effective infrastructure improvement and expansion for the health, safety, and welfare of residents; and to provide high quality development standards to maintain and improve the quality of life in the City and the future growth of the City.

Vision

The vision of the City of Kilgore Cemetery Department is to serve the community with a place of burial that provides a peaceful and well‐maintained setting. We will strive to expand the capacity of the cemeteries when possible and remain dedicated to maintaining the sacredness of the grounds.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 99,978 104,896 106,153 107,928 Supplies 841 1,747 1,500 1,500 Contractual 20,221 22,979 24,966 18,646 Utilities - - - - Sundry Charges - - - - Capital Outlay - - - - Total Budget 121,040 129,621 132,619 128,074

City of Kilgore, TX 2021

Department| MAIN STREET

Function

. Preserve and promote the Downtown District . Maintain data regarding downtown projects and programs . Reporting to Texas Main Street Program . Reporting to Main Street Advisory Board and Council . Develop new programs and activities to serve Downtown

Mission

The mission of the Kilgore Main Street Program is to implement downtown revitalization under the Main Street Four‐Point Approach (Organization, Design, Promotion, and Economic Restructuring, all with the context of historic preservation.

Vision

Kilgore Main Street desires to be one of the premiere downtown development programs in the Country.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 32,800 58,484 115,349 54,417 Supplies 2,584 3,437 5,050 4,400 Contractual 76,354 92,746 126,384 89,743 Utilities - - - - Sundry Charges - - - - Capital Outlay - - - - Total Budget 111,738 154,667 246,783 148,560

City of Kilgore, TX 2021

Department| CONTINGENCY

Function

. To aid in the event of unforeseen and emergency expenses

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - - - Supplies - - - - Contractual - - 1,171 - Utilities - - - - Sundry Charges 1,393 - 200,000 200,000 Capital Outlay - - - - Total Budget 1,393 - 201,171 200,000

City of Kilgore, TX 2021

Department| BUILDING MAINTENCE

Function

. The Building Maintenance . The Division is responsible for issuing department provides for the health permits for all new construction, and safety of the community through remodeling, pools, fences, sprinklers, the development and enforcement of drives, walks, and miscellaneous the City’s Building Codes, the contractor’s permits to ensure Development Code, the Code of compliance with the City’s Building Ordinances and other related codes Codes and Ordinances

Mission

To ensure public safety through the enforcement of various construction codes and to foster a cooperative relationship with developers and contractors

Vision

To become a department with a streamlined, developer friendly, plan review and permitting process with multiple qualified inspectors

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - 103,923 110,551 Supplies - - 29,050 30,750 Contractual - - 108,601 102,706 Utilities - - - - Sundry Charges - - - - Capital Outlay - - - - Total Budget - - 241,574 244,007

City of Kilgore, TX 2021

Department| NON‐DEPARTMENTAL GEN GOV

Function

. Expenses for trash services and City Insurance

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - - - Supplies - - - - Contractual 259,679 247,296 173,000 194,000 Utilities 1,884,710 1,805,474 1,852,000 1,890,000 Sundry Charges - - - - Capital Outlay - - - - Total Budget 2,144,389 2,052,770 2,025,000 2,084,000

KILGORE The City of Stars

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CAPITAL GENERAL PROJECTS FUND

City of Kilgore, TX 2021

CAPITAL IMPROVEMENTS FUND - GENERAL GOVERNMENT FUND #450 / DEPARTMENT #00

FY 2020 FY 2021 OBJECT CATEGORY BUDGET BUDGET REVENUES 3301 FUND BALANCE FROM PRIOR YEAR-USE OF UNALLOCATED PARKS CIP 8001 TRANSFER IN GENERAL FUND- CITY HALL CARPET AND SECURITY 30,000 8001 TRANSFER IN GENERAL FUND- CITY WEBSITE UPDATE 8001 TRANSFER IN GENERAL FUND- ERP SYSTEM UPDATE 8001 TRANSFER IN GENERAL FUND- CITY SHOP PAINT BOOTH 8001 TRANSFER IN GENERAL FUND- MOBLIE COMMAND POST UPGRADES PH.1 8001 TRANSFER IN GF- STATION 1 & 3 DRIVEWAYS, AND S3 BATHROOMS 8001 TRANSFER IN GF- FAÇADE GRANT AND DOWNTOWN BLDG REHAB PROGRAM 8001 TRANSFER IN GENERAL FUND- CITY PARK PLAY EQUIPMENT REHAB PH. 2 8001 TRANSFER IN GENERAL FUND- FRIENDSHIP PARK MATCHING FUNDS 8001 TRANSFER IN GF- SOFTBALL/SOCCER COMPLEX CONCEPT & DESIGN 8001 TRANSFER IN GENERAL FUND- MAIN ST. DESIGN 8001 TRANSFER IN GENERAL FUND- MULTI-USE FIELDS CONCEPT & DESIGN 8001 TRANSFER IN GENERAL FUND- MEADOWBROOK TRAIL REHAB 8001 TRANSFER IN GF- DANVILLE CEMETERY WATER LINE & IRRIGATION 8001 TRANSFER IN GENERAL FUND- LIBRARY MASTER PLAN 8001 TRANSFER IN GF- LIBRARY DRAINAGE DESIGN AND REPAIRS PH1 8001 TRANSFER IN GF- CHANDLER ST. CONCRETE AND MISC UTILITES 8001 TRANSFER IN GENERAL FUND- WELLS ST. CONSTRUCTION 8001 TRANSFER IN GENERAL FUND- TURKEY CREEK BANK STABILIZATION 8001 TRANSFER IN GENERAL FUND- CITY YARD REPAIRS PH II 8001 TRANSFER IN GENERAL FUND- CITY COUNCIL CHAMBERS 175,000 8001 TRANSFER IN GENERAL FUND- STATION 3 REMODEL 250,000 8001 TRANSFER IN GENERAL FUND - GENERATOR FOR STATION 2 35,000 8001 TRANSFER IN GF- DOWNTOWN BUILDING IMPROVEMENT PROGRAM 55,000 8001 TRANSFER IN GF- CITY PARK PLAY EQUIPMENT REHAB PH. 3 15,000 8001 TRANSFER IN GF- SOFTBALL/SOCCER COMPLEX CONSTRUCTION PH 1 3,000,000 8001 TRANSFER IN GENERAL FUND- POOL HOUSE REMODEL 115,000 8001 TRANSFER IN GF- ADDITIONAL SHADE, SURFACING, AND TURF AT POOL 60,000 8001 TRANSFER IN GENERAL FUND- TRAIL PH 2 CONSTRUCTION 75,000 8001 TRANSFER IN GENERAL FUND- LIBRARY DRAINAGE PROJECT 229,192 8001 TRANSFER IN GENERAL FUND- LANTRIP ST. RECONSTRUCTION 350,000 8001 TRANSFER IN GENERAL FUND- CITY YARD REPAIRS PH 2 35,000 REVENUE TOTAL # - 4,424,192 -

City of Kilgore, TX 2021

EXPENDITURES 6821 ENGINEERING/PROFESSIONAL FEES - SOFTBALL/SOCCER COMPLEX CONCEPT & DESIGN 6821 ENGINEERING/PROFESSIONAL FEES - MULTI-USE FIELDS CONCEPT & DESIGN 6821 ENGINEERING/PROFESSIONAL FEES - DANVILLE CEMETERY WATER LINE & IRRIGATION 6821 ENGINEERING/PROFESSIONAL FEES - LIBRARY MASTER PLAN 6821 ENGINEERING/PROFESSIONAL FEES - CHANDLER ST. CONCRETE AND MISC UTILITES 6821 ENGINEERING/PROFESSIONAL FEES - MAIN ST. DESIGN

6822 CONSTRUCTION/LABOR COSTS - CITY HALL CARPET AND SECURITY 30,000 6822 CONSTRUCTION/LABOR COSTS - CITY WEBSITE UPDATE 6822 CONSTRUCTION/LABOR COSTS - ERP SYSTEM UPDATE 6822 CONSTRUCTION/LABOR COSTS - CITY SHOP PAINT BOOTH 6822 CONSTRUCTION/LABOR COSTS - MOBLIE COMMAND POST UPGRADES PH.1 6822 CONSTRUCTION/LABOR COSTS - STATION 1 & 3 DRIVEWAYS, AND S3 BATHROOMS 6822 CONSTRUCTION/LABOR COSTS - FAÇADE GRANT AND DOWNTOWN BLDG REHAB PROG. 6822 CONSTRUCTION/LABOR COSTS - CITY PARK PLAY EQUIPMENT REHAB PH. 2 6822 CONSTRUCTION/LABOR COSTS - FRIENDSHIP PARK MATCHING FUNDS 6822 CONSTRUCTION/LABOR COSTS - WHATABURGER SPORTS COMPLEX PARKING 6822 CONSTRUCTION/LABOR COSTS - MEADOWBROOK TRAIL REHAB 6822 CONSTRUCTION/LABOR COSTS - DANVILLE CEMETERY WATER LINE & IRRIGATION 6822 CONSTRUCTION/LABOR COSTS - LIBRARY DRAINAGE DESIGN AND REPAIRS PH1 6822 CONSTRUCTION/LABOR COSTS - CHANDLER ST. CONCRETE AND MISC UTILITES 6822 CONSTRUCTION/LABOR COSTS - WELLS ST. CONSTRUCTION 6822 CONSTRUCTION/LABOR COSTS - TURKEY CREEK BANK STABILIZATION 6822 CONSTRUCTION/LABOR COSTS - CITY YARD REPAIRS PH II 6822 CONSTRUCTION/LABOR COSTS - CITY COUNCIL CHAMBERS 175,000 6822 CONSTRUCTION/LABOR COSTS - STATION 3 REMODEL 250,000 6822 CONSTRUCTION/LABOR COSTS - GENERATOR FOR STATION 2 35,000 6822 CONSTRUCTION/LABOR COSTS - DOWNTOWN BUILDING IMPROVEMENT PROGRAM 55,000 6822 CONSTRUCTION/LABOR COSTS - CITY PARK PLAY EQUIPMENT REHAB PH. 3 15,000 6822 CONSTRUCTION/LABOR COSTS - SOFTBALL/SOCCER COMPLEX CONSTRUCTION PH 1 3,000,000 6822 CONSTRUCTION/LABOR COSTS - POOL HOUSE REMODEL 115,000 6822 CONSTRUCTION/LABOR COSTS - ADDITIONAL SHADE, SURFACING, AND TURF AT POO 60,000 6822 CONSTRUCTION/LABOR COSTS - TRAIL PH 2 CONSTRUCTION 75,000 6822 CONSTRUCTION/LABOR COSTS - LIBRARY DRAINAGE PROJECT 229,192 6822 CONSTRUCTION/LABOR COSTS - LANTRIP ST. RECONSTRUCTION 350,000 6822 CONSTRUCTION/LABOR COSTS - CITY YARD REPAIRS PH 2 35,000 EXPENDITURE TOTAL 1,300,000 - REVENUES OVER EXPENDITURES 3,124,192 -

WATER UTILITIES FUND

City of Kilgore, TX 2021

UTILITY FUND

SUMMARY OF REVENUES AND EXPENDITURES

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGET PROPOSED BUDGET

Total Revenues$ 8,115,384 $ 6,975,276 $ 6,745,732 $ 6,892,756

Total Expenditures$ 4,783,429 $ 4,208,150 $ 4,500,251 $ 4,412,130

Surplus/(Deficit) $ 3,331,955 $ 2,767,126 $ 2,245,481 $ 2,480,626

$9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL BUDGET PROPOSED BUDGET Total Revenues $8,115,384 $6,975,276 $6,745,732 $6,892,756 Total Expenditures $4,783,429 $4,208,150 $4,500,251 $4,412,130

City of Kilgore, TX 2021

UTILITY FUND

REVENUE SUMMARY

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGET PROPOSED BUDGET

REVENUES WATER$ 4,163,502 $ 3,934,014 $ 4,100,315 $ 4,114,039 SEWER$ 2,544,758 $ 2,621,165 $ 2,463,858 $ 2,494,817 SERVICE FEES$ 97,900 $ 105,420 $ 58,140 $ 76,900 OTHER REVENUE$ 1,309,224 $ 314,677 $ 123,420 $ 207,000

TOTAL REVENUE $ 8,115,384 $ 6,975,276 $ 6,745,732 $ 6,892,756

UTILITY FUND

REVENUE SUMMARY FY 2021 Proposed Revenue

$4,500,000

$4,000,000

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

$1,000,000

$500,000

$- WATER SEWER SERVICE FEES OTHER REVENUE

City of Kilgore, TX 2021

SERVICE FEES 1% OTHER …

SEWER 36%

WATER 60%

FY 2021 PROPOSED REVENUE

City of Kilgore, TX 2021

UTILITY FUND

EXPENDITURES BY DEPARTMENT

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGET PROPOSED BUDGET

WATER PRODUCTION 1 502,775 637,122 602,214 593,324 WATER PRODUCTION 2 964,639 893,175 988,691 900,621 WATER CUSTOMER SVC. 397,434 421,244 475,011 523,755 WATER DISTRIBUTION 454,243 664,309 739,033 728,344 WASTEWATER 515,538 766,686 669,009 518,817 SABINE RIVER PUMP STATION 1,269,774 89,796 68,500 143,480 DEBT SERVICE 44,264 75,260 200,000 200,000 CONTINGENCY 177,494 168,984 218,090 234,129 WATER ADMIN. 457,269 491,575 539,702 569,660 TRANSFERS OUT 0 0 0 0

TOTAL EXPENDITURES $ 4,783,429 $ 4,208,150 $ 4,500,251 $ 4,412,130

UTILITY FUND EXPENDITURES BY DEPARTMENT 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0

City of Kilgore, TX 2021

UTILITY FUND

EXPENDITURES BY CATEGORY

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGET PROPOSED BUDGET

PERSONNEL 1,377,699 1,419,084 1,634,498 1,643,475 SUPPLIES 499,163 427,898 477,555 477,555 CONTRACTUAL SVCS. 740,001 1,091,079 1,080,510 1,080,510 UTILITIES 602,800 572,813 615,400 615,400 SUNDRY CHARGES 1,585,649 465,928 595,190 595,190 CAPITAL OUTLAY 0 231,349 0 0 TRANSFER OUT 207,575 6,503,935 667,400 4,938,278

TOTAL EXPENDITURES $ 5,012,888 $ 10,712,085 $ 5,070,553 $ 9,350,407

UTILITIES FUND EXPENDITURES BY CATEGORY

TRANSFER OUT PERSONNEL 35% 24%

SUPPLIES 7% CAPITAL … CONTRACTUAL SVCS. 16% SUNDRY CHARGES UTILITIES 10% 8% City of Kilgore, TX 2021

Department| WATER PRODUCTION – I

Function

. Acting as the field crew for Utilities, Water Distribution and Wastewater Collection is responsible for keeping water and sewer “in the pipes”

Mission

The Kilgore Public Works Department is committed to maintaining and developing public infrastructure for the benefit of our community through planning, design, innovation, and the efficient allocation of resources

Vision

Public Works employees will be regarded as professionals who are well‐trained, productive, proactive and above all, dedicated to improving the City of Kilgore. Employees will work together to implement creative and innovative solutions to infrastructure problems, balancing financial realities with the highest level of service available, treating citizens with respect, and earning respect in return. We will strive to be good stewards of our time, efforts and resources and to approach our responsibilities with all due diligence.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 33,727 9,477 - - Supplies 68,168 87,557 89,050 107,200 Contractual 68,350 102,095 97,671 72,000 Utilities 100,567 121,588 116,500 134,700 Sundry Charges - - - - Capital Outlay - 99,198 - - Total Budget 270,812 320,717 303,221 313,900

City of Kilgore, TX 2021

Department| WATER PRODUCTION ‐ II

Function

. Acting as the field crew for Utilities, Water Distribution and Wastewater Collection is responsible for keeping water and sewer “in the pipes”

Mission

The Kilgore Public Works Department is committed to maintaining and developing public infrastructure for the benefit of our community through planning, design, innovation, and the efficient allocation of resources

Vision

Public Works employees will be regarded as professionals who are well‐trained, productive, proactive and above all, dedicated to improving the City of Kilgore. Employees will work together to implement creative and innovative solutions to infrastructure problems, balancing financial realities with the highest level of service available, treating citizens with respect, and earning respect in return. We will strive to be good stewards of our time, efforts and resources and to approach our responsibilities with all due diligence.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category

Personnel 381,204 365,060 462,226 440,598

Supplies 244,994 111,825 183,250 116,555 Contractual 167,940 200,944 215,392 200,392

Utilities 327,878 289,662 331,740 321,000

Sundry Charges - - - - Capital Outlay - 22,995 - -

Total Budget 1,122,016 967,492 1,192,608 1,078,545

City of Kilgore, TX 2021

Department| WATER CUSTOMER SERVICE

Function

. Provide assistants to the citizens of Kilgore in any way we are permitted to help.

Mission

The Kilgore water Department is committed to providing water service to the citizens on Kilgore

Vision

Customer service employees will be regarded as professionals who are well‐trained, productive, proactive and above all, dedicated to improving the City of Kilgore.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 142,635 190,705 148,780 156,784

Supplies 7,362 12,941 2,750 2,750

Contractual 154,217 137,265 142,417 148,131 Utilities - - - - Sundry Charges 1,083 1,773 40,000 40,000 Capital Outlay - - - - Total Budget 305,297 342,684 333,947 347,665

City of Kilgore, TX 2021

Department| WATER DISTRIBUTION

Function

. Acting as the field crew for Utilities, Water Distribution and Wastewater Collection is responsible for keeping water and sewer “in the pipes”

Mission

The Kilgore Public Works Department is committed to maintaining and developing public infrastructure for the benefit of our community through planning, design, innovation, and the efficient allocation of resources.

Vision

Public Works employees will be regarded as professionals who are well‐trained, productive, proactive and above all, dedicated to improving the City of Kilgore. Employees will work together to implement creative and innovative solutions to infrastructure problems, balancing financial realities with the highest level of service available, treating citizens with respect, and earning respect in return. We will strive to be good stewards of our time, efforts and resources and to approach our responsibilities with all due diligence.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 321,896 345,955 414,119 462,853 Supplies 84,185 95,099 102,000 133,600 Contractual 57,215 239,226 273,625 251,542 Utilities 1,159 2,670 1,600 5,760 Sundry Charges - - - - Capital Outlay - 24,906 - - Total Budget 464,456 682,949 791,344 853,755

City of Kilgore, TX 2021

Department| WASTE WATER

Function

. The Wastewater Treatment Plant is responsible for changing sewage into clean water prior to its return to the watershed

Mission

The Kilgore Public Works Department is committed to maintaining and developing public infrastructure for the benefit of our community through planning, design, innovation, and the efficient allocation of resources.

Vision

Public Works employees will be regarded as professionals who are well‐trained, productive, proactive and above all, dedicated to improving the City of Kilgore. Employees will work together to implement creative and innovative solutions to infrastructure problems, balancing financial realities with the highest level of service available, treating citizens with respect, and earning respect in return. We will strive to be good stewards of our time, efforts and resources and to approach our responsibilities with all due diligence.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 262,703 250,589 287,367 233,085 Supplies 76,846 116,772 103,705 83,100 Contractual 188,937 292,705 248,260 239,351 Utilities 118,178 131,806 105,000 105,460 Sundry Charges 47,267 45,474 98,506 - Capital Outlay - 84,250 - - Total Budget 693,931 921,596 842,838 660,996

City of Kilgore, TX 2021

Department| SABINE RIVER PUMP STATION

Function

. Acting as the field crew for Utilities, Water Distribution and Wastewater Collection is responsible for keeping water and sewer “in the pipes” Mission

The Kilgore Public Works Department is committed to maintaining and developing public infrastructure for the benefit of our community through planning, design, innovation, and the efficient allocation of resources.

Vision

Public Works employees will be regarded as professionals who are well‐trained, productive, proactive and above all, dedicated to improving the City of Kilgore. Employees will work together to implement creative and innovative solutions to infrastructure problems, balancing financial realities with the highest level of service available, treating citizens with respect, and earning respect in return. We will strive to be good stewards of our time, efforts and resources and to approach our responsibilities with all due diligence.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - - - Supplies 12,533 122 12,500 30,000 Contractual 52,610 62,587 25,000 75,000 Utilities 55,018 27,087 41,000 48,480 Sundry Charges - - - - Capital Outlay - - - - Total Budget 120,161 89,796 78,500 153,480

City of Kilgore, TX 2021

Department| DEBT SERVICE

Function . To handle the payment of all the water Utilities debts

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - - - Supplies - - - - Contractual - - - - Utilities - - - -

Sundry Charges 1,193,877 75,260 - - Capital Outlay - - - -

Total Budget 1,193,877 75,260 - -

City of Kilgore, TX 2021

Department| CONTINGENCY

Function

. To aid in the event of unforeseen and emergency expenses

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - - - Supplies - - - - Contractual - - - - Utilities - - - - Sundry Charges - - 200,000 200,000 Capital Outlay - - - - Total Budget - - 200,000 200,000

City of Kilgore, TX 2021

Department| WATER ADMINISTRATION

Function

. Utility Administration is responsible for overseeing the direction and progress of the Utilities Division of Public Works

Mission

The Kilgore Public Works Department is committed to maintaining and developing public infrastructure for the benefit of our community through planning, design, innovation, and the efficient allocation of resources.

Vision

Public Works employees will be regarded as professionals who are well‐trained, productive, proactive and above all, dedicated to improving the City of Kilgore. Employees will work together to implement creative and innovative solutions to infrastructure problems, balancing financial realities with the highest level of service available, treating citizens with respect, and earning respect in return. We will strive to be good stewards of our time, efforts and resources and to approach our responsibilities with all due diligence.

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 235,534 257,298 326,785 341,178 Supplies 5,075 3,581 4,300 4,350 Contractual 50,732 56,257 81,166 94,094 Utilities - - - - Sundry Charges 343,422 343,422 345,541 355,190 Capital Outlay - - - - Total Budget 634,763 660,558 757,792 794,812

WATER UTILITIES PROJECT FUND

City of Kilgore, TX 2021

CAPITAL IMPROVEMENTS FUND - UTILITIES FUND #451 / DEPARTMENT #00/55

FY 2020 FY 2021 OBJECT DEPT CATEGORY BUDGET BUDGET REVENUES 8004 60 TRANSFER IN - BOND PROCEEDS 8018 TTANSFER IN MEADOWBROOK GOLF - CART STORAGE AND MAINT. 8002 TRANSFER IN UTILITY FUND- PAYGO PROJECTS 1,745,000 REVENUE TOTAL 1,745,000 -

EXPENDITURES PAY GO: 6821 ENGINEERING/PROFESSIONAL FEES- TRANSMISSION MAIN ASSESSMENTS 6821 ENGINEERING/PROFESSIONAL FEES- WW BASIN REPLACEMENT 150,000 6821 ENGINEERING/PROFESSIONAL FEES- FINAL CLAIRIERS 70,000 6822 CONSTRUCTION/LABOR COSTS-WELLFIELD CHEM FEED 6822 CONSTRUCTION/LABOR COSTS-RIVERSIDE DUDLEY MAIN 6822 CONSTRUCTION/LABOR COSTS- CART STORAGE AND MAINT. 6822 CONSTRUCTION/LABOR COSTS- SEDIMENTATION BASIN REHABILITATION 6822 CONSTRUCTION/LABOR COSTS-SOUTH COMMERCE & CIRCLE WATER LINE RELOCATION 500,000 6822 CONSTRUCTION/LABOR COSTS- IRON WATER LINE REPLACEMENT PROGRAM 100,000 6822 CONSTRUCTION/LABOR COSTS- HYDRANT REPLACEMENT PROGRAM 100,000 6822 CONSTRUCTION/LABOR COSTS- GROUND WATER EMERGENCY GENERATOR 150,000 6822 CONSTRUCTION/LABOR COSTS- WW MAIN CLEANING 300,000 6822 CONSTRUCTION/LABOR COSTS- BLOWER IMPROVEMENTS 225,000 6822 CONSTRUCTION/LABOR COSTS- TURKEY CREEK 24" WW MAIN ABANDOONMENT 150,000 6822 BONDS: 6821 60 ENGINEERING/PROFESSIONAL FEES- TRANSMISSION MAIN ASSESSMENTS 6821 60 ENGINEERING/PROFESSIONAL FEES- HIGH SERVICE PUMP STATION IMPROVEMENTS 6821 60 ENGINEERING/PROFESSIONAL FEES- GW PRODUCTION EXPANSION (WELL10) 6822 60 CONSTRUCTION/LABOR COSTS-DUDLEY RD TRANSMISSION MAIN 6822 60 CONSTRUCTION/LABOR COSTS- RAW WATER PUMP STATION REHABILITATION 6822 60 CONSTRUCTION/LABOR COSTS-NW PRESSURE PLANE 6822 60 CONSTRUCTION/LABOR COSTS-WELL 2 REHAB 6822 60 CONSTRUCTION/LABOR COSTS-FILTER REHAB 6822 60 CONSTRUCTION/LABOR COSTS- SWTP SCADA IMPROVEMENTS 6822 60 CONSTRUCTION/LABOR COSTS- SOUTH COMMERCE WATERLINE IMPROVEMENTS EXPENDITURE TOTAL 1,745,000 - REVENUES OVER EXPENDITURES - -

GOLF FUND

City of Kilgore, TX 2021

GOLF FUND

SUMMARY OF REVENUES AND EXPENDITURES

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGETED PROPOSED BUDGET

Total Revenues$ 539,139 $ 940,339 $ 473,500 $ 440,900

Total Expenditures$ 998,464 $ 918,586 $ 1,047,732 $ 536,003

Surplus/(Deficit) $ (459,325) $ 21,753 $ (574,232) $ (95,103)

$1,200,000

$1,000,000

$800,000

$600,000

$400,000

$200,000

$- FY 2018 FY 2019 FY 2020 FY 2021 ACTUAL ACTUAL BUDGETED PROPOSED BUDGET Total Revenues $539,139 $940,339 $473,500 $440,900 Total Expenditures $998,464 $918,586 $1,047,732 $536,003

City of Kilgore, TX 2021

GOLF FUND

REVENUE SUMMARY

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGET PROPOSED BUDGET

REVENUES MEMBERSHIP$ 133,730 $ 125,391 $ 140,000 $ 140,000 GOLF COURSE$ 163,161 $ 156,376 $ 176,500 $ 173,400 EVENT CENTER$ 75,091 $ 30,000 $ - $ 2,500 OTHER$ 11,157 $ 5,572 $ 1,000 $ (31,000) GF CONTRIBUTION$ 156,000 $ 623,000 $ 156,000 $ 156,000

TOTAL REVENUE $ 539,139 $ 940,339 $ 473,500 $ 440,900

FY 2021 Proposed Revenue

$200,000

$150,000

$100,000

$50,000

$- MEMBERSHIP GOLF COURSE EVENT CENTER OTHER GF CONTRIBUTION

$(50,000)

City of Kilgore, TX 2021

FY 2021 PROPOSED REVENUE

MEMBERSHIP 28% GF CONTRIBUTION 31%

EVENT CENTER 1%

GOLF COURSE OTHER… 34%

City of Kilgore, TX 2021

GOLF FUND

EXPENDITURES BY DEPARTMENT

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGETED PROPOSED BUDGET

ADMINISTRATION$ 207,106 $ 221,102 $ 210,411 $ 234,685 GROUNDS$ 244,802 $ 199,726 $ 270,318 $ 270,318 BALLROOM$ 33,079 $ 21,677 $ 20,000 $ 20,000 PRO-SHOP SALES$ 14,246 $ 16,789 $ 11,000 $ 11,000 TRANSFERS OUT$ 499,232 $ 459,293 $ 536,003 $ -

TOTAL EXPENDITURES $ 998,464 $ 918,586 $ 1,047,732 $ 536,003

GOLF FUND EXPENDITURES BY DEPARTMENT $300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$- ADMINISTRATION GROUNDS BALLROOM PRO-SHOP SALES

City of Kilgore, TX 2021

GOLF FUND

EXPENDITURES BY CATEGORY

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORIES ACTUAL ACTUAL BUDGETED PROPOSED BUDGET

COST OF GOODS$ 14,446.66 $ 7,408.21 $ 4,000.00 $ 4,000.00 PERSONNEL$ 189,596.91 $ 197,521.29 $ 259,656.00 $ 303,772.27 SUPPLIES$ 90,499.84 $ 97,989.68 $ 60,950.00 $ 76,050.00 CONTRACTUAL SVCS.$ 37,264.21 $ 90,813.20 $ 81,524.00 $ 83,981.00 UTILITIES$ 76,047.86 $ 55,065.32 $ 50,000.00 $ 50,500.00 GROUNDS MAINT.$ 13,569.78 $ 10,495.38 $ 13,700.00 $ 17,700.00 SUNDRY CHARGES$ 70,300.93 $ - $ - $ - TRANSFERS OUT$ 7,506.00 $ - $ - $ 435,000.00

TOTAL EXPENDITURES $ 499,232 $ 459,293 $ 469,830 $ 971,003

GOLF FUND EXPENDITURES BY CATEGORY

GROUNDS MAINT.… COST OF GOODS 1% SUNDRY CHARGES 0% UTILITIES 9%

CONTRACTUAL SVCS. 16%

PERSONNEL 57%

SUPPLIES 14%

City of Kilgore, TX 2021

Department| ADMINISTRATION

Function . Budget and Planning, Personnel Management, Advertising, Golf Lessons, Tournaments, Customized Golf equipment

Mission The mission of Meadowbrook Golf and Event Center is to be responsive and exceed the expectations of our members, to provide a quality golf course, clubhouse and maintain the natural characteristics of the grounds. We strive to provide a public golf course, entertainment and recreational facility at a level of success that is provided and promoted by excellent customer service and positive experiences. Our goal is to exceed customer expectations on a daily basis and to facilitate optimistic communication and solutions with innovative and progressive management.

Vision  To attract and retain long‐term members from Kilgore and surrounding areas and to provide a relaxing, yet physically challenging golf course that promotes an environment that maximizes availability and quality of play.

 To be an organized, productive and respected Golf/Entertainment Facility with the purpose of providing an affordable, attractive, enjoyable option of leisure and recreation for the community and to exceed the expectations of our members, customers and employees

2021 2018 2019 ADOPTED ACTUAL ACTUAL 2020 BUDGET BUDGET Category Personnel 121,033 117,083 128,258 149,590 Supplies 10,892 17,480 14,250 13,800 Contractual 29,732 54,020 33,903 36,795 Utilities 31,002 25,110 30,000 30,500 Sundry Charges - - - - Capital Outlay - - - - Total Budget 192,659 213,694 206,411 230,685

City of Kilgore, TX 2021

Department| GROUNDS

Function . Budget and Planning, Personnel Management, Advertising, Golf Lessons, Tournaments, Customized Golf equipment

Mission The mission of Meadowbrook Golf and Event Center is to be responsive and exceed the expectations of our members, to provide a quality golf course, clubhouse and maintain the natural characteristics of the grounds. We strive to provide a public golf course, entertainment and recreational facility at a level of success that is provided and promoted by excellent customer service and positive experiences. Our goal is to exceed customer expectations on a daily basis and to facilitate optimistic communication and solutions with innovative and progressive management.

Vision  To attract and retain long‐term members from Kilgore and surrounding areas and to provide a relaxing, yet physically challenging golf course that promotes an environment that maximizes availability and quality of play.

 To be an organized, productive and respected Golf/Entertainment Facility with the purpose of providing an affordable, attractive, enjoyable option of leisure and recreation for the community and to exceed the expectations of our members, customers and employees

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel 68,564 80,438 131,398 154,182 Supplies 32,283 42,045 25,500 31,250 Contractual 7,532 36,793 47,497 47,186 Utilities 45,046 29,955 20,000 20,000 Grounds Maint. - - - - Sundry Charges 70,301 - - - Capital Outlay - - - - Total Budget 223,726 189,231 224,395 252,618

City of Kilgore, TX 2021

Department| Ballroom

Function . Budget and Planning, Personnel Management, Advertising, Golf Lessons, Tournaments, Customized Golf equipment

Mission The mission of Meadowbrook Golf and Event Center is to be responsive and exceed the expectations of our members, to provide a quality golf course, clubhouse and maintain the natural characteristics of the grounds. We strive to provide a public golf course, entertainment and recreational facility at a level of success that is provided and promoted by excellent customer service and positive experiences. Our goal is to exceed customer expectations on a daily basis and to facilitate optimistic communication and solutions with innovative and progressive management.

Vision  To attract and retain long‐term members from Kilgore and surrounding areas and to provide a relaxing, yet physically challenging golf course that promotes an environment that maximizes availability and quality of play.

 To be an organized, productive and respected Golf/Entertainment Facility with the purpose of

 providing an affordable, attractive, enjoyable option of leisure and recreation for the community and to exceed the expectations of our members, customers and employees

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category

Personnel - - - - Supplies 33,079 21,677 - 20,000 Contractual - - - - Utilities - - - - Sundry Charges - - - - Capital Outlay - - - - Total Budget 33,079 21,677 - 20,000

City of Kilgore, TX 2021

Department| Ballroom

Function . Budget and Planning, Personnel Management, Advertising, Golf Lessons, Tournaments, Customized Golf equipment

Mission The mission of Meadowbrook Golf and Event Center is to be responsive and exceed the expectations of our members, to provide a quality golf course, clubhouse and maintain the natural characteristics of the grounds. We strive to provide a public golf course, entertainment and recreational facility at a level of success that is provided and promoted by excellent customer service and positive experiences. Our goal is to exceed customer expectations on a daily basis and to facilitate optimistic communication and solutions with innovative and progressive management.

Vision  To attract and retain long‐term members from Kilgore and surrounding areas and to provide a relaxing, yet physically challenging golf course that promotes an environment that maximizes availability and quality of play.

 To be an organized, productive and respected Golf/Entertainment Facility with the purpose of

 providing an affordable, attractive, enjoyable option of leisure and recreation for the community and to exceed the expectations of our members, customers and employees

2021 2018 2019 2020 ADOPTED ACTUAL ACTUAL BUDGET BUDGET Category Personnel - - - - Supplies 14,246 16,789 21,200 11,000 Contractual - - 124 - Utilities - - - - Sundry Charges - - - - Capital Outlay - - - - Total Budget 14,246 16,789 21,324 11,000

DEBT SERVICE

City of Kilgore, TX 2021

GENERAL DEBT SERVICE FUND

The General Debt Service Fund is created to account for resources that will be used to service the city’s long-term debt. This fund accumulates tax revenue to pay principal and interest on bonds sold for various improvement projects, such as street and drainage improvements. The amount of the taxes levied for debt is determined by the County Tax Assessor and approved by the City Council. The function of this fund is to retire bonded indebtedness and pay the interest on the indebtedness. The debt, which this fund retires, was issued by the City for General Fund capital equipment and infrastructure.

The total outstanding debt principal supported from ad valorem taxes is $2,760,000. Scheduled principal and interest payments for FY2021 total $397,800. Principal payments will reduce the outstanding bond indebtedness by $315,000 during the year. Interest on the long-term debt for FY2021 is $82,800.

The following pages detail the future annual principal and interest requirements for the City’s outstanding debt obligations as of October 1, 2020. Through 2028, the City has a total of $2,760,000 in principal to retire and $386,700 in interest payments.

Statutes of the State of Texas limit the maximum amount of ad valorem tax that can be levied by a home rule city to no more than $2.50 per $100 of assessed valuation. A portion of the $2.50 maximum is used for the maintenance and operations portion of the tax levy.

Assessed Taxable Value, 2019 tax roll $ 1,244,883,689 Limit per $100 assessed valuation 2.50 Legal limit on tax levy $ 31,122,092 Less: maintenance & operations portion of the tax levy ($0.509118 per $100 assessed valuation) ( 6,337,926)

Amount of legal limit of tax levy available for debt service $ 24,784,166

City of Kilgore, TX 2021

GENERAL DEBT SERVICE FUND FUND #400 / DEPARTMENT #00

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 5030 REV CURRENT AD VALOREM TAXES 301,679 387,327 396,098 396,098 5031 REV DELIQUENT AD VALOREM TAXES 3,216 1,845 - - 5033 REV PENALTY AND INTEREST 3,193 5,371 - - 5034 REV INTEREST INCOME 8,760 8,000 5,000 5040 REV MISCELLANEOUS - - - - 5050 REV BOND PREMIUM REVENUE TOTAL 316,848 394,543 404,098 401,098

EXPENDITURES 6762 DEBT SERVICE PRINCIPAL 290,000 295,000 290,000 315,000 6763 DEBT SERVICE INTEREST 113,175 100,350 91,500 82,800 6764 DEBT SERVICE EXCHANGE 750 750 750 750 6765 DISCOUNT 6766 SUNDRY - ISSUE COSTS 6767 OTHER FINANCE USES TOTAL DEBT SERVICE PAYMENTS 403,925 396,100 382,250 398,550 8002 TRANSFER OUT TO WATER UTILITY 60,900 - - - EXPENDITURE TOTAL 464,825 396,100 382,250 398,550 REVENUES OVER EXPENDITURES (147,977) (1,557) 21,848 2,548

City of Kilgore, TX 2021

UTILITY DEBT SERVICE FUND

The Utility Debt Service Fund was created to account for resources that will be used to service the city’s long-term debt. This fund accumulates revenues from the Water/Sewer Utility Fund to pay principal and interest on bonds sold for various improvement or expansion projects to the water distribution and sewer collection systems. The function of this fund is to retire bonded indebtedness and pay the interest on the indebtedness. Total debt supported from water/sewer revenue is $9,045,000. Scheduled principal, and interest payments for FY2020 total $666,250 of which $370,000 is principal, $296,250 is interest.

The following pages detail the future annual principal and interest requirements for the City’s outstanding debt obligations as of October 1, 2020.

UTIITY DEBT SERVICE FUND FUND #255 / DEPARTMENT #3600

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUGET REVENUES 5001 INTEREST INCOME - - - - 9200 TRANSFER IN FROM UTILITY FUND 282,575 733,935 668,750 1,033,278 REVENUE TOTAL 282,575 733,935 668,750 1,033,278

EXPENDITURES 6762 DEBT SERVICE PRINCIPAL 155,000 160,000 165,000 370,000 6763 DEBT SERVICE INTEREST 126,825 122,100 117,225 296,250 6764 DEBT SERVICE EXCHANGE 750 750 750 1,150 EXPENDITURE TOTAL 282,575 282,850 282,975 667,400

REVENUES OVER EXPENDITURES - 451,085 385,775 365,878

City of Kilgore, TX

GENERAL DEBT OLBIGATIONS

Year Principal Interest Total P + I

2021 315,000.00 82,800.00 397,800.00 2022 310,000.00 73,350.00 383,350.00 2023 310,000.00 64,050.00 374,050.00 2024 355,000.00 54,750.00 409,750.00 2025 350,000.00 44,100.00 394,100.00 2026 370,000.00 33,600.00 403,600.00 2027 365,000.00 22,500.00 387,500.00 2028 385,000.00 11,550.00 396,550.00

Total $ 2,760,000.00 $ 386,700.00 $ 3,146,700.00

City of Kilgore, TX

GENERAL OBLIGATION BONDS STATEMENT OF INDEBTEDNESS CITY OF KILGORE GENERAL OBLIGATION REFUNDING BONDS, SERIES 2017

PURPOSE OF ISSUE:

Refunding of Tax & Waterworks & Sewer System Surplus $3,365,000 Revenue, Series 2008 Original Purpose: Construction of Public Works and Professional Services rendered in relation to such projects and purposes and the financing thereof

Street improvements including curbs, gutters, sidewalks, traffic signalization and utility line relocations incidental thereto and the acquisition of land and rights-of- way therefore; and drainage improvements including the acquisition of rights-of-way therefore; and improvements and extensions to the City's combined Waterworks and Sewer System, including the acquisition of land and rights-of-way.

Repayment Ad Valorem Tax Water/Sewer Revenue

Date of Issue 1/15/2017

Original Issue $3,365,000

Amount Outstanding $3,360,000

Interest Rate Maturity Date Rate 2017-2028 3.000%

City of Kilgore, TX

GENERAL OBLIGATION REFUNDING BONDS, SERIES 2017 INTEREST & SINKING FUND ‐ SCHEDULE OF MATURITIES

Fiscal Outstanding Fiscal Year Beginning of Year Ending Year Due Date Principal Interest Total

2021 2,760,000 2/15/2021 41,400.00 8/15/2021 315,000 41,400.00 397,800

2022 2,445,000 2/15/2022 36,675.00 8/15/2022 310,000 36,675.00 383,350

2023 2,135,000 2/15/2023 32,025.00 8/15/2023 310,000 32,025.00 374,050

2024 1,825,000 2/15/2024 27,375.00 8/15/2024 355,000 27,375.00 409,750

2025 1,470,000 2/15/2025 22,050.00 8/15/2025 350,000 22,050.00 394,100

2026 1,120,000 2/15/2026 16,800.00 8/15/2026 370,000 16,800.00 403,600

2027 750,000 2/15/2027 11,250.00 8/15/2027 365,000 11,250.00 387,500

2028 385,000 2/15/2028 5,775.00 8/15/2028 385,000 5,775.00 396,550

2,760,000 386,700.00 3,146,700

City of Kilgore, TX

UTILITY DEBT OLBIGATIONS

Year Principal Interest Total P + I

2021 170,000.00 112,200.00 282,200.00 2022 175,000.00 106,150.00 281,150.00 2023 185,000.00 98,950.00 283,950.00 2024 190,000.00 91,450.00 281,450.00 2025 200,000.00 83,650.00 283,650.00 2026 205,000.00 76,575.00 281,575.00 2027 215,000.00 70,275.00 285,275.00 2028 220,000.00 63,750.00 283,750.00 2029 225,000.00 57,075.00 282,075.00 2030 235,000.00 50,175.00 285,175.00 2031 240,000.00 43,050.00 283,050.00 2032 245,000.00 35,775.00 280,775.00 2033 255,000.00 28,275.00 283,275.00 2034 265,000.00 20,475.00 285,475.00 2035 270,000.00 12,450.00 282,450.00 2036 280,000.00 4,200.00 284,200.00

Total $ 3,575,000.00 $ 954,475.00 $ 4,529,475.00

City of Kilgore, TX

GENERAL OBLIGATION BONDS STATEMENT OF INDEBTEDNESS CITY OF KILGORE COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2017

PURPOSE OF ISSUE: $4,055,000 Paying contractual obligations to be incurred for the construction of public works, to wit: constructing, acquiring, purchasing, renovating, enlarging, equipping, and improving water and sewer system properties and facilities, including the acquisition of land and rights of way therefor, and professional services rendered in relation to such projects.

Repayment Ad Valorem Tax Water/Sewer Revenue Date of Issue 1/15/2017 Original Issue $4,055,000 Amount Outstanding $3,740,000 Interest Rate Maturity Date Rate 2017-2021 3.000% 2022-2025 4.000% 2026-2036 3.000%

City of Kilgore, TX

COMBINATION TAX AND LIMITED PLEDGE REVENUE COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2017 CERTIFICATES OF OBLIGATION, SERIES 2017 INTEREST & SINKING FUND ‐ SCHEDULE OF MATURITIES INTEREST & SINKING FUND ‐ SCHEDULE OF MATURITIES

Fiscal Outstanding Fiscal Fiscal Outstanding Fiscal Year Beginning of Year Year Beginning of Year Ending Year Due Date Principal Interest Total Ending Year Due Date Principal Interest Total 2021 3,575,000 2/15/2021 170,000 57,375.00 2031 1,555,000 2/15/2031 240,000 23,325.00 8/15/2021 - 54,825.00 282,200 8/15/2031 - 19,725.00 283,050

2022 3,405,000 2/15/2022 175,000 54,825.00 2032 1,315,000 2/15/2032 245,000 19,725.00 8/15/2022 - 51,325.00 281,150 8/15/2032 - 16,050.00 280,775

2023 3,230,000 2/15/2023 185,000 51,325.00 2033 1,070,000 2/15/2033 255,000 16,050.00 8/15/2023 - 47,625.00 283,950 8/15/2033 - 12,225.00 283,275

2024 3,045,000 2/15/2024 190,000 47,625.00 2034 815,000 2/15/2034 265,000 12,225.00 8/15/2024 - 43,825.00 281,450 8/15/2034 - 8,250.00 285,475

2025 2,855,000 2/15/2025 200,000 43,825.00 2035 550,000 2/15/2035 270,000 8,250.00 8/15/2025 - 39,825.00 283,650 8/15/2035 - 4,200.00 282,450

2026 2,655,000 2/15/2026 205,000 39,825.00 2036 280,000 2/15/2036 280,000 4,200.00 8/15/2026 - 36,750.00 281,575 8/15/2036 - - 284,200

2027 2,450,000 2/15/2027 215,000 36,750.00 4,055,000 1,383,048.00 5,438,048 8/15/2027 - 33,525.00 285,275 3,575,000 954,475.00 4,811,700 2028 2,235,000 2/15/2028 220,000 33,525.00 8/15/2028 - 30,225.00 283,750

2029 2,015,000 2/15/2029 225,000 30,225.00 8/15/2029 - 26,850.00 282,075

2030 1,790,000 2/15/2030 235,000 26,850.00 8/15/2030 - 23,325.00 285,175

City of Kilgore, TX

GENERAL OBLIGATION BONDS STATEMENT OF INDEBTEDNESS CITY OF KILGORE COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2019

PURPOSE OF ISSUE: $5,610,000 Paying contractual obligations to be incurred for the construction of public works, to wit: constructing, acquiring, purchasing, renovating, enlarging, equipping, and improving water and sewer system properties and facilities, including the acquisition of land and rights of way therefor, and professional services rendered in relation to such projects.

Repayment Ad Valorem Tax Water/Sewer Revenue Date of Issue 4/1/2019 Original Issue $5,610,000 Amount Outstanding $5,610,000 Interest Rate Maturity Date Rate 2019-2024 5.000% 2025-2027 4.000% 2028-2039 3.000%

City of Kilgore, TX

COMBINATION TAX AND LIMITED PLEDGE REVENUE COMBINATION TAX AND LIMITED PLEDGE REVENUE CERTIFICATES OF OBLIGATION, SERIES 2019 CERTIFICATES OF OBLIGATION, SERIES 2019 INTEREST & SINKING FUND - SCHEDULE OF MATURITIES INTEREST & SINKING FUND - SCHEDULE OF MATURITIES

Fiscal Outstanding Fiscal Fiscal Outstanding Fiscal Year Beginning of Year Year Beginning of Year Ending Year Due Date Principal Interest Total Ending Year Due Date Principal Interest Total 2021 5,470,000 2/15/2021 200,000 94,525.00 2034 2,085,000 2/15/2034 325,000 31,275.00 8/15/2021 - 89,525.00 384,050 8/15/2034 - 26,400.00 382,675

2022 5,270,000 2/15/2022 210,000 89,525.00 2035 1,760,000 2/15/2035 330,000 26,400.00 8/15/2022 - 84,275.00 383,800 8/15/2035 - 21,450.00 377,850

2023 5,060,000 2/15/2023 220,000 84,275.00 2036 1,430,000 2/15/2036 340,000 21,450.00 8/15/2023 - 78,775.00 383,050 8/15/2036 - 16,350.00 377,800

2024 4,840,000 2/15/2024 235,000 78,775.00 2037 1,090,000 2/15/2037 355,000 16,350.00 8/15/2024 - 72,900.00 386,675 8/15/2037 - 11,025.00 382,375

2025 4,605,000 2/15/2025 245,000 72,900.00 2038 735,000 2/15/2038 365,000 11,025.00 8/15/2025 - 68,000.00 385,900 8/15/2038 - 5,550.00 381,575

2026 4,360,000 2/15/2026 255,000 68,000.00 2039 370,000 2/15/2039 370,000 5,550.00 8/15/2026 - 62,900.00 385,900 8/15/2039 - - 375,550

2027 4,105,000 2/15/2027 265,000 62,900.00 5,610,000 2,040,599.58 7,650,600 8/15/2027 - 57,600.00 385,500 5,470,000 1,795,225.00 7,265,225 2028 3,840,000 2/15/2028 275,000 57,600.00 8/15/2028 - 53,475.00 386,075

2029 3,565,000 2/15/2029 280,000 53,475.00 8/15/2029 - 49,275.00 382,750

2030 3,285,000 2/15/2030 285,000 49,275.00 8/15/2030 - 45,000.00 379,275

2031 3,000,000 2/15/2031 295,000 45,000.00 8/15/2031 - 40,575.00 380,575

2032 2,705,000 2/15/2032 305,000 40,575.00 8/15/2032 - 36,000.00 381,575

2033 2,400,000 2/15/2033 315,000 36,000.00 8/15/2033 - 31,275.00 382,275

City of Kilgore Ad Valorem Tax Collection History

Year Taxable Total Amount Percent Combined Maintenance & Interest Ending Value Assessment Collected Collected Tax Rate Operations & Sinking 1999 438,281,012 2,235,233 2,171,753 97.2% 0.51000 0.486110 0.02389 2000 462,277,058 2,357,613 2,298,908 97.5% 0.51000 0.490830 0.01917 2001 471,545,450 2,404,882 2,342,667 97.4% 0.51000 0.485040 0.02496 2002 494,447,289 2,521,681 2,446,938 97.0% 0.51000 0.486340 0.02366 2003 558,987,510 2,850,836 2,930,031 102.8% 0.51000 0.478250 0.03175 2004 561,569,174 2,947,845 2,970,099 100.8% 0.52493 0.477700 0.04723 2005 603,076,659 3,165,730 3,242,763 102.4% 0.52493 0.479650 0.04528 2006 676,356,828 3,550,400 3,593,005 101.2% 0.52493 0.491330 0.03360 2007 773,492,628 3,924,934 3,982,383 101.5% 0.50743 0.471700 0.03573 2008 888,019,761 4,084,891 4,060,131 99.4% 0.46000 0.429270 0.03073 2009 1,118,420,004 4,473,680 4,305,458 96.2% 0.40000 0.341270 0.05873 2010 1,173,003,464 4,602,525 4,633,399 100.7% 0.39237 0.336802 0.05557 2011 1,182,555,241 4,723,622 4,701,213 99.5% 0.39944 0.347652 0.05179 2012 1,262,293,621 4,922,945 4,953,948 100.6% 0.39000 0.338820 0.05118 2013 1,242,804,063 4,971,216 4,860,494 97.8% 0.40000 0.349714 0.050286 2014 1,285,412,310 5,398,732 5,296,693 97.1% 0.42000 0.370111 0.049889 2015 1,256,081,899 5,652,369 5,539,850 97.1% 0.45000 0.400111 0.049889 2016 1,272,706,438 6,035,810 6,668,824 97.5% 0.47310 0.422969 0.050131 2017 1,245,133,801 6,309,967 6,250,669 98.2% 0.50572 0.469738 0.035982 2018 1,180,017,593 6,382,276 6,352,008 99.5% 0.53900 0.513114 0.025886 2019 1,262,506,845 6,854,738 6,512,001 1 95.0% 0.53900 0.507626 0.031374 2020 1,244,883,689 6,709,923 6,374,427 1 95.0% 0.53900 0.509118 0.029882 1 Estimated @ 95% Collection Rate

Amount Collected includes current, deliquent, penalties and interest.

KILGORE The City of Stars

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OTHER FUNDS

City of Kilgore, TX

SUMMARY OF MISCELLANEOUS FUNDS

REVENUES FUND FY 2018 FY 2019 FY 2020 FY 2021 DESCRIPTION ACTUAL ACTUAL BUDGET BUDGET

UTILITY DEBT SERVICE FUND 282,575 726,425 668,750 1,033,278

GENERAL DEBT SERVICE FUND 305,731 397,098 404,098 401,098 HOTEL/MOTEL OCCUPANCY TAX FUND 321,000 377,158 351,000 251,000 EMPLOYEE BENEFIT FUND 1,620,717 1,926,904 1,824,668 1,834,668 HOSPITAL FUND 388,174 429,404 445,500 433,000 GRANTS - - - - 911 FUND 104,354 106,252 91,500 91,200 CEMETERY PERPETUAL CARE FUND 137,158 177,249 124,000 124,000

K-9 DRUG DOG FUND 767 536 560 600 SEWER RESTORATION 398 579 400 -

GOLF FUND 539,139 940,339 473,500 502,900 CAPITAL IMPROVEMENTS-GENERAL GOVT 2,060,169 3,786,033 4,505,692 - CAPITAL IMPROVEMENTS-UTILITIES 2,815,873 1,921,165 1,553,982 3,905,000 CAPITAL EQUIPMENT REPLACEMENT FUND 592,605 587,979 433,539 632,581 IT FUND 509,909 509,909 742,959 681,435 FEDERAL DRUG SEIZURE FUND 589,773 40,472 57,000 20,500

CHAPETER 59 SEIZURE FUND 7,453 239 175 - KYSSED FUND 59 79 6,046 2,000 COURT TECHNOLOGY FUND 9,882 8,332 8,000 6,000 COURT SECURITY FUND 8,786 8,786 6,000 7,200 MAIN STREET HOTEL TAXES FUND 83 120 90 - MAIN STREET DOWNTOWN FUND 220 320 240 - KILGORE ARTS FESTIVAL FUND 2,143 5,727 5,200 5,200

Totals 10,296,969 11,951,104 11,702,899 9,931,660

City of Kilgore, TX

EXPENSES FUND FY 2018 FY 2019 FY 2020 FY 2021 DESCRIPTION ACTUAL ACTUAL BUDGET BUDGET

UTILITY DEBT SERVICE FUND 282,575 282,850 282,975 667,400 GENERAL DEBT SERVICE FUND 404,676 396,100 382,250 398,550 HOTEL/MOTEL OCCUPANCY TAX FUND 603,732 428,089 399,723 237,249 EMPLOYEE BENEFIT FUND 1,628,043 1,669,353 1,790,000 1,790,000 HOSPITAL FUND 955,574 885,771 627,850 625,297 GRANTS - - - -

911 FUND 84,226 64,204 115,437 93,911 CEMETERY PERPETUAL CARE FUND 38,382 545,913 22,000 - K-9 DRUG DOG FUND 1,758 4,689 2,250 2,250 SEWER RESTORATION 9 9 25,000 25,000 GOLF FUND 499,232 459,293 469,830 536,003 CAPITAL IMPROVEMENTS-GENERAL GOVT 1,067,986 2,656,527 4,783,608 -

CAPITAL IMPROVEMENTS-UTILITIES 1,192,233 2,454,923 1,835,776 - CAPITAL EQUIPMENT REPLACEMENT FUND 325,001 367,902 562,000 562,000 IT FUND 555,785 480,335 782,291 681,432 FEDERAL DRUG SEIZURE FUND 144,586 152,126 100,000 - CHAPETER 59 SEIZURE FUND 2,003 261 - - KYSSED FUND - 707 2,000 2,000

COURT TECHNOLOGY FUND 5,416 4,190 8,000 3,500 COURT SECURITY FUND 2,775 2,778 6,000 - MAIN STREET HOTEL TAXES FUND 2 2 2 2 MAIN STREET DOWNTOWN FUND 5 5 - - KILGORE ARTS FESTIVAL FUND 4,436 6,687 5,200 5,200 Totals 7,798,435 10,862,715 12,202,192 5,629,794 City of Kilgore, TX

CEMETERY PERPETUAL CARE FUND FUND #114 / DEPARTMENT #1401

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 3301 FUND BALANCE FROM PRIOR YEAR - - - - 5411 LOT SALES 66,650 105,900 62,000 62,000 5413 DONATIONS - - - 5860 INTEREST EARNED 66,474 68,298 60,000 60,000 5414 OLD DANVILLE PERPETUAL CARE - - - 5412 CEMETERY OIL & GAS ROYALTIES 4,034 3,051 2,000 2,000 REVENUE TOTAL 137,158 177,249 124,000 124,000

EXPENDITURES 6315 CONTRACTUAL SPECIAL SERVICES - 387 500 6814 CAPITAL CEMETERY IMPROVEMENTS - - - - 6501 MAINT STRUCTURES BUILDINGS / GROUNDS - - - 8100 TRANSFERS OUT 35,920 545,526 21,500 8200 TRANSFERS OUT (Loan to Utility Fund) - - - EXPENDITURE TOTAL 35,920 545,913 22,000 - REVENUES OVER EXPENDITURES 101,237 (368,664) 102,000 124,000

City of Kilgore, TX

K-9 DRUG DOG FUND FUND #115 / DEPARTMENT #2300

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 5394 JAIL PAY PHONE 696 468 500 600 5395 K-9 SCHOOL VISITS - - - - 5846 REVENUE MISCELLANEOUS - - - - 5860 INTEREST INCOME 71 68 60 - REVENUE TOTAL 767 536 560 600

EXPENDITURES 6218 SUPPLIES MISCELLANEOUS 1,756 1,379 200 200 6303 CONTRACTUAL GENERAL LIAB INS - - 900 - 6319 SCHOOLS AND TRAINING - - 650 500 6320 K-9 TRAVEL EXPENSES - 3,135 500 500 6701 DEPRECIATION EXPENSE - - - - 6801 CAPITAL EQUIPMENT - - - - EXPENDITURE TOTAL 1,756 4,514 2,250 1,200 REVENUES OVER EXPENDITURES (989) (3,978) (1,690) (600)

KYSSED FUND FUND #135 / DEPARTMENT #2610

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES

5860 INTEREST EARNED 59 79 60 5396 KYSSED DONATIONS - - - -

REVENUE TOTAL 59 79 60 -

EXPENDITURES

6200 SUPPLIES - 355 1,500 - 6315 CONTRACTUAL SPECIAL SERVICES - 351 500 500 6735 SCHOLARSHIPS - - - - 6218 SUPPLIES MISCELLANEOURS - - - 1,500

EXPENDITURE TOTAL - 707 2,000 2,000 REVENUES OVER EXPENDITURES 59 (627) (1,940) (2,000)

City of Kilgore, TX

SEWER RESTORATION FUND FUND #250 / DEPARTMENT #3800

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 9200 TRANSFER IN FROM WATER UTILITY - - - - 5860 INTEREST EARNINGS 398 579 400 - 3301 FUND BALANCE FROM PRIOR YEAR - - - REVENUE TOTAL 398 579 400 -

EXPENDITURES 6315 CONTRACTUAL SPECIAL SERVICES 9 9 25,000 - EXPENDITURE TOTAL 9 9 25,000 - REVENUES OVER EXPENDITURES 389 569 (24,600) -

UTIITY DEBT SERVICE FUND FUND #255 / DEPARTMENT #3600

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUGET REVENUES 5001 INTEREST INCOME - - - - 9200 TRANSFER IN FROM UTILITY FUND 282,575 733,935 668,750 1,033,278 REVENUE TOTAL 282,575 733,935 668,750 1,033,278

EXPENDITURES 6762 DEBT SERVICE PRINCIPAL 155,000 160,000 165,000 370,000 6763 DEBT SERVICE INTEREST 126,825 122,100 117,225 296,250 6764 DEBT SERVICE EXCHANGE 750 750 750 1,150 EXPENDITURE TOTAL 282,575 282,850 282,975 667,400

REVENUES OVER EXPENDITURES - 451,085 385,775 365,878

City of Kilgore, TX

HOSPITAL FUND FUND #330 / DEPARTMENT #4100 & #4101

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 5860 INTEREST INCOME TRUST FUND 1,083 23,534 - 5002 TRUST FUND INCOME - 35,427 35,000 36,000 5022 BUILDING LEASE 150,000 - - 5023 INTEREST ON HOSPITAL MAINTENANCE 23,189 18,000 5,000 5024 BUILDING LEASE - KILGORE COLLEGE 102,639 197,508 192,000 192,000 5025 BUILDING LEASE - GOOD SHEPHERD HOSPITAL 63,595 126,919 200,000 200,000 5026 MISC OTHER REVENUE - 500 5300 SALE OF FIXED ASSETS - - REVENUE TOTAL 340,506 383,388 445,500 433,000

EXPENDITURES DEPARTMENT 4100 6217 MAINTENANCE OF HOSPITAL BLDG - - - - 6304 PROPERTY INSURANCE ON HOSPITAL BLDG - - - - 6315 PROFESSIONAL SERVICES - 6 - - 6705 TMRS 46,733 35,426 35,000 26,000 6750 TRANSFERS TO HOSPITAL - - - - EXPENDITURE TOTAL - DEPARTMENT 00 46,733 35,432 35,000 26,000

DEPARTMENT 4101 6102 SALARY WAGES 91,801 85,946 90,600 6103 SALARIES PART-TIME LABOR 15,267 18,227 18,962 6104 SALARIES LONGEVITY - 192 288 6105 SALARIES OVER-TIME 4,974 - 6109 SALARIES TOOL / TELEPHONE ALLOWANCE 420 420 480 6110 BENEFITS FICA TAXES 8,087 8,016 8,440 6111 BENEFITS TEC UNEMPLOYMENT 82 810 810 6115 BENEFITS TMRS 13,137 12,235 12,915 6117 BENEFITS MEDICAL INSURANCE 13,007 18,738 18,738 6120 BENEFITS LIFE INSURANCE - 241 254 6121 BENEFITS DISABILITY INSURANCE - 372 393 6122 BENEFITS WORKERS COMP INSURANCE 1,300 581 608 6217 SUPPLIES REPAIR & MAINTENANCE 23,073 32,661 18,000 6218 SUPPLIES MISCELLANEOUS 994 5,000 5,000 6315 PROFESSIONAL SERVICES 145,164 144,795 140,000 6340 CONTRACTUAL NETWORK/COMPUTER - 5,784 3,809 6401 UTILITIES NATURAL GAS 39,170 31,357 35,000 6402 UTILITIES TELEPHONE 1,773 4,440 5,000 6404 UTILITIES ELECTRIC 196,856 210,360 210,000 6409 UTILITIES WATER/SEWER 24,454 29,175 30,000 6801 CAPITAL BUILDINGS & STRUCTURES - - EXPENDITURE TOTAL - DEPARTMENT 40 - 262,254 609,350 599,297

EXPENDITURE TOTAL - ALL DEPARTMENTS 46,733 297,685 644,350 625,297 REVENUES OVER EXPENDITURES 293,772 85,703 (198,850) (192,297) City of Kilgore, TX

GENERAL DEBT SERVICE FUND FUND #400 / DEPARTMENT #00

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 5030 REV CURRENT AD VALOREM TAXES 301,679 387,327 396,098 396,098 5031 REV DELIQUENT AD VALOREM TAXES 3,216 1,845 - - 5033 REV PENALTY AND INTEREST 3,193 5,371 - - 5034 REV INTEREST INCOME 8,760 8,000 5,000 5040 REV MISCELLANEOUS - - - - 5050 REV BOND PREMIUM REVENUE TOTAL 316,848 394,543 404,098 401,098

EXPENDITURES 6762 DEBT SERVICE PRINCIPAL 290,000 295,000 290,000 315,000 6763 DEBT SERVICE INTEREST 113,175 100,350 91,500 82,800 6764 DEBT SERVICE EXCHANGE 750 750 750 750 6765 DISCOUNT 6766 SUNDRY - ISSUE COSTS 6767 OTHER FINANCE USES TOTAL DEBT SERVICE PAYMENTS 403,925 396,100 382,250 398,550 8002 TRANSFER OUT TO WATER UTILITY 60,900 - - - EXPENDITURE TOTAL 464,825 396,100 382,250 398,550 REVENUES OVER EXPENDITURES (147,977) (1,557) 21,848 2,548

City of Kilgore, TX

CAPITAL IMPROVEMENTS FUND - GENERAL GOVERNMENT FUND #450 / DEPARTMENT #00

FY 2020 FY 2021 OBJECT CATEGORY BUDGET BUDGET REVENUES 3301 FUND BALANCE FROM PRIOR YEAR-USE OF UNALLOCATED PARKS CIP 8001 TRANSFER IN GENERAL FUND- CITY HALL CARPET AND SECURITY 30,000 8001 TRANSFER IN GENERAL FUND- CITY WEBSITE UPDATE 8001 TRANSFER IN GENERAL FUND- ERP SYSTEM UPDATE 8001 TRANSFER IN GENERAL FUND- CITY SHOP PAINT BOOTH 8001 TRANSFER IN GENERAL FUND- MOBLIE COMMAND POST UPGRADES PH.1 8001 TRANSFER IN GF- STATION 1 & 3 DRIVEWAYS, AND S3 BATHROOMS 8001 TRANSFER IN GF- FAÇADE GRANT AND DOWNTOWN BLDG REHAB PROGRAM 8001 TRANSFER IN GENERAL FUND- CITY PARK PLAY EQUIPMENT REHAB PH. 2 8001 TRANSFER IN GENERAL FUND- FRIENDSHIP PARK MATCHING FUNDS 8001 TRANSFER IN GF- SOFTBALL/SOCCER COMPLEX CONCEPT & DESIGN 8001 TRANSFER IN GENERAL FUND- MAIN ST. DESIGN 8001 TRANSFER IN GENERAL FUND- MULTI-USE FIELDS CONCEPT & DESIGN 8001 TRANSFER IN GENERAL FUND- MEADOWBROOK TRAIL REHAB 8001 TRANSFER IN GF- DANVILLE CEMETERY WATER LINE & IRRIGATION 8001 TRANSFER IN GENERAL FUND- LIBRARY MASTER PLAN 8001 TRANSFER IN GF- LIBRARY DRAINAGE DESIGN AND REPAIRS PH1 8001 TRANSFER IN GF- CHANDLER ST. CONCRETE AND MISC UTILITES 8001 TRANSFER IN GENERAL FUND- WELLS ST. CONSTRUCTION 8001 TRANSFER IN GENERAL FUND- TURKEY CREEK BANK STABILIZATION 8001 TRANSFER IN GENERAL FUND- CITY YARD REPAIRS PH II 8001 TRANSFER IN GENERAL FUND- CITY COUNCIL CHAMBERS 175,000 8001 TRANSFER IN GENERAL FUND- STATION 3 REMODEL 250,000 8001 TRANSFER IN GENERAL FUND - GENERATOR FOR STATION 2 35,000 8001 TRANSFER IN GF- DOWNTOWN BUILDING IMPROVEMENT PROGRAM 55,000 8001 TRANSFER IN GF- CITY PARK PLAY EQUIPMENT REHAB PH. 3 15,000 8001 TRANSFER IN GF- SOFTBALL/SOCCER COMPLEX CONSTRUCTION PH 1 3,000,000 8001 TRANSFER IN GENERAL FUND- POOL HOUSE REMODEL 115,000 8001 TRANSFER IN GF- ADDITIONAL SHADE, SURFACING, AND TURF AT POOL 60,000 8001 TRANSFER IN GENERAL FUND- TRAIL PH 2 CONSTRUCTION 75,000 8001 TRANSFER IN GENERAL FUND- LIBRARY DRAINAGE PROJECT 229,192 8001 TRANSFER IN GENERAL FUND- LANTRIP ST. RECONSTRUCTION 350,000 8001 TRANSFER IN GENERAL FUND- CITY YARD REPAIRS PH 2 35,000 REVENUE TOTAL # - 4,424,192 -

City of Kilgore, TX

EXPENDITURES 6821 ENGINEERING/PROFESSIONAL FEES - SOFTBALL/SOCCER COMPLEX CONCEPT & DESIGN 6821 ENGINEERING/PROFESSIONAL FEES - MULTI-USE FIELDS CONCEPT & DESIGN 6821 ENGINEERING/PROFESSIONAL FEES - DANVILLE CEMETERY WATER LINE & IRRIGATION 6821 ENGINEERING/PROFESSIONAL FEES - LIBRARY MASTER PLAN 6821 ENGINEERING/PROFESSIONAL FEES - CHANDLER ST. CONCRETE AND MISC UTILITES 6821 ENGINEERING/PROFESSIONAL FEES - MAIN ST. DESIGN

6822 CONSTRUCTION/LABOR COSTS - CITY HALL CARPET AND SECURITY 30,000 6822 CONSTRUCTION/LABOR COSTS - CITY WEBSITE UPDATE 6822 CONSTRUCTION/LABOR COSTS - ERP SYSTEM UPDATE 6822 CONSTRUCTION/LABOR COSTS - CITY SHOP PAINT BOOTH 6822 CONSTRUCTION/LABOR COSTS - MOBLIE COMMAND POST UPGRADES PH.1 6822 CONSTRUCTION/LABOR COSTS - STATION 1 & 3 DRIVEWAYS, AND S3 BATHROOMS 6822 CONSTRUCTION/LABOR COSTS - FAÇADE GRANT AND DOWNTOWN BLDG REHAB PROG. 6822 CONSTRUCTION/LABOR COSTS - CITY PARK PLAY EQUIPMENT REHAB PH. 2 6822 CONSTRUCTION/LABOR COSTS - FRIENDSHIP PARK MATCHING FUNDS 6822 CONSTRUCTION/LABOR COSTS - WHATABURGER SPORTS COMPLEX PARKING 6822 CONSTRUCTION/LABOR COSTS - MEADOWBROOK TRAIL REHAB 6822 CONSTRUCTION/LABOR COSTS - DANVILLE CEMETERY WATER LINE & IRRIGATION 6822 CONSTRUCTION/LABOR COSTS - LIBRARY DRAINAGE DESIGN AND REPAIRS PH1 6822 CONSTRUCTION/LABOR COSTS - CHANDLER ST. CONCRETE AND MISC UTILITES 6822 CONSTRUCTION/LABOR COSTS - WELLS ST. CONSTRUCTION 6822 CONSTRUCTION/LABOR COSTS - TURKEY CREEK BANK STABILIZATION 6822 CONSTRUCTION/LABOR COSTS - CITY YARD REPAIRS PH II 6822 CONSTRUCTION/LABOR COSTS - CITY COUNCIL CHAMBERS 175,000 6822 CONSTRUCTION/LABOR COSTS - STATION 3 REMODEL 250,000 6822 CONSTRUCTION/LABOR COSTS - GENERATOR FOR STATION 2 35,000 6822 CONSTRUCTION/LABOR COSTS - DOWNTOWN BUILDING IMPROVEMENT PROGRAM 55,000 6822 CONSTRUCTION/LABOR COSTS - CITY PARK PLAY EQUIPMENT REHAB PH. 3 15,000 6822 CONSTRUCTION/LABOR COSTS - SOFTBALL/SOCCER COMPLEX CONSTRUCTION PH 1 3,000,000 6822 CONSTRUCTION/LABOR COSTS - POOL HOUSE REMODEL 115,000 6822 CONSTRUCTION/LABOR COSTS - ADDITIONAL SHADE, SURFACING, AND TURF AT POO 60,000 6822 CONSTRUCTION/LABOR COSTS - TRAIL PH 2 CONSTRUCTION 75,000 6822 CONSTRUCTION/LABOR COSTS - LIBRARY DRAINAGE PROJECT 229,192 6822 CONSTRUCTION/LABOR COSTS - LANTRIP ST. RECONSTRUCTION 350,000 6822 CONSTRUCTION/LABOR COSTS - CITY YARD REPAIRS PH 2 35,000 EXPENDITURE TOTAL 1,300,000 - REVENUES OVER EXPENDITURES 3,124,192 -

City of Kilgore, TX

CAPITAL IMPROVEMENTS FUND - UTILITIES FUND #451 / DEPARTMENT #00/55

FY 2020 FY 2021 OBJECT DEPT CATEGORY BUDGET BUDGET REVENUES 8004 60 TRANSFER IN - BOND PROCEEDS 8018 TTANSFER IN MEADOWBROOK GOLF - CART STORAGE AND MAINT. 8002 TRANSFER IN UTILITY FUND- PAYGO PROJECTS 1,745,000 REVENUE TOTAL 1,745,000 -

EXPENDITURES PAY GO: 6821 ENGINEERING/PROFESSIONAL FEES- TRANSMISSION MAIN ASSESSMENTS 6821 ENGINEERING/PROFESSIONAL FEES- WW BASIN REPLACEMENT 150,000 6821 ENGINEERING/PROFESSIONAL FEES- FINAL CLAIRIERS 70,000 6822 CONSTRUCTION/LABOR COSTS-WELLFIELD CHEM FEED 6822 CONSTRUCTION/LABOR COSTS-RIVERSIDE DUDLEY MAIN 6822 CONSTRUCTION/LABOR COSTS- CART STORAGE AND MAINT. 6822 CONSTRUCTION/LABOR COSTS- SEDIMENTATION BASIN REHABILITATION 6822 CONSTRUCTION/LABOR COSTS-SOUTH COMMERCE & CIRCLE WATER LINE RELOCATION 500,000 6822 CONSTRUCTION/LABOR COSTS- IRON WATER LINE REPLACEMENT PROGRAM 100,000 6822 CONSTRUCTION/LABOR COSTS- HYDRANT REPLACEMENT PROGRAM 100,000 6822 CONSTRUCTION/LABOR COSTS- GROUND WATER EMERGENCY GENERATOR 150,000 6822 CONSTRUCTION/LABOR COSTS- WW MAIN CLEANING 300,000 6822 CONSTRUCTION/LABOR COSTS- BLOWER IMPROVEMENTS 225,000 6822 CONSTRUCTION/LABOR COSTS- TURKEY CREEK 24" WW MAIN ABANDOONMENT 150,000 6822 BONDS: 6821 60 ENGINEERING/PROFESSIONAL FEES- TRANSMISSION MAIN ASSESSMENTS 6821 60 ENGINEERING/PROFESSIONAL FEES- HIGH SERVICE PUMP STATION IMPROVEMENTS 6821 60 ENGINEERING/PROFESSIONAL FEES- GW PRODUCTION EXPANSION (WELL10) 6822 60 CONSTRUCTION/LABOR COSTS-DUDLEY RD TRANSMISSION MAIN 6822 60 CONSTRUCTION/LABOR COSTS- RAW WATER PUMP STATION REHABILITATION 6822 60 CONSTRUCTION/LABOR COSTS-NW PRESSURE PLANE 6822 60 CONSTRUCTION/LABOR COSTS-WELL 2 REHAB 6822 60 CONSTRUCTION/LABOR COSTS-FILTER REHAB 6822 60 CONSTRUCTION/LABOR COSTS- SWTP SCADA IMPROVEMENTS 6822 60 CONSTRUCTION/LABOR COSTS- SOUTH COMMERCE WATERLINE IMPROVEMENTS EXPENDITURE TOTAL 1,745,000 - REVENUES OVER EXPENDITURES - -

City of Kilgore, TX

HOTEL/MOTEL OCCUPANCY TAX

FUND #505 / DEPARTMENT #00

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 5022 HOTEL OCCUPANCY TAXES 309,593 371,135 350,000 250,000 5860 INTEREST 1,727 6,023 1,000 1,000 3301 FUND BALANCE (use of prior years cash reserve) - - REVENUE TOTAL 311,320 377,158 351,000 251,000

EXPENDITURES 6770 CHAMBER OF COMMERCE 169,461 177,300 173,784 15,000 6771 KILGORE HISTORICAL PRESERVATION 35,000 36,877 37,000 27,750 6772 KC SHAKESPEARE 15,669 18,605 15,996 15,000 6773 OTHER 28,856 2,250 20,000 15,000 6774 MAIN STREET - 6775 KILGORE COLLEGE 10,000 6776 KILGORE COMMUNITY CONCERT 2,820 - 6777 EAST TEXAS OIL MUSEUM 10,000 81,439 81,439 7,500 6778 RANGERETTE REVELS 17,725 19,965 20,285 15,000 6779 EAST TEXAS PIPE ORGAN FESTIVAL 14,428 15,290 16,219 1,000 6780 ETTC CHILI COOKOFF 10,000 - - 6781 MUSEUM OF BROADCASTING 9,419 9,098 10,000 7,500 6782 RANGERETTE SHOWCASE MUSEUM 715 10,000 7,500 6783 WAY-FINDING SIGNAGE 6784 DOWNTOWN LIGHTS 6,453 8020 TRANSFER OUT 60,000 15,000 6315 CONTRACTUAL SPECIAL SERVICES 97 125,999 3301 FUND BALANCE FROM PRIOR YEARS - - EXPENDITURE TOTAL 323,378 428,089 399,723 237,249 REVENUES OVER EXPENDITURES (12,058) (50,931) (48,723) 13,751

City of Kilgore, TX

911 FUND FUND #511 / DEPARTMENT #2200

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 5118 911 Fees 102,702 103,265 90,000 90,000 5860 Interest Earned 1,652 2,987 1,500 1,200 5843 Misc Grant Revenue 3301 Fund Balance (prior years cash reserve) - - - - REVENUE TOTAL 104,354 106,252 91,500 91,200

EXPENDITURES PERSONNEL SERVICES 6103 SALARIES PART-TIME 11,504 6,438 28,167 27,917 6110 BENEFITS FICA 880 493 2,155 2,136 6111 BENEFITS UNEMPLOYMENT TAX 160 41 845 838 6122 BENEFITS WORKER'S COMP 24 7 71 70 TOTAL PERSONNEL SERVICES 12,568 6,979 31,238 30,961

SUPPLIES 6201 SUPPLIES OFFICE - 486 2,000 2,000 6217 SUPPLIES MAINTENANCE AND REPAIR 8,921 4,414 2,100 2,100 6218 SUPPLIES MISCELLANEOUS 1,272 468 1,000 1,000 TOTAL SUPPLIES 10,193 4,882 5,100 5,100

CONTRACTUAL SERVICES 6301 CONTRACTUAL OUTSIDE MAINTENANCE 3,170 8,181 9,325 9,626 6315 CONTRACTUAL SPECIAL SERVICES 8,797 11,074 9,000 1,170 6333 CONTRACTUAL EQUIP FUND LEASE - - - 6340 CONTRACTUAL IT NETWORK/COMPUTERS 13,581 11,782 25,224 25,484 TOTAL CONTRACTUAL SERVICES 25,548 31,037 43,549 36,280

UTILITIES 6401 UTILITIES GAS 750 750 750 750 6402 UTILITIES TELEPHONE 31,667 16,571 31,300 17,320 6404 UTILITIES ELECTRIC 3,500 3,500 3,500 3,500 TOTAL UTILITIES 35,917 20,821 35,550 21,570

SUNDRY CHARGES 6701 DEPRECIATION EXPENSE - - - 8001 TRANSFER OUT 8020 TRANSFER TO CAPITAL PROJECTS - - - - 2002 DUE TO GENERAL FUND - - - - TOTAL SUNDRY CHARGES - - - -

CAPITAL OUTLAY 6803 CAPITAL ELECTRONIC EQUIPMENT TOTAL CAPITAL OUTLAY

EXPENDITURE TOTAL 84,226 63,718 115,437 93,911 REVENUES OVER EXPENDITURES 20,128 (42,534) (23,937) (2,711) City of Kilgore, TX

FEDERAL DRUG SEIZURE FUND FUND #530 / DEPARTMENT #2400

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 5860 INTEREST EARNED 3,822 7,684 7,000 500 5397 DRUG SEIZURE 45,739 32,787 50,000 20,000 5102 SALE OF ASSETS - - - - 5843 MISC GRANT REVENUE - - - - REVENUE TOTAL 49,560 40,472 57,000 20,500

EXPENDITURES 6201 OFFICE SUPPLIES - 4,132 - - 6202 SUPPLIES DRUG K-9 DOG - - - - 6203 SUPPLIES CLOTHING / DRY GOODS 1,466 - - - 6204 SUPPLIES MOTOR VEHICLES 10,893 13,278 - - 6205 MINOR TOOLS 10,414 18,358 - - 6217 SUPPLIES REPAIR & MAINTENANCE - 1,048 - - 6218 SUPPLIES MISCELLANEOUS 9,915 38,234 - - 6303 CONTRACTUAL GENERAL LIAB INS - 62 - - 6315 CONTRACTUAL SPECIAL SERVICES 23 27,537 - - 6319 CONTRACTUAL TRAINING / SCHOOL 960 11,309 - - 6320 CONTRACTUAL TRAVEL EXPENSE 1,731 4,620 - - 6330 CONTRACTUAL PD OTHER AGENCIES 109,185 26,230 - - 6402 UTILITIES - TELEPHONE - - - - 6701 DEPRECIATION EXPENSE - - - - 6802 CAPITAL EXPENDITURES - - 100,000 100,000 EXPENDITURE TOTAL 144,587 144,807 100,000 100,000 REVENUES OVER EXPENDITURES (95,026) (104,335) (43,000) (79,500)

CHAPTER 59 SEIZURE FUND FUND #531 / DEPARTMENT #2500

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 5860 INTEREST EARNED 138 239 175 - 5398 CH 59 DRUG SEIZURES 7,315 - - - 5102 SALE OF ASSETS - - - - 5846 MISC REVENUE - - - REVENUE TOTAL 7,453 239 175 -

EXPENDITURES 6218 SUPPLIES - - - - 6315 PAID TO COUNTY DISTRICT ATTORNEY 3 261 - - 6319 CONTRACTUAL TRAINING / SCHOOL - - - - 6320 CONTRACTUAL TRAVEL EXPENSE - - - 6330 CONTRACTUAL PD OTHER AGENCIES - - - - 6701 DEPRECIATION EXPENSE - 1,281 - - 6802 CAPITAL VEHICLES/EQUIPMENT - - - 6803 CAPITAL ELECTRONIC EQUIPMENT - - - - 8030 TRANSFER OUT (PAYMENT TO OTHER AGENCIES) - - - - EXPENDITURE TOTAL 3 1,543 - - REVENUES OVER EXPENDITURES 7,450 (1,304) 175 - City of Kilgore, TX

COURT TECHNOLOGY FUND FUND #540 / DEPARTMENT #2700

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES

5860 INTEREST EARNED 129 300 - - 5400 COURT TECHNOLOGY FEES 9,753 8,031 8,000 5,000 5408 LOCAL MUNICIPAL COURT TECHNOLOGY - - - 1,000 3301 FUND BALANCE - - - -

REVENUE TOTAL 9,882 8,332 8,000 6,000

EXPENDITURES

6218 SUPPLIES MISCELLANEOUS - 446 - - 6315 CONTRACTUAL SPECIAL SERVICES 5,416 3,744 3,500 3,500 6340 CONTRACTUAL IT NETWORK/COMPUTERS - - - - 6701 DEPRECIATION EXPENSE - - - - 6803 CAPITAL ELECTRONIC EQUIPMENT - - 4,500 - 8001 TRANSFER IN/OUT TO GENERAL FUND - - -

EXPENDITURE TOTAL 5,416 4,190 8,000 3,500 REVENUES OVER EXPENDITURES 4,466 4,142 - 2,500

COURT SECURITY FUND FUND #541 / DEPARTMENT #27800

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES

5860 INTEREST EARNED 1,436 2,234 - - 5406 COURT SECURITY FEES 7,350 6,058 6,000 5,000 5407 LOCAL MUNICIPAL COURT BUILDING - - - 1,200 REVENUE TOTAL 8,786 8,292 6,000 6,200

EXPENDITURES

6218 SUPPLIES MISCELLANEOUS - - - - 6301 CONTRACTUAL OUTSIDE REPAIR/MAINTENANCE - - - - 6315 CONTRACTUAL SPECIAL SERVICES 31 34 50 - 6801 CAPITAL BUILDING/STRUCTURES - - 5,950 - 6803 CAPITAL ELECTRONIC EQUIPMENT - - - -

EXPENDITURE TOTAL 31 34 6,000 - REVENUES OVER EXPENDITURES 8,755 8,258 - 6,200

City of Kilgore, TX

MAIN STREET HOTEL TAXES FUND FUND #545 / DEPARTMENT #4300

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES

9505 HOTEL/MOTEL TAXES TRANS IN - - - - 5860 INTEREST EARNINGS 83 120 90 -

REVENUE TOTAL 83 120 90 -

EXPENDITURES

6218 HOT MISC SUPPLIES - - - - 6217 SUPPLIES REPAIR / MAINTENANCE - - - - 6315 CONTRACTUAL SPECIAL SERVICES 103 2 - - 6321 CONTRACTUAL ADVT/LEGAL NOTICES - - - -

EXPENDITURE TOTAL 103 2 - -

REVENUES OVER EXPENDITURES (20) 118 90 -

MAIN STREET DOWNTOWN FUND FUND #546 / DEPARTMENT #4310

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES

5850 MAIN STREET HOLIDAY TOUR - - - - 5851 SALE OF PROMOTIONAL ITEMS - - - 5852 MISC DONATIONS (Haunted House) - - - - 5853 CHRISTMAS LIGHT DONATIONS - - - 5860 INTEREST EARNED 220 320 240 -

REVENUE TOTAL 220 320 240 -

EXPENDITURES

6202 SUPPLIES FOOD - - - - 6218 MISCELLANEOUS SUPPLIES - - - - 6315 CONTRACTUAL SPECIAL SERVICES 5 5 - - 6321 CONTRACTUAL ADVERTISING - - - -

EXPENDITURE TOTAL 5 5 - -

REVENUES OVER EXPENDITURES 215 315 240 -

City of Kilgore, TX

KILGORE ARTS FESTIVAL FUND FUND #547 / DEPARTMENT #4400

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES

USE OF FUND BALANCE - - 5846 REVENUE MISCELLANEOUS 2,096 5,696 5,200 5,200 5860 INTEREST EARNED 47 31 - - 9505 TRANSFERS IN - - - -

REVENUE TOTAL 2,143 5,727 5,200 5,200

EXPENDITURES

6202 SUPPLIES FOOD 241 - 250 250 6218 MISCELLANEOUS SUPPLIES 207 - 250 250 6315 CONTRACTUAL SPECIAL SERVICES 2,740 6,087 4,000 4,000 6321 CONTRACTUAL ADVERTISING 742 600 700 700

EXPENDITURE TOTAL 3,930 6,687 5,200 5,200

REVENUES OVER EXPENDITURES (1,787) (960) - -

EMPLOYEE BENEFIT FUND FUND #606 / DEPARTMENT #00

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES 5860 INTEREST INCOME 17,170 21,072 - 10,000 5012 EMPLOYEE CONTRIBUTIONS 297,570 318,168 335,000 335,000 5011 CITY CONTRIBUTIONS 1,239,642 1,543,686 1,489,668 1,489,668 5866 ICMA DRAW DOWN 49,238 32,324 - - REVENUE TOTAL 1,603,619 1,915,250 1,824,668 1,834,668

EXPENDITURES 6350 BENEFIT CLAIMS - - - - 6352 PLAN PREMIUMS 1,628,044 1,669,353 1,790,000 1,790,000

EXPENDITURE SUBTOTAL 1,628,044 1,669,353 1,790,000 1,790,000 REVENUES OVER EXPENDITURES (24,424) 245,897 34,668 44,668

City of Kilgore, TX

CAPITAL EQUIPMENT REPLACEMENT FUND FUND #622 / DEPARTMENT #4600

FY 2018 FY 2019 FY 2020 FY 2021 OBJECT CATEGORY ACTUAL ACTUAL BUDGET BUDGET REVENUES

5001 INTEREST INCOME 11,915 1,800 1,800 2,000 5700 DONATED CAPITAL 12,000 80,000 80,000 5701 LEASE INCOME - ADMINISTRATION 3,202 3,202 3,202 - 5703 LEASE INCOME - POLICE 101,057 101,057 101,057 171,718 5704 LEASE INCOME - MUNICIPAL COURT - - - - 5705 LEASE INCOME - FIRE 45,831 45,831 45,831 131,662 5708 LEASE INCOME - RESCUE UNIT 8,799 8,799 8,799 10,312 5709 LEASE INCOME - STREET MA STREET MAINTENANCE 46,583 46,583 46,583 60,600 5710 LEASE INCOME - STREET ROSTREET ROW 31,688 31,688 31,688 40,000 5711 LEASE INCOME - HEALTH HEALTH 7,638 7,638 7,638 7,638 5712 LEASE INCOME - PARKS PARKS 29,989 29,989 29,989 44,700 5714 LEASE INCOME - CEMETERY - - - 7,020 5715 LEASE INCOME - INSPECTIONS 3,700 3,700 3,700 - 5717 LEASE INCOME - EQUIPMENT SERVICES 9,244 9,244 9,244 9,244 5719 LEASE INCOME - BUILDING MAINTENCE 5,526 5,256 5,256 9,000 5730 LEASE INCOME - WATER PROD I WELL FIELD 3,552 3,552 3,552 - 5731 LEASE INCOME - WATER PROD II SURFACE WATER 6,043 6,043 6,043 18,000 5732 LEASE INCOME - WATER CUSTOMER SERVICE 2,064 2,064 2,064 - 5733 LEASE INCOME - WATER DISTRIBUTION 32,539 32,539 32,539 81,349 5734 LEASE INCOME - WASTEWATER 13,335 13,335 13,335 33,338 5738 LEASE INCOME - WATER ADM 1,219 1,219 1,219 6,000 5931 GAIN/LOSS ON SALE OF ASSETS 28,216 3301 FUND BALANCE REVENUE TOTAL 404,140 607,039 433,539 632,580 EXPENDITURES CAPITAL EQUIPMENT PURCHASES: # Total Life Annual 249,174 972,000 562,000 382,253 1503 Patrol Vehicles Police 67,000 2 134,000 5 26,800 1503 Police Video Equipment WatchPolice 75,253 1 75,253 20 3,763 1512 1/2 Ton Pick-up Parks 26,000 2 52,000 5 10,400 1512 8' Brush Hog Parks 7,000 1 7,000 10 700 1519 Pick-up with service bed BM 36,000 1 36,000 5 7,200 1531 1/2 Ton Pick-up Parks 26,000 1 26,000 5 5,200 1533 1/2 Ton Pick-up Parks 26,000 1 26,000 5 5,200 1534 1/2 Ton Pick-up Water Prod 26,000 1 26,000 5 5,200 382,253 64,463 EXPENDITURE TOTAL REVENUES OVER EXPENDITURES 249,174 972,000 562,000 382,253 154,966 (364,961) (128,461) 250,327

KILGORE ECONOMIC DEVELOPMENT CORPORATION

City of Kilgore, TX

OPERATING AND CAPITAL BUDGET Fiscal Year October 1, 2020 – September 30, 2021

Adopted 08/18/2020

2019-2020 Board of Directors

Robert L. Davis, Jr., President Bobby Beane, Vice President Ricardo Viloria, Secretary Mike Head, Assist. Secretary Jeff Stone, Director

Staff

Jana Russell, Executive Director Sonya Waters, Business Development Manager Austin Clark, Research Specialist Stephanie Moore, Office and Property Manager

KILGORE ECOMONIC DEVELOPMENT CORP0RATION 903.983‐3522 | FAX: 903.984.2746 | info@kilgore‐edc.com 1001 Synergy Blvd., Suite 100, Kilgore, Texas 75662‐7772 www.kilgore‐edc.com City of Kilgore, TX

The Kilgore Economic Development Corporation is a non-profit corporation created by the City of Kilgore for the purpose of organizing and leading the economic development effort for the City. It was created under Section 4A of the Act. The Act, originally enacted in 1979, was amended during the 1989 session of the Texas Legislature to enhance economic development in the State by the authorization of a one-half percent sales and use tax for economic development. The authorization applied to cities in counties with populations less than 500,000 and required that the levy be approved by a referendum of the voters. It also required that an economic development corporation be formed to administer the proceeds of the tax. Although the sales tax is collected solely within the boundaries of the City, the Act permits an economic development corporation to conduct operations beyond the created City’s limits, and the corporation’s objectives are to encourage economic development in the Kilgore area.

Over the past five fiscal years, the Corporation’s Sales Tax revenues have averaged $3,015,922. Sales tax revenues, however, may vary significantly from year to year. In addition to approving the economic development sales and use tax, the City has also approved an ad valorem Freeport tax exemption for goods in transit; and the City is authorized by law to provide an ad valorem property tax abatement for as long as ten years on capital investment of primary employers.

The Corporation is subject to review by the Kilgore City Council who must approve each bond issue of the Corporation and the Corporation’s budget. The Corporation is required by its bylaws to submit an economic development plan to the City Council, and, subject to certain restraints, the City may change or alter the organization, programs or activities of the Corporation. The Corporation has entered into an agreement with the City for the following: Administrative support and financial management services as requested; Process personnel payroll and benefits; Serve and KEDC’s designee as Investment Officer; Provide general liability and property insurance coverage for KEDC’s activities and property. The corporation is overseen by a five- person Board of Directors whose members serves without compensation and are appointed to staggered three-year terms by the City Council. Members may be removed at any time by the City Council. The staff of the corporation consists of an Executive Director, an Assistant Director/Marketing Manager, a Business Retention Specialist, and an Office/Property Manager.

The collections of ½ of 1% additional sales tax for economic development was approved by the voters of the City of Kilgore in an election held May 5, 1990, and approved by a margin of 611 to 406. In December 1990, the Corporation received its first proceeds of the Sales Tax.

City of Kilgore, TX

Kilgore Economic Development Corporation Actual and Budget Comparison

Actual Actual Budget Budget Increase Revenue FY2019 FY2020 FY 2020 FY 2021 (Decrease)

5001 Sales Taxes 3,356,141 2,398,440 3,000,000 2,250,000 (750,000)

5005 Garbage Sales Taxes 11,580 12,585 11,200 11,254 54

5200 Interest ‐ Austin Bank, TxPool, TexSTAR 238,429 111,315 228,600 68,580 (160,020)

5300 Sale of Asset 4,956,940 ‐ ‐ ‐ ‐

5380 Synergy #2 Lease Revenue 85,749 ‐ ‐ ‐ ‐

5382 Synergy #2 CAM Reimb from Tenants 11,400 ‐ ‐ ‐ ‐

5400 Lease Revenue 196,164 147,117 251,133 283,533 32,400

5401 Misc Income 21,380 17,645 1,000 1,000 ‐

5402 Incentive Recovery 21,709 62,232 21,700 25,800 4,100

5409 Grant Revenue 1,000 ‐ ‐ Transfers 6290 In ‐ ‐

Total Revenue 8,900,491 2,749,334 3,513,633 2,640,167 (873,466)

(1) Transfer from checking account to TexSTAR Investment account for future early bond Pay‐off or Special Project

(2) Principal, interest and fees for 2010, 2015 and 2019 bonds

City of Kilgore, TX

Actual Actual Budget Budget Increase 2019 2020 FY 2020 FY 2021 (Decrease) Expense

600 Office Expense 7,316 7,225 7,800 7,800 ‐

610 Contractual Services ‐

610‐01 EDPA Incentives 799,468 808,086 707,911 298,700 (409,211)

610‐02 City of Kilgore Contract 412,767 498,917 444,184 386,300 (57,884)

610‐07 Contractual Legal Services 24,095 10,264 25,000 25,000 ‐

610‐08 Contractual Accounting Fees 12,550 14,250 13,400 15,100 1,700

610‐09 Contractual EDC Services 38,343 5,473 20,000 20,000 ‐

610‐11 Contractual Labor Services 12,812 12,954 25,000 15,000 (10,000)

610‐15 Contractual Rental Equip 2,842 3,129 3,200 3,200 ‐

610‐18 Contractual IT Services 26,501 24,817 26,000 26,000 ‐

610‐40 4A(s) Projects 345,644 100,000 300,000 ‐ (300,000)

612 School Registrations and Training Fees 8,855 5,524 11,260 6,640 (4,620)

614 Travel Expense 20,676 10,098 31,650 25,200 (6,450)

616 Dues, Fees & Memberships 3,300 3,986 3,964 4,034 70

620 Marketing (10% of Sales Tax Revenue) 216,289 196,793 300,000 225,000 (75,000)

630 Business Retention & Expansion 29,602 20,297 77,700 76,102 (1,598)

640 Synergy Center Lease Expense 75,719 84,666 84,940 84,940 ‐

650 Maintenance ‐ Bldgs & Grounds 313,899 138,532 195,670 181,032 (14,638)

660 Capital Expenditures 1,004,118 690,782 415,000 415,000 ‐

670 Debt Service and Notes ‐ ‐

680 Transfers Set Aside‐Early Bond Pay‐off (1) 180,000 180,000 180,000 180,000 ‐

680 Transfers Out (2) 3,368,718 638,703 640,954 645,119 4,165

Total Expense 6,723,515 3,274,496 3,513,633 2,640,167 (873,466)

Difference in Rev/Expense 2,176,976 (525,162) ‐ ‐ ‐

ADOPTING DOCUMENTS

ORDINANCE NO. 1776

AN ORDINANCE FOR THE APPROPRIATION OF SUPPORT FOR THE CITY GOVERNMENT OF THE CITY OF KILGORE, TEXAS, FOR ONE YEAR PERIOD BEGINNING OCTOBER I, 2O2O AND ENDING SEPTEMBER 30,2021.

WHEREAS, the City Manager has prepared and submitted to the City Council a budget estimate of the expenditures and revenues of all city departments, divisions and offices for the period beginning October 1, 2020 and ending September 30,2021, which has been approved.

THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KILGORE, TEXAS:

StrCTION l: That the sum of$16,850,367 is hereby appropriated out of the General Fund for the payrnent of expenses of the City Govemment as hereinafter itemized, to-wit:

ADMINISTRATION I 344,8t6 COMMUNITY RELATIONS 119,030

FINANCE I 461,t86 POLICE 4,708,47 t EMERGENCYMGT. 48,590 COURT 237,694 FiRE 3,253,8 l9 CITY COUNCIL 106,919 HUMAN RESOURCES 13 1,073 RESCUE 125,05 8 STREET MAINT I,249,921 SIGN MAINT. 9,61 8 R.O.W. MAINT. 68,920 HEALTH/CODE COMPLIANCE 379,836 PARKS 1,066,402 SWIMMING POOLS t51,254 CEMETERIES 174,85 I BUILDING INSPECTION 251,314 LIBRARY 460,268 EQUIPMENT SVCS 262,666 PLANNING 128,074 MAIN STREET 114,600 CONTINGENCY 200.000 BUILDING MAINTANCE 194,687 KEDC 386,300 NON.DEPARTMENTAL 2,084,000 TRANSFERS OUT 156,000 GENERAL FUND TOTAL 16,875,367

I SECTION 2: That the sum of $9,350,407 is hereby appropnated out of the Water Utilities Fund for the operation, maintenance and construction of the municipality-owned water works and sanitary sewage facilities, as hereinafter itemized, to wit:

WATER PRODUCTION 1 5q1 114 WATER PRODUCTION 2 900,621 WATER CUSTOMER SVC. 5?1 755 WATER DISTRIBUTION 728.344 WASTEWATER 5 l 8,817 SABINE RIVER PUMP STATION 143,480 CONTINGENCY 200,000 DEBT SERVICE 234,129 WATER ADMIN. 569,660 1'RANSFERS I 4,938,2'78 UTILITY FUND TOTAL 9,3s0,407

SECTION 3: That the sum of$398,550 is hereby appropriated out of the General Obligation Bond Interest and Sinking Fund for the purpose ofpaying interest and principal due, including fees, on the City of Kilgore General Obligation bonded indebtedness as hereinafter itemized to-wit:

DEBT: GENERAL OBLIGATION BONDS TOTAL APPROPRIATION

2017 GO/RefBonds Pnncipal 3 15,000 Interest 82,800

Total Bond Interest & Sinking Fund Appropriation Principal 31s,000 Interest 82,800 Fees 750 3 98,5 50

SECTION 4: That the sum of $667,750 is hereby appropriated out of the Utility Fund lnterest and Sinking Fund for the purpose of paying interest and principal due, including fees, on the City of Kilgore Utility bonded indebtedness as hereinafter itemized to-wit:

DI]BT TOTAL APPROPRIATION

201 7 Cert of Obligation Principal 170,000 Interest t12,200 Fees 750 282,950

2 DEBT: TOTAL APPROPRIATION

2019 Cert of Obligation Principal 200,000 Interest 184,050 Fees 750 384,800

SECTION 5: That the following sums are hereby appropriated in the following funds for each fund's stated purpose as hereinafter itemized, to wit:

Hotel Occupancy Taxes 300,000 Employee Health Fund 1,790,000 Hospttal Fund A) < )O1 911 Emergency Fund 93,91 I Kilgore Cemeteries 0 K-9 Drug Dog Fund 1,200 Sewer Restoration Fund 0 Capital Replacement Fund 1R' '51 Drug Seizure Fund 200,000 Information Technology Fund 68t,432 KYSSED Fund 2,000 Court Technology Fund 3,500 Court Security Fund 0 Kilgogh Art Festival Fund 5 200 Total Other Funds 3,982,539

SECTION 6: That the sum of $536,003 is hereby appropriated from the Meadowbrook Municipal Golf Course Fund for the maintenance and operations ofthe municipality-owned golfcourse.

ADMINISTRATION 234,685 GROUNDS 2'70,3t8 RESTAURANT BALLROOM 20,000 PRO.SHOP SALES I 1,000 Transfers GOLF FUND TOTAL s36,003

3 SECTION 7: That the sum of $0 is hereby appropriated from the General Capital Project Fund for the following capital projects, which budgets are appropriated on a project life basis wherein appropriated funds will be available for the life of the stated project:

NO NEW PROJECTS

SECTION 8: That the sum of $10,105,000 is hereby appropriated from the Utility Capital Project Fund for the following utility capital projects, and $5,200,000 of new utility debt is anticipated, which budgets are appropriated on a project life basis wherein appropriated funds will be available for the life of the stated project:

INDUSTRIAL DRIVE UTILITY RELOCATIONS 2,000,000 IRON WATER LINE REPLACEMENT PROGRAM 100,000 WELL #6 CONSTRUCTION 840,000 HYDRAULIC CLEANING OF SEWER LINES 100,000 HWY 42 UTILITY RELOCATION 150,000 DIGESTOR REHAB ENGINEERING 15,000 MAIN STREET IMPROVEMENTS 700.000 RABBIT CREEK LIFT STATION IMPROVEMENT 3,200,000 HIGH SERVICE PUMP STATION AT 349 3,000,000 NEW UTILITY DEBT ISSUANCE (5,200,000)

SECTION 9: That except in case of emergency, no money shall be drawn from the treasury of the City, nor shall any obligation for the expenditure ofmoney be incurred, except pursuant to the budget appropriations as set out in the Ordinance for each Fund. An unencumbered appropriation balance or portion thereof may be transferred between general classifications ofexpenditures within an office, department or division; also within the last three months ofthe budget year, an unencumbered balance may be transferred from one office, department or division to another in accordance with Article VII, Section 5, of the Charter of the City of Kilgore, excepting, however, that funds deposited to and on deposit in the Sinking Funds and required (Revenue Bond) Reserve Fund amounts shall be held and expended only for the payments of Bond Principal and Interest, and no other transfers shall ever be made.

PASSED AND APPROVED this 8rh day of September, 2020.

CITY OF KILGORE, TEXAS

R. RADL I, MAYOR

I ATTEST ,(adrr-( /n r- o RACHEL ROWE. CITY CLERK

APPROVED AS TO FORM AND EFFECT

t- ROB TG.SC L R, JR CITY ATTORNEY DATED: Q-r.u'ao

) ORDINANCE NO. T777

AN ORDINANCE LEVYING AD VALOREM TAXES FOR THE TAX YEAR 2O2O AND FISCAL YEAR 2021.

WHEREAS, the Tax Assessors and Tax Collectors have delivered to the City Council the Tax Appraisal Roll for said City which has been certified by the Gregg County Appraisal District Chief Appraiser and the Rusk county Appraisal District and being stated as totaling S1,243,810,215 after lawful exemptions; and

WHEREAS, the City Council finds it necessary to now levy the ad valorem taxes for Tax Year 2020, at the tax rate of 50.539 per S100 of value.

THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KILGORE, TEXAS:

A. That the Appraisal Roll, presented to this Council by the Tax Assessor and Tax Collector for Tax Yea( 2O2O is approved.

B. That there be, and there is hereby levied for Tax Year 2020 a total tax rate aggregating $0.539 on each one hundred dollar (5100) valuation, on all taxable property owned and located within the boundaries of the City of Kilgore, Texas, on the l't day of January, 2020, except so much thereof as may be exempt by the Constitution and Laws of the State of Texas.

C. That S0.509118 of the total rate is hereby specifically levied for current expenses of operation and maintenance purposes, and that S0.029882 of the tota I rate is hereby specifically levied for the payment of principal and interest on debt.

PASSED AND APPROVED BY RECORD VOTE this 8th day of September,2O2O

CITY ORE, IEXAS

No ATTEST: R. E tN l , M R &rt l b'* o RACHET ROWE, CITY CLERK HARV CCLENDON, R PRO

e No M ERLYN OLM co NCIL MEMBER

APPRO AS TO FORM ND E FFECT ( Grro MIK SECH RIST, COUNCIL MEMBER

RO RT G. S LE IE JR CITY ATTORNEY Yes/No VICTOR A. BOYD, COUNCIL MEMBER

l11 \o\(_

-__-_v

GLOSSARY

City of Kilgore, TX

GLOSSARY OF BUDGET TERMS

Ad Valorem Tax – The tax computed from the assessed valuation of land and improvements.

Account - A code designed to categorize expenditures and revenues for convenience in referencing classification information. It specifically shows Group and object code information.

Accrual Accounting - The basis of accounting where transactions are recognized in the financial statements when they occur, regardless of when cash is received or spent.

Assessed Valuation – Valuation set upon real estates of other property by a government as a basis for levying taxes.

Assets – Resources owned or held by the City which have monetary value.

Balance Sheet – A financial statement that presents the assets, liabilities, reserves and balances of a specific governmental fund as of a specified date.

Balanced Budget – A budget adopted by the legislative body and authorized by ordinance where the proposed expenditures are equal to or less than the proposed resources.

Base Budget - The base budget for the current year must be equal, or less than, the department's prior year total in current adopted budget for General Fund and internal service fund departments. Enterprise fund budgets for the current year must continue the prior year service level. (Same as Target Budget)

Bond – A written promise to pay a specified sum of money, called the face value or principal amount, at a specified date or dates in the future, called the maturity dates, together with periodic interest at a specified rate. The most common types of bonds are general obligation and revenue. Bonds are most frequently used to finance the construction of large capital projects.

Budget – A plan of financial operation that links all planned revenues and expenditures with various municipal services. The term “budget” usually indicates a financial plan for a single fiscal year.

Budget Adjustment - A legal procedure utilized during the fiscal year by the City staff and City Council to revise a budget appropriation. City staff has the prerogative to adjust expenditures within a departmental budget.

Budget Calendar - The schedule of key dates or deadlines to which the City departments follow in the preparation, adoption, and administration of the budget.

Budget Document - The instrument used by the budget-making authority to present a comprehensive financial program to the City Council and the Citizens.

Budgetary Supporting Detail Form - Budgetary Supporting Detail forms provide detailed explanation for each line item (account) within each department. It is a worksheet provided during the budget process, which lists three years history of every expenditure account within each Fund/ Department. The form is used for explaining and justifying expenditure requests. City of Kilgore, TX

Capital Outlay - A capital outlay is any purchase which has a unit cost of $5,000 or more and a useful life of at least three years. Some items that cost over $1,000 and require replacement in less than three years (e.g. some heavy equipment) may still be considered capital outlay items. A Minor Capital Outlay is anything that cost in excess of $1,000 and has an expected useful life of at least three years. A Major Capital Outlay is anything that cost in excess of $5,000 and will be included in our Fixed Asset Inventory. This is due to a change in reporting requirements by Governmental Accounting Standards Board (GASB) Statement 34.

Contingency Fund – A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted.

Debt Service - The City's obligation to pay the principal and interest amounts of all bonds and other debt instruments, according to a pre-determined payment schedule.

Department - A major functional area of the City that indicates overall management responsibility for an operation or group of related operations.

Depreciation – (1) Expiration in the service life of capital assets attributable to wear and tear, deterioration, action of the physical elements, inadequacy or obsolescence. (2) That portion of the cost of a capital asset which is charged as an expense during a particular period.

Division - A sub-functional unit of a Department of the City with responsibility for an operation.

EDC – Economic Development Corporation

EMS – Emergency Medical Service

Effective Tax Rate – A calculated ad valorem tax rate that would provide the taxing unit with about the same amount of revenue it received in the year before on properties taxed in both years.

Enterprise (Proprietary) Fund - A governmental accounting fund used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is to recover the cost of providing goods and services. They are established to insure that revenues are adequate to meet all necessary expenditures.

Enterprise funds in Kilgore are established for services such as water and wastewater.

Estimated Revenue - The amount of projected revenue anticipated to be collected during the fiscal year. It may also be defined as the proposed financing sources estimated to finance the proposed projected expenditures.

Fiscal Year - The twelve-month period to which the annual operating budget applies, and at the end of which a government determines its financial position and the results of its operations. The City of Kilgore's fiscal year is October 1 through September 30.

City of Kilgore, TX

Fixed Assets - Assets (purchased through a capital outlay) of a long-term nature that are intended to continue to be held and used, such as land, building, machinery, furniture, and other equipment. Full-time Equivalent - A computed statistic representing the number of full-time employees that could have been employed if the reported number of hours worked by part-time employees had been worked by full-time employees.

Fund - A fiscal and accounting entity with a self-balancing set of accounts that records all financial transactions for specific governmental functions. Seven major fund types and two account groups are commonly used: general fund, special revenue funds, debt service funds, internal service funds, trust & agency funds, capital project funds, enterprise funds; general fixed asset account group and general long-term debt account group.

Fund Balance – The difference between fund assets and fund liabilities of governmental funds. The excess in a fund of current assets over current liabilities; sometimes called working capital in enterprise funds. A negative fund balance is often referred to as a deficit.

General Fund - The primary operating fund of most municipal governments. Operating expenses are supported by general governmental revenue sources such as ad valorem (or property) taxes, sales and other use taxes, licenses and permits, and other financing sources. They are typically self- supporting, even though some of them generate revenue through user fees and service charges. Some basic operating services financed through the General Fund include; fiscal services, fire, libraries, street maintenance, park and recreation, police protection, and general administration.

Goal - A goal is the desired outcome or end product of an organization. Goals are usually broad in scope and rarely change from year to year. However, objectives toward achieving goals may change annually.

Governmental Fund – A fiscal and accounting entity with a self-balancing set of accounts that records all financial transactions for specific activities or government functions. Governmental Funds include the General Fund, Special Revenue funds, Debt Service funds, and Capital Projects funds.

Grant - A contribution by a government or other organization to support a particular function. Grants may be classified as either categorical or block, depending upon the amount of discretion allowed by the grantee.

Group - A basis for distinguishing types of expenditures. The five major Groups used by the City of Kilgore are: Group 01 - Personal Services; Group 02 - Supplies; Group 03 - Contractual Services; Group 04 - Utilities; and Group 08 – Capital Expenses.

Indirect Costs - A charge assessed typically to proprietary departments (enterprise and internal service fund departments) for services provided by the General Fund e.g. payroll services, computer services, and accounting.

Internal Service Fund - A fund used to account for the financing of goods or services provided by one department to another department on a cost reimbursement basis. (We are considering setting up the Shop as an Internal Service - Equipment Services Fund)

KIBA – Kilgore Improvement and Beautification Association, a civic organization in Kilgore, TX.

City of Kilgore, TX

Levy - To impose taxes, special assessments, or service charges for the support of City services.

Line Items - Specific accounts used to budget and record expenditures. All requests for line-item appropriations must be made in accordance with the list of expenditure accounts described in the Budget Instruction Manual.

Net Assets - Assets less liabilities.

Objectives - Objectives are specific statements describing what is to be achieved toward accomplishment of a stated goal in a given time period. Objectives should be results oriented, rather than means or process oriented. They should be specific, rather than general; be measurable, include specific time limits, and be relevant to the goals of the program to which they relate.

Operating Budget - The portion of the budget that pertains to daily operations that provide basic governmental services. The operating budget contains appropriations for such expenditures as personnel, supplies, contractual services, and capital outlays; and the proposed means of financing them.

Ordinance – A formal legislative enactment by the governing board of a municipality. If it is not in conflict with any higher form of law, such as a state statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies.

Performance measures - Specific quantitative and qualitative measures of work performed as an objective of the department.

Policy Issues - Any issues which impact the City's financial situation and require the attention of the City Council as policy-makers. Policy Issues could include discussion of the addition of new programs or the expansion of existing programs, as well as unfunded needs. Some Policy Issues do not have a direct impact on the budget but communicate to the City Council and general public, significant changes that have occurred, are scheduled to take place, or are unaddressed.

Program - A program is a group of interdependent, closely related service activities that contribute to a common goal and common objectives. Ideally, a program should be clearly delineated, have a minimum amount of overlap with programs, be end-product oriented, and lend itself to quantification.

Proprietary Funds - Any self-supporting fund in which the services provided are financed by the revenue generated from user fees or services charges for those services. The rate schedules for these services are established to insure that revenues are adequate to meet all necessary expenditures.

Reserve – An account used to earmark a portion of fund balance to indicate that it is not appropriated for expenditure. A reserve may also be an account used to earmark a portion of fund equity as legally segregated for a specific future use.

Retained Earnings – An equity account reflecting the accumulated earnings of an enterprise or internal service fund.

Rollback Tax Rate – A calculated maximum ad valorem tax rate allowed by law without voter approval. City of Kilgore, TX

Supplemental Appropriation - Any change in the total appropriations for the department; supplemental appropriations require City Council approval.

Tax Rate – A percentage applied to all taxable property to raise general revenues. It is derived by dividing the total tax levy by the taxable net property valuation.

Tax Increment Finance District (TIF) – A geographical area or district created under Texas law to encourage development of the area within its boundaries by the reinvestment of the incremental tax growth generated by property value increases and new development within the district.

TMRS – Texas Municipal Retirement System

TNRCC – Texas Natural Resources Conservation Commission

TXDOT – Texas Department of Transportation