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Home My WebLink AboutFY 2020 Recommended Budget Presentation1 David Cooke –City Manager August 13, 2019 2 GOAL 1 –Increase Funding for Capital Investment & Maintenance GOAL 2 –Open New Facilities & Meet Current Obligations GOAL 3 –Improve Equity of City Services GOAL 4 –Priority Initiatives GOAL 5 –Reduce Property Tax Rate 3 •Finish 2014 Bond Program •Implement 2018 Bond Program •Increase funding for Infrastructure Maintenance & Investment •Continue improvements to city neighborhoods through Neighborhood Improvement Strategy •Plan for 2022 Bond Program $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 FY2016 FY2017 FY2018 FY2019 FY2020MillionsGeneral Fund PAYG 4 General Fund $707,784,214 40% Debt Service Funds $114,605,038 6% Special Revenue Funds $178,766,767 10% Enterprise Funds $605,228,979 34% Internal Service Funds $168,528,460 10% Fiscal Year 2020 Operating Funds Budget $1,774,913,458 Notes: General Fund excludes PAYGO/Capital Transfers & IT Charges to other funds Debt service excludes debt service accounted as transfers in other funds Excludes contributions to fund balance/net position Actual appropriation ordinance will be higher to include this activity 5 Notes: General Fund excludes PAYGO/Capital Transfers & IT Charges to other funds -Debt service excludes debt service accounted as transfers in other funds -Excludes contributions to fund balance/net position -Actual appropriation ordinance will be higher to include this activity –Internal Service Funds FY2019 modified to reflect changes in 440 health insurance 6 $61.220 $64.935 $67.008 $74.907 $83.712 $91.384 $103.362 $44.266 $47.076 $49.627 $54.521 $60.950 $67.362 $76.994 $30 $40 $50 $60 $70 $80 $90 $100 $110 2014 2015 2016 2017 2018 2019 2020Assessed/Taxalbe Values -BillionsTotal Assessed Value Adj. Net Taxable Value 7 Overall $0.7850 O&M $0.6300 Operations $0.5650 Capital $0.0650 8 Overall $0.7475 O&M $0.5950 Operations $0.5300 Capital $0.0650 Debt $0.1525 9 FY 2019 Current FY 2020 Recommended Change O&M 56.50 53.00 -3.50 PAYG 6.50 6.50 ---- Debt 15.50 15.25 -0.25 Total 78.50 74.75 -3.75 *values expressed as cents 10 Property Tax $386,477,369 54.60% Sales Tax $172,769,615 24.41% Other Tax $53,887,446 7.61% License & Permits $16,696,626 2.36% Intergovernmental $373,423 0.05% Charge for Service $27,828,206 3.93% Fines & Forfeitures $5,549,659 0.78% Other $3,217,942 0.45% Transfer In $40,983,928 5.79% Total Fiscal Year 2020 Appropriations $707,784,214 * Notes: General Fund excludes PAYGO/Capital Transfers & IT Charges to other funds 11 General Fund Revenues FY2019 to FY2020 Comparison By Source* *Excludes PAYGO/Capital and ITS Revenues 12 General Fund Expenditures FY2019 to FY2020 Comparison By Department * Notes: General Fund excludes PAYGO/Capital Transfers & IT Charges to other funds 13 •Fire Station (Walsh Ranch & 287/Harmon Rd) •Golden Triangle Library •Reby Carey Youth Library •Far North Animal Shelter •New Parks •Full Funding of City Pension Contributions 14 •Create Diversity & Inclusion Department •Create a Police Monitor program •Institute a Police Cadet program •Utilize PAYG programs to continue neighborhood improvements and equitable capital investments 15 •Increase staffing for Police patrol and code enforcement •Economic Development plan •Pay for Performance; Meet and Confer; and Collective Bargaining Agreements 16 *values expressed as cents FY 2019 Current FY 2020 Recommended Change O&M 56.50 53.00 -3.50 PAYG 6.50 6.50 ---- Debt 15.50 15.25 -0.25 Total 78.50 74.75 -3.75 17 FY 2019 Current FY 2020 Recommended Change O&M $352,229,698 $383,776,014 8.96% PAYG 40,856,015 47,066,870 15.20% Debt 100,663,251 110,426,117 9.70% Total $493,414,950 $541,269,001 9.70% 18 Stormwater $44,199,627 7% Solid Waste $69,412,479 12% Municipal Parking $7,806,720 1% Municipal Airports $8,091,447 1% Water & Sewer $475,718,706 79% Total Fiscal Year 2020 Appropriations $605,228,979 Excludes contribution to net position 19 Excludes contribution to net position 20 Fund Rate Change Water & Sewer +1.98% Water / +2.93% Sewer Stormwater +6.5% for $60-70M Capital Program Solid Waste Upcoming Rate Review 21 Primary Drivers: •High Capital Demands •Increased Personnel Costs •Utility Cut Policy •Bio-Solids Management Typical Residential Customer See around a 4.4% increase approximately: $2.47 per month $29.64 annually 22 0 50 100 150 200 250 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fort Worth Population Served Declining Demand Greater number served – Larger system Wholesale Population Served Gallons/Capita/Day (5-Year Avg)Gallons/Capita/DayPopulation Served 23 •Current Rate is $5.40 monthly per 2,600 sq ft of impervious surface •No rate increase since 2012 •Reduced ability to deliver capital with operating needs Proposing a 6.5% increase Average homeowner increase of $4.21 per year 24 - 10 20 30 40 50 60 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029Millions Existing Revenues With 6.5% Increase Rate Increases Forecast 2% Growth $27M Capital Project Bond Program $60-70M Capital Project Bond Program Averaging 2% Growth +6.5% Rate Increase 25 •Address 40 of the 100 critical life-safety locations •Current program could address 15 Hazardous Road Overtopping •Increase program by 100%Pipe Rehabilitation •Increase program by 80% •Addresses 10 of the known 22 milesChannel Restoration •Potential to execute an initial phase in an area like: Lebow, Near Westside, TCU/Berry Large Flood Mitigation Projects 26 Total Fiscal Year 2020 Appropriations $178,766,767 Municipal Golf $4,999,647 Culture & Tourism $67,648,376 Environmental Protection $4,223,819 Special Donations $2,000,000 CCPD $85,882,210 Botanic Garden $6,426,538 Other $7,586,177 Excludes contribution to fund balance 27 Excludes contribution to fund balance 28 •2 School Resource Officers •2 Recruit classes for new officers •Replacement vehicle funding •Doubling the amount of funding for community programs •Capital Projects Sales Tax $81,340,192 92% Intergovernmental $5,992,302 7% Other $532,510 1% Salary & Benefits $45,770,971 52% General Operating $20,186,718 23% Capital Related Transfer $19,924,521 23% Contribution to Fund Balance $1,982,794 2%RevenuesExpenditures 29 •Culture & Tourism Funds following financial model •(Dickies Arena opens November 2019) •Botanic Garden •Future CapitalNeeds •Admission Revenues •Environmental Protection •Upcoming rate review in conjunction with Solid Waste fund •Closing Red Light Enforcement Fund at end of FY2019 30 * -FY2019 Modified to reflect the changes associated with 440 health insurance changes Excludes contribution to net position Retiree Healthcare Trust (Fiduciary Fund) is presented 31 Additions 58 –Police (35 Officers –2 SRO –21 Cadet Program) 35 –Code (29 North Animal –6 Code Enforcement) 14 –Fire Station #45 (287 & Harmon Rd) 10 –Library (9 East Library -1 Events Coordinator) 8 –Water 6 –TPW -Capital Projects Services (Capital Delivery) 2 –Police Monitor 2 –Planning & Development 1 –Diversity & Inclusion Department 1 –TPW (Street Use Permit) 1 –Audit 1 –Botanic Garden 1 –City Secretary 1 –Aviation 141 Total Subtractions 10 –Golf (Sycamore Golf Course Closure) 10 –Municipal Courts (Southwest Court) 3 –Red Light Enforcement (Direct Admin Support) 1 –City Manager’s Office (Grant Funded) 1 –Finance (Financial Reporting Mgr) 1 –Neighborhood Services (Cowboy Santa) 1 –Property Management (Fleet) 27 Total 114 Net New Positions 32 GOAL 1 –Increase Funding for Capital Investment & Maintenance GOAL 2 –Open New Facilities & Meet Current Obligations GOAL 3 –Institute structures to address equity in the delivery of services GOAL 4 –Priority Initiatives GOAL 5 –Reduce Property Tax Rate 33 Date Activity August 20th CCPD Public Hearing on CCPD Budget & Budget Adoption August 22nd City Council Budget Work Session August 23rd City Council Budget Work Session August 27th CCPD Budget Adoption (if necessary) August 27th City Council -Public Hearing on City Budget & Tax Revenue Increase September 5th & 6th City Council Budget Work Session (if necessary) September 10th City Council –2nd Public Hearing on City Budget & Tax Revenue Increase –Public Hearing & Action on CCPD Budget September 17th City Council to Adopt Budget 34 Questions/Comments/Conclusion