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