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2018 PROPOSED BUDGET CITY OF ARLINGTON

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


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


General

HomesteadOver 65 Disabled Person

Tax Ceiling for

Over 65Vet1 Vet2 Vet3 Vet4

Minimums and

Maximums

Authorized

Up to 20% of appraised

value, must be worth at

least $5,000

At least $3,000; no

max established

At least $3,000; no

max established

Local Officials

Authorized or Not

Authorized

5,000 7,500 10,000 12,000

Arlington 20% $60,000 $60,000 Authorized 5,000 7,500 10,000 12,000

Minimums and

Maximums

Authorized

Arlington

Mandated Veteran ExemptionsLocal Option Exemptions

Authorized Business Exemptions

RESIDENTIAL

COMMERCIALFreeport Abatements

AuthorizedAuthorized

Local Officials Authorized or Not

Authorized

Local Officials Authorized or Not

Authorized

CITY COMPARISONS WO R K I N G T O G E T H E R T O M A K E A R L I N G T O N B E T T E R


OTHER CITY COMPARISONS


$46

$49

$56

$60

$66

$67

$74

$75

$85

$95

$99

$124

$125

$138

$230

$- $50 $100 $150 $200 $250

Mesquite

El Paso

Arlington

Fort Worth

San Antonio

Grand Prairie

Corpus Christi

Mansfield

Dallas

Carrollton

Irving

Richardson

Plano

Austin

Southlake

FY 2017 Assessed Valueper Capita (in $1,000's)

Average: $9364.5

66.9

71.3

73.9

76.3

79.1

79.2

81.4

82.9

89.9

97.7

99.6

122.3

126.9

151.0

- 20 40 60 80 100 120 140 160

Carrollton

Arlington

Grand Prairie

San Antonio

Mesquite

Mansfield

Fort Worth

Irving

Plano

El Paso

Richardson

Corpus Christi

Dallas

Southlake

Austin

FY 2017 Employeesper 10,000 Citizens

Average: 90.9



$561

$613

$685

$716

$748

$759

$762

$767

$768

$946

$965

$1,062

$1,076

$1,171

$1,301

$- $200 $400 $600 $800 $1,000 $1,200 $1,400

El Paso

Arlington

Grand Prairie

Corpus Christi

Carrollton

Mansfield

San Antonio

Fort Worth

Mesquite

Dallas

Irving

Austin

Plano

Richardson

Southlake

FY 2017 General FundExpenditures per Capita

Average: $860 $314

$360

$369

$373

$447

$447

$498

$535

$572

$591

$598

$608

$664

$775

$1,063

$0 $200 $400 $600 $800 $1,000 $1,200

Mesquite

Arlington

San Antonio

El Paso

Grand Prairie

Corpus Christi

Fort Worth

Mansfield

Carrollton

Irving

Plano

Austin

Dallas

Richardson

Southlake

FY 2017 Tax Levy Per Capita

Average: $548

OTHER CITY COMPARISONS, SWORN STAFF PER 10,000 POPULATION


OTHER CITY COMPARISONS, STAFF PER 10,000 POPULATION


BUDGET AND SERVICE HIGHLIGHTS WO R K I N G T O G E T H E R T O M A K E A R L I N G T O N B E T T E R


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 WO R K I N G T O G E T H E R T O M A K E A R L I N G T O N B E T T E R


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.

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.

60,000

80,000

100,000

120,000

140,000

160,000

180,000

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017Estim.

FY 2018Estim.

Municipal Court Revenues and CitationsFY 2006 - FY 2018 Budget / Estimates

Revenues, in $ hundreds Citations

PROPERTY TAX RATES

COMPENSATION & BENEFITS WO R K I N G T O G E T H E R T O M A K E A R L I N G T O N B E T T E R


COMPENSATION PLAN YEAR 2

Proposed compensation increase for all funds = $6.8M

Job Family Year 2 Increase General Fund Cost

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 General Fund Cost

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

Total $5,791,577

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

COUNCIL PRIORITIES WO R K I N G T O G E T H E R T O M A K E A R L I N G T O N B E T T E R


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)


Enhance Regional Mobility

• Transportation Services ($131,500)

• Milo Pilot Project ($72,700)

• Signal Performance Evaluation System

($59,000)


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)


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)


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)


Culture / Recreation / Education

• New Parks Development O&M

Funding ($86,000)

• Reopen Ditto Golf Couse ($550,000)


Financial / Economic Development

• Compensation Study Year 3 of 3

($46,200)

• HRIS Specialist ($101,000)

• ED Financial Consultant ($10,000)

• Employee Wellness Clinic ($1M)


Infrastructure

• Out of Life Fleet Replacements

($885,000)

• Landfill Professional Services ($25,000)

• Fleet Shop Site Assessment ($50,000)

OTHER FUNDS WO R K I N G T O G E T H E R T O M A K E A R L I N G T O N B E T T E R


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 WO R K I N G T O G E T H E R T O M A K E A R L I N G T O N B E T T E R


WATER FIXED MONTHLY CHARGE

Meter Size FY17

Proposed FY18

Residential Commercial

⅝ x ¾ $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

Proposed

FY18

0 - 15 $ 3.00 $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

FY17

Proposed FY18

Residential and

Commercial

Residential and

Commercial

⅝ x ¾ $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)

FY17

Proposed

FY18

All usage $4.18 $4.18

CUSTOMER IMPACT

Monthly Bill

(Water/Wastewater)

FY17

Proposed

FY18

Annual

Impact

Percentage

Increase

Minimum User –

⅝ x ¾” meter (2,000 gal/

2,000 gal) $24.60 $27.11 $22.59 10.20%

Avg. Residential User –

¾” meter (7,000 gal/

4,000 gal) $53.61 $57.95 $39.06 8.10%

Commercial Customer –

2” meter (50,000 gal/

50,000 gal) $485.10 $533.33 $434.07 9.94%

RESIDENTIAL WATER RATES

FOR 10,000 GALLONS

$3

5.3

6

$3

6.4

5

$3

6.6

6

$3

8.3

8

$3

9.1

8

$4

0.3

6

$4

1.1

2

$4

4.9

8

$4

6.0

7

$4

7.0

1

$4

8.0

0

$5

3.7

3

$5

5.1

0

$5

6.7

0

$5

7.5

0

$5

8.1

0

$5

9.6

0

$6

2.8

2

$6

4.2

9

$6

4.8

2

$7

2.8

5

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

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Source Data: Texas Town & City, May 2017

and City Websites C

ost

*Arlington’s proposed increase compared to other cities

prior to their increase

COMMERCIAL WATER RATES

FOR 50,000 GALLONS

$1

44

.47

$

20

8.8

4

$2

14

.13

$

21

5.6

0

$2

24

.88

$

23

6.6

0

$2

39

.26

$

26

4.1

0

$2

64

.16

$

26

7.9

4

$2

73

.38

$

274

.00

$

27

9.3

0

$2

84

.97

$

29

9.0

8

$3

10

.54

$

32

1.2

0

$3

25

.18

$

33

1.4

2

$3

48

.56

$

38

2.6

8

$- $50.00

$100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $450.00

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Source Data: Texas Town & City, May 2017

and City Websites C

ost

*Arlington’s proposed increase compared to other cities

prior to their increase

FUNDING FOR RESERVES WO R K I N G T O G E T H E R T O M A K E A R L I N G T O N B E T T E R


SELECTED CITY RESERVES

OTHER POST

WORKING BUSINESS LANDFILL EMPLOYMENT

UNALLOCATED CAPITAL CONTINUITY LEASE BENEFITS

Balance on October 1, 2016 6,918,203$ 19,217,230$ 4,062,075$ 17,151,326$ 1,717,904$

Appropriated Amounts - - - - -

Transfers In / (Out) 301,598 837,773 - - -

Balance on September 30, 2017 7,219,801$ 20,055,003$ 4,062,075$ 17,151,326$ 1,717,904$

Appropriated Amounts - - - - -

Transfers In / (Out) - - - - -

Balance on September 30, 2018 7,219,801$ 20,055,003$ 4,062,075$ 17,151,326$ 1,717,904$

SELECTED FINANCIAL RESERVES

FY 2018 OPERATING POSITION

FY 2018 SUMMARY OF RESERVES

Working Capital,

$20,055,003

Unallocated, $7,219,801

BCR, $4,062,075

OPEB, $1,717,904

Landfil l , $17,151,326

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$50,000,000

$55,000,000

FY 2018 Reserves Summary

Not Required: $14.11m

Required: $36.10m

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 ?


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