CITY OF HEWITT, TEXAS ANNUAL OPERATING AND CAPITAL BUDGET FOR 2014-2015 Adopted by the Honorable Mayor and City Council on August 25, 2014 CITY OF HEWITT Fiscal Year 2014‐2015 ANNUAL BUDGET Adopted 8‐25‐14 CITY COUNCIL Wilbert ‘Walky’ Wachtendorf Mayor Ed Passalugo Bill Fuller Travis Bailey Mayor Pro‐Tem Council Member Council Member Ronnie McNiel Alex Snider James Vidrine Council Member Council Member Council Member STAFF Adam Miles, ICMA‐CM City Manager Jim W. Barton Lydia Lopez, TRMC Jim Devlin Assistant City Manager City Secretary Chief of Police Lance Bracco, BS‐FS Lee H. Garcia, CPA, CGFO Susana Garcia‐Gilmore, PHR Fire Chief Finance Director HR/Civil Service Director James Black Waynette Ditto, MLS Utilities Director Library Director

1. "This budget will raise more revenue from property taxes than last year's budget by an amount of $279,585, which is a 8% increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $81,280." 2. The record vote of each member of the governing body by name voting on the adoption of the budget is as follows: 1. Mayor Ed Passalugo ‐‐ For 5. Council Member Travis Bailey ‐‐ For 2. Mayor Pro Tem Wilbert Wachtendorf ‐‐ For 6. Council Member Ronnie McNiel ‐‐ For 3. Council Member Bill Fuller ‐‐ For 7. Council Member James Vidrine ‐‐ For 4. Council Member Alex Snider ‐‐ For 3. The municipal property tax rates for the preceding fiscal year, and each municipal property tax rate that has been adopted or calculated for the current fiscal year, include: Calculated Rates a. The Property Tax Rate for the Preceding Fiscal year ‐ $.539677 e. The Maximim Operating Rate ‐‐ $.471873 b. The Property Tax Rate ‐‐ $.539677 f. The Total Rollback Tax Rate ‐‐ $.580859 c. The Effective Tax Rate ‐‐ $.509967 g. The Debt Rate ‐‐ $.179631 d. The Effective Maintenance & Operations Tax Rate ‐‐ $.436920 Adopted Rates a. Maintenance & Operations Tax Rate ‐‐ 0.360046 b. Debt Rate (Interest & Sinking Fund) ‐‐ 0.179631 c. Total Adopted Property Tax Rate ‐‐ 0.539677 4. The total amount of outstanding municipal debt obligations secured by property taxes, including principal and interest, is $61,442,023.66. The total amount of outstanding debt obligations considered self‐supporting is $35,859,402.24. Self‐supporting debt is currently secured by water and wastewater revenues. In the event that such amounts are insufficient to pay debt service, the City will be required to assess an ad valorem tax to pay such obligations. Fiscal year 2014‐15 Principal & Interest Requirements for Debt Service are: a. Property Tax Supported Debt: $1,265,731.44 b. Self‐Suppoting Debt: $1,798,483.15

DO IT IN HEWITT 1 ®

GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award

PRESENTED TO City of Hewitt Texas For the Fiscal Year Beginning October 1, 2013

Executive Director

The Government Finance Officers Association (GFOA) of the United States and Canada presented an award of Distinguished Presentation to the City of Hewitt for its annual budget for the fiscal year beginning October 1, 2013. In order to receive this award a governmental unit must publish a budget document that meets the program criteria as a policy document, as an operations guide, as a financial plan and as a communication device. This award is valid for a period of one year only. We believe our current budget conforms to program requirements and are submitting it to GFOA to determine its eligibility for continued award.

DO IT IN HEWITT 2 Fiscal Year 2014‐2015 Budget Highlights

 Held Tax Rate, same as last year  Slight increase in Wastewater Rate  Three % Cost of Living Increase to Employees  Maintained Employee Benefits at same level  Completed Devonshire Road upgrade  Completed Patriot Court‐new road for city facilities  Near completion of Public Safety Facility‐ dual police and fire station  Issued certificates of obligation for o New Library/City Hall Facilities o Warren Park Amphitheatre and playground o Street Improvements in 3 major traffic/growth areas  In progress with North Elevated Storage Tank

DO IT IN HEWITT 3 TABLE OF CONTENTS CITY OF HEWITT, TEXAS BUDGET FY 2014‐2015

CITY COUNCIL MEMBERS AND STAFF ...... 1 DISTINGUISHED BUDGET PRESENTATION AWARD ...... 2 BUDGET HIGHLIGHTS ...... 3 TABLE OF CONTENTS ...... 4 HOW TO READ THIS DOCUMENT ...... 8

INTRODUCTORY SECTION ‐ 1st of 4 SECTIONS 11 EXPLANATION of the INTRODUCTORY BUDGET SECTION ...... 12 BUDGET MESSAGE: 13 City Manager's Budget Message ...... 14 STRATEGIC DIRECTION: ...... 16 City's Vision and Mission Statements ...... 17 City's Long‐Term Planning Process ...... 18 City's Long‐Term Goals ...... 19 CITY ORGANIZATION: 22 City Organization ...... 23 City Functional Structure Chart ...... 24 City Location on Texas Map ...... 25 City Charter ...... 26 Election Ward Map ...... 29 Council Meeting Information ...... 30 BUDGET PROCESS: 31 The Budget Process ...... 32 Budget Calendar ...... 33 Capital Budget Process ...... 35 Financial Management Policies ...... 36 Summary of Significant Accounting Policies ...... 51 Performance Management ...... 53 Investment Policy ‐ See Appendix A ...... USER INFORMATION: 55 Hewitt History ...... 56 CNN Money Magazine Award ...... 60 Land Availability Map ...... 61 Community Profile ...... 62 Comprehensive Plan ...... 66

BUDGET SUMMARY SECTION ‐ 2nd of 4 SECTIONS 83 EXPLANATION of the BUDGET SUMMARY SECTION ...... 83 City of Hewitt Fund Structure ...... 85 Fund/Department Matrix ...... 86

ALL FUNDS SUMMARY 87 All Funds Matrix ...... 88 All Funds Sources and Uses‐ 3 Years ...... 89 All Funds Revenue/Expense by Fund Type ...... 90

OPERATING FUNDS SUMMARY 91 Operating Funds Overall View ...... 92 Operating Funds Sources & Uses‐3 Years ...... 95 Operating Funds Revenues & Expenses ...... 96

SPECIAL REVENUE FUNDS 98 Drainage Fund ...... 99 Hotel Fund ...... 104

DO IT IN HEWITT 4 TABLE OF CONTENTS CITY OF HEWITT, TEXAS BUDGET FY 2014‐2015 CAPITAL PROJECTS FUNDS 106 Capital Outlay Overview ...... 107 Capital Outlay Items Budgeted & Financed ...... 108 Capital Improvement Projects ‐ Current ...... 109 Capital Improvement List ‐ Future ...... 110 Serries 2010 Issue‐Utility Fund Capital Projects ...... 111 Series 2012 Issue‐General Fund Capital Projects ...... 113 Series 2012 Issue‐Utility Fund Capital Projects ...... 115 Series 2013 Issue‐Public Safety Facilities ...... 117 Series 2014 Issue‐City Hall and Library ...... 119

FINANCIAL/OPERATIONAL SECTION ‐ 3rd of 4 SECTIONS 121 GENERAL FUND 122 Overview of Departments 123 General Fund Budget Projection 124 General Budget Summary of Sources & Uses 125 General Fund Five Year Projection of Budget 126

GENERAL FUND REVENUE 127 General Fund Revenue by Type 128 General Fund Revenue Assumptions Narrative 129

GENERAL FUND EXPENDITURES 132 General Fund Expenditures by Department 133 General Fund Expenditures by Type‐3 Years 134

POLICE DEPARTMENT 135 Department Functional Structure 135 Unit Goals in Relation to Overall City Goals 137 Department Mission, Objectives & Goals 138 Police Department Summary 139 Police Department Summary Budget 140 Administration 141 Patrol 145 Criminal Investigation 149 Communications 153 Animal Control 157 Code Enforcement 161

COMMUNITY SERVICES 165 Department Functional Structure 166 Unit Goals in Relation to Overall City Goals 167 Department Mission, Objectives & Goals 168 Department Summary 169 Department Detail 170

FIRE DEPARMENT 171 Department Functional Structure 172 Unit Goals in Relation to Overall City Goals 173 Department Mission, Objectives & Goals 174 Department Summary 175 Department Detail 176

HEWITT PUBLIC LIBRARY 177 Department Functional Structure 178 Unit Goals in Relation to Overall City Goals 179 Department Mission, Objectives & Goals 180

DO IT IN HEWITT 5 TABLE OF CONTENTS CITY OF HEWITT, TEXAS BUDGET FY 2014‐2015 Department Summary 181 Department Detail 182

ADMINISTRATION 183 Department Functional Structure 184 Unit Goals in Relation to Overall City Goals 185 Department Mission, Objectives & Goals 186 Department Summary 187 Department Detail 188

COMMUNITY DEVELOPMENT 189 Department Functional Structure 190 Unit Goals in Relation to Overall City Goals 191 Department Mission, Objectives & Goals 192 Department Summary 193 Department Detail 194

FINANCE 195 Department Functional Structure 196 Unit Goals in Relation to Overall City Goals 197 Department Mission, Objectives & Goals 198 Department Summary 199 Department Detail 200

MUNICIPAL COURT 201 Department Functional Structure 202 Unit Goals in Relation to Overall City Goals 203 Department Mission, Objectives & Goals 204 Department Summary 205 Department Detail 206

HUMAN RESOURCES 207 Department Functional Structure 208 Unit Goals in Relation to Overall City Goals 209 Department Mission, Objectives & Goals 210 Department Summary 211 Department Detail 212

GENERAL FUND LONG TERM DEBT 213 Department Detail 214

UTILITY FUND 215 OVERVIEW OF DEPARTMENTS 216 Utility Fund Projection 217 Utility Fund Summary of Sources & Uses 218 Utility Fund Five Year Projection 219

REVENUE 220 Utility Fund Revenue 221 Utility Fund Revenue Assumptions Narrative 222

EXPENSES 225 Utility Fund Expenses by Department 226 Utility Fund Expense by Type‐3 Years 227 Utility Fund Expense Assumptions 228

MAINTENANCE 230 Department Functional Structure 231 DO IT IN HEWITT 6 TABLE OF CONTENTS CITY OF HEWITT, TEXAS BUDGET FY 2014‐2015 Unit Goals in Relation to Overall City Goals 232 Department Mission, Objectives & Goals 233 Department Summary 234 Department Detail 235

ADMINISTRATION 236 Department Summary 237 Department Detail 238

UTILITY BILLING 239 Department Functional Structure 240 Unit Goals in Relation to Overall City Goals 241 Department Mission, Objectives & Goals 242 Department Summary 243 Department Detail 244

LONG TERM DEBT 245 Utility Fund Long Term Debt 246

SUPPLEMENTAL INFORMATION SECTION 247 EXPLANATION OF SUPPLEMENTAL SECTION ...... 248

TAX INFORMATION ...... 249 Tax Information 250 Certification of 2014 Tax Appraisal Roll 251 Certified Tax Roll Information 252 Calculation of Ad Valorem Tax Revenue 253 Ad Valorem Tax Historical Information 254

DEBT INFORMATION ...... 255 Bonded Debt Overview 256 Total Debt Outstanding 257 Total Debt Chart 258 Total Debt ‐ Debt Servicing by Year 259

GENERAL FUND LONG TERM DEBT 261 Schedule of Bonded Debt Service 262 Schedule of Short Term Financing 263 Individual Debt Schedules 264

UTILITY FUND LONG TERM DEBT 271 Schedule of Bonded Debt Service 272 Schedule of Short Term Financing 273 Individual Debt Schedules 274

ORDINANCES ...... 279 Tax Rate Levy 280 Amending Water & Wastewater Rates 281 Adopting Budget 282

PERSONNEL ...... 283 STAFFING OF FULL TIME POSITIONS 284 SALARY SCHEDULES 285 POLICE STEP CHART 286 FIRE STEP CHART 287

GLOSSARY ...... 288

DO IT IN HEWITT 7

HOW TO READ THIS DOCUMENT

DO IT IN HEWITT 8 HOW TO READ THIS DOCUMENT

You are holding the City of Hewitt Budget for the fiscal year beginning October 1st and ending September 30th. This document has been specially prepared to help you, the reader, learn of the issues affecting the Hewitt community. Many people believe that a city budget is only a financial plan. Although you can learn much of the City’s financial position, the budget document has been designed to serve other functions as well.

The budget is a policy document as it presents major policies that guide the City. The budget also is an operational guide that gives the public, elected officials and City staff information pertaining to the production and performance of individual city departments. The budget is designed as a communication device; information is conveyed verbally and graphically in a way that should be easily understood even by persons unfamiliar with the City.

THE BUDGET FORMAT The Budget Document is divided into four major Sections: Introductory, Budget Summaries, Financial/Operational, and Supplemental. There is a forward to each Section that includes an Explanation of the documents presented in that particular Section.

The Introductory Section contains the Explanation of the Documents, followed by the City’s Strategic Direction: Vision, Mission and Values Statements leading into Hewitt’s Long Term Planning Process and distilling into Council’s Goals and Objectives for the City. The City Manager’s letter addressed to the City Council, explains the major policies and issues that affected the development of the current Budget. This section also describes a synopsis of the City’s major projects and the Supplemental Budget Message: National, State and Local Economic Factors. The Budget Summaries Section provides further details on individual funds including the General Fund, the Enterprise Fund and the Capital Projects Funds.

DO IT IN HEWITT 9 The Financial/Operational Section describes various aspects of the City’s organizational structure as well as fund and department group information. The City uses the fund method of accounting. A fund is a unit that tracks the application of public resources. For example, the Water and Wastewater Fund is designed to keep track of revenues and expenses in the utility departments.

Most reader’s interest is in the General Fund, which is comprised of operations including Police & Fire Services, Streets & Parks Services, the Hewitt Public Library, Planning & Community Development and General Government Administration.

Financial statements are provided for each Fund. The financial statement shows the beginning balances, revenues, expenditures, and ending balances for the year. Accompanying the statements are narratives and graphs that describe the major features of a particular fund. Within each fund there may be one or more departments that describe the makeup of each fund.

Each department is presented with a mission statement, a brief synopsis of the key departmental increases or decreases, a listing of the unit’s accomplishments for the previous fiscal year and operational objectives for the fiscal year. Selected performance measures for each department are present. The funding for each department, as well as the unit’s staffing, are summarized again over a number of years.

Finally, various attachments are presented towards the back of the document. The Supplemental Section includes further information on Property Taxes, Bonded Debt, Ordinances passed with the Budget, Personnel Information, the Glossary, and an Index.

It is the goal of management to continue to provide the best service possible to the readers of the City Budget. This fiscal year has been one of challenge as the national economy has affected even our local city. We are thankful for the energy and time give by City Council, the City Manager and the Department Heads in compiling this budget.

Please contact the City Manager or Finance Director for questions related to the Budget Document at 254-666-6171.

DO IT IN HEWITT 10

INTRODUCTORY SECTION

Section 1 of 4:

 Introductory  Summaries  Financial  Supplement

DO IT IN HEWITT 11

Introductory Section

Explanation of the Budget Document

The Budget Document is presented in 4 Sections: 1. Introductory Section 2. Budget Summaries Section 3. Financial / Operational Section 4. Supplemental Section ______

This is the Introductory Section

This Section begins with the City Manager’s Budget Message

This Section also contains the City’s Strategic Direction:  The City’s Strategic Direction o The City’s Vision, Mission and Values Statements . The City’s Long-Term Planning Process  The City’s Long-Term Goals

Additional information in this section:

 City Organization

 Budget Process - includes a Budget Calendar and description of the Budget Process and the Capital Budget Process

 Financial Policies - includes Financial Management Policies and the Summary of the Significant Accounting Policies.

 User Information

DO IT IN HEWITT 12

BUDGET MESSAGE

DO IT IN HEWITT 13 TEXAS

August 25, 2014

RE: Budget Transmittal Letter

Honorable Mayor and Council,

I am pleased to submit for your consideration Hewitt's Proposed Budget for the fiscal year 2014-15. Our budget is a policy guidance document that communicates our common vision and direction in the coming year. This is our fiscal plan outlining expected revenues and expenditures from October 1, 2014 through September 30, 2015. This budget is balanced and meets statutory requirements of the City Charter and State Statues.

Generally speaking we are in a "Holding Pattern" as far as operations are concerned. With new city facilities under construction we are programming minimal increases in staff or new line item expenditures for the next twelve months. That being said, we are anticipating that as our community continues to grow we will increase our staff to meet the demands of our citizens. However, for this fiscal year we have echoed our conservative approach to general fund expenditures by balancing this budget on the same $0.539677 tax rate adopted in the previous fiscal year.

Looking back over the past year, many projects are now complete or under construction. With the anticipated completion of the Public Safety Facility in November of 2014 we are looking forward to new construction of the proposed City Hall, Library, and Municipal Court facility. This new building, as well as other infrastructure improvements, is financed through Series 2014 Certificates of Obligation. Additionally, Hewitt continues to invest in public works improvements like the Commerce Park elevated storage facility as well as Panther Way and Old Temple Road street improvements.

Hewitt is expected to have significant new commercial and retail development over the course of the next eighteen months. With the recent announcement of a Wal-Mart Supercenter and ongoing dialogue of significant retail in Commerce Park, Hewitt residents will benefit from reduced loss of retail sales to surrounding communities. In otl1er words, new opportunities for our residents for both jobs and shopping will prove to be beneficial to the economic health of our community.

As stated above, the budget is balanced on the same tax rate currently in place, $0.539677 per $100 of property valuation. This calculates to a total ad valorem budgeted revenue increase of 8%. Of this rate, $0.360046 cents (67%) will be used for maintenance & operation with the remaining $0.179631 cents (33%) to be used for debt service.

P.O. Box 610 • Hewitt, Texas 76643-0610

DO IT IN HEWITT 14 Revenues forecasted for this proposed budget total $13,728,811, made up of $7,516,936 from the General Fund and $6,211,875 from the Water and Wastewater Fund. Conversely, Expenditures total $13,721,979 with $7,512,479 from the General Fund and $6,209,500 from the Water and Wastewater Fund.

This budget contemplates an increase in the volume charges for both water and wastewater fees as well as a three dollar increase to the monthly base wastewater rate. These rate adjustments are in accordance with the long term rate adjustment plan developed in August 2009 and updated annually by Economists.com. As forecast, the rate structure reflects the increasing costs to provide water and wastewater and support capital improvements. Looking into future years, Hewitt plans to continue implementation of these incremental rate increases.

The budget includes a cost of living adjustment (COLA) of three percent (3%) for all employees as well as the two percent (2%) employee step plan. Additionally, review of compensation levels for all employees will result in additional salary increases for specific employees where duties and responsibilities have changed significantly. On a different note, this marks the first year employees who use tobacco products are required to pay a portion of their monthly health insurance premium. This policy reflects Hewitt's commitment to overall wellness of our employees and offsets higher insurance cost for tobacco using employees that would otherwise be paid by our citizens.

It is important to note this letter simply augments formal communication made to the City Council over the course of several public meetings held over the past few months. This includes a budget specific workshop in which a formal presentation concerning the budget is presented to the public.

Hewitt continues to make progress. The improvements that have been made over the past several years are warmly received by the public and help to enhance our quality of life in and around Hewitt. The fiscally conservative approach of the City Council coupled with practical policy guidance serves our residents well. I am pleased to be part of the process and kindly appreciate your consideration.

Respectfully submitted,

Adam Miles City Manager

DO IT IN HEWITT 15

STRATEGIC DIRECTION

DO IT IN HEWITT 16

Strategic Direction

Vision Statement

To have a community that is safe, friendly, and family-oriented where residents enjoy affordable homes, quiet, safe neighborhoods, and a positive community spirit; to attract and promote thriving businesses which provide goods and services for our community and the surrounding area.

Mission Statement

The mission of the City of Hewitt is to enact the will of the people, to maintain and enhance the quality of life, providing services for residents and businesses in a courteous, efficient, honest and competent manner, and ensuring the safety and well- being of all citizens. To accomplish our mission we will:

 Practice responsive, effective governance;  Be unrelenting in our efforts to improve service quality, cost and effectiveness;  Create and maintain effective partnerships;  Be accountable to citizens and each other for our actions; and,  Uphold the highest professional and ethical standards.

DO IT IN HEWITT 17 STRATEGIC DIRECTION

LONG TERM PLANNING PROCESS

Hewitt Comprehensive Plan 2022

The City of Hewitt is guided by a comprehensive strategic plan called the City of Hewitt Comprehensive Plan 2022. The Comprehensive Plan (the Plan) was adopted on April 21, 2003. The Plan documents and formalizes the goals and processes by which Hewitt will strive to enhance its quality of life. These policies and recommendations are supported by a set of goals and objectives established by citizens, business leaders and City leaders. Its foundation is the City’s values statement, mission statement and a set of seven defined goals.

Mission Statement and Defined Goals

There are Seven Defined Goals intended to support the City’s Mission listed on the following page. Each Goal represents a specific direction given toward achieving the more general Mission Statement. These City Goals are further clarified by Objectives which can be assigned to the appropriate departments. These objectives are listed on the page following the seven defined goals.

Link to the Annual Budget

The Annual Budget is the Annual Operating Plan based on the City of Hewitt Comprehensive Plan 2022 and is prepared around the Seven Directed Goals. Both Goals and Objectives are identified through strategic planning sessions with the City Council, City Manager, senior management team and key departmental staff guided by the Plan and Council priorities.

Each department within the City has developed its own unique set of Departmental Goals which enhance its purpose and connection to their identified City Goals. Annually, each department reviews and updates these Goals. Annually, the City Manager reviews the original Goals, Departmental Goals, and Achievements reached and presented to the City Council. City Council then sets and confirms the direction for the upcoming budget year. Within each Departmental Goals are specific plans which guide the direction of the detailed tasks to be performed at the departmental level and record the outcome of the tasks.

DO IT IN HEWITT 18 Strategic Direction City of Hewitt Comprehensive Plan 2022 THE CITY OF HEWITT'S SEVEN LONG TERM GOALS Provide an efficient, safe and connective system that is coordinated with existing needs and with plans GOAL #1 transportation for future growth; this system should be economical and responsive to adjacent land uses.

Protect the integrity of existing and future neighborhoods by ensuring that existing neighborhoods are maintained to a GOAL #2 high standard and by ensuring that new neighborhoods are initially developed to a high standard. Provide for housing diversity throughout the City.

Provide adequate local infrastructure such that existing and future development can be served. Ensure that public GOAL #3 services and facilities will adequately serve the needs of residents and businesses with the City and that such services are adaptable to future growth.

Ensure that local residents and businesses feel from crime and injury and have trust and shared GOAL #4 safe and secure responsibility for maintaining a safe environment.

Encourage the most desirable and efficient while enhancing the physical and economic environment of GOAL #5 use of land Hewitt. Maintain and enhance the City's local character and aesthetic value through land use planning.

Enhance and expand the by attracting and maintaining businesses in Hewitt. Ensure that Hewitt GOAL #6 local economy projects a positive visual image that makes the City attractive to quality businesses.

Foster a with the public and encourage citizen involvement. Provide recreation opportunity for the GOAL #7 positive interaction population in Hewitt.

HEWITT'S SEVEN LONG‐TERM GOALS ‐ Broken down by Objective GOAL #1 ‐ TRANSPORTATION Provide an efficient, safe and connective transportation system that is coordinated with existing needs and with plans GOAL #1 for future growth; this system should be economical and responsive to adjacent land uses.

Ensure that the following concerns are addressed when making decisions regarding transportation within the City: Obj 1.1 regional transportation; ensuring mobility; roadway maintenance; adequate access, connections; neighborhood traffic, signs, impact of land uses. Ensure that a positive image of Hewitt is reflected within major transportation corridors.

Work closely with regional transportation planning groups and neighboring municipalities to ensure that regional Obj 1.2 transportation issues, especially those that directly affect Hewitt (e.g., frontage roads), are addressed with City input.

Ensure that local roadways, such as Hewitt Drive, can accommodate increases in traffic, and that local intersections, such as Old Temple and Spring Valley Boulevard, are adequate. Establish standards for shared drives, for circulation Obj 1.3 within new developments, and for protecting the integrity of major roadways; ensure that such standards are integrated into the City’s Subdivision Ordinance.

Identify any exiting transportation deficiencies, and establish ways in which to improve such deficiencies, if possible; Obj 1.4 concentrate such efforts toward arterial roadways that funnel traffic to and from Interstate Highway 35. Investigate the feasibility of extending Hewitt Drive to Interstate Highway 35.

Protect the investment in the public transportation system through preventive maintenance and ongoing rehabilitation Obj 1.5 of streets. Perform annual maintenance upgrades.

GOAL #2 ‐ NEIGHBORHOODS Protect the integrity of existing and future neighborhoods by ensuring that existing neighborhoods are maintained to a GOAL #2 high standard and by ensuring that new neighborhoods are initially developed to a high standard. Provide for housing diversity throughout the City.

Ensure that new residential areas are developed to a high standard by reviewing, and revising, if necessary, the existing Obj 2.1 standards for residential development. DO IT IN HEWITT 19 Establish strategies for encouraging increased square footages and lot sizes to encourage low-density residential Obj 2.2 development.

Ensure that the City’s Zoning Ordinance provides for an adequate range of square footages and lot sizes for new Obj 2.3 development.

Ensure that there is adequate variety in terms of housing types within the City that will meet the affordable housing Obj 2.4 needs of all income and age levels.

GOAL #3 ‐ INFRASTRUCTURE

Provide adequate local infrastructure such that existing and future development can be served. Ensure that public GOAL #3 services and facilities will adequately serve the needs of residents and businesses with the City and that such services are adaptable to future growth. Ensure that new development costs are balanced with the revenues generated.

Recognize the need for localized water, and investigate ways in which Hewitt can be less dependent on water provided Obj 3.1 by sources other than the City. Recognize the need for efficient and effective roadways.

Investigate challenges related to water pressure, and ensure that citizens are made aware of possible reasons for such Obj 3.2 challenges, including high water usage. Investigate challenges to roadways from high traffic or natural wear and tear on structure. There is adequate water and wastewater available to serve existing areas and future growth areas by studying the usage Obj 3.3 and capacity of existing systems and the feasibility of expanding those systems.

Water Distribution: Ensure that water system meets quality standards, meeting EPA and TNRCC standards. Reduce Obj 3.4 current water loss rate by 5% by developing leak detection program.

Pump Maintenance: Provide high quality service to our customers 24 hours a day with experienced well-trained water Obj 3.5 and wastewater system operators. Wastewater Collection: Maintain all public wastewater collection system lines in free-flowing condition to protect the Obj 3.6 public health and environment.

Ensure the maintenance of drainage right of ways to ensure proper flow of storm waters throughout the city. Follow Obj 3.7 thru on recommendations of storm water studies.

GOAL #4 ‐ SAFETY & SECURITY Ensure that local residents and businesses feel safe and secure from crime and injury and have trust and shared GOAL #4 responsibility for maintaining a safe environment.

Ensure that there is sufficient police and fire protection for safety for current residents, and ensure that the City remains Obj 4.1 aware of necessary increases in staff and/or related resources (e.g., police cars, fire engines, etc.) to enable such protection for future residents.

Define standards for adequate response/service levels for public services and facilities, such as the following: 1) Obj 4.2 Municipal government 2) Police and Fire Protection 3) Recreational opportunities 4) Utilities/Infrastructure and Solid Waste Management.

Ensure that the community is prepared to respond to emergencies, natural disasters, catastrophic acts and other events Obj 4.3 that threaten the health and safety of the public. Continue to review Standard Operations Guidelines.

GOAL #5 ‐ USE OF LAND

Encourage the most desirable and efficient use of land while enhancing the physical and economic environment of GOAL #5 Hewitt. Maintain and enhance the City’s local character and aesthetic value through land use planning.

Ensure that local land use policies encourage appropriate areas for the development of nonresidential uses, such as along Interstate Highway 35, Sun Valley Boulevard, and Hewitt Drive. Establish land use policies to encourage a Obj 5.1 balance of land uses so that there are adequate areas for nonresidential uses that will provide the essential tax base needed for the City to support existing and future residents. DO IT IN HEWITT 20

Obj 5.2 Establish standards related to the development of nonresidential uses in order to ensure a positive visual perception of Hewitt along the major thoroughfares. Continue the City's current level of proactive code enforcement.

Obj 5.3 Establish land use policies, possibly within the Zoning Ordinance, to encourage the area along Interstate Highway 35 to become a high quality retail corridor that would enhance Hewitt, both economically and visually.

Obj 5.4 Identify specific land uses that are needed to serve the citizens of and visitors to Hewitt, such as healthcare related land uses, hotels, recreation, and retail; establish ways in which the City can proactively attract these identified land uses.

Ensure that the regulatory policies within the City’s Zoning Ordinance and related map are consistent with current City Obj 5.5 needs and desires; establish ways in which the Ordinance can be regularly reviewed, and if necessary revise, the City’s Zoning Ordinance to ensure that high standards are required for new nonresidential development.

GOAL #6 ‐ LOCAL ECONOMY Ensure that Hewitt projects a positive visual image that makes the City attractive to quality businesses. Enhance and GOAL #6 expand the local economy by attracting and maintaining businesses in Hewitt.

Expand and diversify the City’s tax base. Increase cooperation with private sector developers, regional economic Obj 6.1 development organizations, and economic development allies by providing assistance to developers with difficulties that may occur in the development process.

Create new jobs and expand the tax base. Establish economic indicators on the City’s website to provide additional Obj 6.2 information to prospective businesses. Also, create and provide site-specific information and geographic information to prospective and existing industries.

Review current policies related to economic development, such as tax abatement, and revise such policies as necessary. Obj 6.3 Establish specific ways in which to actively market Hewitt as a premier location for target industries.

Create a general marketing theme for Hewitt that emphasizes positive local characteristics such as quality of life, quality Obj 6.4 labor force, competitive land prices and supportive City government.

Research and investigate the ability of Hewitt to compete with surrounding communities for new business development Obj 6.4 and business retention; identify ways in which Hewitt can be increasingly competitive.

GOAL #7 ‐ POSITIVE INTERACTION Foster a positive interaction with the public and encourage citizen involvement. Provide recreation opportunity for the GOAL #7 population in Hewitt.

Provide timely and accurate public information via the City’s website. Improve awareness and understanding of City Obj 7.1 programs, services and issues and promote a positive public image of the organization. Add City’s approved Budget and Comprehensive Annual Financial Report to the City website.

Make doing business with the City more user-friendly by offering services, such as paying for water bills, with the Obj 7.2 Internet.

Ensure that the public is made aware of opportunities for involvement in local City activities, such as serving on various Obj 7.3 City Boards and Committees.

Obj 7.4 Recognize the importance of recycling and the public benefit of local programs related to recycling.

Recognize the importance of providing activities and facilities that will meet the needs of local growing and active Obj 7.5 people, and establish ways in which the City can participate in the provision of recreational activities.

Recognize the importance of providing an area for recreational activities, such as sports and family gatherings. Obj 7.6 Maintain the area within the standards of the City Council.

DO IT IN HEWITT 21 CITY ORGANIZATION

DO IT IN HEWITT 22 THE CITY ORGANIZATION

The City of Hewitt is a home-rule City operating under a Council-Manager form of government. All powers of the City are vested in an elected Council, consisting of seven members who elect one of their members to become Mayor. The Council enacts local legislation, determines City policies, and employs the City Manager.

The City Manager is the Chief Executive Officer and the head of the administrative branch of the City government. He is responsible to the Council for the proper administration of all affairs of the City.

The City government provides a broad range of goods and services to its citizens. The activities and personnel required to provide these goods and services are organized into broad managerial areas called Funds. Funds are separate fiscal and accounting entities with their own resources and budgets necessary to carry on specific activities and attain certain objectives.

Funds are further organized into functional groups called Departments. A Department is a group of related activities aimed at accomplishing a major City service or program (e.g. Police Department).

A Department may be further divided into smaller areas called Divisions. Divisions perform specific functions within the Department (e.g. Animal Control is a Division of the Police Department).

At the head of each Department is a Director who is an officer of the City. Directors have supervision and control of a Department and the Divisions within it, but are subject to the supervision and control of the City Manager. A Department Head may supervise more than one Department.

DO IT IN HEWITT 23 Hewitt Functional Structure

Citizens of HEWITT

CITY COUNCIL

City Manager

Community Assistant City Director of Finance Director HR/Civil Service Library Director CIty Secretary Development Manager Utilities (13) (4.25) Director (6) (4.5)

Municipal Court Library Assistants Police (33.5) Fire (15) Public Works (7) Utility Billing (4) Inspections (1.5) (2) (3)

Equipment Assistant Finance Part‐time Field Assistant (5) Custodian (1) Operators (2) (1.25) Assistants (2)

Field Assistants Equipment CD Coordinator (4) Operator (3) (1)

Fleet Maintenance(1)

Drainage Fund (4)

DO IT IN HEWITT 24 Location

The City of Hewitt is located fives miles south of Waco on Interstate 35. Less than

100 miles from Dallas to the north and Austin to the south,

Hewitt Community :

Whether you’re looking for a getaway vacation or an escape from the quick lifestyles of a

City, Hewitt is the place to be featuring amenities of a big city while keeping the serene surrounding of a small town. Its tight knit community brings families together allowing them to develop relationships on a more personable level. Their positive spirit and renowned education make fit for one to call it home.

DO IT IN HEWITT 25 PART I

CITY OF HEWITT CHARTER *

Article II. City Council

Sec. 2.1. City divided into wards. Sec. 2.2. Election of council members, terms and compensation. Sec. 2.3. Prohibiting holding or running for other office. Sec. 2.4. Qualifications. Sec. 2.5. Council to be the judge of the qualification of its own members. Sec. 2.6. Vacancies. Sec. 2.7. Mayor/Mayor Pro-Tem. Sec. 2.8. City attorney. Sec. 2.9. Meetings of the council. See. 2.10. Rules of procedure. Sec. 2.11. Procedure to enact legislation. See. 2.12. Adoption and ratification of existing city ordinances and prior city actions. Sec. 2.13. Code of ordinances. See. 2.14. Interim government.

ARTICLE II. CITY COUNCIL *

Sec. 2.1. City divided into wards.

The city shall be divided into three (3) wards. The territory included in such wards shall be established by ordinance and may be changed from time to time by ordinances as the interest of the city may demand. In the event the limits of the city are extended, annexed territory shall become a part of the ward to which it adjoins until changed by ordinance; and in the event any annexed tract adjoins two (2) or more wards, the ward line or lines intersecting the original city limits shall be considered extended so that such annexed territory shall become parts of such adjoining wards until changed by ordinance. The boundary lines for the wards shall be initially drawn, and adjusted from time to time, so that each ward shall contain approximately the same number of qualified voters. By ordinance, the council may increase the number of wards to six (6).

______

* State law reference-Form of government, V.T.C.A., Local Government Code ' 26.101 et seq.

DO IT IN HEWITT 26 Sec. 2.5. Council to be the judge of the council and who shall be a competent the qualification of its own members. attorney, licensed to practice law in the State The council shall be the judge of the of Texas. The city attorney shall be legal qualifications of its own members, and for advisor of and attorney for all officers of the such purpose shall have power to subpoena city and shall represent the city in all witnesses and require the production of litigation and legal proceedings. records. Sec. 2.9. Meetings of the council. Sec. 2.6. Vacancies. The council shall hold at least one Vacancies occurring on the council may regular meeting in each month at a time to be filled as follows: be fixed by it for such regular meetings, to The council may fill a vacancy by be designated by resolution, which appointment only once in any twelve (12) resolution shall be published at least one month period. Any additional vacancies time following the adoption of the occurring within said twelve (12) month resolution, in the official newspaper of the period must be filled by special election city. The council may hold as many unless said vacancy occurs less than one additional meetings during the month as hundred twenty (120) days before a regular may be necessary for the transaction of the city election, in which event such vacancy or business of the city and its citizens. vacancies may be filled by appointment to State law reference-Open Meetings serve until the next regular city election. Law, V.T.C.A., Government Code ' 551.001 et seq. Sec. 2.7. Mayor/mayor pro tem. At its first meeting following each See. 2.10. Rules of procedure. regular election of councilmen, the council The council shall determine its own shall by election designate one of its rules of procedure and order of business and numbers as mayor and another of its may compel the attendance of its members. numbers as mayor pro tem, each of whom Four (4) members of the council shall shall serve in such capacity for a term of one constitute a quorum to do business and the (1) year. The mayor shall preside at all affirmative vote of a majority of those meetings of the council and shall be attending any meeting at which there is a recognized as head of the city government quorum present shall be necessary to adopt for all ceremonial purposes, for the purpose any ordinance or resolution unless otherwise of receiving service of civil process and for required by law or this charter. All meetings emergency purposes, and for military or of the council shall be open to the public, police purposes, but shall have no except as provided by law, and minutes of administrative duties. The mayor, as a all proceedings shall be kept, to which. any member of the council, shall be entitled to citizen may have access at all reasonable vote upon all affairs considered by the times. The vote upon the passage of all council, but shall have no veto power. The ordinances and resolutions shall be taken by mayor pro tem. shall act as mayor during the ayes and nays and entered upon the minutes, absence or disability of the mayor, and shall and every ordinance or resolution, upon its have power to perform every act the mayor final passage, shall be recorded in a book could perform if present. kept for that purpose and shall be authenticated by the signature of the See. 2.8. City attorney. presiding officer and the city secretary. At The council shall appoint a city the first meeting of the council following the attorney, who shall serve at the pleasure of annual municipal election, the council shall

DO IT IN HEWITT 27 Sec. 2.2. Election of council employee of the city shall become a members, terms and compensation. candidate for nomination or election to any The governing body of the city shall publicly elected office of the city. consist of a council of seven (7) members elected at large by the qualified voters of the Sec. 2.4. Qualifications. city. They shall run for office by place and Each council member shall be a citizen be elected for a term of two (2) years, or of the United States and a qualified voter of until their successors are duly elected and the State of Texas and shall be at least qualified, except as herein provided. The eighteen (18) years of age. Each of the council members shall draw no council members shall be a resident of the compensation as such for their duties, but City of Hewitt, and shall have resided in the may be reimbursed for any expenditure city for a period of at least one (1) year made in behalf of the city or expenses immediately prior to his election. incurred in the performance of their duties when approved by the council. In addition, each person filing for election to and each council member The council, by ordinance at least forty- occupying one of the places designated for a five (45) days prior to the first general city ward shall be a resident of the ward for election following the adoption of this which the place is designated for at least charter, shall divide the city into three (3) thirty (30) days prior to filing for office and wards and shall designate two (2) of the remain a resident of that ward during his or council places for each ward and one of the her term of office. In the event the council, places at large. The present mayor and by ordinance, increases the number of wards council members shall complete their to six (6), the council shall at the same time original terms of office as council members- designate one (1) council place for each at-large. The present mayor shall continue to ward, but the ward residence requirement serve as such until the first meeting stated in the foregoing sentence shall not following the first general city election when apply to the council members occupying a mayor shall be elected as provided herein. such places during the unexpired portion of In the event any vacancy should exist on the the term for which they were elected. council then such vacancy shall be filled in accordance with law. At the first general city A member of the council ceasing to election, a council member-at-large and one possess any of the qualifications specified in council member from each ward shall be this section or any other section of this elected for two (2) year terms. At the second charter, or convicted of a felony while in general city election, one council member office, shall immediately forfeit his office. from each ward shall be elected for a two (2) No member of the council shall hold any year term. Thereafter, three (3) council other elected public office. members shall be elected each even- Editor's note-The filing deadline for numbered year and four (4) council candidates in state law, V.T.C.A., Election members shall be elected each odd- Code ' 143.007, is the 45th day before the numbered year. election; therefore, in order to certify Code cross reference - Voting residency, the candidate must be a resident wards, ' 2-26 et seq. of the ward 45 days prior to filing for office, and not 30 days as stated in this section of Sec. 2.3. Prohibiting holding or the charter. running for other office. State law reference-Eligibility of No person elected to the council shall, candidates, V.T.C..A. Election Code ' during the term for which he was elected, be 141.001 et seq. appointed to any office or position in the service of the city. No salaried officer or

DO IT IN HEWITT 28 DO IT IN HEWITT 29 A CITY COUNCIL MEETING IS …

The process of making and amending laws, developing policy and making decisions for governing your city is made by citizens who have been elected by you and appointed to become Council members. The City Council meets on the first and third Monday of each month at 7:00 p.m. You are welcome to attend any meeting of the City Council.

THE COUNCIL …

There are seven council members. Each must live in one of the city’s three council wards, but is elected by the city-at-large. Each represents the interest of the city as a whole. At their first meeting each May, the council members elect one of their members to be Mayor. He is the presiding officer of the council. The council:

1) adopts and amends city laws; 2) determines City policies and standards; 3) determines how much money shall be spent and for what purposes; 4) determines what City taxes shall be levied; 5) approves contracts and agreements; 6) represents the City.

THE AGENDA …

The Council follows a regular order of business in the conduct of its meeting. The agenda is prepared in advance and all available facts on the subjects are collected by the City Manager and/or a department head. Copies of the agenda are available in the City Secretary’s office and the Council Chambers. The deadline for agenda items is noon on Thursday prior to the Council meeting.

COUNCIL ACTION …

Business presented to the Council is processed by one of the following actions:

 Ordinances: An ordinance or amendment to an ordinance is a “legislative act” and requires a majority vote by the Council, after which it is published. An ordinance is the most binding and permanent type of Council action and may be repealed or changed only be a subsequent ordinance.

 Resolutions: A resolution may be passed expressing the policy of the Council or directing certain types of administrative action. It may easily be changed by a subsequent resolution.

 Motions: A motion is ordinarily used to indicate majority approval of a procedural action, such as to approve a report or recommendation. It may also be used to authorize administrative officials to take certain actions. A motion usually authorizes the disposition of items of business on the agenda.

 Table: When the Council is not prepared to take definite action or when further study is needed, the Mayor may table the matter so that the City Manager, City Attorney, City Engineer or administrative employee may investigate, study and report back.

Four members of the Council constitute a quorum and may conduct City business.

DO IT IN HEWITT 30 BUDGET PROCESS

DO IT IN HEWITT 31 The Budget Process

The City Charter establishes the fiscal year, which begins October 1 and ends September 30. To have an adopted budget in place by October 1 each year, the budget process must begin months before. In May, Department Heads receive budget request packets from the Finance Department. These packets contain information about the Department, including historical expenditure amounts, current expenditure and budget amounts, and estimated expenditure amounts for the upcoming budget year.

While the Departments are preparing their budget requests, the City Manager and the Finance Department calculate personnel costs, debt service requirements and revenue projections for the new year. This data combined with the Department requests, form a preliminary or "first draft" budget. At this stage, the budget is usually unbalanced; that is departmental requests, personnel costs and debt service requirements are usually greater than anticipated revenues.

After receiving the first-draft budget, the City Manager conducts a series of meetings with the individual Department Heads to review and discuss their budget requests. These meetings are held in June, and help the City Manager formulate his priorities and work agenda.

A series of City Council budget workshops are held, usually in July and August. These workshops are open to the public and are posted per open meetings law. Information as to date and time can usually be found in the local media coverage.

The workshops allow the City Council to receive input on the budget from the City Manager, the Departments, and Finance. It is through these workshops, as well as discussions with City staff, that the Council forms its priorities and work program for the proposed budget.

With guidance from the Council, the City Manager then formulates a proposed budget that is submitted to Council. State law and the City Charter require that a public hearing on the proposed budget be held before the Council votes on its adoption. A notice of the public hearing is published in the local newspaper, and the hearing is held during a regular City Council meeting. This hearing provides an opportunity for citizens to express their ideas and opinions about the budget to their elected officials.

After the public hearing, the City Council votes on the adoption of the budget. If the budget is not accepted and formally approved by the City Council before September 30, the prior year’s budget is deemed to have been finally adopted by the Council until such time as the Council adopts a budget.

After adoption of the budget, the City Manager may transfer any appropriation balances between general classifications of expenditures within a Division or Department. The Council may by resolution, transfer any unencumbered appropriation or portion thereof from one Division or Department to another. The City budget may be amended and appropriations altered in accordance therewith in cases of public necessity, after the conduct of a public hearing called for such purpose. This year's budget calendar follows on the next page.

DO IT IN HEWITT 32 BUDGET CALENDAR 2014-2015

BUDGET CREATION BEGINS

Date Required Activity 4/12 CAPITAL PROJECTS - FIVE YEAR PLAN City Manager, City Engineer and Staff meet to discuss Capital Calendar for May 2014 Projects for the upcoming 5 year period. The final Capital Sun Mon Tue Wed Thu Fri Sat Project list is presented to council for review. 123 5/5 CAPITAL PROJECTS - COUNCIL REVIEW 45678910 Council reviews capital projects list prioritizing projects and 11 12 13 14 15 16 17 determining whether financing is needed. 18 19 20 21 22 23 24 5/12 BUDGET KICK-OFF 25 26 27 28 29 30 31 Finance Director prepares and distributes Budget Memo to Department Heads, including departmental budget forms, Calendar for June 2014 personnel benefit estimates, capital outlay forms, and Sun Mon Tue Wed Thu Fri Sat personnel addition forms. Finance Director works on 1234567 Revenue and Debt budgets. 8 9 10 11 12 13 14 6/2 COUNCIL MEETING - NOTICE OF INTENT TO ISSUE 15 16 17 18 19 20 21 Council determines whether to publish Notice of Issuance. 22 23 24 25 26 27 28 6/11 DEADLINE-DEPARTMENT REQUEST 29 30 City Manager reviews Budget Requests & sets up meetings with Department Heads to finalize Proposed Calendar for July 2014 Budget. Also reviews Revenue & Debt budgets. Sun Mon Tue Wed Thu Fri Sat After Finance Director prepares Proposed Budget and 12345 List of Personnel and Capital Requests. 6789101112 7/14 SPECIAL MEETING-BUDGET WORKSHOP 13 14 15 16 17 18 19 City Manager prepares overview of Proposed Budget 20 21 22 23 24 25 26 for council discussion. City Council makes changes, if any, 27 28 29 30 31 in preparation for Record Vote on 7/28 Special Council Meeting. Calendar for August 2014 7/21 REGULAR MEETING-BUDGET DISCUSSION Sun Mon Tue Wed Thu Fri Sat 7/18 City Manager discusses Proposed Budget presentation 12 for City Council. City Council makes changes, if any. 3456789 This is the final draft of the budget that will be voted 10 11 12 13 14 15 16 on at the July 28th council meeting. 17 18 19 20 21 22 23 7/25 DEADLINE-CERTIFIED TAX ROLL 24 25 26 27 28 29 30 Receive Certified Tax Roll from Appraisal District and and prepare final estimate of property tax revenue and 14 7/14 - Budget Workshop discussion-Special Council present the Effective, Rollback, I&S and M&O Rates. 21 7/21 - Budget discussion-Regular Council 7/28 SPECIAL MEETING- TAKE RECORD VOTE 25 7/26 - Receive CERTIFIED TAX ROLL * council determines any tax increase 28 7/28 - Council takes Record Vote setting upper limit required and takes record vote. to tax rate & approving proposed budget * mayor presents name date/place for public hearing 18,25 7/18, 7/25 - Deadlines for publication on budget (Special Meeting 8/25) 23,30 7/23, 7/30 - Published Notices * pass notice of public hearing on tax increase (8/11 & 8/18) 11,18,25 8/11, 8/18 & 8/25 - Required Council meetings in August

BUDGET CREATION ENDS/PUBLICATION & PUBLIC MEETING BEGINS

DO IT IN HEWITT 33

PUBLIC NOTICES & PUBLIC MEETINGS BEGIN

Date Required Activity 7/23 PUBLISH BUDGET NOTICE OF PUBLIC HEARING Calendar for July 2014 * "Notice of Public Hearing " in paper (budget notice) Sun Mon Tue Wed Thu Fri Sat Per charter, 15 days prior to public hearing (8/11) 12345 * "Notice of Public Hearing " on website (budget notice) 6 7 8 9 10 11 12 * Preliminary Proposed Budget is available for public view 13 14 15 16 17 18 19 in City Secretary's office and on website. 20 21 22 23 24 25 26 7/30 PUBLISH REQUIRED TAX NOTICE 27 28 29 30 31 * "Notice of 2014 Tax Year Proposed Property Tax Rate for the City of Hewitt" Calendar for August 2014 (only required to be published one time) Sun Mon Tue Wed Thu Fri Sat * website "Notice of 2014 Tax Year Proposed Property Tax Rate 12 for the City of Hewitt" 3456789 8/11 SPECIAL MEETING ON BUDGET & TAX RATE (1 of 2) 10 11 12 13 14 15 16 * 1st Public Hearing on tax rate 17 18 19 20 21 22 23 * The Public Hearing on the Budget. 24 25 26 27 28 29 30 * Announce date for Council to vote on tax rate (8/25) 8/18 REGULAR MEETING ON TAX RATE (2 of 2) 14 7/14 - Budget Workshop discussion-Special Council * 2nd Public Hearing on the tax rate. 21 7/21 - Budget discussion-Regular Council * Announce date of vote (8/25). 25 7/26 - Receive CERTIFIED TAX ROLL 8/25 SPECIAL MEETING-ADOPT TAX RATE & BUDGET 28 7/28 - Council takes Record Vote setting upper limit * Ordinance accepting & approving Tax Roll to tax rate & approving proposed budget * Ordinance Levying a tax rate; special wording on 18,25 7/18, 7/25 - Deadlines for publication increase in M&O tax revenue and $$ on $100k home 23,30 7/23, 7/30 - Published Notices * Ordinance adopting and appropriating budgets 11,18,25 8/11, 8/18 & 8/25 - Required Council meetings in August 8/26 Council signs paperwork from Tax Assessor setting rates. 8/27 Web Publishing of Adopted Budget. 10/1 Budget becomes effective.

ADOPTED BUDGET IS COMPLETE.

DO IT IN HEWITT 34 The Capital Budget Process

The evaluation of capital projects occurs concurrently with the development of the annual operating budget. Departments are required to describe and quantify any impact of requested projects on the operating budget. Additionally, for substantial new development projects, management is asked to quantify the annual maintenance costs and specify the funding sources for these ongoing costs.

A schedule of the Capital Improvements Plan (CIP) planning process and the annual capital improvements budget process follows. The capital budget is developed concurrently with the operating budget and is integrated into the City budget.

February thru April

City departments expecting to undertake capital projects, regardless of funding source, develop a long-range Capital program guided by City plans, their internal work programs, and capital improvement priorities. The capital needs program identifies projects, costs, and whether the projects are proposed to be funded in the next two years or require long-term financing.

May thru June

Management reviews these written presentations to understand the priority initiatives of the departments and to determine the funding requirements, then works on strategies for immediate or long-term funding. These strategies include evaluating assets; projecting future annual revenues; and exploring financing options.

June thru July

Departments prepare a capital budget request based on the projects identified in their program for the following year. They provide more scope detail than was given in the five- year program and refine cost estimates. Management reviews these in greater detail and drafts a budget based on established criteria and revenue constraints.

July thru August

Management reviews the capital improvements budget with each department head and makes recommendations to the City Council. The City Council reviews and approves the budget.

DO IT IN HEWITT 35 FINANCIAL MANAGEMENT POLICIES

OVERVIEW

The duty and responsibility of the City Manager, as established by City Charter, include preparing and submitting the City’s budget and monitoring its administration, which include preparing proposed financial policies, estimates of all revenue, proposed expenses by fund, department, division, and project, a presentation of outstanding debt, and proposed capital expenditures and projected capital projects which should be undertaken within three (3) succeeding years. The following financial policies are established to provide direction as established by the City Charter.

BALANCED BUDGET ‐ OVERVIEW

The City of Hewitt shall annually adopt a balanced budget where current revenues are equal to, or exceed, current expenditures. Any year end operating surpluses will revert to unappropriated balances for use in maintaining reserve levels set by policy and the balance will be available for capital projects and/or “one‐time only” expenditures.

BUDGETARY CONTROLS

The City shall maintain a budgetary control system to ensure adherence to the adopted budget and associated appropriations. Monthly reports shall be provided comparing actual revenues and expenditures (expenses) to budgeted amounts.

The legal level for expenditure (expense) budget control is the Fund level. Each Department Head is responsible for the budget in their respective departments. Article 7 of the City’s Charter governs the preparation and submission of the budget and the Schedules and Attachments in this budget meet or exceed its requirements.

The Department Heads are given latitude to stay within the total budgeted amount for each department. Budgeted amounts over $500 but not in excess of $15,000 must be approved by the City Manager. Budgeted amounts over $15,000 must be approved by the City Manager & the City Council.

Unbudgeted amounts over $500 but under $3000 must be approved by the City Manager. Non‐ budgeted items costing over $3000 must be approved by the City Manager & the City Council.

It is the policy and practice of the City not to amend the budget at any time during the budget year once it has been approved by the City Council. This is done to track those items which were not budgeted for that year, to research whether they are recurring and to determine if an amount should be budgeted for the revenue/expense in the following year.

DO IT IN HEWITT 36 SERVICE PLANNING

All departments shall share in the responsibility of meeting policy goals and ensuring long‐term financial viability. Future service plans and program initiatives shall be developed reflecting policy directives, projected resources and future service requirements. Department managers are responsible for identifying significant changes and must notify management of all significant changes to the budget.

Management is responsible for monitoring the implementation of the City’s adopted annual budget. Management will review monthly actual expenditure and revenue reports compared to budgeted amounts. Management will also monitor department progress in completing their work program through meetings and review of performance indicators. The City of Hewitt will be developing and enhancing performance measurement into the annual budgeting process. All departments shall be reviewed annually by the City Manager for such performance criteria as program initiatives, compliance with policy direction, program effectiveness and cost efficiency.

MAINTAINING RESERVE LEVELS

Fund balance shall be adequate to handle unexpected decreases in revenues plus extraordinary unbudgeted expenditures. The minimum fund balance shall be at least 90 days of operating expenditures. Small contingency funds may be established by department heads as appropriate and approved as part of the budget by City Council.

It is also appropriate to use fund balance when the fund balance has increased beyond the reserve requirements due to higher than anticipated revenues. In this circumstance, fund balance will be used for one‐time expenditures, not on‐going operating costs. In all circumstances, it is important to retain sufficient undesignated fund balance for unforeseen circumstances.

BORROWING FOR OPERATING EXPENSES

The City shall not use debt or bond financing to fund current operating expenditures (expenses).

SELF SUPPORTING ACTIVITIES

All enterprise activities of the city shall be self‐supporting to the greatest extent possible. These activities include, but are not limited to, enterprise funds such as the Water and Sewer Fund and the Drainage Fund. The City will not use property taxes or other General Fund revenues to subsidize the utility operations.

DO IT IN HEWITT 37 BUDGET PRESENTATION AWARD

The City shall annually submit necessary documentation to obtain the Distinguished Budget Presentation Award as awarded by the Governmental Finance Officers Association of the United States and Canada.

LONG RANGE PLANNING

In order to provide City officials with pertinent data to make decisions for multi‐year policy direction, management shall annually develop, with the assistance of City departments, a five‐year General Fund and Utility Fund revenue and expenditure forecast and a Current Capital Improvements Report along with a five‐year Projected Capital Improvements Report. These forecast will identify changes in revenue and expenditures due to projected new development in the City, program changes, and capital projects coming on‐line. Departments are required to assess and report annually on needed capital outlays and projects. During the budgeting process, all capital improvement projects are analyzed to determine if they reduce, maintain, or increase operating and maintenance costs.

ASSET INVENTORY AND CONDITION INVENTORY

The City shall maintain its physical assets at a level adequate to protect the City’s capital investments and minimize future maintenance and replacement costs. The capital budget shall provide for the adequate maintenance, repair and orderly replacement of the capital plant and equipment from current revenues where possible. In addition, each department shall develop systems and processes to assess the condition of the capital assets that they are responsible for maintaining. This condition assessment shall be updated on an annual basis.

REVENUE POLICIES ‐ OVERVIEW

The objective of the revenue policies is to ensure that the funding for public programs is derived from a fair, equitable and adequate resource base, while minimizing tax differential burdens. The City values a diversified mix of revenue sources to mitigate the risk of volatility. The major source of revenue is property taxes, which is 49% of the total General Fund revenue. Sales tax is a secondary source of revenue providing 21% of revenue to the General Fund. Since sales tax is a direct function of business cycles and economy, it is important to make every effort to improve the diversity of the City’s revenue sources.

REVENUE STRUCTURE

The monitoring of revenues is a primary concern. The City shall maintain a diversified and stable revenue system to provide general government services to the public, such as public safety, safe city infrastructures, such as streets, and quality‐of‐life services such as the library and the parks. To

DO IT IN HEWITT 38 accomplish this, revenues are monitored on a continuous basis to ensure that receipts from each revenue source are at maximum levels. An understanding of the economic and legal factors which directly and indirectly affect the level of revenue collections is an important part of the City’s revenue policy.

REVENUE COLLECTION

The City shall follow an assertive policy of collecting revenues. The City will, after having considered all possible cost reduction alternatives, explore the possibility of obtaining new or expanded revenue sources as a way to help ensure a balanced budget. Cost recovery of revenue sources will be analyzed on an annual basis and modified as necessary to ensure that revenue collections reflect the cost of providing associated City services.

SOURCES OF SERVICE FINANCING

Services which have a city‐wide benefit shall be financed with revenue sources, which are generated from a broad base, such as property and other taxes. Services where the customer determines the use shall be financed with user fees, charges and assessments directly related to the level of service provided.

AD VALOREM TAXES

The ad valorem (property tax) rate shall be adequate to produce revenues required to pay for City services as approved by City Council.

SALES TAX RATE

Sales tax revenue projection should be conservative due to the elastic nature of the economically sensitive revenue source.

USER FEES

The City shall maximize the utilization of user charges in lieu of general revenue sources for services that can be individually identified and where costs are directly related to the level of service.

COST OF SERVICE

The City shall establish user charges and fees at a level which reflects the costs of providing the service, to the extent legally allowable. The City will provide timely and accurate billing to customers, providing safeguards to ensure prompt payment and minimal financial losses from delinquent customers which have to be passed onto the remaining customers. Operating, direct, indirect and capital costs shall be

DO IT IN HEWITT 39 considered in the charges. Full cost charges shall be imposed unless it is determined that policy and market factors require lower fees.

POLICY AND MARKET CONSIDERATION

The City shall also consider policy objectives and market rates and charges levied by other public and private organizations for similar services when fees and charges are established.

ANNUAL REVIEW OF FEES AND CHARGES FOR SERVICES

The City Manager shall direct an annual review of fees and charges for services and will make appropriate modifications to ensure that charges grow at a rate which keeps pace with the cost of efficiently providing the service and to assure that one group of users are not subsidized by the general populace.

NON‐RESIDENT CHARGES

Where practical, user fees and other appropriate charges shall be levied for activities or facilities in which non‐residents participate in order to relieve the burden on City residents. Non‐resident fees shall be structured at market levels so that resident users are subsidized to the greatest extent possible.

WATER, WASTEWATER AND DRAINAGE RATES

User charge fees for water, wastewater and drainage shall be sufficient to finance all operating, capital and debt service costs for these utilities while maintaining sufficient revenues for the timely maintenance and replacement of utility system capital assets. Rates will be set such that these enterprise funds are never in a cash deficit position during the year. Additionally, where feasible, rates will be established where each portion of the service will cover the cost of the service provided. In addition, the City rate structures for water, wastewater and drainage services will, to the greatest extent possible, be fair and equitable to all customers.

PERCENTAGE OF COST RECOVERY

The extent to which the total cost of service should be recovered through fees depends upon the nature of the facilities, infrastructure or services. In the case of fees for facilities, infrastructure and proprietary services, total cost recovery may be warranted. In the case of governmental services, it may be appropriate for a substantial portion of the cost of such services to be borne by the City’s taxpayers, rather than the individual users of such services. Proprietary services are those which are provided for the benefit and enjoyment of the residents of the City, such as parks and recreation

DO IT IN HEWITT 40 services. Governmental services are those which are provided by the City for the public good such as regulating land use, maintaining streets, and providing police and fire protection.

ADMINISTRATIVE TRANSFERS

The City shall recover from the enterprise operation an administrative fee. The fee shall be considered a payment for certain administrative functions (oversight management, accounting, human resource assistance, etc.) The City shall recover from the enterprise operation payments‐in‐lieu of taxes (i.e., if the operation was operated by someone other than the City, the City would receive property tax revenues) and franchise fees from the water operation and the wastewater operation.

USE OF ONE‐TIME REVENUES

One‐time revenues should be used only for one‐time expenditures and not for ongoing expenditures. By definition, one‐time revenues cannot be relied on in future budget years. Examples of one‐time revenues are sales of City assets or one‐time payments to the City.

RESERVE POLICIES ‐ OVERVIEW

The objectives of the reserve policies is not to hold resources solely as a source of interest revenue, but rather to provide adequate resources for cash flow and contingency purposes, while maintaining reasonable tax rates and charges for services.

OPERATING FUNDS – CONTINGENCY RESERVES

The General Fund and Utility Fund balance shall be adequate to handle unexpected decreases in revenues plus extraordinary unbudgeted expenditures. The City shall strive to maintain a targeted working capital balance of 90 days of operating reserves in both Fund to meet unanticipated contingencies and fluctuations in revenue.

The number of days of working capital shall be calculated by taking all of the budgeted expenditures (expenses) for the fund (including debt service and capital outlay), dividing by 12 months and multiplying by 3 months.

DEBT SERVICE RESERVES

The General Fund and Utility Fund will strive to maintain a targeted working capital balance of 90 days of reserves. These reserves include debt service (see preceding Contingency Reserve). In addition, any excesses built up in the debt service accounts over time will be used toward debt service to minimize the impact of the city’s Interest and Sinking (Debt Service) portion of the total tax rate.

DO IT IN HEWITT 41 RESERVES FOR SPECIFIC PURPOSES

Management may establish reserves in the proposed budget for specific purposes above the required fund reserves. Examples include a reserve for equipment, technology or unexpected capital needs.

DEBT POLICIES ‐ OVERVIEW

The objectives of the debt management policy is to maintain the City’s ability to incur present and future debt at minimal interest rates in amounts needed for infrastructure and economic development of the City without endangering the City’s ability to finance essential City services. Debt financing may include, but is not limited to, general obligation bonds, revenue bonds and certificates of obligation. The underlying asset that is being financed should have a longer useful life than the maturity schedule of the debt issued for the financing of the asset. Since issuing debt costs more to the entity than purchasing assets outright, the use of financing will be carefully evaluated to ensure that benefits, tangible and/or intangible derived from financing exceed the related financing costs.

PLANNING AND CONDITIONS OF ISSUANCE OF OBLIGATIONS

The City Manager shall evaluate and consider the following factors in analyzing, reviewing, and recommending the issuance of obligations:

1. Purpose and feasibility of project.

2. Public benefit of project.

3. Quantification of capital costs.

4. Impact on debt ratios generally applied by rating agencies.

5. Impact on the General Fund

6. Availability of appropriate revenue stream(s).

7. Debt service requirements including credit implications.

8. Aggregate debt burden upon the City’s tax base, including other entity’s tax supported debt.

9. Analysis of financing and funding alternatives, including interfund borrowing and available reserves from other City funds.

10. Operating costs associated with project.

DO IT IN HEWITT 42 11. Opportunity costs to other capital needs and requirements.

12. If a refinancing: the net present value savings; size of issue; absolute dollar savings; and number of years remaining on outstanding obligations.

TYPES OF DEBT

GENERAL OBLIGATION BONDS AND CERTIFICATE OF ISSUANCE

The City shall utilize tax supported general obligation bonds or certificates of obligations to finance only those capital improvements and long term assets which have been determined to be essential to the maintenance and development of the City. The issuance of GO bonds should be carefully considered and used only for projects benefiting the broad public interest. True public projects of an essential nature and without associated revenue streams shall be the strongest candidates for GO financing.

REVENUE SUPPORTED BONDS

The City shall utilize, where feasible, revenue supported or backed bonds to finance public improvements for its enterprise operations. As a general rule, revenue bonds will be issued to finance assets that provide revenue that will repay the obligation issued. The use of revenue bonds is the favored form of obligation if direct beneficiaries of a given improvement can be clearly identified and such beneficiaries can pay a fair share of its costs. The City will maintain sufficient net revenues to meet the debt coverage required by existing revenue bond indentures.

DEBT MANAGEMENT

The City shall strive to maintain a balanced relationship between debt service requirements and current operating costs, encourage growth of the tax base, actively seek alternative funding sources, minimize interest costs and maximize investment rate of returns.

BOND TERM

The City shall issue bonds with terms no longer than the economic useful life of the project. For revenue supported bonds, principal repayments and associated interest costs shall not exceed projected revenue streams.

DEBT LIMITS

The City evaluates new debt issuance as it relates to the current debt level. The amount of debt retired each year is compared to the amount of debt to be issued any given year and an analysis performed to determine the community’s ability to assume and support additional debt service

DO IT IN HEWITT 43 payments. When appropriate the issuance of self‐supporting revenue bonds and self‐supporting general obligation bonds are also considered.

An objective, analytical approach is used to make the determination of whether debt is issued. The process compares generally accepted standards of affordability to the current values for the City. Those standards may include measures such as: debt per capita, debt as a percent of assessed value, debt service payments as a percent of current revenues and/or current expenditures, and the level of overlapping net debt of all local taxing jurisdictions. The City strives to achieve the standards at levels below the median industry measures for cities of comparable size.

DEBT STRUCTURE

Bonds are generally issued with an average life of 20 years or less for general obligation bonds or 20 years for revenue bonds. Typically interest is paid in the first year after a bond sale and principal is paid no later than the second fiscal year after the debt is issued. A competitive bidding process is used in offering debt unless the issue warrants a negotiated bid. The city attempts to award bonds based on a true interest cost (TIC) basis; however, a net interest cost (NIC) approach may be used.

CONTINUING DISCLOSURE

City staff is committed to providing full and continuous disclosure to rating agencies. Credit ratings are sought from two rating agencies. City staff uses a variety of resources to prepare information that may be useful to rating agencies during a bond rating. The Comprehensive Annual Financial Report (CAFR) contains an annual update of required continuing disclosure under Securities and Exchange Commission Rule 15c2‐12 concerning primary and secondary market disclosure. The CAFR and material events are reported to Nationally Recognized Municipal Securities Information Repositories (NRMSIR’s) according to timeframes required within the SEC. Ongoing disclosure information is presented to the Municipal Advisory Council (MAC) of Texas annually after completion of the Comprehensive Annual Financial Report. As required by the SEC, the city files continuing disclose with the MSRB, Municipal Securities Rulemaking Board, thru EMMA, the Electronic Municipal Market Access website, the official source of municipal market documents and data. Both support the MSRB’s investor protection mission and its efforts to provide municipal market transparency.

REFUNDINGS

City staff and the city’s financial advisor 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 5% of the refunded maturities.

DO IT IN HEWITT 44 FEDERAL TAX COMPLIANCE

These procedures, together with any federal tax certifications, provisions included in the order, ordinance or resolution (the "Authorizing Document") authorizing the issuance and sale of any tax‐ exempt debt such as the Bonds (the "Obligations"), letters of instructions and/or memoranda from bond counsel and any attachments thereto (the "Closing Documents"), are intended to assist the Issuer in complying with federal guidelines related to the issuance of such Obligations.

A. Arbitrage Compliance. Federal income tax laws generally restrict the ability to earn arbitrage in connection with the Obligations. The Issuer's Finance Director (such officer, together with other employees of the Issuer who report to or such officer, is collectively, the "Responsible Person") will review the Closing Documents periodically (at least once a year) to ascertain if an exception to arbitrage compliance applies. Procedures applicable to Obligations issued for construction and acquisition purposes. With respect to the investment and expenditure of the proceeds of the Obligations that are issued to finance public improvements or to acquire land or personal property, the Responsible Person will:

1. Instruct the appropriate person who is primarily responsible for the construction, renovation or acquisition of the facilities financed with the Obligations (the "Project") that (i) binding contracts for the expenditure of at least 5% of the proceeds of the Obligations must be entered into within 6 months of the date of closing of the Obligations (the "Issue Date") and that (ii) the Project must proceed with due diligence to completion;

2. Monitor that at least 85% of the proceeds of the Obligations to be used for the construction, renovation or acquisition of the Project are expended within 3 years of the Issue Date;

3. Monitor the yield on the investments purchased with proceeds of the Obligations and restrict the yield of such investments to the yield on the Obligations after 3 years from the Issue Date; and

4. To the extent that there are any unspent proceeds of the Obligations at the time the Obligations are refunded, or if there are unspent proceeds of the Obligations that are being refunded by a new issuance of Obligations, the Responsible Person shall continue monitoring the expenditure of such unspent proceeds to ensure compliance with federal tax law with respect to both the refunded Obligations and any Obligations being issued for refunding purposes.

Procedures applicable to Obligations with a debt service reserve fund. In addition to the foregoing, if the Issuer issues Obligations that are secured by a debt service reserve fund, the Responsible Person will assure that the maximum amount of any reserve fund for the Obligations invested at a yield higher than the yield on the Obligations will not exceed the lesser of (1) 10% of the principal amount of the Obligations, (2) 125% of the average annual debt service on the Obligations measured as of the Issue Date, or (3) 100% of the maximum annual debt service on the Obligations as of the Issue Date.

DO IT IN HEWITT 45 Procedures applicable to Escrow Accounts for Refunding Obligations. In addition to the foregoing, if the Issuer issues Obligations and proceeds are deposited to an escrow fund to be administered pursuant to the terms of an escrow agreement, the Responsible Person will: 1. Monitor the actions of the escrow agent to ensure compliance with the applicable provisions of the escrow agreement, including with respect to reinvestment of cash balances; 2. Contact the escrow agent on the date of redemption of obligations being refunded to ensure that they were redeemed; and

3. Monitor any unspent proceeds of the refunded obligations to ensure that the yield on any investments applicable to such proceeds are invested at the yield on the applicable obligations or otherwise applied (see Closing Documents).

Procedures applicable to all Tax‐Exempt Obligation Issues. For all issuances of obligations, the Responsible Person will:

1. Maintain any official action of the Issuer (such as a reimbursement resolution) stating the Issuer’s intent to reimburse with the proceeds of the Obligations any amount expended prior to the Issue Date for the acquisition, renovation or construction of the Project;

2. Ensure that the applicable information return (e.g., U.S. Internal Revenue Service ("IRS") Form 8038‐G, 8038‐GC, or any successor forms) is timely filed with the IRS;

3. Assure that, unless excepted from rebate and yield restriction under section 148(f) of the Internal Revenue Code of 1986, as amended, excess investment earnings are computed and paid to the U.S. government at such time and in such manner as directed by the IRS (i) at least every 5 years after the Issue Date and (ii) within 30 days after the date the Obligations are retired;

4. Monitor all amounts deposited into a sinking fund or funds pledged (directly or indirectly) to the payment of the Obligations, such as the Interest and Sinking Fund, to assure that the maximum amount invested within such applicable fund at a yield higher than the yield on the Obligations does not exceed an amount equal to the debt service on the Obligations in the succeeding 12 month period plus a carryover amount equal to one‐twelfth of the principal and interest payable on the Obligations for the immediately preceding 12‐month period; and

5. Ensure that no more than 50% of the proceeds of the Obligations are invested in an investment with a guaranteed yield for 4 years or more.

DO IT IN HEWITT 46 B. Private Business Use. Generally, to be tax‐exempt, only an insignificant amount of the proceeds of each issue of Obligations can benefit (directly or indirectly) private businesses. The Responsible Person will review the Closing Documents periodically (at least once a year) for the purposes of determining that the use of the Project financed or refinanced with the proceeds of the Obligations does not violate provisions of federal tax law that pertain to private business use. In addition, the Responsible Person will: 1. Develop procedures or a “tracking system” to identify all property financed with Obligations; 2. Monitor and record the date on which the Project is substantially complete and available to be used for the purpose intended;

3. Monitor and record whether, at any time the Obligations are outstanding, any person, other than the Issuer, the employees of the Issuer, the agents of the Issuer or members of the general public:

(i) Has any contractual right (such as a lease, purchase, management or other service agreement) with respect to any portion of the Project;

(ii) Has a right to use the output of the Project (e.g., water, gas, electricity); or

(iii) Has a right to use the Project to conduct or to direct the conduct of research;

4. Monitor and record whether, at any time the Obligations are outstanding, any person, other than the Issuer, has a naming right for the Project or any other contractual right granting an intangible benefit;

5. Monitor and record whether, at any time the Obligations are outstanding, the Project, or any portion thereof, is sold or otherwise disposed of; and

6. Take such action as is necessary to remediate any failure to maintain compliance with the covenants contained in the Authorizing Document related to the public use of the Project.

C. Record Retention. The Responsible Person will maintain or cause to be maintained all records relating to the investment and expenditure of the proceeds of the Obligations and the use of the Project financed or refinanced thereby for a period ending three (3) years after the complete extinguishment of the Obligations. If any portion of the Obligations is refunded with the proceeds of another series of Obligations, such records shall be maintained until the three (3) years after the refunding Obligations mature or are otherwise paid off. Such records can be maintained in paper or electronic format.

D. Responsible Person. A Responsible Person shall receive appropriate training regarding the Issuer’s accounting system, contract intake system, facilities management and other systems necessary to track the investment and expenditure of the proceeds and the use of the Project financed or refinanced with the proceeds of the Obligations. The foregoing notwithstanding, each Responsible Person shall report to the governing body of the Issuer whenever experienced advisors and agents

DO IT IN HEWITT 47 may be necessary to carry out the purposes of these instructions for the purpose of seeking approval of the governing body to engage or utilize existing advisors and agents for such purposes.

CAPITAL BUDGET POLICIES ‐ OVERVIEW

The objective of the capital budget policies is to ensure that the City maintains its public infrastructure in the most efficient manner. The City will make timely investment in the expansion of capital assets to provide adequate levels of service in conformance with State and Federal regulations, and meeting the appropriate health, safety and environmental standards.

CAPITAL IMPROVEMENT PLAN

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 maintain service levels. As part of the annual budget process, the City shall prepare and adopt a three‐year Capital Improvement Program, which shall identify each capital project, the estimated costs, and funding source. When considering new projects, related costs such as operations and maintenance costs are evaluated along with capital expenditures to assess affordability prior to proposal of the projects. An adopted priority system shall be used to rank recommended projects.

CAPITAL BUDGET SUMMARIES

Capital Project summaries include the projects and funds necessary over the next three years as part of overall long‐term capital planning. Major sources of funding for capital projects are contributions from operating funds, debt issuance, and surpluses in fund balances/retained earnings. Project costs are capitalized and added to the City’s Fixed Assets. If a project does not meet the criteria for capitalization, the costs will be treated as operating expenses and expensed as incurred.

OPERATING BUDGET IMPACTS

Operating expenditures (expenses) shall be programmed to include the cost of implementing capital improvements and shall reflect estimates of all associated personal expenditures (expenses) and operating costs attributable to the capital outlays.

FINANCING

There are three basic methods of financing capital requirements:

Funds may be budgeted from current revenues;

DO IT IN HEWITT 48 Purchases may be financed thru surplus unreserved/undesignated fund balance/retained earnings balances, subject to policy;

Debt must be issued in accordance with policy. (Items financed with debt must have useful lives that are less than the maturity of the debt.)

ACCOUNTING POLICIES ‐ OVERVIEW

The objectives of the accounting policies is to ensure that all financial transactions of the City are carried out in accordance to the dictates of the City Charter, State Statutes, and the principles of sound financial management.

ACCOUNTING STANDARDS

The City shall establish and maintain accounting systems according to the generally accepted accounting principles and standards (GAAP) of the Governmental Finance Officers Association (GFOA) and the Governmental Accounting Standards Board (GASB). For greater detail, please see the Summary of Significant Accounting Policies that follow these Financial Management Policies.

INTERNAL CONTROL

The City is responsible for establishing and maintaining an internal control structure designed to provide reasonable, but not absolute, assurance that the assets of the City are protected from loss, theft, or misuse.

The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits require estimates and judgments by management.

ANNUAL AUDIT

An annual audit shall be performed by an independent accounting firm which will issue an official opinion on the annual financial statements with a management letter detailing areas that could be improved. The auditors must be a CPA firm that has the breadth and depth of staff to conduct the City’s audit in accordance with generally accepted auditing standards and contractual requirements.

EXTERNAL FINANCIAL REPORTING

The CAFR is the official annual report for the City and contains appropriate statements, schedules and other information for the major operations of the City and its component units. Also included is an official audit opinion, transmittal letter from management, and information that provides continuing

DO IT IN HEWITT 49 disclosure as required by SEC Rule 15c2‐12. The CAFR is presented to the City Council before March 31st. The CAFR is distributed to appropriate federal/state agencies, and other users, including but not limited to, students, other cities, bondholders, city staff, financial institutions, required information depositories, and others.

INTERNAL FINANCIAL PLANNING

The Finance department distributes monthly reports that include schedules/statements that present interim results of operations. The Finance department prepares such other reports as are sufficient for management to plan, monitor, and control the City’s financial affairs.

GFOA CERTIFICATE OF ACHIEVEMENT AWARD

The City shall annually submit necessary documentation to obtain the certificate of Achievement for Excellence in Financial Reporting as awarded by the Governmental Finance Officers Association of the United States and Canada.

INVESTMENT POLICIES ‐ OVERVIEW

The objectives of the investment policies is to ensure that all revenues received by the City are promptly recorded and deposited in the designated depository, and if not immediately required for payments of obligations, are placed in authorized investments earning interest income for the City according to the adopted Investment Policy. All investments shall stress safety, liquidity, and yield, in that order. The City’s formal Investment Policy, as adopted November 6th, 1995 City Council, and approved annually, governs the City’s investments. The current Investment Policy is included as Appendix A.

DO IT IN HEWITT 50 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The City of Hewitt, Texas, (the City), is a home‐rule municipal corporation organized and existing under the provisions of the Constitution of the State of Texas. The City operates under a city manager form of government and provides the following services as authorized by its charter: public safety (police and fire), highways and streets sanitation, health and social services, culture recreation, public improvements, planning and zoning, and general administrative service. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies:

Financial Reporting Entity For financial reporting purposes, the City includes all funds, account groups and agencies that are controlled by or dependent on the City's executive or legislative branches. Control by or dependence on the City was determined on the basis of budget adoption, taxing authority, outstanding debt secured by revenue or general obligations of the City, obligation of the City to finance any deficits that may occur or receipt of significant subsidies from the City.

Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self‐ balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial statements in this report, into three generic fund types and two broad fund categories as follows:

Governmental Fund Types General Fund ‐ The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Debt Service Fund ‐ The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long‐term debt principal, interest, and related costs.

Proprietary Fund Type Enterprise Fund ‐ The Water and Sewer Fund is used to account for operations (a) that are financed and operated in a manner similar to private enterprises, where the intent of the governing body is that the costs (expense, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred, and net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.

Account Groups General Fixed Assets Account Group ‐ This account group is used to account for all fixed assets of the City, other than those accounted for in the proprietary fund.

General Long‐Term Debt Account Group ‐ This account group is used to account for all long‐term obligations of the City except those accounted for in the proprietary fund.

DO IT IN HEWITT 51

Basis of Budgeting For budget purposes, all funds are accounted for using the cash basis of accounting. Budgeted revenue is expected to be received in the current budget year; budgeted expenses are expected to be incurred and paid in the current budget year.

A budget is a financial plan for a specified period of time (fiscal year) that includes estimates of proposed expenditures and the means for financing them. Using the cash basis, management has the information necessary to easily analyze the status of any fund or any account or any department by account. For third party financial presentations see Basis of Accounting for Financial Presentations.

Basis of Accounting for Financial Presentations For audited financial statements, all governmental funds are accounted for using the modified accrual basis of accounting. The revenue is recognized when it becomes measurable and available to pay liabilities of the current period. Gross receipts and sales taxes are considered measurable when in the hands of an intermediary collecting government and are recognized as revenue at that time. Anticipated refunds of such taxes are recorded as liabilities and reductions of revenue when they are measurable and their validity seems certain. Expenditures, other than interest on long‐term debt are recorded when the liability is incurred.

For audited financial statements, all proprietary funds are accounted for using the accrual basis of accounting. Their revenue is recognized when it is earned, and their expenses are recognized when they are incurred.

Cash and Cash Equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents are defined as unrestricted cash which includes cash on hand, demand deposits, money market accounts and TexPool investments.

General Fixed Assets General fixed assets are recorded as expenditures in the governmental funds and capitalized at cost in the General Fixed Assets Account Group. Contributed fixed assets are recorded at their estimated fair market value, at the time received. Certain improvements such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems are capitalized under GASB 34 beginning with the budget year 02/03. Depreciation will be expensed on general fixed assets.

Property, Plant and Equipment ‐ Proprietary Funds Property, plant and equipment used by proprietary funds is stated at cost or estimated historical cost. Contributed fixed assets are recorded at estimated fair market value at the time received. Depreciation is provided using the straight‐line method over estimated useful lives of the assets.

Vacation and Sick Leave City employees are granted vacation and sick leave in varying amounts. In the event of termination, an employee is reimbursed for remaining accumulated vacation days. Additionally, an employee with more than 10 years of service is reimbursed for any unused sick leave, upon retirement, not to exceed 480 hrs.

Deferred Charges In governmental fund types, bond issuance costs are recognized in the current period. Bond issuance costs for proprietary fund types are deferred and amortized over the term of the bonds using the bonds‐outstanding method, which approximates the effective interest method.

DO IT IN HEWITT 52 Performance Management

Overview

Performance measures report the work performed and the results achieved. Performance measures are designed to provide feedback about the effectiveness and success of the city to: 1. Report the performance of publicly funded activities, 2. Encourage continuous improvement, 3. Increase accountability, 4. Identify areas of weakness that require action, 5. Strengthen oversight and improve decision making, and 6. Provide a context for budget discussions.

Hewitt’s Performance Management Program responds to these needs:

• City council interest and expectations • Increased public interest in greater accountability • Greater efficiency, effectiveness and economy

Performance measurements provide information and data on the city’s accomplishments and workload/demand measures, as well as outputs, and a meaningful way to assess the effectiveness and efficiency of those measures at the same time relating these measures/outputs to the city’s mission, goals and objectives of each department. In developing and using these directives in strategic planning and decision making, the Government Finance Officer’s Association’s (GFOA’s) 2007 Recommended Practices for Performance Management are our guide. (Please see following pages for more detail on GFOA’s Recommended Practice on “Performance Management: Using Performance Measurement for Decision Making.”)

Generally, government entities collect volumes of data on a wide variety of services and activities. This data is available from existing sources such as financial reports, audits, department reports and studies. However, data to measure efficiency and effectiveness are less available than information on workload and expenditures. The City is just beginning to identify these performance measurements. You will find, within departmental budgets, some of these measures, for example, effectiveness in the form of % data and efficiency in the form of time spent. These measures will continue to be refined and expanded as city staff learns more about performance measurement, i.e. what data is important to the reader with consideration of who that reader may be – from interested citizen, to potential investor. It is the goal of management to continue to provide the best service possible to the readers of the City Budget.

DO IT IN HEWITT 53 Performance Management: Using Performance Measurement for Decision Making (2002 and 2007) (BUDGET)

Background. A key responsibility of state and local governments is to develop and manage programs, services, and their related resources as efficiently and effectively as possible and to communicate the results of these efforts to the stakeholders. Performance measurement when linked to the budget and strategic planning process can assess accomplishments on an organization-wide basis. When used in the long-term planning and goal setting process and linked to the entity's mission, goals, and objectives, meaningful performance measurements can assist government officials and citizens in identifying financial and program results, evaluating past resource decisions, and facilitating qualitative improvements in future decisions regarding resource allocation and service delivery.

Recommendation. The Government Finance Officers Association (GFOA) recommends that program and service performance measures be developed and used as an important component of long term strategic planning and decision making which should be linked to governmental budgeting. Performance measures should: • be based on program goals and objectives that tie to a statement of program mission or purpose; • measure program outcomes; • provide for resource allocation comparisons over time; • measure efficiency and effectiveness for continuous improvement; • be verifiable, understandable, and timely; • be consistent throughout the strategic plan, budget, accounting and reporting systems and to the extent practical, be consistent over time; • be reported internally and externally; • be monitored and used in managerial decision-making processes; • be limited to a number and degree of complexity that can provide an efficient and meaningful way to assess the effectiveness and efficiency of key programs; and • be designed in such a way to motivate staff at all levels to contribute toward organizational improvement.

GFOA encourages all governments to utilize performance measures as an integral part of the budget process. Over time, performance measures should be used to report on the outputs and outcomes of each program and should be related to the mission, goals and objectives of each department. Governments in the early stages of incorporating performance measures into their budget process should strive to: • develop a mission statement for government and its service delivery units by evaluating the needs of the community; • develop its service delivery units in terms of programs; • identify goals, short- and long-term, that contribute to the attainment of the mission; • identify program goals and objectives that are specific in timeframe and measurable to accomplish goals; • identify and track performance measures for a manageable number of services within programs; • identify program inputs in the budgeting process that address the amount of resources allocated to each program; • identify program outputs in the budgeting process that address the amount of service units produced; • identify program efficiencies in the budgeting process that address the cost of providing a unit of service; • identify program outcomes in the budgeting process that address the extent to which the goals of the program have been accomplished; • take steps to ensure that the entire organization is receptive to evaluation of performance; • integrate performance measurements into the budget that at a minimum contains by program the goals and input, output, efficiency and outcome measures; and

DO IT IN HEWITT 54 USER INFORMATION

DO IT IN HEWITT 55 HEWITT HISTORY IN CAPSULE

In 1893, John Allison Warren bought the township of Hewitt from John Blydenburgh for $4,911.64 and named it Hewitt, after a director of the M.K.T. Railroad. He named the first street Warren and the second street Johnson, his wife's maiden name, and the streets are still so named.

After the Civil War when the railroads came to Texas, the Missouri, Kansas, & Texas (the MKT or Katy) was the first to enter from the north. It ran southwest from Sedalia, Mo., across the Indian nation and into Texas via Denison in 1872. In 1882, a station was established six miles south of Waco. (Above: Hewitt in 1928)

The railroad brought prosperity to the town with loading docks for cotton and cattle. The town consisted of two general stores, a drugstore, a bank, a lumber yard, a blacksmith, two cotton gins, two churches, a public water works, a school and a post office.

Warren put in a lumberyard, and the story goes that he would give a lot to families if the lumber for the house built on it came from his yard. Early families buying Hewitt lots and acreage from John Allison Warren were: J. H. Reynolds; P. Phillips; M. R. Chapman; U. S. Warren; R. B. Cooksey; C. K. Warren; C. N. Smith; and B. F. Sneed (for a store). Other early families were: Isham H. Earle; Dan Chapman; C. L. Cousins; George W. Bolger; Ervin Warren; George Blanton; John F. Chapman; John W. Harrison, a former Senator from Mississippi; John Whaley; John Lewis; Jim Hardings; G. R. Trice; Tom Trice; Tom Lindsey; Ira Moore;J. Bradbury; Fred Wolf; Nick Johnson; J. 0. Rheas; John Attaway; Frank Attaway; M. A: Vaughan; Alton Broadway; Homer Attaway; John Bolger; Fred Hyman; C. 0. Loyd; Joe Bozarth; Ben Smiths; J. L. Byrds.

For almost a hundred years growth was slow, and then in the 1970's it exploded, and in one year it grew 7.22% and was the fastest growing community in the nation. From 60 citizens in 1890, and 569 in 1970, Hewitt grew to 9,500 in 1990, 11,085 in 2000, and 12,300 in 2004. It is still growing at four to six percent annually.

For the first ninety years this was a farming community. Underlaid by a strip of Austin chalk several miles wide, which outcrops in Eddy and runs through Lorena and Hewitt, it weathers into rich black soil, and becomes the Blackland Prairie. Cotton, cattle, and corn thrived. For many years, Homer and Cleon Warren (grandsons of John A. Warren), ran a topnotch dairy on their farm near Hewitt. Cotton was sent to Waco in wagons or shipped out on the "Katy.” By 1912 there were a bank, a cotton gin and two general stores. The bank was liquidated in 1916 and Hewitt did not have a bank again until 1980. Now there are two banks, two credit unions, a brokerage house and approximately 170 other businesses and professional people. In 1884 the U.S. Post Office was opened.

DO IT IN HEWITT 56 In 1890, a subscription or pay school was opened. A common school district was created in 1893, and all grades were in one building. New schools were built in 1902 and 1921. In 1947, Hewitt and South Bosque consolidated to form Midway Independent School District. Today Midway ISD consists of: the high school (eighteen hundred students) in Waco, the junior high school and two elementary schools in Hewitt; an elementary school in Speegleville and one in Woodway; and a middle school between Hewitt and Woodway.

(Above: Hewitt School House in 1908)

Today, Midway ISD is noted for traditional values, high academic achievement and a variety of extracurricular programs. Hewitt is within a short commute from multiple institutions of higher learning. Baylor University is nationally recognized for its academic divisions, which offer multiple undergraduate and graduate degrees. McLennan Community College is a junior college with a large curriculum. The Texas State Technical College System is headquartered in Waco and offers highly-specialized, two-year, technical degrees.

The first church was built by the Baptists in1895. The Methodists went to Stanford Chapel located several miles west until 1900, when they erected their own building. Between 1895 and 1900, there was a Union Sunday School which met in the Baptist church on Sunday afternoons and Methodist preachers spoke there on alternating Sundays.

Today there are eight churches, the later ones being: Catholic, Lutheran, two Churches of Christ and two more Baptists. (Above: Baptist Church in 1908)

Hewitt has the oldest continuous weather reporting station in Texas. It was officially begun in 1879 by Isham Harrison Earle and continued by his daughter, Hallie but the records date to 1870 unofficially. Dewitt Chapman took over in 1962. Homer Warren followed him and then Chester Baxley.

Hallie Earle M.D. was the first woman to practice medicine in Waco. She continued to live in Hewitt and drove to her office in Waco, having graduated from Baylor Medical School in Dallas and been licensed in 1907.

DO IT IN HEWITT 57

In 1899, D.L. Chapman began a city water system with one artesian well and a large storage tank next to the school. His son, E. R. Chapman, took over and ran the water company until selling it to Chester McLemore, who sold it to the city in 1985. Today the city has the responsibility for water and sewer service and there are several wells. The telephone company began as a community system; now it is Southwestern Bell.

The city was incorporated June 25, 1960 (73 voted for, 4 against). George C. Baxley was elected mayor and councilmen were: M. B. Weatherby, Homer C, Warren, W. A. Gruetzner, W. H. Hyman and W. E. Wollard.

A Wet/Dry Election was held on November 4, 1972. Results were as follows:

$ 56 For the Legal Sale of Beer $ 119 Against the Legal Sale of Beer

An Election was held in April 1982 to approve Charter and go Homerule. With a population well over 5,000, a total of 207 citizens voted: 181 For; 26 Against.

In April 1985, the city purchased the Hewitt Water Company from the Chester McLemore family. There were 2900 customers, compared to the current 5300.

In November 1991 a Bond Election was held: Proposition No. 1: additional ½ cent sales tax (576 for 390 against) Proposition No. 2: $2,000,000 General Obligation Bonds for streets (405 for 559 against) Proposition No. 3: $350,000 Certificates of Obligation for Aerial Platform Fire Truck (454 for 511 against)

The Hewitt Depot Restoration project was started in 1996 by previous Hewitt Chamber of Commerce Directors, Jeannie Woodard, De Smith, and Audie Adkins, to return the Hewitt depot from a location in the City of Woodway to a site near the original depot. Prior to the donation of the building to the City of Hewitt, the depot was badly damaged by fire, which along with age and neglect, destroyed some of the architectural features of the building, however, much of the exterior was able to be restored. This delayed the (Above: Before restoration) restoration and increased the costs. Nevertheless, the volunteers and the city continued with the construction.

DO IT IN HEWITT 58

(Below: After restoration) The project was completed during 2005, and includes a paved parking area and a deck as attached to the depot originally. A Dedication Ceremony held on August 30, 2005, was attended by donors, city council and city staff. The Depot is available for rentals to small non-profit public service clubs, groups or organizations. The city will continue to develop the site for additional railroad equipment and landscaping.

The Hewitt Community Center opened in November of 1997, and is located at 208 Chama Drive, next door to the police station. A beautiful building, it is a great place to host various events. It was designed and built for use by civic groups and organizations, as well as for wedding receptions, birthdays and holiday activities. It has one large room, four smaller rooms which can be converted into two rooms, a full kitchen, foyer and restroom facilities.

“Comprehensive Plan 2022" was developed by the City of Hewitt during 2002, and adopted in April, 2003. This plan can be defined as a long-range planning tool that is intended to be used by city staff, decision-makers and citizens to direct the growth and physical development of a community. This plan sets forth a general pattern of land use, transportation corridors, housing and public parks. Its primary purpose is to permit the City to consciously consider and shape its own future.

The Ritchie Road Water Tower and Well at 750 Ritchie Road went into operation in May 2002. The well was drilled to a depth of 1,970 feet. A 250 horse power submersible pump was installed at approximately 1,000 feet to pump the water to the surface and into the new 600,000 gallon overhead storage tank. The well is producing 500 gallons per minute or 720,000 gallons per day. This is enough water to supply 2,000 Hewitt households. Major Projects: The City of Hewitt continually works on major projects through the years in order to create a better community and is very proud

of the positive impact of these projects.

DO IT IN HEWITT 59 BEST PLACES TO LIVE Money's list of America's best small towns

2009

46. Hewitt, TX

WINNER Top 100 rank: 46 Population: 13,500

In many ways this town 15 minutes from Waco is just like the Texas of the movies: It's dry, and football and church are the most popular community events (there's little shopping in town). Although Hewitt no longer has any cattle ranches, the city is less than an hour from George Bush's spread in Crawford. Hewitt has experienced some growing pains as older families fight to keep it small and others encourage growth. The big pluses: low taxes, low cost of living, and low real estate prices ($300,000 is expensive here). --N.A.

Previously ranked 44th in Nation in 2007 -

Up until 1970, it would be hard to call Hewitt a town. With just under 600 residents, the area was made up mostly of cotton farms. But in recent years, people have been flocking there, taking advantage of low crime, good schools, and friendly people. With a current population hovering below 13,000, the town is working hard to attract businesses to gobble up the many large parcels of land available while striving to maintain that small-town feel. -B.N.

DO IT IN HEWITT 60 DO IT IN HEWITT 61 Hewitt , Texas 2014 Community Profile www.cityofhewitt.com

WAGE DATA TAXATION

Occupation Title Entry-Level Wage ($/hr) Tax Rate (per $100 Assessed Value) - 2014 Low High McLennan County $0.464258 Production Classifications Hewitt City $0.539677 Electrician 12.66 21.47 Midway ISD $1.320000 Forklift Operator 10.81 16.31 McLennan Community College $0.149530 Janitor, any industry 7.00 12.00 Total $2.009207 Laborer, General 7.00 12.00 Mechanic (Maintenance) 10.00 15.00 Municipal Sales Tax 1.500% Drywall Installer 10.00 15.00 State Sales Tax Rate 6.250% Equipment Operator 10.00 15.00 Economic 0.000% Floor Covering Installer 12.00 17.00 Development Tax HVAC Service Technician 12.00 17.00 Other Sales Taxes County Sales Tax 0.500% Ironworker 12.00 17.00 Total 8.250% Manufacturing 7.00 12.00 Painter 10.00 15.00 INCENTIVES Plasterer 14.00 19.00 Tax Abatement Yes Plumber 18.00 23.00 Enterprise Zone Yes Roofer 10.00 15.00 Industrial No Tile Setter 16.00 21.00 Foundation Teacher (Annual Salary) 28,000.00 45,500.00 Foreign Trade Zone No Teacher's Aide (Annual Salary) 11,500.00 22,500.00 Reinvestment Zone No Carpenter 10.59 16.09 Freeport Exemption No Other Incentives Yes Office, Clerical, and Technical Classifications Infrastructure Grants, Advertising Grants, and Permit Customer Service Rep. 9.27 14.07 Waivers Key Data Entry Oper. 9.04 13.62 Secretarial 9.48 14.95 General Office Clerk 8.67 15.15 Bookkeeper 11.08 20.24 Food Service 8.09 9.47 General Administrative Assistant 9.33 17.13 Insurance Account Manager 14.22 26.52 Nursing 8.48 12.52

Oncor Economic Development Department (214) 486-5012 (Fax) Last Modified www.ThinkBigThinkTexas.com | [email protected] 09/21/2014

Oncor Economic Development Department uses reasonable efforts to include accurate and up-to-date information in this profile; we make no warranties as to the accuracy of the material. We assume no liability or responsibility for any errors or omissions in the content of this profile.

DO IT IN HEWITT 62 Hewitt , Texas 2014 Community Profile www.cityofhewitt.com

UTILITIES

Electric Energy Delivery Oncor Electric Delivery Telephone Service Reliability 99.95469283 Waco Area Companies Transmission Voltage 69 KV, 138 KV, 345 KV Digital Available Yes Service Voltage 120/208, 120/240, 240/480, Analog Available Yes 277/480 Electromechanical No Make and Model Software Level Natural Gas Atmos Energy Fiber Optics Yes BTU Content Per Cubic Foot 1,020 Switched 56 Kbps Yes High Capacity Digital (T-1) Yes Digital Data Service Yes Water Supplier City of Hewitt 911 Available Yes Source Wells and City of Waco by contract Other Network Services Max. Daily Sys. Capacity 5,759,280 gallons AT&T, Grande Communications, Time-Warner Cable, and many others Max. Daily Use to Date 4,624,000 gallons Pressure on Mains 60-110 psi Storage Capacity 6,978,400 gallons Size of Mains 4-16" System Looped Yes Projects Under Construction

Sewer System Treatment Plan Types Waco Metropolitan Area Regional Sewerage System Maximum Capacity 1,870,000 gallons Max. Daily Use to Date 73,000 gallons Projects Under Construction

Oncor Economic Development Department (214) 486-5012 (Fax) Last Modified www.ThinkBigThinkTexas.com | [email protected] 09/21/2014

Oncor Economic Development Department uses reasonable efforts to include accurate and up-to-date information in this profile; we make no warranties as to the accuracy of the material. We assume no liability or responsibility for any errors or omissions in the content of this profile.

DO IT IN HEWITT 63 Hewitt , Texas 2014 Community Profile www.cityofhewitt.com

COMMUNITY INFORMATION

Climate Finance Annual Average Temperature 67.0 F Educators Credit Union, National Bank, Rocket Credit Annual Average High Temperature 96.0 F Union, West Bank and Trust Annual Average Low Temperature 35.0 F Annual Average Precipitation 31.0" Attractions Annual Average Snowfall 0.0" Armstrong Browning Library; Art Center, Waco; Brazos River Elevation 427.0' Festival, Waco; Brazos River Suspension Bridge; Waco; Cameron Park Zoo, Waco; Dr. Pepper Museum, Waco; Golf Tournament, Hewitt; Texas Ranger Hall of Fame, Waco; Texas Sports Hall of Fame, Waco; Waco Symphony, Waco; Health Waco Water Park, Waco Total Hospital Beds in City 0 Total Doctors (Medical) in City 4 EDUCATION

Midway (2011) Media Number of Schools Total Enrollment Daily Papers 1 Elementary Weekly Papers 4 6 2,886 Intermediate Local TV Yes 2 1,160 Middle School Cable TV Available Yes 1 1,044 High School 1 2,099

Recreation Parks 2 Private Schools Number of Schools Area Lakes 1 Enrollment Country Clubs 2 Health Centers 1 Public Golf Courses 7 Area Colleges and Universities Theaters 4 Baylor University, Waco; McLennan Community College, Tennis Courts 1 Waco; Texas State Technical College, Waco Bed & Breakfast Facilities 11 Hotel & Motel Rooms 67 Vocational Program Available Yes Libraries 1 State Industrial Job Training Available Yes Other Gyms; Many Hotel and Motel Facilities; Tennis Courts Located at Midway High School; Live Theaters

Houses of Worship Assembly of God, Baptist, Catholic, Church of Christ, Lutheran, Methodist, Unitarian, Islam

Oncor Economic Development Department (214) 486-5012 (Fax) Last Modified www.ThinkBigThinkTexas.com | [email protected] 09/21/2014

Oncor Economic Development Department uses reasonable efforts to include accurate and up-to-date information in this profile; we make no warranties as to the accuracy of the material. We assume no liability or responsibility for any errors or omissions in the content of this profile.

DO IT IN HEWITT 64 Hewitt , Texas 2014 Community Profile www.cityofhewitt.com

MAJOR AREA EMPLOYERS

Employer Industry Number of Union Affiliation Employees Midway ISD Education 389 EMSI Health Information Services 260 Davis Iron Works Steel Fabrication 145 Sturdistill Bleacher Fabrication 100 City of Hewitt Government 80 FedEx Shipping & logistic management 76 Midway Transportation Trucking 50 Technology for Education Desktop & Software Program 50 United Super IGA Grocery 40 Merry Maids Maid Service 25 Alliance Distributing Equipment Distribution 20 Scott & White Clinic Healthcare 20 McLennan County Tile Tile, Interior Stone & Terrazzo Contractors 20 Industrial Rigging Svc Other Building Equipment 20 Woody Butler Homes Commercial & Institutional Building 20 Contractor Central Texas Dental Care Dentist Clinic 20 Genie Car Wash Ctr Inc Automotive Washing & Polishing Svcs 20 Home Instead Senior Care Home Nursing Svcs 20 Hewitt Veterinary Hospital Animal Hospitals 20 Mr. Rooter Plumbing, Heating, & Air Conditioning 20 Contractor

Oncor Economic Development Department (214) 486-5012 (Fax) Last Modified www.ThinkBigThinkTexas.com | [email protected] 09/21/2014

Oncor Economic Development Department uses reasonable efforts to include accurate and up-to-date information in this profile; we make no warranties as to the accuracy of the material. We assume no liability or responsibility for any errors or omissions in the content of this profile.

DO IT IN HEWITT 65 City of Hewitt

CCOOMMPPRREEHHEENNSSIIVVEE PPLLAANN 22002222

DO IT IN HEWITT 66 Introduction

The foundation of the comprehensive planning process rests in basic information, such as the historical, statistical and factual information about the community. The Baseline Analysis consists of documentation of such information by presenting an overview of the City's history, as well as its social and economic characteristics. It also gives a general insight into the community's growth and development patterns. All of these together are essential for a clear understanding of the physical and social composition of the City. The primary objective of this chapter is to document current physical and socioeconomic (demographic) conditions within Hewitt, and to identify various opportunities and constraints the community must consider in addressing and shaping its future form and character. The secondary objective of the Baseline Analysis is to ensure that the information being used in the planning process accurately portrays the community and its needs.

Man-Made Features

Man-made features like major thoroughfare routes, extra-territorial jurisdiction, railroads, and large surrounding communities can be major factors that impact urban development patterns within a city and its immediate area. The following is a brief discussion of several of these factors.

Major Thoroughfare Routes Hewitt has several major thoroughfares that are in, directly connected to, or are in close proximity to the City. Following are descriptions of each of these as they relate to Hewitt.

Interstate Highway 35 Interstate Highway 35 is the largest thoroughfare that runs through Hewitt, and is the most significant thoroughfare in the general area. Interstate Highway 35 provides for travel across Texas a north-south direction, from its northernmost point in Sherman, through Dallas, Austin and San Antonio to its southernmost point at the U.S./Mexico border in Laredo. In addition to connecting Hewitt to major cities throughout the state, Interstate Highway 35 connects Hewitt to a number of area communities, including Temple and Belton to the south and Waco to the north.

U.S. Highway 84 U.S. Highway 84 and U.S. Highway 77 (discussed below) do not actually enter into the Hewitt City limits, but are significant in terms of their regional impact on travel around the City. As previously mentioned, U.S. Highway 84 is located northwest of Hewitt, providing access to several area communities, including McGregor, Woodway, and Waco. This highway continues to the north and west through Abilene and Lubbock, and then continues until it reaches the border between Texas and New Mexico.

DO IT IN HEWITT 67

U.S. Highway 77 U.S. Highway 77 is located to the east of Hewitt and runs in a north-south direction, providing access to the south to area communities such as Robinson and Golinda. Although this highway does not continue any further north than Interstate Highway 35, it continues to the south as far as Brownsville, Texas (in Cameron County), where it intersects and ends at U.S. and Mexico border.

State Highway 6 State Highway 6 is located to the northeast of Hewitt, and runs generally north-south across Texas. To the north and west of Hewitt, this roadway runs through communities such as Clifton and Iredell (both in Bosque County) and then ends at its intersection with U.S. Highway 281 in Hico. To the south and east of Hewitt, this roadway runs through numerous well-known Texas communities, including Marlin, Hearne, Bryan/College Station, Navasota, and Hempstead. State Highway 6 shares a designation with U.S. Highway 190 prior to entering the Houston area. The close proximity of this major Texas highway to Hewitt provides another important regional connection for local residents.

Old Temple Road/ F.M. 3476 Another thoroughfare that greatly impacts Hewitt is F.M. 3476, which is commonly referred to as Old Temple Road. Beginning at Interstate Highway 35 in the southern portion of Hewitt, this is a significant local north-south roadway through the City. Old Temple Road not only provides a direct connection to State Highway 6 to the northeast of Hewitt, but it also provides direct access to Waco, which allows commuters to avoid Interstate Highway 35. It should be noted that the designation of Old Temple Road changes to Bagby Avenue just south of its intersection with State Highway 6.

Hewitt Drive/F.M. 1695 Hewitt Drive begins at Spring Valley Road near the intersection of Spring Valley Road and the Union Pacific Railroad line in the southwest part of the City. Hewitt Drive follows the railroad right-of-way north through the heart of the City and intersects with Sun Valley Boulevard. It then continues in a northwest direction past Panther Way and past Hewitt’s City limits where it intersects with U.S. Highway 84 and Bosque Boulevard. Hewitt Drive is an important local north-south thoroughfare for the western portion of the City.

Spring Valley Road/F.M. 2113 Spring Valley Road runs in a southwest-to-northeast direction through the City, entering Hewitt just west of the Union Pacific rail line and Hewitt Drive. This roadway intersects with Old Temple Road and ends at its intersection with Interstate Highway 35 in the northeastern portion of Hewitt. Spring Valley Road is a significant local thoroughfare, but is also significant regionally, providing access from Hewitt to communities west and south of the City such as Spring Valley and Moody.

DO IT IN HEWITT 68 Sun Valley Boulevard/F.M. 2063 Sun Valley Boulevard runs west-to-east from Hewitt Drive to Interstate Highway 35 in the northern portion of the City. This thoroughfare provides the quickest and most direct access from Interstate Highway 35 to the core area of Hewitt. Sun Valley is a local roadway, and does not provide any regional access.

Extra-Territorial Jurisdiction (ETJ) Extra-territorial jurisdiction can be defined as the land that an incorporated area may legally annex for the purpose of future development. The Texas State Legislature has established specific amounts of unincorporated land for ETJ designation for municipalities depending upon their size. However, the City of Hewitt due to its location does not have an ETJ; all the land that surrounds Hewitt has been previously claimed. The City of Robinson’s city limits abut Hewitt’s along Hewitt’s eastern edge. The City of Waco’s ETJ, which is large due to the fact that its population is over 100,000 people, surrounds the entire City of Hewitt, with the exception of where Robinson lies. All of this information leads to one conclusion – Hewitt will not be able to grow geographically in the future, unless jurisdictional agreements are made with either Waco or Robinson that are favorable to Hewitt in terms of granting some amount of additional jurisdiction. Regardless of this fact, however, the City of Hewitt has vacant land area that would allow for the accommodation of new residents.

Railroads Railroads have historically been a major catalyst for the growth of communities throughout Texas, generating concentrations of businesses and residential areas. Although local growth and related economies are generally becoming less reliant upon railroads as other modes of transporting goods have become increasingly utilized, railroads can still be considered as great resource for maintaining existing local industries and for attracting future industrial development to an area.

As previously mentioned, the Union Pacific Railroad line closely follows Hewitt Drive in a north- south direction through the center of the City, then the line separates from its alignment with Hewitt Drive near the intersection of Hewitt Drive and Sun Valley Boulevard. There is industrial land use along the rail line in the northern part of the City, as well as several other types of nonresidential uses. Another rail line exists between Hewitt’s northern City limits and south of U.S. Highway 84, although it is no longer utilized.

Demographic & Socio-Economic Characteristics

There are many elements that contribute to a growing, dynamic city such as regional influences, natural features, and thoroughfares. However, perhaps the most important element of a city is the people. It is the residents of Hewitt, the people that live and work in the City, that will most

DO IT IN HEWITT 69 influence the City’s future. This section is an analysis of the demographic and socio-economic characteristics of the citizens of Hewitt in 2003.

Population Changes – Hewitt, McLennan County, & Surrounding Communities

Much of Hewitt's growth can be attributed to its proximity and convenient access to Waco and to Interstate Highway 35. The trend in population change within the City of Hewitt since 1970 is reflected in Table 1-2. The City experienced a rapid increase in population between 1970 and 1980, with an increase in population of more than 4,600 people and over 800 percent. Growth between 1980 and 1990 was also strong, and although the percentage increase was less, the number of people increased by over 3,700 people. The 2000 U.S. Census counted over 11,000 people within Hewitt, which represented a population growth of over 2,100 people and over 20 percent.

Table 1-2 POPULATION CHANGE City of Hewitt, Texas

Year Population Population Change Percent Change

1970 569 ------1980 5,247 4,678 822.1% 1990 8,983 3,736 71.2% 2000 11,085 2,102 23.4% Sources: 1982-1983 Texas Almanac (years 1970-1980)

DO IT IN HEWITT 70 Growth in McLennan County has Table 1-3 also been relatively rapid, as Table POPULATION CHANGE 1-3 shows. The only decline McLennan County, Texas experienced by the County since 1950 occurred between 1960 and Year Population Population Change Percent Change 1970. Other than this, growth has 1950 130,194 ------been over 10 percent. The highest 1960 150,091 19,897 15.3% percentage of growth occurred 1970 147,553 -2,538 -1.7% between 1970 and 1980, and 1980 170,755 23,202 15.7% highest numerical growth occurred 1990 189,123 18,368 10.8% in the last decade, according to the 2000 213,517 24,394 12.9% 2000 U.S. Census. Source: U.S. Census

Table 1-4 contains information on population for numerous communities in the area, including Woodway, Robinson, and Waco. As the table shows, Hewitt was the fastest growing community in the area between 1970 and 2000 at an overall percentage increase of almost 2,000 percent. The City’s average compounded growth rate, which distributes the population growth over the entire time period to show the average percentage at which Hewitt grew, was 10.4 percent. Lorena was the second-fastest growing community in McLennan County at just over 250 percent, and at an average compounded rate of over four percent. The majority of the other area communities also experienced growth at lesser percentages.

Waco, the largest community in McLennan County, increased overall by just over 19 percent, but had an average annual compounded rate of less than one percent.

Table 1-5 contains information pertaining to Hewitt’s growth in relation to McLennan County’s growth. In 1970, the population of Hewitt contributed less than one-half of one percent to the

Table 1-4 POPULATION CHANGE, 1970-2000 City of Hewitt, Texas & Surrounding Cities

Percent Annual Average City 1970 1980 1990 2000 Change Compounded Growth Rate Hewitt 569 5,247 8,983 11,085 1,848.2% 10.40% Marlin 6,651 7,099 6,386 6,629 -0.3% -0.01% Bellmead 7,698 7,569 8,336 9,214 19.7% 0.60% McGregor 4,365 4,513 4,683 4,727 8.3% 0.27% Woodway 4,819 7,091 8,695 8,733 81.2% 2.00% Robinson 3,807 6,074 7,111 7,845 106.1% 2.44% Lorena 406 619 1,158 1,433 253.0% 4.29% West 2,406 2,485 2,515 2,692 11.9% 0.38% Beverly Hills 2,289 2,083 2,048 2,113 -7.7% -0.27% Waco 95,326 101,261 103,590 113,726 19.3% 0.59% Source: U.S. Census

DO IT IN HEWITT 71 Table 1-5 REGIONAL GROWTH COMPARISON overall population of the County. This has City of Hewitt as Part of McLennan County changes over the past decades, however, with McLennan Hewitt’s population becoming increasingly City of Percentage of County significant. Using 2000 Census data, it is YEAR Hewitt the City in the Population apparent that Hewitt now accounts for over five Population County Change percent of McLennan County’s population. 1970 569 147,553 0.39% 1980 5,247 170,755 3.07% 1990 8,983 189,123 4.75% Race & Ethnicity 2000 11,085 213,517 5.19% Source: U.S. Census Society in general is becoming increasingly diverse. The City of Hewitt has followed this trend between 1990 and 2000 according to the U.S. Census, as Table 1-6 shows. While the White population group decreased in percentage in the last decade, even though the actual number increased, every other ethnic group increased in both percentage and number. The largest percentage and numerical increase occurred within the Hispanic Origin group, at an increase of almost three percent and 448 people. The smallest increase occurred within the American Indian population group, with an additional 47 persons and a percentage increase of 0.4 percent.

Table 1-6 RACE AND ETHNIC DISTRIBUTION, 1980-1990 City of Hewitt, Texas

1990 2000 Race/Ethnicity Number Percent(1) Number Percent(1)

White 8,251 91.9% 9,320 84.1%

African-American 532 5.9% 853 7.6%

American Indian 0 0.0% 47 0.4%

Asian 63 0.7% 260 2.3%

Other Race 137 1.5% 453 4.1%

Hispanic Origin(2) 581 6.5% 1,029 9.3%

Total Population 8,983 11,085

(1) Percent based upon total population; due to the inclusion of Hispanic origin in any race percent, total will not equal 100.0%. (2) Hispanic origin can be of any race; referred to as "Spanish origin" in the 1980 Census data. Source: U.S. Census

DO IT IN HEWITT 72 Age Composition & Distribution

Age is an important consideration when assessing the state of a city, in that it influences many aspects of service provision and of quality of life. An increase in the number of young people may indicate the need for additional schools and additional recreational venues. An increase in the number of senior citizens may indicate the need for additional assisted living facilities and group transportation opportunities. The age composition and distribution for the City of Hewitt for 1990 and 2000 is shown in Table 1-7.

According to both the 1990 and 2000 Census, the largest age group in Hewitt was the Prime Labor Force, which includes persons between the ages of 25 and 44, although there was a decline in this age group between 1990 and 2000. The fact that the Prime Labor Force accounts for the largest percentage of the local population is a positive indication for the City in that this is the age group that is most attractive to potential businesses. The Young age group has also been representative of a large percentage of the population in both 1990 Table 1-7 and 2000, which is also AGE COMPOSITION & DISTRIBUTION positive for Hewitt. Cities City of Hewitt, Texas generally want to have a 1990 2000 AGE GROUP high number of young Number Percentage Number Percentage people because it is often Young (0-14 years) 2,370 26.38% 2,769 24.98% indicative of a quality local High School (15-19 years) 803 8.94% 820 7.40% school system, which in College, New Family (20-24) 454 5.05% 575 5.19% turn contributes to a high Prime Labor Force (25-44) 3,784 42.12% 3,654 32.96% quality of life. Older Labor Force (45-64) 1,196 13.31% 2,524 22.77% Elderly (65 and over) 376 4.19% 743 6.70% The largest increase of an Total 8,983 100.00% 11,085 100.00% age group in Hewitt Median Age 29.9 Years 33.4 Years between 1990 and 2000 Source: U.S. Census occurred within the Older Labor Force age group, which includes persons between the ages of 45 and 64; this indicates that the decrease in the Prime Labor Force between 1990 and 2000 was not due to out-migration, but due to the natural aging of the persons that were within that group in 1990. Another important difference related to age composition within Hewitt between 1990 and 2000 was the approximate four-year increase in Median Age; this, combined with the other observations of differences in age groups, is indicative of a slightly aging local population.

Educational Attainment

DO IT IN HEWITT 73 Table 1-8 contains data on educational attainment for both the City of Hewitt and the state of Texas for persons 25 years of age and over. In 1990 in Hewitt, the largest percentage of people had at least a high school education at approximately 27 percent; the smallest percentage of people had a level of between 9th and 12th grade at approximately 7.2 percent. According to the data collected for Hewitt in 2000, the local population was increasing its education level, with the largest percentage of people, 30.9 percent, having some college education. The smallest percentage of people was consistent with that of 1990, with 4.5 percent having an education level of between 9th and 12 grade with no diploma.

While there was an increase in the number of persons over the age of 25 in Hewitt between 1990 and 2000, there were decreases in several of the established attainment levels. The levels that decreased include: Less Than 9th Grade (-0.17%), 9th to 12th Grade (No Diploma) (-2.71%), High School Graduate (-6.1%), and Associate Degree (-2.42). These decreases are positive when the increases in higher education levels are taken into account. There were significant increases in the percentages of people in the Some College, No Degree level (+7.59%) and in the Graduate or Professional Degree level (+3.42%). There was also an increase in the percentage of people who had attained a Bachelor’s Degree, although it was marginal just 0.4 percent. These facts, decreasing lower education levels and increasing higher education levels, support the previously stated observation of an increasingly educated local population in Hewitt.

In comparison, percentages in the lower levels of education across the state of Texas (refer to Table 1-8) were higher than those of Hewitt, and percentages in the upper levels of education were lower than those of Hewitt. While Hewitt had only 1.2 percent of the population that had an education level of Less Than 9th Grade, the state had almost 11.7 percent, and while Hewitt had over 12 percent

Table 1-8 EDUCATIONAL ATTAINMENT – 1990 & 2000 City of Hewitt, Texas & the State of Texas

CITY OF HEWITT TEXAS

EDUCATION LEVEL 1990 2000 1990 2000 Number Percentage Number Percentage Number Percentage Number Percentage Less Than 9th Grade 78 1.46% 89 1.29% 1,387,528 13.46% 1,465,420 11.46% 9th to 12th Grade, 386 7.21% 311 4.50% 1,485,031 14.40% 1,649,141 12.89% No Diploma High School Graduate 1,447 27.02% 1,446 20.92% 2,640,162 25.61% 3,176,743 24.84% (Includes Equivalency) Some College, No Degree 1,249 23.32% 2,136 30.91% 2,171,439 21.06% 2,858,802 22.35% Associate Degree 622 11.61% 635 9.19% 531,540 5.16% 668,494 5.23% Bachelor's Degree 1,109 20.71% 1,458 21.10% 1,428,031 13.85% 1,996,250 15.61% Graduate or 465 8.68% 836 12.10% 666,874 6.47% 976,043 7.63% Professional Degree

Total 5,356 100.00% 6,911 100.00% 10,310,605 100.00% 12,790,893 100.00%

Source: U.S. Census NOTE: The numbers and percentages within this table are representative of the segment of the population that are 25 years of age and older.

DO IT IN HEWITT 74 that had attained the level of Graduate or Professional Degree, Texas had just 7.6 percent. From these observations, it can be concluded that the citizens of Hewitt are more highly educated than people in general in Texas.

Household Income Income levels are often indicative of other characteristics of a community, such as employment opportunities, housing costs, and education levels. 1990 and 2000 Census data pertaining to income is shown in Table 1-9 for Hewitt as well as for the state of Texas. The highest percentage of households in Hewitt in 1990 were within the $35,000 to $49,999 income category, while the lowest percentage were within the $100,000 to $149,999 income range; there were no households in 1990 with an income of $150,000 or more. Generally, the majority of local households had an income of between $25,000 and $74,999 in 1990, and the median income was $38,066 By the time the 2000 U.S. Census information was taken, income levels in Hewitt had risen, with the highest percentage of households in the $50,000 to $74,999 income range. The lowest percentage fell within the $150,000 or more category; however, it is the addition of 61 local households into this category that is significant. Also important is the increase of more than $20,000 in the median household income to $59,409. Compared to the state of Texas in 1990, Hewitt had higher percentages in the upper income brackets from $35,000 to $99,999. In the two income levels above that, the state had higher percentages than did Hewitt. In 2000, Hewitt had higher percentages in the upper income brackets from $35,000 and up than did the state, with the exception of the highest income level of $150,000

Table 1-9 HOUSEHOLD INCOME - 1990 & 2000 City of Hewitt, Texas & the State of Texas

CITY OF HEWITT TEXAS Income Level 1990 2000 1990 2000 Number Percentage Number Percentage Number Percentage Number Percentage Less than $10,000 150 4.87% 107 2.74% 1,078,268 17.58% 767,505 10.38% $10,000 to $14,999 75 2.44% 87 2.23% 597,169 9.73% 491,154 6.64% $15,000 to $24,999 390 12.66% 317 8.12% 1,140,449 18.59% 1,004,123 13.57% $25,000 to $34,999 704 22.86% 422 10.81% 958,018 15.62% 996,141 13.47% $35,000 to $49,999 865 28.08% 722 18.50% 1,006,300 16.40% 1,219,358 16.48% $50,000 to $74,999 731 23.73% 1,196 30.65% 811,086 13.22% 1,359,437 18.38% $75,000 to $99,999 147 4.77% 596 15.27% 262,522 4.28% 705,684 9.54% $100,000 to $149,999 18 0.58% 394 10.10% 140,354 2.29% 536,018 7.25% $150,000 or more 0 0.00% 61 1.56% 140,354 2.29% 317,874 4.30% Total Number 3,080 100.00% 3,902 100.00% 6,134,520 100.00% 7,397,294 100.00% of Households Median Income $38,066 $59,409 $27,016 $39,927 Source: U.S. Census

DO IT IN HEWITT 75 or more.

Employment

Employment opportunities are perhaps the most significant characteristic that will attract people to a community and will enable them to maintain their residence there. It is important to note that the discussion herein related to employment does not necessarily reflect local employment; this discussion reflects the occupations and employment patterns of the residents of Hewitt, whether they are employed within the City or in nearby communities. Tables 1-9 shows local employment characteristics for the City of Hewitt in both 1990 and 2000 by occupational category. In 1990, the largest percentage of people, specifically almost 37 percent, were employed in Technical Sales & Administrative Support. The category of Management, Professional, & Related Occupations was a close second, at almost 34 percent. The smallest percentage of people were employed in the Farming, Fishing, & Forestry occupational category in 1990.

In 2000, there were over 1,000 additional people living in the City of Hewitt that were employed, which represents a positive growth in the local labor pool. There was a relatively substantial increase in the number of people working within the Table 1-9 Management, Professional, & EMPLOYMENT BY OCCUPATIONAL CATEGORY Related Occupations category, City of Hewitt, Texas with an increase of 1990 2000 Occupation approximately nine percent. Number Percentage Number Percentage Conversely, there was a Management, Professional, similar percentage decrease 1,695 33.97% 2,589 42.99% & Related Occupations in those working within the Technical Sales & Technical Sales & 1,839 36.86% 1,677 27.85% Administrative Support Administrative Support Service 392 7.86% 669 11.11% category. The Service and Farming, Fishing, & Precision Production, Craft, & 35 0.70% 17 0.28% Forestry Repair fields experienced Precision Production, Craft, similar percentage changes, 529 10.60% 407 6.76% & Repair with the Service category Operators, Fabricators, & increasing by just over three 499 10.00% 663 11.01% Laborers percent and the Precision Production, Craft, & Repair Total 4,989 100.00% 6,022 100.00% category decreasing by almost four percent. The Source: U.S. Census employment distribution, however, remained consistent in that the largest percentage of the population was employed within the Management, Professional, & Related Occupations category, and the second-largest percentage was within the Technical Sales & Administrative Support category.

DO IT IN HEWITT 76 Table 1-10 EMPLOYMENT BY INDUSTRY - 2000 City of Hewitt, Texas

INDUSTRY 1990 2000 Reference in 1990 Census Reference in 2000 Census Number Percentage Number Percentage Agriculture, Forestry, & Agriculture, Forestry, Fishing, 20 0.40% 42 0.70% Fisheries/Mining Hunting, & Mining Construction Construction 196 3.93% 164 2.72% Manufacturing, Non-Durable Manufacturing 989 19.82% 897 14.90% Goods/Manufacturing, Durable Goods Wholesale Trade Wholesale Trade 249 4.99% 142 2.36% Retail Trade Retail Trade 763 15.29% 675 11.21% Transportation Transportation, Warehousing, & Utilities 225 4.51% 281 4.67% Communications & Other Public Information 136 2.73% 164 2.72% Utilities Finance, Insurance, Real Estate, Finance, Insurance, & Real Estate 397 7.96% 500 8.30% and Rental & Leasing Professional, Scientific, Management, Business & Repair Services Administrative, & Waste Management 176 3.53% 336 5.58% Services Health Services/Educational Services Educational, Health & Social Services 1,055 21.15% 1,767 29.34% Personal Services/Entertainment & Arts, Entertainment, Recreation, 146 2.93% 393 6.53% Recreation Services Accommodation & Food Services Other Professional & Related Services Other Services 399 8.00% 376 6.24% Public Administration Public Administration 238 4.77% 285 4.73%

Total 4,989 100.00% 6,022 100.00%

Source: U.S. Census

Table 1-10 contains data pertaining to employment for 1990 and 2000 for Hewitt, but the data is divided by industry instead of occupational category. It should be noted that the U.S. Census altered the reference categories between 1990 and 2000, and both names have been shown. The “/” symbol denotes categories that were separate in the 1990 U.S. Census and that were combined in the 2000 U.S. Census.

The largest percentage of the population in 1990 was employed within the Health Services/Educational Services categories at just over 21 percent; this remained consistent in 2000, but the percentage increased to over 29 percent. The second-largest percentage in 1990 was employed by the Manufacturing industry at almost 20 percent. Manufacturing remained the second- largest employment industry in 2000, but the percentage decreased by approximately five percent. Other industries that employed a significant percentage of the population in 1990 included the Retail Trade industry, the Finance, Insurance, & Real Estate industry, and the Other Professional & Related Services field. This was similar in 2000, but another industry, the Arts, Entertainment, Recreation, Accommodation

DO IT IN HEWITT 77 & Food Services industry became more significant between 1990 and 2000, with an increase in employment of approximately 3.6 percent.

Existing Land Use Considerations

Developed Acreage Within Hewitt As Table 1-11 shows, more than half of the developed land within the City, approximately 58 percent, is consumed by Residential land uses. Of that 58 percent, almost 53 percent is attributable to single-family uses. In fact, of all the types of land use within Hewitt, Single-Family land use accounts for the highest amount of developed acreage at over 1,314 acres out of a total of approximately 2,492 developed acres. Rights-of-Way represent the second-largest category of land use at almost 23 percent of the developed acreage in Table 1-11 EXISTING LAND USE – 2002 Hewitt; Roadways City of Hewitt, Texas account for much of this amount. Both Percent of Percent of Number of Commercial uses and Land Use Category Acres Developed Total Acres Per 100 Public/Semi-Public uses Land(1) Land(2) People(3) account for a large Residential Use 1,452.5 58.27% 33.08% 13.10 amount of the Single-Family 1,314.3 52.73% 29.93% 11.86 developed acreage in Two-Family 91.2 3.66% 2.08% 0.82 the City as well, at 6.81 Multiple-Family 35.1 1.41% 0.80% 0.32 percent and 5.68 Manufactured Home 11.9 0.48% 0.27% 0.11 percent, respectively. Park & Open Space 54.0 2.17% 1.23% 0.49 There are relatively Public/Semi-Public 141.6 5.68% 3.22% 1.28 Churches 31.5 1.26% 0.72% 0.28 small amounts of land Schools 102.9 4.13% 2.34% 0.93 dedicated to Park & Other 7.2 0.29% 0.16% 0.06 Open Space use, Retail Office 17.4 0.70% 0.40% 0.16 use, and Industrial use. Retail 36.3 1.46% 0.83% 0.33 Commercial 169.7 6.81% 3.86% 1.53 Industrial 53.8 2.16% 1.23% 0.49 Rights-of-Way 567.4 22.76% 12.92% 5.12 Total Acreage Roadways 523.7 21.01% 11.93% 4.72 Within Hewitt Railroads 43.7 1.75% 1.00% 0.39 TOTAL DEVELOPED 2,492.7 100.0% 56.76% 22.49 Almost 57 percent of the total acreage within Vacant/Undeveloped 1,898.8 ------43.24% 17.13 Hewitt’s corporate TOTAL WITHIN limits is developed, and 4,391.5 ------100.00% 39.62 THE CITY LIMITS approximately 43 percent, or almost 2,000 (1) Approximately 2,492.7 acres. (2) Approximately 4,391.5 acres. of the 4,391 acres (3) Based on the 2000 U.S. Census population of 11,085 people. Source: Dunkin, Sefko & Associates, Inc.

DO IT IN HEWITT 78 within the City, is currently vacant, as Table 1-11 shows. This vacant land will become increasingly important in the future as development occurs, especially because there is no additional land available for annexation into the City. It is the existing Vacant/Undeveloped land, therefore, that will enable Hewitt to accommodate increases in population.

The importance of the calculation of undeveloped land also lies in the fact that it is this land wherein decisions will have to been made regarding service provision and roadway construction, because it is the availability of such services and access that will make these areas attractive for development. It is important to note also that most communities do not develop such that 100 percent of the land is utilized; generally, approximately 10 percent remains vacant. If this applies to Hewitt in the future, Hewitt’s 43 percent of Vacant/Undeveloped land actually leaves approximately 33 percent, or 1,450 acres for new development.

Current Land Use Densities Another method of analyzing land use is by examining current land use densities – that is, establishing how much land is being consumed for each type of land use by the current population. As Table 1-11 shows, this information is provided within the column labeled Number of Acres Per 100 People. The 2000 U.S. Census population number for Hewitt of 11,085 people was used to calculate this information.

The density of Single-Family residential land use is 13.1 acres per 100 persons, or 0.131 acre for each person in the City. This indicates a relatively dense development pattern, which is a characteristic that is found within many older cities in Texas. Suburban communities tend to develop such that their residential density is lower, while historic cities like Hewitt have higher residential density. The small lots that were developed in the heart of Hewitt during the early days of the City’s settlement, especially the areas in immediate proximity to the intersection of Hewitt Drive, the railroad, and Sun Valley Boulevard likely contribute in large part to the density of the City. This relatively dense pattern is also reflective of the fact that Hewitt has very few large residential lots.

Also important is the ratio of retail uses to the population. A high ratio, between 0.6 and 0.7 acres per 100 persons, is representative of a community that is capturing the retail demand generated by the local population, as well as that of other nearby communities or the county. A ratio of around 0.5 acres per 100 persons is considered average, meaning that a community is capturing most of the retail demand generated by the local population. A low ratio, between 0.3 and 0.4 acres per 100 persons, results when the local population is traveling elsewhere to patronize retail establishments. Hewitt has a low ratio of retail uses to population, with 0.33 acres per 100 persons; this may be due to the fact that the local population is traveling to nearby cities such as Waco or Temple to meet their retail needs.

General Characteristics of Hewitt’s Existing Land Use Pattern Hewitt’s Future Land Use Plan should take into account existing land use characteristics. Following are the most notable characteristics of the City’s existing land use pattern:

DO IT IN HEWITT 79 • Single-Family land use is the predominate land use within the City. There are few large-lot subdivisions within Hewitt. • Types of residential land use other than Sign-Family, including Two-Family, Multi-Family, and Manufactured Home, account for only a small amount of the land in Hewitt. • Major features of Hewitt’s existing land use pattern include: Hewitt Drive, Old Temple Road, Sun Valley Boulevard, Spring Valley Road, Downtown Hewitt (the original core area), Hewitt Park, Warren Park, and the Union Pacific Railroad. • Development is most intense along the following roadways: Interstate Highway 35, Hewitt Drive, and Sun Valley Boulevard. • The center of the City between Old Temple Road and Hewitt Drive, south of Sun Valley Boulevard, is almost exclusively Single-Family residential. • There are large pockets of Vacant/Undeveloped land; this makes development of existing undeveloped land likely. • The City has a small amount of land used for Retail purposes; the amount likely does not meet the needs of Hewitt’s local population. • Almost 57 percent of Hewitt is developed, with almost 13 percent allocated to Rights-of- Way. 43 percent of the land within the City limits is Vacant/Undeveloped; this is the percentage of remaining land that could be developed into more urbanized uses in the future, although cities generally do not completely develop to 100 percent.

Existing Housing Characteristics

Quality of housing and the appreciation of housing values are very important planning considerations. Among the factors influencing the desirability of Hewitt as a place to live, and affecting the potential for future development of various portions of the City and surrounding area, is the condition of existing housing and the quality of the residential neighborhoods they form. The community has an interest in the ability to attract new industry/businesses and new residents, as well as provide adequate habitation for its residents.

The quality of housing in Hewitt is an important consideration in the evaluation of the adequacy of the existing housing stock, and in estimating future housing requirements. Condition and age are two of the physical characteristics of the housing supply, which reflect the present quality of housing. Tenure, length of residence, persons per household, and affordability are other features that indicate the general status of the housing supply, and are also factors to be considered in the evaluation and analysis of the City’s housing requirements. The condition of housing within an area also influences the attractiveness of investment in new or remodeled dwelling units. Normally,

DO IT IN HEWITT 80 residents of a neighborhood area that consists of well maintained, sound housing units with school facilities located a reasonable distance, convenient parks and open space, adequate streets, good sanitation and drainage, and other features that make up a sound neighborhood, will reflect minimum health, economic and social problems. In contrast, a blighted or partially blighted area, where many of the above-listed elements are either nonexistent or poorly provided, will likely present a greater number of problems to the community and the residents.

Analysis of residential neighborhood area assists in defining any existing problems or deficiencies that are related to the physical features found within the surrounding environment. It further provides a basis for determining proper directive measures required for bringing specific areas into acceptable community standards. For sound neighborhood areas it is appropriate to establish the goals or standards that will emphasize continuation of existing characteristics contributing to the present desirable physical condition. The following sections outline the various characteristics of Hewitt’s housing supply.

The Local Housing Supply Table 1-12 DENSITY & NUMBER OF HOUSING UNITS As can be expected, the increase in housing units City of Hewitt, Texas between 1970 and 2000, shown in Table 1-12, has followed a trend similar to that established by the Persons Number Housing increasing City population during the same period. Large Per of Year Unit Housing Housing increases were experienced between 1970 and 1980, as Change Unit Units well as between 1980 and 1990; the number of new units, however, decreas-ed in comparison between 1990 and 1970 2.89 197 ------2000. 1980 2.89 1,815 1,618 1990 2.96 3,207 1,392 2000 2.82 4,018 811 Table 1-13 shows the number of units divided into Source: U.S. Census various housing types according to the U.S. Census. Consistent with the fact that the largest percentage of land within Hewitt is used for single-family residential purposes, the largest number and percentage of the various housing types is 1-unit, Detached at 72.56 percent in 1990 and 75.28 percent in 2000.

DO IT IN HEWITT 81 Although there is a small amount of two-family or multiple-family land use, the actual number of units for each of these is significant in relation to the number of overall units in Hewitt. Referring to the 1-Unit, Attached and the 2 Units categories within Table 1-13, approximately 11 percent of the local dwelling units are two-family. In terms of the number of multiple-family units, the addition of all categories from 3 or 4 Units to 20 or More Units within Table 1-13 results in a total of 15.13 percent multiple-family units in Hewitt. The current mix of single-family, two-family, and multiple- family dwelling units is a positive characteristic for the City.

Table 1-13 HOUSING TYPE - 1990 & 2000 City of Hewitt, Texas

1990 2000 Land Use Correlation Housing Type Number Percentage Number Percentage Single-Family 1-Unit, Detached 2,314 72.56% 3,009 75.28% 1-Unit, Attached 165 5.17% 234 5.85% Two-Family 2 Units 184 5.77% 254 6.35% 3 or 4 Units 151 4.74% 132 3.30% 5 to 9 Units 161 5.05% 114 2.85% Multi-Family 10 to 19 Units 107 3.36% 49 1.23% 20 or More Units 63 1.98% 149 3.73% Manufactured Home Mobile Home(1) 44 1.38% 56 1.40% Total 3,189 100.00% 3,997 100.00% (1) Includes “Other” category within the 1990 Census

DO IT IN HEWITT 82

BUDGET SUMMARY SECTION

Section 2 of 4:  Introductory  Budget Summary  Financial/Operational  Supplemental Information

DO IT IN HEWITT 83

DO IT IN HEWITT 84 Budget Summary Section

Explanation of the Budget Document

The budget document is presented in four sections, the Introductory Section, the Budget Summary Section, the Financial / Operational Section and the Supplemental Section.

This is the Budget Summary Section. The Budget Summary section has three sub-sections:

► All Funds Summary - This contains exhibits and charts which summarize the entire City budget, including revenues and expenditures for the Operating (governmental & enterprise), Special Revenue and Capital Projects funds. A fund structure chart precedes the All Funds Summary sub-section. The fund structure chart is followed by three schedules presenting information on All Funds within the City, i.e. the Operating Funds (General Fund the Water & Wastewater Fund), the Special Revenue Funds and the Capital Projects Funds.

► Operating Funds Summary - This sub-section presents the heart of the budget, which is the Operating Funds, i.e. the General Fund and the Water & Wastewater Fund. The Operating Funds sub-section begins with an Overview. Within the Operating Funds sub- section are three schedules presenting informative detail of the operating funds budgets. Further detail is given in the Financial/Operational Section of this Budget document.

► Special Revenue Funds Summary - This sub-section presents the accumulation and disbursement of legally restricted resources to expenditures for a specific purpose. It includes the Drainage Fund for which drainage expenses are paid for with drainage fees. And it includes the Hotel Fund. Hotel fee revenue covers expenses used to promote ‘heads in beds’, i.e. activities that encourage people to stay overnight in one of our two beautiful hotels.

► Capital Projects Funds Summary - This the last sub-section within the Budget Summary and All Funds section. The City uses Capital Projects Funds to account for resources to be used for the acquisition and construction of major infrastructure assets, usually projects that may extend over more than one fiscal year. This sub-section includes a narrative, the Capital Projects Summary, the three Capital Projects Funds and a listing of capital outlay budgeted in the General Fund and in the Water & Wastewater Fund.

DO IT IN HEWITT 85 CITY OF HEWITT FUND STRUCTURE

Operating Funds: the General Fund and the Water & Wastewater Fund.

Governmental Fund: The major fund in most governmental entities. While other funds tend to be restricted to a single purpose, the General Fund is a catch all for general governmental purposes. The General Fund contains the activities commonly associated with municipal government, such as police and fire protection, libraries, parks and recreation.

Enterprise Fund: Also known as a Proprietary Fund. A governmental accounting fund in which the services provided, such as Water & Wastewater service, are financed and operated similarly to those in a private business. The intent is that the costs of providing these services be recovered through user charges (i.e. water/wastewater billing).

A Major Fund is defined as "Any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10 percent of the revenues or expenditures of the appropriated budget." Under this definition, the City would have only two major funds, the General Fund and the Water & Wastewater Fund.

Debt Service Fund: A fund established to account for revenues used to repay interest and principal for a specified period of time on outstanding debt.

Capital Projects Fund: The City uses three separate capital projects funds to account for resources to be used for the acquisition and construction of major infrastructure assets, usually projects that extend over more than one fiscal year. There is a Street Capital Projects Fund for street improvements or construction of general fund type assets, such as libraries. The other two funds are related to Water & Wastewater projects, i.e. projects for infrastructure costs relating to water or sewerage service to the city.

Special Revenue Funds: For the City, this would be the Drainage Fund and the Hotel Fund.

Drainage Fund: A fund established as a "utility" fund for drainage improvements. Drainage fees are used to cover expenses related to maintaining and improving drainage infrastructure throughout the city. The cost of providing this service is to be recovered thru user charges.

Hotel Fund: A fund established to account for the revenue collected by the City from hotels within the city. Funds from this account are used to promote "heads in beds" sometimes called the "Texas Two-Step” where sponsored activities draw those from outside the city who will likely be staying in the city hotels for the activities.

DO IT IN HEWITT 86 Entity‐Wide Matrix of Funds and Departments within those Funds

Governmental Fund Proprietary Fund Special Revenue Funds Bond Funds

Appropriated Fund & a Major Fund Appropriated Fund & a Major Fund Appropriated Funds, NOT Major Funds Capital Project General Fund Water & Wastewater Fund Drainage Fund Hotel Fund Funds

includes administration, includes maintenance, stormwater patrol, detectives, repair, monitoring and Drainage drainage Police Department Maintenance No personnel No personnel dispatch, animal control & reporting of water and Department maintenance code enforcement wastewater services and repair

includes park and street Community Services Administration No personnel maintenance

includes personnel that take payments, open new Fire Department fire suppression Utility Billing accounts, refund deposits and bill for services

Library Services public library services includes city manager, assistant city manager, Administration city secretary and city council Community includes permitting, zoning, and economic Development development includes finance, accounting,investments, Finance Department risk, payroll, budgeting, audit Municipal Court court administration

human resources/civil HR/Civil Service service administration

Showing an entity's budgetary fund structure is essential for understanding the entity's financial configuration. An overview of the budgeted funds should be included in the budget document. See information above and the following Fund Structure Chart. This overview should include each major fund's name and either (1) an indication of whether the fund is a governmental, proprietary, or fiduciary fund OR (2) an indication of the fund type of each fund (e.g., general, special revenue, enterprise fund). Any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget should be considered a major fund for this purpose. The document should indicate which funds are appropriated. If all of the funds are appropriated, this fact should be stated in the document. The document should include a description of each major fund, including the general fund. The description can be part of the overview of the fund structure or can be presented in the individual sections.

DO IT IN HEWITT 87 ALL FUNDS SUMMARY

DO IT IN HEWITT 88 ALL FUNDS SUMMARY OF REVENUE AND EXPENDITURES FY 14/15

Estimated Estimated Estimated Balance Beginning Estimated Expenses/ Ending Required Additional Over (Under) Fund Balance Revenues Expenditures Balance Reserves Reserves Reserves OPERATING FUNDS General Fund$ 2,137,140 $ 7,516,936 $ (7,512,479) $ 2,141,597 $ (1,878,120) $ (200,000) $ 63,477 Water & Wastewater Fund 2,084,002 6,211,875 (6,209,500) 2,086,377 (1,552,375) ‐ 534,002 Total Operating Funds$ 4,221,142 $ 13,728,811 $ (13,721,979) $ 4,227,974 $ (3,430,495) $ (200,000) $ 597,479

SPECIAL REVENUE FUNDS Drainage Fund$ 131,496 $ 267,420 $ (248,454) $ 150,462 $ ‐ $ ‐ $ 150,462 Hotel Fund 25,480 125,100 (99,500) 51,080 ‐ ‐ 51,080 Total Special Revenue Funds$ 156,976 $ 392,520 $ (347,954) $ 201,542 $ ‐ $ ‐ $ 201,542

CAPITAL PROJECT FUNDS Series 2010‐Utility Fund Capital $ 1,140,211 $ 650 $ (1,140,000) $ 861 n/a $ ‐ $ 861 Series 2012‐General Fund Capital 175,458 540 (175,998) ‐ n/a ‐ ‐ Series 2012‐Utility Fund Capital 3,508,272 10,000 (3,518,272) ‐ n/a ‐ ‐ Series 2013‐GF Capital Projects 927,308 20,750 (944,858) 3,200 n/a ‐ 3,200 Series 2014‐City Hall/Library 6,833,423 24,000 (3,835,000) 3,022,423 n/a ‐ 3,022,423 Total Capital Project Funds$ 12,584,672 $ 55,940 $ (9,614,128) $ 3,026,484 $ ‐ $ ‐ $ 3,026,484

TOTAL CITY FUNDS $ 16,962,790 $ 14,177,271 $ (23,684,061) $ 7,456,000 $ (3,430,495) $ 3,825,505

Note: Required Reserves for the General Fund and the Utilities Fund are equal to 90 days of operating expenses in the respective funds. Note: Additional Reserves in the General Fund are for PEG Fees, $180,000 and Civil Service Accruals, $20,000. Note: Included in Unrestricted General Fund balances are Street Reserves of $213,712 and Equipment Reserves of $110,900. Included in Utilities fund balance are Equipment Reserves of $222,903.

DO IT IN HEWITT 89 ALL FUNDS SUMMARY OF SOURCES & USES FY 14/15

FY 14/15 BUDGET FY 13/14 ESTIMATE FY 12/13 ACTUAL Special Capital Special Capital Special Capital Operating Revenue Projects Operating Revenue Projects Operating Revenue Projects Funds Funds Funds* Total Funds Funds Funds Total Funds Funds Funds Total Beginning Fund Balance$ 4,221,142 156,976$ $ 12,584,672 $ 16,962,790 $ 4,124,581 150,213$ $ 11,470,172 $ 15,744,966 $ 3,605,028 325,906$ $ 11,898,592 $ 15,829,526 Revenues Ad Valorem Tax 3,767,776 3,767,776 3,591,241 3,591,241 3,267,980 3,267,980 Sales & Use Tax 1,778,900 1,778,900 1,545,897 1,545,897 1,377,427 1,377,427 Franchise Fees 1,134,500 1,134,500 1,135,389 1,135,389 1,080,154 1,080,154 Fines & Penalties 235,500 235,500 230,705 230,705 208,952 208,952 All Other Revenues 760,260 392,520 55,940 1,208,720 875,160 383,846 42,908 1,301,914 703,938 360,265 9,092 1,073,295 Charges for Services 6,051,875 6,051,875 5,648,272 5,648,272 5,775,618 5,775,618 Total Revenues$ 13,728,811 392,520$ $ 55,940 $ 14,177,271 $ 13,026,664 383,846$ $ 42,908 $ 13,453,418 $ 12,414,069 360,265$ $ 9,092 $ 12,783,426 Other Financing Sources Bond Proceeds ‐ ‐ ‐ ‐ ‐ 6,835,000 6,835,000 ‐ ‐ 3,850,000 3,850,000 Total Other Sources ‐ ‐ ‐ ‐ ‐ ‐ 6,835,000 6,835,000 ‐ ‐ 3,850,000 3,850,000 Total Resouces 13,728,811 392,520 55,940 14,177,271 13,026,664 383,846 6,877,908 20,288,418 12,414,069 360,265 3,859,092 16,633,426 Total Funds Available 17,949,953 549,496 12,640,612 31,140,061 17,151,245 534,059 18,348,080 36,033,384 16,019,097 686,171 15,757,684 32,462,952

Operating Expenses Salaries & Benefits 5,471,011 5,471,011 4,885,677 4,885,677 4,656,210 4,656,210 Supplies & Materials 396,269 396,269 365,013 365,013 304,810 304,810 Repairs & Maintenance 577,400 577,400 779,991 779,991 727,560 727,560 Services & Charges 3,592,392 3,310,759 2,766,382 Debt Service 3,068,212 3,068,212 2,860,624 2,860,624 2,731,748 2,731,748 Capital Outlays 76,695 347,954 9,614,128 10,038,777 188,039 377,083 5,763,408 6,328,530 207,806 465,958 4,287,512 4,961,276 Transfers 540,000 540,000 540,000 540,000 500,000 500,000 Total Expenditures 13,721,979 347,954 9,614,128 20,091,669 12,930,103 377,083 5,763,408 15,759,835 11,894,516 465,958 4,287,512 13,881,604 Net Income(Loss) 4,227,974 201,542 3,026,484 11,048,392 4,221,142 156,976 12,584,672 20,273,549 4,124,581 220,213 11,470,172 18,581,348 Other Financing Uses Tr to Capital Projects ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Other Uses ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Use of Resources 13,721,979 347,954 9,614,128 20,091,669 12,930,103 377,083 5,763,408 15,759,835 11,894,516 465,958 4,287,512 13,881,604 Total Fund Balance $ 4,227,974 201,542$ $ 3,026,484 $ 11,048,392 $ 4,221,142 156,976$ $ 12,584,672 $ 20,273,549 $ 4,124,581 220,213$ $ 11,470,172 $ 18,581,348 Required Reserves (3,630,495) ‐ ‐ (3,630,495) (3,257,256) ‐ ‐ (3,257,256) (3,037,559) ‐ ‐ (3,037,559) Ending Fund Balance $ 597,479 201,542$ $ 3,026,484 $ 7,417,897 $ 963,886 156,976$ $ 12,584,672 $ 17,016,293 $ 1,087,022 220,213$ $ 11,470,172 $ 15,543,789

DO IT IN HEWITT 90 ALL FUNDS SUMMARY OF REVENUE & EXPENDITURES FY 14/15

FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 REVENUES BUDGET ESTIMATED BUDGET ACTUAL BUDGET Governmental Type Funds: General Fund $6,249,207 $6,077,811 $5,811,459 $5,459,027 $5,522,164 General Debt Service Fund 1,267,729 1,092,764 1,087,752 1,003,768 962,636 Total Governmental Fund Revenues $7,516,936 $7,170,575 $6,899,211 $6,462,795 $6,484,800 Enterprise Type Funds: Water & Wastewater Fund $4,411,392 $4,088,229 $4,388,964 $4,223,293 $3,937,129 Water & Wastewater Debt Service 1,800,483 1,767,860 1,761,036 1,727,981 1,729,871 Total Enterprise Fund Revenues $6,211,875 $5,856,089 $6,150,000 $5,951,274 $5,667,000 Total Operating Funds Revenue $13,728,811 $13,026,664 $13,049,211 $12,414,069 $12,151,800 Special Revenue Funds: Drainage Fund$ 267,420 $ 264,209 $ 254,700 $ 256,592 $ 276,300 Hotel Fund 125,100 118,723 107,100 103,673 80,100 Total Special Revenue Funds$ 392,520 $ 382,932 $ 361,800 $ 360,265 $ 356,400 Capital Project Type Funds: Series 2010‐Utility Fund Capital Projects $650 $3,323 $4,000 $4,493 $5,000 Series 2012‐General Fund Capital Projects 540 5,739 20,901 9,145 18,000 Series 2012‐Utility Fund Capital Projects 10,000 14,156 20,901 21,685 30,000 Series 2013‐Public Safety Faciity Project 20,750 16,909 5,000 3,856,041 3,852,000 Series 2014‐City Hall/Library Project 24,000 6,837,781 6,835,000 0 0 Total Capital Projects Funds Type Revenue $55,940 $6,877,908 $6,885,802 $3,891,364 $3,905,000

Total Revenue before Other Sources $14,177,271 $20,287,504 $20,296,813 $16,665,698 $16,413,200

FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 EXPENDITURES BUDGET ESTIMATED BUDGET ACTUAL BUDGET Governmental Type Funds: General Fund $6,244,750 $5,967,341 5,808,287 $5,325,761 $5,521,123 General Debt Service Fund 1,267,729 1,092,764 1,087,752 1,003,768 962,636 Total Governmental Type Fund Expenditures $7,512,479 $7,060,105 $6,896,039 $6,329,529 $6,483,759 Enterprise Type Funds: Water & Wastewater Fund $4,409,017 $4,102,138 4,371,946 $3,837,006 $3,936,606 Water & Wastewater Debt Service 1,800,483 1,767,860 1,761,036 1,727,981 1,729,871 Total Enterprise Type Fund Expenses $6,209,500 $5,869,998 $6,132,982 $5,564,987 $5,666,477 Total Operating Fund Expenses $13,721,979 $12,930,103 $13,029,021 $11,894,516 $12,150,236 Special Revenue Funds: Drainage Fund $248,454 $289,293 $244,767 $369,358 $274,383 Hotel Fund 99,500 124,984 88,800 96,600 120,100 Total Special Revenue Funds$ 347,954 $ 414,277 $ 333,567 $ 465,958 $ 394,483 Capital Project Type Funds: Series 2010‐Utility Fund Capital Projects $1,140,000 $1,147,712 $2,258,617 $1,406,013 $3,664,630 Series 2012‐General Fund Capital Projects $175,998 $613,284 $728,446 $1,934,176 $2,575,531 Series 2012‐Utility Fund Capital Projects $3,518,272 $555,512 $4,121,842 $737,596 $4,795,000 Series 2013‐Public Safety Faciity Project 944,858 3,442,542 4,293,943 209,727 533,677 Series 2014‐City Hall/Library Project 3,835,000 4,358 6,835,000 3,139,241 2,417,459 Total Capital Projects Funds Type Expenses $9,614,128 $5,763,408 $18,237,848 $7,426,753 $13,986,297 Total General Expenditures, Enterprise Expenses & Capital Projects Expenses $23,684,061 $19,107,788 $31,600,436 $19,787,227 $26,531,016

NOTE: The measure of a city's income (loss) is not taken as Total General Revenues, Enterprise, Special & Capital Projects Revenue less Total General Expenditures, Enterprise, Special & Capital Project Expenses. The balance from Operating Revenue less Operating Expenses reflects the activity of the city. Special Revene & Capital Project funds are not operating funds and reflect the activity occurring in those project areas which are activity funded, bond funded or funded by council approved unrestricted reserves.

DO IT IN HEWITT 91

OPERATING FUNDS SUMMARY

DO IT IN HEWITT 92 OPERATING FUNDS OVERALL VIEW FY 14/15

The City's overall financial position is very sound. The reserves in all funds are fully funded and will continue to be monitored. This monitoring is accomplished through daily, monthly & continuous review of budget performance and of long‐range fund projections. As a result of the city’s financial condition no increase in the ad valorem tax rate was needed to fund the FY 2014‐2015 budget.

THE UTILITY FUND IS USED TO ACCOUNT FOR REVENUES AND OPERATING FUNDS ARE THE THERE ARE TWO EXPENSES RELATING TO THE THE GENERAL FUND IS USED TO 'WORKHORSE' FUNDS. THEY FUNDS THAT MAKE UP ENTERPRISE OF PROVIDING ACCOUNT FOR ALL REVENUES ARE NOT SET ASIDE FOR ANY 'OPERATING FUNDS' WATER AND WASTEWATER AND EXPENDITURES RELATING SPECIFIC PURPOSE, LIKE FOR THE CITY. THEY SERVICES TO ITS CUSTOMERS. TO THE GENERAL OPERATIONS DRAINAGE FUNDS OR HOTEL ARE: THE GENERAL THE INTENT IS THAT THE COSTS OF THE CITY NOT ACCOUNTED FEES OR CAPITAL PROJECT, i.e. FUND & THE UTILITY OF THESE SERVICES GET FOR IN OTHER FUNDS. BOND FUNDS. FUND. RECOVERED THROUGH USER CHARGES, I.E., CUSTOMER CHARGES.

OPERATING FUNDS: TOTAL REVENUES AND EXPENSES

Revenues and transfers‐in budgeted for operating funds for fiscal year 2014‐2015 are $13,728,811, compared to $13,049,211 for fiscal year 2013‐2014, an increase of $679,600 or 5%. Expenses and transfers‐out of operating funds for fiscal year 2014‐2015 are $13,721,979 compared to $13,029,021 for fiscal year 2013‐2014 an increase $692,958 or 5%.

Please see the schedules following this summary for more detail on the operating funds.

TAX RATE

Current Year Tax Information The FY 2014‐2015 budget is formulated on the current ad valorem tax rate of $.539677 per $100 of taxable valuation. This is the same rate as FY 2013‐2014. The City of Hewitt gives a 20% tax exemption to homeowners. This is the maximum allowed in Texas. The city also pledges one‐third of all sales tax collected toward lowering the ad valorem tax rate; in FY 14‐15 this equates to $498,568 the equivalent $.070645 tax rate.

The Appraised Tax Value In McLennan County, the tax appraisals are performed by the McLennan County Tax Appraisal District. The Certified taxable valuation for budget year 2014‐2015 is $706,087,100 as compared to prior year’s certified taxable valuation of $657,795,390, an increase of $48,291,710 or 7% growth from the prior year tax roll.

The Effective Rate The I&S Rate The M&O Rate The Rollback Rate

The Rollback Tax Rate for The I&S or ‘Interest The M&O or ‘Maintenance FY 14‐15 is $.580859. In and Sinking’ Rate is and Operations’ Rate is the Texas, the rollback rate is the rate necessary portion of the tax rate that The Effective, Debt and the tax rate that would to meet the city’s funds the operations of the Rollback Rates are allow for debt service plus general fund debt General Fund. The calculated by the McLennan maintenance & operations obligations. For FY maximimum M&O rate is County Tax Assessor. The with an 8% growth factor. 14‐15 this rate is calculated as the prior year’s Effective Tax Rate, adjusted If the city council sets the .179631. This rate M&O rate plus an additional for Sales Tax, is $.509967. tax rate higher than the includes the 2014 8%. This rate is .401228. The rollback rate, the tax rate is Certificates of adopted M&O Rate is subject to being ‘rolled Obligation. .360046. back’ or lowered by the citizens.

The FY 14‐15 Tax Rate

The tax rate is comprised of two components ‐ the I&S or debt service portion and the M&O or maintenance & operations portion. For FY 14‐15 , the city council could have approved a tax rate as high as $.580859 (the rollback rate), of which $.179631 is needed for I&S (debt service), leaving $.401228 for M&O) (maintenance & operations). The adopted tax rate is the same as the prior year, .539677.

DO IT IN HEWITT 93 GENERAL FUND

The General Fund is the chief operating fund of the City and is used to account for all financial resources except those required to be accounted for in another fund. The General Fund provides services such as public safety, parks and recreation, library services, streets maintenance, municipal court, community development and administration.

GENERAL FUND REVENUE The total projected revenues for the General Fund in FY 2014‐2015 are $7,516,936 as compared to prior year budget of $6,899,211 for FY 13‐14, an increase from the prior year budget of $617,725 or 9%. The changes in revenues from the prior year budget are detailed on the schedules following this summary and noted as follows:

General Fund Revenue Changes‐ Current Budget to Prior Year Budget Revenue Source Current Prior $ Change % Change Ad Valorem Taxes 3,767,776 3,488,191 279,585 8.0% Sales Taxes 1,778,900 1,450,520 328,380 22.6% Franchise Fees 1,134,500 1,110,500 24,000 2.2% Intergovernmental 270,000 270,000 ‐ 0.0% Public Safety 235,500 235,500 ‐ 0.0% Permit 100,000 100,000 ‐ 0.0% Pcard Rebate 45,000 68,138 (23,138) ‐34.0% SRO Reimbursement 112,760 106,000 6,760 6.4% Miscellaneous 72,500 70,362 2,138 3.0% Total Changes 7,516,936 6,899,211 617,725 9.0%

GENERAL FUND EXPENDITURES Total Projected Expenditures for FY 2014‐2015 are $7,512,479 as compared to prior year budget of $6,896,040 for FY 13‐14, an increase from the prior year budget of $616,440 or 8.9% The changes in expenditures from the prior year budget are detailed on the schedules following this summary and as follows:

Expenditure Changes from Prior Year ‐ Current Budget to Prior Year Budget Expenditure Source Current Prior $ Change % Change Police Department 2,401,765 2,299,020 102,745 4.5% Streets & Parks 585,921 591,710 (5,789) ‐1.0% Fire Department 1,028,352 984,573 43,779 4.4% Hewitt Public Library 471,133 361,247 109,886 30.4% GF Administration 678,024 618,734 59,290 9.6% Community Dev 378,113 406,552 (28,439) ‐7.0% Finance Department 326,811 246,960 79,851 32.3% Municipal Court 157,393 150,334 7,059 4.7% Human Resources 161,488 149,157 12,331 8.3% GF LT Debt Service 1,323,479 1,087,752 235,727 21.7% Total Changes 7,512,479 6,896,039 616,440 8.9%

Within the General Fund expenditures, we propose to continue funding 24/48 full‐time fire service, continue funding Civil Service affecting 21 uniformed police officers, continue funding of the McLennan County Health District at $1.50 per citizen and provide continued benefits to employees with no changes other than an approved across the board 3% base pay increase.

Expenditure Changes from Prior Year ‐ Current Budget to Prior Year Budget Type of Expenditure Current Prior $ Change % Change Personnel 4,743,831 4,550,478 193,353 4.2% Supplies 292,719 259,154 33,565 13.0% Maintenance 174,200 182,600 (8,400) ‐4.6% Services 901,150 703,795 197,355 28.0% Capital Outlay 77,100 112,260 (35,160) ‐31.3% LT Debt Service 1,323,479 1,087,752 235,727 21.7% Total Changes 7,512,479 6,896,039 616,440 8.9%

DO IT IN HEWITT 94 WATER AND WASTEWATER FUND

The Utility Fund is the second of the two Operating Funds. It is used to account for revenues and expenses relating to the Enterprise of providing these services to its customers. The intent is that the costs of these services get recovered through user charges.

UTILITY FUND REVENUE The total projected revenues for the Utility Fund in FY 2014‐2015 are $6,211,875 compared with $6,150,000 for FY 2013‐2014, an increase from the prior year budget of $61,875 or 1%. The changes in revenues from the prior year are detailed on the following schedule:

Utility Fund Revenue Changes‐ Current Budget to Prior Year Budget Revenue Source Current Prior $ Change % Change Water Revenue 4,237,625 4,175,000 62,625 1.5% Sewer Revenue 1,814,250 1,770,000 44,250 2.5% Water Tap/Meter 20,000 30,000 (10,000) ‐33.3% Interest 20,000 15,000 5,000 33.3% Penalties & Fees 90,000 100,000 (10,000) ‐10.0% Miscellaneous 30,000 60,000 (30,000) ‐50.0% Total Changes 6,211,875 6,150,000 61,875 1.0%

UTILITY FUND EXPENSES The total projected expenses for the Water and Wastewater Fund in FY 2014‐2015 are $6,209,500 as compared with estimated expenses of $6,132,982 for FY 13‐14, an increase from the prior year budget of $76,517 or 1% from the prior year.

The changes in expenditures from the prior year budget are detailed on the schedules following this summary and as follows:

Utility Fund Revenue Changes‐ Current Budget to Prior Year Budget Expense Source Current Prior $ Change % Change Maintenance 3,474,056 3,439,391 34,665 1.0% Administration 635,000 634,000 1,000 0.2% Utility Billing 299,961 298,555 1,406 0.5% LT Debt Service 1,800,483 1,761,036 39,447 2.2% Total Changes 6,209,500 6,132,982 76,518 1.2%

Water expenses include the contract with the City of Waco for the purchase of water during heavy demand periods. The City of Hewitt also contracts with the Waco Metropolitan Area Sewer System (WMARSS) for wastewater treatment. For additional information on these services, see the Water & Wastewater Fund, Revenue Assumption.

Utility Fund Revenue Changes‐ Current Budget to Prior Year Budget Type of Expense Current Prior $ Change % Change Personnel 727,180 704,159 23,021 3.3% Supplies 107,550 116,250 (8,700) ‐7.5% Maintenance 418,500 424,500 (6,000) ‐1.4% Services 2,613,192 2,534,538 78,654 3.1% Capital Outlay 2,595 52,500 (49,905) ‐95.1% Transfers 540,000 540,000 ‐ 0.0% LT Debt Service 1,800,483 1,761,036 39,447 2.2% Total Changes 6,209,500 6,132,983 76,517 1.2%

FUND BALANCES The City’s policy is to maintain a minimum of three months of current year operating expenditures as reserve fund balance for unexpected decreases in revenue or extraordinary expenses.

DO IT IN HEWITT 95 OPERATING FUNDS ‐ General Fund and Utility Fund Summary of Sources & Uses FY 14/15

FY 14‐15 BUDGET FY 13‐14 ESTIMATED FY 12‐13 ACTUAL Water & Debt Water & Debt Water &Debt General Wastewater Service General Wastewater Service General Wastewater Service Fund Fund Fund Totals Fund Fund Fund Totals Fund Fund Fund Totals Fund Balance 2,137,140 2,084,002 ‐ 4,221,142 2,026,670 2,097,911 ‐ 4,124,581 1,893,404 1,711,624 ‐ 3,605,028 Sources Ad Valorem Tax 2,500,047 1,267,729 3,767,776 2,498,477 1,092,764 3,591,241 2,264,212 1,003,768 3,267,980 Sales & Use Tax 1,778,900 1,778,900 1,545,897 1,545,897 1,377,427 1,377,427 Water Revenue 2,437,142 1,800,483 4,237,625 1,910,894 1,767,860 3,678,754 ‐ 2,329,359 1,727,981 4,057,340 Sewer Revenue 1,814,250 1,814,250 1,969,518 1,969,518 ‐ 1,718,278 1,718,278 Franchise Fees 1,134,500 1,134,500 1,135,389 1,135,389 1,080,154 1,080,154 Fines & Penalties 235,500 235,500 230,705 230,705 208,952 208,952 Intergovtl Revenue 270,000 270,000 270,000 270,000 240,000 240,000 Licenses & Permits 100,000 100,000 71,419 71,419 100,132 100,132 Tap Fees 20,000 20,000 11,850 11,850 13,700 13,700 Interest 20,000 20,000 40,000 73,847 17,054 90,901 15,902 20,241 36,143 Misc Revenue 210,260 120,000 330,260 252,077 178,913 430,990 172,248 141,715 313,963 Total Sources 6,249,207 4,411,392 3,068,212 13,728,811 6,077,811 4,088,229 2,860,624 13,026,664 5,459,027 4,223,293 2,731,749 12,414,069 Total Available Funds 8,386,347 6,495,394 3,068,212 17,949,953 8,104,481 6,186,140 2,860,624 17,151,245 7,352,431 5,934,917 2,731,749 16,019,097 Uses Maint. & Operations 6,170,650 3,866,422 ‐ 10,037,072 5,767,922 3,573,518 9,341,440 5,150,058 3,304,903 ‐ 8,454,961 Capital Outlay 74,100 2,595 ‐ 76,695 199,419 (11,380) 188,039 175,703 32,103 ‐ 207,806 Debt Service ‐ ‐ 3,068,212 3,068,212 ‐ ‐ 2,860,624 2,860,624 ‐ ‐ 2,731,749 2,731,749 Interfund Transfers ‐ 540,000 ‐ 540,000 ‐ 540,000 540,000 ‐ 500,000 ‐ 500,000 Total Uses 6,244,750 4,409,017 3,068,212 13,721,979 5,967,341 4,102,138 2,860,624 12,930,103 5,325,761 3,837,006 2,731,749 11,894,516 Net Income (Loss) 4,457 2,375 ‐ 6,832 110,470 (13,909) ‐ 96,561 133,266 386,287 ‐ 519,553 Total After Uses 2,141,597 2,086,377 ‐ 4,227,974 2,137,140 2,084,002 ‐ 4,221,142 2,026,670 2,097,911 ‐ 4,124,581 Transfers ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Fund Balance 2,141,597 2,086,377 ‐ 4,227,974 2,137,140 2,084,002 ‐ 4,221,142 2,026,670 2,097,911 ‐ 4,124,581

Change in Fund Balance (before Reserves): GENERAL FUND FY 14‐15 FY 13‐14 UTILITY FUND FY 14‐15 FY 13‐14 TOTAL FUNDS FY 14‐15 FY 13‐14 Dollar Change: 4,457 110,470 Dollar Change: 2,375 13,909 Dollar Change: 6,832 96,561 % Change: 0.2% 5.5% % Change: 0.1% 0.7% % Change: 0.2% 2.3%

Note on Changes in Fund Balance: Please note that neither the General Fund or the Water & Wastewater Fund have Percentage Changes greater than 10% for the three fiscal years presented above.

Note on Fund Balance: Per council direction, the budget is not amended at any time during the year. The difference between Total Sources and Uses and Fund Balance reflect the difference in budgeted expenditures versus actual expenditures and/ or differences in beginning and/or ending fund balance projections. The budget document is an estimation of revenues, expenditures and fund balances.

Definition of Fund Balance: Fund Balance ‐ The difference between fund assets and fund liabilities of governmental funds. Fund balance in the General Fund (which, for management purposes, uses the cash basis of accounting (see Summary of Significant Accounting Policies) ) closely equates to available cash. The Water & Wastewater enterprise fund also uses the term "Fund Balance." A more precise definition of an enterprise's fund balance is "retained earnings," which is the difference between Utility Fund Assets and Utility Fund liabilities. For budget purposes the fund balance of the Water & Wastewater Fund also closely equates to available cash.

DO IT IN HEWITT 96 OPERATING FUND SUMMARIES

OPERATING FUNDS REVENUE & EXPENSE SUMMARY FY 14/15 FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 REVENUES BUDGET ESTIMATED BUDGET ACTUAL BUDGET GENERAL FUND 7,516,936 7,170,575 6,899,211 6,462,795 6,484,800 UTILITY FUND 6,211,875 5,856,089 6,150,000 5,951,274 5,667,000 TOTAL REVENUES 13,728,811 13,026,664 13,049,211 12,414,069 12,151,800

FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 EXPENDITURES BUDGET ESTIMATED BUDGET ACTUAL BUDGET GENERAL FUND 6,244,750 5,967,341 5,808,287 5,325,761 5,521,123 UTILITY FUND 4,409,017 4,102,138 4,371,946 3,837,006 3,936,606 DEBT SERVICE 3,068,212 2,860,624 2,848,788 2,731,749 2,692,507 TOTAL EXPENDITURES 13,721,979 12,930,103 13,029,021 11,894,516 12,150,236 NET INCOME (LOSS) 6,832 96,561 20,190 519,553 1,564

OPERATING FUNDS REVENUE BY TYPE FY 14/15 FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 REVENUE BUDGET ESTIMATED BUDGET ACTUAL BUDGET Ad Valorem Taxes $ 3,767,776 $ 3,591,241 $ 3,488,191 $ 3,267,980 $ 3,160,000 Sales & Use Tax 1,778,900 1,545,897 1,450,520 1,377,427 1,414,800 Water Revenue 4,237,625 3,678,754 4,175,000 4,057,340 3,895,000 Sewer Revenue 1,814,250 1,969,518 1,770,000 1,718,278 1,577,000 Franchise Fees 1,134,500 1,135,389 1,110,500 1,080,154 1,146,000 Fines & Penalties 235,500 230,705 235,500 208,952 315,000 Intergovtl Rev 270,000 270,000 270,000 240,000 240,000 Licenses & Permits 100,000 71,419 100,000 100,132 100,000 Tap Fees 20,000 11,850 30,000 13,700 20,000 Interest 40,000 90,901 31,000 36,143 31,000 Other Revenue 330,260 430,990 388,500 313,963 253,000 Total Revenues $ 13,728,811 $ 13,026,664 $ 13,049,211 $ 12,414,069 $ 12,151,800

(continued)

DO IT IN HEWITT 97 OPERATING FUNDS EXPENSES BY DEPARTMENT FY 14/15 FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 General Fund BUDGET ESTIMATED BUDGET ACTUAL BUDGET Police Department $ 2,401,765 $ 2,305,742 $ 2,299,020 $ 2,085,460 $ 2,191,250 Community Services 585,921 584,822 591,710 570,774 679,206 Fire Department 1,028,352 1,033,200 984,573 878,789 848,597 Library Department 471,133 379,082 361,247 311,219 327,883 Administration 756,074 830,958 618,734 625,425 570,826 Community Development 355,813 306,439 406,552 380,844 389,988 Finance 326,811 241,188 246,960 200,162 203,576 Municipal Court 157,393 151,636 150,334 139,297 151,179 Human Resources 161,488 134,274 149,157 133,791 158,618 Debt 1,267,729 1,092,764 1,087,752 1,003,768 962,636 Expenditures $ 7,512,479 $ 7,060,105 $ 6,896,039 $ 6,329,529 $ 6,483,759

FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 Utility Fund BUDGET ESTIMATED BUDGET ACTUAL BUDGET Maintenance $ 3,474,056 $ 3,188,842 $ 3,439,391 $ 3,007,232 $ 3,066,125 Administration 635,000 641,321 634,000 592,034 587,650 Utility Billing 299,961 271,975 298,555 237,740 282,831 Debt 1,800,483 1,767,860 1,761,036 1,727,981 1,729,871 Expenses $ 6,209,500 $ 5,869,998 $ 6,132,982 $ 5,564,987 $ 5,666,477 Total Operating Expenses $ 13,721,979 $ 12,930,103 $ 13,029,021 $ 11,894,516 $ 12,150,236

OPERATING FUNDS EXPENSES BY DEPARTMENT & TYPE FY 14/15 Salaries Supplies Repairs & Services Capital Debt General Fund & Benefits & Materials Maintenance & Charges Outlay Transfers Service Totals Police Department 2,012,656 169,119 19,700 184,690 15,600 ‐ ‐ 2,401,765 Community Services 371,021 22,200 93,000 99,700 ‐ ‐ ‐ 585,921 Fire Department 940,397 40,200 16,500 31,255 ‐ ‐ ‐ 1,028,352 Library Department 263,283 15,500 2,000 136,850 53,500 ‐ ‐ 471,133 Administration 464,874 13,500 1,500 274,200 2,000 ‐ ‐ 756,074 Community Development 229,863 22,250 26,200 75,500 2,000 ‐ ‐ 355,813 Finance 234,606 3,400 ‐ 88,805 ‐ ‐ ‐ 326,811 Municipal Court 120,893 2,200 ‐ 33,300 1,000 ‐ ‐ 157,393 Human Resources 106,238 350 ‐ 54,900 ‐ ‐ ‐ 161,488 Debt ‐ ‐ ‐ ‐ ‐ ‐ 1,267,729 1,267,729 GF Expenditures 4,743,831 288,719 158,900 979,200 74,100 ‐ 1,267,729 7,512,479 Salaries Supplies Repairs & Services Capital Debt Utility Fund & Benefits & Materials Maintenance & Charges Outlays Transfers Service Totals Maintenance 523,114 66,050 418,500 2,466,392 ‐ ‐ ‐ 3,474,056 Administration ‐ 2,500 ‐ 92,500 ‐ 540,000 ‐ 635,000 Utility Billing 204,066 39,000 ‐ 54,300 2,595 ‐ ‐ 299,961 Debt ‐ ‐ ‐ ‐ ‐ ‐ 1,800,483 1,800,483 UF Expenses 613,914 80,900 275,500 2,432,792 9,000 1,729,871 500,000 6,209,500 Total Operating Expenses 5,357,745 369,619 434,400 3,411,992 83,100 1,729,871 1,767,729 13,721,979

DO IT IN HEWITT 98 SPECIAL REVENUE FUNDS

SPECIAL REVENUE FUNDS – A fund created to account for the accumulation and disbursement of legally restricted resources to expenditures for a specific purpose.

DO IT IN HEWITT 99

DRAINAGE FUND

DO IT IN HEWITT 100 City of Hewitt Functional Structure

Drainage Fund

City Manager

Assistant City Manager

Public Works Supervisor

Equipment Field Operators Assistants (3) (1)

DO IT IN HEWITT 101 ANNUAL BUDGET DRAINAGE FUND FISCAL YEAR 2014-2015

MISSION Insert Picture Here The mission of the Community Service department is to continuously implement new ways in increasing efficiency, while balancing it with cost-effective measures. The services provided by our department, include, but are not limited, to the Transportation System and Park System. Our department utilizes its resource in maintaining the safety and beautification of the greater Hewitt area.

DESCRIPTION OF DEPARTMENT The Community Service department maintains the upkeep of the grounds of Hewitt. Its parks and streets are carefully planned in accordance with the guidelines of the city. Our department works on behalf of the interest of the residents through our constant giving and service. With the Hewitt area on a constant growth rate, the Community Service department never settles for less. It strives to

The Community Service department constantly works to maintain their environmentally-friendly area. Each aspect that goes into the planning of the streets and parks are considered in appliance with the guidelines of the city. Through our constant giving and service, we strive to provide an environment in the best interests of its residents. As the growth rate of our community keeps growing, we never

GOALS  Redo drainage at Old Temple at end of East Chapman  Repair curbs that are not functioning properly  Keep creeks at both parks clear of any veghigh vegitation  Address and repair drainage issues that accure in the city

ACCOMPLISHMENTS  Established dainage at the end of Attaway at Spring Valley  Clear area around creek at Warren Park  Clear areas around creeks going thru Hewitt  Replace curbs where needed around Hewitt

DO IT IN HEWITT 102 DRAINAGE FUND FY 14/15

FY 14‐15 Budget Capital Outlay, Services, 6,350 6,000 Maintenance, 6,500

Supplies, 29,350

Personnel, 179,627

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimated Budget Actual Budget Personnel 179,627 169,486 173,167 166,531 158,283 Supplies 29,350 24,850 28,550 18,028 25,400 Maintenance 6,500 3,731 8,000 8,091 8,000 Services 6,350 21,758 4,050 12,324 18,700 Capital Outlay 6,000 69,468 31,000 164,384 64,000 Total 227,827 289,293 244,767 369,358 274,383

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Drainage Supervisor 11111 Equipment Operator 11111 Field Assistant 22222 Total 44444

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Actual Hrs Clearing Drainage in Winter 900 800 750 700 650 Hrs Mowing Drainage areas 900 800 750 700 650 Major Drainage Channels 44432 Hrs Spent on Major Projects 8000 7500 7000 6500 6000

DO IT IN HEWITT 103 DRAINAGE FUND Summary of Sources and Uses FY 14/15

BUDGET ESTIMATED BUDGET ACTUAL BUDGET FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 BEGINNING FUND BALANCE $ 131,496 $ 118,472 $ 188,472 $ 301,238 $ 301,238 REVENUES DRAINAGE FEES $ 267,120 $ 264,914 $ 254,400 $ 256,448 $ 246,000 INTEREST EARNINGAS 200 209 200 144 200 MISC INCOME 100 ‐ 100 ‐ 100 TRANSFER FROM GF ‐ ‐ ‐ ‐ 30,000 TOTAL REVENUE$ 267,420 $ 265,123 $ 254,700 $ 256,592 $ 276,300 TOTAL RESOURCES$ 398,916 $ 383,595 $ 443,172 $ 557,830 $ 577,538 EXPENSES SALARIES $ 121,177 $ 116,238 $ 117,942 $ 113,400 $ 108,003 OVERTIME 2,000 7,336 2,000 4,431 2,000 SOCIAL SECURITY 9,423 8,968 9,176 7,777 8,415 TMRS 18,477 18,155 17,991 17,310 15,865 EMPLOYEE INSURANCE 23,600 19,641 23,808 20,183 20,400 PRE‐EMPLOYMENT EXP 250 354 250 ‐ 100 UNEMPLOYMENT INS 1,000 ‐ 1,000 ‐ 1,000 WORKERS COMP 3,700 3,601 1,000 3,431 2,500 TOTAL PERSONNEL$ 179,627 $ 174,293 $ 173,167 $ 166,531 $ 158,283 CHEMICALS 11,000 6,800 10,000 794 10,000 FUEL 11,000 14,388 11,000 12,149 10,000 OFFICE SUPPLIES 350 321 350 208 400 OTHER EQUIP & SUPPLIES 6,000 3,898 6,000 4,877 5,000 UNIFORM PURCHASE 1,000 ‐ 1,200 ‐ ‐ TOTAL SUPPLIES$ 29,350 $ 25,407 $ 28,550 $ 18,028 $ 25,400 VEHICLE MAINTENANCE 1,500 1,078 3,000 2,807 3,000 HEAVY EQUIP MAINT 5,000 2,476 5,000 5,284 5,000 TOTAL MAINTENANCE$ 6,500 $ 3,554 $ 8,000 $ 8,091 $ 8,000 CONTINGENCY ‐ ‐ ‐ ‐ 1,000 DUES & SUBSCRIPTIONS 150 ‐ 100 147 ‐ ENGINEERING ‐ 17,603 ‐ 8,958 12,000 SERVICE CONTRACTS ‐ 2,037 ‐ ‐ ‐ TELECOMMUNICATION 1,200 883 450 839 700 TRAVEL & TRAINING 1,000 11 1,500 35 3,000 UNIFORM CLEANING 4,000 2,910 2,000 2,345 2,000 TOTAL CONTRACTS$ 6,350 $ 23,444 $ 4,050 $ 12,324 $ 18,700 BB&T LEASE 20,627 ‐ ‐ ‐ ‐ TOTAL DEBT SERVICE$ 20,627 $ ‐ $ ‐ $ ‐ $ ‐ OTHER EQUIPMENT 5,000 1,465 ‐ 43,179 40,000 DRAINAGE IMPRVMTS ‐ 10,615 ‐ 95,452 ‐ VEHICLES 1,000 13,321 31,000 25,752 24,000 TOTAL CAPITAL OUTLAY$ 6,000 $ 25,401 $ 31,000 $ 164,384 $ 64,000 TOTAL EXPENSES$ 248,454 $ 252,099 $ 244,767 $ 369,358 $ 274,383 NET INCOME (LOSS)$ 18,966 $ 13,024 $ 9,933 $ (112,766) $ 1,917 ENDING FUND BALANCE$ 150,462 $ 131,496 $ 198,405 $ 188,472 $ 303,155

To be Financed: 2015 Ford F250 Super Cab 3/4/ Ton Pickup 27,683

DO IT IN HEWITT 104

HOTEL FUND

DO IT IN HEWITT 105 HOTEL FUND Summary of Sources and Uses FY 14/15

BUDGET ESTIMATED BUDGET ACTUAL BUDGET FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 BEGINNING FUND BALANCE$ 25,480 $ 31,741 $ 31,741 $ 24,668 $ 24,668 REVENUES HOTEL OCCUPANCY TAX$ 125,000 $ 118,621 $ 107,000 $ 103,610 $ 100,000 INTEREST EARNINGS 100 102 100 63 100 TOTAL REVENUE$ 125,100 $ 118,723 $ 107,100 $ 103,673 $ 100,100 TOTAL RESOURCES$ 150,580 $ 150,464 $ 138,841 $ 128,341 $ 124,768 EXPENSES BUILDING MAINTENANCE 1,000 2,284 10,000 15,641 7,500 TOTAL MAINTENANCE$ 1,000 $ 2,284 $ 10,000 $ 15,641 $ 7,500 ADVERTISING 90,000 111,788 60,000 73,367 77,600 DUES & SUBSCRIPTIONS 500 190 1,000 ‐ 1,000 UTILITY EXPENSE 6,000 10,577 12,000 7,592 12,000 TOTAL SERVICES$ 96,500 $ 122,555 $ 73,000 $ 80,959 $ 90,600 OTHER IMPROVEMENTS 2,000 145 5,800 ‐ 2,000 TOTAL CAPITAL OUTLAY$ 2,000 $ 145 $ 5,800 $ ‐ $ 2,000 TOTAL EXPENSES 99,500 124,984 88,800 96,600 100,100 NET INCOME (LOSS) 25,600 (6,261) 18,300 7,073 ‐ ENDING FUND BALANCE$ 51,080 $ 25,480 $ 50,041 $ 31,741 $ 24,668

DO IT IN HEWITT 106

CAPITAL PROJECTS FUNDS

CAPITAL PROJECTS FUNDS ‐ A fund created to account for the budget and actual expenses and revenues associated with a particular capital project.

DO IT IN HEWITT 107 CAPITAL OUTLAY

Capital outlay is the expenditure of funds for the acquisition of or addition to a government=s fixed assets. Fixed assets are long‐lived tangible assets including buildings and improvements, equipment, vehicles, land and infrastructure. Infrastructure assets are public domain fixed assets such as roads, bridges, streets, drainage systems, water mains, and similar assets that are immovable and of value only to the government.

The City of Hewitt’s Capital Outlay requirements can be grouped into three broad categories:

1. Those of a recurring or repetitive nature; 2. Those of a one‐time or non‐recurring nature; and 3. Infrastructure.

An example of recurring capital outlay would be vehicles, which must be regularly replaced. This type of capital outlay is scheduled according to a rolling replacement list developed by staff and the maintenance shop. The schedule is reviewed and revised each year during the budget process to determine which items will be funded in the budget.

An example of a non‐recurring capital outlay would be the purchase of an emergency generator for city hall. These types of expenditures are requested by department heads and must be justified on the basis of need, cost and improvement of service level or operations. Department heads must rank these types of items in order of importance in making their budget request. Major capital outlay items which are budgeted out of operating funds FY 2009‐10 are addressed in the City Manager’s Budget Message. A list of budgeted capital outlay items from operating funds follows this page. For FY 2010‐2011, these proposed capital outlays will not require additional manpower nor will they significantly impact operating costs.

Infrastructure outlays are developed using long‐range plans for streets, water, sewer and drainage. Staff, Council and the City’s engineers developed these long‐range plans. The list of slated infrastructure projects is reviewed and revised each year during the budget process. Some projects must wait until sufficient funding is available. Other projects are of such magnitude that they require a bond issue to provide funding.

The City uses two separate capital project funds to account for resources to be used for the acquisition and construction of major infrastructure assets, usually projects that may extend over more than one fiscal year. There is a General Projects Fund for street improvements or construction of general fund type assets, such as libraries. There are 2 other funds for water and wastewater infrastructure; a Water and Wastewater Projects Fund for all infrastructure costs relating to water or sewerage service to the city and a WMARSS/2007 Bond Project Fund for infrastructure costs related to the city’s cost of expanding the Waco Metropolitan Area Sewer System. Please see the Capital Projects Fund Summary and the City Manager’s Budget Message for listing of Capital Projects.

DO IT IN HEWITT 108 CAPITAL OUTLAY ‐ Lease Financing

GENERAL FUND POLICE DEPARTMENT 2014 Chevy Tahoe PPV vehicles (2)‐ Patrol $ 101,743 $ 101,743

COMMUNITY SERVICES 2014 Kubota Tractor $ 31,550 Shredder $ 6,100 $ 37,650

COMMUNITY DEVELOPMENT Floor Scrubber $ 8,650 $ 8,650 TOTAL GENERAL FUND 148,043

UTILITY FUND MAINTENANCE DEPARTMENT F250 Trucks (2) w/service bodies $ 63,832 $ 63,832 TOTAL UTILITY FUND$ 63,832

DRAINAGE FUND DRAINAGE FUND 2015 Ford F250 Super Cab 3/4/ Ton Pickup $ 27,683 $ 27,683 TOTAL DRAINAGE FUND$ 27,683

TOTAL LEASE FINANCING $ 239,558

DO IT IN HEWITT 109

Capital Improvements Projects at 9 30 2014

Project Project Description‐ This list is Incomplete will change and is intended to be used for Code Project Name discussion only Estimate/Award Awarded Contract Status Public Safety Facility Contract Police and Fire Depts‐Contract 3,720,936 944,858 K‐4 Balance OS Completion of PSF Furniture, Doors, IT, Console, etc 333,184 In Progress Microseal Various streets 175,548 In Progress Projects in Progress using Bond Funds and Unrestricted Cash $ 1,453,590

U1 Commerce Park Plant (Tank) Construction of 1MG Elevated Composite Tank 1,469,418 Phoenix Fabricators Balance OS U4 Commerce Park Plant (Plant) Plant Piping, Controls, Elec., and Building (possibly add generator) 1,200,000 Design Phase In Progress U5 Commerce Park Plant (Piping) Water line (16" distribution & 12" transmission fr McLemore Plt to Commerce Plt) 750,000 Design Phase In Progress Completion of Patriot Court Barnett 43,132 Barnett Balance OS Ritchey Road Pland Work by Barlow Tank on Ritchey Road Plant 383,400 Barlow Tank In Progress Other Utilities‐Premiere Baseball Fields Funds available for water & sewer to baseball fields; addtl from unrest. UF Funds 235,397 Design Phase In Progress U17‐APanther Way to Old Hewitt Road (see S5‐A) Rebuild/Reclaim/Utility Improvements 150,000 see 2014 CO Water/Wastewater U22 Lift Station at Alamo (see S17) Street Reclaim/Utility Improvements 400,000 see 2014 CO Wastewater Projects in Progress using Bond Funds and Unrestricted Cash $ 4,631,347 Library & City Hall Facilities Facilities for Library/Events Center & City Hall adjacent to Police/Fire Stations 4,500,000 2014 CO Facilities Park Development Improvements to Facilities at Warren Park 285,000 2014 CO Parks First Street Improvements Edge Mill and Overlay 312,000 2014 CO Street S9 Old Temple Road ‐ Phase 1 Rebuild with Concrete Ribbon Curb ‐ Spring Valley for 1,720 L.F. 450,000 2014 CO Street S5‐APanther Way to Old Hewitt Rd (see U17‐A) Rebuild/Reclaim/Utility Improvements ‐1,700 L.F.‐See U17‐A above (UF 150k) 658,000 2014 CO Street Other Street‐Premier Baseball Fields Other Street Improvements‐Premier Baseball Fields 305,000 2014 CO Street S17 Lift Station at Alamo (see U22) Street Reclaim/Utility Improvements ‐ See U17‐A above (UF 4000k) 275,000 2014 CO Street IT Hardware/Software IT Hardware/Software city wide 50,000 2014 CO IT 2014 Bonded Projects$ 6,835,000 TOTAL ONGOING PROJECTS$ 12,919,937

DO IT IN HEWITT 110

Capital Improvements Projects at 9 30 2014

Project Project Description‐ This list is Incomplete will change and is intended to be used for Code Project Name discussion only Estimate/Award Awarded Contract Status S5‐BPanther Way to Ava‐Phase 2 Streets, Drainage, and Utility Improvements 842,000 Future Project Street U17‐BPanther Way to Ava‐Phase 2 Streets, Drainage, and Utility Improvements 100,000 Related Project Water/Wastewater WMARSS Projects Rehabilitation of facilities; Hewitt's portion of $48 mil project at 7.86% 3,300,000 Future Project Wastewater U9 Sun Valley Phase 2Water line replacement 800,000 Future Project Water U24 L.S. @ Dane L.S. Replacement 350,000 Future Project Wastewater U11 L.S. at Black Diamond L.S. Replacement 350,000 Future Project Wastewater U14 South Main Interceptor (goes w/ U15) Sewer line to Bullhide interceptor. 1,000,000 Future Project Wastewater U15 L.S. at Westchester (goes w/ U14) Removal and required piping changes 100,000 Future Project Wastewater Microseal Completion of Lindenwood and Texas 250,000 Future Project Street S10‐AOld Temple Road ‐ Phase 2 (see U18) Street reconstruction w/ waterline replacement (to Castleman Creek) 1,250,000 Future Project Street U18 Old Temple Road ‐ Phase 2 (see S10‐A) Street reconstruction w/waterline replacement (to Castleman Creek) 50,000 Related Project Water S10‐BOld Temple Road ‐ Phase 3 (see U19) Street reconstruction w/ waterline replacement (Castleman Creek to F.M. 1695) 5,600,000 Future Project Street U19 Old Temple Road ‐ Phase 3 (see S10‐B) Street reconstruction w/waterline replacement (Castleman Creek to F.M. 1695) 300,000 Future Project Water U16 South 1 MG Composite Elevated Construct a 1 MG composite elevated tank near Warren Park 2,500,000 Future Project Water S16 Oklahoma, Travis, and Wall Street Replace existing utilities then reclaim street 200,000 Future Project Street U8 Oklahoma, Travis, and Wall Street Replace the existing sewer VCP with PVC. 600,000 Future Project Water/Wastewater S12 E. Warren St. Improvements Streets, drainage, and utility improvements 400,000 Future Project Street U21 E. Warren St. Improvements Streets, drainage, and utility improvements 300,000 Future Project Water/Wastewater U26 New Acres Dr., Peer Dr., and Minute Dr. Waterline replacement with fire hydrant additions 200,000 Future Project Water S13 Legacy Drive & Alliance Street Imp Street reconstruction; Concrete paving 1,400,000 Future Project Street U10 Commerce Park Plant (GST) Construction of a 1MG Ground Storage Tank (dependent on Waco contract) 850,000 Future Project Water U7 Lorena Well Conversion Refurbish facility and install lines to Ritchie Rd. Plt. 600,000 Future Project Water U20 IH‐35 Waterline Improvements Install a 16" distribution/transmission line along IH‐35 . 1,600,000 Future Project Water S3 Crescent and Will Bowman Streets, drainage, and utility improvements 550,000 Future Project Street U12 Crescent and Will Bowman Street improvements w/ waterline improvements 200,000 Future Project Water S4 Castleman Creek Rd. Improvements Streets, drainage, and utility improvements 2,200,000 Future Project Street U13 Castleman Crk Rd. Street improvements w/ waterline improvements 200,000 Future Project Water S7 Flat Creek Tributary Drainage Imp Channel clearing and reshaping 250,000 Future Project Drainage S8 Old Temple & Neeley Drainage Imp Box culvert and channel improvements 210,000 Future Project Drainage S15 Castleman Creek Drainage Imp Channel reshaping 250,000 Future Project Drainage S14 Westhill and Hidden Meadows Dr. Channel reshaping 80,000 Future Project Drainage S11 Spring Valley & Judy Drainage Imp Channel reshaping 70,000 Future Project Drainage

Total Future Projects$ 26,952,000 Total Current Projects, Related Projects & Future Projects$ 39,871,937

DO IT IN HEWITT 111

Series 2010 Issue Utility Fund Capital Projects

DO IT IN HEWITT 112 SERIES 2010‐UTILITY FUND CAPITAL PROJECT SUMMARY OF SOURCES & USES FY 14/15 FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 Account Description Budget Estimated Budget Actual Budget FUND BALANCE, BEGINNING 1,140,211 2,284,600 2,284,600 3,686,120 3,686,120 REVENUE 25‐30500‐00‐00 INTEREST INCOME 650 3,323 4,000 4,493 5,000 25‐30600‐00‐00 TRANSFERS FROM GEN FD ‐ ‐ ‐ ‐ REVENUE 650 3,323 4,000 4,493 5,000 EXPENSES 25‐50‐84596‐‐01 TXDOT 2 ‐ 21,390 36,846 32,987 69,833 25‐50‐830‐96‐02 UTILITY PROJECTS ‐ 19,120 718,283 1,093,273 1,811,556 25‐50‐845‐96‐04 N ELEVATED STORAGE 1,140,000 1,107,202 1,503,488 109,289 1,612,777 25‐50‐810‐96‐08 LAND & EASEMENTS ‐ ‐ ‐ 170,464 170,464 EXPENSES 1,140,000 1,147,712 2,258,617 1,406,013 3,664,630 Net Income (Loss) (1,139,350) (1,144,389) (2,254,617) (1,401,520) (3,659,630) FUND BALANCE, ENDING 861 1,140,211 29,983 2,284,600 26,490

For budget purposes, the projects related to Texas Department of Transportation (TxDot) are expected to increase electrical expense by $10,000 per year due to the increase size of the new lift station replace by TxDot. In addition, the operating expenses related to the Wmarss/Old Temple Road sewer line and Lift Station #4 replacement are expected to decrease personnel and repairs by $5,000 and increase electricity by $2,000. The new sewer line laid down Old Temple Road to the new Bullhide Treatment plant just outside the city are not expected to increase any operating expense since they are new lines and there was no maintenance where there were no lines. The North Elevated Water Storage project is in the engineering stage. Budgeted increases in electrical expense are $15,000 in FY 15/16 and there is an expected decrease in the costs of Waco water which is undetermined for FY 15/16, but will be identified in FY 16/17 when their contract expires. Remaining Bond funds are being consolidated to fund the Northside Elevated Storage Tank, water line and plant. The First Phase is bid for $2,457,240 for the elevated tank. Increased expenses for electricity is estimated at $5000 in late FY 14/15.

DO IT IN HEWITT 113

Series 2012 Issue General Fund Capital Projects

DO IT IN HEWITT 114 2012 BOND FUNDS ‐ GENERAL FUND CAPITAL PROJECTS SUMMARY OF SOURCES & USES FY 14/15 FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 FY 11/12 FY 11/12 Account Description Budget Estimated Budget Actual Budget Actual Budget FUND BALANCE, BEGINNING 175,458 783,003 783,003 2,740,306 2,740,306 ‐ ‐ REVENUE 16‐30500 INTEREST INCOME 540 5,739 20,901 9,145 18,000 ‐ ‐ 16‐30550 BOND PROCEEDS ‐ ‐ ‐ ‐ 2,904,978 2,905,000 16‐30555 BOND PREMIUM ‐ ‐ ‐ ‐ ‐ ‐ 16‐30600 INTERGOVERNMENTAL ‐ ‐ ‐ ‐ ‐ ‐ ‐ 16‐30800 MISC REVENUE ‐ ‐ 100,000 (59,772) (59,772) 61,472 ‐ 16‐30850 DONATIONS ‐ ‐ ‐ 27,500 ‐ ‐ ‐ REVENUE 540 5,739 120,901 (23,127) (41,772) 2,966,450 2,905,000 EXPENSES 16‐50310‐16‐00 BOND ISSUANCE EXP ‐ ‐ ‐ 20,355 80,127 16‐50835‐16‐01 STREET PROJECTS 175,998 613,284 281,401 887,705 1,169,106 185,767 1,354,873 16‐50806‐16‐02 FIRE TRUCK ‐ ‐ ‐ 431,112 425,000 ‐ 425,000 16‐50805‐16‐04 TECHNOLOGY ‐ ‐ ‐ 22,546 ‐ 16,447 60,000 16‐50807‐16‐03 FACILITIES ‐ ‐ ‐ 394,870 321,425 3,575 325,000 16‐50412‐16‐05 FLOOD PLAIN STUDY ‐ ‐ 100,000 ‐ 100,000 ‐ 100,000 16‐50812‐16‐06 PARKS IMPROVEMENT ‐ ‐ ‐ 197,943 150,000 ‐ 150,000 16‐50812‐16‐07 DRAINAGE PROJECTS ‐ ‐ 347,045 ‐ 410,000 ‐ 410,000 EXPENSES 175,998 613,284 728,446 1,934,176 2,575,531 226,144 2,905,000 Net Income (Loss) (175,458) (607,545) (607,545) (1,957,303) (2,617,303) 2,740,306 ‐ FUND BALANCE, ENDING ‐ 175,458 175,458 783,003 123,003 2,740,306 ‐

For budget purposes, the Street Projects are part of a maintenance program that microseals 7‐10 streets per year. We determine that this saves the city $4,500 in patching expense and personnel time. Other street projects completed include Devonshire resurfacing. This is expected to save the city $7500 in resurfacing material and personnel time. Ongoing street projects include the new street, Patriot Court, on which the new public facilities will be located. The new Fire Truck has allowed the city to sell on of the older trucks for $15,000. Additional property insurace expense is budgeted at $500. The Facilities at Hewitt Drive were completely rebuilt to house all Water and Wastewater departments,(Maintenance and Utility Billing) and the Community Development Department (which handles permits, zoning and some economic development.) Additional operating expenses include an increase in electrical expense of $4,500. The footage at City Hall that was freed up by moving the Utility Billing and Permit Department to the upgraded facilities was soon absorbed by the Administration and Library expansions. Parks Capital funds were used to set up a playgound structure. This requires more attention by the parks staff to review but no additonal staff expense has been required. In addition, donations provided have allowed for a disc golf installation. No additonal staff expense has been required at this time.

DO IT IN HEWITT 115

Series 2012 Issue Utility Fund Capital Projects

DO IT IN HEWITT 116 2012 BOND FUNDS ‐ UTILITY FUND CAPITAL PROJECTS SUMMARY OF SOURCES & USES FY 14/15 FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 FY 11/12 FY 11/12 Account Description Budget Estimated Budget Actual Budget Actual Budget FUND BALANCE, BEGINNING 3,508,272 4,049,628 4,049,628 4,765,539 4,765,539 ‐ ‐ REVENUE 17‐30‐500 INTEREST INCOME 10,000 14,156 20,901 21,685 30,000 ‐ ‐ 17‐30550 BOND PROCEEDS ‐ ‐ ‐ 4,795,000 4,795,000 17‐30555 BOND PREMIUM ‐ ‐ ‐ ‐ ‐ 17‐30600 INTERGOVERNMENTAL ‐ ‐ ‐ ‐ ‐ ‐ ‐ 17‐30800 MISC REVENUE ‐ ‐ 100,000 ‐ ‐ ‐ ‐ 17‐30850 DONATIONS ‐ ‐ ‐ ‐ ‐ ‐ ‐ REVENUE 10,000 14,156 120,901 21,685 30,000 4,795,000 4,795,000 EXPENSES 16‐50310‐16‐00 BOND ISSUANCE EXPENSE ‐ ‐ ‐ ‐ 29,461 ‐ 16‐50807‐16‐03 FACILITIES CAPITAL ‐ ‐ ‐ 389,438 325,000 ‐ 325,000 16‐50805‐16‐04 TECHNOLOGY ‐ 48,448 24,543 45,457 70,000 ‐ 70,000 16‐50340‐16‐08 REPAINT WATER TOWERS 160,272 ‐ 200,000 ‐ 200,000 ‐ 200,000 16‐50621‐16‐09 IMPROVEMENTS TO LS #2 ‐ 205,917 124,080 25,920 150,000 ‐ 150,000 16‐50621‐16‐10 AUXILIARY POWER 208,000 ‐ 250,000 ‐ 250,000 ‐ 250,000 16‐50845‐16‐11 UTILITY PROJECTS ‐ 301,147 373,219 276,781 650,000 ‐ 650,000 16‐50845‐16‐12 N SIDE ELEVATED STORAGE 3,150,000 ‐ 3,150,000 ‐ 3,150,000 ‐ 3,150,000 EXPENSES 3,518,272 555,512 4,121,842 737,596 4,795,000 29,461 4,795,000 Net Income (Loss) (3,508,272) (541,356) (4,000,941) (715,911) (4,765,000) 4,765,539 ‐ FUND BALANCE, ENDING 0 3,508,272 48,687 4,049,628 539 4,765,539 ‐

Lift Station #6 was upgraded. The additional electrical expense of $1000 is budgeted in FY 14/15. Repair expenses saved are estimated at $5000. The Sun Valley Waterline is fully completed and is estimated to have saved at least $20,000 in repair materials and personnel expense in FY 13/14. Remaining Bond Funds are proposed to be used for the North Side Elevated Storage completion, Phases 2 and 3.

DO IT IN HEWITT 117

Series 2013 Issue Public Safety Facilities

DO IT IN HEWITT 118 SERIES 2013 ‐ PUBLIC SAFETY FACILITIES SUMMARY OF SOURCES & USES FY 14/15 FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 Account Description Budget Estimated Budget Actual Budget FUND BALANCE, BEGINNING 927,308 4,352,941 $ 4,347,941 $ 706,627 $ 706,627 REVENUE 15‐30500‐00‐00 Interest Income 750 10,879 5,000 6,041 2,000 15‐30550‐00‐00 Bond Proceeds ‐ ‐ ‐ 3,850,000 3,850,000 15‐30600‐00‐00 Transfers from GF ‐ 4,957 ‐ ‐ ‐ 15‐30800‐00‐00 Misc Income 20,000 73 ‐ ‐ ‐ 15‐30850‐00‐00 Donations‐Playground ‐ 1,000 ‐ ‐ ‐ REVENUE 20,750 16,909 5,000 3,856,041 3,852,000 EXPENSES 15‐50800‐15‐00 Other Expenses ‐ ‐ ‐ 119,993 ‐ 15‐50835‐15‐01 Microseal‐Street Capital ‐ ‐ ‐ ‐ ‐ 15‐50835‐15‐02 Third St & Warren‐Street Capital ‐ ‐ ‐ ‐ ‐ 15‐50810‐15‐03 Facilities‐Land & Easements ‐ 415,988 371,943 86,734 458,677 15‐50325‐15‐05 Park Improvements ‐ 29,522 75,000 ‐ 75,000 15‐50325‐15‐06 Public Safety Facilities 944,858 2,997,032 3,847,000 3,000 EXPENSES 944,858 3,442,542 4,293,943 209,727 533,677 NET INCOME (LOSS) (924,108) (3,425,633) (4,288,943) 3,646,314 3,318,323 FUND BALANCE, ENDING 3,200 927,308 58,998 4,352,941 4,024,950

In 2013 the city issued $3,850,000 in bonds for a facility to house police and fire. The Public Safety Facilities are estimated to be completed in November 2014.

The estimated budget for FY 2014-2015 includes additional expenses for utilities and maintenance of the new facilities, with utilities expense expected to double from $15,000 to $30,000 and maintenance to increase by $10,000. Additional capital items will be budgeted and purchased as part of the budget process and are expected to increase at a nominal rate. Revenue of projected $250,000 from the sale of the facilities currently used by the fire and police departments are expected to cover any additional capital items.

These projects support Goal 1 of the Council to provide an efficient, safe and connective transportation system that is coordinated with existing needs and with plans for future growth; this system should be economical and responsive to adjacent land uses. Also, Obj.1.5. "Protect the investment in the public transportation system through preventive maintenance and ongoing rehabilitation of streets. Perform annual maintenance upgrades."

DO IT IN HEWITT 119

Series 2014 Issue City Hall and Library

DO IT IN HEWITT 120 SERIES 2014 ‐ CITY HALL AND LIBRARY SUMMARY OF SOURCES & USES FY 14/15 FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 Account Description Budget Estimated Budget Actual Budget FUND BALANCE, BEGINNING 6,833,423 ‐ $ ‐ $ ‐ $ ‐ REVENUE 18‐30500‐00‐00 INTEREST INCOME 24,000 2,781 ‐ ‐ ‐ 18‐30550‐00‐00 BOND PROCEEDS ‐ 6,835,000 6,835,000 ‐ ‐ 18‐30800‐00‐00 MISC INCOME ‐ ‐ ‐ ‐ ‐ TOTAL REVENUE 24,000 6,837,781 6,835,000 ‐ ‐ EXPENSES 18‐50310‐00‐00 BOND ISSUANCE EXPENSE ‐ ‐ ‐ ‐ ‐ 18‐50835‐18‐01 CITY HALL/LIBRARY FACILITIES 2,750,000 ‐ 4,500,000 ‐ ‐ 18‐50812‐18‐02 PARK DEVELOPMENT 285,000 ‐ 285,000 ‐ ‐ 18‐50805‐18‐03 TECHNOLOGY 50,000 ‐ 50,000 ‐ ‐ 18‐50325‐18‐04 STREET IMPROVEMENT 750,000 4,358 2,000,000 ‐ ‐ EXPENSES 3,835,000 4,358 6,835,000 ‐ ‐ NET INCOME (LOSS) (3,811,000) 6,833,423 ‐ ‐ ‐ FUND BALANCE, ENDING 3,022,423 6,833,423 ‐ ‐ ‐

In 2013 the city issued $6,835,000 in bonds for new expanded City Hall and Library facilities. These new facilities are estimated to be completed in Spring of 2016.

The estimated budget for FY 2015-2016 will include additional expenses for utilities and maintenance of these new facilities, with utilities expense expected to increase from $12,000 to $20,000 and maintenance to increase by $8,000. Additional capital items will be budgeted and purchased as part of the budget process and are expected to increase at a nominal rate.

Providing these facilities fulfills Goal #3- Ensure that public services and facilities will adequately serve the needs of residents and businesses with the City and that such service is adaptable to future growth. And Goal #7- Foster a positive interaction with the public and encourage citizen involvement. Provide recreation opportunity for population in Hewitt.

DO IT IN HEWITT 121

FINANCIAL OPERATIONAL SECTION

Section 3 of 4:

 Introductory  Budget Summary  Financial/Operational  Supplemental Information

DO IT IN HEWITT 122 GENERAL FUND

The General Fund is a Major Fund used to account for all revenues and expenditures relating to the general operations of the City of Hewitt not accounted for in other city funds.

DO IT IN HEWITT 123 GENERAL FUND ‐ DEPARTMENT DETAIL Overview of Departments The General Fund is organized into the following 10 departments.

Department 41‐POLICE DEPARTMENT ‐ subdivided into 6 divisions The Police Department serves and protects the community through the enforcement of federal and state law, aw well as municipal ordinaces. The department consists of the Administration, Patrol, Criminal Investigation, Communications, Animal Control and Code Enforcement. Department 50‐ COMMUNITY SERVICES The Community Services department maintains the grounds of the city property including streets and parks. Department 56‐ FIRE DEPARMENTS The Fire department provides fire protection, training and education, and fire protection to the citizens of Hewitt. They also respond to emergency incidents. Department 59‐ HEWITT LIBRARY The Hewitt Library provides access to informational, educational, cultural and recreational library materials and services in a variety of formats and technologies. Department 61‐ADMINISTRATION The Administration Department provides professional management and administration of the City and implement the City council policy decisions. Department 63‐COMMUNITY DEVELOPMENT The Community Development Department monitors the orderly growth of the city thru the issuance of permits, monitoring of compliance with the city code, reviewing of subdivision plats & zoning requests. Department 64‐FINANCE DEPARTMENT The Finance Department ensures responsible oversight of the city's finances thru the budget, investments, debt management, financial reporting, payroll, risk and audit functions. Department 65‐MUNICIPAL COURT The Municipal Court provides an accessible legal forum for indicuals to have their court citations heard in a fair and efficient manner in accordance with the Texas Code of Criminal Procedure and the Code of Judicial Conduct. Cases filed are class "C" misdemeanors and local city ordinances. Department 66‐HUMAN RESOURCES The Human Resources Department provides an organizational framework to recruit, select, classify, compensate, develop and reward the City's workforce, while ensuring an environment that optimizes productivity, efficienty and effectiveness. Department 70‐DEBT SERVICE The Debt Service Department provides for the accounting and payment of General Fund obligations.

DO IT IN HEWITT 124 GENERAL FUND BUDGET PROJECTION by CATEGORY FY 14/15

Estimated Beginning Fund Balance $ 2,137,140

Revenues & Transfers In $ 7,516,936

Expenditures: Personnel 4,743,831 Supplies 288,719 Repair & Maintenance 158,900 Services 979,200 Debt Service 1,267,729 Capital Outlay 74,100 $ 7,512,479

Revenues in Excess of O&M Expenditures $ 4,457

Capital Projects‐transfers to Street Capital & Drainage $ ‐

Net Impact of Request on Cash $ 4,457

Estimated Ending Fund Balance $ 2,141,597

Minimum Fund Balance (3 months O&M budget) $ 2,078,120

Estimated Fund Balance in Excess of Minimum $ 63,477

Note: City policy requires a minimum unreserved cash fund balance equal to at least three months of operating expenditures. For the proposed 2014‐15 budget, the minimum fund balance is 3 months of operating expenditures or $2,078,120 (prior year, $1,724,010). The city also reserves an additional $200,000 for PEG fees and civil service accruals.

DO IT IN HEWITT 125 GENERAL FUND BUDGET SUMMARY SUMMARY OF SOURCES & USES FY 14/15

General Fund Debt Service Fund Total Governmental Funds FY 14/15 FY 13/14 FY 12/13 FY 14/15 FY 13/14 FY 12/13 FY 14/15 FY 13/14 FY 12/13 BUDGET ESTIMATE ACTUAL BUDGET ESTIMATE ACTUAL BUDGET ESTIMATE ACTUAL Fund Balance, Beginning $2,137,140 $2,026,670 $1,893,404 $0 $0 $0 $2,137,140 $2,026,670 $1,893,404

REVENUES Ad valorem taxes $2,500,047 $2,498,477 2,264,212 $1,267,729 $1,092,764 $1,003,768 $3,767,776 $3,591,241 $3,267,980 Sales & Use tax 1,778,900 1,545,897 1,377,427 1,778,900 1,545,897 1,377,427 Franchise fees 1,134,500 1,135,389 1,080,154 1,134,500 1,135,389 1,080,154 Fines & Penalties 235,500 230,705 208,952 235,500 230,705 208,952 Intergovernmental Rev 270,000 270,000 240,000 270,000 270,000 240,000 Licenses & Permits 100,000 71,419 100,132 100,000 71,419 100,132 Interest Earnings 20,000 73,847 15,902 20,000 73,847 15,902 Miscellaneous Revenue 205,260 242,077 152,198 205,260 242,077 152,198 Grant Revenue 5,000 10,000 20,050 5,000 10,000 20,050 Total Revenues $6,249,207 $6,077,811 $5,459,027 $1,267,729 $1,092,764 $1,003,768 $7,516,936 $7,170,575 $6,462,795 Total Resources $8,386,347 $8,104,481 $7,352,431 $1,267,729 $1,092,764 $1,003,768 $9,654,076 $9,197,245 $8,356,199 EXPENDITURES Police Department $ 2,401,765 $ 2,305,742 $ 2,085,460 $ 2,401,765 $ 2,305,742 $ 2,085,460 Community Services 585,921 584,822 570,773 585,921 584,822 570,773 Fire Department 1,028,352 1,033,200 878,789 1,028,352 1,033,200 878,789 Library 471,133 379,082 311,219 471,133 379,082 311,219 Administration 756,074 830,958 625,425 756,074 830,958 625,425 Community Development 355,813 306,439 380,844 355,813 306,439 380,844 Finance Department 326,811 241,188 200,163 326,811 241,188 200,163 Municipal Court 157,393 151,636 139,297 157,393 151,636 139,297 Human Resources 161,488 134,274 133,791 161,488 134,274 133,791 Debt Service ‐ ‐ ‐ $1,267,729$ 1,092,764 $ 1,003,768 1,267,729 1,092,764 1,003,768 Total Expenditures $6,244,750 $5,967,341 $5,325,761 $1,267,729 $1,092,764 $1,003,768 $7,512,479 $7,060,105 $6,329,529 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Use of Resources $6,244,750 $5,967,341 $5,325,761 $1,267,729 $1,092,764 $1,003,768 $7,512,479 $7,060,105 $6,329,529 Fund Balance $2,141,597 $2,137,140 $2,026,670 $2,141,597 $2,137,140 $2,026,670 Rainy Day Reserves (1,878,120) (1,724,010) (1,620,940) (1,878,120) (1,724,010) (1,620,940) Fund Balance, Ending $263,477 $413,130 $405,730 $0 $0 $0 $263,477 $413,130 $405,730

Change in Fund Balance (Before Reserves): Change in Fund Balance Rainy Day Reserves: FY 14/15 FY 13/14 FY 14/15 FY 13/14 Dollar Change: 4,457 110,470 (154,110) (103,070) Percentage Change: 0.2% 5.5% 8.9% 6.4%

Note on Changes in Fund Balance: Please note that the General Fund does not have Percentage Changes greater than 10% for the three fiscal years presented above.

Note on Fund Balance: Per council direction, the budget is not amended at any time during the year. The difference between Total Sources and Uses and Fund Balance reflects the difference in budgeted expenditures versus actual expenditures and/ or differences in beginning and/or ending fund balance projections. The budget document is an estimation of revenues, expenditures, and fund balances.

Definition of Fund Balance: Fund Balance ‐ The difference between fund assets and fund liabilities of governmental funds. Fund balance in the General Fund (which uses the cash basis of accounting (see Summary of Significant Accounting Policies) ) closely equates to available cash.

DO IT IN HEWITT 126 GENERAL FUND MULTI‐YEAR PROJECTION OF REVENUE AND EXPENDITURES

BUDGET BUDGET BUDGET BUDGET BUDGET REVENUE FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 AD VALOREM TAXES 3,767,776 3,945,509 4,080,428 4,215,347 4,350,267 SALES TAX REVENUE 1,778,900 1,903,423 2,036,663 2,179,229 2,331,775 CABLE FRANCHISE FEE 180,000 180,000 180,000 180,000 180,000 ELECTRICITY FRANCHISE FEE 420,000 420,000 420,000 420,000 420,000 SOLID WASTE FRANCHISE FEE 190,500 200,000 200,000 200,000 200,000 NATURAL GAS FRANCHISE FEE 16,000 16,000 16,000 16,000 16,000 TELECOMMUNICATIONS FRAN FEE 58,000 58,000 58,000 58,000 58,000 WATER FRANCHISE 140,000 145,000 145,000 145,000 145,000 SEWER FRANCHISE 130,000 135,000 135,000 135,000 135,000 PUBLIC SAFETY FINES & FEES 235,500 250,000 250,000 250,000 250,000 PERMIT REVENUE 100,000 100,000 125,000 100,000 100,000 INTEREST REVENUE 20,000 20,000 20,000 20,000 20,000 W&S ADMIN FEE 230,000 230,000 230,000 230,000 230,000 W&S PAYT IN LIEU OF TAX 40,000 40,000 40,000 40,000 40,000 COMMUNITY CENTER REVENUE 5,000 ‐ ‐ ‐ ‐ LIBRARY FINES & FEES 10,500 12,000 12,000 12,000 12,000 POLICE RECORDS REVENUE 6,000 6,000 6,000 6,000 6,000 MISD REIMBURSEMENT 112,760 116,143 119,627 123,216 126,912 DONATIONS‐CANINE PROGRAM 500 500 500 500 500 PARK REVENUE 12,000 15,000 15,000 16,000 16,000 PURCHASE CARD REBATE 45,000 60,000 60,000 60,000 60,000 MISCELLANEOUS REVENUE 3,000 10,000 10,000 10,000 10,000 DONATIONS‐LIBRARY PROGRAMS 500 500 500 500 500 LIBRARY GRANTS & DONATIONS 5,000 10,000 10,000 10,000 10,000 JUVENILE CASE MANAGEMENT 10,000 10,000 10,000 10,000 10,000 TOTAL REVENUES 7,516,936 7,883,075 8,179,718 8,436,792 8,727,954

BUDGET BUDGET BUDGET BUDGET BUDGET EXPENDITURES FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 17/18 POLICE DEPARTMENT 2,401,765 2,497,836 2,597,749 2,701,659 2,809,725 COMMUNITY SERVICES 585,921 609,358 633,732 659,081 685,445 FIRE DEPARTMENT 1,028,352 1,069,486 1,112,266 1,156,756 1,203,026 LIBRARY SERVICES 471,133 385,978 401,417 417,474 434,173 ADMINISTRATION 756,074 682,317 709,610 737,994 767,514 COMMUNITY DEVELOPMENT 355,813 370,046 384,847 400,241 416,251 FINANCE DEPARTMENT 326,811 339,883 353,479 367,618 382,323 MUNICIPAL COURT 157,393 163,689 170,236 177,046 184,128 HUMAN RESOURCES 161,488 167,948 174,665 181,652 188,918 DEBT SERVICE 1,267,729 1,554,278 1,547,452 1,555,916 1,557,562 TOTAL EXPENDITURES 7,512,479 7,840,818 8,085,454 8,355,438 8,629,065 EXCESS (DEFICIT) 4,457 42,257 94,264 81,355 98,890

These estimates were based on increases of $25 million annually in the taxable tax roll and no change in the tax rate. Sales tax was estimated to increase by 7% annually in FY 15/16 and 7% annually for the years after. Departmental expenses were estimated to increase by 4% annually. Debt service which was estimated at current bond obligations plus $150,000 for lease payments.

DO IT IN HEWITT 127

GENERAL FUND‐ REVENUE ASSUMPTIONS

DO IT IN HEWITT 128 GENERAL FUND REVENUE by TYPE FY 14/15

FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 BUDGET ESTIMATED BUDGET ACTUAL BUDGET TAXES Ad Valorem Tax Revenue 3,767,776 3,530,000 3,488,191 3,267,980 3,160,000 Sales Tax Revenue 1,775,500 1,512,824 1,450,520 1,374,427 1,414,800 Mixed Beverage Tax Revenue 3,400 3,212 ‐ 3,000 ‐ TOTAL TAX REVENUE 5,546,676 5,046,036 4,938,711 4,645,407 4,574,800 FRANCHISE FEES Cable Franchise Fees 180,000 180,000 180,000 179,485 220,000 Electricity Franchise Fees 420,000 422,395 405,000 386,702 405,000 Solid Waste Franchise Fees 190,500 190,308 190,000 188,576 190,000 Natural Gas Franchise Fees 16,000 17,600 12,500 12,266 16,000 Telecommunication Franchise Fees 58,000 58,200 53,000 53,125 55,000 Water Franchise Fees 140,000 140,000 140,000 135,000 135,000 Wastewater Franchise Fees 130,000 130,000 130,000 125,000 125,000 TOTAL FRANCHISE REVENUE 1,134,500 1,138,503 1,110,500 1,080,154 1,146,000 PUBLIC SAFETY FINES & FEES Public Safety Fines & Fees 210,500 210,500 210,500 183,952 290,000 Warrant Revenue 25,000 25,000 25,000 25,000 25,000 Juvenile Case Management 10,000 10,000 10,000 10,000 10,000 TOTAL PUBLIC SAFETY FINES 245,500 245,500 245,500 218,952 325,000 INTERGOVERNMENTAL Utility Fund Administration 230,000 230,000 230,000 200,000 200,000 UF Payment in Lieu of Taxes 40,000 40,000 40,000 40,000 40,000 TOTAL INTERGOVERNMENTAL 270,000 270,000 270,000 240,000 240,000 GRANT REVENUE Library Grant Revenue 5,000 5,000 10,000 5,050 10,000 Community Development Grant ‐ ‐ ‐ 15,000 ‐ TOTAL GRANT REVENUE 5,000 5,000 10,000 20,050 10,000 PERMITS & FEES Permit Revenue 100,000 100,000 100,000 100,132 100,000 TOTAL PERMIT REVENUE 100,000 100,000 100,000 100,132 100,000 OTHER REVENUE Interest Revenue 20,000 16,000 16,000 15,902 16,000 Event Center Revenue 5,000 12,500 12,500 12,890 15,000 Library Fines & Fees Revenue 10,500 10,350 10,000 10,362 10,000 Donations to Library 500 200 ‐ ‐ ‐ Police Records Revenue 6,000 4,700 6,000 23,241 6,000 SRO Reimbursement 112,760 106,000 106,000 ‐ ‐ Donations to Canine Program 500 500 ‐ 2,915 Park Rental Revenue 12,000 12,000 12,000 10,696 12,000 Pcard Rebate Revenue 45,000 68,138 32,000 30,226 ‐ Miscellaneous Revenue 3,000 3,000 30,000 51,868 30,000 TOTAL OTHER REVENUE 215,260 233,388 224,500 158,100 89,000 TOTAL REVENUE BY TYPE 7,516,936 7,038,427 6,899,211 6,462,795 6,484,800

DO IT IN HEWITT 129 GENERAL FUND REVENUE ASSUMPTIONS FY 14/15

AD VALOREM TAX REVENUE ‐ $3,767,776

Total projected revenues for the General Fund in FY 2014‐2015 are $7,516,936 as compared to $6,899,211 budgeted for FY 2013‐2014, an increase in budgets of $617,725 or 9%.

Please see the following tables for revenue presentation for the Current Budget

General Fund Revenue Changes FY 14/15 General Fund Revenue, $7.5 mil Prior Year Budget to Current Year Budget Other Revenue $ Change % Change Public Safety Permit Revenue Most discussion 3% Ad Valorem Tax 279,585 8% Fines 1% concerning General 3% Sales Tax 328,380 23% Fund revenue starts Franchise Fees with Ad Valorem taxes. Franchise Fees 24,000 2% 16% Tax revenue comprises Public Safety Fines ‐ 0% Ad Valorem Tax 51.5% of the total 52% Intergovernmental ‐ 0% Sales Tax revenue supporting the Grant Revenue (5,000) ‐50% 25% General Fund. Permit Revenue ‐ 0% Other Revenue (9,240) ‐4% $ 617,725 9%

Ad Valorem Tax Revenue for fiscal year 14‐15 is budgeted at $3,767,776. The ad valorem tax rate if proposed to remain the same at .539677. This is due to the increase in Taxable Value of 7.87% resulting in an increase in taxable Revenue of 8.48%. (see Table at below).

1.00 0.80 0.80 Tax Rate History‐ from 1978 thru 2013 (Homestead rates are 80% of the rate listed here) 0.60 0.60 0.51 0.51 0.54 0.46 0.50 0.50 0.50 0.50 0.46 0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.50 0.50 0.38 0.39 0.37 0.39 0.39 0.42 0.31 0.31 0.33 0.32 0.32 0.34 0.35 0.36 0.35

0.00

The city of Hewitt is notably unique in being one of the few cities in the State to give the full 20% property tax exemption to residential homeowners, referred to in Texas as the Homestead Exemption. Here is a chart of the 2013 tax rates comparing tax rates in other cities in the county and in the two school districts to Hewitt’s tax rate. Please note that with the 20% homestead exemption the true tax rate for Hewitt residents is .43, not .54 cents per hundred, a true bargain for homeowners.

Comparison of Local Tax Rates ‐Rates per $100 of Taxable Value‐ 1.62 2.00 1.32 1.50 0.78 0.46 0.47 0.50 0.54 0.56 0.58 0.60 1.00 0.30 0.30 0.35 0.43 0.50 0.00

Here is a little history on our Tax Value, Tax Rate, and the split between I&S (debt service) and M&O (maintenance & operations) rates. Note: The I&S and M&O rates together make up the Total Tax Rate. Please note that the % for I&S has dropped from a high of .27 in 2005 to the current .17 in 2014. Over the last 10 year, Taxable Value has increased by an average of 5%. Over the same period of time Tax Rates have increased only .55. For more information on how that debt is being used, please see the section on Bonded Debt.

Taxable Ad Valorem Tax History %% TOTAL TAX RATE SPLIT BETWEEN I&S AND M&O Appraised Increase Increase Tax Year Value* Tax Rate I&S M&O Tax Levy In T.A.V. in Levy 0.6 2005 468,433,357 0.4842 0.273672 0.210528 2,268,154 0.00% 0.00% 0.4 2006 510,983,546 0.4842 0.207793 0.276407 2,474,182 9.08% 9.08% 2007 543,331,484 0.4842 0.194210 0.289990 2,630,811 6.33% 6.33% 0.2 2008 586,104,667 0.4842 0.188594 0.295606 2,835,654 7.87% 7.79% 2009 600,940,253 0.4842 0.156625 0.327575 2.53% 0.00% 0 2,835,654 2010 597,371,347 0.499828 0.139771 0.360057 -0.59% 5.43% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2,989,574 2011 611,280,929 0.514977 0.156060 0.358917 3,147,956 2.33% 5.30% I&S M&O 2012 635,605,994 0.514977 0.151495 0.363482 3,275,310 3.98% 4.05% 2013 657,795,390 0.539677 0.153700 0.385977 3,530,134 3.49% 7.78% 2014 706,087,100 0.539677 0.179631 0.360046 3,810,590 7.34% 7.94% * source: McLennan County Tax Assessor

In 2004, the city council approved moving from a volunteer fire department to a paid fire department. While building the full time, 24/7 fire team, the city held down any tax increases. After several years of trimming as much in the other departments as possible without losing vital services, tax rates has been moderately increased.

DO IT IN HEWITT 130 General Fund Revenue Assumptions (continued)

This chart presents much of the same information as the table on the prior page. However, this table, and the following charts, concentrate on presenting the ratio of exempt property to taxable property here in Hewitt.

History of Tax Values and % Taxable/Exempt

This chart tracks the Total Market Value of Values in 000s % of Taxable % of Exempt Net Value Value the city’s tax rolls Fiscal Tax Personal Exempt Taxable Tax to Total to Total from 2005 thru 2014. Year Year Real Property Property Total Taxable Property Value Rate Value Value Also presented are 2005 2004 474,543 38,158 512,701 84,699 428,002 0.48420 83.5% 16.5% the Taxable and 2006 2005 513,916 44,932 558,848 90,415 468,433 0.48420 83.8% 16.2% 2007 2006 562,363 46,795 609,158 98,174 510,984 0.48420 83.9% 16.1% Exempt Values. 2008 2007 599,035 49,963 648,998 105,667 543,331 0.48420 83.7% 16.3% Please note that the 2009 2008 648,818 53,736 702,554 116,449 586,105 0.48420 83.4% 16.6% City’s % of Taxable to 2010 2009 676,374 51,180 727,554 126,614 600,940 0.48420 82.6% 17.4% Exempt value is 2011 2010 689,989 46,514 736,503 139,132 597,371 0.499828 81.1% 18.9% 2012 2011 708,550 47,905 756,455 145,174 611,281 0.514977 80.8% 19.2% approx. 80/20. 2013 2012 741,434 44,943 786,377 150,771 635,606 0.514977 80.8% 19.2% 2014 2013 761,728 49,251 810,979 153,184 657,795 0.539677 81.1% 18.9% 2015 2014 827,966 52,160 880,126 174,039 706,087 0.539677 80.2% 19.8% Source: McLennan County Appraisal District.

Taxable & Exempt Values HISTORY OF TAX VALUES ‐ TOTAL, EXEMPT & TAXABLE

as a % of Total Value

Total Taxable Exempt Property Net Taxable Value

1

880,126

0.8

810,979 0.6 786,377

756,455 736,503

0.4 727,554

706,087 702,554

657,795

0.2 648,998

635,606 611,281 609,158 600,940

597,371 0 586,105 558,848 543,331

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 512,701 510,984 468,433

% of Taxable Value 0 0 % of Exempt Value 0 0 428,002

174,039 153,184 150,771 145,174 139,132 126,614 116,449 105,667 98,174 90,415 84,699

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Sales Tax Revenue ‐ $1,778,900 Sales tax revenue accounts for 22% of General Fund Revenue for the City of Hewitt. The State of Texas authorizes municipalities to collect a 1.5% sales tax for general operating purposes. The City of Hewitt pledged .5% of the 1.5% sales tax toward the reduction of ad valorem (property) taxes. Sales tax revenues are projected using a multi‐year trend analysis.

SALES TAX REVENUE BUDGETED VS ACTUAL (in 000s)

2000 1579 1497 1500 1450 1332 1415 1377 1318 1311 1350 1250 1250 1000 1292 1248 1117 1238

500

0 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15

Franchise Fees – Total $1,134,500 (see following notes on franchise fees) Utility companies that use the City's streets and rights‐of‐way in the course of conducting their business pay fees to the City. Fees are paid by these companies as a percent of their gross receipts collected from their customers within the City of Hewitt or other methods provided by State law. All assumptions are based on trend analysis.

Cable Franchise ‐ $180,000 Franchise fee of 5% is based on the gross receipts of the cable companies. The Texas Utilities Code allows an additional 1%. In prior years this additional 1% was budgeted as revenue. For FY 13‐14 these revenues have been set aside for as PEG funds, Public Educational and Governmental funds. Estimated revenue is based on trend analysis.

Electric Franchise ‐ $420,000 Franchise fee is based on kwh (kilowatt hours) used and a factor agreed upon by Oncor Electric Delivery Company and the Atmos Steering Committee of Cities. The factor for the FY 13/14 year is .003060 per kwh, unchanged from FY 11/12. Estimated revenue is based on trend analysis.

Solid Waste Franchise ‐ $190,500 FY revenue is budgeted at $190,000. In FY 10/11 the city determined that one way to save funds was to cut down on dumpster loads being picked up by the third party solid waste contractor. The dumpsters loads were decreased by changing the Monday thru Friday drop‐offs of trash and brush by citizens to twice a month drop offs on Saturday. Estimated revenue is based on trend analysis.

Natural Gas Franchise ‐ $16,000 Franchise fee of 5% is based on the gross revenue of the natural gas companies. Historically, usage does not vary much as there are not many gas lines within the city at this time. Estimated revenue is based on trend analysis. DO IT IN HEWITT 131 Telecommunications Franchise ‐ $58,000 Automatic increase based on CPI (consumer price index). Franchise fee based on $.66 per residential line and $2.20 per business line as reported by land line phone companies. The use of land line phones is decreasing and a conservative approach was used to estimate revenue. (The city receives sales tax on cell phones with a Hewitt billing address.) Estimated revenue is based on trend analysis.

Water Franchise Fee ‐ $140,000 Based on an approximate 4% of water revenue collected by the Utilities Fund. Water revenue is determined by prior year audited financials.

Wastewater Franchise Fee ‐ $130,000 Based on an approximate 4% of wastewater revenue collected by the Utilities Fund. Wastewater revenue is determined by prior year audited financials.

Public Safety Fines & Fees ‐ $235,500

Court fines and fees are levied by the Municipal Judge for violations of State laws and City ordinances. The State also levies fees on these fines, which are collected by the City and remitted to the State. The City is allowed to retain a percentage of State fees as an administrative fee for collecting and processing the fees. Court fines and fees are projected using multi‐year trend analysis with ticket level and collection activity taken into account. Estimated revenue is based on trend analysis and discussions with the Chief of Police.

Administrative Fee ‐ $230,000 Based on an approximate 3% of revenue collected by the Utilities Fund. Revenue is determined by prior year audited financials.

Payment in Lieu of Taxes ‐ $40,000 Based on the approximate equivalent property tax on real estate utilized by the Utilities Fund.

Grant Revenue ‐ $5,000 Based on the annual $5,000 Library grant from McLennan County and a $5,000 Texas State Library Edge grant.

Permit Revenue ‐ $100,000 Building permits cover electrical, plumbing and all other permits. These revenue streams are elastic in nature and are directly related to the level of construction activity in the community. Budgeted permit revenue has been estimated at $100,000 due to an increase in the city’s permit fees and steady activity in construction. Estimated revenue is based on trend analysis.

Interest Income ‐ $20,000 Interest income is projected using a cash flow analysis to estimate investable cash balances. In accordance with the City’s Investment Policy the City will invest all idle cash in order to maximize earnings. Interest income is determined by cash analysis, interest rate assumptions and capital outlay projections.

SRO Reimbursement ‐ $112,760 The City of Hewitt Police Department participates in an interlocal program which they have developed with the Midway School District. This revenue is the school's reimbursement for two School Resource Officers who work the 4 schools within the city limits and the intermediate and high school adjacent to the city limits. This is the 2nd year for the SRO Program.

Purchase Card Rebate ‐ $45,000

The City of Hewitt participates in a purchase card program thru JPChase where, at the end of the contract period and based on the individual city's Pcard activity and the Activity of the Pool of Pcardholders as a whole, the Rebate for the city is determined. For FY 12/13 it was $30,226 and for FY 13/14, $68,138.

DO IT IN HEWITT 132

GENERAL FUND – EXPENDITURES DETAILED EXPENDITURES BY DEPARTMENT

DO IT IN HEWITT 133 GENERAL FUND BUDGET SUMMARY by Department FY 14/15

FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 BUDGET ESTIMATE BUDGET ACTUAL BUDGET BEGINNING FUND BALANCE $ 2,137,140 $ 2,026,670 $ 2,026,670 $ 1,893,404 $ 1,893,404 REVENUE AD VALOREM TAXES 3,767,776 3,591,241 3,488,191 3,267,980 3,160,000 SALES TAX REVENUE 1,778,900 1,545,897 1,450,520 1,377,427 1,414,800 CABLE FRANCHISE FEE 180,000 179,584 180,000 179,485 220,000 ELECTRICITY FRANCHISE FEE 420,000 426,163 405,000 386,702 405,000 SOLID WASTE FRANCHISE FEE 190,500 190,485 190,000 188,576 190,000 NATURAL GAS FRANCHISE FEE 16,000 17,594 12,500 12,266 16,000 TELECOMMUNICATIONS FRN 58,000 51,563 53,000 53,125 55,000 WATER FRANCHISE 140,000 140,000 140,000 135,000 135,000 SEWER FRANCHISE 130,000 130,000 130,000 125,000 125,000 PUBLIC SAFETY FINES & FEES 235,500 230,705 235,500 208,952 315,000 BUILDING REVENUE 100,000 71,419 100,000 100,132 100,000 INTEREST REVENUE 20,000 73,847 16,000 15,902 16,000 W&S ADMIN FEE 230,000 230,000 230,000 200,000 200,000 W&S PAYT IN LIEU OF TAX 40,000 40,000 40,000 40,000 40,000 COMMUNITY CENTER REV 5,000 16,392 12,500 12,890 15,000 LIBRARY FINES & FEES 10,500 11,087 10,000 10,362 10,000 POLICE RECORDS REVENUE 6,000 4,843 6,000 23,241 6,000 MISD REIMBURSEMENT 112,760 105,967 106,000 ‐ ‐ POLICE REVENUE 500 550 ‐ 2,915 ‐ PARK REVENUE 12,000 13,005 12,000 10,696 12,000 PCARD REBATE 45,000 68,138 32,000 30,226 ‐ MISCELLANEOUS REVENUE 3,000 12,095 30,000 51,868 30,000 DONATIONS‐LIBRARY PROGRAMS 500 ‐ ‐ ‐ ‐ LIBRARY GRANTS 5,000 10,000 10,000 5,050 10,000 COMMUNITY DEV GRANT ‐ ‐ ‐ 15,000 ‐ JUVENILE CASE MGNT 10,000 10,000 10,000 10,000 10,000 TOTAL REVENUE 7,516,936 7,170,575 6,899,211 6,462,795 6,484,800 FUNDS AVAILABLE $ 9,654,076 $ 9,197,245 $ 8,925,881 $ 8,356,199 $ 8,378,204

EXPENDITURES POLICE DEPARTMENT $ 2,401,765 $ 2,305,742 $ 2,299,020 $ 2,085,460 $ 2,191,250 COMMNITY SERVICS 585,921 584,822 591,710 570,774 679,206 FIRE DEPARTMENT 1,028,352 1,033,200 984,573 878,789 848,597 MUNICIPAL LIBRARY 471,133 379,082 361,247 311,219 327,883 ADMINISTRATION 756,074 830,958 618,734 625,425 570,826 COMMUNITY DEVELOPMENT 355,813 306,439 406,552 380,844 389,988 FINANCE 326,811 241,188 246,960 200,162 203,576 MUNICIPAL COURT 157,393 151,636 150,334 139,297 151,179 HR/CIVIL SERVICE 161,488 134,274 149,157 133,791 158,618 DEBT SERVICE 1,267,729 1,092,764 1,087,752 1,003,768 962,636 TOTAL EXPENDITURES $ 7,512,479 $ 7,060,105 $ 6,896,039 $ 6,329,529 $ 6,483,759 NET INCOME (LOSS) 4,457 110,470 3,172 133,266 1,041 FUND BALANCE BEFORE RESERVE 2,141,597 2,137,140 2,029,842 2,026,670 1,894,445 LESS: 3 MONTH RESERVE* (1,878,120) (1,765,026) (1,724,010) (1,620,940) (1,620,940) LESS: ADDITIONAL RESERVES (200,000) (166,598) (166,598) ‐ ‐

ENDING FUND BALANCE $ 63,477 $ 205,516 $ 139,234 $ 405,730 $ 273,505

* 3 months of budgeted expenses

DO IT IN HEWITT 134 GENERAL FUND EXPENDITURES 3 Year Comparison of Actual, Estimated & Budgeted FY 14/15

Total Actual FY 12/13 PD CS FD LB AD CD FI CT HR LTD TOTAL Total Personnel 1,720,842 337,299 815,147 222,734 398,487 253,426 145,988 107,014 86,971 ‐ 4,087,906 Total Supplies 93,343 36,988 28,604 14,533 8,053 15,680 3,323 1,866 150 ‐ 202,541 Total Maintenance 12,779 113,405 11,638 1,015 24,613 22,882 ‐ ‐ ‐ ‐ 186,332 Total Services 136,205 80,483 23,400 32,500 192,368 80,905 50,330 30,418 46,670 ‐ 673,279 Total Capital Outlay 122,291 2,598 ‐ 40,438 1,904 7,950 522 ‐ ‐ ‐ 175,703 Total LT Debt ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,003,768 1,003,768 Total Expenditures 2,085,460 570,773 878,789 311,219 625,425 380,844 200,163 139,297 133,791 1,003,768 6,329,529

Total Estimated FY 13/14 PD CS FD LB AD CD FI CT HR LTD TOTAL Total Personnel 1,838,659 322,169 898,082 262,478 383,008 190,144 157,668 112,821 97,089 ‐ 4,262,118 Total Supplies 122,000 34,318 45,949 22,035 11,038 12,226 3,552 1,885 691 ‐ 253,694 Total Maintenance 57,193 133,053 54,293 1,036 295 12,248 ‐ ‐ ‐ ‐ 258,118 Total Services 161,056 90,757 30,976 34,847 434,817 89,356 78,759 36,930 36,494 ‐ 993,992 Total Capital Outlay 126,833 4,525 3,900 58,686 1,800 2,465 1,210 ‐ ‐ ‐ 199,419 Total LT Debt ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,092,764 1,092,764 Total Expenditures 2,305,741 584,822 1,033,200 379,082 830,958 306,439 241,189 151,636 134,274 1,092,764 7,060,105

Total Budget FY 14/15 PD CS FD LB AD CD FI CT HR LTD TOTAL Total Personnel 2,012,656 371,021 940,397 263,283 464,874 229,863 234,606 120,893 106,238 ‐ 4,743,831 Total Supplies 169,119 22,200 40,200 15,500 13,500 22,250 3,400 2,200 350 ‐ 288,719 Total Maintenance 19,700 93,000 16,500 2,000 1,500 26,200 ‐ ‐ ‐ ‐ 158,900 Total Services 184,690 99,700 31,255 136,850 274,200 75,500 88,805 33,300 54,900 ‐ 979,200 Total Capital Outlay 15,600 ‐ ‐ 53,500 2,000 2,000 ‐ 1,000 ‐ ‐ 74,100 Total LT Debt ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 1,267,729 1,267,729 Total Expenditures 2,401,765 585,921 1,028,352 471,133 756,074 355,813 326,811 157,393 161,488 1,267,729 7,512,479

Three Year Comparison ‐ by Department 3,000,000 2,500,000 Total Actual FY 12/13 2,000,000 Total Budget FY 14/15 Total Personnel 1,500,000 1,000,000 16% Total Supplies Total Personnel 500,000 1% 17% 3% 13% Total ‐ Total Supplies 11% Maintenance 64% Total Services PD CS FD LB AD CD FI CT HR LTD 63% 3% 2% Total Maintenance 4% 3% Actual 12/13 Estimated 13/14 Budget 14/15 Total Capital Total Services Outlay Total LT Debt Total Estimated FY 13/14

15% Total Personnel 3% Total Supplies

60% Total 14% Maintenance Total Services 4% 4% Total Capital Outlay

DO IT IN HEWITT 135

POLICE DEPARTMENT

DO IT IN HEWITT 136 Chief of Police

Deputy Chief of Police

Patrol Patrol Lieutenant Lieutenant

Code Animal CID Records OPR Dispatch Sergeant Sergeant Sergeant Sergeant Enforcement Control Sergeant Supervisor Sergeant Supervisor

Officer Officer Detective Chaplain Officer Officer Dispatcher

Civilian Officer Officer Detective Officer Officer Dispatcher Volunteer

Civilian Officer Dispatcher Volunteer

Reserve Dispatcher Officer

Reserve Dispatcher Officer

Part Time Dispatcher

DO IT IN HEWITT 137

Unit Goals in Relation to Overall City Goals

The Hewitt Police Department’s Goals uphold the City’s Overall Goal #4”

“Ensure that local residents and businesses feel safe and secure from crime and injury and have trust and shared responsibility for maintaining a safe environment.”

More specifically, Goal 4 Objectives are:

Obj 4.1 “Ensure that there is sufficient police and fire protection for safety for current residents, and ensure that the City remains aware of necessary increases in staff and/or related resources (e.g. police care, fire engines, etc) to enable such protection for future residents.”

The City Council, upon request from the Police Chief, approved the purchase of replacement vehicles and equipment.

Obj. 4.2 “Define standards for adequate response/service levels for public services and facilities, such as the following: 1) Municipal government 2) police and fire protection 3) recreational opportunities 4) utilities/infrastructure and solid waste management.”

Please see Performance Measures.

Obj. 4.3 “Ensure that the community is prepared to respond to emergencies, natural disasters, catastrophic acts and other events that threaten the health and safety of the public. Continue to review Standard Operations Guidelines.”

Please see Accomplishments, .ie. Disaster Drills conducted in accordance with Homeland Security oversight.

DO IT IN HEWITT 138 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 POLICE DEPARTMENT

MISSION The City of Hewitt Police Department serves and protects the community through the enforcement of federal and state law, as well as municipal ordinances. The department consists of the Administration, Criminal Investigation, Patrol, Communications, Animal Control and Records Divisions. The Hewitt Police Department, a community oriented policing agency, employs (21) sworn officers, DESCRIPTION OF DEPARTMENT  Proactive response to crime.  Traffic enforcement.  Case investigations.  Enforcement of City Ordinances.  Participates jointly with citizens in crime prevention activities.  Provides continuous up to date training for employees.  Cooperates with adjoining cities and law enforcement agencies.  Promotes courteous, professional demeanor towards the public.  Promotes a professional work environment.

GOALS  Maintain the City of Hewitt’s Index Crime Rate (per 100,000) at or below the previous year’s rate.  Maintain or improve on the previous year’s percentage of Index Crimes Cleared.  Increase citizen participation in crime prevention activities.  Increase department participation in crime prevention activities.  Maintain a positive work atmosphere.

PERFORMANCE MEASURES To quantifiably demonstrate progress goals and objectives, the following performance measures will be monitored for FY 2014-2015:  Maintain the City of Hewitt’s Index Crime Rate (per 100,000), as reported by the Department of Public Safety Uniform Crime Reporting Data, at or lower than the previous year’s rate.  Maintain the City of Hewitt’s Index Crimes Percent Cleared Rate, as reported by the Department of Public Safety Uniform Crime Reporting Data, at or lower than the previous year’s rate.

Uniform Crime Report Offenses Index Crime Rate (per 100,000)

157 1023.3 154 1123.7 156 1113.3

2013 2012 2011 2013 2012 2011

ACCOMPLISHMENTS  Data provided by the Texas Department of Public Safety Uniform Crime Report shows the City of Hewitt’s Number of Uniform Crime Report Offenses decreased from 157 in 2012 to 143 in 2013.  Data provided by the Texas Department of Public Safety Uniform Crime Report shows the City of Hewitt’s Index Crime Rate (per 100,000) decreased from 1123.7 in 2012 to 1023.3 in 2013.  Data provided by the Texas Department of Public Safety Uniform Crime Report shows the City of Hewitt’s Index Crime Percent Cleared Rate increased from 32% in 2012 to 34% in 2013.  Organized and assisted in community events including National Night Out, Neighborhood Watch, Guns and Hoses Softball Tournament and Hewitt Dog Days of Summer.

DO IT IN HEWITT 139 POLICE DEPARTMENT SUMMARY

The Police department is comprised of 6 divisions: Capital Outlay, FY 14‐15 Budget 1. Administration Maintenance,Services, 142,911 41,860 19,200 2. Patrol 3. Criminal Investigation Supplies, 135,254 4. Communications 5. Animal Control Personnel, 6. Code Enforcement 1,959,795

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimated Budget Actual Budget Personnel 2,012,656 1,801,268 1,959,795 1,720,842 1,768,877 Supplies 169,119 117,424 135,254 93,343 148,000 Maintenance 19,700 11,016 19,200 12,779 19,250 Services 184,690 159,666 142,911 136,205 139,743 Capital Outlay 15,600 28,371 41,860 122,291 115,380 Total 2,401,765 2,117,744 2,299,020 2,085,460 2,191,250

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Positions* Budget Budget Number Number Number Chief of Police 1 1 1 1 1 Deputy Chief* 11112 Records Administrator 1 1 1 1 1 Corporal* 4 4 4 4 4 Sergeant* 44444 Patrol Officer* 13 13 11 11 11 Dispatch Supervisor 1 1 1 1 1 Dispatcher 6.5 6.5 6.5 6 6 Animal Control Officer 1 1 1 1 1 Code Enforcement Officer 1 1 1 1 0 Full Time Equivalent Employees 33.5 33.5 31.5 31 31 Volunteer Office Help 11111 Volunteer Reserve Officer 1 1 1 1 1 Total 35.5 35.5 33.5 33 33

* denotes Chapter 143 Uniformed Officers; please note that this is not the official record of the positions in the police department

DO IT IN HEWITT 140 GENERAL FUND POLICE DEPARTMENT FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET AT 9‐30‐14 AT 3‐31‐14 BUDGET ACTUAL BUDGET 50100 SALARIES ‐ REGULAR $ 1,427,653.00 $ 1,288,386.00 $ 633,426.01 $ 1,393,068.25 $ 1,185,509.06 1,252,314.00 50105 SALARIES ‐ OVERTIME 16,900.00 73,954.00 35,154.35 16,900.00 60,165.60 15,200.00 50110 SALARIES ‐ PART TIME 10,122.00 7,538.00 3,844.90 14,210.00 5,218.06 ‐ 50120 SOCIAL SECURITY 111,284.00 98,880.00 48,997.57 108,949.63 92,491.39 96,965.00 50125 TX MUNI RETIREMENT 221,197.00 195,766.00 96,203.21 211,988.93 180,246.51 186,198.00 50130 EMPLOYEE INSURANCE 194,700.00 145,579.00 67,904.79 184,998.00 140,223.20 158,100.00 50135 PRE‐EMPLOYMENT EXP 2,750.00 2,387.00 2,018.58 2,750.00 2,050.96 1,300.00 50140 UNEMPLOYMENT INS 1,200.00 ‐ ‐ 1,200.00 1,727.50 2,000.00 50145 WORKER'S COMP INS 26,850.00 26,169.00 13,084.38 25,730.00 24,937.16 26,800.00 50150 SICK LEAVE ACCRUAL ‐ ‐ ‐ ‐ 28,272.50 30,000.00 $ 2,012,656.00 $ 1,838,659.00 $ 900,633.79 $ 1,959,794.81 $ 1,720,841.94 $ 1,768,877.00 50200 CASE INVESTIGATION 13,500.00 5,933.00 703.53 3,000.00 771.34 2,500.00 50215 FUEL 90,000.00 70,223.00 28,672.77 84,000.00 63,613.37 83,000.00 50225 CANINE PROGRAM 4,174.00 2,278.00 405.26 ‐ ‐ 50230 OFFICE SUPPLIES 10,250.00 4,664.00 2,555.74 10,350.00 3,714.84 11,000.00 50235 EQUIPMENT & SUPPLIES 35,299.00 26,198.00 22,892.24 28,404.00 17,011.05 42,000.00 50245 UNIFORM PURCHASE 15,896.00 12,704.00 8,500.05 9,500.00 8,232.49 9,500.00 $ 169,119.00 $ 122,000.00 $ 63,729.59 $ 135,254.00 $ 93,343.09 $ 148,000.00 50300 BUILDING MAINTENANCE 4,000.00 47,924.00 1,034.96 4,000.00 2,997.07 3,500.00 50350 VEHICLE MAINTENANCE 15,700.00 9,269.00 4,974.50 15,200.00 9,781.71 15,750.00 $ 19,700.00 $ 57,193.00 $ 6,009.46 $ 19,200.00 $ 12,778.78 $ 19,250.00 50401 ANIMAL CONTROL 25,917.00 7,600.00 3,925.00 15,500.00 11,034.48 10,500.00 50404 DUES & SUBSCRIPTIONS 8,827.00 2,483.00 1,224.92 8,277.00 2,618.04 8,577.00 50406 ELECTRIC SERVICE 20,000.00 11,010.00 5,948.70 17,500.00 8,886.95 17,500.00 50408 SERVICE CONTRACTS 78,230.00 78,790.00 44,106.38 53,098.00 67,842.65 59,972.00 50414 NATURAL GAS SERVICE 200.00 986.00 617.17 600.00 588.75 600.00 50420 TELECOMMUNICATION 15,666.00 14,732.00 7,414.40 14,386.00 12,980.95 12,594.00 50421 TRAVEL AND TRAINING 28,200.00 39,280.00 18,701.35 26,100.00 27,306.81 24,000.00 50422 UNIFORM CLEANING 7,650.00 6,175.00 3,300.69 7,450.00 4,946.64 6,000.00 $ 184,690.00 $ 161,056.00 $ 85,238.61 $ 142,911.00 $ 136,205.27 $ 139,743.00 50610 OFFICE EQUIPMENT 5,600.00 9,928.00 ‐ 6,900.00 4,057.58 6,000.00 50615 OTHER EQUIPMENT 10,000.00 112,282.00 24,034.53 34,960.00 44,136.16 9,380.00 50635 VEHICLES ‐ 4,623.00 109,168.00 ‐ 74,097.05 100,000.00 $ 15,600.00 $ 126,833.00 $ 133,202.53 $ 41,860.00 $ 122,290.79 $ 115,380.00 $ 2,401,765.00 $ 2,305,741.00 $ 1,188,813.98 $ 2,299,019.81 $ 2,085,459.87 $ 2,191,250.00 To be Financed: VEHICLES 101,742.83 RECAP: 1 POLICE DEPT ‐ ADMINISTRATIO 404,664.00 488,663.00 301,275.78 352,820.22 327,529.84 358,658.00 2 POLICE DEPT ‐ PATROL 1,272,744.00 1,163,714.00 565,797.37 1,238,178.77 1,073,291.61 1,181,347.00 3 POLICE DEPT ‐ CID 261,775.00 255,597.00 127,686.69 237,720.95 304,153.65 234,875.00 4 POLICE DEPT ‐ COMMUNICATIO 317,848.00 286,730.00 141,025.31 344,625.18 272,605.70 302,803.00 5 POLICE DEPT ‐ ANIMAL CONTRO 80,539.00 55,964.00 26,410.65 67,054.94 56,062.16 58,848.00 6 POLICE DEPT‐CODE ENFORCEM 64,195.00 55,073.00 26,618.18 58,619.75 51,816.91 54,719.00 2,401,765.00 2,305,741.00 1,188,813.98 2,299,019.81 2,085,459.87 2,191,250.00

DO IT IN HEWITT 141

POLICE DEPARTMENT ‐Adminstration

DO IT IN HEWITT 142 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 POLICE DEPARTMENT ‐ ADMINISTRATION

MISSION The Administration Section provides oversight and direction to the department’s Criminal Investigation, Patrol, Communications, Animal Control and Records Divisions. The Administrative Section is responsible for budget, grant, and personnel management; policy development; as well as emergency management and inter-agency coordination in order to best serve and protect the community through the enforcement of federal and state law, as well as municipal ordinances.

DESCRIPTION OF DEPARTMENT  Oversees all sections of the police department.  Prepares and administers the police department budget requests through the fiscal year.  Research and apply for grant opportunities  Participates in the selection and hiring of department personnel.  Develops and updates department policies to prevent future city liability.  Ensures all state mandated and other training needed is provided for all sections of the police department.  Takes internal complaints from citizens and department personnel and follows through with whatever type investigation is required.  Develops strategic long-term and short-term goals designed to attain optimal service to the community.

GOALS  Develop a budget requiring no more than a 20% increase in requested funding.  Maintain or increase the number of grants utilized for personnel, equipment and/or supplies.  Increase, improve, and continue training for all sections of the department in order to ensure 100% TCLEOSE compliance.

PERFORMANCE MEASURES  Budget comparison with previous years’ budgets.  Grant review.

6,000 Total Grants & Donations 4,000

2,000

‐ Bullet Proof Vests National Night Out Canine Program Grant Program 2013 2014

ACCOMPLISHMENTS  Developed budget proposal for Fiscal Year 2014-2015 that is a 8% increase from the Police Budget for the Fiscal Year 2013- 2014.  Applied for (1) grant for the amount of $4197 through the Bullet Proof Vest Program for the 2014 vest grant cycle in order to obtain and replace old bullet proof vests as needed.  Applied for (1) grant for the Fiscal Year 2013-2014 through the Wal Mart Foundation for $1000 and was awarded $500.00. Grant is for the department’s Community Police Services, i.e. National Night Out, Neighborhood Watch Program and other Crime Prevention services.  Ensured department personnel received mandatory NIMS training in order to maintain eligibility for Federal grants.  Continued with numerous training programs within the department, and new training required by TCOLE.

DO IT IN HEWITT 143 ADMINISTRATION SUMMARY

The Police department is comprised of 6 divisions: FY 14‐15 Budget Capital Outlay, 1. Administration Services, Personnel, 2,000 2. Patrol 100,183 283,106 3. Criminal Investigation Maintenance, 5,700 4. Dispatch 5. Animal Control Supplies, 13,675 6. Code Enforcement

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimate Budget Actual Budget Personnel 283,106 260,249 265,569 219,659 254,535 Supplies 13,675 10,173 8,000 13,054 8,115 Maintenance 5,700 3,365 5,200 3,582 5,200 Services 100,183 87,199 71,251 82,312 87,233 Capital Outlay 2,000 1,500 2,800 8,923 3,575 Total 404,664 362,486 352,820 327,530 358,658

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position Budget FTE Positions FTE Positions FTE Positions FTE Positions Chief of Police 11111 Deputy Chief 11110 Records Administrator 11111 Total 33332

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position Budget Estimate Actual Actual Actual In Service Training Hours 550 500 451 250 255 Preparation for Instruction 5050605075

DO IT IN HEWITT 144 GENERAL FUND POLICE DEPARTMENT ‐ ADMINISTRATION FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET at 9‐30‐14 at 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐41‐01 SALARIES ‐ ADMINISTRATION$ 210,854.00 $ 198,457.00 $ 98,473.85 199,956.11 $ 160,876.30 $ 188,790.00 10‐50105‐41‐01 SALARIES ‐ OT ‐ 194.00 76.92 ‐ ‐ ‐ 10‐50110‐41‐01 SALARIES ‐ PT 2,122.00 2,180.00 800.30 ‐ 395.45 ‐ 10‐50120‐41‐01 SOCIAL SECURITY 16,293.00 15,092.00 7,465.19 15,296.64 12,123.24 14,442.00 10‐50125‐41‐01 TMRS 32,287.00 29,577.00 14,632.09 29,763.47 23,718.24 27,733.00 10‐50130‐41‐01 EMPLOYEE INSURANCE 17,700.00 15,678.00 7,510.50 16,818.00 13,812.29 15,300.00 10‐50135‐41‐01 PRE‐EMPLOYMENT EXP 250.00 ‐ ‐ 250.00 689.00 350.00 10‐50140‐41‐01 UNEMPLOYMENT INS 1,200.00 ‐ ‐ 1,200.00 485.00 2,000.00 10‐50145‐41‐01 WORKERS COMP 2,400.00 2,331.00 1,165.50 2,285.00 2,224.78 100.00 10‐50150‐41‐01 SICK LEAVE ACCRUAL ‐ ‐ ‐ ‐ 5,335.00 5,820.00 $ 283,106.00 $ 263,509.00 $ 130,124.35 $ 265,569.22 $ 219,659.30 $ 254,535.00 10‐50215‐41‐01 FUEL 5,000.00 3,821.00 1,772.51 4,000.00 3,247.15 3,500.00 10‐50230‐41‐01 OFFICE SUPPLIES 2,575.00 2,590.00 406.85 3,000.00 1,894.72 3,110.00 10‐50235‐41‐01 OTHER EQUIP & SUPPLIES 5,500.00 2,929.00 1,510.62 500.00 7,712.71 880.00 10‐50245‐41‐01 UNIFORM PURCHASE 600.00 681.00 400.00 500.00 199.47 625.00 $ 13,675.00 $ 10,021.00 $ 4,089.98 $ 8,000.00 $ 13,054.05 $ 8,115.00 10‐50300‐41‐01 BUILDING MAINTENANCE 4,000.00 47,924.00 1,034.96 4,000.00 2,997.07 3,500.00 10‐50350‐41‐01 VEHICLE MAINTENANCE 1,700.00 338.00 166.38 1,200.00 584.48 1,700.00 $ 5,700.00 $ 48,262.00 $ 1,201.34 $ 5,200.00 $ 3,581.55 $ 5,200.00 10‐50404‐41‐01 DUES AND SUBSCRIPTIONS 3,775.00 1,829.00 818.97 3,475.00 470.00 3,475.00 10‐50406‐41‐01 ELECTRIC SERVICE 20,000.00 11,010.00 5,948.70 17,500.00 8,886.95 17,500.00 10‐50408‐41‐01 SERVICE CONTRACTS 60,658.00 60,498.00 33,636.38 35,826.00 54,188.15 52,900.00 10‐50414‐41‐01 NATURAL GAS SERVICE 200.00 986.00 617.17 600.00 588.75 600.00 10‐50420‐41‐01 TELECOMMUNICATION 3,500.00 3,057.00 1,542.12 3,000.00 3,339.77 1,908.00 10‐50421‐41‐01 TRAVEL AND TRAINING 9,800.00 11,085.00 5,776.74 8,600.00 14,338.25 8,600.00 10‐50422‐41‐01 UNIFORM CLEANING 2,250.00 827.00 430.75 2,250.00 500.00 2,250.00 $ 100,183.00 $ 89,292.00 $ 48,770.83 $ 71,251.00 $ 82,311.87 $ 87,233.00 10‐50610‐41‐01 OFFICE EQUIPMENT ‐ 2,130.00 ‐ 2,000.00 3,179.25 2,775.00 10‐50615‐41‐01 OTHER EQUIPMENT 2,000.00 75,016.00 7,921.28 800.00 5,743.82 800.00 10‐50635‐41‐01 VEHICLES ‐ 433.00 109,168.00 ‐ ‐ ‐ $ 2,000.00 $ 77,579.00 $ 117,089.28 $ 2,800.00 $ 8,923.07 $ 3,575.00 $ 404,664.00 $ 488,663.00 $ 301,275.78 $ 352,820.22 $ 327,529.84 $ 358,658.00

DO IT IN HEWITT 145

POLICE DEPARTMENT ‐Patrol

DO IT IN HEWITT 146 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 POLICE DEPARTMENT ‐ PATROL

MISSION The Patrol Division is responsible for responding to routine and emergency calls for service, enforcing traffic laws, investigating traffic accidents, and enforcing all other state and federal laws and municipal ordinances.

DESCRIPTION OF DEPARTMENT  Investigates traffic accidents and issues citations for traffic related and Class C Offenses in order to gain compliance.  Answers 911 calls for assistance, other dispatched calls, and initiates calls.  Performs first responder duties during emergency and disaster calls.  Takes initial reports and conducts preliminary investigations on Theft, Sexual Assault, Burglary etc.  Patrols neighborhoods and initiates community policing programs.  Intervenes in family violence cases, educates battered spouses/children on where to get assistance.  Enforces DWI and other alcohol related laws and arrests offenders.

GOALS  Encourage voluntary compliance of traffic laws through enforcement and public education to reduce and prevent traffic accidents.  Increase the number of DWI’s arrested by 5% to ensure safer streets.  Increase the amount of fines paid during Warrant Roundup.  Ensure 100% compliance on TCOLE mandated training.

PERFORMANCE MEASURES  Number of DWI’s for the first 6 months of 2014 as compared to the first six months of 2013.  Number of Arrests for the first 6 months of 2014 as compared to the first six months of 2013.  Amount of fines paid during Warrant Roundup for 2014 as compared to 2013.  Number of Citations given for the first 6 months of 2014 as compared to the first six months of 2013.

TOTAL DWIs 2011 TOTAL ARRESTS 2011 100 2012 400 2012

50 2013 200 2013 195 59 158 210 259 26 26 2014 2014 0 15 0

ACCOMPLISHMENTS  Total number of DWI’s increased 127% for the first 6 months of 2014 as compared to the first six months of 2013.  Total number of Arrests for the first 6 months of 2014 was a 23% increase over the first six months of 2013.  Total amount of fines collected during Warrant Roundup in 2014 was 23% more than in 2013.  Total number of Citations for the first 6 months of 2014 was a 66% decrease as compared to the first six months of 2013.

WARRANT ROUND UP COLLECTIONS 2011 TOTAL CITATIONS 2011 50000 2012 4000 2012

2013 2000 2513 2013 21124.8 25981 31534 38843 2793 2014 945 2014 0 0 892

DO IT IN HEWITT 147 PATROL SUMMARY

The Police department is comprised of 6 divisions: 1. Administration Capital Outlay, FY 14‐15 Budget Services, 21,886 6,000 2. Patrol Maintenance, 9,000 3. Criminal Investigation Supplies, 4. Dispatch 104,804 5. Animal Control

6. Code Enforcement Personnel, 1,131,054

Expenditure Summary ‐ Patrol FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimate Budget Actual Budget Personnel 1,131,054 968,651 1,094,679 896,069 941,534 Supplies 104,804 79,808 90,304 57,005 104,855 Maintenance 9,000 5,851 9,000 8,554 9,050 Services 21,886 26,452 21,886 14,711 19,988 Capital Outlay 6,000 23,281 22,310 96,954 105,920 Total 1,272,744 1,104,043 1,238,179 1,073,292 1,181,347

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Deputy Chief 00001 Lieutenant 00000 Sergeants 33333 Corporals 33333 Police Officers 12 12 10 10 9 Total 1818161616

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position Budget Estimated Actual Actual Actual Warrant Round Up Collection 40,000 38,843 31,534 25,981 21,125 Citations Issued 1,200 945 2,793 892 2,513 Disturbance Calls 35 59 26 15 26 Accidents 230 259 210 158 195

DO IT IN HEWITT 148 GENERAL FUND POLICE DEPARTMENT ‐ PATROL FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET at 9‐30‐14 at 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐41‐02 SALARIES ‐ PATROL $ 804,797.00 $ 691,213.00 $ 335,655.57 782,769.47 $ 604,387.33 $ 662,252.00 10‐50105‐41‐02 OVERTIME ‐ PATROL 12,000.00 46,462.00 20,850.99 12,000.00 42,398.47 11,300.00 10‐50120‐41‐02 SOCIAL SECURITY 62,485.00 55,128.00 26,630.02 60,799.86 48,447.33 51,527.00 10‐50125‐41‐02 TMRS 125,072.00 110,290.00 52,956.00 118,301.44 95,018.21 98,945.00 10‐50130‐41‐02 EMPLOYEE INSURANCE 106,200.00 82,830.00 37,254.35 100,908.00 72,027.16 81,600.00 10‐50135‐41‐02 PRE‐EMPLOYMENT EXP 1,500.00 1,661.00 1,597.96 1,500.00 1,039.53 650.00 10‐50140‐41‐02 UNEMPLOYMENT INS ‐ ‐ ‐ ‐ 1,242.50 ‐ 10‐50145‐41‐02 WORKERS COMP 19,000.00 18,761.00 9,380.64 18,400.00 17,840.60 20,350.00 10‐50150‐41‐02 SICK LEAVE ACCRUAL ‐ ‐ 13,667.50 14,910.00 $ 1,131,054.00 $ 1,006,345.00 $ 484,325.53 $ 1,094,678.77 $ 896,068.63 $ 941,534.00 10‐50215‐41‐02 FUEL 65,000.00 51,210.00 20,971.67 61,000.00 45,991.08 61,000.00 10‐50225‐41‐02 CANINE PROGRAM 4,174.00 2,278.00 405.26 ‐ ‐ ‐ 10‐50230‐41‐02 OFFICE SUPPLIES 2,800.00 406.00 986.34 2,500.00 298.97 2,800.00 10‐50235‐41‐02 OTHER EQUIP & SUPPLIES 20,604.00 20,073.00 19,578.22 20,604.00 4,165.96 34,900.00 10‐50245‐41‐02 UNIFORM PURCHASE 12,226.00 10,641.00 7,424.73 6,200.00 6,548.53 6,155.00 $ 104,804.00 $ 84,608.00 $ 49,366.22 $ 90,304.00 $ 57,004.54 $ 104,855.00 10‐50350‐41‐02 VEHICLE MAINTENANCE 9,000.00 7,711.00 4,132.52 9,000.00 8,553.65 9,050.00 $ 9,000.00 $ 7,711.00 $ 4,132.52 $ 9,000.00 $ 8,553.65 $ 9,050.00 10‐50404‐41‐02 DUES AND SUBSCRIPTIONS 500.00 422.00 209.95 500.00 ‐ 500.00 10‐50408‐41‐02 SERVICE CONTRACTS 2,000.00 4,172.00 350.00 2,000.00 ‐ 2,000.00 10‐50420‐41‐02 TELECOMMUNICATION 8,686.00 8,561.00 4,356.82 8,686.00 7,171.53 7,538.00 10‐50421‐41‐02 TRAVEL AND TRAINING 8,500.00 17,774.00 5,691.03 8,500.00 5,135.17 7,750.00 10‐50422‐41‐02 UNIFORM CLEANING 2,200.00 3,288.00 1,775.00 2,200.00 2,404.00 2,200.00 $ 21,886.00 $ 34,217.00 $ 12,382.80 $ 21,886.00 $ 14,710.70 $ 19,988.00 10‐50610‐41‐02 OFFICE EQUIPMENT 500.00 2,840.00 ‐ 500.00 30.00 600.00 10‐50615‐41‐02 OTHER EQUIPMENT 5,500.00 23,803.00 15,590.30 21,810.00 22,827.04 5,320.00 10‐50635‐41‐02 VEHICLES ‐ 4,190.00 ‐ ‐ 74,097.05 100,000.00 $ 6,000.00 $ 30,833.00 $ 15,590.30 $ 22,310.00 $ 96,954.09 $ 105,920.00 $ 1,272,744.00 $ 1,163,714.00 $ 565,797.37 $ 1,238,178.77 $ 1,073,291.61 $ 1,181,347.00

DO IT IN HEWITT 149

POLICE DEPARTMENT ‐Criminal Investigation Division

DO IT IN HEWITT 150 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 POLICE DEPARTMENT ‐ CRIMINAL INVESTIGATION DIVISION

MISSION The Criminal Investigation Division (C.I.D.) is responsible for conducting follow up investigations on all criminal cases received, and initiated by the department, providing training to all officers on crime scene techniques, lifting fingerprints, taking photographs etc., and is responsible for the securing and controlling of all evidence collected by officers of the department. C.I.D. oversees and provides assistance to the Community Police Officer in the performance of crime prevention duties, i.e. Neighborhood Watch, National Night Out, etc.. All duties are performed in order to best serve and protect the community through the enforcement of federal and state law, as well as municipal ordinances.

DESCRIPTION OF DEPARTMENT  Investigates child/elder abuse cases, both referred by the Department of Human Services, and officer initiated.  Works closely with the District Attorney’s office in the prosecution of criminal cases.  Assists other law enforcement agencies on cases where the suspects and method of crime are the same.  Conducts follow up investigation on cases.  Testifies in all courts; Municipal, County, District, and Grand Jury.  Accepts all recovered property, enters each piece into a data base and keeps all property stored and ready for trial or return to the owner.  Oversees Community Policing program.  Assists in crime prevention services by providing crime prevention information and participating in public speaking engagements. GOALS  Improve the National Night Out competition ranking from previous year.  Ensure complainant contact on case investigations.  Ensure 100% of the officers are trained in Crime Scene Investigation, Interview and Interrogation, and Police Photography training.

PERFORMANCE MEASURES  Number of cases investigated from January to June 2014 as compared to the number cases investigated from January to June 2013.  Number of Burglary cases for the first 6 months of 2014 as compared to the first 6 months of 2013.  Number of Sex Offense cases for the first 6 months of 2014 as compared to the first 6 months of 2013.  Number of Theft cases for the first 6 months of 2013 as compared to the first 6 months of 2014.  Hewitt’s National Night Out Ranking as compared to previous years’ ranking.

ACCOMPLISHMENTS  The Department had a 16% increase in the number cases investigated from January to June of 2014 as compared to January to June of 2013.  The Criminal Investigation Division investigated 36% of the Cases Reported in the first six months of 2013 as compared to 36% of the first six months of 2014. th st  Participated in National Night Out event and ranked 16 in Nation and 1 in the State of Texas for 2013 for cities with population under 15,000, as compared to 7th in the Nation and 1nd in the State of Texas in 2011.  The number of Burglary cases for the first 6 months of 2014 were 18 more than the first 6 months of 2013.  The number of Sex Offense cases for the first 6 months of 2014 were 9 more than the first 6 months of 2013.  The number of Theft cases for the first 6 months of 2014 were 10 more han the first 6 months of 2013.

DO IT IN HEWITT 151 CRIMINAL INVESTIGATIONS SUMMARY

The Police department is comprised of 6 divisions: FY 14‐15 Budget 1. Administration Capital Outlay, Services, 12,352 2,800 2. Patrol Maintenance, 3. Criminal Investigation 2,000

4. Dispatch Supplies, 5. Animal Control 34,895 6. Code Enforcement Personnel, 209,728

Expenditure Summary ‐CID FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FYy 12‐13 Classification Budget Estimate Budget Actual Budget Personnel 209,728 225,574 190,019 268,229 200,180 Supplies 34,895 16,921 21,950 14,029 19,985 Maintenance 2,000 800 2,000 478 2,000 Services 12,352 13,451 11,602 8,312 10,350 Capital Outlay 2,800 533 12,150 13,105 2,360 Total 261,775 257,279 237,721 304,154 234,875

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Deputy Chief* 00001 Lieutenant 00000 Sergeant 11111 Corporal 11111 Police Officer 11112 Total 33335 *moved to Administration in FY 11‐12

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position Budget Estimate Actual Actual Actual Cases Reported 500 533 460 100 100 Cases Investigated 100 86 168 195 195

DO IT IN HEWITT 152 GENERAL FUND CRIMINAL INVESTIGATIONS DIVISION FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET at 9‐30‐14 at 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐41‐03 SALARIES ‐ CID $ 151,118.00 $ 152,556.00 $ 82,299.33 $ 136,451.02 $ 186,524.39 $ 138,781.00 10‐50105‐41‐03 OVERTIME ‐ CID 2,000.00 5,103.00 1,979.74 2,000.00 5,800.27 1,000.00 10‐50120‐41‐03 SOCIAL SECURITY 11,714.00 11,824.00 6,339.79 10,591.50 14,493.21 10,693.00 10‐50125‐41‐03 TMRS 23,446.00 23,056.00 12,100.82 20,608.43 28,239.76 20,536.00 10‐50130‐41‐03 EMPLOYEE INSURANCE 17,700.00 15,932.00 8,407.60 16,818.00 20,620.87 15,300.00 10‐50135‐41‐03 PRE‐EMPLOYMENT EXP 250.00 ‐ ‐ 250.00 104.00 100.00 10‐50140‐41‐03 UNEMPLOYMENT INS ‐ ‐ ‐ ‐ ‐ ‐ 10‐50145‐41‐03 WORKERS COMP 3,500.00 3,320.00 1,659.66 3,300.00 3,176.76 4,500.00 10‐50150‐41‐03 DO NOT USE ‐ ‐ ‐ ‐ 9,270.00 9,270.00 $ 209,728.00 $ 211,791.00 $ 112,786.94 $ 190,018.95 $ 268,229.26 $ 200,180.00 10‐50200‐41‐03 CASE INVESTIGATION 13,500.00 5,933.00 703.53 3,000.00 771.34 2,500.00 10‐50215‐41‐03 FUEL 12,000.00 9,523.00 3,384.79 11,000.00 8,249.07 11,000.00 10‐50230‐41‐03 OFFICE SUPPLIES 1,700.00 592.00 351.51 1,600.00 1,098.47 1,590.00 10‐50235‐41‐03 OTHER EQUIP & SUPPLIES 7,045.00 2,782.00 1,642.69 5,500.00 3,711.03 4,495.00 10‐50245‐41‐03 UNIFORM PURCHASE 650.00 537.00 343.77 850.00 198.78 400.00 $ 34,895.00 $ 19,367.00 $ 6,426.29 $ 21,950.00 $ 14,028.69 $ 19,985.00 10‐50350‐41‐03 VEHICLE MAINTENANCE 2,000.00 676.00 675.60 2,000.00 478.26 2,000.00 $ 2,000.00 $ 676.00 $ 675.60 $ 2,000.00 $ 478.26 $ 2,000.00 10‐50404‐41‐03 DUES & SUBSCRIPTIONS 4,002.00 90.00 90.00 3,752.00 2,128.04 3,752.00 10‐50408‐41‐03 SERVICE CONTRACTS 450.00 ‐ ‐ 450.00 12.50 450.00 10‐50420‐41‐03 TELECOMMUNICATION 700.00 714.00 303.54 700.00 550.68 1,148.00 10‐50421‐41‐03 TRAVEL AND TRAINING 5,000.00 8,261.00 6,257.93 4,500.00 4,281.35 4,250.00 10‐50422‐41‐03 UNIFORM CLEANING 2,200.00 1,235.00 623.44 2,200.00 1,339.89 750.00 $ 12,352.00 $ 10,300.00 $ 7,274.91 $ 11,602.00 $ 8,312.46 $ 10,350.00 10‐50610‐41‐03 OFFICE EQUIPMENT 800.00 2,130.00 ‐ 800.00 79.99 700.00 10‐50615‐41‐03 OTHER EQUIPMENT 2,000.00 11,333.00 522.95 11,350.00 13,024.99 1,660.00 $ 2,800.00 $ 13,463.00 $ 522.95 $ 12,150.00 $ 13,104.98 $ 2,360.00 $ 261,775.00 $ 255,597.00 $ 127,686.69 $ 237,720.95 $ 304,153.65 $ 234,875.00

DO IT IN HEWITT 153

POLICE DEPARTMENT ‐Communications

DO IT IN HEWITT 154 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 POLICE DEPARTMENT ‐ COMMUNICATIONS

MISSION Operate police communication equipment, radios, computers, and telephone. Ensure Hewitt police officers are safe and get assistance to anyone that needs help. Dispatch fire, rescue, ambulance, Code Enforcement and Animal Control Officer services.

DESCRIPTION  Greet the public in person, and on the phone at the police department.  Answer 9-1-1 calls and direct emergency services (police, fire, rescue) to the proper location.  Checks violator registration, drivers’ licenses, wanted status through TCIC/NCIC.  Enters information (warrant data bank, runaway/missing person), stolen property into CAD system.  Ensures officer safety through monitoring radio information and time out at each call.

GOALS  Meet capabilities to handle volume of 911 calls.  Develop updated policies and procedures.  Ensure 100% of Communication Specialists are trained in emergency services.  Deliver quality services to the citizens of Hewitt.

PERFORMANCE MEASURES  Number of Calls for Service in the first 6 months of 2014 as compared to the number of 911 Calls in the first 6 months of 2013.

 Percentage of 911 Calls in the first 6 months of 2013 as compared to the number of 911 Calls in 2012.  Maintain 20 hours of in-service training for all communications personnel.  Number of CAD Events handled per city department by the Communication Section.

Total Calls for Service 911 Calls

2015

PD 2014 2014 Fire 2013 Other 2013 0 1000 2000 3000

0 2000 4000 6000 8000 10000 12000 Total 911 Calls

ACCOMPLISHMENTS  Number of Calls for Service for the first 6 months of 2014 was 1950 higher than the first 6 months of 2013.  Total of 911 Calls for the first 6 months of 2013 was 644 more than the number of 911 Calls in the first 6 months of 2014.

 Communications Section handled 9285 Calls for Service for the Police Department; 436 for the Fire Department; and 14 for Community Services in the first 6 months of 2013 as compared to 9240 Calls for Service for the Police Department, 385 for the Fire Department and 42 for Community Services in the first six months of 2014.  Developed updated policy and procedure manual.  The members of the Communication Section had a total of 72.5 for the first 6 months of 2013-2014 as compared to 103 for the first 6 months of 2012-2013.

DO IT IN HEWITT 155 COMMUNICATIONS SUMMARY

The Police department is comprised of 6 divisions: Services, Capital Outlay, FY 14‐15 Budget 18,062 3,000 1. Administration Supplies, 5,045 2. Patrol 3. Criminal Investigation 4. Communications 5. Animal Control Personnel, 6. Code Enforcement 291,741

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimate Budget Actual Budget Personnel 291,741 258,020 320,353 252,923 288,461 Supplies 5,045 3,300 4,650 2,097 5,295 Maintenance ‐ ‐ ‐ ‐ ‐ Services 18,062 16,465 17,122 16,632 7,122 Capital Outlay 3,000 2,408 2,500 954 1,925 Total 317,848 280,192 344,625 272,606 302,803

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Dispatch Supervisor 11111 Dispatchers 6.5 6.5 6 6 6 Total 7.57.5777

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position Budget Estimate Actual Actual Actual Calls for Service ‐ Police Police 10,000 9,940 8,046 16,811 18,897 Calls for Service ‐ Fire Fire 450 411 387 693 615 Calls for Service ‐ Other Other 45 42 10 42 64 10,495 10,393 8,443 17,546 19,576

911 Calls 2,200 2,172 2,770 817 502

DO IT IN HEWITT 156 GENERAL FUND COMMUNICATIONS FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET at 9‐30‐14 at 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐41‐04 SALARIES ‐ COMMUNICATIONS$ 193,132.00 $ 182,551.00 $ 85,388.02 $ 211,682.85 $ 174,672.56 $ 203,288.00 10‐50105‐41‐04 OVERTIME 2,500.00 21,121.00 11,769.11 2,500.00 10,161.95 2,500.00 10‐50110‐41‐04 PART TIME 8,000.00 5,358.00 3,044.60 14,210.00 5,218.06 ‐ 10‐50120‐41‐04 SOCIAL SECURITY 15,578.00 12,235.00 6,236.13 17,472.05 12,957.96 15,743.00 10‐50125‐41‐04 TMRS 29,956.00 23,212.00 11,750.32 33,996.28 24,388.16 30,230.00 10‐50130‐41‐04 EMPLOYEE INSURANCE 41,300.00 20,634.00 10,136.58 39,242.00 24,780.21 35,700.00 10‐50135‐41‐04 PRE‐EMPLOYMENT EXP 500.00 612.00 306.17 500.00 10.43 100.00 10‐50145‐41‐04 WORKERS COMP 775.00 758.00 379.08 750.00 733.27 900.00 $ 291,741.00 $ 266,481.00 $ 129,010.01 $ 320,353.18 $ 252,922.60 $ 288,461.00 10‐50230‐41‐04 OFFICE SUPPLIES 2,425.00 681.00 657.62 2,500.00 276.13 2,750.00 10‐50235‐41‐04 OTHER EQUIP & SUPPLIES 1,000.00 276.00 122.06 900.00 851.52 925.00 10‐50245‐41‐04 UNIFORM PURCHASE 1,620.00 255.00 254.56 1,250.00 969.41 1,620.00 $ 5,045.00 $ 1,212.00 $ 1,034.24 $ 4,650.00 $ 2,097.06 $ 5,295.00 10‐50404‐41‐04 DUES AND SUBSCRIPTIONS 200.00 36.00 ‐ 200.00 ‐ 500.00 10‐50408‐41‐04 SERVICE CONTRACTS 14,522.00 14,120.00 10,120.00 14,222.00 13,642.00 4,022.00 10‐50420‐41‐04 TELECOMMUNICATIONS 840.00 708.00 367.41 600.00 640.67 600.00 10‐50421‐41‐04 TRAVEL AND TRAINING 2,500.00 635.00 493.65 2,100.00 2,349.27 2,000.00 $ 18,062.00 $ 15,499.00 $ 10,981.06 $ 17,122.00 $ 16,631.94 $ 7,122.00 10‐50610‐41‐04 OFFICE EQUIPMENT 2,500.00 1,408.00 ‐ 1,500.00 768.34 925.00 10‐50615‐41‐04 OTHER EQUIPMENT 500.00 2,130.00 ‐ 1,000.00 185.76 1,000.00 $ 3,000.00 $ 3,538.00 $ ‐ $ 2,500.00 $ 954.10 $ 1,925.00 $ 317,848.00 $ 286,730.00 $ 141,025.31 $ 344,625.18 $ 272,605.70 $ 302,803.00

DO IT IN HEWITT 157

POLICE DEPARTMENT ‐Animal Control

DO IT IN HEWITT 158 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 POLICE DEPARTMENT ‐ ANIMAL CONTROL

MISSION The Animal Control Division is responsible for enforcing city ordinances on all types of animal/fowl violations in order to gain compliance and improve the quality of life within the city limits of Hewitt.

DESCRIPTION OF DEPARTMENT  Locates, picks up, and transports strays, and runaway animals to the animal shelter.  Investigates all reported animal bites and ensures proper quarantine procedures are followed.  Initiates, responds, and investigates reports of animal violations.  Keeps the proper paperwork and forwards as needed to state agencies.  Testifies in all courts; Municipal, County, District, and Grand Jury if needed.  Provides educational information via public speaking engagements to the citizens of Hewitt.

GOALS  Decrease the number of strays impounded in the first 6 months of 2014 as compared to the number of strays impounded in the first 6 months of 2013.  Increase the number of Animal Releases in the first 6 months of 2014 as compared to the number of strays impounded in the first 6 months of 2013.  Increase the number of Animal Calls in the first 6 months of 2014 as compared to the number of strays impounded in the first 6 months of 2013.  Attend classes on animal control and environmental enforcement.

PERFORMANCE MEASURES  Number of strays impounded comparison for the first 6 months of 2013 as compared to the first 6 months of 2014.  Number of Reclaims/Releases comparison for the first 6 months of 2013 as compared to the first 6 months of 2014.  Number of Animal Control Calls comparison for the first 6 months of 2013 as compared to the first 6 months of 2014.

Calls for Animal Control Impounds

1000 150 800 600 100 400 50 200 0 0 2013 2014 2013 2014

ACCOMPLISHMENTS  There were 59 less number of strays impounded for the first 6 months of 2014 as compared to the first 6 months of 2013.

 There were 165 less number of Animal Control calls for the first 6 months of 2014 as compared to the first 6 months of 2013.

 There were 10 less number of Reclaims/Releases for the first 6 months of 2014 as compared to the first 6 months of 2013.

DO IT IN HEWITT 159 ANIMAL CONTROL SUMMARY

The Police department is comprised of 6 divisions: Capital Outlay, FY 14‐15 Budget 1. Administration 1,300 2. Patrol Services, 28,507 3. Criminal Investigation 4. Dispatch Personnel, 43,932 Maintenance, 5. Animal Control 1,500 6. Code Enforcement Supplies, 5,300

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimate Budget Actual Budget Personnel 43,932 39,688 41,455 38,641 39,198 Supplies 5,300 3,922 4,950 5,093 4,700 Maintenance 1,500 500 1,500 15 1,500 Services 28,507 13,754 17,850 12,314 12,650 Capital Outlay 1,300 ‐ 1,300 ‐ 800 Total 80,539 57,864 67,055 56,062 58,848

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Animal Control Officer 11111 11111

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position Budget Estimate Actual Actual Actual Calls for Animal Control 800 738 903 1,025 1,450 Impounds 80 45 91 73 85

DO IT IN HEWITT 160 GENERAL FUND ANIMAL CONTROL FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 13‐14 FY 13‐14 ACCOUNT DESCRIPTION BUDGET at 9‐30‐14 at 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐41‐05 SALARIES ‐ ACO $ 29,977.00 $ 28,101.00 $ 14,016.10 $ 28,407.29 $ 26,845.95 $ 27,243.00 10‐50105‐41‐05 OVERTIME‐ACO 200.00 454.00 90.61 200.00 585.12 200.00 10‐50120‐41‐05 SOCIAL SECURITY 2,309.00 2,185.00 1,079.16 2,188.46 2,098.48 2,100.00 10‐50125‐41‐05 TMRS 4,621.00 4,252.00 2,094.41 4,258.19 4,030.03 4,030.00 10‐50130‐41‐05 EMPLOYEE INSURANCE 5,900.00 4,823.00 2,109.84 5,606.00 4,321.31 5,100.00 10‐50135‐41‐05 PRE‐EMPLOYMENT EXP 125.00 114.00 114.45 125.00 104.00 50.00 10‐50145‐41‐05 WORKERS COMP 800.00 679.00 339.30 670.00 655.73 475.00 $ 43,932.00 $ 40,608.00 $ 19,843.87 $ 41,454.94 $ 38,640.62 $ 39,198.00 10‐50215‐41‐05 FUEL 4,000.00 3,546.00 1,543.47 4,000.00 4,354.30 3,750.00 10‐50230‐41‐05 OFFICE SUPPLIES 250.00 266.00 151.50 250.00 146.55 250.00 10‐50235‐41‐05 OTHER EQUIP & SUPPLIES 650.00 138.00 38.65 400.00 433.59 400.00 10‐50245‐41‐05 UNIFORM PURCHASE 400.00 342.00 76.99 300.00 158.15 300.00 $ 5,300.00 $ 4,292.00 $ 1,810.61 $ 4,950.00 $ 5,092.59 $ 4,700.00 10‐50350‐41‐05 VEHICLE MAINTENANCE 1,500.00 544.00 ‐ 1,500.00 15.32 1,500.00 $ 1,500.00 $ 544.00 $ ‐ $ 1,500.00 $ 15.32 $ 1,500.00 10‐50401‐41‐05 ANIMAL CONTROL 25,917.00 7,600.00 3,925.00 15,500.00 11,034.48 10,500.00 10‐50404‐41‐05 DUES AND SUBSCRIPTIONS 150.00 ‐ ‐ 150.00 ‐ 150.00 10‐50408‐41‐05 SERVICE CONTRACTS 300.00 ‐ ‐ 300.00 ‐ 300.00 10‐50420‐41‐05 TELECOMMUNICATION 740.00 636.00 317.42 600.00 580.66 600.00 10‐50421‐41‐05 TRAVEL AND TRAINING 900.00 1,299.00 335.00 900.00 615.99 700.00 10‐50422‐41‐05 UNIFORM CLEANING 500.00 275.00 178.75 400.00 82.50 400.00 $ 28,507.00 $ 9,810.00 $ 4,756.17 $ 17,850.00 $ 12,313.63 $ 12,650.00 10‐50610‐41‐05 OFFICE EQUIPMENT 1,300.00 710.00 ‐ 1,300.00 ‐ 500.00 10‐50635‐41‐05 VEHICLES ‐ ‐ ‐ ‐ ‐ 300.00 $ 1,300.00 $ 710.00 $ ‐ $ 1,300.00 $ ‐ $ 800.00 $ 80,539.00 $ 55,964.00 $ 26,410.65 $ 67,054.94 $ 56,062.16 $ 58,848.00

DO IT IN HEWITT 161

POLICE DEPARTMENT ‐Code Enforcement

DO IT IN HEWITT 162 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 POLICE DEPARTMENT ‐ CODE ENFORCEMENT

MISSION The Code Enforcement Division is responsible for enforcing all city ordinances, developing current and best-practices ordinances, specifically relating to commercial and residential areas. Code enforcement attempts to gain compliance and improve the quality of life within the city limits of Hewitt.

DESCRIPTION OF DEPARTMENT  Investigates calls pertaining to code violations.  Maintains current Code Enforcement Officer Certification and continuing education courses.  Locates code violations and contacts the owners responsible for remedying the violations.  Assists the Building Department with suspected violations and code issues.  Maintains paperwork for prosecution / consultation on active and past cases.  Testifies in all courts; Municipal, County, District, and Grand Jury if needed.  Provides educational information via public speaking engagements to the citizens of Hewitt.

GOALS  Increase the number of Code Enforcement Calls in the first 6 months of 2013 as compared to the number of Code Enforcement Calls in the 6 months of 2014.  Increase the number of Trash/Rubbish Calls in the first 6 months of 2013 as compared to the number of Code Enforcement Calls in the 6 months of 2014.  Increase the number of Junk Motor Vehicle/Parking Calls in the last 6 months of 2013 as compared to the number of Code Enforcement Calls in the first 6 months of 2014.  Attend classes on Code Enforcement and environmental enforcement.

PERFORMANCE MEASURES  Comparison of Code Violation calls for the first 6 months of 2013 to the first 6 months of 2014.  Comparison of the number of Trash/Rubbish/Tall Grass and Weeds calls for the first 6 months of 2013 to the first 6 months of  Comparison of the number of Junk Motor Vehicle/Parking calls for the for the first 6 months of 2013 to the first 6 months of 2  Public Awareness campaign designed to reduce code violations for the calendar year 2014.

City Code Violations 1000 800 600 400 200 0 2013 2014 ACCOMPLISHMENTS  Code Violation calls in the year 2014 were 529 as compared to 821 in 2013, 292 less.  Trash/Rubbish/Tall Grass and Weeds calls in the year 2014 were 151 as compared to 422 in 2013, 271 less.  Junk Motor Vehicle/Parking calls were 79 in 2014 as compared to 57 in 2013, 22 more  Participated with a Code Enforcement information booth at the National Night Out Block Party and a class in the Citizens Police Academy.

DO IT IN HEWITT 163 CODE ENFORCEMENT SUMMARY

The Police department is comprised of 6 divisions: Capital Outlay, FY 14‐15 Budget 1. Administration Services, 3,200 800 2. Patrol Maintenance, 1,500 3. Criminal Investigation Supplies, 4. Dispatch 5,400

5. Animal Control Personnel, 6. Code Enforcement 47,720

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimate Budget Actual Budget Personnel 53,095 49,086 47,720 45,322 44,969 Supplies 5,400 3,300 5,400 2,066 5,050 Maintenance 1,500 500 1,500 150 1,500 Services 3,700 2,344 3,200 1,925 2,400 Capital Outlay 500 650 800 2,355 800 Total 64,195 55,880 58,620 51,817 54,719

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Code Enforcement Officer 11110 11110 * Code Enforcement Officer and budget included in Community Development prior to FY 11‐12

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Budget Estimate Actual Actual Actual Violations of City Ordinance 750 529 821 517 660 * Code Enforcement violations detail from Community Development prior to FY 11‐12

DO IT IN HEWITT 164 GENERAL FUND CODE ENFORCEMENT FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET at 9‐30‐14 at 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐41‐06 SALARIES ‐ CEO $ 37,775.00 $ 35,508.00 $ 17,593.14 $ 33,801.51 $ 32,202.53 $ 31,960.00 10‐50105‐41‐06 OVERTIME‐OT 200.00 620.00 386.98 200.00 824.34 200.00 10‐50120‐41‐06 SOCIAL SECURITY 2,905.00 2,416.00 1,247.28 2,601.12 2,371.17 2,460.00 10‐50125‐41‐06 TMRS 5,815.00 5,379.00 2,669.57 5,061.12 4,852.11 4,724.00 10‐50130‐41‐06 EMPLOYEE INSURANCE 5,900.00 5,682.00 2,485.92 5,606.00 4,661.36 5,100.00 10‐50135‐41‐06 PRE‐EMPLOYMENT EXP 125.00 ‐ ‐ 125.00 104.00 50.00 10‐50145‐41‐06 WORKERS COMP 375.00 320.00 160.20 325.00 306.02 475.00 $ 53,095.00 $ 49,925.00 $ 24,543.09 $ 47,719.75 $ 45,321.53 $ 44,969.00 10‐50215‐41‐06 FUEL 4,000.00 2,123.00 1,000.33 4,000.00 1,771.77 3,750.00 10‐50230‐41‐06 OFFICE SUPPLIES 500.00 129.00 1.92 500.00 ‐ 500.00 10‐50235‐41‐06 OTHER EQUIP & SUPPLIES 500.00 ‐ ‐ 500.00 136.24 400.00 10‐50245‐41‐06 UNIFORM PURCHASE 400.00 248.00 ‐ 400.00 158.15 400.00 $ 5,400.00 $ 2,500.00 $ 1,002.25 $ 5,400.00 $ 2,066.16 $ 5,050.00 10‐50315‐41‐06 PROPERTY MAINTENANCE ‐ ‐ ‐ ‐ 150.00 ‐ 10‐50350‐41‐06 VEHICLE MAINTENANCE 1,500.00 ‐ ‐ 1,500.00 ‐ 1,500.00 $ 1,500.00 $ ‐ $ ‐ $ 1,500.00 $ 150.00 $ 1,500.00 10‐50404‐41‐06 DUES AND SUBSCRIPTIONS 200.00 106.00 106.00 200.00 20.00 200.00 10‐50408‐41‐06 SERVICE CONTRACTS 300.00 ‐ ‐ 300.00 ‐ 300.00 10‐50420‐41‐06 TELECOMMUNICATION 1,200.00 1,056.00 527.09 800.00 697.64 800.00 10‐50421‐41‐06 TRAVEL AND TRAINING 1,500.00 226.00 147.00 1,500.00 586.78 700.00 10‐50422‐41‐06 UNIFORM CLEANING 500.00 550.00 292.75 400.00 620.25 400.00 $ 3,700.00 1,938.00 1,072.84 3,200.00 1,924.67 2,400.00 10‐50610‐41‐06 OFFICE EQUIPMENT 500.00 710.00 ‐ 800.00 ‐ 500.00 10‐50615‐41‐06 OTHER EQUIPMENT ‐ ‐ ‐ ‐ 2,354.55 300.00 $ 500.00 $ 710.00 $ ‐ $ 800.00 $ 2,354.55 $ 800.00 $ 64,195.00 $ 55,073.00 $ 26,618.18 $ 58,619.75 $ 51,816.91 $ 54,719.00

DO IT IN HEWITT 165

COMMUNITY SERVICES DEPARTMENT

DO IT IN HEWITT 166 City of Hewitt Functional Structure

General Fund ‐ Community Services

City Manager

Assistant City Manager

Public Works Supervisor

Equipment Motor Field Operators Mechanic Assistants (3) (2) (1)

DO IT IN HEWITT 167 Unit Goals in Relation to Overall City Goals

The Hewitt Community Service Department’s Goals uphold the City's Overall Goals #1 & #3

Community Services in the General Fund specifically applies to the preservation, upkeep and maintenance of the City’s Streets, Parks and Equipment.

More specifically, Goal #1 Objectives, as they apply to Streets, Parks and Equipment are:

Obj. 1.5: “Protect the investment in the public transportation system through preventive maintenance and ongoing rehabilitation of streets. Perform annual maintenance upgrades.”

Please see Workload/Demand Measure in Streets & Parks Summary.

Obj. 3.1 “Recognize the need for efficient and effective roadways.”

Active in planning Homeland Security emergency evacuations.

Obj. 3.2 “Investigate challenges related to roadways from high traffic or natural wear and tear on structure.”

Slurry seal and patching maintenance on streets; advising the City Manager on streets for which upgrades are needed.

DO IT IN HEWITT 168 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 COMMUNITY SERVICES‐STREETS & PARKS

MISSION Insert Picture Here The mission of the Community Service department is to continuously implement new ways in increasing efficiency, while balancing it with cost-effective measures. The services provided by our department, include, but are not limited, to the Transportation System and Park System. Our department utilizes its resource in maintaining the safety and beautification of the greater Hewitt area.

DESCRIPTION OF DEPARTMENT The Community Service department maintains the upkeep of the grounds of Hewitt. Its parks and streets are carefully planned in accordance with the guidelines of the city. Our department works on behalf of the interest of the residents through our constant giving and service. With the Hewitt area on a constant growth rate, the Community Service department never settles for less. It strives to provide the best and most suitable conditions for its residents.

The Community Service department constantly works to maintain their environmentally-friendly area. Each aspect that goes into the planning of the streets and parks are considered in appliance with the guidelines of the city. Through our constant giving and service, we strive to provide an environment in the best interests of its residents. As the growth rate of our community keeps growing, we never stop giving, bringing the value to your community.

GOALS  Replace outdated playground equipment in Warren Park  Install new sign at the entrance of Warren Park  Install telephone poles at # 5 basket at disk golf course  Increase the amount streets receiving micro paving by 25% for 2014  Build columns at Warren Park pavilion  Build cement barrier around kids play ground to keep wood chips in play area  Build bathroom facilities in back parking lot at Hewitt Park  Replacing street signs to the new Tx Dot Standards

ACCOMPLISHMENTS  3 Cross overs , creek at Hewitt Park  Fixed busted curbs  18 Hole disk golf course  New basketball court  Install new lights around track at Hewitt Park

DO IT IN HEWITT 169 COMMUNITY SERVICES

FY 14‐15 BUDGET Services, 99,700

Maintenance, 93,000 Personnel, 371,021 Supplies, 22,200

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimated Budget Actual Budget Personnel 371,021 313,614 348,310 337,299 394,806 Supplies 22,200 30,572 35,700 36,988 36,100 Maintenance 93,000 112,962 105,000 113,405 105,500 Services 99,700 98,509 96,700 80,483 108,000 Capital Outlay ‐ 1,582 6,000 2,598 34,800 Total 585,921 557,238 591,710 570,773 679,206

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Mechanic 11111 Public Works Supervisor 00111 Equipment Operator 22222 Field Assistant I 44444 Total 77888

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Actual Vehicles Serviced 100 100 100 100 100 Vehicles Repaired 48 60 58 75 75 Heavy Equipment Serviced 20 20 20 5 5 Heavy Equipment Repaired 225 25 25 7 7

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Actual Park Acreage Developed 5555555555 Park Acreage Undeveloped 5 5 5 5 5 Playgrounds 4 4 4 4 4 Mowing Hours 1300 1300 1100 900 900 Building Maintenance Hours 110 110 100 145 145

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Actual Utility Cuts Repaired 52 55 40 40 40 Traffic Signs Erected/Replaced 50 50 40 50 50 Street Signs Erected/Replaced 40 150 50 30 30

DO IT IN HEWITT 170 GENERAL FUND COMMUNITY SERVICES DEPARTMENT FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET AT 9‐30‐14 AT 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐50‐00 SALARIES‐COMM SRVCS $ 243,034.00 $ 210,168.00 $ 102,981.67 $ 222,463.23 $ 233,455.94 264,479.00 10‐50105‐50‐00 SALARIES ‐ OVERTIME 8,000.00 10,235.00 3,348.05 13,000.00 6,130.74 13,000.00 10‐50110‐50‐00 SALARIES ‐ PART TIME 12,000.00 11,055.00 ‐ 12,000.00 8,482.06 12,000.00 10‐50120‐50‐00 SOCIAL SECURITY 20,122.00 16,591.00 7,948.68 18,930.94 18,952.26 22,145.00 10‐50125‐50‐00 TMRS 38,440.00 33,462.00 16,447.25 35,048.70 35,159.46 40,762.00 10‐50130‐50‐00 EMPLOYEE INSURANCE 41,300.00 32,212.00 15,695.53 39,242.00 25,595.49 35,700.00 10‐50135‐50‐00 PRE‐EMPLOYMENT EXP 625.00 1,192.00 511.00 625.00 1,527.00 100.00 10‐50140‐50‐00 UNEMPLOYMENT INS 500.00 495.00 495.30 500.00 1,554.01 500.00 10‐50145‐50‐00 WORKERS COMP 7,000.00 6,759.00 3,379.44 6,500.00 6,441.57 6,120.00 $ 371,021.00 $ 322,169.00 $ 150,806.92 348,309.87 $ 337,298.53 $ 394,806.00 10‐50205‐50‐00 CHEMICALS 800.00 782.00 251.59 1,000.00 6,022.07 1,000.00 10‐50215‐50‐00 FUEL 18,000.00 20,462.00 6,528.91 21,000.00 16,353.93 22,000.00 10‐50220‐50‐00 JANITORIAL SUPPLIES 700.00 468.00 230.90 400.00 292.18 500.00 10‐50230‐50‐00 OFFICE SUPPLIES 500.00 284.00 204.18 300.00 510.48 600.00 10‐50235‐50‐00 OTHER EQUIP & SUPPLIES 1,200.00 12,322.00 7,088.05 12,000.00 13,809.79 12,000.00 10‐50245‐50‐00 UNIFORM PURCHASE 1,000.00 ‐ ‐ 1,000.00 ‐ ‐ $ 22,200.00 $ 34,318.00 $ 14,303.63 $ 35,700.00 $ 36,988.45 $ 36,100.00 10‐50300‐50‐00 BUILDING MAINTENANCE 3,000.00 2,664.00 1,416.52 3,000.00 5,101.98 3,000.00 10‐50320‐50‐00 PARK IMPROVEMENTS 7,500.00 47,825.00 21,290.43 12,000.00 21,945.70 7,500.00 10‐50330‐50‐00 PARK MAINTENANCE 7,500.00 7,570.00 1,528.27 5,000.00 3,500.87 10,000.00 10‐50340‐50‐00 STREET MAINTENANCE 65,000.00 64,176.00 21,641.95 75,000.00 63,989.40 75,000.00 10‐50350‐50‐00 VEHICLE MAINTENANCE 3,000.00 3,393.00 1,459.62 3,000.00 2,465.76 3,000.00 10‐50355‐50‐00 HEAVY EQUIPMENT MAINT 7,000.00 7,425.00 2,500.21 7,000.00 16,401.13 7,000.00 $ 93,000.00 $ 133,053.00 $ 49,837.00 $ 105,000.00 $ 113,404.84 $ 105,500.00 10‐50403‐50‐00 CONTINGENCY ‐ ‐ ‐ ‐ ‐ 700.00 10‐50404‐50‐00 DUES AND SUBSCRIPTIONS ‐ 10.00 (3.00) 200.00 181.52 300.00 10‐50406‐50‐00 ELECTRIC SERVICE 87,000.00 79,903.00 35,935.39 87,000.00 72,212.61 93,000.00 10‐50408‐50‐00 SERVICE CONTRACTS 2,000.00 1,740.00 733.40 ‐ 1,386.75 1,500.00 10‐50414‐50‐00 NATURAL GAS SERVICE 2,000.00 2,112.00 2,112.01 2,000.00 1,105.89 3,700.00 10‐50420‐50‐00 TELECOMMUNICATION 3,200.00 2,669.00 1,056.08 2,500.00 2,549.75 3,500.00 10‐50421‐50‐00 TRAVEL AND TRAINING 2,500.00 853.00 11.00 2,500.00 261.18 2,800.00 10‐50422‐50‐00 UNIFORM CLEANING 3,000.00 3,470.00 1,931.22 2,500.00 2,785.43 2,500.00 $ 99,700.00 $ 90,757.00 $ 41,776.10 $ 96,700.00 $ 80,483.13 $ 108,000.00 10‐50610‐50‐00 OFFICE EQUIPMENT ‐ 1,730.00 ‐ ‐ 54.40 800.00 10‐50615‐50‐00 OTHER EQUIPMENT ‐ 2,795.00 1,085.70 6,000.00 2,544.00 9,000.00 10‐50635‐50‐00 VEHICLES ‐ ‐ ‐ ‐ ‐ 25,000.00 $ ‐ $ 4,525.00 $ 1,085.70 $ 6,000.00 $ 2,598.40 $ 34,800.00 $ 585,921.00 $ 584,822.00 $ 257,809.35 $ 591,709.87 $ 570,773.35 $ 679,206.00

Equipment to be Financed: Shredder 7,000.00 Tractor 31,550.00

DO IT IN HEWITT 171

FIRE DEPARTMENT

DO IT IN HEWITT 172 City of Hewitt Functional Structure General Fund – Fire Department

DO IT IN HEWITT 173 Unit Goals in Relation to Overall City Goals

The Hewitt Fire Department’s Goals uphold the City’s Overall Goal #4”

“Ensure that local residents and businesses feel safe and secure from crime and injury and have trust and shared responsibility for maintaining a safe environment .”

More specifically, Goal #4 Objectives are:

Obj 4.1 “Ensure that there is sufficient police and fire protection for safety for current residents, and ensure that the City remains aware of necessary increases in staff and/or related resources (e.g. police care, fire engines, etc) to enable such protection for future

See Department Goals and Department Strategies

Obj. 4.2 “Define standards for adequate response/service levels for public services and facilities, such as the following: 1) Municipal government 2) police and fire protection 3) recreational opportunities 4) utilities/infrastructure and solid waste management.”

See Department Strategies

Obj. 4.3 “Ensure that the community is prepared to respond to emergencies, natural disasters, catastrophic acts and other events that threaten the health and safety of the public. Continue to review Standard Operations Guidelines.”

See Department Goals and Department Strategies

DO IT IN HEWITT 174 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 FIRE DEPARTMENT

MISSION Insert Picture Here The mission of the Hewitt Fire Department is to provide the highest quality protection to preserve lives and property of the citizens of Hewitt. Through training, education, fire prevention, innovative services, and respect for our citizens we will accomplish this mission. We strive to serve as positive role models through community involvement and activities.

DESCRIPTION OF DEPARTMENT  The Hewitt Fire Department consists of 15 career firefighters. The department operates out of one fire station 24 hours a day, seven days a week. On average, the department responds to over 800 calls per year that consist of structural fires, vehicle fires, grass / brush fires, motor vehicle collisions, vehicle extrication, hazardous materials incidents, and first response to medical emergencies.

GOALS  Assure firefighters are trained and skilled to perform at all emergency incidents through department training drills and other continuing education schools.  To implement the Incident Command System at all emergency incidents and training drills for incident organization and firefighter safety to prevent an injury or death.  Maintain all emergency vehicles and equipment to insure a high readiness level through daily and weekly inspections and maintenance.  Improve staffing requirements by requesting (1) additional Firefighters in FY 2014-2015.  Become more involved with the community and improve public relations.  Maintain review of Standard Operating Procedures for potential changes in command system, tactical guidelines, tactical plans and safety.  Work towards creating an effective emergency preparedness plan by coordinating projects and drills with Emergency Management and the Police Department.  Work towards lowering the ISO rating for the City Of Hewitt.

ACCOMPLISHMENTS  Improved response times for all emergencies to (5) minutes or less 24 hours a day 7 days a week.  Implemented (3) duty districts to schedule and complete hydrant inspections and servicing, fire inspections, pre-planning businesses and residential districts.  Improved apparatus and equipment maintenance.  Reviewed and changed the Standard Operating Procedures and Guidelines.  Provided necessary training resources to accomplish career firefighter certifications.  Lieutenants were enrolled and completed supervisor training.  Awarded (2) firefighters in the budget process  Lieutenants were enrolled and completed Fire Inspector classes.

DO IT IN HEWITT 175 FIRE DEPARTMENT

Services, Maintenance, 31,255 FY 14‐15 BUDGET 16,500 Supplies, 40,200

Personnel, 940,397 Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimated Budget Actual Budget Personnel 940,397 884,236 892,643 815,147 770,212 Supplies 40,200 38,532 39,500 28,604 34,600 Maintenance 16,500 13,400 13,400 11,638 12,500 Services 31,255 30,005 35,130 23,400 31,285 Capital Outlay ‐ ‐ 3,900 ‐ ‐ Total 1,028,352 966,172 984,573 878,789 848,597

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Fire Chief 11111 Fire Captain 00011 Firefighter/Lieutenant33333 Firefighter/EMT 11 11 9 9 9 Paid Staff 15 15 13 14 14 Volunteer 02255 Total 15 17 15 19 19

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Actual Structure Fires 1010685 Brush/Grass Fires 12 20 4 35 38 Vehicle Fires 57242 Other Fires 2025122024 Falsa Alarm 3025222021 Hazardous/Materials 20 25 25 20 22 Medical Emergency 550 500 419 325 336 Rescue 98223 Motor Vehicle Crash 6060645032 Service Call 95 100 117 90 88 Good Intent 50 50 63 40 37 Severe Weather 45011 Mutual Aid 12 15 7 12 20 Fire Safety Education 2015101010 Public Relations 3040101010 Fire Hydrant Maintenance 500 466 459 447 0 Fire Inspections 115 115 60 200 136 Fire Pre‐Plans 140 140 210 200 136 Fire Service Training Hours 2000 2000 1022 3000 1193 DO IT IN HEWITT 176 GENERAL FUND FIRE DEPARTMENT FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET AT 9‐30‐14 AT 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐56‐00 SALARIES ‐ FIRE DEPT $ 660,205.00 $ 634,059.00 $ 310,620.26 $ 627,776.87 $ 570,250.06 541,100.00 10‐50105‐56‐00 SALARIES ‐ OVERTIME 20,000.00 30,912.00 19,087.93 20,000.00 34,220.46 20,000.00 10‐50120‐56‐00 SOCIAL SECURITY 52,035.00 49,472.00 24,495.84 49,554.93 45,084.75 42,924.00 10‐50125‐56‐00 TMRS 104,157.00 99,012.00 48,957.50 96,421.59 88,805.15 79,488.00 10‐50130‐56‐00 EMPLOYEE INSURANCE 88,500.00 71,097.00 32,221.00 84,090.00 63,442.14 71,400.00 10‐50135‐56‐00 PRE‐EMPLOYMENT EXP 1,800.00 770.00 355.13 1,800.00 1,120.00 1,800.00 10‐50140‐56‐00 UNEMPLOYMENT INS 500.00 ‐ ‐ 500.00 ‐ 500.00 10‐50145‐56‐00 WORKERS COMP 13,200.00 12,760.00 6,380.10 12,500.00 12,224.25 13,000.00 $ 940,397.00 $ 898,082.00 $ 442,117.76 892,643.39 $ 815,146.81 $ 770,212.00 10‐50200‐56‐00 CASE INVSTGN/PRVTN 2,000.00 1,314.00 368.01 2,500.00 1,722.50 2,000.00 10‐50215‐56‐00 FUEL 11,000.00 14,589.00 6,413.59 12,000.00 12,878.15 9,600.00 10‐50225‐56‐00 MEDICAL SUPPLIES 2,200.00 2,555.00 1,812.42 2,000.00 997.78 2,000.00 10‐50230‐56‐00 OFFICE SUPPLIES 2,000.00 2,365.00 2,131.29 2,000.00 1,346.01 2,500.00 10‐50235‐56‐00 OTHER EQUIP & SUPPLIES 18,000.00 17,365.00 13,124.39 15,000.00 8,971.11 15,000.00 10‐50240‐56‐00 MISCELLANEOUS ‐ ‐ ‐ ‐ (526.64) ‐ 10‐50245‐56‐00 UNIFORM PURCHASES 5,000.00 7,761.00 113.06 6,000.00 3,215.32 3,500.00 $ 40,200.00 $ 45,949.00 $ 23,962.76 39,500.00 $ 28,604.23 $ 34,600.00 10‐50300‐56‐00 BUILDING MAINTENANCE 1,500.00 3,349.00 1,351.39 3,300.00 2,591.40 2,500.00 10‐50350‐56‐00 VEHICLE MAINTENANCE 15,000.00 50,944.00 5,509.84 10,100.00 9,046.73 10,000.00 $ 16,500.00 $ 54,293.00 $ 6,861.23 13,400.00 $ 11,638.13 $ 12,500.00 10‐50404‐56‐00 DUES AND SUBSCRIPTIONS 2,300.00 3,644.00 1,771.11 2,000.00 2,618.00 1,785.00 10‐50406‐56‐00 ELECTRIC SERVICE 5,625.00 4,920.00 2,651.33 4,500.00 3,419.08 4,500.00 10‐50408‐56‐00 SERVICE CONTRACTS 7,530.00 7,935.00 4,218.56 8,030.00 3,113.66 8,030.00 10‐50412‐56‐00 MISC PROFESSIONAL SERV ‐ ‐ ‐ ‐ ‐ 10‐50414‐56‐00 NATURAL GAS SERVICE 300.00 1,418.00 982.68 1,000.00 982.17 1,000.00 10‐50420‐56‐00 TELECOMMUNICATION 5,000.00 3,593.00 824.16 6,000.00 2,933.75 6,170.00 10‐50421‐56‐00 TRAVEL AND TRAINING 9,500.00 6,841.00 1,977.34 11,000.00 10,054.35 9,500.00 10‐50422‐56‐00 UNIFORM CLEANING 1,000.00 2,625.00 111.50 2,600.00 278.50 300.00 $ 31,255.00 $ 30,976.00 $ 12,536.68 35,130.00 $ 23,399.51 $ 31,285.00 10‐50615‐56‐00 OFFICE EQUIPMENT ‐ 3,900.00 ‐ 3,900.00 ‐ ‐ 10‐50635‐56‐00 VEHICLES ‐ ‐ 36,157.00 ‐ ‐ ‐ $ ‐ $ 3,900.00 $ 36,157.00 3,900.00 $ ‐ $ ‐ $ 1,028,352.00 $ 1,033,200.00 $ 521,635.43 $ 984,573.39 $ 878,788.68 $ 848,597.00

DO IT IN HEWITT 177

HEWITT PUBLIC LIBRARY

DO IT IN HEWITT 178 City of Hewitt Functional Structure

General Fund ‐ Library

City Manager

Library Director

Library Library Staff Helpers‐Part (3) Time (3)

DO IT IN HEWITT 179 Unit Goals in Relation to Overall City Goals

The Hewitt Public Library’s Goals uphold the City’s Overall Goal #7”

“ Foster a positive interaction with the public and encourage citizen involvement. Provide recreation opportunity for the population in Hewitt. ”

More specifically, Goal #7 Objectives are:

Obj 7.1 “ Provide timely and accurate public information via the city’s website. Improve awareness and understanding of City programs, services and issues and promote a positive public image of organization.”

Please see Description of Services .

Obj. 7.2 “ Make doing business with the City more user-friendly by offering services..”

Please see Description of Services .

Obj. 7.3 “Ensure that the public is made aware of opportunities for involvement in local City activities.

Please see Accomplishments and Goals.

Obj 7.4: “Recognize the importance of recycling and the public benefit of local programs related to recycling.”

One of the many monthly programs includes the importance and ways to recycle. More specifically, patrons will recycle their books by donating them to the library. Also, in May the Library conducts a well advertised and successful “Book Sale.”

Obj. 7.5: “Recognize the importance of providing activities and facilities that will meet the needs of local growing and active people, and establish ways in which the City can participate in the provision of recreational activities.

Please see Accomplishments, weekly preschool story time and annual summer program with professional entertainers.

DO IT IN HEWITT 180 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 HEWITT PUBLIC LIBRARY

MISSION

The mission of the Hewitt Public Library is to provide access to informational, educational, cultural and recreational library materials and services in a variety of formats and technologies and to be responsive to the public library needs of the community.

DESCRIPTION OF DEPARTMENT To be a major contributor to the recreational, intellectual, cultural growth and economic well-being of our community by:  Stimulating a love of reading and sense of discovery.  Promoting literacy through print, audio, and digital media.  Providing access to local, regional, and global information.  Nurturing a sense of community involvement through sound policies and procedures, well organized collections, diverse programs, public meetings, and trained, qualified staff.

GOALS  Increase the number of patrons who visit the library through signage, marketing, and improved programming opportunities. This will be measured by collection of yearly gate count statistics.  Continue to work with the “Friends of the HPL” to reach out into the community for growth and partnership.  Create more user groups within the community and seek their input for developing library programs.  Continue to seek grant and funding sources for the Hewitt Public Library.  Complete the re-design of the library with new furnishings and shelving.

Accomplishments:  Increased circulations  Exceeded goal of individual library visits  Increased library’s collection in all areas of genre’s  Partnership with Midway ISD ESL program

DO IT IN HEWITT 181 HEWITT PUBLIC LIBRARY

Capital Outlay,FY 14‐15 BUDGET 53,500

Services, Personnel, 136,850 263,283 Maintenance, 2,000 Supplies, 15,500 Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimated Budget Estimated Budget Personnel 263,283 244,445 253,897 222,734 230,233 Supplies 15,500 23,000 15,500 14,533 14,500 Maintenance 2,000 775 2,000 1,015 2,000 Services 136,850 33,100 36,350 32,500 30,150 Capital Outlay 53,500 53,500 53,500 40,438 51,000 Total 471,133 354,820 361,247 311,219 327,883

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Actual Collection Totals 63,238 66,141 57,554 46,000 41,452 Weeded Materials 4,199 2,700 2,600 300 250 Periodical Titles 46 46 35 35 32 Circulation 264,093 240,408 205,374 200,000 178,965 Visits 216,263 182,577 162,536 160,000 142,775 Programs: 118 114 102 68 ‐ Attendance 33,643 31,635 29,728 28,144 ‐ Online Books 7,487 7,112 6,912 6,784 ‐

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Library Director 11111 Library Staff 33333 Library PT‐FT equivalent 62111 106555 Volunteers 138 52 26 20 20 Total 148 58 31 25 25

DO IT IN HEWITT 182 GENERAL FUND HEWITT PUBLIC LIBRARY FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET AT 9‐30‐14 AT 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐59‐00 SALARIES ‐ LIBRARY $ 149,831.00 $ 157,443.00 $ 73,429.69 150,922.77 $ 135,827.28 134,487.00 10‐50110‐59‐00 PART TIME ‐LIBRARY 49,695.00 46,445.00 20,726.36 41,932.12 34,257.67 41,200.00 10‐50120‐59‐00 SOCIAL SECURITY 15,264.00 14,442.00 6,791.22 14,753.40 12,343.82 13,440.00 10‐50125‐59‐00 TMRS 22,943.00 23,350.00 10,902.27 22,464.85 19,953.20 19,756.00 10‐50130‐59‐00 EMPLOYEE INSURANCE 23,600.00 19,683.00 9,864.84 22,424.00 19,563.48 20,400.00 10‐50135‐59‐00 PRE‐EMPLOYMENT EXP 550.00 707.00 303.90 500.00 396.00 100.00 10‐50140‐59‐00 UNEMPLOYMENT INS 500.00 ‐ ‐ 500.00 ‐ 500.00 10‐50145‐59‐00 WORKERS COMP 900.00 408.00 204.30 400.00 392.25 350.00 $ 263,283.00 $ 262,478.00 $ 122,222.58 253,897.14 $ 222,733.70 230,233.00 10‐50230‐59‐00 LIBRARY SUPPLIES 5,500.00 1,846.00 1,191.11 5,500.00 2,721.03 5,500.00 10‐50235‐59‐00 OTHER EQUIP & SUPPLIES 9,000.00 17,882.00 5,988.15 9,000.00 11,199.02 9,000.00 10‐50240‐59‐00 POSTAGE 1,000.00 2,307.00 384.85 1,000.00 612.65 ‐ $ 15,500.00 $ 22,035.00 $ 7,564.11 15,500.00 $ 14,532.70 14,500.00 10‐50300‐59‐00 BUILDING MAINTENANCE 2,000.00 1,036.00 309.65 2,000.00 1,015.25 2,000.00 $ 2,000.00 $ 1,036.00 $ 309.65 2,000.00 $ 1,015.25 2,000.00 10‐50400‐59‐00 ADVERTISING 2,000.00 2,654.00 838.11 1,500.00 2,600.00 1,000.00 10‐50404‐59‐00 DUES AND SUBSCRIPTIONS 3,000.00 2,280.00 156.12 3,000.00 4,529.87 1,300.00 10‐50406‐59‐00 ELECTRIC SERVICE 7,000.00 6,430.00 3,737.35 7,000.00 4,728.17 4,500.00 10‐50408‐59‐00 SERVICE CONTRACTS 12,600.00 14,628.00 7,099.55 12,600.00 13,075.28 12,600.00 10‐50412‐59‐00 MISC PROFESSIONAL SERVICES 103,000.00 2,605.00 920.00 3,000.00 3,208.59 2,500.00 10‐50414‐59‐00 NATURAL GAS SERVICE 750.00 316.00 157.74 750.00 ‐ 300.00 10‐50420‐59‐00 TELECOMMUNICATION 3,500.00 1,820.00 1,321.53 3,500.00 1,102.53 3,200.00 10‐50421‐59‐00 TRAVEL & TRAINING 5,000.00 4,114.00 1,274.25 5,000.00 3,255.20 4,750.00 $ 136,850.00 $ 34,847.00 $ 15,504.65 36,350.00 $ 32,499.64 30,150.00 10‐50600‐59‐00 BOOKS/ AV MATERIALS 35,000.00 24,581.00 13,666.81 35,000.00 17,540.20 32,500.00 10‐50605‐59‐00 ELECTRONIC MEDIA 6,500.00 10,368.00 6,049.18 6,500.00 9,839.87 6,500.00 10‐50615‐59‐00 OTHER EQUIPMENT 9,000.00 21,306.00 15,013.44 9,000.00 11,430.61 9,000.00 10‐50620‐59‐00 OTHER IMPROVEMENTS 3,000.00 2,431.00 2,010.88 3,000.00 1,627.15 3,000.00 $ 53,500.00 $ 58,686.00 $ 36,740.31 53,500.00 40,437.83 51,000.00 $ 471,133.00 $ 379,082.00 $ 182,341.30 361,247.14 $ 311,219.12 327,883.00

DO IT IN HEWITT 183

ADMINISTRATION

DO IT IN HEWITT 184 City of Hewitt Functional Structure

General Fund ‐ Administration

City Manager

City Secretary Assistant City Manager

DO IT IN HEWITT 185 Unit Goals in Relation to Overall City Goals

Administration includes the City Council, City Manager, Assistant City Manager and City Secretary.

Goals #1-3 and #5-6 are specific to the administration of the city:

Goal #1: “Provide an efficient, safe and connective transportation system that is coordinated with existing needs and with plans for future growth; this system should be economical and responsive to adjacent land uses.”

City Manager works with the Area MPO (Metropolitan Planning Organization) to ensure that traffic plans at the State, County and local city level are coordinated with the needs and desires of the City Council.

Goal #2: “Protect the integrity of existing and future neighborhoods by ensuring that existing neighborhoods are maintained to a high standard and by ensuring that new neighborhoods are initially developed to a high standard. Provide for housing diversity throughout the City.”

City council, city manager, assistant city manager, community service director and building official work together to ensure that city wide codes are enforced on existing and future neighborhoods and that codes are kept up to date. For example, the substandard building code was revised to enable enforcement of code violations and maintenance of the housing standards approved by the council .

Goal #3: “Provide adequate local infrastructure such that existing and future development can be served. Ensure that public services and facilities will adequately serve the needs of residents and businesses with the City and that such services are adaptable to future growth.” AND

Goal #5: “Encourage the most desirable and efficient use of land while enhancing the physical and economic environment of Hewitt. Maintain and enhance the City's local character and aesthetic value through land use planning."

City Council adopted the Comprehesive Plan 2022 (a portion of which is included in the front of this budget manual) which directs the City Manager, city engineer and other parties involved in the development of city infrastructure.

DO IT IN HEWITT 186 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 ADMINISTRATION

MISSION

Provide professional management and administration of the City and implement City council policy decisions by directing, coordinating, monitoring and evaluating all city government activities.

DESCRIPTION OF DEPARTMENT  Executes the policies established by City Council and administers the affairs of the City consistent with the City Charter.

 Assists Council in the formulation of City goals and long-term planning efforts.  Provides oversight and management direction to all City departments; monitors City operations to ensure compliance with all rules, policies, regulations and laws.  Ensure city services are provided in an efficient, cost-effective manner.

GOALS  Continued work on the development of Hewitt & Warren Parks.  Monitor and ensure continued implementation of capital improvement programs.  Major Street Improvements throughout Hewitt.  Work on key legislative concerns with Texas City Management Association (TCMA) Advocacy Committee.  Begin update of the City’s Comprehensive Plan.  Monitor and control overall city budget.  Continue to actively promote quality commercial/retail development.  Further cultivate professional development of management team.

ACCOMPLISHMENTS  Completed facility study to determine facility needs.  In process of completing 22,000 sq. ft. Public Safety facility for Police & Fire.  Secured financing for $6.835 million facility for 27,000 sq. ft. Library/City Hall.  Completed new Playground Structure in Hewitt Park  Assist Texas Department of Transportation with re-locating Lift Station #1 during expansion of Interstate 35  Continue Street Improvements with 2014 Bond funds.

DO IT IN HEWITT 187 ADMINISTRATION

FY 14‐15 Budget Capital Outlay, 2,000 Services, 274,200

Personnel, Maintenance, 464,874 1,500

Supplies, 13,500

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimated Budget Actual Budget Personnel 464,874 376,983 440,219 398,487 362,986 Supplies 13,500 8,019 12,250 8,053 7,750 Maintenance 1,500 400 1,500 24,613 ‐ Services 274,200 162,715 164,765 192,368 194,590 Capital Outlay 2,000 1,900 ‐ 1,904 5,500 Total 756,074 550,017 618,734 625,425 570,826

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions City Manager 11111 Assistant City Manager 11110 City Secretary 11111 Economic Development 01100 Total 34432

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Actual Formal Council Meeting 24 24 22 22 22 Special Council Meetings 5 5 1 1 1 Council Work Sessions 26 26 28 28 28 Elections 1 1 1 1 1 Appointments to Boards 28 28 20 20 20 Total 84 84 72 72 72

DO IT IN HEWITT 188 GENERAL FUND ADMINISTRATION FY 2014‐2015 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET AT 9‐30‐14 AT 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐61‐00 SALARIES ‐ ADMINISTRATION$ 356,965.00 $ 297,285.00 $ 147,838.73 $ 338,372.70 $ 306,587.69 $ 283,339.00 10‐50105‐61‐00 SALARIES ‐ OT 200.00 102.00 101.60 200.00 1,164.67 ‐ 10‐50110‐61‐00 SALARIES ‐ PART TIME 1,273.00 3,297.00 249.10 1,700.00 2,118.51 ‐ 10‐50120‐61‐00 SOCIAL SECURITY 27,420.00 21,733.00 10,455.71 26,030.85 22,489.08 21,675.00 10‐50125‐61‐00 TMRS 54,691.00 44,320.00 22,007.32 50,366.78 45,222.22 41,622.00 10‐50130‐61‐00 EMPLOYEE INSURANCE 23,600.00 15,714.00 7,653.29 22,424.00 17,760.44 15,300.00 10‐50135‐61‐00 PRE‐EMPLOYMENT EXP 125.00 185.00 ‐ 125.00 132.00 50.00 10‐50140‐61‐00 UNEMPLOYMENT INS 200.00 ‐ ‐ 500.00 ‐ 500.00 10‐50145‐61‐00 WORKERS COMP 400.00 372.00 185.76 500.00 3,012.45 500.00 $ 464,874.00 $ 383,008.00 $ 188,491.51 440,219.33 $ 398,487.06 362,986.00 10‐50210‐61‐00 ELECTION EXPENSE 5,000.00 366.00 95.00 5,000.00 773.80 1,650.00 10‐50215‐61‐00 FUEL 900.00 1,051.00 458.85 850.00 956.58 600.00 10‐50230‐61‐00 OFFICE SUPPLIES 1,800.00 2,597.00 1,037.55 1,800.00 1,569.40 2,000.00 10‐50235‐61‐00 OTHER EQUIP & SUPPLIES 5,000.00 6,500.00 3,508.52 4,000.00 4,118.11 3,500.00 10‐50240‐61‐00 POSTAGE 400.00 276.00 97.55 200.00 635.28 ‐ 10‐50245‐61‐00 UNIFORM PURCHASE 400.00 248.00 179.85 400.00 ‐ ‐ 13,500.00 11,038.00 5,377.32 12,250.00 8,053.17 7,750.00 10‐50330‐61‐00 INSPECTIONS ‐ ‐ ‐ ‐ 23,996.60 ‐ 10‐50350‐61‐00 VEHICLE MAINTENANCE 1,500.00 295.00 237.60 1,500.00 615.99 ‐ $ 1,500.00 $ 295.00 $ 237.60 1,500.00 $ 24,612.59 ‐ 10‐50400‐61‐00 ADVERTISING 2,500.00 2,140.00 978.25 2,500.00 2,216.69 4,500.00 10‐50403‐61‐00 CONTINGENCY 2,500.00 148.00 119.00 2,500.00 ‐ 4,000.00 10‐50404‐61‐00 DUES AND SUBSCRIPTIONS 10,700.00 8,543.00 3,134.99 10,665.00 9,644.66 8,000.00 10‐50405‐61‐00 GIS/MAPPING 5,000.00 7,230.00 6,730.00 5,000.00 ‐ ‐ 10‐50406‐61‐00 ELECTRIC SERVICE 4,000.00 2,983.00 1,406.51 2,500.00 1,667.69 3,500.00 10‐50407‐61‐00 ENGINEERING SERVICES ‐ ‐ ‐ ‐ 21,053.12 3,500.00 10‐50408‐61‐00 SERVICE CONTRACTS 7,560.00 262,846.00 1,322.50 4,000.00 3,690.00 1,440.00 10‐50409‐61‐00 HEALTH DISTRICT 20,790.00 20,651.00 10,325.24 20,500.00 20,323.50 20,500.00 10‐50411‐61‐00 LEGAL SERVICES 25,000.00 25,039.00 14,578.73 25,000.00 19,758.50 25,000.00 10‐50412‐61‐00 MISC PROFESSIONAL FEES 125,000.00 34,508.00 17,488.41 25,000.00 16,214.32 22,500.00 10‐50414‐61‐00 NATURAL GAS SERVICE 1,500.00 1,359.00 693.47 250.00 872.21 650.00 10‐50415‐61‐00 PROP/LIAB INSURANCE 33,000.00 35,428.00 17,461.20 33,000.00 29,673.81 33,000.00 10‐50419‐61‐00 TAX APPRAISAL DISTRICT ‐ ‐ ‐ ‐ 36,117.00 36,000.00 10‐50420‐61‐00 TELECOMMUNICATION 3,000.00 2,672.00 1,215.72 5,700.00 4,219.98 3,500.00 10‐50421‐61‐00 TRAVEL AND TRAINING 21,000.00 19,342.00 11,125.51 19,000.00 16,745.65 21,000.00 10‐50422‐61‐00 UNIFORM CLEANING 650.00 518.00 289.00 650.00 605.75 ‐ 10‐50425‐61‐00 WASTE ‐ HOUSEHOLD 12,000.00 11,410.00 ‐ 8,500.00 9,565.56 7,500.00 $ 274,200.00 $ 434,817.00 86,868.53 164,765.00 192,368.44 194,590.00 10‐50610‐61‐00 OFFICE EQUIPMENT 2,000.00 1,800.00 1,790.17 ‐ 1,903.76 5,500.00 $ 2,000.00 $ 1,800.00 $ 1,790.17 ‐ 1,903.76 5,500.00 $ 756,074.00 $ 830,958.00 $ 282,765.13 618,734.33 $ 625,425.02 570,826.00

DO IT IN HEWITT 189

COMMUNITY DEVELOPMENT

DO IT IN HEWITT 190 City of Hewitt Functional Structure

General Fund ‐ Community Development

City Manager

Community Development Director

Community Building Building Development Inspector Maintenance Assistant (1) (1) (1)

DO IT IN HEWITT 191 Unit Goals in Relation to Overall City Goals

The Hewitt Community Development Department’s Goals uphold the City’s Overall Goals #2, #5, & #6

GOAL 2- “Protect the integrity of existing and future neighborhoods by ensuring that existing neighborhoods are maintained to a high standard and by ensuring that new neighborhoods are initially developed to a high standard. Provide for housing diversity throughout the City.”

Obj. 2.1 “Ensure that new residential areas are developed to a high standard by reviewing, and revising, if necessary, the existing standards for residential development.”

Obj. 2.4 “Ensure that there is adequate variety in terms of housing types within the City that will meet the affordable housing needs of all income and age levels.”

City council, planning & zoning commission, city manager and community development director working with Comprehensive Plan of 2022.

GOAL 5- “Encourage the most desirable and efficient use of land while enhancing the physical and economic environment of Hewitt. Maintain and enhance the City’s local character and aesthetic value through land use planning.”

Obj. 5.1 “Ensure that local land use policies encourage appropriate areas for the development of nonresidential uses, such as along Interstate Highway 35, Sun Valley Boulevard, and Hewitt Drive. Establish land use policies to encourage a balance of land uses so that there are adequate areas for nonresidential uses that will provide the essential tax base needed for the City to support existing and future residents.”

Obj. 5.2 “Establish standards related to the development of nonresidential uses in order to ensure a positive visual perception of Hewitt along the major thoroughfares. Continue the City’s current level of proactive code enforcement.”

Obj. 5.3 “Establish land use policies, possibly with the Zoning Ordinance, to encourage the area along Interestate Highway 35 to become a high quality retail corridor that would enhance Hewitt, both economically and visually.”

Obj. 5.4 “Identify specific land uses that are needed to serve the citizens of and visitors to Hewitt, such as healthcare related land uses, hotels, recreation, and retail; establish ways in which the City can proactively attract these identified land uses.”

Obj. 5.5 “Ensure that the regulatory policies within the City’s Zoning Ordinance and related map are consistent with current City needs and desires; establish ways in which the Ordinance can be regularly reviewed, and if necessary, revise the City’s Zoning Ordinance to ensure that high standards are required for new nonresidential developments.

City council, planning & zoning commission, city manager and community development director working with Comprehensive Plan of 2022.

GOAL 6- “Ensure that Hewitt projects a positive visual image that makes the City attractive to quality businesses. Enhance and expand the local economy by attracting and maintaining businesses in Hewitt.”

Obj. 6.1 “Expand and diversity the City’s tax base. Increase cooperation with private sector developers, regional economic development organizations, and economic development allies by providing assistance to developers with difficulties that may occur in the development process.”

Obj. 6.5 “Research and investigate the ability of Hewitt to compete with surrounding communities for new business development and business retention; identify ways in which Hewitt can be increasingly competitive.”

City council, planning & zoning commission, city manager and community development director working with Comprehensive Plan of 2022.

DO IT IN HEWITT 192 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 COMMUNITY DEVELOPMENT

MISSION Monitor the orderly growth of the City and foster compliance with the City’s development standards.

DESCRIPTION OF DEPARTMENT  Review subdivision plats & zoning requests.  Provide addressing for all properties in the city.  Monitor development within the flood plain.  Review construction plans for residential and commercial buildings.  Issue permits for building, plumbing, electrical, and mechanical construction.  Inspect construction work with the city.  Prepare building department reports.  Perform daily janitorial services and minor repair to City buildings.

GOALS  Increase the Building Department’s efficiency and customer service by:  Reviewing 95% of the residential building plans within 5 business days  Reviewing 95% of engineered and non-engineered commercial building plans within ten business days.  Reviewing 100% of all plats and re-plats so they are considered by Planning and Zoning Commission as outlined in Building Department’s Schedule.  Continue both educational and practical training of staff to increase efficiency in the department.  Continue reorganizing office files to make more user-friendly  Establish a preventative maintenance program for city buildings.

ACCOMPLISHMENTS  Painted exterior of Depot and interior of community center  Re-striped parking lots for city hall, library, community center, and police department.  Installed protective door plates for Community Center.  Replaced library foyer roof.  Painted City Managers and City Secretaries offices.  Installed security doors, cipher locks, and automatic door releases for city hall.  Building Official attended Association of Plumbing Inspectors School.  Zoning Secretary attended Permit Tech School.  Building inspector attained International Code Council Residential Plumbing Inspectors Certification.

DO IT IN HEWITT 193 COMMUNITY DEVELOPMENT

Capital Outlay, FY 14‐15 BUDGET 2,000 Services, 75,500

Maintenance, 26,200

Supplies, 22,250 Personnel, 229,863

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 Fy 12‐13 Classification Budget Estimated Budget Estimated Budget Personnel 229,863 217,851 263,302 253,426 260,188 Supplies 22,250 13,593 15,250 15,680 16,000 Maintenance 26,200 19,977 41,500 22,882 40,500 Services 75,500 83,781 84,000 80,905 66,500 Capital Outlay 2,000 4,988 2,500 7,950 6,800 Total 355,813 340,191 406,552 380,844 389,988

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position Number Number Number Number Number Community Development Director 11111 Community Development Coordinator 10010 Building Inspector 1.5 1.5 1 1 1 Building Secretary 01101 Building Maintenance 11111 Total 4.54.5455

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Actual Commissions: Planning & Zoning Meetings 9 9 9 9 5 Plats Submitted 8 8 8 8 6 Rezoning Requests 4 4 4 2 2 Board of Adjustment Meetings 2 2 2 3 ‐

Building Permits 700 750 693 574 1,260 Inspections Performed 1,493 1,750 1,506 1,232 1,400 Building Maintenance 38411 sq ft 38411 sq ft 38411 sq ft 38411 sq ft 38411 sq ft

FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Incentives Budget Estimated Actual Actual Actual Tax Abatement 20,000 13,315 9,541 9,122 7,834 Incentives 20,000 ‐ ‐ ‐ 7,962

FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Tax Roll Information Actual Actual Actual Actual Actual New Market Value Residential 13,585,230 6,508,560 7,001,234 8,327,413 4,247,524 Commercial 2,919,770 7,992,770 3,872,711 3,609,866 2,239,490 Exempt 17,330 1,082,310 540 33,106 3,959,099 Total New Market Value 16,522,330 15,583,640 10,874,485 11,970,385 10,446,113 Total New Taxable Value 15,060,963 13,815,138 10,390,506 11,110,344 6,130,175

DO IT IN HEWITT 194 GENERAL FUND COMMUNITY DEVELOPMENT FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET AT 9‐30‐14 AT 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐63‐00 SALARIES‐COMM DEV $ 150,048.00 $ 124,499.00 $ 71,969.78 $ 168,682.44 $ 180,679.49 $ 188,188.00 10‐50105‐63‐00 SALARIES ‐ OVERTIME 1,976.00 3,913.00 2,497.00 2,500.00 4,067.81 2,500.00 10‐50110‐63‐00 PART TIME ‐ COMM DEV 15,866.00 20,205.00 13,770.00 25,968.60 5,836.17 ‐ 10‐50120‐63‐00 SOCIAL SECURITY 12,844.00 7,833.00 4,097.06 15,082.05 13,938.59 14,588.00 10‐50125‐63‐00 TMRS 23,279.00 16,294.00 8,457.63 26,620.04 26,776.81 28,012.00 10‐50130‐63‐00 EMPLOYEE INSURANCE 23,600.00 15,464.00 7,419.48 22,424.00 19,665.81 25,500.00 10‐50135‐63‐00 PRE‐EMPLOYMENT EXP 250.00 253.00 138.50 250.00 1,085.60 100.00 10‐50140‐63‐00 UNEMPLOYMENT INS 500.00 254.00 ‐ 500.00 ‐ 500.00 10‐50145‐63‐00 WORKERS COMP 1,500.00 1,429.00 714.72 1,275.00 1,375.48 800.00 $ 229,863.00 $ 190,144.00 $ 109,064.17 263,302.13 $ 253,425.76 260,188.00 10‐50210‐63‐00 CASH OVER/SHORT ‐ 30.00 30.00 ‐ (30.00) ‐ 10‐50215‐63‐00 FUEL 6,000.00 3,969.00 1,779.36 6,000.00 4,611.73 7,000.00 10‐50220‐63‐00 JANITORIAL SUPPLIES 4,000.00 3,567.00 1,579.91 2,500.00 3,375.84 2,250.00 10‐50230‐63‐00 OFFICE SUPPLIES 2,500.00 3,448.00 2,075.33 2,000.00 3,957.46 2,000.00 10‐50235‐63‐00 OTHER EQUIP & SUPPLIES 7,500.00 570.00 109.31 2,500.00 2,406.96 3,000.00 10‐50240‐63‐00 POSTAGE 500.00 642.00 130.99 500.00 ‐ ‐ 10‐50245‐63‐00 UNIFORM PURCHASE 1,750.00 ‐ ‐ 1,750.00 1,358.42 1,750.00 $ 22,250.00 $ 12,226.00 $ 5,704.90 $ 15,250.00 $ 15,680.41 $ 16,000.00 10‐50300‐63‐00 BUILDING MAINTENANCE 10,000.00 6,133.00 3,722.71 22,000.00 17,142.53 21,000.00 10‐50315‐63‐00 PROPERTY MAINTENANCE 13,700.00 5,887.00 5,887.10 17,000.00 3,950.00 17,000.00 10‐50350‐63‐00 VEHICLE MAINTENANCE 2,500.00 228.00 19.99 2,500.00 1,789.78 2,500.00 $ 26,200.00 $ 12,248.00 $ 9,629.80 $ 41,500.00 $ 22,882.31 $ 40,500.00 10‐50404‐63‐00 DUES AND SUBSCRIPTIONS 3,000.00 2,421.00 200.00 3,000.00 1,543.25 3,000.00 10‐50405‐63‐00 GIS/MAPPING 3,000.00 3,625.00 150.00 5,000.00 ‐ ‐ 10‐50407‐63‐00 ENGINEERING SERVICES 20,000.00 18,879.00 11,875.75 18,000.00 ‐ ‐ 10‐50408‐63‐00 SERVICE CONTRACTS 20,000.00 23,619.00 9,505.03 15,500.00 24,280.85 28,000.00 10‐50410‐63‐00 INSPECTIONS 16,000.00 20,310.00 9,202.97 16,000.00 ‐ ‐ 10‐50412‐63‐00 MISC PROFESSIONAL SRVS ‐ 11,916.00 ‐ 8,000.00 42,516.00 8,000.00 10‐50420‐63‐00 TELECOMMUNICATION 5,500.00 4,969.00 2,855.51 8,000.00 7,022.68 12,000.00 10‐50421‐63‐00 TRAVEL AND TRAINING 8,000.00 3,357.00 729.96 8,000.00 5,542.26 15,500.00 10‐50422‐63‐00 UNIFORM CLEANING ‐ 260.00 ‐ ‐ ‐ ‐ $ 75,500.00 $ 89,356.00 34,519.22 81,500.00 80,905.04 66,500.00 10‐50610‐63‐00 OFFICE EQUIPMENT 1,000.00 $ 1,844.00 1,844.17 2,500.00 7,259.01 3,300.00 10‐50615‐63‐00 OTHER EQUIPMENT 1,000.00 621.00 621.32 2,500.00 691.42 3,500.00 $ 2,000.00 $ 2,465.00 $ 2,465.49 $ 5,000.00 $ 7,950.43 $ 6,800.00 $ 355,813.00 $ 306,439.00 $ 161,383.58 406,552.13 $ 380,843.95 389,988.00

10‐50235‐63‐00 OTHER EQUIP & SUPPLIES 8,650.00 Floor Scrubber

DO IT IN HEWITT 195

FINANCE DEPARTMENT

DO IT IN HEWITT 196 City of Hewitt Functional Structure

General Fund – Finance Department

DO IT IN HEWITT 197 Unit Goals in Relation to Overall City Goals

The Hewitt Finance Department's Goals uphold all the City's overall goals

The City of Hewitt Finance Department works within all of the city's Goals to provide support, structure and strategic information to assist each department as needed.

DO IT IN HEWITT 198 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 FINANCE DEPARTMENT

MISSION

The mission of the Finance Department is to ensure responsible oversight of the City's assets thru budgeting, investments, financial reporting, capital financing and auditing.

DESCRIPTION OF DEPARTMENT  Demonstrate excellent fiscal stewardship through long and short term financial planning, analysis and monitoring of the budget, investments and financial records.  Achieve operational excellence in the collection, investment, disbursement, documentation and retention of city funds.  Capitalize on investments to the infrastructure network to improve service tools for employees and citizens.  Ensure responsibe communication with department heads, vendors, investors, and citizens.  Provide accurate payroll processing coupled with timely responses to employee's payroll questions.

GOALS  Continue achieving the Distinguished Budget Presentation Award thru the Government Finance Officers Association.  Continue achieving the Certification of Achievement for Excellence in Financial Reporting for the City's Audit thru the Government Finance Officers Association.  Continue maintaining the City's high bond rating with Moody's and Standard & Poor  Continue with capital outlay and capital improvement funding thru the best financing vehicles available  Continue search for degreed accountant to assist with growing financial recordkeeping  Paperless office.

ACCOMPLISHMENTS  Received Distinguished Budget award from Government Finance Officers Association for 2013  Received Certificate of Achievement for Excellence in Financial Reporting from Government Finance Officers  Prepared financial statements 95% of the time within 10 working days.  Prepared audit material working papers within two days of beginning field work  Prepared Continuing Disclosure reports to the Municipal Securities Rulemaking Board  Closed on 2013 General Obligation Refunding of 2004 Certificate of Obligation  Closed on 2014 Certification of Obligation at $6.835 million for new City Hall/Library facility  Conducted bids for new Depository and transitioned on July 1st  Continued 3rd year of transitioning to paperless office.

DO IT IN HEWITT 199 FINANCE DEPARTMENT

FY 14‐15 BUDGET Services, 88,805

Supplies, 3,400 Personnel, 234,606

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 Fy 12‐13 Classification Budget Estimated Budget Estimated Budget Personnel 234,606 156,557 183,121 145,988 152,076 Supplies 3,400 4,700 3,000 3,323 6,000 Maintenance ‐ ‐ ‐ ‐ ‐ Services 88,805 76,682 60,839 50,330 43,000 Capital Outlay ‐ ‐ ‐ 522 2,500 Total 326,811 237,939 246,960 200,163 203,576

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position Number Number Number Number Number Finance Director 11111 Assistant Finance Director 11111 Total 22222

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Actual Budgets Prepared 22222 Financial Statements Prepared 12 12 12 12 12 Capital Projects Listings Prepared 43222 Funds Added 21100 Annual Audits 11111 Workers Compensatin Audits 11111 GFOA Awards‐Budget 11111 GFOA Certificates‐Audit 11111 Employees Added 25 23 22 9 4 Employees Terminated 20 18 21 9 4 GF Payroll Checks Issued 5 10 56 104 1955 UF Payroll Checks Issued 0 0 4 52 425 Drainage Payroll Checks Issued 0 1 4 52 104 W2s Issued 110 105 108 104 112 1099s Issued 34 34 30 28 37

DO IT IN HEWITT 200 GENERAL FUND FINANCE DEPARTMENT FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET AT 9‐30‐14 AT 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐64‐00 SALARIES ‐ FINANCE $ 173,800.00 $ 119,773.00 59,583.85 $ 125,087.75 $ 110,832.93 $ 107,779.00 10‐50105‐64‐00 SALARIES ‐ OVERTIME 300.00 255.00 254.94 200.00 352.42 ‐ 10‐50110‐64‐00 PART TIME 2,000.00 202.00 201.58 16,640.00 48.93 7,800.00 10‐50120‐64‐00 SOCIAL SECURITY 13,472.00 8,845.00 4,411.52 10,857.47 8,291.33 9,089.00 10‐50125‐64‐00 TMRS 26,659.00 17,811.00 8,824.39 18,649.08 16,333.39 16,308.00 10‐50130‐64‐00 EMPLOYEE INSURANCE 17,700.00 10,534.00 5,034.74 11,212.00 9,892.33 10,200.00 10‐50135‐64‐00 PRE‐EMPLOYMENT EXP 125.00 ‐ ‐ 125.00 ‐ 50.00 10‐50140‐64‐00 UNEMPLOYMENT INS 100.00 ‐ ‐ 100.00 ‐ 500.00 10‐50145‐64‐00 WORKERS COMP 450.00 248.00 123.84 250.00 236.29 350.00 $ 234,606.00 $ 157,668.00 $ 78,434.86 183,121.30 $ 145,987.62 152,076.00 10‐50230‐64‐00 OFFICE SUPPLIES $ 2,000.00 $ 2,788.00 2,416.96 2,000.00 1,590.08 2,500.00 10‐50240‐64‐00 POSTAGE 1,200.00 764.00 1,597.06 800.00 1,732.87 3,500.00 10‐50245‐64‐00 UNIFORM PURCHASE 200.00 ‐ ‐ 200.00 ‐ ‐ $ 3,400.00 $ 3,552.00 $ 4,014.02 $ 3,000.00 $ 3,322.95 $ 6,000.00 10‐50402‐64‐00 AUDIT SERVICE $ 10,000.00 $ 10,000.00 10,000.00 10,500.00 10,000.00 10,000.00 10‐50404‐64‐00 DUES AND SUBSCRIPTIONS 4,500.00 1,955.00 812.15 3,500.00 2,749.88 3,500.00 10‐50408‐64‐00 SERVICE CONTRACTS 18,000.00 20,892.00 12,456.86 21,000.00 33,914.61 23,000.00 10‐50412‐64‐00 MISC PROFESSIONAL FEES ‐ ‐ ‐ ‐ ‐ ‐ 10‐50419‐64‐00 TAX APPRAISAL DISTRICT 49,105.00 39,482.00 19,741.00 20,638.50 ‐ ‐ 10‐50420‐64‐00 TELECOMMUNICATIONS 1,200.00 1,889.00 557.62 1,200.00 905.12 2,500.00 10‐50421‐64‐00 TRAVEL AND TRAINING 6,000.00 4,541.00 2,119.16 4,000.00 2,760.15 4,000.00 $ 88,805.00 $ 78,759.00 45,686.79 60,838.50 50,329.76 43,000.00 10‐50610‐64‐00 OFFICE EQUIPMENT ‐ 1,210.00 ‐ ‐ 522.25 2,500.00 $ ‐ $ 1,210.00 $ ‐ $ ‐ $ 522.25 $ 2,500.00 $ 326,811.00 $ 241,189.00 $ 128,135.67 $ 246,959.80 $ 200,162.58 $ 203,576.00

DO IT IN HEWITT 201

MUNICIPAL COURT

DO IT IN HEWITT 202 City of Hewitt Functional Structure

General Fund – Court

DO IT IN HEWITT 203 Unit Goals in Relation to Overall City Goals

The Hewitt Municipal Court’s Goals uphold the City’s Overall Goal #4

“Ensure that local residents and businesses feel safe and secure from crime and injury and have trust and shared responsibility for maintaining a safe environment.”

More specifically, Goal #4 Objectives are not broken down past the basic responses of the Public Safety departments in their role as police and fire prevention and protection. The municipal court follows thru on the violations reported by the police and fire departments by contacting the violators for court appearances and pleas on the violations. In this way they court provides support to the city by ensuring local residents and businesses feel safe and secure from crime and injury thru adequate prosecution.

DO IT IN HEWITT 204 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 MUNICIPAL COURT

MISSION The mission of the Municipal Court Department is to provide an accessible legal forum for individuals to have their court matters heard in a fair and efficient manner, while providing a high level of integrity, professionalism and customer service in accordance with the Texas Code of Criminal Procedure and the Code o Judicial Conduct. Cases that are filed in Municipal Court are class “C” misdemeanors, i.e., violations of parking, traffic or other state codes and local city ordinances.

DESCRIPTION OF DEPARTMENT  To provide fair, timely, and speedy resolution of cases in a manner which is efficient both for the City and for the defendants/citizens;

 To ensure defendants’ strict compliance with judicial orders, including the payment of Court-ordered fines and fees and the

completion of Court-ordered time obligations such as jail time, special counseling or classes, or Community Service;

 To ensure timely processing of all monies received, as well as the reconciliation of these accounts and the forwarding of mandatory payments to the appropriate parties.  To provide a sufficient and randomly-selected pool of jurors for those defendants who choose to exercise their right to trial by a jury of their peers.  To identify and provide statistical analysis information for planning, goal-setting and resource allocation.

GOALS  Study to pass level 2 certification tests.  Reduce outstanding warrants by 25% or by $6000 with the help of the police department.  Continue training with the Texas Municipal Education Center  Attend annual conference.  Participate in State-wide warrant round-up.  Participate in National Court Week.

ACCOMPLISHMENTS  Explained and answered questions about how the court works; explained the requirements to have a case considered by the co  Purchased new computer workstations.  Upgraded software to be web-enabled.  Trained on legislative updates and applied updated to court procedures.  Maintained fee funds; i.e. court technology, building security and juvenile case management funds.  Participated in Community Orientation Program with presentation to citizen attending program.

DO IT IN HEWITT 205 MUNICIPAL COURT

Capital Outlay, 1,000 FY 14‐15 BUDGET Services, 33,300

Supplies, 2,200

Personnel, 120,893

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimated Budget Actual Budget Personnel 120,893 111,638 114,534 107,014 108,079 Supplies 2,200 2,200 2,000 1,866 2,500 Maintenance ‐ ‐ ‐ ‐ ‐ Services 33,300 33,300 33,600 30,418 40,600 Capital Outlay 1,000 ‐ ‐ ‐ ‐ Total 157,393 147,138 150,134 139,297 151,179

FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Warrants Issued 1,000 960 1,284 1,200 1,100 Warrrants Outstanding 2,500 2,854 2,939 3,100 3,000 Trials 11 10 12 35 35 Total Cases Filed 2,400 2,218 2,412 7,305 7,005

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions City Attorney‐Every 1st & 3rd Wed Part‐time Part‐time Part‐time Part‐time Part‐time City Judge‐Every 1st & 3rd Wed Part‐time Part‐time Part‐time Part‐time Part‐time Court Administrator 11111 Assistant Court Administrator 11111 Total 22222

DO IT IN HEWITT 206 GENERAL FUND MUNICIPAL COURT FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET AT 9‐30‐14 AT 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐65‐00 SALARIES ‐ COURT $ 88,334.00 $ 83,518.00 $ 41,464.78 $ 83,934.16 $ 79,346.41 $ 79,295.00 10‐50120‐65‐00 SOCIAL SECURITY 6,757.00 6,216.00 3,091.87 6,420.96 5,903.51 6,066.00 10‐50125‐65‐00 TMRS 13,527.00 12,435.00 6,156.35 12,491.92 11,656.17 11,648.00 10‐50130‐65‐00 EMPLOYEE INSURANCE 11,800.00 10,404.00 4,982.19 11,212.00 9,871.24 10,200.00 10‐50135‐65‐00 PRE‐EMPLOYMENT EXP 125.00 ‐ ‐ 125.00 ‐ 50.00 10‐50140‐65‐00 UNEMPLOYMENT INS 100.00 ‐ ‐ 100.00 ‐ 500.00 10‐50145‐65‐00 WORKERS COMP 250.00 248.00 123.84 250.00 236.29 320.00 $ 120,893.00 $ 112,821.00 $ 55,819.03 114,534.04 $ 107,013.62 $ 108,079.00 10‐50230‐65‐00 OFFICE SUPPLIES 1,500.00 1,307.00 325.93 1,500.00 1,377.44 2,500.00 10‐50240‐65‐00 POSTAGE 500.00 578.00 418.15 500.00 488.13 ‐ 10‐50245‐65‐00 UNIFORM PURCHASE 200.00 ‐ ‐ 200.00 $ 2,200.00 $ 1,885.00 $ 744.08 $ 2,000.00 $ 1,865.57 $ 2,500.00 10‐50404‐65‐00 DUES AND SUBSCRIPTIONS 300.00 369.00 285.28 250.00 216.00 250.00 10‐50408‐65‐00 SERVICE CONTRACTS 2,500.00 3,387.00 1,572.99 2,500.00 2,673.05 3,500.00 10‐50413‐65‐00 MUNICIPAL COURT LEGAL 28,000.00 31,049.00 12,690.00 28,000.00 25,429.00 34,000.00 10‐50420‐65‐00 TELECOMMUNICATION 1,000.00 969.00 462.53 1,200.00 1,393.52 1,200.00 10‐50421‐65‐00 TRAVEL AND TRAINING 1,500.00 1,156.00 ‐ 1,650.00 706.50 1,650.00 $ 33,300.00 $ 36,930.00 15,010.80 33,600.00 30,418.07 40,600.00 10‐50610‐63‐00 OFFICE EQUIPMENT 1,000.00 ‐ ‐ ‐ ‐ ‐ $ 1,000.00 $ ‐ $ ‐ $ ‐ $ ‐ $ ‐ $ 157,393.00 $ 151,636.00 $ 71,573.91 $ 150,134.04 $ 139,297.26 $ 151,179.00

DO IT IN HEWITT 207

HUMAN RESOURCES

DO IT IN HEWITT 208 City of Hewitt Functional Structure

General Fund – Human Resources

DO IT IN HEWITT 209 Unit Goals in Relation to Overall City Goals

The Human Resource Department’s Goals uphold the City’s Overall Goals

The City of Human Resource Department works within all of the city’s Goals to provide support, structure and strategic information to assist each department as needed.

DO IT IN HEWITT 210 ANNUAL BUDGET GENERAL FUND FISCAL YEAR 2014-2015 HUMAN RESOURCES

MISSION The mission of the Human Resources/Civil Service Department is to provide an organizational framework to recruit, select, classify, compensate, develop and reward the City’s workforce, while ensuring an environment that optimizes productivity, efficiency and effectiveness.

 GOALS  To create and utilize an able and motivated workforce, to accomplish organizational goals.  To establish and maintain organizational structure and desirable working relationships among all the members of the organization.  To secure the integration of individual or groups within the organization by co-ordination of the individual and group goals with those of the organization.  To create opportunities for individual or group development so as to match it with the growth of the organiz  To attain an effective utilization of human resources in the achievement of organizational goals.

ACCOMPLISHMENTS  First year of evaluations with merit increases  Implemented Tobacco Free policy with surcharges for tobacco users  Organized 4th year of Wellness Screenings program.  Conducted 2 Civil Service Police Officer tests.  Recommendations for pay adjustments for targeted positions  Utilized 2 paid interns for HR projects  Audit of I-9 forms and recommended changes in the process  Implemented use of temporary agency for labor intensive positions  Created and implemented hiring process for Entry Fire Fighter position

DO IT IN HEWITT 211 HUMAN RESOURCES

FY 14‐15 BUDGET

Maintenance, 54,900

Personnel, Supplies, 350 106,238

Expenditure Summary FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 Classification Budget Estimated Budget Actual Budget Personnel 106,238 95,733 99,081 86,971 86,918 Supplies 350 600 376 150 1,500 Services 54,900 40,992 47,700 46,670 68,200 Capital Outlay ‐ ‐ 2,000 ‐ 2,000 Total 161,488 137,325 149,157 133,791 158,618

Workload/Demand Measures FY 14/15 FY 13/14 FY 12/13 FY 11/12 FY 10/11 Measurement Budget Estimated Actual Actual Actual Civil Service Meetings 2 1 2 Applications Received 100 97 130 200 147

Staffing FY 14/15 FY 13/14 FY 12/13 FY 11‐12 FY 10‐11 Position FTE FTE FTE FTE FTE Human Resources Director 11111

DO IT IN HEWITT 212 GENERAL FUND HUMAN RESOURCES FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET AT 9‐30‐14 AT 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50100‐66‐00 SALARIES ‐ HR $ 80,240.00 $ 75,425.00 $ 37,226.94 $ 75,500.00 $ 66,670.63 $ 66,490.00 10‐50105‐66‐00 SALARIES ‐ OVERTIME 200.00 ‐ ‐ 500.00 ‐ ‐ 10‐50110‐66‐00 SALARIES ‐ PART TIME 1,000.00 ‐ ‐ ‐ ‐ ‐ 10‐50120‐66‐00 SOCIAL SECURITY 6,230.00 5,096.00 2,539.06 5,814.00 4,585.85 5,086.00 10‐50125‐66‐00 TMRS 12,318.00 11,230.00 5,527.26 11,311.00 9,794.14 9,767.00 10‐50130‐66‐00 EMPLOYEE INSURANCE 5,900.00 5,214.00 2,511.24 5,606.00 5,801.78 5,100.00 10‐50135‐66‐00 PRE‐EMPLOYMENT EXP 125.00 ‐ ‐ 125.00 ‐ 50.00 10‐50140‐66‐00 UNEMPLOYMENT INS 100.00 ‐ ‐ 100.00 ‐ 250.00 10‐50145‐66‐00 WORKERS COMP 125.00 124.00 61.92 125.00 118.13 175.00 $ 106,238.00 $ 97,089.00 $ 47,866.42 99,081.00 $ 86,970.53 86,918.00 10‐50230‐66‐00 OFFICE SUPPLIES 350.00 691.00 474.66 376.00 150.43 1,500.00 $ 350.00 $ 691.00 $ 474.66 $ 376.00 $ 150.43 $ 1,500.00 10‐50400‐66‐00 ADVERTISING 2,500.00 296.00 295.50 2,500.00 1,783.20 2,500.00 10‐50404‐66‐00 DUES AND SUBSCRIPTIONS 800.00 603.00 260.00 600.00 515.00 800.00 10‐50408‐66‐00 SERVICE CONTRACTS 4,000.00 3,875.00 2,051.31 4,000.00 8,773.07 18,000.00 10‐50411‐66‐00 LEGAL SERVICES 4,500.00 3,780.00 540.00 4,500.00 1,832.40 4,500.00 10‐50412‐66‐00 MISC. CONSULTING FEES 19,000.00 18,792.00 ‐ 18,000.00 18,792.00 19,000.00 10‐50418‐66‐00 TX LGC, CHAP 143 EXP 10,000.00 1,337.00 147.00 4,000.00 3,069.00 4,000.00 10‐50420‐66‐00 TELECOMMUNICATION 2,100.00 1,647.00 794.02 2,100.00 2,320.58 2,400.00 10‐50421‐66‐00 TRAVEL AND TRAINING 12,000.00 6,164.00 2,678.20 12,000.00 9,584.97 17,000.00 $ 54,900.00 $ 36,494.00 6,766.03 47,700.00 46,670.22 68,200.00 10‐50610‐66‐00 OFFICE EQUIPMENT ‐ ‐ ‐ 2,000.00 ‐ 2,000.00 $ ‐ $ ‐ $ ‐ $ 2,000.00 $ ‐ $ 2,000.00 $ 161,488.00 $ 134,274.00 $ 55,107.11 $ 149,157.00 $ 133,791.18 $ 158,618.00

DO IT IN HEWITT 213

GENERAL FUND DEBT SERVICE

DO IT IN HEWITT 214 GENERAL FUND GENERAL FUND DEBT SERVICE FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET AT 9‐30‐14 AT 3‐31‐14 BUDGET ACTUAL BUDGET 10‐50500‐70‐00 AGENT FEES $ 1,997.56 $ 900.00 $ ‐ $ ‐ $ 500.00 $ 2,000.00 10‐50562‐70‐00 04 COMB TAX & REV CO ‐ 66,798.00 12,738.05 128,220.25 130,472.75 130,473.00 10‐50564‐70‐00 09 GEN OBL REF BONDS 75,988.69 282,320.00 10,032.18 282,320.36 282,887.40 282,887.00 10‐50565‐70‐00 10 COMB TAX & REV CO 146,125.00 111,425.00 50,712.50 111,425.00 111,725.00 111,725.00 10‐50566‐70‐00 12 COMB TAX & REV CO 175,520.96 171,447.00 32,905.25 171,322.64 166,868.84 166,869.00 10‐50567‐70‐00 12 GEN OBL REF BONDS 111,275.00 118,225.00 109,612.50 118,225.00 108,372.91 108,373.00 10‐50568‐70‐00 13 COMB TAX & REV CO 235,930.00 115,930.00 57,965.00 115,930.00 38,643.34 ‐ 10‐50569‐70‐00 13 GEN OBL REF BONDS 167,636.62 61,422.00 ‐ ‐ ‐ ‐ 10‐50570‐70‐00 14 COMB TAX & REV CO 203,412.50 ‐ ‐ ‐ ‐ ‐ 10‐50571‐70‐00 PINNACLE CAPITAL #1 ‐ 66,096.00 66,095.94 65,747.86 66,095.16 65,748.00 10‐50572‐70‐00 PINNACLE CAPITAL #2 43,123.76 43,124.00 43,123.75 43,123.75 43,123.75 43,124.00 10‐50573‐70‐00 PINNACLE CAPITAL #3 55,077.12 55,077.00 55,077.12 51,436.77 55,078.49 51,437.00 10‐50574‐70‐00 BB&T CAPITAL 51,641.79 ‐ ‐ ‐ ‐ ‐ $ 1,267,729.00 $ 1,092,764.00 $ 438,262.29 $ 1,087,751.63 $ 1,003,767.64 $ 962,636.00

DO IT IN HEWITT 215

UTILITIES FUND

The Utilities Fund is a Major Fund used to account for revenues and expenses relating to the enterprise of providing water, wastewater and sanitation services to its customers. The intent is that the costs of these services are recovered through user charges.

DO IT IN HEWITT 216 DEPARTMENT DETAIL Overview of Departments in the UTILITY FUND

The Water & Wastewater Fund is organized into the following 3 departments. Please note that the Department 93 has no personnel and is used only to track any expenses specific to this fund and not applicable to another department.

Department 91‐MAINTENANCE DEPARTMENT The Water & Wastewater Maintenanc Department operates and maintens the City's water system and waste water collection system, including lines, wells, storage and pumping facilities. They also maintain the SCADA (daily wireless pump reporting) and the AMR (wireless meter reading) systems.

Department 93‐ ADMINISTRATION This department contains no personnel. It is used to track expenses specific to this fund that do not apply to maintenance or utility billing, such as the cost of engineering services, legal service of property insurance. Department 94‐ UTILTIY BILLING The Utility Billing department provides for the timely billing and collection of City utilities; water, sewer and garbage, maintain deposits and a record of customer's billing and usage. This department works closely with citizens.

DO IT IN HEWITT 217 UTILITIES FUND PROJECTION by CATEGORY

Estimated Beginning Fund Balance: 2,084,002

Revenues & Transfers In $ 6,211,875

Proposed Expenditu Personnel$ 727,180 Supplies 107,550 Repair & Maintenance 418,500 Services 2,613,192 Debt Service 1,800,483 Capital Outlay 2,595 Transfers 540,000 6,209,500

Revenues in Excess of O&M Expenditures $ 2,375

Capital Projects $ ‐

Net Impact of Request on Cash $ 2,375

Estimated Fund Balance End of Year $ 2,086,377

Minimum Fund Balance (3 months O&M budget) $ 1,552,375

Estimated Fund Balance in Excess of Minimum $ 534,002

Note: City policy requires a minimum unreserved cash fund balance equal to at least three months' of operating expenses. For the proposed FY 14‐15 budget, the minimum fund balance is 3 months of operating expenditures or $1,540,243 (prior year, $1,533,246).

DO IT IN HEWITT 218 UTILITY FUND Summary of Sources & Uses FY 14/15 UTILITY FUND DEBT SERVICE TOTAL FUND

FY 14/15 FY 13/14 FY 12/13 FY 14/15 FY 13/14 FY 12/13 FY 14/15 FY 13/14 FY 12/13 Budget Estimate Actual Budget Estimate Actual Budget Estimate Actual Retained Earning, Beg.Yr. 2,084,002 2,097,911 1,711,624 ‐ ‐ ‐ 2,084,002 2,097,911 1,711,624 Operating Revenues Water Revenue 2,437,142 1,910,894 2,329,359 1,800,483 1,767,860 1,727,981 4,237,625 3,678,754 4,057,340 Sewer Revenue 1,814,250 1,969,518 1,718,278 1,814,250 1,969,518 1,718,278 Tap Fees 20,000 11,850 13,700 20,000 11,850 13,700 Interest and other revenue 140,000 195,967 161,956 140,000 195,967 161,956 Total Revenues 4,411,392 4,088,229 4,223,293 1,800,483 1,767,860 1,727,981 6,211,875 5,856,089 5,951,274 Operating Expenses by Dept W&S Maintenance 3,474,056 3,188,842 3,007,232 ‐ ‐ ‐ 3,474,056 3,188,842 3,007,232 W&S Administration 635,000 641,321 592,034 ‐ ‐ ‐ 635,000 641,321 592,034 W&S Utility Billing 299,961 271,975 237,740 ‐ ‐ ‐ 299,961 271,975 237,740 Total W&S Administration 4,409,017 4,102,138 3,837,006 ‐ ‐ ‐ 4,409,017 4,102,138 3,837,006 Debt Service ‐ ‐ ‐ 1,800,483 1,767,860 1,727,981 1,800,483 1,767,860 1,727,981 Total Operating Expenses 4,409,017 4,102,138 3,837,006 1,800,483 1,767,860 1,727,981 6,209,500 5,869,998 5,564,987 Net Income before Transfers 2,375 (13,909) 386,287 ‐ ‐ ‐ 2,375 (13,909) 386,287 Transfers ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Net Income after Transfers 2,086,377 2,084,002 2,097,911 ‐ ‐ ‐ 2,086,377 2,084,002 2,097,911 Ninety Day Reserve (1,552,375) (1,533,246) (1,416,619) (1,552,375) (1,533,246) (1,416,619) Retained Earning, End of Yr 534,002 550,756 681,292 534,002 550,756 681,292

Change in Fund Balance Analysis Change in Fund Balance Rainy Day Reserves: FY 14/15 FY 13/14 FY 14/15 FY 13/14 Dollar Change: (2,375) 13,909 19,129 116,627 Percentage Change: ‐0.1% 0.7% ‐1.2% ‐8.2% Note on Changes in Fund Balance: Please note that the Water & Wastewater Fund does not have Percentage Changes greater than 10% for the three fiscal years presented above.

Note on Fund Balance: Per council direction, the budget is not amended at any time during the year. The difference between Total Sources and Uses and Fund Balance reflect the difference in budgeted expenditures versus actual expenditures and/ or differences in beginning and/or ending fund balance projections. The budget document is an estimation of revenues, expenditures and fund balances.

Definition of Fund Balance: Fund Balance ‐ The difference between fund assets and fund liabilities of governmental funds. Fund balance in the General Fund (which uses the cash basis of accounting (see Summary of Significant Accounting Policies) ) closely equates to available cash. The Water & Sewer enterprise fund also uses the term "Fund Balance". A more precise definition of an enterprise's fund balance is "retained earnings," which is the difference between Water & Wastewater Fund Assets and Water & Wastewater Fund Liabilities. For budget purposes the fund balance of the Water & Wastewater Fund also closely equates to available cash.

DO IT IN HEWITT 219 UTILITY FUND MULTI‐YEAR PROJECTION OF REVENUE AND EXPENSES

BUDGET BUDGET BUDGET BUDGET BUDGET REVENUE FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 WATER REVENUE 4,237,625 4,322,378 4,408,825 4,497,002 4,586,942 SEWER REVENUE 1,814,250 1,850,535 1,887,546 1,925,297 1,963,803 WATER TAP/METER SET 20,000 30,000 30,000 30,000 30,000 INTEREST 20,000 20,000 20,000 20,000 20,000 PENALTIES AND FEES 90,000 100,000 100,000 100,000 100,000 MISC REVENUE 30,000 60,000 60,000 60,000 60,000 TOTAL REVENUE 6,211,875 6,382,913 6,506,371 6,632,298 6,760,744

BUDGET BUDGET BUDGET BUDGET BUDGET EXPENSES FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 MAINTENANCE DEPT 3,474,056 3,613,018 3,667,214 3,722,222 3,778,055 ADMINISTRATION 635,000 660,400 676,910 693,833 711,179 UTILITY BILLING 299,961 311,959 324,438 337,415 350,912 DEBT SERVICE 1,800,483 1,727,151 1,805,928 1,735,704 1,750,337 TOTAL EXPENSES 6,209,500 6,312,529 6,474,489 6,489,174 6,590,483 NET INCOME (LOSS) 2,375 70,384 31,881 143,124 170,262

Based on 2% increase in Water Revenue and Sewer Revenue for each budget year. Based on 4% increase in Department Expense, except for Debt Service which is actual to date.

DO IT IN HEWITT 220

UTILITIES FUND ‐ REVENUE & ASSUMPTIONS

DO IT IN HEWITT 221 UTILITIES FUND REVENUE FY 14/15

FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 Budget Estimated Budget Actual Budget Water Revenue 4,237,625 3,678,754 4,175,000 4,057,340 3,895,000 Sewer Revenue 1,814,250 1,969,518 1,770,000 1,718,278 1,577,000 Water Tap/Meter Set 20,000 11,850 30,000 13,700 20,000 Interest 20,000 17,054 15,000 20,241 15,000 Penalties & Fees 90,000 93,489 100,000 94,469 100,000 Miscellaneous 30,000 85,424 60,000 47,246 60,000

TOTAL REVENUE 6,211,875 5,856,089 6,150,000 5,951,274 5,667,000

Utility Fund Revenues FY 14/15, $6.2 Mil Penalties & Fees Water Tap/Meter Interest Miscellaneous Set

Sewer Revenue

Water Revenue

DO IT IN HEWITT 222 UTILITY FUND ‐ REVENUE ASSUMPTIONS

The Utility Fund is one of the City's two Operating Funds. Enterprise funds are used to accounts for revenues and expenses relating to the enterprise of providing services to customers. The intent is that the costs of these services get recovered thru user charges, i.e. customer charges for water and wastewater usage. Projected water and wastewater revenue is based on trend analysis and a 2009 Rate Study by Economists.com that is updated annually. The following two pages present the water and wastewater rates from 2009 to 2014, along with the projected rates for the following two years.

Water Expense ‐ $4,237,625 Water revenue is very elastic and highly dependent on the weather. Dry, hot weather means higher water sales, and conversely cool, wet weather translates to lower water sales. Water revenue projections are budgeted using a multi‐year trend analysis. This trend is then used to establish a revenue "target" based on a normal weather year with no extreme periods of dry or wet weather. This target is reviewed annually and adjusted as the trend analysis and rate changes dictate. Also, any rate changes are taken into account and the target adjusted accordingly.

Water revenue for FY 14‐15 is budgeted to increase from $4,175,000 for FY 13/14 to $4,237,625 in FY 14/15, an increase of $62,625 or 1.5%.

Water Revenue ‐ Budgeted vs Actual 2005‐2015 Budget Actual 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Wastewater Revenue‐ $1,814,250 Wastewater revenue for FY 14‐15 is budgeted to increase from $1,770,000 for FY 13/14 to $1,814,250 in FY 14/15, an increase of $44,250 or 2.5%.

Sewer Revenue ‐ Budgeted vs Actual 2005‐2015 Budget Actual 2000

1500

1000

500

0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Wastewater revenue should be projected using a target revenue that has been set at a level intended to recoup the cost of sewer operations and sewer capital improvements. Sewer flow is not pressurized and not metered, therefore the sewer rate is based on a portion of the water consumption. The intent of this billable gallon method is to estimate the number of gallons a customer puts into the sewer system. The basis for billable gallons for each customer is established by ordinance. For residential customers, billable gallons are capped at 20,000 gallons per month, thus avoiding the extreme water use of the summer. Industrial customers are billed on actual water use.

In accordance to the recommendations of the updated Rate Study by Economists.com, the city will increase water & wastewater rates effective October 1st, 2014. This is the 6th year of rate increases recommended by Economists.com to fund the infrastructure needs. The changes for this budget year were increases in the water incremental rates and an increase in residential base wastewater from $21 to $24 per month for the first 5,000 gallons and from $3.00 to $3.75 for each 1000 gallons up to 20,000 gallons (see rate sheets on following pages). Commercial base wastewater rates increased from $45 to $52 per month for the first 20,000 gallons and and increased from $3.00 to $3.75 per 1,000 gallons with no upper cap. Rates increases for wastewater were necessary to more closely align the costs of wastewater infrastructure with the revenue needed. [Historical trend analysis used.]

DO IT IN HEWITT 223 WATER AND WASTEWATER RATE PLAN ECONOMISTS.COM RATE STUDY RECOMMENDATIONS WATER RATES Effective Effective Effective Effective Effective Effective Effective Prior Oct‐10 Oct‐11 Oct‐12 Oct‐13 Oct‐14 Oct‐15 Oct‐16 Residential Inside, Commercial, Builders Min Chg ‐‐ 1st 3,000 Gal 5/8"$ 28.00 $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 31.00 1" 59.50 63.00 63.00 63.00 63.00 63.00 63.00 65.00 1 1/2" 178.50 190.00 190.00 190.00 190.00 190.00 190.00 196.00 2" 178.50 190.00 190.00 190.00 190.00 190.00 190.00 196.00 3" 357.00 380.00 380.00 380.00 380.00 380.00 380.00 393.00 4" 357.00 380.00 380.00 380.00 380.00 380.00 380.00 393.00 6" 535.50 570.00 570.00 570.00 570.00 570.00 570.00 589.50

Volume Rate Per 1,000 Gal 3,001 7,000 $ 2.98 $ 3.40 $ 3.40 $ 4.10 $ 4.35 $ 4.60 $ 4.85 $ 5.00 7,001 12,000 3.45 3.80 3.80 4.60 4.85 5.10 5.40 5.60 12,001 Above 3.87 4.15 4.15 5.00 5.25 5.55 5.85 6.05

WASTEWATER RATES

Residential* Base Chg ‐‐ 1st 5,000 Gal $ 9.00 $ 12.00 $ 15.00 $ 18.00 $ 21.00 $ 24.00 $ 26.50 $ 27.50 Volume Rate Per 1,000 Gal 0.75 1.25 1.75 2.25 3.00 3.75 4.50 4.65 *Residential usage charges cap at 20,000 gallons

Industrial, Institutional or Commercial Base Chg ‐‐ 1st 20,000 Gal$ 17.00 $ 24.00 $ 31.00 $ 38.00 $ 45.00 $ 52.00 $ 57.25 $ 59.00 Volume Rate Per 1,000 Gal 0.75 1.25 1.75 2.25 3.00 3.75 4.50 4.65

Taps & Connections ‐ $20,000 Tap fees are charged to new customers who "tap" into the City's water and sewer systems. This revenue is highly dependent on building and construction activity within the City that is difficult to predict. The revenue projection is based on trend analysis, taking into account predicted construction levels.

Interest Income ‐ $20,000 Interest income is projected using a cash flow analysis to estimate investable cash balances. Interest rate trends for the current year are also taken into account in developing the projection. The level of capital outlay may cause a decline in idle, investable cash. The City will invest all idle cash in order to maximize earnings. The city's idle cash funds are invested in accordance with the City’s Investment Policy. Please see the following chart; projected interest earnings are low. Also, the city's Depository Bank changed effective July 1st. With the new agreement, the city will earn .35% on all funds in the Depository. Interest income is determined by cash analysis, interest rate assumptions and capital outlay projections.

Penalties & Fees ‐ $90,000

Late fees include penalties for late payments and the handling charges for insufficient fund checks written to the City. It also includes fees for turning meters on after payment has been made. Budget amount is based on an average amount received.

Miscellaneous Income ‐ $30,000 Miscellaneous income is generated by items not readily classified to other categories. Budget is based on an average amount received as determined by trend analysis.

DO IT IN HEWITT 224 Calculation of minimum bill

WATER & WASTEWATER RATES EFFECTIVE 10‐1‐14

WATER RATES Residential, Commercial & Builders Water Rates For a 3/4 inch service: Effective 10/1/14 For the first 3,000 gallons, minimum 30.00 For the next 4,000 gallons, per 1,000 gallons 4.60 For the next 5,000 gallons, per 1,000 gallons 5.10 For all over 12,000 gallons, per 1,000 gallons 5.55

For All Other Sized Lines* For the first 3,000 gallons: Effective 10/1/14 1 inch service 63.00 1 1/2 inch service 190.00 2 inch service 190.00 3 inch service 380.00 4 inch service 380.00 6 inch service 570.00 *Usage over 3,000 gallon minimum is charged at above rates City of Hewitt, Code of Ordinances, Sec. 78‐26

WASTEWATER RATES Residential Sewer Service Effective 10/1/14

First 5,000 gallons 24.00 5,000 to 20,000 gallons, per 1,000 gallons 3.75

Industrial, Institutional, or Commercial Sewer First 20,000 gallons 52.00 Over 20,000 gallons, per 1,000 gallons 3.75 City of Hewitt, Code of Ordinances, Sec. 78‐102

MINIMUM BILL Effective 10/1/14 Water & Wasterwater Minimum 3/4 inch service‐residential 54.00 1 inch service‐commercial 115.00 1 1/2 inch service‐commercial 242.00 2 inch service‐commercial 242.00 3 inch service‐commercial 432.00 4 inch service‐commercial 432.00 6 inch service‐commercial 622.00

DO IT IN HEWITT 225

UTILITIES FUND ‐ EXPENSES & ASSUMPTIONS Expense detail by department

DO IT IN HEWITT 226 UTILITY FUND BUDGET SUMMARY by Department FY 14/15 FY 14/15 FY 13/14 FY 13/14 FY 12/13 FY 12/13 BUDGET ESTIMATED BUDGET ACTUAL BUDGET Beginning Fund Balance 2,084,002 2,097,911 2,097,911 1,711,624 1,711,624

Water Revenue 4,237,625 3,678,754 4,175,000 4,057,340 3,895,000 Sewer Revenue 1,814,250 1,969,518 1,770,000 1,718,278 1,577,000 Water Taps 20,000 11,850 30,000 13,700 20,000 Interest Income 20,000 17,054 15,000 20,241 15,000 Penalties & Fees 90,000 93,489 100,000 94,469 100,000 Misc Revenue 30,000 85,424 60,000 47,246 60,000 Operating Revenue 6,211,875 5,856,089 6,150,000 5,951,274 5,667,000 Funds Available 8,295,877 7,954,000 8,247,911 7,662,898 7,378,624

Operating Expenditures W&S Maintenance 3,474,056 3,188,842 3,439,391 3,007,232 3,066,125 W&S Administration 635,000 641,321 634,000 592,034 587,650 W&S Utility Billing 299,961 271,975 298,555 237,740 282,831 Debt Service 1,800,483 1,767,860 1,761,036 1,727,981 1,729,871 Total Expenditures 6,209,500 5,869,998 6,132,982 5,564,987 5,666,477 Net Income 2,375 (13,909) 17,018 386,287 523 Total Funds Less Expenditures 2,086,377 2,084,002 2,114,929 2,097,911 1,712,147 Less: Transfers to WS Capital ‐ ‐ ‐ ‐ ‐ Fund Balance Before Reserve 2,086,377 2,084,002 2,114,929 2,097,911 1,712,147 Less: 3 month reserve* 1,552,375 1,533,246 1,533,246 1,416,619 1,416,619 Ending Fund Balance 534,002 550,756 581,684 681,292 95,581

*Note: City policy requires a minimum unreserved cash fund balance equal to at least three months' of operating expenditures. For FY 14‐15, the minimum fund balance reserve is $1,552,375, (prior year, $1,533,246.)

DO IT IN HEWITT 227 TOTAL EXPENDITURES BY TYPE Three Year Comparison of Actual, Estimated & Budgeted FY 14/15

Total Actual FY 12/13 Main Admin UB LTD TOTAL Total Personnel 406,035 ‐ 162,269 ‐ 568,304 Total Supplies 64,395 768 37,106 ‐ 102,269 Total Maintenance 412,604 91,266 37,358 ‐ 541,228 Total Actual FY 12/13 Total Services 2,092,095 ‐ 1,008 ‐ 2,093,103 Total Capital Outlay 32,103 ‐ ‐ ‐ 32,103 Total Transfers ‐ 500,000 ‐ ‐ 500,000 Total LT Debt ‐ ‐ ‐ 1,727,981 1,727,981 10% Total Personnel 2% Total Expenditures 3,007,232 592,034 237,740 1,727,981 5,564,987 31% Total Supplies 10% Total Maintenance Total Estimated FY 13/14 Main Admin UB LTD TOTAL 9% Total Services Total Personnel 436,452 ‐ 187,107 ‐ 623,559 38% Total Capital Outlay Total Supplies 73,944 ‐ 37,375 ‐ 111,319 Total Maintenance 521,873 ‐ ‐ ‐ 521,873 Total Transfers Total Services 2,172,014 101,321 43,432 ‐ 2,316,767 Total LT Debt Total Capital Outlay (15,441) ‐ 4,061 ‐ (11,380) Total Transfers ‐ 540,000 ‐ ‐ 540,000 Total LT Debt ‐ ‐ ‐ 1,767,860 1,767,860 Total Expenditures 3,188,842 641,321 271,975 1,767,860 5,869,998

Total Budget FY 14/15 Main Admin UB LTD TOTAL Total Personnel 523,114 ‐ 204,066 ‐ 727,180 Total Supplies 66,050 2,500 39,000 ‐ 107,550 Total Estimated FY 13/14 Total Maintenance 418,500 ‐ ‐ ‐ 418,500 Total Services 2,466,392 92,500 54,300 ‐ 2,613,192 11% Total Personnel Total Capital Outlay ‐ ‐ 2,595 ‐ 2,595 2% Total Transfers ‐ 540,000 ‐ 540,000 30% Total Supplies 9% Total LT Debt ‐ ‐ ‐ 1,800,483 1,800,483 Total Maintenance Total Expenditures 3,474,056 635,000 299,961 1,800,483 6,209,500 Total Services 9% 39% Total Capital Outlay Total Transfers Total LT Debt

Three Year Comparison ‐ by Department 7000000 Total Budget FY 14/15 6000000

5000000

4000000 12% Total Personnel 2% 29% Total Supplies 3000000 7% Total Maintenance 2000000 8% Total Services 42% Total Capital Outlay 1000000 Total Transfers 0 Total LT Debt Main Admin UB LTD TOTAL

Actual 12/13 Estimated 13/14

DO IT IN HEWITT 228 UTILITY FUND ‐EXPENSE ASSUMPTIONS

Water expense is very elastic and highly dependent on the weather. Dry, hot weather means higher water sales, and conversely cool, wet weather translates to lower water sales. When sales are higher, more pressure is put upon the system to provide water to its customers. Water is provided for the city from three sources: city wells, City of Waco connection, and City of Lorena connection. Water expense projections are budgeted using a multi‐year trend analysis. This trend is then used to establish an expense "target" based on a normal weather year with no extreme periods of dry or wet weather. This target is reviewed annually and adjusted as the trend analysis and rate changes dictate. Also, any changes in the charges from the City of Waco and Lorena are taken into account and the budget adjusted accordingly.

Water Expense ‐ $1,659,147

Water expense for FY 14‐15 is budgeted to increase from $1,433,606 for FY 13/14 to $1,659,147 in FY 14/15, an increase of $225,541 or less than 15.7%. Water is purchased from the City of Waco and the City of Lorena to supplement the groundwater pumped by the City wells.

Overview ‐ Sources of Water Supplied to the City

Water Produced 1986‐2015 1,000,000,000 900,000,000 Hewitt Waco Lorena 800,000,000 700,000,000 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 ‐

Water Provided by ‐ CITY WELLS

The City owns and operates its water system under permit number 1550031. Water supply is obtained from 4 Trinity wells with a possible pump total of 2.916 million gallons per day. Storage facilities consist of 5.6 million gallons of ground reservoirs and 850,000 gallons of overhead tanks for a total storage capacity of 6.45 million gallons . The water system has the capacity to pump 2,025 gallons per minute to its 5,500+ connections through mains ranging in size from 16 inches down to 4 inches.

Southern Trinity Groundwater District Expense‐ $12,000

Adopted January 27, 2010, the Southern Trinity Groundwater District was created by legislation in the 80th Texas Legislature in 2007 (SB1985), and amended by the 81st Texas Legislature in 2009 (SB2513). The purpose of the District is to conserve, preserve, protect, recharge and prevent the waste of groundwater and to control subsidence caused by groundwater withdrawals, consistent with Section 59, Article XVI, Texas Constitution and Chapter 36, Texas Water Code. Management goals are to establish a District Aquifer Water Level Observation Well Program on aquifers with the District and measure the dept to groundwater in each well at least once annually; provide educational leadership to citizens with the District concerning efficient use of groundwater. To support these legislative mandates the District charges the city .03 cents per 1,000 gallons of water pumped from the ground. Estimated budget expense for maintaining the groundwater district for FY 14/15 is $12,000.

DO IT IN HEWITT 229 Water Provided by ‐ CITY OF WACO CONTRACT The City has entered into a contract with the City of Waco for the purchase of water. The contract was signed in the summer of 1999 and provided the City with up to 365 million gallons of water per year. This amount doubled the water supply for the City. The contract is for twenty years. Each year the cost of providing water to Hewitt goes thru a “true up” calculation by Waco and the demand, surcharge and volume rates are adjusted and billed according to the “true” cost to Waco of supplying the water to Hewitt. The charges are also dependent on the maximum daily usage ceiling of 2 million gallons; penalties incur if Hewitt pulls more than that amount in one day. This contract expires in the Spring of 2019. Following are charts on the Waco Volume Rate and on the Total Annual Cost of the Waco Water Contract.

Waco 'True Up' Expense Waco Volume Rate/ 1000 gal 1200000 $2.50 Water ‐ Demand Expense Water ‐ Surcharge Expense 1000000 $1.85 $1.93 $1.84 $2.00 800000 $1.63 $1.48 $1.31 600000 $1.50 $1.17 $0.98 $0.99 $1.03 400000 $1.00 $0.80 200000 0 $0.50 ‐200000 FY FY FY 06/07 07/08 FY FY $0.00 08/09 09/10 FY 10/11 FY FY FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 11/12 FY 12/13 13/14 14/15

The third chart presents the Estimated Average Usage and the ‘True Up’ Average Usage (these numbers are daily). Also presented is the Estimated Highest Usage vs the ‘True Up’ Highest Usage. Please note that the Highest Usage is an actual high day of water usage. If the city goes over the highest estimated usage it triggers a penalty in the contract. The highest daily usage is more likely to happen in July when a well is down

Water Usage ‐ Average & Maximum Usage Day Note: this data is as of the Waco 'True Up' report and is therefore data from 2 years prior 6.00 4.00 2.00 0.00 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14

Est Average usage per day/MGD "True Up" avg usage/MGD Est Highest day's usage/MGD "True Up" Highest Day/MGD

Wastewater Expense ‐ $307,945 Wastewater System

Under an interlocal agreement, the Waco Metropolitan Area Regional Sewer System (WMARSS) board was created consisting of the city managers from each of the six participating cities. The operation and administration of the system is subject to joint control by the cities through the WMARSS board; however, a separate legal entity was not created. The agreement allows the cities to pool resources and share the costs, risks, and rewards of providing services. In addition, the City operates ten lift stations with capacity of 7,540 gallons per minute and 5,172 connections. Collection lines range in size from ten inches down to six inches in diameter. As a member of the Waco Metropolitan Area Regional Sewer System (WMARSS) the City pays an annual portion of the WMARSS Budget based on the city’s flow rate.

In addition to operational budget expenses, the City shares in the infrastructure expenses, such as the construction of the Bullhide Creek Treatment Plant. Funds were borrowed for this plant in 2007 and it went online in the Spring of 2012. Construction of wastewater lines and lift stations connecting to the new plant are ongoing in the city at this time.

Following is a history of the City’s operations expense in the WMARSS system. Also noted are historical flow percentages used in the determination of the city’s contribution to major projects.

Wastewater Expense History Wastewater Flow % as determined by City of Waco 450000 0.1 400000 0.09 350000 0.08 0.0873 0.07 300000 0.06 250000 0.05 0.0558 0.04 0.0503 200000 0.04744 0.04701 0.04614 0.03 0.046 0.042 0.04294 150000 0.02 100000 0.01 50000 0 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 0 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15

DO IT IN HEWITT 230 CITY OF HEWITT, TEXAS ANNUAL OPERATING AND CAPITAL BUDGET FOR 2014-2015

ADOPTED BY THE HONORABLE MAYOR AND CITY COUNCIL AUGUST 25, 2014

DO IT IN HEWITT 231

UTILITIES MAINTENANCE

DO IT IN HEWITT 232 City of Hewitt Functional Structure

Water & Wastewater Fund‐ Maintenance

City Manager

Director of Utilities

Utility Crew Leader

Equipment Field Operators Assistants (5) (2)

DO IT IN HEWITT 233 Unit Goals in Relation to Overall City Goals

The Hewitt Water & Wastewater Maintenance Department’s Goals uphold the City's Overall Goal #3

The Hewitt Utility Maintenance Department in the Utility Fund specifically applies to the preservation, upkeep and maintenance of the City’s Utility Infrastructure.

More specifically, Goal #3 Objectives, as they apply to Utility Maintenance are:

Obj. 3.1 “Recognize the need for localized water, and investigate ways in which Hewitt can be less dependent on water provided by sources other than the City.”

City council and city manager working with Comprehensive Plan of 2022 and within the developing constrictions of ground water usage to ensure City is self sufficient to the fullest extent possible with regard to water supply.

Obj. 3.2 “Investigate challenges related to water pressure, and ensure that citizens are made aware of possible reasons for such challenges, including high water usage. “

Utility Maintenance Director works closely under the direction of the City Manager to monitor and document water usage.

Obj. 3.3 “Ensure that there is adequate water and wastewater available to serve existing areas and future growth areas by studying the usage and capacity of existing systems and the feasibility of expanding those systems. “

City manager working with Utility Maintenance Director and city engineer to study present and near future water supply infrastructure needs. City Manager is also joint member on local wastewater system currently in expansion mode that affects the ability of the city to service the needs of the citizens of Hewitt.

Obj. 3.4 “Water Distribution: Ensure that water system meets quality standards, meeting EPA and TNRCC standards. Reduce current water loss rate by 5% by developing leak detection program.”

City Manager initialized a Infiltration Study in 2006-2007 which is ongoing to date. The study is on the sewer infrastructure and leak detection. Water infrastructure leakage is noted on ongoing reports from the Utility Billing Supervisor to the Utility Maintenance Director in his Quarterly Reports.

Obj. 3.5 “Pump Maintenance: Provide high quality service to our customers 24 hours a day with experienced well-trained water and wastewater system operators.”

Utility Maintenance Director ensures the training and certification of all employee connected with Water and Wastewater systems.

Obj. 3.6 “Wastewater Collection: Maintain all public wastewater collection system lines in free-flowing condition to protect the public health and environment.”

Utility Maintenance Director ensures the training and certification of all employee connected with Water and Wastewater systems.

DO IT IN HEWITT 234 ANNUAL BUDGET UTILITY FUND FISCAL YEAR 2014-2015 UTILITY MAINTENANCE

MISSION

To operate and maintain the City’s water system and waste water collection system in an efficient manner while protecting public health and providing excellent customer service.

DESCRIPTION OF DEPARTMENT  Operates and maintains water distribution system.  Maintains SCADA (Supervisory Control and Data Acquisition) wireless readings on water pumping stations  Operates and maintains waste water collection system with 5,800+ connections.  Operates wells, storage and pumping facilities.  Operates and maintains sewer lift stations.  Maintains 5,000+ wireless water meters with AMR (Automated Meter Reading)  Makes water and sewer taps.  Perform required monitoring for public health.  Perform customer service at customers’ service addresses.

GOALS  Continue with installation of new fire hydrants.  Transfer water accounts that are outside the city limits to the City of Waco in the Spring of 2013.  Complete moving water and sewer lines, as well as sewer lift stations in connection with the widening of interstate 35 being conducted by TxDot (Texas Department of Transportation).  Assist with construction of water tower on north side of city.  Complete construction of water and sewer service to new public safety facility location  Assist with ongoing bond projects

ACCOMPLISHMENTS  Installed points of inflow and infiltration prevention devices on manholes that are identified in the current sewer system survey.  Continued with installation of new fire hydrants  Assisted with replacement of old meters with wireless AMR (Automated Meter Reading) meters throughout city

DO IT IN HEWITT 235 UTILITY MAINTENANCE

FY 14‐15 BUDGET Personnel, Capital Outlay 521,700 Supplies, 77,250 Maintenance, 529,500

Services, 2,722,042

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimated Budget Actual Budget Personnel 523,114 436,452 500,403 406,035 419,083 Supplies 66,050 73,944 71,250 64,395 64,250 Maintenance 418,500 521,873 424,500 412,604 275,500 Services 2,466,392 2,172,014 2,393,238 2,092,095 2,301,292 Capital Outlay ‐ (15,441) 50,000 32,103 6,000 Total 3,474,056 3,188,842 3,439,391 3,007,232 3,066,125

Staffing FY 14‐15 FY 13‐14 FY 11‐12 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Community Services Director 00011 Director of Utilities 11111 Secretary 00001 Utility Crew Leader 11110 Equipment Operator 22223 Field Assistant 1 55555 Total 9 9 9 10 11

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual* Actual Actual Meter Change Outs* 250 500 6253 452 475 New Connections 58 70 63 45 52 Lift Stations Maintained 55588 Well Sites Maintained** 55577

* In FY 12‐13, all inside city water meters were replaced by wireless meters. ** In FY 11‐12, the city transferred 2 wells outside the city limits to the City of Waco.

DO IT IN HEWITT 236 UTILITY FUND UTILITY MAINTENANCE FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET ESTIMATED BUDGET ACTUAL BUDGET 20‐50100‐91‐00 SALARIES ‐ W&S MAINTENANCE 347,966.00 298,082.00 332,425.05 270,582.83 273,162.00 20‐50105‐91‐00 SALARIES ‐ OVERTIME 20,000.00 20,187.00 20,000.00 26,198.34 20,000.00 20‐50110‐91‐00 SALARIES ‐ PART TIME 2,000.00 ‐ 8,000.00 ‐ 8,000.00 20‐50120‐91‐00 SOCIAL SECURITY 28,303.00 23,737.00 27,572.52 22,308.67 25,752.00 20‐50125‐91‐00 TEXAS MUNICIPAL RETIREMEN 56,345.00 47,386.00 52,451.42 43,609.81 39,969.00 20‐50130‐91‐00 EMPLOYEE INSURANCE 59,000.00 39,653.00 50,454.00 35,600.00 40,800.00 20‐50135‐91‐00 PRE‐EMP/SHOTS 500.00 500.00 500.00 1,104.60 400.00 20‐50140‐91‐00 UNEMPLOYMENT INSURANCE 1,500.00 ‐ 1,500.00 ‐ 1,500.00 20‐50145‐91‐00 WORKER'S COMPENSATION 7,500.00 6,907.00 7,500.00 6,630.41 9,500.00 523,114.00 436,452.00 500,402.99 406,034.66 419,083.00 20‐50205‐91‐00 CHEMICALS 19,000.00 19,013.00 24,000.00 14,221.42 20,000.00 20‐50215‐91‐00 FUEL 31,000.00 36,914.00 30,000.00 36,513.24 25,000.00 20‐50220‐91‐00 JANITORIAL SUPPLIES 500.00 ‐ 500.00 75.98 500.00 20‐50230‐91‐00 OFFICE SUPPLIES 800.00 687.00 1,000.00 1,514.27 1,000.00 20‐50235‐91‐00 OTHER EQUIPMENT & SUPPLIE 14,000.00 16,365.00 15,000.00 11,593.54 17,000.00 20‐50245‐91‐00 UNIFORM PURCHASE 750.00 965.00 750.00 477.00 750.00 66,050.00 73,944.00 71,250.00 64,395.45 64,250.00 20‐50300‐91‐00 BUILDING MAINTENANCE 1,000.00 2,769.00 1,000.00 4,297.35 2,000.00 20‐50350‐91‐00 FLEET MAINTENANCE 7,500.00 5,937.00 7,500.00 4,067.81 7,500.00 20‐50355‐91‐00 HEAVY EQUIPMENT MAIN 5,000.00 3,014.00 6,000.00 5,313.95 6,000.00 20‐50360‐91‐00 WATER MAINTENANCE 110,000.00 220,017.00 80,000.00 250,951.77 150,000.00 20‐50362‐91‐00 WATER METERS 40,000.00 21,330.00 40,000.00 ‐ ‐ 20‐50363‐91‐00 FIRE HYDRANT MAINTENANCE 25,000.00 ‐ ‐ ‐ ‐ 20‐50365‐91‐00 WATER PLANT MAINTENANCE 165,000.00 223,612.00 200,000.00 64,607.11 50,000.00 20‐50370‐91‐00 SEWER MAINTENANCE 25,000.00 13,374.00 30,000.00 37,119.51 30,000.00 20‐50375‐91‐00 LIFT STATION MAINTENANCE 40,000.00 31,820.00 60,000.00 46,246.50 30,000.00 418,500.00 521,873.00 424,500.00 412,604.00 275,500.00 20‐50403‐91‐00 CONTINGENCY 1,500.00 ‐ 1,500.00 215.75 1,500.00 20‐50404‐91‐00 DUES & SUBSCRIPTIONS 2,500.00 701.00 2,500.00 562.50 2,500.00 20‐50405‐91‐00 GIS/MAPPING 14,000.00 10,600.00 20,000.00 ‐ ‐ 20‐50406‐91‐00 ELECTRIC SERVICE 375,000.00 236,871.00 500,000.00 319,385.59 500,000.00 20‐50407‐91‐00 ENGINEERING SERVICES ‐ 17,192.00 10,000.00 782.00 5,000.00 20‐50408‐91‐00 SERVICE CONTRACTS 35,000.00 35,514.00 40,000.00 4,003.94 1,500.00 20‐50410‐91‐00 LABORATORY SERVICE 10,000.00 10,524.00 15,000.00 3,198.00 13,000.00 20‐50412‐91‐00 EFFICIENCY PROGRAMS 6,000.00 ‐ ‐ ‐ ‐ 20‐50414‐91‐00 NATURAL GAS SERVICE 1,300.00 915.00 1,300.00 785.40 1,300.00 20‐50420‐91‐00 TELECOMMUNICATION 7,000.00 7,003.00 7,000.00 6,765.92 7,000.00 20‐50421‐91‐00 TRAVEL & TRAINING 7,500.00 4,217.00 8,500.00 6,353.28 8,500.00 20‐50422‐91‐00 UNIFORM CLEANING 3,500.00 3,528.00 3,000.00 2,890.78 3,000.00 20‐50423‐91‐00 WATER CONTRACT 1,659,147.00 1,706,142.00 1,433,606.00 1,402,692.57 1,400,000.00 20‐50424‐91‐00 WATER QUALITY REPORT 5,000.00 ‐ 5,000.00 ‐ 9,000.00 20‐50425‐91‐00 STGD‐GROUNDWATER 12,000.00 9,746.00 32,000.00 23,908.58 32,000.00 20‐50426‐91‐00 TCEQ SERVICES (PER METER) 19,000.00 15,510.00 19,000.00 17,402.56 14,000.00 20‐50427‐91‐00 SEWER CONTRACT 307,945.00 113,551.00 294,832.00 303,148.00 302,992.00 2,466,392.00 2,172,014.00 2,393,238.00 2,092,094.87 2,301,292.00 20‐50610‐91‐00 OFFICE EQUIPMENT ‐ ‐ ‐ ‐ 6,000.00 20‐50615‐91‐00 OTHER EQUIPMENT ‐ ‐ ‐ 2,118.10 ‐ 20‐50620‐91‐00 OTHER IMPROVEMENTS (15,441.00) 50,000.00 29,984.98 ‐ 20‐50621‐91‐00 IMP ON LIFT STATIONS ‐ ‐ ‐ ‐ 20‐50635‐91‐00 VEHICLES ‐ ‐ ‐ ‐ ‐ (15,441.00) 50,000.00 32,103.08 6,000.00 3,474,056.00 3,188,842.00 3,439,390.99 3,007,232.06 3,066,125.00 To be Financed: F250 Supercab Chassis w/service bed (2) 63,832.00

DO IT IN HEWITT 237

UTILITIES ADMINISTRATION

DO IT IN HEWITT 238 UTILITY ADMINISTRATION

FY 14‐15 BUDGET Maintenance, Supplies, 2,500 92,500

Transfers, 540,000

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimated Budget Actual Budget Personnel ‐ ‐ ‐ ‐ ‐ Supplies 2,500 ‐ 2,500 768 1,650 Maintenance 92,500 101,321 91,500 91,266 86,000 Services ‐ ‐ ‐ ‐ ‐ Capital Outlay ‐ ‐ ‐ ‐ ‐ Transfers 540,000 540,000 540,000 500,000 500,000 Total 635,000 641,321 634,000 592,034 587,650

DO IT IN HEWITT 239 UTILITY FUND UF ADMINISTRATION FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET ESTIMATED BUDGET ACTUAL BUDGET 20‐50210‐93‐00 ELECTION EXPENSE $ 2,500.00 $ ‐ $ 2,500.00 $ 767.55 $ 1,650.00 2,500.00 ‐ 2,500.00 767.55 1,650.00 20‐50402‐93‐00 AUDIT SERVICE $ 10,000.00 $ 10,000.00 $ 11,500.00 $ 11,500.00 $ 11,500.00 20‐50404‐93‐00 DUES & SUBSCRIPTIONS 3,000.00 3,414.00 3,500.00 1,998.00 3,500.00 20‐50407‐93‐00 ENGINEERING SERVICES 15,000.00 16,495.00 10,000.00 23,310.50 5,000.00 20‐50411‐93‐00 LEGAL SERVICES 12,500.00 7,658.00 12,500.00 9,348.50 13,000.00 20‐50412‐93‐00 MISC PROFESSIONAL SERV 12,000.00 23,722.00 12,000.00 7,739.64 12,000.00 20‐50415‐93‐00 PROPERTY\LIABILITY INS 35,000.00 35,372.00 35,000.00 32,566.14 33,000.00 20‐50421‐93‐00 TRAVEL AND TRAINING 5,000.00 4,660.00 7,000.00 4,803.69 8,000.00 92,500.00 101,321.00 91,500.00 91,266.47 86,000.00 20‐50700‐93‐00 WATER FRANCHISE FEE $ 140,000.00 $ 140,000.00 $ 140,000.00 $ 135,000.00 $ 135,000.00 20‐50705‐93‐00 SEWER FRANCHISE FEE 130,000.00 130,000.00 130,000.00 125,000.04 125,000.00 20‐50710‐93‐00 W&S ADMIN FEE 230,000.00 230,000.00 230,000.00 200,000.04 200,000.00 20‐50715‐93‐00 W&S PAYT IN LIEU OF TAX 40,000.00 40,000.00 40,000.00 40,000.08 40,000.00 $ 540,000.00 540,000.00 540,000.00 500,000.16 500,000.00 $ 635,000.00 $ 641,321.00 $ 634,000.00 $ 592,034.18 $ 587,650.00

DO IT IN HEWITT 240

UTILITIES BILLING

DO IT IN HEWITT 241 City of Hewitt Functional Structure

Water & Wastewater Fund‐ Maintenance

City Manager

Director of Utilities

Utility BIlling Supervisor

Clerk Assistants (3)

DO IT IN HEWITT 242 Unit Goals in Relation to Overall City Goals

The Hewitt Utility Billing Department’s Goals uphold the City's Overall Goal #3 & #7

Goal #3 Objectives are:

Obj 3.2 “Investigate challenges related to water pressure, and ensure that citizens are made aware of possible reasons for such challenges, including high water usage.”

Please see Accomplishments. Utility Billing employees are first on the line to handle comments from the customers on issues involving water pressure, leaks and high bills. They are highly trained and highly motivated to assist their customers.

Goal #7 Objectives are:

Obj 3.2 “Make doing business with the City more user-friendly by offering services, such as paying for water bills, with the Internet.”

Please see Accomplishments & Goals of Utility Billing department.

DO IT IN HEWITT 243 ANNUAL BUDGET UTILITY FUND FISCAL YEAR 2014-2015 UTILITY BILLING

MISSION

To provide timely billing and collection of City utilities; water, sewer and garbage; and to provide courteous and responsive service to all.

DESCRIPTION OF DEPARTMENT  Maintain deposits, billing and payment information for all City utility customers.  Perform billing of customer utility connections, discontinued service, transfer of service, service work orders, insufficient checks, adjustments, correction of addresses, and service work orders.  Handle customer inquiries and complaints about utility accounts.

GOALS  To continuously review operations to further streamline services and provide superior customer service.  Provide additional conveniences to new customers by providing a link to an application for deposit for new service on our web site; allow customers to request service by phone with deposit fees paid by credit card, mail or payment drop box.

 To continue to receive specialized training, educate and develop employees in order to maintain a superior utility billing department.

ACCOMPLISHMENTS  Increased organization and efficiency of office by intercommunication and knowledge of all aspects of operating the utility billing department.  Improved relations with customers by listening to them, and continually striving for satisfaction.  Improved relations with the maintenance department and earned their respect by listening to them, cooperating with them to correct problems and assuring them that their job is just as important as ours.  Moved utility billing operations from city hall to upgraded facilities in new location  Assisted with smooth transfer of accounts for those customers outside of city limits water to the city of Waco  Increased number of automatic payment customers  Developed smooth interaction among utility billing department employees and provided a nice business atmosphere to work in by organizing files and work areas.  Continued with Dataprose for printing and mailing of utility bills, which continues to help increase efficiency in the department.  American Municipal Services continues to collect on unpaid final accounts that have increased revenue.  Service charges on delinquent accounts continue to increase revenue.  Assisted with operability of AMR (Automatic Meter Reading) interface with STW billing software  Assisted with setting up new kiosk for customer service in lobby  Implement the Orion System-check reader, imager and card solution system that will interface with STW Software, allow for remote capture of checks, verify a NSF check and allow credit/debit card payments.

DO IT IN HEWITT 244 UTILITY BILLING

FY 14‐15 BUDGET Capital Outlay, 2,595 Services, 54,300

Supplies, 39,000

Personnel, 204,066

Expenditure Summary FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 Classification Budget Estimated Budget Actual Budget Personnel 204,066 187,107 203,756 162,269 194,831 Supplies 39,000 37,375 42,500 37,106 39,500 Maintenance ‐ ‐ ‐ ‐ ‐ Services 54,300 43,432 49,800 37,358 45,500 Capital Outlay 2,595 4,061 2,500 1,008 3,000 Total 299,961 271,975 298,556 237,740 282,831

Staffing FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Position FTE Positions FTE Positions FTE Positions FTE Positions FTE Positions Utility Billing Supervior 11111 Utility Billing Clerks 33322 Administrative Assistant 00000 Total 44433

Workload/Demand Measures FY 14‐15 FY 13‐14 FY 12‐13 FY 11‐12 FY 10‐11 Measurement Budget Estimated Actual Actual Actual Number of Customers* 5,800 5,200 5,110 5,916 5,876 Bills Generated Annually 61,000 62,400 61,320 63,000 69,300 Late Notices Annually 12,000 12,500 13,800 14,000 14,000 Work Orders Load Annually 6,100 6,300 6,200 6,100 6,100

** In FY 12‐13, the city of Hewitt reached an agreement with the city of Waco whereby Waco took over providing water service to prior Hewitt customers residing outside of the city limits. 600+ accounts were transferred in October 2012.

DO IT IN HEWITT 245 UTILITY FUND UTILITY BILLING FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET ESTIMATED BUDGET ACTUAL BUDGET 20‐50100‐94‐00 SALARIES ‐ UTILITY BILLING$ 140,590.00 $ 131,945.00 $ 139,600.16 $ 113,997.70 $ 133,040.00 20‐50105‐94‐00 SALARIES ‐ OVERTIME 3,000.00 1,430.00 5,000.00 5,948.24 6,000.00 20‐50110‐94‐00 SALARIES ‐ PART TIME 3,000.00 3,323.00 3,000.00 1,195.00 3,000.00 20‐50120‐94‐00 SOCIAL SECURITY 11,214.00 10,226.00 11,291.41 8,988.94 10,866.00 20‐50125‐94‐00 TMRS 21,987.00 19,857.00 21,690.02 17,418.61 20,425.00 20‐50130‐94‐00 EMPLOYEE INSURANCE 23,600.00 19,954.00 22,424.00 14,366.34 20,400.00 20‐50135‐94‐00 PRE‐EMP/SHOTS 125.00 ‐ 250.00 ‐ 500.00 20‐50140‐94‐00 UNEMPLOYMENT INS 100.00 ‐ 100.00 ‐ 100.00 20‐50145‐94‐00 WORKERS COMPENSATION 450.00 372.00 400.00 354.41 500.00 $ 204,066.00 $ 187,107.00 $ 203,755.59 $ 162,269.24 $ 194,831.00 20‐50210‐94‐00 CASH OVER/SHORT ‐ ‐ ‐ 11.04 ‐ 20‐50230‐94‐00 OFFICE SUPPLIES 4,000.00 4,698.00 2,500.00 7,616.14 3,500.00 20‐50240‐94‐00 POSTAGE 35,000.00 32,677.00 40,000.00 29,478.34 36,000.00 $ 39,000.00 $ 37,375.00 $ 42,500.00 $ 37,105.52 $ 39,500.00 20‐50404‐94‐00 DUES & SUBSCRIPTIONS ‐ ‐ ‐ ‐ 1,500.00 20‐50408‐94‐00 SERVICE CONTRACTS 31,000.00 23,676.00 25,000.00 24,381.33 20,000.00 20‐50412‐94‐00 PROFESSIONAL SERVICES 18,000.00 16,559.00 18,000.00 9,645.45 18,000.00 20‐50420‐94‐00 TELECOMMUNICATION EXP 1,800.00 1,107.00 1,800.00 1,598.77 2,000.00 20‐50421‐94‐00 TRAVEL AND TRAINING 3,500.00 2,090.00 5,000.00 1,732.07 4,000.00 $ 54,300.00 $ 43,432.00 $ 49,800.00 $ 37,357.62 $ 45,500.00 20‐50610‐94‐00 OFFICE EQUIPMENT 2,595.00 4,061.00 2,500.00 1,007.86 3,000.00 $ 2,595.00 $ 4,061.00 $ 2,500.00 $ 1,007.86 $ 3,000.00 $ 299,961.00 $ 271,975.00 $ 298,555.59 $ 237,740.24 $ 282,831.00

DO IT IN HEWITT 246

UTILITIES DEBT SERVICE

DO IT IN HEWITT 247 UTILITY FUND UTILITY FUND DEBT SERVICE FY 14/15 FY 14‐15 FY 13‐14 FY 13‐14 FY 12‐13 FY 12‐13 ACCOUNT DESCRIPTION BUDGET ESTIMATED BUDGET ACTUAL BUDGET 20‐50500‐95‐00 AGENT FEES $ 2,000.00 $ 2,900.00 $ 1,000.00 $ 2,100.00 $ ‐ 20‐50537‐95‐00 04 COMB TAX & REV CO ‐ 68,148.00 113,704.75 115,702.32 115,702.00 20‐50540‐95‐00 07 CERT OF OBL 619,990.00 622,103.00 622,102.50 618,577.56 618,578.00 20‐50564‐95‐00 09 REF GENERAL OBL 31,218.82 115,987.00 115,987.14 116,220.12 116,220.00 20‐50565‐95‐00 10 COMB TAX & REV CO 389,537.50 359,688.00 359,687.50 359,837.52 359,838.00 20‐50566‐95‐00 12 COMB TAX & REV CO 289,716.54 283,114.00 283,114.56 275,754.12 275,754.00 20‐50569‐95‐00 13 REF GEN OBL (04) 148,658.88 54,469.00 ‐ ‐ ‐ 20‐50570‐95‐00 PINNACLE LEASING #1 ‐ 62,821.00 63,169.51 62,822.21 63,170.00 20‐50571‐95‐00 PINNACLE LEASE #3 116,378.77 116,379.00 120,019.13 116,377.40 120,019.00 20‐50572‐95‐00 PINNACLE LEASE #4 89,756.51 82,251.00 82,251.27 60,589.70 60,590.00 20‐50574‐95‐00 BB&T CAPITAL 113,226.12 ‐ ‐ ‐ ‐ $ 1,800,483.14 $ 1,767,860.00 $ 1,761,036.36 $ 1,727,980.95 $ 1,729,871.00

DO IT IN HEWITT 248

SUPPLEMENTAL INFORMATION SECTION

Section 4 of 4:

 Introductory  Budget Summary  Financial/Operational  Supplemental Information

DO IT IN HEWITT 249

Supplemental Section

Explanation of the Budget Document

The budget document is presented in four sections, the Introductory Section, the Budget Summaries Section, the Financial / Operational Section and the Supplemental Section. This is the Supplemental Section.

Tax Information The Tax Information section contains an overview of the City’s ad valorem tax. This section includes a narrative, schedules on Ad Valorem Tax Revenue, and the certified tax roll values for the current Tax Roll Year.

Bonded Debt The Bonded Debt section contains an overview of the City’s long-term debt. This section includes a narrative, summaries and charts of long-term debt for the city, and detailed again by fund.

Ordinances The Ordinances sections contains copies of the documents used to confirm passage of the budget and the date the budget was approved by the City Council. Personnel The Personnel section contains an overview of the City’s personnel. This section includes a position classification schedule, a staffing plan by position, and a salary schedule for the current year.

Glossary The Glossary section contains definitions of commonly used budget words, i.e. words that may be used within this budget document.

Index The Index section lists documents by name and the page number on which they can be found.

DO IT IN HEWITT 250

TAX INFORMATION

DO IT IN HEWITT 251 TAX INFORMATION

TAX RATE

All taxable property within the City is subject to the assessment, levy and collection of a continuing, direct annual ad valorem tax sufficient to provide for the payment of principal and interest on all general obligation tax debt within the limits prescribed by law. Article XI, Section 5, of the Texas Constitution is applicable to the City and limits its maximum ad valorem tax rate to $2.50 per $100 assessed valuation for all City purposes. The City=s rate is well below this limit.

By each September 1, or as soon thereafter as practicable, the City Council adopts a tax rate per $100 assessed valuation for the current year. The tax rate consists of two components: (1) a rate for funding of maintenance and operations expenditures, and (2) a rate for debt service.

STATE REQUIREMENTS

Under the State Tax Code, the City must annually calculate and publicize its "effective tax rate" and "rollback tax rate". The City Council may not adopt a tax rate that produces more revenue than in the prior year until it has held a public hearing on the proposed revenue increase. The hearing is held following a published notice to the taxpayers and otherwise complying with the Tax Code. If the adopted tax rate exceeds the rollback tax rate, the qualified voters of the City by petition, may require that an election be held to determine whether or not to reduce the tax rate adopted for the current year to the rollback rate.

"Effective tax rate" means the rate that will produce last year's maintenance and operation tax levy (adjusted) from this year's values (adjusted). "Adjusted" means lost values are not included in the calculation of last year's taxes and new values are not included in this year's taxable values.

"Rollback tax rate" means the rate that will produce last year's maintenance and operation tax levy (adjusted) multiplied by 1.08 plus a rate that will produce this year's debt service form this year's values (unadjusted) divided by the anticipated tax collection rate.

PAYMENT OF TAXES

Current tax notices are mailed out in early October of each year. Current taxes are due by January 31 of each year and incur penalty and interest after that date. There is a 15% attorney fee added after July 1. The penalty and interest rates are as follows:

Month of Payment Penalty Interest Total February 6% 1% 7% March 7% 2% 9% April 8% 3% 11% May 9% 4% 13% June 10% 5% 15% July 12% 6% 18%

DO IT IN HEWITT 252 DO IT IN HEWITT 253 MCLENNAN County 2014 CERTIFIED TOTALS As of Certification 62 - HEWITT, CITY OF Property Count: 5,631 Grand Totals 7/25/2014 1:09:04PM

Land Value Homesite: 80,039,419 Non Homesite: 73,078,457 Ag Market: 12,282,686 Timber Market: 0 Total Land (+) 165,400,562

Improvement Value

Homesite: 498,355,404 Non Homesite: 164,210,205 Total Improvements (+) 662,565,609

Non Real Count Value

Personal Property: 486 52,160,390 Mineral Property: 00 Autos: 00Total Non Real (+) 52,160,390 Market Value = 880,126,561 Ag Non Exempt Exempt

Total Productivity Market: 12,282,686 0 Ag Use: 204,130 0 Productivity Loss (-) 12,078,556 Timber Use: 00Appraised Value = 868,048,005 Productivity Loss: 12,078,556 0 Homestead Cap (-) 5,427,402

Assessed Value = 862,620,603

Total Exemptions Amount (-) 156,533,503 (Breakdown on Next Page)

Net Taxable = 706,087,100

APPROXIMATE TOTAL LEVY = NET TAXABLE * (TAX RATE / 100) 3,810,589.68 = 706,087,100 * (0.539677 / 100)

Tax Increment Finance Value: 0 Tax Increment Finance Levy: 0.00

62/8026 Page 5 of 13 True Automation, Inc. DO IT IN HEWITT 254 CITY OF HEWITT AD VALOREM TAX REVENUE FY 14/15

TAX ROLL 2014 Current tax rate: 0.539677 CERTIFIED TAX VALUE REVENUE LAND$ 165,400,562 $ 892,629 Homesite 80,039,419 Non‐Homesite 73,078,457 Ag Market 12,282,686 REAL ESTATE 662,565,609 3,575,714 Homesite 498,355,404 Non Homesite 164,210,205 NON‐REAL ESTATE 52,160,390 281,498 TOTAL MARKET VALUE$ 880,126,561 $ 4,749,841 AGRICULTURAL (12,078,556) (65,185) TOTAL APPRAISED VALUE$ 868,048,005 $ 4,684,655 HOMESTEAD APPRAISAL >10% (5,427,402) (29,290) TOTAL ASSESSED VALUE$ 862,620,603 $ 4,655,365 EXEMPTIONS: Count: ABATEMENT (L)* 1 (1,263,372) CHARITABLE (L) 1 (7,100) DISABLED PERSON (L) 97 (336,000) DISABLED VETERAN (S) 287 (2,111,180) DV FULL EXEMPTION (S) 111 (15,869,002) FULL EXEMPTION (S) 172 (37,637,104) 20% HOMESTEAD (L) 3366 (95,424,430) OVER AGE 65 (L) 1039 (3,885,315) (156,533,503) (844,775) Local (L); State (S) Exemption 5074 NET TAXABLE VALUE$ 706,087,100 $ 3,810,590 Estimated Loss in Value (2,000,000) (10,794) $ 704,087,100 $ 3,799,796 98% Estimated Current Tax Revenue$ 3,723,800 New Market Value: 16,629,250 Estimated Delinquent Tax Revenue 29,531 New Taxable Value: 15,119,545 Estimated Total Tax Revenue$ 3,753,331

DO IT IN HEWITT 255 Ad Valorem Tax Revenue (continued)

LOSS OF REVENUE FROM EXEMPTIONS EXEMPTIONS FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 AGRICULTURAL 29,465 33,361 32,058 54,854 69,060 65,268 69,874 65,185 HOMESTEAD >10% 5,280 15,222 20,016 7,582 4,401 9,223 1,714 29,290 CHARITABLE ‐ ‐ ‐ ‐ ‐ ‐ 38 38 ABATEMENT 10,350 9,483 8,969 7,834 7,834 4,744 4,972 6,818 DISABLED PERSON 1,937 2,266 2,285 2,139 1,999 1,607 1,856 1,813 DISABLED VETERAN 10,996 11,185 32,657 8,939 9,344 9,855 10,549 11,394 DV FULL EXEMPTION ‐ ‐ ‐ 52,302 58,051 71,389 81,122 85,641 FULL EXEMPTION 67,103 72,818 77,297 111,021 118,707 130,957 155,535 203,119 20% HOMESTEAD 374,732 409,640 426,439 436,312 435,319 465,345 480,919 514,984 OVER AGE 65 11,776 12,144 13,073 14,435 14,935 18,048 20,119 20,968 TOTAL 511,639 566,119 612,794 695,418 719,650 776,434 826,698 939,251

EFFECT OF 1/2 cent Pledge of SALES TAX toward Lowering Property Tax Rate Half Cent ROLLBACK ROLLBACK Sales Tax Equals Tax RATE before RATE after Collected Rate of Sales Tax Sales Tax SALES TAX EFFECT FY 12/13$ 435,925 0.068605 0.603207 0.534602 SALES TAX EFFECT FY 13/14$ 455,551 0.069257 0.614690 0.545433 SALES TAX EFFECT FY 14/15$ 498,568 0.070645 0.651504 0.580859

TAX RATE BREAKDOWN FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 MAINTENANCE & OPERATIONS 0.289990 0.295606 0.327575 0.360057 0.358917 0.363482 0.385977 0.360046 DEBT SERVICE 0.194210 0.188594 0.156625 0.139771 0.156060 0.151495 0.153700 0.179631 TOTAL 0.484200 0.484200 0.484200 0.499828 0.514977 0.514977 0.514977 0.539677

PROPERTY TAX COLLECTIONS Collected Within the Fiscal Year of the Levy Tax Levy Over/ Over/ for the Collected (Under) Percentage Tax Budgeted (Under) Percentage Tax Roll Year Fiscal Year Amount Levy of Levy Rate Revenue Budget of Budget 2002 1,523,810 1,523,699 111 99.99% 0.455000 1,467,776 55,923 103.81% 2003 1,641,930 1,641,802 128 99.99% 0.484200 1,622,485 19,317 101.19% 2004 1,865,188 1,862,729 2,459 99.87% 0.484200 1,817,862 44,867 102.47% 2005 2,079,974 2,076,140 3,834 99.82% 0.484200 2,038,000 38,140 101.87% 2006 2,256,955 2,253,851 3,104 99.86% 0.484200 2,231,938 21,913 100.98% 2007 2,458,798 2,455,098 3,700 99.85% 0.484200 2,414,647 40,451 101.68% 2008 2,620,292 2,614,873 5,419 99.79% 0.484200 2,596,195 18,678 100.72% 2009 2,840,575 2,836,545 4,030 99.86% 0.484200 2,814,941 21,604 100.77% 2010 2,989,574 2,980,294 9,280 99.69% 0.499828 2,904,142 76,152 102.62% 2011 3,153,672 3,138,939 14,733 99.53% 0.514977 2,885,850 253,089 108.77% 2012 3,275,310 3,258,971 16,339 99.50% 0.514977 3,100,000 158,971 105.13% 2013** 3,530,134 3,494,592 35,543 98.99% 0.539677 3,248,000 246,592 107.59% 2014 $ 3,797,385 0.539677 3,767,776 *Source: McLennan County Appraisal Tax District, 2013 Certified Tax Roll and McLennan County Tax Assessor, 2013 Tax Rate Calculation **Property Tax Collections table source: McLennan County Tax Assessor. 2013 Collected Amount is per financial records of the city, collections received by McLennan County Tax Assessor, including delinquent amounts from prior years. Note: Revenue for 2014 is thru August 2014.

DO IT IN HEWITT 256

DEBT INFORMATION

DO IT IN HEWITT 257 BONDED DEBT OVERVIEW

The cost of acquisition for large capital items and the construction of infrastructure sometimes exceed the amount of funding available from operating revenues and resources. When this occurs, the City may issue long‐ term debt obligations, typically bonds and certificates of obligation. These issues require greater legal formality than bank loans and some may also require voter approval.

TYPES OF DEBT

There are three types of bond debt. Currently the City of Hewitt has General Obligation Debt from Refunding Bond at a lower interest rate and Combination Tax and Revenue Debt or CO.

General obligation debt is backed by the full faith and credit of the City; in other words, the debt is guaranteed by a pledge of ad valorem taxes.

Combination debt is backed by a cross‐pledge of taxes and revenues from a specific source of revenue. The City's combination debt is repaid with a combination of ad valorem taxes, water and sewer revenues, and sales tax revenues.

Revenue debt is payable from a specific source of revenue and does not affect the ad valorem tax rate. Revenue debt typically has a "coverage" requirement pursuant to the particular debt covenants. Coverage is the ratio of net pledged revenues to related debt service for a specific year.

A schedule of outstanding debt issues and debt service requirements appears in this section.

DEBT LIMIT

No direct funded debt limitation is imposed on the City under current State law or the City Charter. Article X1, Section 5, of the Texas Constitution is applicable to the City, and limits its maximum ad valorem rate to $2.50 per $100 of assessed valuation for all City purposes. Administratively, the Attorney General of the State of Texas will permit allocation of $1.25 of the maximum tax rate for general obligation debt service. The City's tax rate is well below all of the aforementioned limits.

Assessed Value, Certified Tax Roll $ 706,087,100 Limit on Amount Designated for Debt Service 1.25% Legal Debt Service Limit $ 8,826,088

General Obligation Debt Service $ 1,115,889

Debt Service Margin$ 7,710,199

DO IT IN HEWITT 258 TOTAL DEBT OUTSTANDING

AT FY 14/15

General Fund Obligations Original Principal Principal Issue Outstanding New Principal Outstanding Designated for: Issue Amount 10/1/2014 Issue Payments 10/1/2015 Refunded Bonds for Street & Utility Improvements 2009 GO Ref 3,145,000 336,680 (63,792) 272,888 (Cross Pledged:GF 70.88%;WS 29.12%) *

Street, Public Facilities, & Utility Improvements 2010 CO 9,975,000 2,180,000 (45,000) 2,135,000 (Cross‐Pledged: GF 22.055%; WS 77.945%)

Street, Public Facilities, & Utility Improvements 2012 CO 2,905,000 2,710,705 (111,295) 2,599,410 (Cross‐Pledged: GF 37.7 %; WS 62.3%)

Street Improvements (previously 2001 CO) 2012 GO Ref 940,000 750,000 (95,000) 655,000

Public Safety Facilties 2013 CO 3,850,000 3,850,000 (120,000) 3,730,000

Street & Utility Improvements (was 2004 CO) 2013 GO Ref 1,892,100 1,852,350 (127,200) 1,725,150 (Cross‐Pledged:GF 53%;WS 47%)

Library/City Hall Facilities 2014 CO 6,835,000 ‐ 6,835,000 ‐ 6,835,000 Current GF Debt Outstanding 11,679,735 6,835,000 (562,287) 17,952,448

Water & Wastewater Fund Obligations Original Principal Principal Issue Outstanding New Principal Outstanding Designated for: Issue Amount 10/1/2014 Issue Payments 10/1/2015 Waco Metropolitan Area Regional Sewer System 2007 CO 9,250,000 7,950,000 (295,000) 7,655,000

Refunded Bonds for Street & Utility Improvements 2009 GO Ref 3,145,000 138,320 (26,208) 112,112 Cross Pledged:GF 70.88%;WS 29.12% *

Street, Public Facilities, & Utility Improvements 2010 CO 9,975,000 7,765,000 (35,000) 7,730,000 (Cross‐Pledged: GF 22.055%; WS 77.945%)

Street, Public Facilities, & Utility Improvements 2012 CO 4,795,000 4,474,295 (183,705) 4,290,590 (Cross‐Pledged: GF 37.7 %; WS 62.3%)

Street & Utility Improvements (previously 2004 CO) 2013 GO Ref 1,677,900 1,642,650 (112,800) 1,529,850 (Cross‐Pledged:GF 53%;WS 47%)

Current W&W Debt Outstanding $ 21,970,265 $ ‐ $ (652,713) $ 21,317,552

Total Debt Outstanding $ 33,650,000 $ 6,835,000 $ (1,215,000) $ 39,270,000

* 2009 GO Refunding was comprised of 93 CO (maturities 9‐14), 96 CO (maturities 9‐14), 97 CO (maturities 9‐12), 99 GO (maturities 9‐14) and 2000 CO (maturities 11‐20).

DO IT IN HEWITT 259 Total Debt Service ‐ FY 14/15 Util Fund Debt 3,000,000 Gen Fund Debt

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

General Fund Debt service ‐ FY 14/15 Gen Fund Interest

1,500,000 Gen Fund Principal

1,000,000

500,000

0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Water & Wastewater Debt Service ‐ FY 14/15 Util Fund Interest 2,000,000 Util Fund Principal

1,500,000

1,000,000

500,000

0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

DO IT IN HEWITT 260 CITY OF HEWITT DEBT SERVICING FY 14/15

GENERAL FUND

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Series 2009 75,988.68 73,915.44 75,386.20 76,337.76 73,608.88 Series 2010 146,125.00 144,775.00 138,425.00 137,225.00 140,825.00 214,250.00 139,750.00 187,750.00 183,750.00 184,750.00 Series 2012 175,520.96 177,624.52 179,671.50 182,953.68 184,236.68 183,557.24 186,613.06 187,669.68 190,536.88 194,813.74 Series 2012 Ref 111,275.00 119,275.00 117,175.00 119,750.00 117,000.00 114,250.00 116,437.50 Series 2013 235,930.00 233,530.00 236,130.00 233,630.00 236,130.00 233,530.00 235,930.00 233,230.00 234,855.00 231,355.00 Series 2013 Ref 167,636.62 166,746.22 162,951.42 164,106.82 164,848.82 167,746.60 231,090.86 308,608.66 311,751.30 311,465.10 Series 2014 203,412.50 488,412.50 487,712.50 491,912.50 490,912.50 489,812.50 488,612.50 491,525.00 489,212.50 490,962.50 Total GF Debt 1,115,888.76 1,404,278.68 1,397,451.62 1,405,915.76 1,407,561.88 1,403,146.34 1,398,433.92 1,408,783.34 1,410,105.68 1,413,346.34

P&I SPLIT 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PRINCIPAL 562,287.00 861,060.00 870,727.00 897,580.00 919,003.00 935,309.00 952,218.00 983,141.00 1,009,400.00 1,039,895.00 INTEREST 553,601.76 543,218.68 526,724.62 508,335.76 488,558.88 467,837.34 446,215.92 425,642.34 400,705.68 373,451.34 1,115,888.76 1,404,278.68 1,397,451.62 1,405,915.76 1,407,561.88 1,403,146.34 1,398,433.92 1,408,783.34 1,410,105.68 1,413,346.34

WATER & WASTEWATER FUND

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Series 2007 619,990.00 622,452.50 621,952.50 615,702.50 623,140.00 624,650.00 625,405.00 630,582.50 629,382.50 632,582.50 Series 2009 Ref 31,218.82 30,367.06 30,971.30 31,362.24 30,241.12 Series 2010 389,537.50 388,487.50 392,437.50 396,237.50 389,662.50 423,262.50 365,450.00 354,650.00 354,250.00 353,850.00 Series 2012 289,716.54 293,187.98 296,566.00 301,983.82 304,100.82 302,980.26 308,024.44 309,767.82 314,500.62 321,561.26 Series 2012 Ref 148,658.88 147,869.28 144,504.08 145,528.68 146,186.68 148,756.42 204,929.64 273,671.84 276,458.70 276,204.90 Total UF Debt 1,479,121.74 1,482,364.32 1,486,431.38 1,490,814.74 1,493,331.12 1,499,649.18 1,503,809.08 1,568,672.16 1,574,591.82 1,584,198.66

P&I SPLIT 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PRINCIPAL 652,713.00 673,940.00 699,273.00 727,420.00 750,997.00 779,691.00 807,782.00 896,859.00 930,600.00 970,105.00 INTEREST 826,408.74 808,424.32 787,158.38 763,394.74 742,334.12 719,958.18 696,027.08 671,813.16 643,991.82 614,093.66 Total UF Debt 1,479,121.74 1,482,364.32 1,486,431.38 1,490,814.74 1,493,331.12 1,499,649.18 1,503,809.08 1,568,672.16 1,574,591.82 1,584,198.66

SUMMARY: PRINCIPAL & INTEREST

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Gen Fund Principal 562,287.00 861,060.00 870,727.00 897,580.00 919,003.00 935,309.00 952,218.00 983,141.00 1,009,400.00 1,039,895.00 Gen Fund Interest 553,601.76 543,218.68 526,724.62 508,335.76 488,558.88 467,837.34 446,215.92 425,642.34 400,705.68 373,451.34 Util Fund Principal 652,713.00 673,940.00 699,273.00 727,420.00 750,997.00 779,691.00 807,782.00 896,859.00 930,600.00 970,105.00 Util Fund Interest 826,408.74 808,424.32 787,158.38 763,394.74 742,334.12 719,958.18 696,027.08 671,813.16 643,991.82 614,093.66 2,595,010.50 2,886,643.00 2,883,883.00 2,896,730.50 2,900,893.00 2,902,795.52 2,902,243.00 2,977,455.50 2,984,697.50 2,997,545.00

SUMMARY: BY FUND

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Gen Fund Debt 1,115,888.76 1,404,278.68 1,397,451.62 1,405,915.76 1,407,561.88 1,403,146.34 1,398,433.92 1,408,783.34 1,410,105.68 1,413,346.34 Util Fund Debt 1,479,121.74 1,482,364.32 1,486,431.38 1,490,814.74 1,493,331.12 1,499,649.18 1,503,809.08 1,568,672.16 1,574,591.82 1,584,198.66 2,595,010.50 2,886,643.00 2,883,883.00 2,896,730.50 2,900,893.00 2,902,795.52 2,902,243.00 2,977,455.50 2,984,697.50 2,997,545.00

DO IT IN HEWITT 261 CITY OF HEWITT DEBT SERVICING FY 14/15 (continued)

GENERAL FUND

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 TOTAL 375,236.96 294,500.00 293,500.00 292,000.00 295,000.00 292,250.00 294,000.00 3,378,875.00 197,035.84 195,356.62 197,007.10 198,516.10 199,454.48 202,124.22 202,237.32 205,953.64 3,440,883.26 815,162.50 232,155.00 232,805.00 233,305.00 233,655.00 233,055.00 232,280.00 231,330.00 235,205.00 233,730.00 232,080.00 235,498.76 233,580.00 236,020.00 233,100.00 5,612,048.76 2,156,952.42 491,612.50 491,112.50 490,312.50 489,212.50 491,862.50 488,037.50 488,862.50 488,112.50 486,800.00 488,800.00 9,507,212.50 1,215,303.34 1,212,774.12 1,212,624.60 1,216,383.60 1,216,621.98 1,216,441.72 922,429.82 929,271.14 720,530.00 720,880.00 235,498.76 233,580.00 236,020.00 233,100.00 25,286,371.40

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 TOTAL 873,455.00 900,341.00 931,000.00 966,659.00 1,002,318.00 1,039,864.00 785,523.00 819,955.00 640,000.00 665,000.00 205,000.00 210,000.00 220,000.00 225,000.00 18,514,735.00 341,848.34 312,433.12 281,624.60 249,724.60 214,303.98 176,577.72 136,906.82 109,316.14 80,530.00 55,880.00 30,498.76 23,580.00 16,020.00 8,100.00 6,771,636.40 1,215,303.34 1,212,774.12 1,212,624.60 1,216,383.60 1,216,621.98 1,216,441.72 922,429.82 929,271.14 720,530.00 720,880.00 235,498.76 233,580.00 236,020.00 233,100.00 25,286,371.40

WATER & WASTEWATER FUND

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 TOTAL 634,982.50 636,582.50 637,382.50 642,132.50 645,870.00 643,595.00 650,225.00 650,625.00 11,387,235.00 154,160.54 573,350.00 571,850.00 569,850.00 562,350.00 559,600.00 561,350.00 557,350.00 554,662.50 1,211,537.50 1,212,887.50 1,217,212.50 1,219,287.50 1,224,112.50 14,403,225.00 325,226.66 322,455.88 325,180.40 327,671.40 329,220.52 333,625.78 333,812.68 339,946.36 5,679,529.24 1,912,769.10 1,533,559.16 1,530,888.38 1,532,412.90 1,532,153.90 1,534,690.52 1,538,570.78 1,541,387.68 1,545,233.86 1,211,537.50 1,212,887.50 1,217,212.50 1,219,287.50 1,224,112.50 0.00 33,536,918.88

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 TOTAL 951,545.00 984,659.00 1,024,000.00 1,063,341.00 1,107,682.00 1,155,136.00 1,204,477.00 1,255,045.00 970,000.00 1,015,000.00 1,065,000.00 1,115,000.00 1,170,000.00 21,970,265.00 582,014.16 546,229.38 508,412.90 468,812.90 427,008.52 383,434.78 336,910.68 290,188.86 241,537.50 197,887.50 152,212.50 104,287.50 54,112.50 11,566,653.88 1,533,559.16 1,530,888.38 1,532,412.90 1,532,153.90 1,534,690.52 1,538,570.78 1,541,387.68 1,545,233.86 1,211,537.50 1,212,887.50 1,217,212.50 1,219,287.50 1,224,112.50 33,536,918.88

SUMMARY: PRINCIPAL & INTEREST

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 TOTAL 873,455.00 900,341.00 931,000.00 966,659.00 1,002,318.00 1,039,864.00 785,523.00 819,955.00 640,000.00 665,000.00 205,000.00 210,000.00 220,000.00 225,000.00 18,514,735.00 341,848.34 312,433.12 281,624.60 249,724.60 214,303.98 176,577.72 136,906.82 109,316.14 80,530.00 55,880.00 30,498.76 23,580.00 16,020.00 8,100.00 6,771,636.40 951,545.00 984,659.00 1,024,000.00 1,063,341.00 1,107,682.00 1,155,136.00 1,204,477.00 1,255,045.00 970,000.00 1,015,000.00 1,065,000.00 1,115,000.00 1,170,000.00 21,970,265.00 582,014.16 546,229.38 508,412.90 468,812.90 427,008.52 383,434.78 336,910.68 290,188.86 241,537.50 197,887.50 152,212.50 104,287.50 54,112.50 11,566,653.88 2,748,862.50 2,743,662.50 2,745,037.50 2,748,537.50 2,751,312.50 2,755,012.50 2,463,817.50 2,474,505.00 1,932,067.50 1,933,767.50 1,452,711.26 1,452,867.50 1,460,132.50 233,100.00 58,823,290.28

SUMMARY: BY FUND

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 TOTAL 1,215,303.34 1,212,774.12 1,212,624.60 1,216,383.60 1,216,621.98 1,216,441.72 922,429.82 929,271.14 720,530.00 720,880.00 235,498.76 233,580.00 236,020.00 233,100.00 25,286,371.40 1,533,559.16 1,530,888.38 1,532,412.90 1,532,153.90 1,534,690.52 1,538,570.78 1,541,387.68 1,545,233.86 1,211,537.50 1,212,887.50 1,217,212.50 1,219,287.50 1,224,112.50 33,536,918.88 2,748,862.50 2,743,662.50 2,745,037.50 2,748,537.50 2,751,312.50 2,755,012.50 2,463,817.50 2,474,505.00 1,932,067.50 1,933,767.50 1,452,711.26 1,452,867.50 1,460,132.50 233,100.00 58,823,290.28

DO IT IN HEWITT 262

DEBT INFORMATION –

GENERAL FUND

DO IT IN HEWITT 263 GENERAL FUND FY 14/15 SCHEDULE OF LONG TERM DEBT

General Fund Debt Service 1,600,000

Maturity Interest Rates Outstanding Outstanding New Principal Outstanding 1,400,000 ISSUE Date Low High Issue 10/1/2014 Issue Payments 9/30/2015 1,200,000 2009 Refunded GO (71.88%) 7/1/2019 1.00 3.85 3,145,000 336,680 ‐ (63,792) 272,888 2012 Refunded GO (100%) 11/1/2020 2.00 2.50 940,000 750,000 ‐ (95,000) 655,000 1,000,000 2013 Refunded GO (53%) 7/1/2024 0.50 3.10 1,892,100 1,852,350 ‐ (127,200) 1,725,150 800,000 General Obligation Debt 2,939,030 ‐ (285,992) 2,653,038 600,000 2010 Comb T&R CO (22.055%) 7/1/2030 3 5 9,975,000 2,180,000 ‐ (45,000) 2,135,000 2012 Comb T&R CO (GF 37.7%) 7/1/2032 1.5 3 2,902,900 2,710,705 ‐ (111,295) 2,599,410 400,000 2013 Comb T&R CO (100%) 7/1/2038 2 3.6 3,850,000 3,850,000 ‐ (120,000) 3,730,000 200,000 2014 Comb T&R CO (100%) 7/21/2014 6,835,000 ‐ 6,835,000 ‐ 6,835,000 ‐ Combination Tax and Revenue COs 8,740,705 6,835,000 (276,295) 15,299,410 2030 2036 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2031 2032 2033 2034 2035 2037 Total Bond Principal Outstanding 11,679,735 6,835,000 (562,287) 17,952,448 2038

FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY

2009 Series 2010 Series 2012 Series 2012 Series 2013 Series 2013 Series Ref 2014 Series Total Refunded Gen Obl 2009 Comb Tax & Rev COs 2010 Comb Tax & Rev COs 2012 Refunded GO 2012 Ref Comb Tax & Rev COs 2013 Refunded Gen Obl 2013 GO Comb Tax & Rev COs All Bonded Debt Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total 63,792 12,196.69 75,988.69 45,000 101,125 146,125.00 111,295 64,225.96 175,520.96 95,000 16,275.00 111,275.00 120,000 115,930.00 235,930.00 127,200 40,436.62 167,636.62 ‐ 203,412.50 203,412.50 562,287.00 553,601.77 1,115,888.77 63,792 10,123.44 73,915.44 45,000 99,775 144,775.00 115,068 62,556.52 177,624.52 105,000 14,275.00 119,275.00 120,000 113,530.00 233,530.00 127,200 39,546.22 166,746.22 285,000.00 203,412.50 488,412.50 861,060.00 543,218.68 1,404,278.68 67,336 8,050.20 75,386.20 40,000 98,425 138,425.00 118,841 60,830.50 179,671.50 105,000 12,175.00 117,175.00 125,000 111,130.00 236,130.00 124,550 38,401.42 162,951.42 290,000.00 197,712.50 487,712.50 870,727.00 526,724.62 1,397,451.62 70,880 5,457.76 76,337.76 40,000 97,225 137,225.00 124,500 58,453.68 182,953.68 110,000 9,750.00 119,750.00 125,000 108,630.00 233,630.00 127,200 36,906.82 164,106.82 300,000.00 191,912.50 491,912.50 897,580.00 508,335.76 1,405,915.76 70,880 2,728.88 73,608.88 45,000 95,825 140,825.00 128,273 55,963.68 184,236.68 110,000 7,000.00 117,000.00 130,000 106,130.00 236,130.00 129,850 34,998.82 164,848.82 305,000.00 185,912.50 490,912.50 919,003.00 488,558.88 1,407,561.88 120,000 94,250 214,250.00 130,159 53,398.24 183,557.24 110,000 4,250.00 114,250.00 130,000 103,530.00 233,530.00 135,150 32,596.60 167,746.60 310,000.00 179,812.50 489,812.50 935,309.00 467,837.34 1,403,146.34 50,000 89,750 139,750.00 135,818 50,795.06 186,613.06 115,000 1,437.50 116,437.50 135,000 100,930.00 235,930.00 201,400 29,690.86 231,090.86 315,000.00 173,612.50 488,612.50 952,218.00 446,215.92 1,398,433.92 100,000 87,750 187,750.00 139,591 48,078.68 187,669.68 135,000 98,230.00 233,230.00 283,550 25,058.66 308,608.66 325,000.00 166,525.00 491,525.00 983,141.00 425,642.34 1,408,783.34 100,000 83,750 183,750.00 145,250 45,286.88 190,536.88 140,000 94,855.00 234,855.00 294,150 17,601.30 311,751.30 330,000.00 159,212.50 489,212.50 1,009,400.00 400,705.68 1,410,105.68 105,000 79,750 184,750.00 152,795 42,018.74 194,813.74 140,000 91,355.00 231,355.00 302,100 9,365.10 311,465.10 340,000.00 150,962.50 490,962.50 1,039,895.00 373,451.34 1,413,346.34 220,000 74,500 294,500.00 158,455 38,580.84 197,035.84 145,000 87,155.00 232,155.00 ‐ 350,000.00 141,612.50 491,612.50 873,455.00 341,848.34 1,215,303.34 230,000 63,500 293,500.00 160,341 35,015.62 195,356.62 150,000 82,805.00 232,805.00 ‐ 360,000.00 131,112.50 491,112.50 900,341.00 312,433.12 1,212,774.12 240,000 52,000 292,000.00 166,000 31,007.10 197,007.10 155,000 78,305.00 233,305.00 ‐ 370,000.00 120,312.50 490,312.50 931,000.00 281,624.60 1,212,624.60 255,000 40,000 295,000.00 171,659 26,857.10 198,516.10 160,000 73,655.00 233,655.00 ‐ 380,000.00 109,212.50 489,212.50 966,659.00 249,724.60 1,216,383.60 265,000 27,250 292,250.00 177,318 22,136.48 199,454.48 165,000 68,055.00 233,055.00 ‐ 395,000.00 96,862.50 491,862.50 1,002,318.00 214,303.98 1,216,621.98 280,000 14,000 294,000.00 184,864 17,260.22 202,124.22 170,000 62,280.00 232,280.00 ‐ 405,000.00 83,037.50 488,037.50 1,039,864.00 176,577.72 1,216,441.72 190,523 11,714.32 202,237.32 175,000 56,330.00 231,330.00 ‐ 420,000.00 68,862.50 488,862.50 785,523.00 136,906.82 922,429.82 199,955 5,998.64 205,953.64 185,000 50,205.00 235,205.00 ‐ 435,000.00 53,112.50 488,112.50 819,955.00 109,316.14 929,271.14 190,000 43,730.00 233,730.00 ‐ 450,000.00 36,800.00 486,800.00 640,000.00 80,530.00 720,530.00 195,000 37,080.00 232,080.00 ‐ 470,000.00 18,800.00 488,800.00 665,000.00 55,880.00 720,880.00 205,000 30,498.76 235,498.76 ‐ 205,000.00 30,498.76 235,498.76 210,000 23,580.00 233,580.00 ‐ 210,000.00 23,580.00 233,580.00 220,000 16,020.00 236,020.00 ‐ 220,000.00 16,020.00 236,020.00 225,000 8,100.00 233,100.00 ‐ 225,000.00 8,100.00 233,100.00 336,680 38,556.96 375,236.96 2,180,000 1,198,875 3,378,875.00 2,710,705 730,178.26 3,440,883.26 750,000 65,162.50 815,162.50 3,850,000 1,762,048.76 5,612,048.76 1,852,350 304,602.42 2,156,952.42 6,835,000.00 2,672,212.50 9,507,212.50 18,514,735.00 6,771,636.40 25,286,371.40

DO IT IN HEWITT 264 GENERAL FUND FY 14/15 SCHEDULE OF LEASES PAYABLE

Maturity Original Outstanding Outstanding Issue Percentage Date Interest Rates Issue 10/1/2014 Additions Prin Payts 9/30/2015 Pinnacle Lease #2 100% 3/31/2016 2.56 200,000 83,046 ‐ (40,998) 42,048 Pinnacle Lease #3 0.321232 1/30/2015 1.43 500,000 54,300 ‐ (54,300) ‐ BB&T (GF .2784, WS .6104, DF .1112) 0.2784 12/24/2017 1.05 545,000 ‐ 151,728 (50,049) 101,679 Total Leases Outstanding 137,346 151,728 (145,347) 143,727

Pinnacle Pinnacle BB&T Lease #2 Lease #3 Lease Total Leases Fiscal Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Year 40,997.80 2,125.96 43,123.76 54,300.62 776.50 55,077.12 50,048.65 1,593.14 51,641.79 145,347.07 4,495.60 149,842.67 FY 2015 42,047.35 1,076.41 43,123.76 50,574.16 1,067.63 51,641.79 92,621.51 2,144.04 94,765.55 FY 2016 51,105.19 536.60 51,641.79 51,105.19 536.60 51,641.79 FY 2017 83,045.15 3,202.37 86,247.52 54,300.62 776.50 55,077.12 151,728.00 3,197.38 154,925.38 289,073.77 7,176.25 296,250.02

Pinnacle Public Finance, Inc. Lease #2 ‐ Mobile Radio System Date Pmt. No. Beg. Bal. Pmt. Amt. Interest Principal Pur. Price 3/31/2011 200,000.00 3/31/2012 1 43,123.75 5,120.00 38,003.75 161,996.25 3/31/2013 2 43,123.75 4,147.10 38,976.65 123,019.60 3/31/2014 3 43,123.75 3,149.30 39,974.45 83,045.15 3/31/2015 4 43,123.75 2,125.96 40,997.80 42,047.34 3/31/2016 5 43,123.75 1,076.41 42,047.35 43,123.76 Rate 2.56% Totals 215,618.75 15,618.77 200,000.00 ‐ * acquired mobile radio equipment/system

Pinnacle Public Finance, Inc. Lease #3 ‐ Vehicles & Heavy Equipment Total Total Total GF Prin GF Int GF Total UF Prin UF Int UF Total Date Pmt. No. Beg. Bal. Pmt. Amt. Principal Interest 0.321232 0.321232 0.321232 0.678768 0.678768 0.678768 1/30/2012 $ 500,000.00 1/30/2013 1 171,455.89 164,305.89 7,150.00 52,780.31 2,296.81 55,077.12 111,525.58 4,853.19 116,378.77 1/30/2014 2 171,455.89 166,655.47 4,800.42 53,535.07 1,542.05 55,077.12 113,120.40 3,258.37 116,378.77 1/30/2015 3 171,455.89 169,038.64 2,417.25 54,300.62 776.50 55,077.12 114,738.02 1,640.75 116,378.77 Rate 1.43% Totals 514,367.67 500,000.00 14,367.67 160,616.00 4,615.36 165,231.36 339,384.00 9,752.31 349,136.31 *vehicles & heavy equipment

BB&T Lease Financing Vehicles & Heavy Equipment GF .2784, WS .6104 and DF .1112 Total 0.2784 0.2784 0.2784 0.6104 0.6104 0.6104 0.1112 0.1112 0.1112 Date Pmt. No. Beg. Bal. Pmt. Amt. Principal Interest GF Prin GF Int GF Total UF Prin UF Int UF Total DF Prin DF Int DF Total 12/24/2013 $ 545,000.00 12/24/2014 1 185,494.95 179,772.45 5,722.50 50,048.65 1,593.14 51,641.79 109,733.10 3,493.02 113,226.12 19,990.70 636.34 20,627.04 12/24/2015 2 185,494.95 181,660.06 3,834.89 50,574.16 1,067.63 51,641.79 110,885.30 2,340.82 113,226.12 20,200.60 426.44 20,627.04 12/24/2016 3 185,494.95 183,567.49 1,927.46 51,105.19 536.60 51,641.79 112,049.60 1,176.52 113,226.12 20,412.70 214.33 20,627.04 Rate 1.05% 556,484.85 545,000.00 11,484.85 151,728.00 3,197.38 154,925.38 332,668.00 7,010.36 339,678.35 60,604.00 1,277.12 61,881.12 *vehicles and heavy equipment Recap: 545,000.00 11,484.86 556,484.85

DO IT IN HEWITT 265 General Obligation Refunding Bonds Series 2009 ‐ (GF 70.88%; WS 29.12%) Debt Service Schedule Period Fiscal Principal Interest Total Principal Interest Total Year Principal Coupon Interest Total Total GF GF GF WS WS WS 1/1/15 8,603.75 8,603.75 6,098.34 6,098.34 2,505.41 2,505.41 7/1/15 90,000 3.25 8,603.75 98,603.75 107,207.50 63,792 6,098.34 69,890.34 26,208 2,505.41 28,713.41 75,988.68 31,218.82 1/1/16 7,141.25 7,141.25 5,061.72 5,061.72 2,079.53 2,079.53 7/1/16 90,000 3.25 7,141.25 97,141.25 104,282.50 63,792 5,061.72 68,853.72 26,208 2,079.53 28,287.53 73,915.44 30,367.06 1/1/17 5,678.75 5,678.75 4,025.10 4,025.10 1,653.65 1,653.65 7/1/17 95,000 3.85 5,678.75 100,678.75 106,357.50 67,336 4,025.10 71,361.10 27,664 1,653.65 29,317.65 75,386.20 30,971.30 1/1/18 3,850.00 3,850.00 2,728.88 2,728.88 1,121.12 1,121.12 7/1/18 100,000 3.85 3,850.00 103,850.00 107,700.00 70,880 2,728.88 73,608.88 29,120 1,121.12 30,241.12 76,337.76 31,362.24 1/1/19 1,925.00 1,925.00 1,364.44 1,364.44 560.56 560.56 7/1/19 100,000 3.85 1,925.00 101,925.00 103,850.00 70,880 1,364.44 72,244.44 29,120 560.56 29,680.56 73,608.88 30,241.12 475,000 54,397.50 529,397.50 529,397.50 336,680 38,556.95 375,236.95 138,320 15,840.55 154,160.55

DO IT IN HEWITT 266 Combination Tax and Revenue Certificate of Obligation Series 2010 (GF 22.055%; WS 77.945%) Debt Service Schedule Fiscal Principal Interest Total Principal Interest Total Month Principal Coupon Interest Total GF GF GF WS WS WS 1/1/15 227,831.25 50,562.50 50,562.50 177,268.75 177,268.75 7/1/15 80,000.00 3 227,831.25 535,662.50 45,000.00 50,562.50 95,562.50 35,000.00 177,268.75 212,268.75 9/30/15 146,125.00 389,537.50 1/1/16 226,631.25 49,887.50 49,887.50 176,743.75 176,743.75 7/1/16 80,000.00 3 226,631.25 533,262.50 45,000.00 49,887.50 94,887.50 35,000.00 176,743.75 211,743.75 9/30/16 144,775.00 388,487.50 1/1/17 225,431.25 49,212.50 49,212.50 176,218.75 176,218.75 7/1/17 80,000.00 3 225,431.25 530,862.50 40,000.00 49,212.50 89,212.50 40,000.00 176,218.75 216,218.75 9/30/17 138,425.00 392,437.50 1/1/18 224,231.25 48,612.50 48,612.50 175,618.75 175,618.75 7/1/18 85,000.00 3.5 224,231.25 533,462.50 40,000.00 48,612.50 88,612.50 45,000.00 175,618.75 220,618.75 9/30/18 137,225.00 396,237.50 1/1/19 222,743.75 47,912.50 47,912.50 174,831.25 174,831.25 7/1/19 85,000.00 3.5 222,743.75 530,487.50 45,000.00 47,912.50 92,912.50 40,000.00 174,831.25 214,831.25 9/30/19 140,825.00 389,662.50 1/1/20 221,256.25 47,125.00 47,125.00 174,131.25 174,131.25 7/1/20 195,000.00 3.75 221,256.25 637,512.50 120,000.00 47,125.00 167,125.00 75,000.00 174,131.25 249,131.25 9/30/20 214,250.00 423,262.50 1/1/21 217,600.00 44,875.00 44,875.00 172,725.00 172,725.00 7/1/21 70,000.00 4 217,600.00 505,200.00 50,000.00 44,875.00 94,875.00 20,000.00 172,725.00 192,725.00 9/30/21 139,750.00 365,450.00 1/1/22 216,200.00 43,875.00 43,875.00 172,325.00 172,325.00 7/1/22 110,000.00 4 216,200.00 542,400.00 100,000.00 43,875.00 143,875.00 10,000.00 172,325.00 182,325.00 9/30/22 187,750.00 354,650.00 1/1/23 214,000.00 41,875.00 41,875.00 172,125.00 172,125.00 7/1/23 110,000.00 4 214,000.00 538,000.00 100,000.00 41,875.00 141,875.00 10,000.00 172,125.00 182,125.00 9/30/23 183,750.00 354,250.00 1/1/24 211,800.00 39,875.00 39,875.00 171,925.00 171,925.00 7/1/24 115,000.00 5 211,800.00 538,600.00 105,000.00 39,875.00 144,875.00 10,000.00 171,925.00 181,925.00 9/30/24 184,750.00 353,850.00 1/1/25 208,925.00 37,250.00 37,250.00 171,675.00 171,675.00 7/1/25 450,000.00 5 208,925.00 867,850.00 220,000.00 37,250.00 257,250.00 230,000.00 171,675.00 401,675.00 9/30/25 294,500.00 573,350.00 1/1/26 197,675.00 31,750.00 31,750.00 165,925.00 165,925.00 7/1/26 470,000.00 5 197,675.00 865,350.00 230,000.00 31,750.00 261,750.00 240,000.00 165,925.00 405,925.00 9/30/26 293,500.00 571,850.00 1/1/27 185,925.00 26,000.00 26,000.00 159,925.00 159,925.00 7/1/27 490,000.00 5 185,925.00 861,850.00 240,000.00 26,000.00 266,000.00 250,000.00 159,925.00 409,925.00 9/30/27 292,000.00 569,850.00 1/1/28 173,675.00 20,000.00 20,000.00 153,675.00 153,675.00 7/1/28 510,000.00 5 173,675.00 857,350.00 255,000.00 20,000.00 275,000.00 255,000.00 153,675.00 408,675.00 9/30/28 295,000.00 562,350.00 1/1/29 160,925.00 13,625.00 13,625.00 147,300.00 147,300.00 7/1/29 530,000.00 5 160,925.00 851,850.00 265,000.00 13,625.00 278,625.00 265,000.00 147,300.00 412,300.00 9/30/29 292,250.00 559,600.00 1/1/30 147,675.00 7,000.00 7,000.00 140,675.00 140,675.00 7/1/30 560,000.00 5 147,675.00 855,350.00 280,000.00 7,000.00 287,000.00 280,000.00 140,675.00 420,675.00 9/30/30 294,000.00 561,350.00 1/1/31 133,675.00 ‐ 133,675.00 133,675.00 7/1/31 290,000.00 4.375 133,675.00 557,350.00 ‐ ‐ 290,000.00 133,675.00 423,675.00 9/30/31 557,350.00 1/1/32 127,331.25 ‐ 127,331.25 127,331.25 7/1/32 300,000.00 4.375 127,331.25 554,662.50 ‐ ‐ 300,000.00 127,331.25 427,331.25 9/30/32 554,662.50 1/1/33 120,768.75 ‐ 120,768.75 120,768.75 7/1/33 970,000.00 4.5 120,768.75 1,211,537.50 ‐ ‐ 970,000.00 120,768.75 1,090,768.75 9/30/33 1,211,537.50 1/1/34 98,943.75 ‐ 98,943.75 98,943.75 7/1/34 1,015,000.00 4.5 98,943.75 1,212,887.50 ‐ ‐ 1,015,000.00 98,943.75 1,113,943.75 9/30/34 1,212,887.50 1/1/35 76,106.25 ‐ 76,106.25 76,106.25 7/1/35 1,065,000.00 4.5 76,106.25 1,217,212.50 ‐ ‐ 1,065,000.00 76,106.25 1,141,106.25 9/30/35 1,217,212.50 1/1/36 52,143.75 ‐ 52,143.75 52,143.75 7/1/36 1,115,000.00 4.5 52,143.75 1,219,287.50 ‐ ‐ 1,115,000.00 52,143.75 1,167,143.75 9/30/36 1,219,287.50 1/1/37 27,056.25 ‐ 27,056.25 27,056.25 7/1/37 1,170,000.00 4.625 27,056.25 1,224,112.50 ‐ ‐ 1,170,000.00 27,056.25 1,197,056.25 9/30/37 1,224,112.50 9,945,000.00 7,837,100.00 17,782,100.00 2,180,000.00 1,198,875.00 3,378,875.00 7,765,000.00 6,638,225.00 14,403,225.00

DO IT IN HEWITT 267 Combination Tax and Revenue Certificate of Obligation Series 2012 (GF 37.72727%; WS 62.27273%) Debt Service Schedule Period Annual Ending Principal Coupon Interest Debt Service Debt Service GF Prin GF Int GF Total WS Prin WS Int WS Total 01/01/2015 85,118.75 85,118.75 ‐ 32,112.98 32,112.98 53,005.77 53,005.77 07/01/2015 295,000 1.50% 85,118.75 380,118.75 111,295 32,112.98 143,408.43 183,705 53,005.77 236,710.32 09/30/2015 465,237.50 175,521.41 289,716.09 01/01/2016 82,906.25 82,906.25 ‐ 31,278.26 31,278.26 51,627.99 51,627.99 07/01/2016 305,000 1.50% 82,906.25 387,906.25 115,068 31,278.26 146,346.44 189,932 51,627.99 241,559.81 09/30/2016 470,812.50 177,624.70 293,187.80 01/01/2017 80,618.75 80,618.75 ‐ 30,415.25 30,415.25 50,203.50 50,203.50 07/01/2017 315,000 2.00% 80,618.75 395,618.75 118,841 30,415.25 149,256.15 196,159 50,203.50 246,362.60 09/30/2017 476,237.50 179,671.41 296,566.09 01/01/2018 77,468.75 77,468.75 ‐ 29,226.84 29,226.84 48,241.91 48,241.91 07/01/2018 330,000 2.00% 77,468.75 407,468.75 124,500 29,226.84 153,726.84 205,500 48,241.91 253,741.91 09/30/2018 484,937.50 182,953.68 301,983.82 01/01/2019 74,168.75 74,168.75 ‐ 27,981.84 27,981.84 46,186.91 46,186.91 07/01/2019 340,000 2.00% 74,168.75 414,168.75 128,273 27,981.84 156,254.56 211,727 46,186.91 257,914.19 09/30/2019 488,337.50 184,236.41 304,101.09 01/01/2020 70,768.75 70,768.75 ‐ 26,699.12 26,699.12 44,069.63 44,069.63 07/01/2020 345,000 2.00% 70,768.75 415,768.75 130,159 26,699.12 156,858.20 214,841 44,069.63 258,910.55 09/30/2020 486,537.50 183,557.32 302,980.18 01/01/2021 67,318.75 67,318.75 ‐ 25,397.53 25,397.53 41,921.22 41,921.22 07/01/2021 360,000 2.00% 67,318.75 427,318.75 135,818 25,397.53 161,215.70 224,182 41,921.22 266,103.05 09/30/2021 494,637.50 186,613.23 308,024.27 01/01/2022 63,718.75 63,718.75 ‐ 24,039.34 24,039.34 39,679.41 39,679.41 07/01/2022 370,000 2.00% 63,718.75 433,718.75 139,591 24,039.34 163,630.24 230,409 39,679.41 270,088.51 09/30/2022 497,437.50 187,669.59 309,767.91 01/01/2023 60,018.75 60,018.75 ‐ 22,643.44 22,643.44 37,375.31 37,375.31 07/01/2023 385,000 2.25% 60,018.75 445,018.75 145,250 22,643.44 167,893.43 239,750 37,375.31 277,125.32 09/30/2023 505,037.50 190,536.86 314,500.64 01/01/2024 55,687.50 55,687.50 ‐ 21,009.37 21,009.37 34,678.13 34,678.13 07/01/2024 405,000 2.25% 55,687.50 460,687.50 152,795 21,009.37 173,804.82 252,205 34,678.13 286,882.68 09/30/2024 516,375.00 194,814.19 321,560.81 01/01/2025 51,131.25 51,131.25 ‐ 19,290.42 19,290.42 31,840.83 31,840.83 07/01/2025 420,000 2.25% 51,131.25 471,131.25 158,455 19,290.42 177,744.96 261,545 31,840.83 293,386.29 09/30/2025 522,262.50 197,035.38 325,227.12 01/01/2026 46,406.25 46,406.25 ‐ 17,507.81 17,507.81 28,898.44 28,898.44 07/01/2026 425,000 2.50% 46,406.25 471,406.25 160,341 17,507.81 177,848.71 264,659 28,898.44 293,557.54 09/30/2026 517,812.50 195,356.52 322,455.98 01/01/2027 41,093.75 41,093.75 ‐ 15,503.55 15,503.55 25,590.20 25,590.20 07/01/2027 440,000 2.50% 41,093.75 481,093.75 166,000 15,503.55 181,503.54 274,000 25,590.20 299,590.21 09/30/2027 522,187.50 197,007.09 325,180.41 01/01/2028 35,593.75 35,593.75 ‐ 13,428.55 13,428.55 22,165.20 22,165.20 07/01/2028 455,000 2.75% 35,593.75 490,593.75 171,659 13,428.55 185,087.63 283,341 22,165.20 305,506.12 09/30/2028 526,187.50 198,516.18 327,671.32 01/01/2029 29,337.50 29,337.50 ‐ 11,068.24 11,068.24 18,269.26 18,269.26 07/01/2029 470,000 2.75% 29,337.50 499,337.50 177,318 11,068.24 188,386.41 292,682 18,269.26 310,951.09 09/30/2029 528,675.00 199,454.64 329,220.36 01/01/2030 22,875.00 22,875.00 ‐ 8,630.11 8,630.11 14,244.89 14,244.89 07/01/2030 490,000 3.00% 22,875.00 512,875.00 184,864 8,630.11 193,493.74 305,136 14,244.89 319,381.26 09/30/2030 535,750.00 202,123.85 333,626.15 01/01/2031 15,525.00 15,525.00 ‐ 5,857.16 5,857.16 9,667.84 9,667.84 07/01/2031 505,000 3.00% 15,525.00 520,525.00 190,523 5,857.16 196,379.87 314,477 9,667.84 324,145.13 09/30/2031 536,050.00 202,237.03 333,812.97 01/01/2032 7,950.00 7,950.00 ‐ 2,999.32 2,999.32 4,950.68 4,950.68 07/01/2032 530,000 3.00% 7,950.00 537,950.00 199,955 2,999.32 202,953.85 330,045 4,950.68 334,996.15 09/30/2032 545,900.00 205,953.17 339,946.83 7,185,000 1,935,412.50 9,120,412.50 9,120,412.50 2,710,704 730,178.30 3,440,882.65 4,474,296 1,205,234.20 5,679,529.85

DO IT IN HEWITT 268 Combination Tax and Revenue Certificate of Obligation 2012 Refunding (Series 2001)‐ GF 100% Debt Service Schedule Period Annual Ending Principal Coupon Interest Debt Service Debt Service 11/01/2014 95,000 2.000% 8,612.50 103,612.50 05/01/2015 7,662.50 7,662.50 09/30/2015 111,275.00 11/01/2015 105,000 2.000% 7,662.50 112,662.50 05/01/2016 6,612.50 6,612.50 09/30/2016 119,275.00 11/01/2016 105,000 2.000% 6,612.50 111,612.50 05/01/2017 5,562.50 5,562.50 09/30/2017 117,175.00 11/01/2017 110,000 2.500% 5,562.50 115,562.50 05/01/2018 4,187.50 4,187.50 09/30/2018 119,750.00 11/01/2018 110,000 2.500% 4,187.50 114,187.50 05/01/2019 2,812.50 2,812.50 09/30/2019 117,000.00 11/01/2019 110,000 2.500% 2,812.50 112,812.50 05/01/2020 1,437.50 1,437.50 09/30/2020 114,250.00 11/01/2020 115,000 2.500% 1,437.50 116,437.50 09/30/2021 116,437.50 750,000 65,162.50 815,162.50 815,162.50

DO IT IN HEWITT 269 Combination Tax and Revenue Certificate of Obligation Series 2013 ‐ GF 100% Debt Service Schedule Period Annual Ending Principal Coupon Interest Debt Service Debt Service 1/1/2015 57,965.00 57,965.00 7/1/2015 120,000.00 2.000% 57,965.00 177,965.00 9/30/2015 235,930.00 1/1/2016 56,765.00 56,765.00 7/1/2016 120,000.00 2.000% 56,765.00 176,765.00 9/30/2016 233,530.00 1/1/2017 55,565.00 55,565.00 7/1/2017 125,000.00 2.000% 55,565.00 180,565.00 9/30/2017 236,130.00 1/1/2018 54,315.00 54,315.00 7/1/2018 125,000.00 2.000% 54,315.00 179,315.00 9/30/2018 233,630.00 1/1/2019 53,065.00 53,065.00 7/1/2019 130,000.00 2.000% 53,065.00 183,065.00 9/30/2019 236,130.00 1/1/2020 51,765.00 51,765.00 7/1/2010 130,000.00 2.000% 51,765.00 181,765.00 9/30/2020 233,530.00 1/1/2021 50,465.00 50,465.00 7/1/2021 135,000.00 2.000% 50,465.00 185,465.00 9/30/2021 235,930.00 1/1/2022 49,115.00 49,115.00 7/1/2022 135,000.00 2.500% 49,115.00 184,115.00 9/30/2022 233,230.00 1/1/2023 47,427.50 47,427.50 7/1/2023 140,000.00 2.500% 47,427.50 187,427.50 9/30/2023 234,855.00 1/1/2024 45,677.50 45,677.50 7/1/2024 140,000.00 3.000% 45,677.50 185,677.50 9/30/2024 231,355.00 1/1/2025 43,577.50 43,577.50 7/1/2025 145,000.00 3.000% 43,577.50 188,577.50 9/30/2025 232,155.00 1/1/2026 41,402.50 41,402.50 7/1/2026 150,000.00 3.000% 41,402.50 191,402.50 9/30/2026 232,805.00 1/1/2027 39,152.50 39,152.50 7/1/2027 155,000.00 3.000% 39,152.50 194,152.50 9/30/2027 233,305.00 1/1/2028 36,827.50 36,827.50 7/1/2028 160,000.00 3.500% 36,827.50 196,827.50 9/30/2028 233,655.00 1/1/2029 34,027.50 34,027.50 7/1/2029 165,000.00 3.500% 34,027.50 199,027.50 9/30/2029 233,055.00 1/1/2030 31,140.00 31,140.00 7/1/2030 170,000.00 3.500% 31,140.00 201,140.00 9/30/2030 232,280.00 1/1/2031 28,165.00 28,165.00 7/1/2031 175,000.00 3.500% 28,165.00 203,165.00 9/30/2031 231,330.00 1/1/2032 25,102.50 25,102.50 7/1/2032 185,000.00 3.500% 25,102.50 210,102.50 9/30/2032 235,205.00 1/1/2033 21,865.00 21,865.00 7/1/2033 190,000.00 3.500% 21,865.00 211,865.00 9/30/2033 233,730.00 1/1/2034 18,540.00 18,540.00 7/1/2034 195,000.00 3.375% 18,540.00 213,540.00 9/30/2034 232,080.00 1/1/2035 15,249.38 15,249.38 7/1/2035 205,000.00 3.375% 15,249.38 220,249.38 9/30/2035 235,498.76 1/1/2036 11,790.00 11,790.00 7/1/2036 210,000.00 3.60% 11,790.00 221,790.00 9/30/2036 233,580.00 1/1/2037 8,010.00 8,010.00 7/1/2037 220,000.00 3.60% 8,010.00 228,010.00 9/30/2037 236,020.00 1/1/2038 4,050.00 4,050.00 7/1/2038 225,000.00 3.60% 4,050.00 229,050.00 9/30/2038 233,100.00 3,850,000.00 1,762,048.76 5,612,048.76 5,612,048.76 DO IT IN HEWITT 270 Combination Tax and Revenue Certificates of Obligation Series 2013 GF Refunding (formerly 2004 CO) Cross‐Pledged: GF 53%, WS 47% Debt Service Schedule

Period Principal Coupon Interest Debt Service Annual Debt GF Prin GF Int GF Total WS Prin WS Int WS Total 1/1/2015 38,147.75 38,147.75 ‐ 20,218.31 20,218.31 ‐ 17,929.44 17,929.44 7/1/2015 240,000 0.70% 38,147.75 278,147.75 127,200 20,218.31 147,418.31 112,800 17,929.44 130,729.44 9/30/2015 316,295.50 167,636.62 148,658.89 1/1/2016 37,307.75 37,307.75 ‐ 19,773.11 19,773.11 ‐ 17,534.64 17,534.64 7/1/2016 240,000 0.90% 37,307.75 277,307.75 127,200 19,773.11 146,973.11 112,800 17,534.64 130,334.64 9/30/2016 314,615.50 166,746.22 147,869.29 1/1/2017 36,227.75 36,227.75 ‐ 19,200.71 19,200.71 ‐ 17,027.04 17,027.04 7/1/2017 235,000 1.20% 36,227.75 271,227.75 124,550 19,200.71 143,750.71 110,450 17,027.04 127,477.04 9/30/2017 307,455.50 162,951.42 144,504.09 1/1/2018 34,817.75 34,817.75 ‐ 18,453.41 18,453.41 ‐ 16,364.34 16,364.34 7/1/2018 240,000 1.50% 34,817.75 274,817.75 127,200 18,453.41 145,653.41 112,800 16,364.34 129,164.34 9/30/2018 309,635.50 164,106.82 145,528.69 1/1/2019 33,017.75 33,017.75 ‐ 17,499.41 17,499.41 ‐ 15,518.34 15,518.34 7/1/2019 245,000 1.85% 33,017.75 278,017.75 129,850 17,499.41 147,349.41 115,150 15,518.34 130,668.34 9/30/2019 311,035.50 164,848.82 146,186.69 1/1/2020 30,751.50 30,751.50 ‐ 16,298.30 16,298.30 ‐ 14,453.21 14,453.21 7/1/2020 255,000 2.15% 30,751.50 285,751.50 135,150 16,298.30 151,448.30 119,850 14,453.21 134,303.21 9/30/2020 316,503.00 167,746.59 148,756.41 1/1/2021 28,010.25 28,010.25 ‐ 14,845.43 14,845.43 ‐ 13,164.82 13,164.82 7/1/2021 380,000 2.30% 28,010.25 408,010.25 201,400 14,845.43 216,245.43 178,600 13,164.82 191,764.82 9/30/2021 436,020.50 231,090.87 204,929.64 1/1/2022 23,640.25 23,640.25 ‐ 12,529.33 12,529.33 ‐ 11,110.92 11,110.92 7/1/2022 535,000 2.63% 23,640.25 558,640.25 283,550 12,529.33 296,079.33 251,450 11,110.92 262,560.92 9/30/2022 582,280.50 308,608.67 273,671.84 1/1/2023 16,605.00 16,605.00 ‐ 8,800.65 8,800.65 ‐ 7,804.35 7,804.35 7/1/2023 555,000 2.80% 16,605.00 571,605.00 294,150 8,800.65 302,950.65 260,850 7,804.35 268,654.35 9/30/2023 588,210.00 311,751.30 276,458.70 1/1/2024 8,835.00 8,835.00 ‐ 4,682.55 4,682.55 ‐ 4,152.45 4,152.45 7/1/2024 570,000 3.10% 8,835.00 578,835.00 302,100 4,682.55 306,782.55 267,900 4,152.45 272,052.45 9/30/2024 587,670.00 311,465.10 276,204.90 3,495,000 574,721.50 4,069,721.50 4,069,721.50 1,852,350 304,602.40 2,156,952.40 1,642,650 270,119.11 1,912,769.11

DO IT IN HEWITT 271 Combination Tax and Revenue Certificate of Obligation Series 2014 ‐ GF 100% ‐ $6.835M Debt Service Schedule Annual Period Ending Principal Coupon Interest Debt Service Debt Service 1/1/2015 101,706.25 101,706.25 7/1/2015 101,706.25 101,706.25 9/30/2015 203,412.50 1/1/2016 101,706.25 101,706.25 7/1/2016 285,000.00 2.000% 101,706.25 386,706.25 9/30/2016 488,412.50 1/1/2017 98,856.25 98,856.25 7/1/2017 290,000.00 2.000% 98,856.25 388,856.25 9/30/2017 487,712.50 1/1/2018 95,956.25 95,956.25 7/1/2018 300,000.00 2.000% 95,956.25 395,956.25 9/30/2018 491,912.50 1/1/2019 92,956.25 92,956.25 7/1/2019 305,000.00 2.000% 92,956.25 397,956.25 9/30/2019 490,912.50 1/1/2020 89,906.25 89,906.25 7/1/2010 310,000.00 2.000% 89,906.25 399,906.25 9/30/2020 489,812.50 1/1/2021 86,806.25 86,806.25 7/1/2021 315,000.00 2.250% 86,806.25 401,806.25 9/30/2021 488,612.50 1/1/2022 83,262.50 83,262.50 7/1/2022 325,000.00 2.250% 83,262.50 408,262.50 9/30/2022 491,525.00 1/1/2023 79,606.25 79,606.25 7/1/2023 330,000.00 2.500% 79,606.25 409,606.25 9/30/2023 489,212.50 1/1/2024 75,481.25 75,481.25 7/1/2024 340,000.00 2.750% 75,481.25 415,481.25 9/30/2024 490,962.50 1/1/2025 70,806.25 70,806.25 7/1/2025 350,000.00 3.000% 70,806.25 420,806.25 9/30/2025 491,612.50 1/1/2026 65,556.25 65,556.25 7/1/2026 360,000.00 3.000% 65,556.25 425,556.25 9/30/2026 491,112.50 1/1/2027 60,156.25 60,156.25 7/1/2027 370,000.00 3.000% 60,156.25 430,156.25 9/30/2027 490,312.50 1/1/2028 54,606.25 54,606.25 7/1/2028 380,000.00 3.250% 54,606.25 434,606.25 9/30/2028 489,212.50 1/1/2029 48,431.25 48,431.25 7/1/2029 395,000.00 3.500% 48,431.25 443,431.25 9/30/2029 491,862.50 1/1/2030 41,518.75 41,518.75 7/1/2030 405,000.00 3.500% 41,518.75 446,518.75 9/30/2030 488,037.50 1/1/2031 34,431.25 34,431.25 7/1/2031 420,000.00 3.750% 34,431.25 454,431.25 9/30/2031 488,862.50 1/1/2032 26,556.25 26,556.25 7/1/2032 435,000.00 3.750% 26,556.25 461,556.25 9/30/2032 488,112.50 1/1/2033 18,400.00 18,400.00 7/1/2033 450,000.00 4.000% 18,400.00 468,400.00 9/30/2033 486,800.00 1/1/2034 9,400.00 9,400.00 7/1/2034 470,000.00 4.000% 9,400.00 479,400.00 9/30/2034 488,800.00 6,835,000.00 2,672,212.50 9,507,212.50 9,507,212.50 DO IT IN HEWITT 272

DEBT INFORMATION –

UTILTIES FUND

DO IT IN HEWITT 273 WATER & WASTEWATER FUND FY 14/15 SCHEDULE OF LONG TERM DEBT

Utility Fund Debt Service

Maturity Interest Rates Original Outstanding Principal Outstanding 1,600,000 Issue Date Low High Issue 10/1/2014 Refunding Payments 9/30/2015 1,400,000 2009 Refunded GO (29.12%) 7/1/2019 1.00 3.85 3,145,000 138,320 ‐ (26,208) 112,112 1,200,000 1,000,000 2013 Refunded GO (formerly 2004 CO)(47%) 7/1/2024 0.50 3.10 1,892,100 1,642,650 ‐ (112,800) 1,529,850 800,000 Total Refunding Bonds Outstanding 1,780,970 ‐ (139,008) 1,641,962 600,000 2007 Comb Tax & Rev CO (100%) 7/1/2032 3.75 5 9,250,000 7,950,000 ‐ (295,000) 7,655,000 400,000 2010 Comb Tax & Rev CO (77.945%) 7/1/2037 3 5 9,975,000 7,765,000 ‐ (35,000) 7,730,000 200,000 2012 Comb Tax & Rev CO (GF 37.7%; WS 62.3%) 7/1/2032 1.5 3 4,795,000 4,474,295 ‐ (183,705) 4,290,590 ‐ Total CO Bonds Outstanding 20,189,295 ‐ (513,705) 19,675,590 2036 2030 2037 2031 2032 2033 2034 2035 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

FY Total Bonds Outstanding 21,970,265 ‐ (652,713) 21,317,552 FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY

2007 Series 2009 Series Ref 2010 Series 2012 Series 2013 Series Ref Comb Tax & Rev COs 2007 Refunded Gen Obl 2009 Comb Tax & Rev COs 2010 Comb Tax & Rev COs 2012 Refunded Gen Obl 2013 Ref Total Bond Total Bond Total Bond Fiscal Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest P&I Year 295,000 324,990.00 619,990.00 26,208 5,010.82 31,218.82 35,000 354,537.50 389,537.50 183,705 106,011.54 289,716.54 112,800 35,858.88 148,658.88 652,713 826,408.74 1,479,121.74 FY 2015 310,000 312,452.50 622,452.50 26,208 4,159.06 30,367.06 35,000 353,487.50 388,487.50 189,932 103,255.98 293,187.98 112,800 35,069.28 147,869.28 673,940 808,424.33 1,482,364.33 FY 2016 325,000 296,952.50 621,952.50 27,664 3,307.30 30,971.30 40,000 352,437.50 392,437.50 196,159 100,407.00 296,566.00 110,450 34,054.08 144,504.08 699,273 787,158.38 1,486,431.38 FY 2017 335,000 280,702.50 615,702.50 29,120 2,242.24 31,362.24 45,000 351,237.50 396,237.50 205,500 96,483.82 301,983.82 112,800 32,728.68 145,528.68 727,420 763,394.74 1,490,814.74 FY 2018 355,000 268,140.00 623,140.00 29,120 1,121.12 30,241.12 40,000 349,662.50 389,662.50 211,727 92,373.82 304,100.82 115,150 31,036.68 146,186.68 750,997 742,334.12 1,493,331.12 FY 2019 370,000 254,650.00 624,650.00 75,000 348,262.50 423,262.50 214,841 88,139.26 302,980.26 119,850 28,906.42 148,756.42 779,691 719,958.18 1,499,649.18 FY 2020 385,000 240,405.00 625,405.00 20,000 345,450.00 365,450.00 224,182 83,842.44 308,024.44 178,600 26,329.64 204,929.64 807,782 696,027.08 1,503,809.08 FY 2021 405,000 225,582.50 630,582.50 10,000 344,650.00 354,650.00 230,409 79,358.82 309,767.82 251,450 22,221.84 273,671.84 896,859 671,813.16 1,568,672.16 FY 2022 420,000 209,382.50 629,382.50 10,000 344,250.00 354,250.00 239,750 74,750.62 314,500.62 260,850 15,608.70 276,458.70 930,600 643,991.82 1,574,591.82 FY 2023 440,000 192,582.50 632,582.50 10,000 343,850.00 353,850.00 252,205 69,356.26 321,561.26 267,900 8,304.90 276,204.90 970,105 614,093.66 1,584,198.66 FY 2024 460,000 174,982.50 634,982.50 230,000 343,350.00 573,350.00 261,545 63,681.66 325,226.66 951,545 582,014.16 1,533,559.16 FY 2025 480,000 156,582.50 636,582.50 240,000 331,850.00 571,850.00 264,659 57,796.88 322,455.88 984,659 546,229.38 1,530,888.38 FY 2026 500,000 137,382.50 637,382.50 250,000 319,850.00 569,850.00 274,000 51,180.40 325,180.40 1,024,000 508,412.90 1,532,412.90 FY 2027 525,000 117,132.50 642,132.50 255,000 307,350.00 562,350.00 283,341 44,330.40 327,671.40 1,063,341 468,812.90 1,532,153.90 FY 2028 550,000 95,870.00 645,870.00 265,000 294,600.00 559,600.00 292,682 36,538.52 329,220.52 1,107,682 427,008.52 1,534,690.52 FY 2029 570,000 73,595.00 643,595.00 280,000 281,350.00 561,350.00 305,136 28,489.78 333,625.78 1,155,136 383,434.78 1,538,570.78 FY 2030 600,000 50,225.00 650,225.00 290,000 267,350.00 557,350.00 314,477 19,335.68 333,812.68 1,204,477 336,910.68 1,541,387.68 FY 2031 625,000 25,625.00 650,625.00 300,000 254,662.50 554,662.50 330,045 9,901.36 339,946.36 1,255,045 290,188.86 1,545,233.86 FY 2032 970,000 241,537.50 1,211,537.50 970,000 241,537.50 1,211,537.50 FY 2033 1,015,000 197,887.50 1,212,887.50 1,015,000 197,887.50 1,212,887.50 FY 2034 1,065,000 152,212.50 1,217,212.50 1,065,000 152,212.50 1,217,212.50 FY 2035 1,115,000 104,287.50 1,219,287.50 1,115,000 104,287.50 1,219,287.50 FY 2036 1,170,000 54,112.50 1,224,112.50 1,170,000 54,112.50 1,224,112.50 FY 2037 7,950,000 3,437,235.00 11,387,235.00 138,320 15,840.55 154,160.55 7,765,000 6,638,225.00 14,403,225.00 4,474,295 1,205,234.24 5,679,529.24 1,642,650 270,119.10 1,912,769.10 21,970,265 11,566,654 33,536,918.89

DO IT IN HEWITT 274 WATER & WASTEWATER FUND FY 14/15 SCHEDULE OF LEASE SERVICE

Maturity Original Outstanding Principal Outstanding Issue Percentage Date Interest Rates Issue 10/1/2014 Additions Payments 9/30/2015 Pinnacle Lease #3 0.67876% 1/30/2015 1.43 500,000 114,738 ‐ (114,738) ‐ Pinnacle Lease #4 100% 2/1/2023 2.31 1,725,000 1,664,624 ‐ (51,752) 1,612,872 BB&T Lease 0.6104% 12/24/2017 1.05 340,080 332,668 ‐ (109,733) 222,935 Total Leases Outstanding 2,112,030 ‐ (276,223) 1,835,807 ‐ Pinnacle Pinnacle BB&T Total Lease #3 Lease #4 Lease Leases Fiscal Principal Interest Total Principal Interest Total Principal Interest Total Principal Interest Total Year 114,738.02 1,640.75 116,378.77 51,752.00 38,004.51 89,756.51 109,733.10 3,493.02 113,226.12 276,223.12 43,138.28 319,361.41 FY 2015 94,876.00 36,684.52 131,560.52 110,885.30 2,340.82 113,226.12 205,761.30 39,025.34 244,786.64 FY 2016 172,500.00 33,770.67 206,270.67 112,049.60 1,176.52 113,226.12 284,549.60 34,947.19 319,496.79 FY 2017 215,626.00 29,262.91 244,888.91 215,626.00 29,262.91 244,888.91 FY 2018 232,874.00 24,132.52 257,006.52 232,874.00 24,132.52 257,006.52 FY 2019 241,496.00 18,628.64 260,124.64 241,496.00 18,628.64 260,124.64 FY 2020 250,124.00 13,025.17 263,149.17 250,124.00 13,025.17 263,149.17 FY 2021 267,376.00 7,097.85 274,473.85 267,376.00 7,097.85 274,473.85 FY 2022 138,000.00 1,195.43 139,195.43 138,000.00 1,195.43 139,195.43 FY 2023 114,738.02 1,640.75 116,378.77 1,664,624.00 201,802.22 1,866,426.22 332,668.00 7,010.36 339,678.35 2,112,030.02 210,453.33 2,322,483.35 Totals

Pinnacle Public Finance, Inc. Vehicles & Heavy Equipment Lease #3 Total Total Total WS Principal WS Interest WS Total Date Pmt. No. Beg. Bal. Pmt. Amt. Principal Interest WS .678768 WS .678768 WS .678768 Pur. Price 1/30/2012 $ 500,000.00 1/30/2013 1 171,455.89 164,305.89 7,150.00 111,525.58 4,853.19 116,378.77 342,407.98 1/30/2014 2 171,455.89 166,655.47 4,800.42 113,120.40 3,258.38 116,378.78 172,419.41 1/30/2015 3 171,455.89 169,038.64 2,417.25 114,738.02 1,640.75 116,378.77 ‐ Rate 1.43% Totals 514,367.67 500,000.00 14,367.67 339,384.00 9,752.32 349,136.32 *acquired 3 PD Interceptors, 1 PD interceptor, 1 PD SUV, 1 F150 (WS), Clark Forklift(WS), and Vactor truck(WS).

Pinnacle Public Finance, Inc. Siemens Performance Contract Lease #4 Rate 2.31% Total Purchase Outstanding Annual Annual Annual Date Pmt. No. Beg. Bal. Total P&I Interest Principal Price Balance Interest Principal Totals Prin at EOY 6/29/2012 Rate: 2.31% 1,725,000 1,725,000.00 5/1/2013 1 42,052.63 33,427.63 8,625.00 1,750,702.50 1,716,375.00 8/1/2013 2 18,537.07 9,912.07 8,625.00 1,741,905.00 1,707,750.00 43,339.70 17,250.00 60,589.70 1,707,750.00 11/1/2013 3 18,487.26 9,862.26 8,625.00 1,733,107.50 1,699,125.00 2/1/2014 4 18,437.45 9,812.45 8,625.00 1,724,310.00 1,690,500.00 5/1/2014 5 22,700.64 9,762.64 12,938.00 1,711,113.24 1,677,562.00 8/1/2014 6 22,625.92 9,687.92 12,938.00 1,697,916.48 1,664,624.00 39,125.27 43,126.00 82,251.27 1,664,624.00 11/1/2014 7 22,551.20 9,613.20 12,938.00 1,684,719.72 1,651,686.00 2/1/2015 8 22,476.49 9,538.49 12,938.00 1,671,522.96 1,638,748.00 5/1/2015 9 22,401.77 9,463.77 12,938.00 1,658,326.20 1,625,810.00 8/1/2015 10 22,327.05 9,389.05 12,938.00 1,645,129.44 1,612,872.00 38,004.51 51,752.00 89,756.51 1,612,872.00 11/1/2015 11 22,252.34 9,314.34 12,938.00 1,631,932.68 1,599,934.00 2/1/2016 12 22,177.62 9,239.62 12,938.00 1,618,735.92 1,586,996.00 5/1/2016 13 43,664.90 9,164.90 34,500.00 1,583,545.92 1,552,496.00 8/1/2016 14 43,465.66 8,965.66 34,500.00 1,548,355.92 1,517,996.00 36,684.52 94,876.00 131,560.52 1,517,996.00 11/1/2016 15 43,266.43 8,766.43 34,500.00 1,513,165.92 1,483,496.00 2/1/2017 16 43,067.19 8,567.19 34,500.00 1,477,975.92 1,448,996.00 5/1/2017 17 60,117.95 8,367.95 51,750.00 1,425,190.92 1,397,246.00 8/1/2017 18 59,819.10 8,069.10 51,750.00 1,372,405.92 1,345,496.00 33,770.67 172,500.00 206,270.67 1,345,496.00 11/1/2017 19 59,520.24 7,770.24 51,750.00 1,319,620.92 1,293,746.00 2/1/2018 20 59,221.38 7,471.38 51,750.00 1,266,835.92 1,241,996.00 5/1/2018 21 63,235.53 7,172.53 56,063.00 1,209,651.66 1,185,933.00 8/1/2018 22 62,911.76 6,848.76 56,063.00 1,152,467.40 1,129,870.00 29,262.91 215,626.00 244,888.91 1,129,870.00 11/1/2018 23 62,588.00 6,525.00 56,063.00 1,095,283.14 1,073,807.00 2/1/2019 24 62,264.24 6,201.24 56,063.00 1,038,098.88 1,017,744.00 5/1/2019 25 66,251.47 5,877.47 60,374.00 976,517.40 957,370.00 8/1/2019 26 65,902.81 5,528.81 60,374.00 914,935. 92 896,996.00 24,132.52 232,874.00 257,006.52 896,996.00 11/1/2019 27 65,554.15 5,180.15 60,374.00 853,354.44 836,622.00 2/1/2020 28 65,205.49 4,831.49 60,374.00 791,772.96 776,248.00 5/1/2020 29 64,856.83 4,482.83 60,374.00 730,191 .48 715,874.00 8/1/2020 30 64,508.17 4,134.17 60,374.00 668,610.00 655,500.00 18,628.64 241,496.00 260,124.64 655,500.00 11/1/2020 31 64,159.51 3,785.51 60,374.00 607,028.52 595,126.00 2/1/2021 32 63,810.85 3,436.85 60,374.00 545,447.04 534,752.00 5/1/2021 33 67,776.19 3,088.19 64,688.00 479,465.28 470,064.00 8/1/2021 34 67,402.62 2,714.62 64,688.00 413,483.52 405,376.00 13,025.17 250,124.00 263,149.17 405,376.00 11/1/2021 35 67,029.05 2,341.05 64,688.00 347,501.76 340,688.00 2/1/2022 36 66,655.47 1,967.47 64,688.00 281,520.00 276,000.00 5/1/2022 37 70,593.90 1,593.90 69,000.00 211,140.00 207,000.00 8/1/2022 38 70,195.43 1,195.43 69,000.00 140,760.00 138,000.00 7,097.85 267,376.00 274,473.85 138,000.00 11/1/2022 39 69,796.95 796.95 69,000.00 70,380.00 69,000.00 2/1/2023 40 69,398.48 398.48 69,000.00 ‐ ‐ 1,195.43 138,000.00 139,195.43 ‐ 2,009,267.19 284,267.19 1,725,000.00 ‐ 284,267.19 1,725,000.00 2,009,267.19 ‐

BB&T Lease Financing Vehicles & Heavy Equipment GF .2784, WS .6104 and DF .1112 Total 0.2784 0.2784 0.2784 0.6104 0.6104 0.6104 0.1112 0.1112 0.1112 Date Pmt. No. Beg. Bal. Pmt. Amt. Principal Interest GF Prin GF Int GF Total UF Prin UF Int UF Total DF Prin DF Int DF Total 12/24/2013 $ 545,000.00 12/24/2014 1 185,494.95 179,772.45 5,722.50 50,048.65 1,593.14 51,641.79 109,733.10 3,493.02 113,226.12 19,990.70 636.34 20,627.04 12/24/2015 2 185,494.95 181,660.06 3,834.89 50,574.16 1,067.63 51,641.79 110,885.30 2,340.82 113,226.12 20,200.60 426.44 20,627.04 12/24/2016 3 185,494.95 183,567.49 1,927.46 51,105.19 536.60 51,641.79 112,049.60 1,176.52 113,226.12 20,412.70 214.33 20,627.04 Rate 1.05% 556,484.85 545,000.00 11,484.85 151,728.00 3,197.38 154,925.38 332,668.00 7,010.36 339,678.35 60,604.00 1,277.12 61,881.12 *vehicles and heavy equipment Recap: 545,000.00 11,484.86 556,484.85

DO IT IN HEWITT 275 City of Hewitt, TX 2007 Combination Tax and Revenue Certificates of Obligation Debt Service Schedule Period Fiscal Month Year Principal Coupon Interest Total Total 10‐Jan 2015 162,495.00 162,495.00 10‐Jul 2015 295,000.00 4.25 162,495.00 457,495.00 619,990.00 10‐Jan 2016 156,226.25 156,226.25 10‐Jul 2016 310,000.00 5 156,226.25 466,226.25 622,452.50 10‐Jan 2017 148,476.25 148,476.25 10‐Jul 2017 325,000.00 5 148,476.25 473,476.25 621,952.50 10‐Jan 2018 140,351.25 140,351.25 10‐Jul 2018 335,000.00 3.75 140,351.25 475,351.25 615,702.50 10‐Jan 2019 134,070.00 134,070.00 10‐Jul 2019 355,000.00 3.8 134,070.00 489,070.00 623,140.00 10‐Jan 2020 127,325.00 127,325.00 10‐Jul 2020 370,000.00 3.85 127,325.00 497,325.00 624,650.00 10‐Jan 2021 120,202.50 120,202.50 10‐Jul 2021 385,000.00 3.85 120,202.50 505,202.50 625,405.00 10‐Jan 2022 112,791.25 112,791.25 10‐Jul 2022 405,000.00 4 112,791.25 517,791.25 630,582.50 10‐Jan 2023 104,691.25 104,691.25 10‐Jul 2023 420,000.00 4 104,691.25 524,691.25 629,382.50 10‐Jan 2024 96,291.25 96,291.25 10‐Jul 2024 440,000.00 4 96,291.25 536,291.25 632,582.50 10‐Jan 2025 87,491.25 87,491.25 10‐Jul 2025 460,000.00 4 87,491.25 547,491.25 634,982.50 10‐Jan 2026 78,291.25 78,291.25 10‐Jul 2026 480,000.00 4 78,291.25 558,291.25 636,582.50 10‐Jan 2027 68,691.25 68,691.25 10‐Jul 2027 500,000.00 4.05 68,691.25 568,691.25 637,382.50 10‐Jan 2028 58,566.25 58,566.25 10‐Jul 2028 525,000.00 4.05 58,566.25 583,566.25 642,132.50 10‐Jan 2029 47,935.00 47,935.00 10‐Jul 2029 550,000.00 4.05 47,935.00 597,935.00 645,870.00 10‐Jan 2030 36,797.50 36,797.50 10‐Jul 2030 570,000.00 4.1 36,797.50 606,797.50 643,595.00 10‐Jan 2031 25,112.50 25,112.50 10‐Jul 2031 600,000.00 4.1 25,112.50 625,112.50 650,225.00 10‐Jan 2032 12,812.50 12,812.50 10‐Jul 2032 625,000.00 4.1 12,812.50 637,812.50 650,625.00 7,950,000.00 3,437,235.00 11,387,235.00 11,387,235.00

DO IT IN HEWITT 276 General Obligation Refunding Bonds Series 2009 ‐ (GF 70.88%; WS 29.12%) Debt Service Schedule Period Fiscal Principal Interest Total Principal Interest Total Year Principal Coupon Interest Total Total GF GF GF WS WS WS 1/1/15 8,603.75 8,603.75 6,098.34 6,098.34 2,505.41 2,505.41 7/1/15 90,000 3.25 8,603.75 98,603.75 107,207.50 63,792 6,098.34 69,890.34 26,208 2,505.41 28,713.41 75,988.68 31,218.82 1/1/16 7,141.25 7,141.25 5,061.72 5,061.72 2,079.53 2,079.53 7/1/16 90,000 3.25 7,141.25 97,141.25 104,282.50 63,792 5,061.72 68,853.72 26,208 2,079.53 28,287.53 73,915.44 30,367.06 1/1/17 5,678.75 5,678.75 4,025.10 4,025.10 1,653.65 1,653.65 7/1/17 95,000 3.85 5,678.75 100,678.75 106,357.50 67,336 4,025.10 71,361.10 27,664 1,653.65 29,317.65 75,386.20 30,971.30 1/1/18 3,850.00 3,850.00 2,728.88 2,728.88 1,121.12 1,121.12 7/1/18 100,000 3.85 3,850.00 103,850.00 107,700.00 70,880 2,728.88 73,608.88 29,120 1,121.12 30,241.12 76,337.76 31,362.24 1/1/19 1,925.00 1,925.00 1,364.44 1,364.44 560.56 560.56 7/1/19 100,000 3.85 1,925.00 101,925.00 103,850.00 70,880 1,364.44 72,244.44 29,120 560.56 29,680.56 73,608.88 30,241.12 475,000 54,397.50 529,397.50 529,397.50 336,680 38,556.95 375,236.95 138,320 15,840.55 154,160.55

DO IT IN HEWITT 277 Combination Tax and Revenue Certificate of Obligation Series 2010 (GF 22.055%; WS 77.945%) Debt Service Schedule Fiscal Principal Interest Total Principal Interest Total Month Principal Coupon Interest Total GF GF GF WS WS WS 1/1/15 227,831.25 50,562.50 50,562.50 177,268.75 177,268.75 1/1/16 226,631.25 49,887.50 49,887.50 176,743.75 176,743.75 7/1/16 80,000.00 3 226,631.25 533,262.50 45,000.00 49,887.50 94,887.50 35,000.00 176,743.75 211,743.75 9/30/16 144,775.00 388,487.50 1/1/17 225,431.25 49,212.50 49,212.50 176,218.75 176,218.75 7/1/17 80,000.00 3 225,431.25 530,862.50 40,000.00 49,212.50 89,212.50 40,000.00 176,218.75 216,218.75 9/30/17 138,425.00 392,437.50 1/1/18 224,231.25 48,612.50 48,612.50 175,618.75 175,618.75 7/1/18 85,000.00 3.5 224,231.25 533,462.50 40,000.00 48,612.50 88,612.50 45,000.00 175,618.75 220,618.75 9/30/18 137,225.00 396,237.50 1/1/19 222,743.75 47,912.50 47,912.50 174,831.25 174,831.25 7/1/19 85,000.00 3.5 222,743.75 530,487.50 45,000.00 47,912.50 92,912.50 40,000.00 174,831.25 214,831.25 9/30/19 140,825.00 389,662.50 1/1/20 221,256.25 47,125.00 47,125.00 174,131.25 174,131.25 7/1/20 195,000.00 3.75 221,256.25 637,512.50 120,000.00 47,125.00 167,125.00 75,000.00 174,131.25 249,131.25 9/30/20 214,250.00 423,262.50 1/1/21 217,600.00 44,875.00 44,875.00 172,725.00 172,725.00 7/1/21 70,000.00 4 217,600.00 505,200.00 50,000.00 44,875.00 94,875.00 20,000.00 172,725.00 192,725.00 9/30/21 139,750.00 365,450.00 1/1/22 216,200.00 43,875.00 43,875.00 172,325.00 172,325.00 7/1/22 110,000.00 4 216,200.00 542,400.00 100,000.00 43,875.00 143,875.00 10,000.00 172,325.00 182,325.00 9/30/22 187,750.00 354,650.00 1/1/23 214,000.00 41,875.00 41,875.00 172,125.00 172,125.00 7/1/23 110,000.00 4 214,000.00 538,000.00 100,000.00 41,875.00 141,875.00 10,000.00 172,125.00 182,125.00 9/30/23 183,750.00 354,250.00 1/1/24 211,800.00 39,875.00 39,875.00 171,925.00 171,925.00 7/1/24 115,000.00 5 211,800.00 538,600.00 105,000.00 39,875.00 144,875.00 10,000.00 171,925.00 181,925.00 9/30/24 184,750.00 353,850.00 1/1/25 208,925.00 37,250.00 37,250.00 171,675.00 171,675.00 7/1/25 450,000.00 5 208,925.00 867,850.00 220,000.00 37,250.00 257,250.00 230,000.00 171,675.00 401,675.00 9/30/25 294,500.00 573,350.00 1/1/26 197,675.00 31,750.00 31,750.00 165,925.00 165,925.00 7/1/26 470,000.00 5 197,675.00 865,350.00 230,000.00 31,750.00 261,750.00 240,000.00 165,925.00 405,925.00 9/30/26 293,500.00 571,850.00 1/1/27 185,925.00 26,000.00 26,000.00 159,925.00 159,925.00 7/1/27 490,000.00 5 185,925.00 861,850.00 240,000.00 26,000.00 266,000.00 250,000.00 159,925.00 409,925.00 9/30/27 292,000.00 569,850.00 1/1/28 173,675.00 20,000.00 20,000.00 153,675.00 153,675.00 7/1/28 510,000.00 5 173,675.00 857,350.00 255,000.00 20,000.00 275,000.00 255,000.00 153,675.00 408,675.00 9/30/28 295,000.00 562,350.00 1/1/29 160,925.00 13,625.00 13,625.00 147,300.00 147,300.00 7/1/29 530,000.00 5 160,925.00 851,850.00 265,000.00 13,625.00 278,625.00 265,000.00 147,300.00 412,300.00 9/30/29 292,250.00 559,600.00 1/1/30 147,675.00 7,000.00 7,000.00 140,675.00 140,675.00 7/1/30 560,000.00 5 147,675.00 855,350.00 280,000.00 7,000.00 287,000.00 280,000.00 140,675.00 420,675.00 9/30/30 294,000.00 561,350.00 1/1/31 133,675.00 ‐ 133,675.00 133,675.00 7/1/31 290,000.00 4.375 133,675.00 557,350.00 ‐ ‐ 290,000.00 133,675.00 423,675.00 9/30/31 557,350.00 1/1/32 127,331.25 ‐ 127,331.25 127,331.25 7/1/32 300,000.00 4.375 127,331.25 554,662.50 ‐ ‐ 300,000.00 127,331.25 427,331.25 9/30/32 554,662.50 1/1/33 120,768.75 ‐ 120,768.75 120,768.75 7/1/33 970,000.00 4.5 120,768.75 1,211,537.50 ‐ ‐ 970,000.00 120,768.75 1,090,768.75 9/30/33 1,211,537.50 1/1/34 98,943.75 ‐ 98,943.75 98,943.75 7/1/34 1,015,000.00 4.5 98,943.75 1,212,887.50 ‐ ‐ 1,015,000.00 98,943.75 1,113,943.75 9/30/34 1,212,887.50 1/1/35 76,106.25 ‐ 76,106.25 76,106.25 7/1/35 1,065,000.00 4.5 76,106.25 1,217,212.50 ‐ ‐ 1,065,000.00 76,106.25 1,141,106.25 9/30/35 1,217,212.50 1/1/36 52,143.75 ‐ 52,143.75 52,143.75 7/1/36 1,115,000.00 4.5 52,143.75 1,219,287.50 ‐ ‐ 1,115,000.00 52,143.75 1,167,143.75 9/30/36 1,219,287.50 1/1/37 27,056.25 ‐ 27,056.25 27,056.25 7/1/37 1,170,000.00 4.625 27,056.25 1,224,112.50 ‐ ‐ 1,170,000.00 27,056.25 1,197,056.25 9/30/37 1,224,112.50 9,945,000.00 7,837,100.00 17,782,100.00 2,180,000.00 1,198,875.00 3,378,875.00 7,765,000.00 6,638,225.00 14,403,225.00 DO IT IN HEWITT 278 Combination Tax and Revenue Certificate of Obligation Series 2012 (GF 37.72727%; WS 62.27273%) Debt Service Schedule Period Annual Ending Principal Coupon Interest Debt Service Debt Service GF Prin GF Int GF Total WS Prin WS Int WS Total 01/01/2015 85,118.75 85,118.75 ‐ 32,112.98 32,112.98 53,005.77 53,005.77 07/01/2015 295,000 1.50% 85,118.75 380,118.75 111,295 32,112.98 143,408.43 183,705 53,005.77 236,710.32 09/30/2015 465,237.50 175,521.41 289,716.09 01/01/2016 82,906.25 82,906.25 ‐ 31,278.26 31,278.26 51,627.99 51,627.99 07/01/2016 305,000 1.50% 82,906.25 387,906.25 115,068 31,278.26 146,346.44 189,932 51,627.99 241,559.81 09/30/2016 470,812.50 177,624.70 293,187.80 01/01/2017 80,618.75 80,618.75 ‐ 30,415.25 30,415.25 50,203.50 50,203.50 07/01/2017 315,000 2.00% 80,618.75 395,618.75 118,841 30,415.25 149,256.15 196,159 50,203.50 246,362.60 09/30/2017 476,237.50 179,671.41 296,566.09 01/01/2018 77,468.75 77,468.75 ‐ 29,226.84 29,226.84 48,241.91 48,241.91 07/01/2018 330,000 2.00% 77,468.75 407,468.75 124,500 29,226.84 153,726.84 205,500 48,241.91 253,741.91 09/30/2018 484,937.50 182,953.68 301,983.82 01/01/2019 74,168.75 74,168.75 ‐ 27,981.84 27,981.84 46,186.91 46,186.91 07/01/2019 340,000 2.00% 74,168.75 414,168.75 128,273 27,981.84 156,254.56 211,727 46,186.91 257,914.19 09/30/2019 488,337.50 184,236.41 304,101.09 01/01/2020 70,768.75 70,768.75 ‐ 26,699.12 26,699.12 44,069.63 44,069.63 07/01/2020 345,000 2.00% 70,768.75 415,768.75 130,159 26,699.12 156,858.20 214,841 44,069.63 258,910.55 09/30/2020 486,537.50 183,557.32 302,980.18 01/01/2021 67,318.75 67,318.75 ‐ 25,397.53 25,397.53 41,921.22 41,921.22 07/01/2021 360,000 2.00% 67,318.75 427,318.75 135,818 25,397.53 161,215.70 224,182 41,921.22 266,103.05 09/30/2021 494,637.50 186,613.23 308,024.27 01/01/2022 63,718.75 63,718.75 ‐ 24,039.34 24,039.34 39,679.41 39,679.41 07/01/2022 370,000 2.00% 63,718.75 433,718.75 139,591 24,039.34 163,630.24 230,409 39,679.41 270,088.51 09/30/2022 497,437.50 187,669.59 309,767.91 01/01/2023 60,018.75 60,018.75 ‐ 22,643.44 22,643.44 37,375.31 37,375.31 07/01/2023 385,000 2.25% 60,018.75 445,018.75 145,250 22,643.44 167,893.43 239,750 37,375.31 277,125.32 09/30/2023 505,037.50 190,536.86 314,500.64 01/01/2024 55,687.50 55,687.50 ‐ 21,009.37 21,009.37 34,678.13 34,678.13 07/01/2024 405,000 2.25% 55,687.50 460,687.50 152,795 21,009.37 173,804.82 252,205 34,678.13 286,882.68 09/30/2024 516,375.00 194,814.19 321,560.81 01/01/2025 51,131.25 51,131.25 ‐ 19,290.42 19,290.42 31,840.83 31,840.83 07/01/2025 420,000 2.25% 51,131.25 471,131.25 158,455 19,290.42 177,744.96 261,545 31,840.83 293,386.29 09/30/2025 522,262.50 197,035.38 325,227.12 01/01/2026 46,406.25 46,406.25 ‐ 17,507.81 17,507.81 28,898.44 28,898.44 07/01/2026 425,000 2.50% 46,406.25 471,406.25 160,341 17,507.81 177,848.71 264,659 28,898.44 293,557.54 09/30/2026 517,812.50 195,356.52 322,455.98 01/01/2027 41,093.75 41,093.75 ‐ 15,503.55 15,503.55 25,590.20 25,590.20 07/01/2027 440,000 2.50% 41,093.75 481,093.75 166,000 15,503.55 181,503.54 274,000 25,590.20 299,590.21 09/30/2027 522,187.50 197,007.09 325,180.41 01/01/2028 35,593.75 35,593.75 ‐ 13,428.55 13,428.55 22,165.20 22,165.20 07/01/2028 455,000 2.75% 35,593.75 490,593.75 171,659 13,428.55 185,087.63 283,341 22,165.20 305,506.12 09/30/2028 526,187.50 198,516.18 327,671.32 01/01/2029 29,337.50 29,337.50 ‐ 11,068.24 11,068.24 18,269.26 18,269.26 07/01/2029 470,000 2.75% 29,337.50 499,337.50 177,318 11,068.24 188,386.41 292,682 18,269.26 310,951.09 09/30/2029 528,675.00 199,454.64 329,220.36 01/01/2030 22,875.00 22,875.00 ‐ 8,630.11 8,630.11 14,244.89 14,244.89 07/01/2030 490,000 3.00% 22,875.00 512,875.00 184,864 8,630.11 193,493.74 305,136 14,244.89 319,381.26 09/30/2030 535,750.00 202,123.85 333,626.15 01/01/2031 15,525.00 15,525.00 ‐ 5,857.16 5,857.16 9,667.84 9,667.84 07/01/2031 505,000 3.00% 15,525.00 520,525.00 190,523 5,857.16 196,379.87 314,477 9,667.84 324,145.13 09/30/2031 536,050.00 202,237.03 333,812.97 01/01/2032 7,950.00 7,950.00 ‐ 2,999.32 2,999.32 4,950.68 4,950.68 07/01/2032 530,000 3.00% 7,950.00 537,950.00 199,955 2,999.32 202,953.85 330,045 4,950.68 334,996.15 09/30/2032 545,900.00 205,953.17 339,946.83 7,185,000 1,935,412.50 9,120,412.50 9,120,412.50 2,710,704 730,178.30 3,440,882.65 4,474,296 1,205,234.20 5,679,529.85

DO IT IN HEWITT 279 Combination Tax and Revenue Certificates of Obligation Series 2013 GF Refunding (formerly 2004 CO) Cross‐Pledged: GF 53%, WS 47% Debt Service Schedule

Annual Debt Period Ending Principal Coupon Interest Debt Service Service GF Prin GF Int GF Total WS Prin WS Int WS Total 1/1/2015 38,147.75 38,147.75 ‐ 20,218.31 20,218.31 ‐ 17,929.44 17,929.44 7/1/2015 240,000 0.70% 38,147.75 278,147.75 127,200 20,218.31 147,418.31 112,800 17,929.44 130,729.44 9/30/2015 316,295.50 167,636.62 148,658.89 1/1/2016 37,307.75 37,307.75 ‐ 19,773.11 19,773.11 ‐ 17,534.64 17,534.64 7/1/2016 240,000 0.90% 37,307.75 277,307.75 127,200 19,773.11 146,973.11 112,800 17,534.64 130,334.64 9/30/2016 314,615.50 166,746.22 147,869.29 1/1/2017 36,227.75 36,227.75 ‐ 19,200.71 19,200.71 ‐ 17,027.04 17,027.04 7/1/2017 235,000 1.20% 36,227.75 271,227.75 124,550 19,200.71 143,750.71 110,450 17,027.04 127,477.04 9/30/2017 307,455.50 162,951.42 144,504.09 1/1/2018 34,817.75 34,817.75 ‐ 18,453.41 18,453.41 ‐ 16,364.34 16,364.34 7/1/2018 240,000 1.50% 34,817.75 274,817.75 127,200 18,453.41 145,653.41 112,800 16,364.34 129,164.34 9/30/2018 309,635.50 164,106.82 145,528.69 1/1/2019 33,017.75 33,017.75 ‐ 17,499.41 17,499.41 ‐ 15,518.34 15,518.34 7/1/2019 245,000 1.85% 33,017.75 278,017.75 129,850 17,499.41 147,349.41 115,150 15,518.34 130,668.34 9/30/2019 311,035.50 164,848.82 146,186.69 1/1/2020 30,751.50 30,751.50 ‐ 16,298.30 16,298.30 ‐ 14,453.21 14,453.21 7/1/2020 255,000 2.15% 30,751.50 285,751.50 135,150 16,298.30 151,448.30 119,850 14,453.21 134,303.21 9/30/2020 316,503.00 167,746.59 148,756.41 1/1/2021 28,010.25 28,010.25 ‐ 14,845.43 14,845.43 ‐ 13,164.82 13,164.82 7/1/2021 380,000 2.30% 28,010.25 408,010.25 201,400 14,845.43 216,245.43 178,600 13,164.82 191,764.82 9/30/2021 436,020.50 231,090.87 204,929.64 1/1/2022 23,640.25 23,640.25 ‐ 12,529.33 12,529.33 ‐ 11,110.92 11,110.92 7/1/2022 535,000 2.63% 23,640.25 558,640.25 283,550 12,529.33 296,079.33 251,450 11,110.92 262,560.92 9/30/2022 582,280.50 308,608.67 273,671.84 1/1/2023 16,605.00 16,605.00 ‐ 8,800.65 8,800.65 ‐ 7,804.35 7,804.35 7/1/2023 555,000 2.80% 16,605.00 571,605.00 294,150 8,800.65 302,950.65 260,850 7,804.35 268,654.35 9/30/2023 588,210.00 311,751.30 276,458.70 1/1/2024 8,835.00 8,835.00 ‐ 4,682.55 4,682.55 ‐ 4,152.45 4,152.45 7/1/2024 570,000 3.10% 8,835.00 578,835.00 302,100 4,682.55 306,782.55 267,900 4,152.45 272,052.45 9/30/2024 587,670.00 311,465.10 276,204.90 3,495,000 574,721.50 4,069,721.50 4,069,721.50 1,852,350 304,602.40 2,156,952.40 1,642,650 270,119.11 1,912,769.11

DO IT IN HEWITT 280

ORDINANCES

DO IT IN HEWITT 281 DO IT IN HEWITT 282 DO IT IN HEWITT 283 DO IT IN HEWITT 284 PERSONNEL

DO IT IN HEWITT 285 Staffing Plan FY 14-15 FY 13-14 FY 12-13 FY 11-12 FY 10-11 FY 09-10 FY 08-09 POSITION Dept Employees Employees Employees Employees Employees Employees Employees Equipment Operator-Drainage121111100 Field Asst 1 - Drainage123333300 Total Drainage Fund Employees4444400 Chief of Police 411111111 Records Administrator411111111 Deputy Chief 411111222 Corporal 414444440 Sergeant 414444444 Patrol Officer 41 13 13 11 11 11 11 15 Animal Control Officer411111111 Code Enforcement Officer411111000 Head Dispatcher 411111111 Dispatcher 416.56.56.56666 Total Police Department 33.5 33.5 31.5 31 31 31 31 Public Works Supervisor500011111 Equipment Operator -Streets & Parks502222222 Field Assistant I 504434488 Motor Mechanic 501111111 Total Streets & Parks 777881212 Fire Chief 561110111 Fire Captain 560001111 Firefighter I 56111110108 8 11 Firefighter II 560000001 Firefighter III-Lieutenant 56 3333440 Total Fire Department 15 15 14 14 14 14 14 Library Director 591111111 Library Assistants 593333222 Part-Time Assistants (1/2 FTE ea)59221110.50.5 Total Library665543.53.5 City Manager 611111111 Assistant City Manager611111000 City Secretary 611111111 Project Assistant 611110000 Asst to the City Secretary61000000.50.5 Total Administration 444322.52.5 Community Development Director631111111 Asst to the CD Director631110000 CD Clerk 630001111 Building Inspector 631111111 Part -Time Inspector6300.500000 Code Enforcement Officer630000111 Custodian 631111111 Total Community Development44.544555 Finance Director 641111111 Asst Finance Director641111111 Accounting Specialist6410.2500000 Total Finance32.2522222 Muncipal Court Administrator651111111 Court Clerk 651111111 Total Municipal Court2222222 Human Resource Director661111111 Total General Fund Employees 75.5 75.25 70.5 70 69 73 73 Community Services Director910001111 Asst to the CS Director910000111 Director of Utilities 91 1111111 Utilities Crew Leader 91 1111000 Equipment Operator-Utilities 91 2222333 Field Asst 1 - Utilities 91 5555555 Total Utiltiies Maintenance 9 9 9 10 11 11 11 Utility Billing Supervisor 94 1111111 Utility Billing Clerk 94 333211.51.5 Total Utility Billing 444322.52.5 Total Wastewater Fund Employees 13 13 13 13 13 13.5 13.5 Total City Employees 92.5 92.25 87.5 87 86 86.5 86.5 Dept FY 14-15 FY 13-14 FY 12-13 FY 11-12 FY 10-11 FY 09-10 FY 08-09 DO IT IN HEWITT 286 CITY OF HEWITT SALARY SCHEDULE Proposed for FY 14/15 Increase in Step = 2% Position Grade Entry 1234567891011121314151617 Building Maintenance 10 2191 2235 2279 2325 2371 2419 2467 2517 2567 2618 2671 2724 2778 2834 2891 2949 3007 3068 Clerk I 26,289 26,815 27,351 27,899 28,456 29,026 29,606 30,198 30,802 31,418 32,047 32,688 33,341 34,008 34,688 35,382 36,090 36,811 Field Assistant I 12.639 12.892 13.150 13.413 13.681 13.955 14.234 14.518 14.809 15.105 15.407 15.715 16.029 16.350 16.677 17.011 17.351 17.698

Animal Control Officer 11 2345 2392 2439 2488 2538 2589 2640 2693 2747 2802 2858 2915 2974 3033 3094 3156 3219 3283 Clerk II 28,136 28,699 29,273 29,858 30,455 31,065 31,686 32,320 32,966 33,625 34,298 34,984 35,683 36,397 37,125 37,868 38,625 39,397 Communication Specialist 13.527 13.798 14.073 14.355 14.642 14.935 15.234 15.538 15.849 16.166 16.489 16.819 17.155 17.499 17.849 18.206 18.570 18.941 Field Assistant II

Building Inspector 12 2558 2609 2661 2714 2769 2824 2881 2938 2997 3057 3118 3180 3244 3309 3375 3443 3511 3582 Clerk III 30,694 31,308 31,934 32,573 33,224 33,889 34,567 35,258 35,963 36,682 37,416 38,164 38,928 39,706 40,500 41,310 42,137 42,979 Code Enforcement Officer 14.757 15.052 15.353 15.660 15.973 16.293 16.619 16.951 17.290 17.636 17.988 18.348 18.715 19.090 19.471 19.861 20.258 20.663 Field Assistant III Heavy Equipment Operator

Court Administrator 13 2905 2963 3022 3083 3144 3207 3271 3337 3403 3471 3541 3612 3684 3758 3833 3909 3988 4067 Communication Supervisor 34,857 35,554 36,265 36,990 37,730 38,485 39,254 40,040 40,840 41,657 42,490 43,340 44,207 45,091 45,993 46,913 47,851 48,808 Clerk IV 16.758 17.093 17.435 17.784 18.140 18.502 18.872 19.250 19.635 20.027 20.428 20.837 21.253 21.678 22.112 22.554 23.005 23.465 Sr. Equipment Operator

Fleet Maintenance Mgr 14 3360 3427 3496 3565 3637 3710 3784 3859 3937 4015 4096 4178 4261 4346 4433 4522 4612 4705 Utility Crew Leader 40,318 41,124 41,947 42,786 43,641 44,514 45,404 46,313 47,239 48,184 49,147 50,130 51,133 52,155 53,199 54,262 55,348 56,455 19.384 19.771 20.167 20.570 20.981 21.401 21.829 22.266 22.711 23.165 23.628 24.101 24.583 25.075 25.576 26.088 26.609 27.142

Public Works Supervisor 16 4373 4460 4550 4641 4733 4828 4925 5023 5124 5226 5331 5437 5546 5657 5770 5885 6003 6123 Library Director 52,476 53,525 54,596 55,688 56,802 57,938 59,096 60,278 61,484 62,714 63,968 65,247 66,552 67,883 69,241 70,626 72,038 73,479 25.229 25.733 26.248 26.773 27.308 27.855 28.412 28.980 29.560 30.151 30.754 31.369 31.996 32.636 33.289 33.955 34.634 35.326

Deputy Police Chief 17 4680 4773 4869 4966 5065 5167 5270 5376 5483 5593 5705 5819 5935 6054 6175 6298 6424 6553 Deputy Fire Chief 56,157 57,280 58,425 59,594 60,786 62,001 63,241 64,506 65,796 67,112 68,455 69,824 71,220 72,645 74,097 75,579 77,091 78,633 26.998 27.538 28.089 28.651 29.224 29.808 30.405 31.013 31.633 32.266 32.911 33.569 34.240 34.925 35.624 36.336 37.063 37.804

Department Head 18 5479 5589 5701 5815 5931 6050 6171 6294 6420 6548 6679 6813 6949 7088 7230 7375 7522 7672 Assistant City Manager 65,752 67,067 68,409 69,777 71,173 72,596 74,048 75,529 77,039 78,580 80,152 81,755 83,390 85,058 86,759 88,494 90,264 92,069 31.612 32.244 32.889 33.547 34.218 34.902 35.600 36.312 37.038 37.779 38.535 39.305 40.091 40.893 41.711 42.545 43.396 44.264 Grade Entry 1234567891011121314151617

DO IT IN HEWITT 287 Hewitt Police Department Hewitt Police Department Step Pay Plan Step Pay Plan - Proposed Effective 10-1-13 Effective 10-1-14

Steps Steps (2080 hrs) (2080 hrs) A BCDE ABCDE Police Officer Police Officer Hourly 17.484$ 17.833$ 18.190$ 18.554$ 19.296$ Hourly 18.009$ 18.369$ 18.736$ 19.111$ 19.875$ Annual 36,367 37,093 37,835 38,592 40,136 Annual 37,458 38,207 38,971 39,750 41,340 Monthly 3,031 3,091 3,153 3,216 3,345 Monthly 3,121 3,184 3,248 3,313 3,445 2.00% 2.00% 2.00% 4.00% 2.00% 2.00% 2.00% 4.00% (2080 hrs) (2080 hrs) A BCD ABCD Corporal Corporal Hourly 20.368$ 20.776$ 21.191$ 22.039$ Hourly 20.979$ 21.399$ 21.827$ 22.700$ Annual 42,365 43,214 44,077 45,841 Annual 43,636 44,509 45,399 47,215 Monthly 3,530 3,601 3,673 3,820 Monthly 3,636 3,710 3,783 3,935 2.00% 2.00% 4.00% 2.00% 2.00% 4.00% (2080 hrs) (2080 hrs) A BCD ABCD Sergeant Sergeant Hourly 23.384$ 23.852$ 24.329$ 25.302$ Hourly 24.086$ 24.567$ 25.059$ 26.061$ Annual 48,639 49,612 50,604 52,628 Annual 50,098 51,100 52,122 54,207 Monthly 4,053 4,134 4,217 4,386 Monthly 4,175 4,258 4,343 4,517 2.00% 2.00% 4.00% 2.00% 2.00% 4.00% (2080 hrs) (2080 hrs) A BCD ABCD Lieutenant Lieutenant Hourly 25.809$ 26.325$ 26.851$ 27.925$ Hourly 26.583$ 27.115$ 27.657$ 28.764$ Annual 53,683 54,756 55,850 58,084 Annual 55,293 56,399 57,527 59,828 Monthly 4,474 4,563 4,654 4,840 Monthly 4,608 4,700 4,794 4,986 2.00% 2.00% 4.00% 2.00% 2.00% 4.00%

DO IT IN HEWITT 288 Hewitt Fire Department Hewitt Fire Department Step Pay Plan Step Pay Plan -Proposed Effective 10-1-13 Effective 10-1-14

Steps Steps (2920 hrs) (2920 hrs) A A ENTRY FIREFIGHTER ENTRY FIREFIGHTER Hourly 12.211$ Hourly 12.577$ Annual 35,656 Annual 36,726 Monthly 2,971 Monthly 3,060

(2920 hrs) (2920 hrs) ABCDE ABCD E FIREFIGHTER FIREFIGHTER Hourly 12.454$ 12.703$ 12.957$ 13.216$ 13.745$ Hourly 12.828$ 13.084$ 13.346$ 13.613$ 14.157$ Annual 36,366 37,093 37,834 38,591 40,135 Annual 37,457 38,206 38,970 39,749 41,339 Monthly 3,030 3,091 3,153 3,216 3,345 Monthly 3,121 3,184 3,247 3,312 3,445 2.00% 2.00% 2.00% 4.00% 2.00% 2.00% 2.00% 4.00% (2920 hrs) (2920 hrs) ABCD ABCD LIEUTENANT LIEUTENANT Hourly 14.799$ 15.095$ 15.397$ 16.013$ Hourly 15.243$ 15.548$ 15.859$ 16.493$ Annual 43,213 44,077 44,959 46,758 Annual 44,509 45,400 46,308 48,160 Monthly 3,601 3,673 3,747 3,896 Monthly 3,709 3,783 3,859 4,013 2.00% 2.00% 4.00% 2.00% 2.00% 4.00%

DO IT IN HEWITT 289 GLOSSARY

DO IT IN HEWITT 290 BUDGET GLOSSARY

AMR: acronym for Automatic Meter Reading. The city uses wireless water meters. Water meters are read twice a month. Readings are transmitted wirelessly to the Utility Billing department.

Account: A separate financial reporting unit for budgeting, management or accounting purposes. All budgetary transactions, whether revenue or expenditure, are recorded in accounts. Several related accounts may be grouped together in a fund. A list is called a chart of accounts.

Accounting Standards: The generally accepted accounting principles (GAAP) promulgated by the Governmental Accounting Standards Board that guide the recording and reporting of financial information by state and local governments.

Accounting System: The methods and records established to identify, assemble, analyze, classify, record and report the City's transactions and to maintain accountability for the related assets and liabilities.

Accounts Payable: A short‐term (one year or less) liability reflecting amounts owed for goods and services received by the City.

Accounts Receivable: An asset reflecting amounts due from other persons/organizations for goods and services furnished by the City.

Accrual Accounting: A basis of accounting in which revenues and expenses are recorded at the time they occur, rather than at the time cash is received or paid by the City.

Ad Valorem Taxes: Commonly referred to as property taxes. The charges levied on all real, and certain personal property according to the property's assessed value and the tax rate.

Appropriation: An authorization made by the City Council which permits the City to make expenditures and incur obligations.

DO IT IN HEWITT 291 Assessed Value: A valuation set upon real estate or other property as a basis for levying property taxes. All property values within the City of Hewitt are assessed by the McLennan County Appraisal District.

Asset: The resources and property of the City that can be used or applied to cover liabilities.

Audit Report: The report prepared by an auditor covering the audit or investigation of an entity=s financial position for a given period of time, usually a year. As a general rule, the report should include: 1) a statement of the scope of the audit; 2) explanatory comments concerning exceptions from generally accepted auditing standards; 3) opinions; 4) explanatory comments concerning verification procedures; 5) financial statements and schedules; and 6) statistical tables, supplementary comments and recommendations. The auditor= signature follows 3). The city is required to have an annual audit conducted by qualified certified public accountants.

Available Cash: Unobligated cash and cash equivalents.

Basis of Accounting: Refers to when revenues, expenditures, expenses and transfers (and the related assets and liabilities) are recorded and reported in the financial statements. Used as a source of monies to pay general obligation debt and to support the general fund.

Basis of Budgeting: The basis of accounting for the budget, i.e. basis of budgeting, is the cash basis. Revenues are recognized when received; expenses are recorded when paid.

Balanced Budget: A budget for which expenditures are equal to income.

Bond: A written promise to pay a specified sum of money (called the principal amount) at a specified date or dates in the future (called the maturity dates), and carrying interest at a specified rate, usually paid periodically. The difference between a bond and a note is that a bond is issued for a longer period and requires greater legal formality. The most common types of bonds are general obligation and revenue bonds. Bonds are usually used for construction of large capital projects, such as buildings, streets, and water/sewer system improvements.

DO IT IN HEWITT 292 Bonded Debt: The portion of indebtedness represented by outstanding (unpaid) bonds.

Bonds Issued: Bonds sold by the City.

Bonds Payable: The face value of bonds issued and unpaid.

Bond Resolution: Issuer legal document which details the mechanics of the bond issuer, security features, covenants, events of default and other key features of the issue=s legal structure. Indentures and trust agreements are functionally similar types of documents, and the use of each depends on the individual issue and issuer.

Budget: A financial plan for a specified period of time (fiscal year for the City) that includes an estimate of proposed expenditures and the means for financing them.

Budget Message: A general discussion of the proposed budget as presented in writing by the City Manager to the City Council.

CAFR: Comprehensive Annual Financial Report is the official annual report of the city. It is created by independent, peer reviewed, Certified Public Accountants in accordance with GAAP and GASB, Generally Accepted Accounting Principles and Generally Accepted Accounting Principles.

Capital Budget: A spending plan for improvements to or acquisition of land, facilities and infrastructure that balances revenues and expenditures, specifies the sources of revenues, and lists each project or acquisition. Normally a capital budget must be approved by the legislative body. The capital budget and accompanying appropriation ordinance may be included in a consolidated budget document that has a section devoted to capital expenditures and another to operating expenditures. Or two separate documents may be prepared B one for the capital budget and one for the operating budget.

Capital Improvements: Expenditures for the construction, purchase or renovation of City facilities or property.

Capital Outlay: Expenditures resulting in the acquisition of or addition to the City's fixed assets.

DO IT IN HEWITT 293

Cash: Currency on hand and demand deposits with banks or other financial institutions.

Cash Basis: A basis of accounting in which transactions are recorded on when cash is received or disbursed. The basis of accounting for the budget is the cash basis.

Cash Equivalents: Short‐term, highly liquid investments that are readily convertible to known amounts of cash.

Charter: A charter is a document that establishes the city’s governmental structure and provides for the distribution of powers and duties among the various branches of government. In order to be implemented, the charter must be approved by the people at an election. Likewise, changes in the charter must be approved by a vote of the people.

Debt Limit: Statutory or constitutional limit on the principal amount of debt that an issuer may incur (or that it may have outstanding at any one time).

Debt Service: Principal and Interest to be paid within the fiscal year.

Debt Service Coverage: The ratio of net revenues to the debt service requirements.

Debt Service Fund: One or more funds established to account for revenues used to repay the principal and interest on debt. See also Debt Service Reserve Fund.

Debt Service Requirements: The amount of money required to pay interest and principal for a specified period on outstanding debt.

Debt Service Reserve Fund: The fund into which are paid monies required by the trust agreement or indenture as a reserve against a temporary interruption in the receipt of revenues which are pledged for the payment of the bonds. A common deposit requirement for a debt service reserve fund is six months or one year’s debt service on the bonds.

Delinquent Taxes: Property taxes remaining unpaid after the due date. Delinquent taxes incur penalties and interest at rates specified by law.

DO IT IN HEWITT 294 Department: A functional group of the City with related activities aimed at accomplishing a major City service or program. (e.g. the Department).

Depreciation: The proration of the cost of a fixed asset over the estimated service life of the asset. Each period is charged with a portion of such cost, and through this process, the entire cost of the asset is ultimately charged off as an expense. In governmental accounting, depreciation may be recorded in proprietary funds .

Division: A grouping of related activities within a particular department. Ex: Animal Control is a division of the Police Department.

Effective Tax Rate: The rate that produces the same effect in terms of the total amount of taxes as compared to the prior year. The computation of the effective rate is governed by the State of Texas.

EMSI: Examination Management Services, Inc. is a market leader in medical information services.

Encumbrance: The commitment of appropriated funds to purchase an item or service. An encumbrance differs from an account payable in that a commitment is referred to as an encumbrance before goods or services are received. After receipt, the commitment is referred to as an account payable.

Enterprise Fund: Enterprise funds operate by creating a cash flow to pay for the fund’s services thru fees and charges. The enterprise funds used by the city are the Water & Wastewater Fund and the Drainage Fund.

Expenditure: If accounts are kept on the accrual basis, this term designates total charges incurred, whether paid or unpaid. If they are kept on the cash basis, the term covers only actual disbursements for these purposes. (Note: An encumbrance is not an expenditure. An encumbrance reserves funds to be expended.)

Expense: Charges incurred, whether paid or unpaid, for operation, maintenance, interest and other charges which are presumed to benefit the current fiscal period.

Equity: The difference between assets and liabilities of the fund.

Fiscal Year (Period): The time period designated by the City signifying the beginning

DO IT IN HEWITT 295 and ending period for recording the financial transactions of the City. The City of Hewitt’s fiscal year begins each October 1st and ends the following September 30th.

Fixed Assets: Assets of a long‐term character which are intended to be held or used, such as land, buildings, machinery, furniture and equipment.

Full Faith and Credit: A pledge of the City's taxing power to repay debt obligations. Bonds carrying such pledges are referred to as general obligation bonds or tax‐ supported debt.

Fund: Separate fiscal and accounting entities with their own resources and budgets necessary to carry on specific activities and attain certain objectives.

Fund Balance: The difference between fund assets and fund liabilities of governmental & trust funds. Fund Balance for general fund types using modified accrual accounting closely equates to available cash.

Fund Equity: The difference between assets and liabilities of the fund.

General Fund: The major fund in most governmental entities. While other funds tend to be restricted to a single purpose, the general fund is a catch all for general governmental purposes. The General Fund contains the activities commonly associated with municipal government, such as police and fire protection, libraries, parks and recreation.

General Obligation Bonds: A municipal bond backed by the full faith, credit and taxing power of the City. See Full Faith and Credit.

Goals: Department/division objectives intended to be accomplished or begun within the coming fiscal year.

Governmental Fund: Funds thru which much of government is financed, including general, special revenue, capital projects and debt service funds.

HVAC: Heating, ventilating and air‐conditioning.

Home Rule City: Home rule cities are cities over 5,000 population in which citizens have adopted home rule charters.

DO IT IN HEWITT 296

Indenture: Issued legal document which details the mechanics of the bond issue, security features, covenants, events of default and other key features of the issue’s legal structure.

Interest & Sinking Fund: See Debt Service Reserve Fund.

I&S Rate: Interest and Sinking Rate. The term ‘Interest and Sinking’ is an older accounting term describing the act of setting aside funds into a separate account for payment on debt. City’s pay debt on an annual basis and set aside into the I&S fund the amount to pay, or service, that annual debt. To support that debt a portion of the city’s ad valorem tax rate is dedicated as the I&S rate.

Interfund Transfers: All interfund transactions except loans and reimbursements.

Intergovernmental Revenues: Revenues from other governments in the form of grants, entitlement, or payments in lieu of taxes.

M&O Rate: Maintenance and Operations Rate. This is the portion of the tax rate that is dedicated to running the operations of the General Fund. See also the I&S Rate and the Total Tax Rate.

Major Funds: Any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget should be considered a major fund.

Machinery & Equipment: Property that does not lose its identity when removed from its location and is not changed materially by use.

Maintenance: The act of keeping assets in a state of good repair. It includes preventive maintenance; normal periodic repairs; part replacement and so forth as needed to maintain the asset so that it continues to provide normal service.

Mission: The basis purpose of a department/division – the reason for its existence.

Modified Accrual Basis: Method of governmental accounting recognizes revenues when they are measurable and available and expenditures when goods or services are received (except for principal & interest on long term debt (when paid.)

DO IT IN HEWITT 297

NRMSIR: Nationally Recognized Municipal Securities Information Repository. In July 2009 the Securities and Exchange Commission (“SEC”) amended Rule 15c2‐12 regarding municipal securities disclosure by substituting the four former NRMSIR’s with the Municipal Securities Rulemaking Board’s (“MSRB”) Electronic Municipal Market Access System (“EMMA”). The city is required to file all CAFRs, Adopted Budgets and Official Bond Documents with EMMA.

Operating Budget: Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing activities of the City are controlled.

Operating Expenses: Proprietary fund expenses related directly to the Fund's primary activities.

Operating Income: The excess of proprietary fund operating revenues over operating expenses.

Operating Revenues: Proprietary fund revenues directly related to the fund's primary activities. They consist primarily of user charges for goods and services.

Ordinance: A formal legislative enactment by the City Council.

Paying Agent: An entity responsible for paying of bond principal and interest on behalf of the City.

Principal: The face value of a bond, payable on stated dates of maturity.

Proprietary Fund: A governmental accounting fund in which the services provided, such as water and sewer service, are financed and operated similarly to those in a private business. The intent is that the costs of providing these services be recovered through user charges (e.g. water/sewer bills). The example of water and sewer service is also called an Enterprise Fund. The other type of Proprietary Fund used by governments to cover costs of services is an Internal Service Fund.

Reimbursements: Interfund transactions that constitute reimbursements to a fund for expenditures or expenses initially made from it, but that properly apply to another fund.

DO IT IN HEWITT 298

Resolution: A special or temporary order of the City Council. Requires less formality than an ordinance.

Retained Earnings: An equity account reflecting the accumulated earnings of a proprietary fund.

Revenue Bonds: Bonds whose principal and interest are payable exclusively from earnings of a proprietary fund.

Right of Way: 1) a legal right of passage over another person’s ground; 2) the land on which a public road is built.

SCADA: Acronym for Supervisory Control And Data Acquisition. The city installed SCADA tools for greater oversight of the daily water usage from the city’s wells.

Special Revenue Fund: Accounts for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes.

Taxes: Compulsory charges levied by a government to finance services performed for the common benefit.

Tax Levy Ordinance: An ordinance through which taxes are levied.

Tax Rate: The amount of tax levied for each $100 of taxable value. The Total Tax Rate is comprised of the M&O and I&S Rates. See also M&O Rate and I&S Rate.

Tax Roll: The official list showing the amount of taxes levied against each taxpayer or property.

TML: The Texas Municipal League is a voluntary coalition of Texas municipalities created for the purpose of furthering and enhancing causes of mutual interest to Texas cities. The League offers educational and training opportunities, legislative activities and legal advisement to its members. Additionally, the League has intergovernmental risk pools that offer insurance coverage on an elective basis.

TMRS: The Texas Municipal Retirement System provides retirement plans to its member cities. Each city selects its own plan and its contributions are computed on

DO IT IN HEWITT 299 each individual city's plan and actuarial information. The City of Hewitt currently offers its employees a retirement plan with 2:1 matching, 5 year vesting and retirement eligibility at age 60 or at any age with 25 years of service.

Trend Analysis: The analysis of a variable’s past value changes to determine if a trend exists and, if so, what the trend indicates, i.e. analysis of changes over time.

Trust Agreement: Agreement between the issuer and the trustee (1) authorizing and securing the bonds; (2) containing the issuer=s covenants and obligations with respect to the project and payment of debt service; (3) specifying the events of default; and (4) outlining the trustee=s fiduciary responsibilities and bondholders=s rights.

TWCC: Texas Worker’s Compensation Commission. State agency regulating worker’s compensation in Texas.

Unencumbered Balance: The amount of an appropriation that is not expended or encumbered. It is essentially the amount of money still available for future purchases.

User Charges: The payment of a fee for direct receipt of a public service by the party who benefits from the service (e.g. water and sewer fees).

Utility Fund – See also Proprietary Fund.

WMARSS: Waco Metropolitan Area Regional Sewer System. A joint wastewater treatment effort by the cities of Bellmead, Hewitt, Lacy Lakeview, Lorena, Robinson, Waco and Woodway sharing centralized regional service facilities.

WWTP: Wastewater treatment plant. An industrial structure designed to remore biological or chemical waste products from water, thereby permitting the treated water to be used for other purposes.

Working Capital: Current assets minus current liabilities. Working capital measures liquid assets available. The number can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital will be more successful since they can expand and improve their operations. Companies with negative working capital may lack the funds necessary for growth. Also called net current assets or current capital.

DO IT IN HEWITT 300

Appendix A

DO IT IN HEWITT 301 EXHIBIT A

INVESTMENT POLICY CITY OF HEWITT Approved by City Council December 2, 2013

I. POLICY

It is the policy of the City of Hewitt (the " City") that after allowing for the anticipated cash flow requirements of the City and giving due consideration to the safety and risk of investment, all available funds shall be invested in conformance with these legal and administrative guidelines, seeking to achieve reasonable interest earnings based on market conditions.

Effective cash management is recognized as essential to good fiscal management. Investment interest is a source of revenue to City funds. The City' s investment portfolio shall be designed and managed in a manner intended to maximize this revenue source, to be responsive to public trust, and to be in compliance with legal requirements and limitations.

Investments shall be made with the primary objectives,of Safety and preservation of principal Maintenance of sufficient liquidity to meet operating needs Diversification to minimize market risks Public trust from prudent investment activities Achievement of reasonable interest earnings

II. PURPOSE

The purpose of this Investment Policy is to establish guidelines and policies controlling the investment of the City' s funds. The Policy is designed to comply with Chapter 2256 of the Texas Government Code, the Public Funds Investment Act, ( the " Act"), which requires the City to adopt a written Investment Policy regarding the investment of its funds and funds under its control. This Investment Policy addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of the City' s funds. All investments shall be designed and managed in a manner responsive to the public trust and consistent with state and local law.

All participants in the City' s investment process shall seek to act responsibly as custodians of the public trust. Investment Officers shall avoid any transaction that might impair public confidence in the City' s ability to govern effectively.

DO IT IN HEWITT 302 III. SCOPE

This Policy shall govern the investment of all financial assets of the City. All funds accounted for in the City' s Comprehensive Annual Financial Report ( CAFR) are to be governed by this Policy and include: General Fund Capital Projects Funds Enterprise Funds Debt Service Funds, including reserves and sinking funds Any new fund created by the City, unless specifically exempted from this Policy by law.

This Policy shall apply to all transactions involving the financial assets and related activity for all the foregoing funds.

IV. INVESTMENT OBJECTIVES AND STRATEGIES

The City shall manage and invest its cash with five primary objectives, listed in order of priority: safety, liquidity, diversification, public trust, and yield. The safety of the principal invested will represent the primary objective.

The City shall maintain a comprehensive cash management program, which includes timely collection of account receivables, timely payments to vendors in accordance with invoice and available discount terms, and prudent investment of all assets.

Attention to cash management principles will assure that cash is available when needed and all funds will be invested to obtain the best use of City assets to obtain a reasonable market rate of earnings.

The City shall maintain a " buy and hold" portfolio strategy. Maturity dates are to be matched with cash flow requirements and investments purchased with the intent to be held until maturity. Investments shall not be sold or redeemed prior to maturity with the following exceptions:

An investment with declining credit may be sold or redeemed early to minimize loss of principal, or Liquidity needs of the portfolio require that the investment be sold or redeemed.

Safety EPFIA 2256.005(b)(2)1

Safety of principal is the foremost objective of the City' s investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital throughout the portfolio. Safety will be attained through mitigating credit and interest rate risk.

DO IT IN HEWITT 303 Credit Risk — The City will minimize credit risk, the risk of loss due to the failure of the issuer or backer of the investment, by purchasing high credit quality securities and diversifying the investment portfolio by market sector and maturity so that potential losses on individual issuers will be minimized.

Interest Rate Risk — The City will minimize the realized risk that the market value of investments in the portfolio will fall due to changes in general interest rates, by analyzing cash flow and investing within the parameters of that cash flow and diversifying by market sector and maturity.

Liquidity 1PFIA 2256.005(b)( 2)1

The investment portfolio shall remain sufficiently liquid to meet all anticipated operating requirements by structuring the portfolio maturities with cash needs to meet anticipated demands. Because all possible cash demands cannot be anticipated, a portion of the portfolio will be invested in cash equivalent alternatives such as financial institution deposits, money market mutual funds, and local government investment pools that offer same- day liquidity.

Diversification

The portfolio will be diversified by investment types and maturity to avoid market risks and issuer default.

Public Trust

All participants in the City' s investment process shall act responsibly as custodians of the public trust. Investment Officers shall avoid any transaction which might impair public confidence in the City' s ability to govern effectively.

Yield (Optimization of Interest Earnings) [PHA 2256.005(b)(3)1

The investment portfolio shall be designed with the objective of attaining a reasonable market yield at all times, taking into account the investment risk constraints and liquidity needs of the City. Return on investment is of lesser importance compared to the safety and liquidity objectives described above.

DO IT IN HEWITT 304 Investment Strategies by Fund Type:

1. General, Enterprise, or Operating-type Funds

Suitability — Any investment eligible in the Investment Policy is suitable for General, Enterprise, or Operating-type funds.

Safety of Principal —All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, managing the weighted average days to maturity of each fund' s portfolio to less than 270 days and restricting the maximum allowable maturity to two years will minimize the price volatility of the portfolio.

Marketability — Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash flow requirement. Historical market " spreads" between the bid and offer prices of a particular security-type of less than a quarter of a percentage point will define an efficient secondary market.

Liquidity — General, Enterprise, or Operating-type Funds require the greatest short- term liquidity of any of the fund-types. Demand deposit accounts, short- term investment pools and money market mutual funds will provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments.

Diversification — Investment maturities should be staggered throughout the budget cycle to provide cash flow based on the anticipated operating needs of the City. Diversifying the appropriate maturity structure up to the two-year maximum will reduce interest rate risk.

Yield - Attaining a competitive market yield for comparable security-types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury-Bill portfolio will be the minimum yield objective.

2. Capital Projects Funds

Suitability — Any investment eligible in the Investment Policy is suitable for Capital Projects Funds.

Safety of Principal —All investments will be of high quality with no perceived default risk. Market price fluctuations will occur. However, by managing Capital Projects Funds to not exceed the anticipated expenditure schedule, the market risk of the overall portfolio will be minimized. No stated final investment maturity shall exceed the shorter of the anticipated expenditure schedule or three years.

DO IT IN HEWITT 305 Marketability — Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash flow requirement. Historical market " spreads" between the bid and offer prices of a particular security-type of less than a quarter of a percentage point will define an efficient secondary market.

Liquidity — Most capital projects programs have reasonably predictable draw down schedules. Therefore, investment maturities should generally follow the anticipated cash flow requirements. Demand deposit accounts, short term investment pools and money market mutual funds will provide readily available funds generally equal to one month' s anticipated cash flow needs, or a competitive yield alternative for short-term fixed maturity investments. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any expenditure request. This investment structure is commonly referred to as a flexible repurchase agreement.

Diversification — Market conditions and arbitrage regulations influence the attractiveness of staggering the maturity of fixed rate investments for bond proceeds. Generally, if investment rates exceed the applicable cost of borrowing, the City is best served by locking in most investments. If the cost of borrowing cannot be exceeded, then current market conditions will determine the attractiveness of diversifying maturities or investing in shorter and larger amounts. At no time shall the anticipated expenditure schedule be exceeded in an attempt to bolster yield.

Yield — Achieving a positive spread to the cost of borrowing is the desired objective, within the limits of the Investment Policy' s risk constraints. The yield of an equally weighted, rolling six-month Treasury-Bill portfolio will be the minimum yield objective for non-borrowed funds.

3. Debt Service Funds

Suitability—Any investment eligible in the Investment Policy is suitable for Debt Service Funds.

Safety of Principal —All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, by managing Debt Service Funds to not exceed the debt service payment schedule the market risk of the overall portfolio will be minimized.

Marketability — Securities with active and efficient secondary markets are not necessary as the event of an unanticipated cash flow requirement is not probable.

Liquidity —Debt Service Funds have predictable payment schedules. Therefore, investment maturities should not exceed the anticipated cash flow requirements.

Demand deposit accounts, short term investments pools and money market mutual

DO IT IN HEWITT 306 funds may provide a competitive yield alternative for short-term fixed maturity investments. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any debt service payment. This investment structure is commonly referred to as a flexible repurchase agreement.

Diversification — Market conditions influence the attractiveness of fully extending maturity to the next" unfunded" payment date. Generally, if investment rates are anticipated to decrease over time, the City is best served by locking in most investments. If the interest rates are potentially rising, then investing in shorter and larger amounts may provide advantage. At no time shall the debt service schedule be exceeded in an attempt to bolster yield.

Yield — Attaining a competitive market yield for comparable security-types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three-month Treasury-Bill portfolio shall be the minimum yield objective.

4. Debt Service Reserve Funds

Suitability—Any investment eligible in the Investment Policy is suitable for Debt Service Reserve Funds. Bond resolution and loan documentation constraints and insurance company restrictions may create specific considerations in addition to the Investment Policy.

Safety of Principal —All investments shall be of high quality with no perceived default risk. Market price fluctuations will occur. However, by managing Debt Service Reserve Fund maturities to not exceed the call provisions of the borrowing will reduce the investment' s market risk if the City' s debt is redeemed and the Reserve Fund liquidated. No stated final investment maturity shall exceed the shorter of the final maturity of the borrowing or five years. Annual mark-to- market requirements or specific maturity and average life limitations within the borrowing' s documentation will influence the attractiveness of market risk and influence maturity extension.

Marketability — Securities with less active and efficient secondary markets are acceptable for Debt Service Reserve Funds.

Liquidity —Debt Service Reserve Funds have no anticipated expenditures. The Funds are deposited to provide annual debt service payment protection to the City' s debt holders. The funds are " returned" to the City at the final debt service payment. Market conditions and arbitrage regulation compliance determine the advantage of investment diversification and liquidity. Generally, if investment rates exceed the cost of borrowing, the City is best served by locking in investment maturities and reducing liquidity. If the borrowing cost cannot be exceeded, then current market conditions will determine the attractiveness of locking in maturities or investing shorter and anticipating future increased yields.

DO IT IN HEWITT 307 Diversification — Market conditions and the arbitrage regulations influence the attractiveness of staggering the maturity of fixed rate investments for Debt Service Reserve Funds. At no time shall the final debt service payment date of the bond issue be exceeded in an attempt to bolster yield.

Yield — Achieving a positive spread to the applicable borrowing cost is the desired objective. Debt Service Reserve Fund portfolio management shall operate within the limits of the Investment Policy' s risk constraints.

V. RESPONSIBILITY AND CONTROL

Delegation of Authority IPFIA 2256.005(1)1

Investment Officer(s) In accordance with the Act, the City Council designates the City Manager and the Finance Director as the City' s Investment Officers. An Investment Officer is authorized to execute investment transactions and transfer funds between City accounts on behalf of the City. No person may engage in an investment transaction or the management of City funds except as provided under the terms of this Policy. The investment authority granted to an Investment Officer is effective until rescinded by the City Council.

The City Council shall provide periodic training in investments for the Investment Officer(s) through courses and seminars offered by professional organizations, associations, and other independent sources approved by Council. Training will be in accordance with the provisions of the Act and is in order to insure the quality and capability of investment management in compliance with the Act.

Investment Officer(s) shall attend ten hours of investment training within twelve ( 12) months of attaining the position and shall receive ten hours of investment training not less than once in a two-year period that begins on the first day of the City' s fiscal year and consists of the two consecutive fiscal years after that date. The Government Finance Officers' Association of Texas

GFOAT), Government Treasurers' Organization of Texas ( GTOT), Texas Municipal League TML), University of North Texas ( UNT), Texas Association of Regional Councils, American Institute of Certified Public Accountants ( AICPA), and the Government Finance Officers Association( GFOA) are approved independent training sources.

Internal Controls

The Investment Officer is responsible for establishing and maintaining internal controls to protect the assets of the City from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that ( 1) the cost of a control should not exceed the benefits

DO IT IN HEWITT 308 likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Accordingly, within the scope of the annual audit, the City shall establish a process for annual independent review by an external auditor to assure compliance with this Policy and supporting procedures. At a minimum, the internal controls shall address the following points:

Control of collusion. Separation of transactions authority from accounting and record keeping. Custodial safekeeping. Delegation of authority to subordinate staff members. Written reporting and confirmation for all investments and wire transfers.

Prudence( PFIA 2256 006)

The standard of prudence as defined by the Act and to be applied by the Investment Officer at all times shall be the" prudent person" rule. This rule states that:

Investments shall be made with judgment and care, under circumstances then

prevailing, which persons of prudence, discretion and intelligence exercise in the management oftheir own affairs, notfor speculation, butfor investment, considering the probable safety oftheir capital as well as the probable income to be derived "

In determining whether an Investment Officer has exercised prudence in the performance of their duty, the determination shall be made taking into consideration:

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. Whether the investment decision was consistent with the written approved Investment Policy of the City.

The Investment Officer, if acting in accordance with written procedures and exercising due diligence, shall not be held personally liable for any specific investment' s credit risk or market price changes, provided that these deviations are reported immediately and the appropriate action is taken to control adverse developments.

Ethics and Conflicts of Interest EPFIA 2256.005(i0l

The Investment Officer(s), and employees involved in the investment process, shall refrain from any personal business activity that would conflict with the proper execution and management of the investment program, or that would impair their ability to make impartial decisions.

DO IT IN HEWITT 309 Investment Officer(s) shall disclose any personal or business relationship involving material interests in financial institutions with which the City conducts business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Investment Officer(s) shall refrain from undertaking personal investment transactions with the same individual or firm with which business is conducted on behalf of the City.

Any Investment Officer(s) of the City who has a personal business relationship with an organization, or is related with the second degree by affinity or consanguinity to an individual, seeking to sell an investment to the City shall file a statement disclosing that relationship, in accordance with the Act, with the Texas Ethics Commission and the City Council.

VI. SUITABLE AND AUTHORIZED INVESTMENTS

City funds may be invested only in the instruments described below, all of which are authorized and further defined by the Act. Investment of City funds in any instrument or security not authorized for investment under the Act is prohibited. The City will not be required to liquidate an investment that becomes unauthorized subsequent to its purchase.

1. Obligations of the United States of America, its agencies and instrumentalities, and exclude those prohibited by the PFIA.

2. Certificates of Deposit and other evidences of deposit at a financial institution that, i) has its main office or a branch office in Texas and is guaranteed or insured by the Federal Deposit Insurance Corporation or its successor, ii) is secured by obligations in a manner and amount provided by law for deposits of the City, or iii) is executed through a depository institution that has its main office or a branch office in Texas that participates in the Certificate of Deposit Account Registry Service ( CDARS), or similar program, and meets the requirements of the PFIA.

In addition to the above provisions, the City may invest in certificates of deposit through an Authorized Broker/Dealer that has its main office or a branch office in this State. The Broker/Dealer or the depository institution must arrange for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the City. The full amount of the principal and accrued interest of each of the certificates of deposit must be insured by the United States or an instrumentality of the United States.

The City must appoint the depository institution, or broker/dealer as custodian for the City with respect to the certificates of deposit issued for the account of the City with that entity.

3. Fully collateralized flex direct repurchase agreements executed in compliance with the Act, under the terms of an executed Master Repurchase Agreement, and secured

DO IT IN HEWITT 310 in accordance with this Policy. All repurchase agreement transactions will be on a delivery versus payment basis.

4. AAA-rated, SEC registered money market mutual funds which strive to maintain a net asset value of$ 1. 00 per share.

5. AAA-rated, Texas local government investment pools, which meet all the requirements of the Act. Participation in any pool must be authorized by resolution of the City Council.

Un-Authorized Investments IPFIA 2256.009(b)( 1- 4)1

Mortgage backed securities including interest-only or principal-only collateralized mortgage obligations ( CMO), inverse floating interest rate CMO or CMO with a maturity date of over 10 years are strictly prohibited for investment by the City.

Credit Rating and Effect of Loss of Required Rating [PFIA 2256.0211

No less than quarterly, the Investment Officer will obtain the current credit rating for each held investment from a reliable source to ensure that the investment has maintained the required minimum rating. All prudent measures will be taken to liquidate an investment that is downgraded to less than the required minimum rating.

VII. INVESTMENT PARAMETERS

Maximum Maturities and Maximum WAM IPFIA 2256.005(b)( 4)(B)1

The longer the maturity of investments, the greater the price volatility and market risk. Therefore, it is the City' s policy to concentrate its investment portfolio in shorter-term securities which match cash flow needs to limit risks caused by changes in interest rates.

The City shall attempt to match its investments with anticipated cash flow requirements. The City' s fund-type investment strategies will determine appropriate maximum maturity and weighted average maturity. Certificates of deposit and repurchase agreements may be collateralized using longer dated investments in accordance with this Policy.

Dollar-weighted average maturity will be calculated using the stated final maturity dates of each security. [ PFIA 2256.005( b)( 4)( C)]

DO IT IN HEWITT 311 VIII. AUTHORIZED BANKS AND DEALERS

The process of obtaining and contracting with a primary depository to serve the banking service needs of the City will be governed by Chapter 105 of the Local Government Code: Depositories for Government Funds and Chapter 2257, the Public Funds Collateral Act, Texas Government Code.

At least every five ( 5) years a primary depository shall be selected for banking services through the City' s procurement process, which shall include a formal request for application (RFA). The selection of a depository will be determined through a competitive process and evaluation of applications will include the following selection criteria:

The ability to qualify as a depository for public funds in accordance with State law. The ability to provide required banking services. Creditworthiness and financial stability of the depository. The ability to provide cost effective services as defined by the City based on the lowest net banking service cost, consistent with the ability to provide the required levels of service.

The City may utilize other financial institutions as depositories for deposits and the purchase of certificates of deposit under the terms of a written depository/collateral agreement as defined by this Policy.

Collateral Policy( PFCA 2257.023)

Collateral Pledged to the City by Depositories Consistent with the requirements of the Public Funds Collateral Act, it is the policy of the City to require full collateralization of all financial institution deposits in a depository above the FDIC insurance coverage. In order to anticipate and provide for market price fluctuations-and provide a required level of security for all funds, with the exception of deposits secured with irrevocable letters of credit from a U.S. Government Agency at 100% of principal and accrued interest, the depository will provide and maintain collateral equal to 102% of the total value of principal and accrued interest on City deposits less an amount insured by the FDIC.

Any financial institution designated as a depository by the City will provide collateral in accordance with this Policy and applicable State law. The City reserves the right, in its sole discretion, to accept or reject any form of insurance or collateralization pledged towards depository deposits. Financial institutions serving as a depository will be required to sign a Depository/Collateral Agreement with the City. The collateralized deposit portion of the Agreement shall define the City' s rights to the collateral in case of default, bankruptcy, or closing and shall establish a perfected security interest in compliance with Federal and State regulations, including:

The agreement must be in writing;

DO IT IN HEWITT 312 The agreement has to be executed by the Depository and the City contemporaneously with the acquisition of the asset; The agreement must be approved by the Board of Directors or designated committee of the Depository and a copy of the meeting minutes must be delivered to the City; and The agreement must be part of the Depository' s " official record" continuously since its execution.

The written agreement will specify the acceptable collateral, require independent safekeeping of the collateral, require City approval before substitution or release of investment securities, provide for original safekeeping receipts, and complete monthly reporting of collateral including the valuation of securities.

A clearly marked evidence of pledge must be supplied to the City and retained by the Investment Officer. A monthly collateral report provided by the custodian shall be reviewed by the Investment Officer to assure that the market value of the pledged securities is adequate.

Collateral may be held only by an independent institution including a Federal Reserve Bank, a Federal Home Loan Bank, or a third party bank approved by the City.

A Repurchase Agreement, as authorized by the Act, has a defined termination date, is secured by a combination of cash and obligations as described by Section 2256.009(a)( 1) and requires the securities being purchased by the City or cash held by the City to be pledged to the City, held in the City' s account, and deposited at the time the investment is made with the City or with a third party selected and approved by the City. Securities (termed as collateral) are bought (i.e. owned) under a Repurchase Agreement and will be maintained at a margin of 102% and delivered versus payment. The collateral terms and conditions will be controlled by a written repurchase agreement.

Authorized Collateral For Depositories and Repurchase Agreements

The City shall accept only the following types of collateral:

Obligations of the United States or its agencies and instrumentalities, including mortgage backed securities which pass the high-risk mortgage obligation test, and irrevocable letters of

credit.

Direct obligations of any U.S. state or its subdivisions rated at least A by at least one nationally recognized rating agency.

All collateral shall be subject to inspection and audit by the Investment Officer(s) and the City' s independent auditors.

DO IT IN HEWITT 313 Authorized Brokers/Dealers (PFIA 2256.025)

The City Council shall, at least annually, review, revise, and adopt a list of qualified broker/dealers ( see Attachment A) authorized to engage in securities transactions with the City. To purchase securities, the City must have a list of no less than two broker/dealers.

Authorized brokerage firms may include primary dealers or regional broker/dealers that qualify under Securities& Exchange Commission Rule 15C3- 1 ( Uniform Net Capital Rule).

Delivery vs. Payment (PFIA 2256.005(b)(4)(E)1

Securities purchased by the City shall be settled into the City' s depository on a delivery versus payment ( DVP) basis. DVP assures that City funds will not be released until the purchased security has been received. Securities will be held by an independent third-party safekeeping agent as evidenced by safekeeping receipts.

PFIA Policy Certificates

All investment providers, including financial institutions, banks, broker/dealers, and local government investment pools, will be required to provide information regarding the firm and the individual representative as required by the City. Each investment provider will be required to sign a certification acknowledging that the organization has received and reviewed the City' s current Investment Policy and that reasonable procedures and controls have been implemented to preclude investment transactions that are not authorized by the City' s Policy. When material changes are made to the Policy, re- certification is required.

IX. PERFORMANCE BENCHMARK

The City' s investment portfolio will be managed in accordance with the parameters specified within this Policy including the objective of a reasonable market yield commensurate with the investment risk constraints and the cash flow requirements of the City.

The weighted average yield to maturity ( the standard for calculating portfolio rate of return) on the total portfolio will be calculated and reviewed on at least a quarterly basis. In accordance with the City' s cash flow needs and based on the maximum weighted average maturity of the adopted Investment Strategy, the City' s portfolio shall be designed with the objective of regularly meeting or exceeding the respective Strategy' s average yield on the appropriate US Treasury-Bill for the same period. This benchmark is not just a measure of market performance but equally a measure of the risk in the portfolio.

DO IT IN HEWITT 314 XI. REPORTING (PFIA 2256.023)

The Investment Officers shall prepare for the City Council an investment report on a quarterly basis that summarizes investment strategies employed in the most recent quarter and describes the portfolio in detail and summary information. This reporting shall be made in accordance with the Act.

The quarterly investment report shall include a summary statement of investment activity during the period. This summary will be prepared in a manner that will allow the City Council to ascertain whether investment activities during the reporting period have conformed to the Investment Policy. The report will include the following at a minimum:

A listing of individual investments held at the end of the reporting period. Unrealized gains or losses at the end of the period (the difference between market and book value). Average weighted yield to maturity of portfolio. Fully accrued interest for the reporting period and total earnings for the period The percentage of the total portfolio by type of investment. Statement of compliance of the City' s investment portfolio with State law and the investment strategy and Policy approved by the City Council.

Market values will be obtained from reputable and independent sources.

In conjunction with the annual audit, an independent auditor will perform a formal annual review of the quarterly reports with the results reported to the City Council by that auditor [ PFIA 2256.023( d)].

XII. INVESTMENT POLICY ADOPTION [PFIA 2256.005(e)]

The City' s Investment Policy shall be reviewed and adopted at least annually by resolution of the City Council. It is the City' s intent to comply with State laws and regulations. The City' s Investment Policy may be revised by Council consistent with changing laws, regulations, or the needs of the City. The City Council shall review and approve the Policy and investment strategies annually, approving any changes or modifications, at a legally scheduled meeting.

DO IT IN HEWITT 315 Adopted by Hewitt City Council:

0 13 Ali. 72_ Passalugo, Mayor Ili Date

t 001,3 1 1 Date Ly opez, City Secr ary

DO IT IN HEWITT 316 Attachment A

City of Hewitt, Texas Authorized Broker/Dealer List

Coastal Securities Tony Sekaly 5555 San Felipe St., Ste. 2200 Houston, TX 77056-2725 800- 681- 4121

Duncan Williams, Inc. Stephen Capoferi 11458 W. Travelers Way Circle Houston, TX 77065- 4982 866- 394- 0236

Rice Financial Products Co. Carol Mackoff 208 S LaSalle St., Ste 1338 Chicago, IL 60604- 1319 877- 855- 2739

Raymond James & Associates, Inc. Polly Moore 2801 Via Fortuna, Ste. 650 Austin, TX 78746- 7907 512- 306- 2503

Wells Fargo Brokerage Services, L.L.C. Chuck Landry 1445 Ross Avenue Suite 210 Dallas, TX 75202 800- 937-0998 214- 777- 4018

DO IT IN HEWITT 317