ANNUAL BUDGET 2014-2015 MIDLAND, TEXAS CITY OF MIDLAND, TEXAS This page intentionally left blank CITY OF MIDLAND, TEXAS ANNUAL OPERATING ADOPTED BUDGET FOR FISCAL YEAR 2014‐2015 This budget will raise more revenue from property taxes than last year’s budget by an amount of $2,501,070, which is 6.66% increase in tax dollars from last year’s budget. This is an 8.8% tax rate decrease from FY 2014 rate. The property tax revenue to be raised from new property added to the tax roll this year is $1,374,938. The members of the governing body voted on the tax levy for the budget as follows: AYE: Hotchkiss, Love, Sparks, Morales, Lacy, Robnett NAY: None ABSENT: Dufford Tax Rate Adopted FY 2014‐15 Adopted 2013‐14 Property Tax Rate .393891 .431927 Effective Rate .382418 .420227 Effective M&O Tax Rate .340870 .367607 Rollback Tax Rate .424550 .443225 Interest & Sinking (Debt Service) .056411 .046208 Total principal debt obligation for City of Midland is $137,870,000. However $82,174,933 is self supporting leaving $55,695,067 supported by property taxes. CITY OF MIDLAND, TEXAS THE CITY OF MIDLAND, TEXAS ANNUAL BUDGET Fiscal Year October 1, 2014 through September 30, 2015 Mayor Jerry F. Morales Council Members W. Jeffrey Sparks District 1 John Love III Mayor Pro Tempore District 2 Sharla Hotchkiss District 3 J. Ross Lacy District 4 A. Scott Dufford At-Large Spencer Robnett At-Large Courtney B. Sharp, City Manager CITIZENS OF MIDLAND BOARDS & COMMISSIONS CITY COUNCIL CITY SECRETARY CITY ATTORNEY Presiding Judge Judge Sharon Hatten Amy Turner Keith Stretcher CITY MANAGER Robin Smith Courtney Sharp MUNICIPAL COURT INTERNAL Public Information AUDITOR Officer Debbie Gotovac Sara Higgins DEPUTY CITY MANAGER ASSISTANT CITY MANAGER ASSISTANT CITY MANAGER Tommy Hudson Frank Salvato Robert Patrick Internal Services POLICE FIRE Infrastructure and Development Services Citizen Services Price Robinson Robert Isbell ADMINISTRATIVE ENGINEERING SERVICES DEVELOPMENT SERVICES UTILITIES COMMUNITY SERVICES Support Services Administration Jose Ortiz Tina Jauz GENERAL SERVICES SERVICES Chip Balzer Charles Harrington Laura Wilson Catherine Clifton Investigative Risk Reduction Parks & City Engineer Code Administration Environmental Services Michael Cota Recreation Human Resources Matt Carr Steve Thorpe Compliance Division Purchasing Jeff Darr Laurie Williams Regina Stephenson Joanna Lowder Support Operations Golf Course Employee Health & Services Transportation Fritz Niggeler Planning Water Purification Plant Maintenance Wellness Seth Herman Michael Pacelli Fleet Raymond Saddler David Byrd Michelle Vasquez Community Field Operations GIS Safety & Risk Development Pro Shop Jerry Compton Bill Hodge Paul Davis Well Field Warehouse Management Sylvester Cantu Raymond Saddler Greg Sykes Art Delgado Jamee Higgins Downtown Airport Well Field and Animal Services AIRPORTS Development Facilities Services COMMUNICATION & Genora Young Towers Paul O’Neill Mark Garcia Marv Esterly Raymond Saddler INFORMATION SERVICES Health & Senior Sharlett Chowning Spraberry Effluent Farm Services Acquisitions and International Cory Moose Sal Garcia Special Projects Information Systems Airport Scarborough/ Jennifer Frescaz Water Pollution Control Linebery House Plant Industrial Park Frances Stapp FINANCE Communications Cory Moose Eva Luna Pam Simecka Water & Wastewater SOLID WASTE Airpark Maintenance MANAGEMENT Communications Accounting Leroy Montez Morris Williams Charlene Fox Maintenance Solid Waste Customer Service Jeffrey Ahrlett Tony Goyang Meter Shop Landfill German Aguirre Investments Recycle ORGANIZATION CHART September 2014 The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Midland, Texas 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 program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. TABLE OF CONTENTS SECTION I - INTRODUCTION Page Budget Message .............................................................................................................. 1 Vision Statement .......................................................................................................... 10 Departments by Function and Funding Source ............................................................ 11 Comparison of Sources and Uses by Fiscal Year ........................................................ 13 Summary of Revenues, Appropriations/Expenses and Changes In Fund Balances/Equity ........................................................................ 15 Summary of Funds Available for Appropriation ............................................................ 16 Revenues - Major Sources and Trends ........................................................................ 17 Significant Changes in Revenues, Expenditures/Expenses and Changes in Fund Balances/Equity ................................................................. 22 Comparative Revenues and Expenditures ................................................................... 24 Combined Fund Revenues - Graph .............................................................................. 25 Combined Fund Expenditures/Expenses - Graph ........................................................ 25 Estimated Income from Taxes ...................................................................................... 26 Assessed Property Tax Valuations - Graph .................................................................. 27 Overlapping Property Tax Rates - Graph ..................................................................... 28 Summary of Personnel by Department and Unit .......................................................... 29 Summary of Personnel by Fund ................................................................................... 31 Employees per 1,000 Population - Graph .................................................................... 32 Quick Facts ……………………………………………………………………………………. 33 Major Employers in the City of Midland ......................................................................... 34 Top Ten Tax payers ..................................................................................................... 34 Ten Largest Water and Waste Water Customers ......................................................... 35 Population Data ............................................................................................................ 35 Miscellaneous Statistical Data ...................................................................................... 36 SECTION II - PROCEDURE AND POLICY Index of Procedures and Policies ................................................................................. 39 The Budgeting Process ................................................................................................ 40 Budget Calendar ........................................................................................................... 43 The Budget and the Capital Improvement Program ..................................................... 44 Capital Improvement Program Policy ........................................................................... 46 Capital Improvement Program and Debt Limits ............................................................ 48 Financial Policies .......................................................................................................... 49 Fund Structure .............................................................................................................. 50 Basis of Budgeting ........................................................................................................ 52 Accounting Policies ...................................................................................................... 53 Investment Policy ......................................................................................................... 62 Cash Handling Policy ................................................................................................... 68 Purchasing Policy ......................................................................................................... 76 TABLE OF CONTENTS SECTION III - GENERAL FUND Page Revenue and Expenditures - Graphs ........................................................................... 98 Revenue and Receipts ................................................................................................. 99 Summary of Expenditures by Unit .............................................................................. 104 Summary of Expenditures by Classification ............................................................... 105 Legislative ................................................................................................................... 106 City Manager's Office ................................................................................................. 109 Administration - Public Communications .................................................................... 112 Administration - Downtown Development ................................................................... 115 Municipal Court ..........................................................................................................