Presentation - 2018 Proposed Budget - City of Arlington, TX

CITY OF ARLINGTON 2018 PROPOSED BUDGET

City of Arlington FY 2018 Proposed budget

OVERVIEW • • • • •

City Value Proposition FY 2018 Proposed Budget FY 2018 Priorities and Core Services August 15th Meeting Budget Calendar


BUDGET DEVELOPMENT PROCESS • Comprehensive Financial Forecast • Department reviews with CMO • All items considered included in Budget Document (Other Budget Information) • Reconciliation of Positions (adds, deletes, reorganizations)


FY 2018 BUDGET • Balanced and in accordance with City’s Financial Principles • Advance Priorities while maintaining Core Services • Addresses employee compensation (second year of three-year plan) • Targeted investments in new technology & public safety • Addresses Civil Service • Tax rate of $0.6398, a half-cent reduction in the tax rate City of Arlington FY 2018 Proposed budget

BEST PRACTICES


CITY CONTRIBUTIONS TO THE STATE • Sales Tax Service Fee - $2.05M • Court Fines - $4.7M • Payments to Other Agencies - $483k

Total = $7.2M


FAVORABLE TAX POLICY Mandated Veteran Exemptions

Local Option Exemptions RESIDENTIAL Minimums and Maximums Authorized Arlington

General Homestead

Over 65

Up to 20% of appraised At least $3,000; no value, must be worth at max established least $5,000 20%

$60,000

Disabled Person

Tax Ceiling for Over 65

At least $3,000; no max established

Local Officials Authorized or Not Authorized

5,000

$60,000

Authorized

5,000

Authorized Business Exemptions COMMERCIAL

Freeport

Abatements

Minimums and Maximums Authorized



Arlington

Authorized

Authorized


Vet1

Vet2

Vet3

Vet4

7,500

10,000

12,000

7,500

10,000

12,000

CITY COMPARISONS WORKI NG TOGETHER TO MAKE A RLINGTON BETTER


OTHER CITY COMPARISONS FY 2017 Employees per 10,000 Citizens

FY 2017 Assessed Value per Capita (in $1,000's) Southlake

$230

$138

Austin

Austin

151.0

Southlake

126.9

Plano

$125

Dallas

Richardson

$124

Corpus Christi

99.6

Richardson

97.7

Irving

$99

Carrollton

$95

Dallas

122.3

El Paso

$85

89.9

Plano

82.9 81.4

Mansfield

$75

Irving

Corpus Christi

$74

Fort Worth

79.2

$67

Mansfield

79.1

$66

Mesquite

76.3

Grand Prairie San Antonio

$60

Fort Worth Arlington

San Antonio

$56

El Paso

$49

Mesquite

$46 $-

$50

73.9

Grand Prairie Average: $93 $100

$150

$200

$250

71.3

Arlington

66.9

Carrollton

64.5 -


20

40

60

80

Average: 90.9 100

120

140

160

OTHER CITY COMPARISONS FY 2017 Tax Levy Per Capita

FY 2017 General Fund Expenditures per Capita

Southlake

Southlake

$1,301

Richardson

$1,171

Plano

$1,076 $1,062

Austin

$965

Irving Dallas

$946

Mesquite

$768

Fort Worth

$767

San Antonio

$762

Mansfield

$759

Carrollton

$748

Corpus Christi

$716

Grand Prairie

$613

El Paso

$561 $-

$200

$400

$600

$800

Richardson

$775

Dallas

$664

Austin

$608

Plano

$598

Irving

$591

Carrollton

$572

Mansfield

$535

Fort Worth

$685

Arlington

$1,063

$498

Corpus Christi

$447

Grand Prairie

$447

El Paso

$373

San Antonio

$369

Arlington Average: $860 $1,000 $1,200 $1,400

$360

Mesquite

Average: $548

$314 $0


$200

$400

$600

$800

$1,000

$1,200

OTHER CITY COMPARISONS


OTHER CITY COMPARISONS, SWORN STAFF PER 10,000 POPULATION


OTHER CITY COMPARISONS, SWORN STAFF PER 10,000 POPULATION


OTHER CITY COMPARISONS, STAFF PER 10,000 POPULATION






BUDGET AND SERVICE HIGHLIGHTS WORKI NG TOGETHER TO MAKE A RLINGTON BETTER


RESULTS • Average number of days from initial code complaint to first action: 2.07 in FY 2016, 1 estimated for FY 2017 • Hangar Occupancy Rate: 80% in FY 2016, 95% estimated for FY 2017 • Capital Investment generated through OED efforts: $32M in FY 2016, $200M estimated in FY 2017 • APD YouTube Channel Views: 2.2M in FY 2016, 4.5M estimated for FY 2017 • Employee Turnover (Non-sworn): 9.2% in FY 2016, 8.6% estimate for FY 2017 • Debt Ratios Below Target City of Arlington FY 2018 Proposed budget

BUDGET BALANCING STRATEGIES • Cost Containment • • • • • •

Electricity Costs ($1.2M) Workers’ Compensation ($700,000) Debt Service Refinancing ($1.5M) Infrastructure debt issuance Volunteer program 133,000 Hours Grants ($12.6M)


INFRASTRUCTURE MAINTENANCE DEBT ISSUANCE • IT Infrastructure ($1,975,000) • Building Maintenance ($2.4) Total: $4.4M

FY 2018 BUDGET WORKI NG TOGETHER TO MAKE A RLINGTON BETTER


ALL FUNDS - OPERATING POSITIONS

CITY REVENUES BY FUND

CITY EXPENDITURES BY FUND

SUMMARY OF EXPENDITURE CHANGES

GENERAL FUND BUDGET BY DEPARTMENT

GENERAL FUND EXPENDITURES

GENERAL FUND POSITIONS

GENERAL FUND REVENUE CHANGES • Ad Valorem revenue increase of 7.6% • Reduction in rate • TIRZ 4 early termination • Increase in General Fund revenue of $6.9M in FY 2018 budget • Anticipates September bill valuation change and ongoing impact of tax litigation settlements • Sales Tax Revenue • FY 2018 General Fund sales tax revenue is projected to be $62.8M, which is $2.4M above the FY 2017 budget • 4% growth • Other Revenues • Municipal Court down $1.3M • Franchise Fees down $1.8M • Permits, plan & plat review fees up $1.7M • Interest income growth of $452k

GENERAL FUND REVENUES

PROPERTY TAX BASE

SALES TAX REVENUE TRENDS

Through May, sales tax revenue in the General Fund is $100,166 under the weighted monthly budget amount for the year to date.

Receipts are up from the prior year in 10 of the last 12 months. Through May, receipts are 3.8% above what the City received last year.

Municipal Court Revenues and Citations FY 2006 - FY 2018 Budget / Estimates 180,000

160,000

140,000

120,000

100,000

80,000

60,000 FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

Revenues, in $ hundreds

FY 2012

FY 2013

FY 2014

Citations

FY 2015

FY 2016

FY 2017 Estim.

FY 2018 Estim.

1. The FY 2018 proposed revenue budget for the Court is $10.68 million, which is $3.4 million (24.0%) lower than the high point of $14.0 million in 2011. 2. If citations decline in 2018 by the same percentage as in 2017, the estimate for 2018 is 84,482 citations, which is 71,002 (45.7%) fewer citations than the 155,484 citations filed in 2009.

PROPERTY TAX RATES

COMPENSATION & BENEFITS WORKI NG TOGETHER TO MAKE A RLINGTON BETTER


COMPENSATION PLAN YEAR 2 Job Family

Year 2 Increase

Engineering

9.5%

104,508

Information Technology

8.6%

343,969

Admin/Clerical

7.9%

465,823

Management Professional

7.2%

1,509,179

Technical/Craft

5.8%

642,239

Crime Scene

5.8%

31,153

Job Family

Year 2 Increase

Police Officer

4.6%

1,310,282

Police Sgt

5.7%

348,018

Police LT

5.0%

91,948

Firefighter

5.3%

414,956

Fire LT

5.1%

188,791

Fire Captain

4.3%

60,361

Deputy Chief/Battalion Chief

4.3%

11,103

Apparatus Operator

5.3%

229,589

Fire Prevention

5.3%

39,658 $5,791,577

Total

General Fund Cost

General Fund Cost

Proposed compensation increase for all funds = $6.8M

2018 Employee Rate Projections (+2.7%) HDHP High Deductible Health Plan 2017 Rate

2018 Rate

2018 $ Difference Pay Period (Annual)

Employee Only

$12.81

$13.16

$0.35 ($9.10)

Employee + Spouse

$54.18

$55.64

$1.46 ($37.96)

Employee + Child(ren)

$21.35

$21.93

$0.58 ($15.08)

Employee + Family

$76.10

$78.16

$2.06 ($53.56)

EPO (Exclusive Provider Organization) 2017 Rate

2018 Rate

2018 $ Difference Pay Period (Annual)

Employee Only

$28.50

$29.27

$0.77 ($20.02)

Employee + Spouse

$120.57

$123.83

$3.26 ($84.76)

Employee + Child(ren)

$71.28

$73.21

$1.93 ($50.18)

Employee + Family

$169.31

$173.88

$4.57 ($118.82)

TMRS • Funded full $247,298 increase, not phased in • Rate increase from 15.73% to 15.94% • Amortization Period from 20.4 years to 19.6 years • Increased funded ratio 86.5% to 86.6%

TMRS CONTRIBUTION RATES

TMRS NET PENSION LIABILITY

OPEB

COUNCIL PRIORITIES WORKI NG TOGETHER TO MAKE A RLINGTON BETTER


RECURRING FUNDING SUMMARY GENERAL FUND Category

Amount

Mandates & Contractual Increases

$493K

Compensation & Benefits

$6.4M

Public Safety

$961K

Priorities & Needs

$596K

IT Projects

$400K

Total

$10.44M

• 55 deferred requests, $10.9M, 32 positions

COUNCIL PRIORITIES – HIGHLIGHTS Champion Great Neighborhoods • Neighborhood Matching Grant Program ($142,000) • Entertainment District Maintenance ($32,000) • Arts Funding ($100,000) • Johnson Cemetery ($30,000)

COUNCIL PRIORITIES – HIGHLIGHTS Enhance Regional Mobility • Transportation Services ($131,500) • Milo Pilot Project ($72,700) • Signal Performance Evaluation System ($59,000)

COUNCIL PRIORITIES – HIGHLIGHTS Invest in Our Economy • Hotel & Convention Center Expansion Feasibility Study ($125,000) • Downtown Master Plan ($200,000) • Continue Gateway Sign Projects ($400,000) • Park & Ride Canopy/Signage ($200,000) • Development Process Improvements ($176,500) • Convention and Event Services Investments ($932,600)

COUNCIL PRIORITIES – HIGHLIGHTS Put Technology to Work • Software Maintenance ($143,000) • Department Technology Projects ($1.4M) • • • • • •

Police Mobile Data Computers CAD Upgrade GIS Maintenance Tools Update Fire EOC Video System Upgrade City Website Rebuild Electronic Plan Review

• Radio and CAD Maintenance Increase ($85,500)

COUNCIL PRIORITIES – HIGHLIGHTS Support Quality Education • AISD School Resource Officer ($109,500) • Downtown Library Opening ($150,000) • City Employee Education Assistance ($50,000)

CORE SERVICES – HIGHLIGHTS Public Safety • Defensive Tactics Coordinator ($110,000) • Jail Staffing (5 positions, $271,000) • Citation Device Maintenance ($81,000) • Increased Staffing for Stations 1&9 (position trade, $55,500)

CORE SERVICES – HIGHLIGHTS Public Safety • 2017 COPS Hiring Grant Cash Match ($465,600) • Fire Heavy Fleet Replacement ($1.3M) • Police Cost of Service Increases ($426,455) • City Hall & Library Security ($150,000)

CORE SERVICES – HIGHLIGHTS Culture / Recreation / Education • New Parks Development O&M Funding ($86,000) • Reopen Ditto Golf Couse ($550,000)

CORE SERVICES – HIGHLIGHTS Financial / Economic Development • Compensation Study Year 3 of 3 ($46,200) • HRIS Specialist ($101,000) • ED Financial Consultant ($10,000) • Employee Wellness Clinic ($1M)

CORE SERVICES – HIGHLIGHTS Infrastructure • Out of Life Fleet Replacements ($885,000) • Landfill Professional Services ($25,000) • Fleet Shop Site Assessment ($50,000)

OTHER FUNDS WORKI NG TOGETHER TO MAKE A RLINGTON BETTER


CONVENTION & EVENT SERVICES PROGRAM CHANGES • Revenues are $709k higher than FY17 • Hotel Occupancy Tax up $579K • Convention Center Revenues up $130K • FY 2018 Expenditures • Recurring New Expenses $150K and include • Funding for ACVB $50K • Funding for Cultural Tourism Council $50K • Funding Arts Grants $50k

• One-time Expenses $1.1M and include • Chiller & Pump Replacement $800,00 (Building Maintenance Reserve) • Kitchen & Warehouse Equipment $102,000 • Parking Lot Improvements $30,600 • Hotel & Convention Center Expansion Feasibility $125K

PARK PERFORMANCE FUND PROGRAM CHANGES • Revenues are $1.8M higher than FY 2017 • Golf revenue is up $1.8M due to Ditto re-opening • Recreation and Field revenues are essentially unchanged from FY 2017 • FY 2018 expenditures are $814k higher than FY 2017 • Golf expenditures are up $934k • Recreation expenditures are down $129k • Field expenditures are up $9k

COMMUNICATION SERVICES PROGRAM CHANGES • FY 2018 Revenues and Expenditures • $1.65M of expenditures for CAD and radio maintenance moved to CES Fund, non HOT Revenues • Revenues from chargebacks reduced by $1.1M • Expenditures reduced by $736k from FY 2017 level • CAD 9.5 Upgrade funded for $495k, paid from beginning fund balance

IT SUPPORT FUND PROGRAM CHANGES • One-time project expenses $305,521 • City Website Rebuild $150,000 • Supplementary Resources for city-wide IT Projects $155,521 • Recurring new expenses $542,861 • Software Maintenance $142,861 • Electronic Plan Review $400,000

STORM WATER UTILITY FUND

STREET MAINTENANCE FUND • Sales tax increase of almost $608k over current year estimate • $5.5M in additional contracted street maintenance

WATER UTILITIES WORKI NG TOGETHER TO MAKE A RLINGTON BETTER


WATER FIXED MONTHLY CHARGE Meter Size

FY17

Proposed FY18 Residential

⅝x¾

Commercial

$6.40/$9.00

$7.07/$10.30

$10.30

1

15.40

20.30

20.30

1-1/2

34.30

46.31

46.31

2

60.00

81.00

81.00

3

141.00

190.35

4

225.00

303.75

6

524.00

707.40

8

820.00

1107.00

10

1232.00

1663.20

WATER CONSERVATION RATES RESIDENTIAL BLOCK STRUCTURE

Usage (1,000 gal)

FY17

Proposed FY18

0-2

$2.02

$2.02

3 - 10

2.79

2.79

11 - 15

4.02

4.02

16 - 29

4.79

4.79

> 30

5.94

5.94

COST OF SERVICE COMMERCIAL VOLUME RATE BLOCK STRUCTURE

Usage (1,000 gals)

FY17

0 - 15

$ 3.00

Proposed FY18 $3.00

≥ 16

3.16

3.16

WATER CONSERVATION RATES CONSTRUCTION METER RATES

Usage (1,000 gal)

FY17

Proposed FY18

0-99

$ 5.90

$5.90

≥ 100

7.44

7.44

SEWER FIXED MONTHLY CHARGE Meter Size

⅝x¾

FY17

Proposed FY18

Residential and Commercial

Residential and Commercial

$5.80/$9.90

$7.64/$12.94

1

16.80

23.52

1-1/2

38.70

56.12

2

60.50

87.73

3

187.00

271.15

4

279.00

404.55

6

759.00

1100.55

8

1000.00

1450.00

10

1458.00

2114.10

COST OF SERVICE SEWER RATE

Wastewater Flow (1,000 gals) All usage

FY17

Proposed FY18 $4.18 $4.18

CUSTOMER IMPACT Monthly Bill (Water/Wastewater) Minimum User – ⅝ x ¾” meter (2,000 gal/ 2,000 gal)

Avg. Residential User – ¾” meter (7,000 gal/ 4,000 gal) Commercial Customer – 2” meter (50,000 gal/ 50,000 gal)

FY17

Proposed FY18

Annual Impact

Percentage Increase

$24.60

$27.11

$22.59

10.20%

$53.61

$57.95

$39.06

8.10%

$533.33 $434.07

9.94%

$485.10

Cost

Source Data: Texas Town & City, May 2017 and City Websites

$35.36 $36.45 $36.66 $38.38 $39.18 $40.36 $41.12 $44.98 $46.07 $47.01 $48.00 $53.73 $55.10 $56.70 $57.50 $58.10 $59.60 $62.82 $64.29 $64.82 $72.85

$80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $-

*Arlington’s proposed increase compared to other cities prior to their increase

Arlington Carrollton *Arlington… Plano Lewisville Dallas Irving Fort Worth Allen Frisco Mansfield Euless McKinney Bedford Denton Cedar Hill Richardson Flower Mound North Richland Hills Mesquite Garland

RESIDENTIAL WATER RATES FOR 10,000 GALLONS

Cost

Source Data: Texas Town & City, May 2017 and City Websites

$144.47 $208.84 $214.13 $215.60 $224.88 $236.60 $239.26 $264.10 $264.16 $267.94 $273.38 $274.00 $279.30 $284.97 $299.08 $310.54 $321.20 $325.18 $331.42 $348.56 $382.68

$450.00 $400.00 $350.00 $300.00 $250.00 $200.00 $150.00 $100.00 $50.00 $Carrollton Allen Lewisville Arlington Dallas *Arlington (Proposed… Fort Worth McKinney Euless Irving Frisco Denton Cedar Hill Plano Richardson Bedford Garland North Richland Hills Mesquite Mansfield Flower Mound

COMMERCIAL WATER RATES FOR 50,000 GALLONS

*Arlington’s proposed increase compared to other cities prior to their increase

FUNDING FOR RESERVES WORKI NG TOGETHER TO MAKE A RLINGTON BETTER


SELECTED CITY RESERVES SELECTED FINANCIAL RESERVES FY 2018 OPERATING POSITION

UNALLOCATED Balance on October 1, 2016

$

WORKING CAPITAL

LANDFILL LEASE

OTHER POST EMPLOYMENT BENEFITS

4,062,075

$ 17,151,326

$ 1,717,904

BUSINESS CONTINUITY

6,918,203

$ 19,217,230

-

-

-

-

-

301,598

837,773

-

-

-

7,219,801

$ 20,055,003

4,062,075

$ 17,151,326

$ 1,717,904

Appropriated Amounts

-

-

-

-

-

Transfers In / (Out)

-

-

-

-

-

7,219,801

$ 20,055,003

4,062,075

$ 17,151,326

$ 1,717,904

Appropriated Amounts Transfers In / (Out) Balance on September 30, 2017

Balance on September 30, 2018

$

$

$

$

$

FY 2018 SUMMARY OF RESERVES FY 2018 Reserves Summary $55,000,000 $50,000,000

BCR, $4,062,075

$45,000,000 Landfill, $17,151,326

$40,000,000

Not Required: $14.11m

$35,000,000 $30,000,000 $25,000,000

OPEB, $1,717,904

Required: $36.10m Unallocated, $7,219,801

$20,000,000 $15,000,000

$10,000,000 $5,000,000 $-

Working Capital, $20,055,003

RESERVE TRENDS

CHANGE IN AVERAGE HOME VALUE

BUDGET CALENDAR • Special Budget Meeting – August 15 • Scheduled Council Meetings • August 22 – first public hearing on the tax rate • Town Hall meetings • August 24, 6:30pm Municipal Airport • August 31, 6:30pm Council Briefing Room City Hall • Second public hearing on the tax rate • September 5 • Budget Public Hearing • First vote on budget and tax rate • September 14 • Second vote on budget and tax rate

QUESTIONS ? City of Arlington FY 2018 Proposed budget

Presentation - 2018 Proposed Budget - City of Arlington, TX

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