CITY OF KILGORE Budget FY 2020-2021 KILGORE CITY of STARS | Mission, Vision, & Values | Council Members | ANNUAL OPERATING BUDGET FOR FISCAL YEAR 2020‐2021 City Council Record Vote The members of the governing body voted on the adoption of the budget as follows: FOR: Mayor R. E. Spradlin, Mayor Pro-Tem Harvey McClendon III, Merlyn Holmes, Mike Sechrist, Victor A. Boyd AGAINST: None PRESENT and not voting: None ABSENT: None Tax Rates Proposed FY 2020-21 Adopted FY 2019-20 Property Tax Rate/$100 0.539000 0.539000 No New Revenue Tax rate/$100 0.590572 0.534730 Effective M&O Tax Rate/$100 0.509118 0.509118 Voter Approval Tax Rate/$100 0.608301 0.543826 Debt Rate/$100 0.029882 0.029882 The total amount of municipal debt obligation secured by property taxes for the City of Kilgore is $3,425,000. Officers and Officials Elected R.E. Spradlin, III- Mayor Merlyn Holmes- Council Member, Place 1 Harvey McClendon- Mayor Pro-Team; Council Member, Place 2 Mike Sechrist- Council Member, Place 3 Victor Boyd- Council Member, Place 4 Appointed Joshua C. Selleck - City Manager Robert G. Schleier, Jr. - City Attorney Glenn D. Phillips - Municipal Court Judge MISSION The City organization is dedicated to providing an efficient, effective and responsive government for the citizens of Kilgore consistent with our city’s history, culture and unique character. We recognize our citizens as our greatest assets, and we will serve as role models by anticipating and providing for the needs of the community through quality service, innovation and leadership for today and in the future. VISION Kilgore strives to be a safe, clean, well‐maintained and affordable City. We value strong moral character, solid family values, and our rich history and culture. We embrace innovation, well‐ planned growth, and a strong business‐friendly environment in which opportunities abound for employment, education, culture, entertainment, tourism, and recreational enjoyment. VALUES |Accountable | |Fiscally Responsible| | Friendly| | Trustworthy | |Communicative| |Proactive| |Innovative| |Visionary| |Family Oriented| COUNCIL MEMBERS MAYOR COUNCIL MEMBER, PLACE 1 MAYOR PRO TEAM, PLACE 2 R.E. Spradlin, III Merlyn Holmes Harvey McClendon COUNCIL MEMBER, PLACE 3 COUNCIL MEMBER, PLACE 4 Mike Sechrist Victor Boyd Josh Selleck City Manager Landon Ward Finance Director Clayton Evers Public Works Director TABLE OF CONTENTS 1. Community Profile pg.10 2. Budget Message pg.22 . Budget Process pg.26 . Budget Calendar pg.28 3. Personnel pg.30 4. Management & Budget Policies pg.40 . Investment Policy & Strategies pg.55 . Capitalization Policy pg.63 5. Budget Summary All Funds pg.69 . Operating Budget pg.70 . General Fund pg.78 . Capital General Projects Fund pg.111 . Water Utilities Fund pg.114 . Water Utilities Project Fund pg.129 . Golf Fund pg.131 . Debt Service pg.141 . Other Government Funds pg.156 6. Kilgore Economic Development Corporation (KEDC) pg.174 7. Adopting Documents pg.179 8. Glossary pg.186 KILGORE The City of Stars This page is left blank intentionally. COMMUNITY PROFILE City of Kilgore, TX COMMUNITY PROFILE The City of Kilgore is a "council-manager military law and presides over the meetings form of city government.” Pursuant to its of the city council and performs other duties provisions and subject only to the limitations consistent with the office as may be imposed imposed by the constitution and general laws upon him by the City Charter, ordinances, and of the State of Texas and by the charter, all resolutions passed by the City Council. He powers of the city are vested in the elective may participate in the discussion of all city council. The City Council which is made matters coming before the council and shall up of a mayor and four council members be entitled to a vote as a member thereof. enacts local legislation, adopts budgets, determines policies, and appoints the city The City Manager serves as chief manager who shall execute the laws and administrative and executive officer of the administer the government of the city. All City and assures that all laws and city powers of the city are exercised in the ordinances are enforced; and does related manner prescribed by the charter, or if the work as required. The City Manager appoints manner is not prescribed, then in a manner as and removes all heads of departments and all prescribed by an ordinance adopted by the subordinate officers and employees of the City Council. The City operates as a home-rule City, except as otherwise provided in the City city under the laws of the State of Texas and a Charter. The City Manager exercises control Charter approved by its voters in 1960 that over all departments and subdivisions was last amended in 2014. thereof create by the City Charter and City Council. The City Manager attends all The City operates under a Council Manager meetings of the City Council, taking part in form of government where the governing discussions and recommending Council body consists of the Mayor and four City action as appropriate and keeps the Council Council Members elected for staggered two- fully advised as to the financial condition and year terms. The City operates City Council needs of the City. The City Manager assures formulates operating policy for the City while the annual budget is prepared and submitted the City Manager is the chief administrative to the City Council and assures the City officer. operates within its budget. The City Manager executes deeds and contracts on behalf of the The Mayor of the City of Kilgore is City when authorized by ordinance, recognized as head of the city government for resolution or motion of the City Council. The all ceremonial purposes and by the governor City Manager also represents the City in of the State of Texas for the purposes of professional and civic organizations. City of Kilgore, TX HISTORY Kilgore was founded in 1872, when transformed Kilgore from a declining the International - Great Northern rural community into a boomtown. Railroad chose to bypass New Danville, and instead form a new Kilgore, located near the geographic town on land purchased from center of the oilfield, became an Constantine “Buck” Kilgore. important production, processing, service, and supply hub. By 1936 the Kilgore city was named after town's population had swelled to Constantine Buckley Kilgore, who sold 12,000. 174-acre town site to the railroad. Today Kilgore is a major industrial Early Kilgore depended on the hub in East Texas. The oil industry railroad and cotton industries. still plays a major role in the local Everything changed when oil was economy, and economic development discovered in East Texas in 1930. and diversification efforts by the Overnight Kilgore was transformed Kilgore Economic Development into an oil boomtown with a Corporation continue to strength-en population over 12,000. Kilgore’s local economy. The discovery of the surrounding East Texas oilfield in the fall of 1930 City of Kilgore, TX LOCATION The City of Kilgore is a political subdivision and 66 miles west of Shreveport, LA on the I- and municipal corporation of the State, 20 corridor. The City currently covers located in Gregg and Rusk Counties of East approximately 18.58 square miles. Texas. Kilgore is 120 miles east of Dallas, TX Location of Major Cities in relation to Kilgore, Texas Mileage from Major Cities Dallas 120 Shreveport 55 Houston 199 Austin 276 New Orleans 404 Tulsa 292 Nashville 626 Source: http://www.kilgore‐edc.com/community‐profile/location‐major‐cities City of Kilgore, TX POPULATION 16,000 14,000 12,000 10,000 Population 8,000 6,000 4,000 2,000 0 2000 2002 2004 2006 2008 2010 2018 Source: United States Census Bureau In accordance with the U.S. Census, as of July illustrates the change in population from 1st, 2018; Kilgore is home to an estimated 2000-2010 based off of the 2010 U.S. Census 14,862 individuals. This represents a 10.5% and also provides an unofficial projected population increase from 2010 when the population for 2018 based upon recent population was 13,453. The graph above development within Kilgore. City of Kilgore, TX ECONOMY The 2010 U.S. census illustrates those threshold was defined as earning $22,208 or residences living in the City of Kilgore 15.3% less per year. Kilgore’s median household of them are living in poverty (approximately income from 2014-2018 was $54,436 2,286 individuals). Kilgore’s average family compared to the state’s median household size for 2014-2018 was 2.71 persons per income of $59,570. household; based off this average the poverty Economy In civilian labor force, total, percent of population 50.8% age 16 years+, 2014-2018 In civilian labor force, female, percent of 55.8% population age 16 years+, 2014-2018 Total accommodation and food services sales, 33,364 2012 ($1,000) Total health care and social assistance 48,550 receipts/revenue, 2012 ($1,000) Total manufacturers’ shipments, 2012 ($1,000) 465,968 Total merchant wholesaler sales, 2012 ($1,000) 950,555 Total retail sales, 2012 ($1,000) 351,797 Total retail sales per capita, 2012 $25,608 Source: https://www.census.gov/quickfacts/fact/table/kilgorecitytexas/RTN130212#qf‐headnote‐c City of Kilgore, TX 2020‐2021 MAJOR EMPLOYERS IN KILGORE, TEXAS Company Name Category Employment Kilgore Independent School Primary & Secondary Public Education 600 District General Dynamics SATCOM Satellite and Communications 550 Technologies Kilgore College Higher Education Institute 320 Region VII Education Service Regional Public Education Service Provider 290 Center Martin Midstream Partners, Mkt. & Transporting of Petroleum/Chemicals 241 LP Corp. Headquarters Closure Systems Plastic Closures 227 International, Inc. Cudd Pressure Control Oilfield Services 225 Exterran Compression Services 197 Orgill, Inc.