fy14 total budget

AnnualBudgetforOctober1,2013‐September30,2014

Adopted by Ordinance No. 1932 September 17. 2013

The members of the governing body voted on the proposal to consider the budget as follows:

For: James A. Thompson Himesh Gandhi Joe R. Zimmerman Steve R. Porter Bridget R. Yeung Amy L. Mitchell Harish C. Jajoo Against: None Present and Not Voting: None Absent: None

Property Tax Rate Comparison

Per $100 Valuation 2012‐13 2013‐14

Adopted Tax Rate $ 0.30895 $ 0.30895Effective Tax Rate 0.30278 0.29808

Effective M&O Tax Rate 0.15791 0.16543

Rollback Tax Rate 0.31546 0.32316

Debt Tax Rate 0.13610 0.13610

Debt obligations secured by property taxes in fiscal year 2013‐14:$ 15,437,758 This budget will raise more revenue from property taxes than last year's budget by an amount of $1,090,741, which is a 3.59% increase from last year's budget. The property tax revenue to be raised from new property added to the tax roll this year is $383,059.

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Table of ContentsTransmittal Letter Financial Summary

Three Year Summary of All FundsExecutive SummaryDetailed Summary by Fund

City OverviewCity Organizational ChartCity OverviewCity ProfileBudget Process & CalendarLegal Requirements & Basis of BudgetingGoals & VisionStaffing Levels & Historical FTE Count

Property Taxes SummaryTax CollectionsAnalysis of Certified RollPrincipal Taxpayers (Top Ten)

Debt Service Fund SummaryIncome StatementDebt Service Schedules/Overlapping Debt

General FundSummaryIncome StatementGeneral GovernmentSupport Services, Accounting & Municipal CourtPublic WorksParks & RecreationCommunity Development & EngineeringPolice Department & Public Safety DispatchFire DepartmentNon-Departmental

Special Revenue FundsSummaryCourt Security FundCourt Technology FundCommunity Development Block Grant FundTourism FundLaw Enforcement FundsPhotographic Traffic Signal Enforcement FundDebt Reduction Funds

Capital Projects SummarySummary Schedule of Revenues & ExpendituresProject Detail & Funding Sources

713131420232324262729323747474950515353555659606268818588919599

102103103109110111112113116117121121123124

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Operations & Maintenance ImpactEnterprise Funds

Water Utility FundSurface Water FundAirport FundSolid Waste Fund

Internal Service Funds SummaryEmployee Benefits FundFleet Replacement FundHigh-Tech Replacement Fund

Component Units SummarySugar Land Development Corporation (SLDC)Sugar Land 4B Corporation (SL4B)TIRZ #1

Five Year Forcast Summary & AssumptionsIncome Statements

Appendices Financial Management Policy Statements (FMPS)Budget & Tax Rate OrdinancesSalary StructuresDepreciation Schedule for Fire Fee CalculationsGlossaryAcronymns

130131131140146154157157159160161163163166170174175175182191191214218228232240

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Annual Budget for October 1, 2013 – September 30, 2014

List in order: (L to R)

Himesh Gandhi ........................................... Council Member, At Large Position One

Amy L. Mitchell ....................................................... Council Member, District Three

James A. Thompson ........................................................................................ Mayor

Joe R. Zimmerman .................................... Council Member, At Large Position Two

Bridget R. Yeung ........................................................ Council Member, District Two

Harish C. Jajoo ........................................................... Council Member, District Four

Steve R. Porter .......................................................... Council Member, District One

Presented by:

Allen Bogard ......................................................................................... City Manager

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The Government Finance Officers Association of the United States and Canada (GFOA) presented anaward of Distinguished Budget Presentation to the City of Sugar Land for its annual budget for the fiscalyear beginning October 1, 2009.

In order to receive this award, a governmental unit must publish a budget document that meetsprogram criteria as a policy document, an operations guide, a financial plan and a communicationsdevice.

This award is valid for a period of one year only. We believe our current budget continues to conform toprogram requirements and we are submitting it to GFOA to determine eligibility for another award.

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Office of the City Manager

October 1, 2013

Honorable Mayor and Members of City Council:

In accordance with Texas Statute and the City of Sugar Land Charter, Section 6.03, the approved

budget for the fiscal year beginning October 1, 2013 and ending September 30, 2014 is hereby

presented. The budget for fiscal year 2014 follows the guidelines in the City Council adopted

Financial Management Policy Statements (FMPS), maintains existing service levels, and

implements City Council priorities. The fiscally conservative approved budget leaves the

current tax rate unchanged, maintains the high level of City services provided to Sugar Land

residents and visitors, ensures continued financial strength by meeting all fund balance

requirements, and is structurally balanced.

Financial and Economic Outlook

Fiscal year 2013 has seen a normalization of economic trends that started in FY12. The strongest

indicator of normalization is in commercial property values, which declined 7.2% in the 2010

tax year. Based on the 2013 certified tax roll, commercial values have increased 7.2%, and are

now above the values seen in 2009. This normalization of the commercial tax base is vital as the

City is heavily dependent on sales tax revenue. Sales tax collections have been consistent during

the year, and it is anticipated that this trend will continue through year end and into next year.

A growing commercial property tax base allows the City to maintain a low tax rate, while

benefiting from increases in sales tax collections.

Building activity remains strong, with significant activity in commercial permitting. Some of the

larger commercial projects that occurred throughout 2013 include Accredo Phase II, Costco,

Telfair Exchange Lofts, and Texas Instruments. These large developments are a result of a high

level of work effort put forth by City staff, the Planning and Zoning Commission, and City

Council to ensure Sugar Land is a preferred destination in the Houston region. This increase in

commercial development is anticipated to continue into FY14 as commercial tracts in Telfair

and Imperial continue to develop.

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The budget has been prepared based on conservative revenue estimates for both sales and

property taxes. Sales tax is projected to grow at 2.7% over FY13 levels, and property tax at 5.8%,

which is driven primarily by the significant growth in commercial valuations. The growth in

commercial valuation supports existing services offered by the City, and allows for inclusion of

City Council priorities in the FY14 approved budget. Overall, the financial and economic

outlook for FY14 indicates that the approved budget can be supported by the conservative

growth in revenues and expenditures that are assumed.

City Council Priorities

The FY14 budget incorporates a number of City Council priorities that are the result of long‐

range planning. These priorities include operation of the surface water treatment plant (SWTP),

establishing high quality emergency medical service (EMS) within the City, addressing

drainage issues, a continued emphasis on pavement rehabilitation, and an emphasis on

economic development to continue to attract high quality businesses and development.

One of the most significant milestones in FY14 will be bringing the SWTP online. The budget

incorporates the seven new staff members and associated O&M required to operate the plant.

The rate adjustment, staff additions, and O&M to support the SWTP that are included in the

budget are consistent with the financial plans that have been presented to City Council over the

last several years.

The City Council priority of dedicated EMS service in Sugar Land is also addressed in the FY14

budget. Adding EMS will allow for better utilization of Fire Department resources and ensure

that Sugar Land residents receive a quick response to emergency calls. One‐time resources are

included in the General Fund budget to begin implementation of EMS in January 2015. Also

included are a battalion chief and two public safety dispatchers that will be necessary as part of

the implementation.

Resources are included in the FY14 budget to address drainage and pavement rehabilitation

issues that have been identified by City Council as a priority. The FY14 capital improvement

program (CIP) includes funding to address drainage issues in Ragus Lakes and funding for

pavement rehabilitation. Additionally, new revenue from the residential franchise payment for

solid waste allows for dedicated O&M funding in the Public Works Department to address

pavement issues.

The City has two component units that are included in the budget – the Sugar Land

Development Corporation (SLDC) and Sugar Land 4B Corporation (SL4B). The corporations are

instrumental in the success of continued economic development activities and provide funding

for the City’s economic development program as well as supporting marketing and promotion

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activities. As mentioned, commercial development is key to the continued financial strength of

the City. The corporations support efforts to attract and retain businesses. The additional

commercial property value added by these efforts, as well as the potential for new sales tax,

allows the City to offer residents high quality service without increasing the tax rate.

Environmental monitoring and testing continues to be an important part of City business. In

October, the City will transition to a single commercial waste hauler. In order to ensure

compliance with residential and commercial pickup, a new position is budgeted that is split

between the Solid Waste and General Funds. The position will ensure that there is compliance

with the agreement between the City and solid waste hauler, as well as perform inspections of

storm water runoff as required by increased reporting requirements from TCEQ. In the Water

Utility Fund, requirements for grease trap inspections and wastewater sampling result in the

need for a water quality technician to ensure the City remains in compliance with the sanitary

sewer overflow agreement with the state.

There are several areas in the General Fund where additional resources are needed to meet

existing service levels. In November 2012, the City completed the T.E. Harman Center to

accommodate the expansion of senior adult programs and activities. The center has been an

extremely popular and demand for activities at the center has increased. Resources are included

in the budget to upgrade a part time position to fulltime so that staff is available to coordinate

programs and activities. The Sugar Land animal shelter continues to house an increasing

number of adoptable animals. Resources are included in the budget to upgrade a part time

position to fulltime in order to ensure that the animals continue to receive quality care. In the

Accounting area, the increase in CIP projects and associated payment of invoices on projects has

resulted in additional workload. The budget includes the upgrade of an accounts payable

position from part time to fulltime so that the City is able to efficiently process payments and

continue to pay vendors in a timely manner.

Employee Compensation & Benefits

The City’s championship workforce remains one of its biggest assets. In order to remain

competitive and to reward employees for providing superior service, it is important to ensure

that the pay structure is competitive. The approved budget includes funding for an average 3%

merit increase to employees based on annual performance evaluations, effective January 2014.

The City does not give cost of living adjustments, so the merit increase program is the only way

for employees to receive salary increases outside of changing positions. The FY14 budget also

includes funding to complete a public safety compensation study, the results of which will

assist in determining pay structure for EMS positions.

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Calendar year 2012 was the first year of self‐funding medical insurance plans for the City. The

self‐funding strategy has proven to be effective, and the increase in medical costs for FY14 is

projected to be 4.9%. The increase will be distributed proportionally between the City and

employees.

The City participates in the Texas Municipal Retirement System (TMRS) for full‐time employees

but does not participate in Social Security. The TMRS contribution is determined by an actuarial

study that is conducted annually. The contribution rate for the City for 2014 is 15.56%, an

increase from the 2013 rate of 15.20%. Stability in TMRS and medical plan costs has allowed the

City to plan for merit increases for qualified employees and maintain the benefits burden at

28.63%, which is within policy.

Tax Rate and Fee Adjustments

The 2013 tax rate for the City is unchanged at $0.30895 per hundred dollars valuation and

remains one of the lowest rates in the state. The tax rate is able to remain flat due to the

increases seen in commercial valuation. Commercial valuation increased by 7.2%, while

residential valuation increased by 3.9%, of which revaluation is 2.4%. The existing tax rate will

result in an increase of 2.4% to the average residential tax bill; the increase in the tax bill is

consistent with historical trends.

As the implementation of the mandated reduction in groundwater usage continues, there are

stepped increases that have been planned over several years to meet the SWTP operating

requirements, and the FY14 approved budget contains the final step in surface water rate

increases. To minimize the impact to utility customers, there are no increases to the water or

wastewater rates. Surface water participants pay a fee per 1,000 gallons of water pumped from

groundwater sources. The current GRP fee of $1.50 is increasing to $1.75 in January 2014 and

will be applied to all participants in the GRP. The new rate is consistent with the financial plan

that has been presented to City Council over the last few years. City utility customers will see

surface water rates increase from $1.61 to $1.88 per 1,000 gallons billed. Based on the increase,

the average residential utility bill will increase by 3.3%.

The Solid Waste Fund will see a number of changes starting in FY14 as a result of the

commercial solid waste franchise agreement with Republic Services that was approved by City

Council in March. The agreement transitions all commercial customers to a single solid waste

carrier effective in October, and adds a new residential franchise payment from Republic. The

new agreement will result in approximately $200,000 in additional revenue to the City that will

be transferred to the General Fund to fund street repairs in the Public Works department.

Residential rates increase 2.5% in January based on the contract with Republic; the current rate

of $16.00 will increase to $16.40 per month.

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Financial Summary

Based on the priorities and needs addressed above, the approved budget totals $207.57 million.

Of the total, $169.71 million is for operations, and $37.85 million is for capital projects. The

approved budget is possible with no change to the tax rate and no changes to water and

wastewater utility rates. The surface water fee increase is the last in a planned series of stepped

increases that have been planned over a number of years, and the solid waste increase is based

on contractual requirements.

The budget includes the addition of 14.5 full-time equivalent positions, with 7.0 included for the

operation of the SWTP, 3.0 for the implementation of EMS services, 1.5 positions in response to

increased workload, 2.0 positions for environmental monitoring, and 1.0 position to support the

implementation of the Tourism program. As identified in the FMPS, a long-range forecast has

been prepared for each of the major operating funds. The forecast shows that the budget can be

sustained into the next five years with conservative annual growth in revenues. The financial

summary for the FY14 is below.

I encourage you to read further into the information describing the fiscal year 2014 budget. The

executive summary that follows this transmittal letter provides an overview of revenues and

expenditures included in each of the operating funds and a description of the CIP and employee

compensation. Within each fund summary are more detailed descriptions of services for the

departments that will support Sugar Land at the current service levels.

Respectfully,

Allen Bogard

City Manager

($ in Millions)

FY14

Adopted

General Fund 69.06$

Debt Service Fund 18.73

Utility Enterprise Funds 36.11

Airport Fund 19.24

Solid Wate Fund 5.22

Component Units 9.45

Other Funds 11.91

Total City Operating Funds 169.71

Capital Projects 37.85

Totals 207.57$

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CITY OF SUGAR LANDSUMMARY OF ALL FUNDSREVENUES AND EXPENDITURES

FY13FY12 Adjusted FY13 FY14

Actuals Budget Projection BudgetREVENUES:

Property Taxes 28,242,085$ 29,711,552$ 29,822,282$ 31,439,800$Sales Tax 43,201,823 43,496,160 43,496,140 44,687,318Other Taxes 7,472,103 7,199,888 7,705,725 7,752,055Licenses & Permits 2,317,039 2,153,235 2,525,434 2,637,853Charges for Service 59,862,167 62,416,352 63,489,030 68,833,380Fines & Forfeitures 3,054,071 3,335,000 2,937,410 3,217,181Interest Income 375,742 262,716 269,972 266,131Intergovernmental 2,835,177 467,288 336,425 586,805Developer Fees 1,132,189 959,839 1,248,589 1,105,089Miscellaneous 2,258,602 3,389,291 3,774,055 4,324,461Bond Proceeds 46,600,260 31,045,824 38,262,776 30,960,900Contributions 6,361,368 6,660,395 6,583,717 7,072,095

Total Revenues 203,712,626 191,097,540 200,451,555 202,883,068Transfers from other funds 51,193,444 33,788,111 33,464,036 44,297,089

Total Available Resources 254,906,070 224,885,651 233,915,591 247,180,157

EXPENDITURES:

General Government 10,362,910 14,086,278 13,357,230 13,266,975Support Services 2,497,185 2,497,185 2,541,838Fiscal Services 2,401,694 2,595,611 2,595,611 2,699,149Public Works 6,080,661 6,141,533 6,141,533 7,077,526Parks & Recreation 4,769,674 5,676,355 5,676,355 5,754,160Community Development 5,391,840 5,188,501 5,058,637 5,316,838Police Department 17,350,741 17,501,823 17,404,835 18,731,552Fire Department 10,236,757 10,809,510 10,809,510 12,976,923Debt Service 46,644,738 50,452,889 44,257,807 37,969,154Other 2,308,110 15,269,528 12,021,051 6,464,822Construction * 77,999,409 21,982,714 29,000,670 37,854,300Utility Services 17,419,896 30,692,641 31,495,069 25,049,433Airport Services 13,403,159 15,920,162 16,655,631 17,886,507Insurance Coverage 5,940,566 6,107,967 6,000,679 6,495,077Capital Replacement 1,841,932 2,840,434 7,360,220 2,438,942Rebates & Assignments 3,417,552 4,699,700 4,014,432 5,042,179

Total Expenditures 225,569,639 212,462,831 214,346,455 207,565,375Transfers to other funds 51,193,444 33,788,111 33,464,036 44,297,109

Total Expenditures & Transfers 276,763,083$ 246,250,942$ 247,810,491$ 251,862,484$

* As capital projects are budgeted for project length and not fiscal year, construction is based on annual* funding and not actual expenditures.

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Executive Summary

39.48

37.65

39.14

43.12 43.49 44.68

$20

$30

$40

$50

FY09 FY10 FY11 FY12 FY13 Pro. FY14 Bud.

Total Sales Tax in Millions

Major Revenue Sources Major revenue sources for the City total $202.88

million (excluding interfund transfers). Five primary

revenue categories, which are comprised of

property taxes, sales tax, other taxes (franchise

taxes and hotel occupancy taxes), charges for

services, and bond proceeds, represent 91% of total

revenues for the City. Miscellaneous revenues

include licenses and permits, fines and forfeitures,

contributions, and developer fees and make up the

remaining 9%. The chart to the right illustrates the

breakdown of the major revenue sources.

Property Tax

Revenues from ad valorem or property taxes represent 16% of overall revenues for the City at $31.44 million.

Property tax revenues are based on the current tax rate of $0.30895. Property tax collection is authorized by the

State of Texas up to $2.50 per $100 of assessed valuation for maintenance and operations and debt service.

Sales Tax

Sales tax revenue, collected at $44.7 million, represents 22% of total revenues. The sales tax rate in Sugar Land is

8.25% of goods or services sold or delivered within the boundaries of the City. The tax is collected by businesses

making the sale and is remitted to the State Comptroller of Public Accounts on a monthly, quarterly or annual basis.

Of the 8.25% tax, the State retains 6.25% and distributes 2% to the City. Of the total 2% local share, 0.25% is

allocated to the Sugar Land Development Corporation (SLDC) and 0.25% to the Sugar Land 4B Corporation (SL4B);

the remaining 1.5% is deposited in the General Fund.

Included in the sales tax budget is base sales tax ($41.86M) and collections from incentive agreements ($2.82M).

The State allows cities to enter into incentive agreements with companies that locate within the City and report

sales tax to the City for local collections. In turn, the City grants a portion of the collections to the company in the

form of an incentive payment. The City currently has

three active incentive agreements in place. The gross

collections estimated from companies under these

agreements totals $2.82 million, of which $1.09 million

will be paid out in incentives in fiscal year 2014.

Sales tax revenue estimates are prepared using

correlation and regression analysis. As of FY13, the City

sales tax collections have fully normalized following the

recession. FY14 sales tax revenue is budget at 2.7% over

the FY13 estimate; FY13 collections are trending at

budget. The chart to the right illustrates the historical

trend of sales tax collections in the City.

Other Taxes

4%

Misc 9%

Property Taxes 16% Sales Tax

22%

Charges for Services

34%

Bond Proceeds

15%

Major Revenue Sources

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Other Taxes

Other Taxes represent 4% of City revenues at $7.75 million and are comprised of franchise and hotel occupancy

taxes. Franchise taxes are anticipated to total $5.69 million in FY14. Franchise revenues are derived from non-

exclusive franchise agreements the City has with utilities that use the City’s right-of-way to conduct business.

Besides defining the responsibilities of the utilities maintaining their assets, the agreements contain a franchise fee

clause that requires the utilities to compensate the City for use of right-of-way. Generally the fees are based on a

percentage of a utility’s gross receipts or a per-unit of usage charge (generated by customers located within the

City’s corporate limits) that range from 2% to 5%. Hotel occupancy taxes total $2.05 million. Both franchise taxes

and hotel occupancy taxes are estimated using trend analysis. Historic performance is analyzed and growth from

new development is factored into the estimates when developing the budget.

Charges for Services

Charges for services represent 34% of total City revenues at $68.83 million and include fees for service in the

General, Utility, Airport, and Solid Waste Funds.

General Fund Charges for Services

Charges for services in the General Fund total $3.54 million and are primarily derived from user fees for services like

fire protection in the City’s extraterritorial jurisdiction, parks and recreation activities and rentals, and

administrative fees.

Administrative fees are paid by the Sugar Land 4B Corporation for support services and the management of capital

projects that total $551,178 and makeup 16% of the revenue budgeted in this category. The administrative fee is a

reimbursement to the City for staffing and resources utilized for economic development efforts and are identified

in the Corporation’s budget development. The Corporation also reimburses the City for project management

expenses related to capital projects funded by the Corporation. Administrative charges from the Sugar Land

Development Corporation are budgeted as a transfer in to the General Fund.

Fire protection fees total $2.09 million and represent 59% of charges for service. Fire protection fees are paid by

Municipal Utility Districts (MUDs) within the City’s extraterritorial jurisdiction (ETJ) and by Fort Bend County for

areas outside the City but served by the Sugar Land Fire Department. Fire fees are adjusted each September by the

CPI index as outlined in the fire protection agreement between the City and the districts.

Park fees total $513,424 and represent 14.5% of charges for services. Park fees are generated by facility usage

cards, facility rentals, leisure classes, senior programs and camp programs.

Other charges for services include false alarm charges, hazardous materials responses, and sale of property. With

the exception of administrative fees, charges for service are budgeted based on historic collections, with growth

factors included where appropriate.

Utility Charges for Service

Utility charges for service are anticipated to generate $35.68 million in FY14. The City charges fees for the provision

of water and wastewater services to residents and businesses located within the City. Customers are charged a

base rate for water and wastewater, depending on the size of the meter installed, and a volume fee based on

metered consumption. Volumetric revenues are budgeted based on estimated water consumption of 5.42 billion

gallons for water and 3.09 billion gallons for wastewater. The FY14 budget includes no change in water and

wastewater rates from current levels.

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Surface Water Charges for Service

Surface Water charges for service are anticipated to generate $4.07 million in FY14. Groundwater Reduction Plan

(GRP) pumpage fees are established by ordinance by City Council. The FY14 budget includes an increase to the GRP

pumpage fee from $1.50 to $1.75 per 1,000 gallons of groundwater produced. If approved, the increase would be

effective January 1, 2014. City customers are charged a separate fee on their utility bill for surface water charges

that is based on billed water consumption. The Utility Fund transfers the surface water fees to the Surface Water

Fund. City customers pay the full GRP rate of $1.75, plus an additional $0.27 that accounts for water loss in the

system, for a total of $1.88 per 1,000 gallons billed. For City customers, the increase in the surface water fee is a

3.2% increase to the overall utility bill that includes water, wastewater and surface water charges.

Airport Charges for Service

Charges for service at the Airport are anticipated to total $19.02 million. Budgeted fuel sales of $17.77 million

represent estimated fuel sales of 3.13 million gallons. Aviation fuel is sold at cost plus markup. The markup on fuel

is the Airport’s primary source of income other than lease revenues. The remaining charges for service are derived

from hangar and land leases, catering services, customs fees, fuel additive sales, and rental car fees. Fuel estimates

are based on historic monthly fuel sales, with some growth anticipated due to expanded international marketing of

the airport. Other fees are budgeted based on historic collections.

Solid Waste Charges for Service

Charges for service in the Solid Waste Fund are anticipated to total $5.47 million. The City contracts solid waste

service and provides twice weekly automated trash collection and weekly automated recycling. Residents currently

pay $16.00 per month for this service. Effective January 1, 2014, the new rate will increase to $16.40 per month.

The budget anticipates 26,340 households served during the fiscal year.

Bond Proceeds

Bond proceeds represent 15% of total revenues for the City at $30.96 million. The City anticipates $15.10 million in

new debt for FY14 General CIP Projects as well as $15.65 million for Utility CIP projects.

Miscellaneous Revenues

Miscellaneous revenues represent the remaining 9% of total revenues at $19.18 million. Miscellaneous revenues

include licenses and permits, fines and forfeitures, developer fees, contributions toward insurance premiums,

interest income and intergovernmental revenues such as grants.

Expenditures by Type The FY14 budget totals $207.57 million (excluding

inter-fund transfers). The chart to the right

illustrates expenditures by type.

General Government expenditures represent 9%

of overall expenditures at $18.51 million. General

Government expenditures are for administrative

functions within the City, including City

Management, City Secretary, City Attorney,

Human Resources, Information Technology,

Communication, Strategic Projects & IGR, Budget

& Research, Emergency Management, Economic

Development, Tourism and Fiscal Services.

General Gov't

9% Community Services

9%

Public Safety 15%

Debt Service 18%

Construction 18%

Utility Services

12%

Airport Services

9%

Other 10%

Expenditures by Type

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Community Services expenditures represent 9% of total expenditures at $18.15 million. Community Services

expenditures include Parks, Public Works and Community Development- including Permits, Planning & Engineering.

Services provided include: park and recreation activities and facilities, right of way maintenance, streetlights,

streets, sidewalks, traffic signals, and drainage maintenance, code enforcement, engineering, planning, permits &

inspections and animal services, among others.

Public Safety expenditures represent 15% of total expenditures at $31.71 million and include the Police and Fire

Departments and public safety dispatch.

Debt Service represents 18% of total expenditures at $37.97 million and includes principal and interest payments

on debt issued through bonds, lease purchases, and other instruments. The City, through debt issued directly and

debt assumed from MUDs, has 32 current issues including Property Tax-backed, Utility, Airport, Surface Water and

Corporation debt. A portion of the tax rate is directed to the Debt Service Fund to meet debt backed by taxes.

Outstanding debt for Utilities and Airport is paid through user fees. Debt from the Corporations is repaid from sales

tax collections from the SLDC and SL4B. Surface Water debt is paid from GRP pumpage fees.

Construction represents 18% of total expenditures at $37.85 million. Construction expenditures are related to

capital improvement projects within the City. Capital projects are funded from sales tax from the City and economic

development corporations, system revenues from utilities and airport, grants, inter-local funding and debt. Project

types include parks, streets, drainage, traffic, municipal, airport, water, wastewater and surface water.

Utility Services represent 12% of total expenditures at $25.05 million. Utility Services expenditures are related to

the operations, maintenance, and repair of water and wastewater infrastructure, as well as sanitation and recycling

services. Utility services also include expenses related to surface water conversion.

Airport Services represent 9% of total expenditures at $17.88 million. The fixed based operator at the airport is

Global Select, which provides fuel and aviation customer services.

Other expenditures represent 10% of expenditures at $20.44 million and include insurance coverage, economic

development incentives, capital replacement, sales tax rebates, and property tax rebates to in-City MUDs.

Expenditures by Fund The narrative below provides a summary on how funds are appropriated within key operating funds. A detailed

explanation of expenditures within all funds can be found in the financial section of this document.

Debt Service Fund

The budget in the Debt Service Fund, excluding inter-fund transfers, totals $18.18.73 million. Expenditures include

$17.11 million in debt service payments and fiscal fees. The budget also includes $1.69 million in property tax

rebates to in-city MUDs. Ending fund balance of $3.17 million is above the policy requirement of 10% of debt

service requirements.

General Fund

The General Fund operating budget, excluding inter-fund transfers, totals $69.06 million. The FY14 budget includes

the implementation of the Emergency Medical Service Transport, replacement of Fire Engine 5, implementation of

an Information Technology Strategic Plan, and funding for street rehabilitation and maintenance. The budget also

includes a 3% merit pool for employees effective in January 2014. Five new full-time equivalent positions are

added in the budget including two full time positions for Public Safety Dispatchers, and one full time position for a

Battalion Chief for EMS. A total of 1.5 FTEs are included in FY14 as a result of the part-time positions of Accounts

Payable Specialist, Recreation Specialist, and Veterinary Technician being upgraded to full-time employees. An

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additional 0.5 FTE is included in FY14 for the Environmental Services Inspector, which is shared equally between the

General Fund and Solid Waste Fund.

The General Fund budget draws down fund balance by $2.54 million to fund non-recurring expenditures. Analysis

shows the budget is structurally balanced (recurring revenues cover recurring expenditures). Anticipated FY14

ending fund balance in the General Fund is $15.46 million, which higher than the policy requirement of three

months of recurring operating expenditures.

Capital Improvement Program

The 2014-2018 capital improvement program totals $267.51 million. Of this total, $37.85 million in projects are

funded in the FY14 budget. Municipal projects make up the majority of the distribution at 22.7%, followed by

Wastewater projects at 19.8%. Drainage projects represent 19.1% and Water projects 15.5%. Street projects

represent 8.9% while Parks, Traffic, and Airport projects combine to represent 14% of the approved project budgets

for the FY14 CIP.

Funding for the FY14 CIP consists of $3.04 million in pay-as-you-go funding, $14.85 million in certificates of

obligation, $150,000 from the Sugar Land Development Corporation, $1.01 million from the Sugar Land 4B

Corporation, $294,000 in airport pay-as-you-go funding, $1.50 million in system revenues, $15.64 million from

revenue bonds, and $1.36 million from other funding sources. Other funding sources include CIP fund balance and

CDBG funds.

Water Utility Fund

The Water Utility Fund budget totals $21.99 million, excluding CIP projects and inter-fund transfers. The fund

includes a Water Quality Technician that will perform grease trap inspections and wastewater sampling for

environmental compliance. A drawdown in cash equivalents of $1.54 million is anticipated for the fiscal year. The

FY14 budgeted ending cash equivalent totals $7.19 million and exceeds the 25% cash operating reserve

requirement.

Surface Water Fund

The Surface Water Fund budget, excluding CIP projects and inter-fund transfers, totals $14.12 million. The Surface

Water Treatment Plant is planned to open in September 2013. The fund includes seven new positions in FY14 in

anticipation of the plant’s opening. These positions have been included in the long-range plan for SWTP over the

last several years and include one General Maintenance Worker II, two Lead Operators, one Mechanic and three

Utility Operators. The Surface Water Fund is supported by pumpage fees paid by all participants in the City’s

groundwater reduction plan. The FY14 budgeted ending balance of $8.56 million exceeds the 50% general purpose

reserve.

Airport Fund

The Airport Fund budget totals $19.24 million excluding CIP projects and inter-fund transfers. The airport budget is

increasing in FY14 due to an increase in fuel sales, both in volume and the cost of fuel. The increase is offset by

anticipated higher revenues from fuel sales. Capital Projects are funded at $294,000 in FY14 for the construction

and relocation of a Parallel Taxiway. The fund anticipates a drawdown in cash equivalents of $470,686. The FY14

budgeted ending balance of $2.08 million is above the policy requirement of 25% of operating expenditures.

Solid Waste Fund

The Solid Waste Fund operating budget totals $5.22 million, excluding inter-fund transfers, and includes contracted

residential solid waste collection and 2.0 FTEs to provide services and monitor the contract. An additional 0.5 FTE is

included to assist with contractual monitoring. Through contracted services, the City provides twice weekly

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automated trash collection and once weekly automated recycling. The ending balance in the fund is anticipated to

be $57,887. The fund has no minimum fund balance per policy.

Sugar Land Development Corporation

The FY14 budget for SLDC totals $3.81 million. The budget includes operating expenditures for the Economic

Development program and staffing, contractual services with the City for support services, and capital projects

management. Debt service payments are budgeted at $958,255 for outstanding debt issues. The FY14 budgeted

ending balance of $6.16 million is over the policy requirement of 10% of budgeted sales tax collections.

Sugar Land 4B Corporation

The FY14 budget for SL4B totals $5.64 million. The budget includes operating expenditures for the Economic

Development program and staffing, contractual services with the City for support services, and capital projects

management. Debt service payments are budgeted at $3.35 million for outstanding debt issues. The FY14 budgeted

ending balance of $685,244 is over the policy requirement of 10% of budgeted sales tax collections.

Tourism Fund

Expenditures in the Tourism Fund total $1.75 million, excluding inter-fund transfers. This includes funding for

destination product initiatives, the tourism program, and TIRZ related infrastructure. The fund supports $664,214 in

debt service payments for the Sugar Land Conference Center. The fund has a projected ending fund balance of

$2.25 million and no minimum fund balance requirement.

Employee Compensation

The City offers a competitive benefit package to employees, including medical and dental coverage and

contributions toward dependent coverage. The City participates in the Texas Municipal Retirement System (TMRS);

employees contribute 7% of their gross pay and the City matches employee contributions 2 to 1, and employees are

vested after five years of service. Because the City does not participate in Social Security, the City has chosen the

highest level plan offered by TMRS. The contribution rate to TMRS for the City changes each year and is based on

actuarial analysis of funding needs in the City’s plan. The City’s contribution rate to TMRS is changing from 15.2%

for 2013 to 15.56% in 2014 (effective January 1, 2014).

In 2012, the City moved from a fully insured health insurance model to a self-funded model to help reduce costs

and stabilize premiums. The anticipated increase in FY14 is 4.95%. The increase will be effective January, 1, 2014.

Stability in TMRS and medical plan costs has allowed the City to plan for merit increases for qualified employees.

The budget includes funding for an average 3% merit increase for employees based on performance evaluations.

The City does not provide cost of living increases, so the merit increases are the only time employees see an

increase to their pay, except for internal promotions and salary structure maintenance. Merit increases are a key

factor in staying competitive in the market and retaining quality employees. The merit increases will be effective in

January 2014.

The compensation philosophy adopted by City Council addresses the benefits burden as it relates to total

compensation. Based on the adopted policy, benefits should not exceed a percentage of total employee

compensation comparable to private sector employees. In FY14, the benefit burden is within the limits established

by the Council policy at 28.63% of total compensation.

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CITY OF SUGAR LANDSUMMARY OF ALL FUNDSFISCAL YEAR 2014 BUDGET

Governmental Funds Enterprise FundsGeneral Debt Capital Utility Airport Surf. Water Solid

Description Fund Service Projects Total Total Total WasteREVENUES:Property Taxes 17,650,900$ 13,788,900$ ‐$ ‐$ ‐$ Sales Tax 33,515,500 ‐ ‐ ‐ Other Taxes 5,695,655 ‐ ‐ ‐ Licenses & Permits 2,637,853 ‐ ‐ ‐ Charges for Service 3,542,548 35,688,449 19,023,279 4,067,638 5,472,560 Fines & Forfeitures 2,158,781 ‐ ‐ ‐ Interest Income 102,500 12,148 25,000 55,000 7,000 25,000 Intergovernmental 88,000 ‐ 50,000 ‐ Developer Fees 472,500 632,589 ‐ ‐ Miscellaneous 2,297,938 200,000 453,002 451,990 ‐ Bond Proceeds 15,003,000 15,957,900 ‐ ‐ Contributions 70,000 ‐ ‐ ‐ Total Revenues 67,759,675 14,273,548 15,228,000 52,786,940 19,532,269 4,092,638 5,472,560 Transfers from Other Funds 4,553,056 4,040,582 4,301,590 18,175,542 467,440 9,888,565 ‐ Total Available Resources 72,312,731 18,314,130 19,529,590 70,962,482 19,999,709 13,981,203 5,472,560

EXPENDITURES:General Government 11,310,275 ‐ ‐ ‐ Business & Intergovernmental ‐ ‐ ‐ Support Services 3,079,786 ‐ ‐ ‐ Fiscal Services 1,942,436 ‐ ‐ ‐ Public Works 7,077,526 ‐ ‐ ‐ Parks & Recreation 5,754,160 ‐ ‐ ‐ Community Development 5,126,033 ‐ ‐ ‐ Police Department 18,231,564 ‐ ‐ ‐ Fire Department 12,976,923 ‐ ‐ ‐ Debt Service 492,877 17,107,642 8,966,769 1,102,717 5,992,688 Other (371,622) 18,000 156,450 291,912 252,592 1,035,000 Construction 19,257,300 17,145,000 294,000 ‐ Utility Services 12,735,957 ‐ 7,094,495 5,218,981 Airport Services ‐ 17,886,507 ‐ Insurance Coverage ‐ ‐ ‐ Equipment Replacement ‐ ‐ ‐ Rebates & Assignments 3,436,729 1,605,450 ‐ ‐ ‐ Total Expenditures 69,056,687 18,731,092 19,413,750 39,139,638 19,535,816 14,122,183 5,218,981 Transfers to Other Funds 5,795,237 54,400 202,000 33,343,731 936,879 1,497,093 266,172 Total Expenditures & Transfers 74,851,924 18,785,492 19,615,750 72,483,369 20,472,695 15,619,276 5,485,153

Revenues over (under) Expenditures (2,539,193) (471,362) (86,160) (1,520,887) (472,986) (1,638,073) (12,593)

BEG. BUDGET BALANCE 18,003,854 3,171,192 123,839 15,027,606 3,393,481 10,202,238 70,480 Reserved ‐ ‐ ‐ Reserved for Debt Service (5,501,968) (889,698) ‐ Accrued Sales Tax ‐ ‐ ‐ END BUDGET BALANCE 15,464,661$ 2,699,830$ 37,679$ 8,004,751$ 2,030,797$ 8,564,165$ 57,887$

20


DescriptionREVENUES:Property TaxesSales TaxOther TaxesLicenses & PermitsCharges for ServiceFines & ForfeituresInterest IncomeIntergovernmentalDeveloper FeesMiscellaneousBond ProceedsContributionsTotal RevenuesTransfers from Other FundsTotal Available Resources

EXPENDITURES:General GovernmentBusiness & IntergovernmentalSupport ServicesFiscal ServicesPublic WorksParks & RecreationCommunity DevelopmentPolice DepartmentFire DepartmentDebt ServiceOtherConstructionUtility ServicesAirport ServicesInsurance CoverageEquipment ReplacementRebates & AssignmentsTotal ExpendituresTransfers to Other FundsTotal Expenditures & Transfers

Revenues over (under) Expenditures

BEG. BUDGET BALANCEReservedReserved for Debt ServiceAccrued Sales TaxEND BUDGET BALANCE

Internal Service FundsFleet Hi‐ Tech Employee Court Court Replace. Replace. Benefits Tourism Security Tech. CDBG

2,056,400

51,300 68,400

3,012 1,890 5,000 100 250 448,805

187,500

7,002,095 190,512 ‐ 7,003,985 2,061,400 51,400 68,650 448,805 931,660 1,470,699 ‐ ‐ ‐ ‐ ‐ 1,122,172 1,470,699 7,003,985 2,061,400 51,400 68,650 448,805

848,061

73,554 145,211

190,805

490,200 900,000 258,000

6,495,077 1,013,291 1,425,651

1,013,291 1,425,651 6,985,277 1,748,061 73,554 145,211 448,805 ‐ ‐ ‐ 664,214 ‐ ‐ ‐

1,013,291 1,425,651 6,985,277 2,412,275 73,554 145,211 448,805

108,881 45,048 18,708 (350,875) (22,154) (76,561) ‐

1,716,009 797,540 1,489,787 2,605,539 33,030 85,069 ‐ (1,250,000)

1,824,890$ 842,588$ 258,495$ 2,254,664$ 10,876$ 8,508$ ‐$

Special Revenue Funds

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DescriptionREVENUES:Property TaxesSales TaxOther TaxesLicenses & PermitsCharges for ServiceFines & ForfeituresInterest IncomeIntergovernmentalDeveloper FeesMiscellaneousBond ProceedsContributionsTotal RevenuesTransfers from Other FundsTotal Available Resources

EXPENDITURES:General GovernmentBusiness & IntergovernmentalSupport ServicesFiscal ServicesPublic WorksParks & RecreationCommunity DevelopmentPolice DepartmentFire DepartmentDebt ServiceOtherConstructionUtility ServicesAirport ServicesInsurance CoverageEquipment ReplacementRebates & AssignmentsTotal ExpendituresTransfers to Other FundsTotal Expenditures & Transfers

Revenues over (under) Expenditures

BEG. BUDGET BALANCEReservedReserved for Debt ServiceAccrued Sales TaxEND BUDGET BALANCE

TotalLaw Enf. Photo SPA Debt Total FY14Funds Traffic Enf Reduction City SLDC SL4B Budget

31,439,800$ 31,439,800$ 33,515,500 5,585,909 5,585,909 44,687,318 7,752,055 7,752,055 2,637,853 2,637,853

919,206 68,833,380 68,833,380 1,058,400 3,217,181 3,217,181

6,675 243,575 11,454 11,102 266,131 586,805 586,805

1,105,089 1,105,089 3,590,430 500,000 234,031 4,324,461 30,960,900 30,960,900 7,072,095 7,072,095

‐ 1,058,400 925,881 190,954,663 6,097,363 5,831,042 202,883,068 ‐ ‐ 467,955 44,297,089 ‐ ‐ 44,297,089 ‐ 1,058,400 1,393,836 235,251,752 6,097,363 5,831,042 247,180,157

12,158,336 597,018 511,621 13,266,975 ‐ ‐

3,079,786 3,079,786 2,161,201 2,161,201 7,077,526 7,077,526 5,754,160 5,754,160 5,316,838 5,316,838

499,990 18,731,554 18,731,554 12,976,923 12,976,923 33,662,693 958,255 3,348,206 37,969,154

558,410 2,430,942 2,253,620 1,780,260 6,464,822 37,854,300 37,854,300 25,049,433 25,049,433 17,886,507 17,886,507 6,495,077 6,495,077 2,438,942 2,438,942 5,042,179 5,042,179

‐ 1,058,400 ‐ 198,116,397 3,808,893 5,640,087 207,565,377 ‐ 42,759,726 525,383 1,012,000 44,297,109

‐ 1,058,400 ‐ 240,876,123 4,334,276 6,652,087 251,862,486 ‐

‐ ‐ 1,393,836 (5,624,371) 1,763,087 (821,045) (4,682,329) ‐

30,509 ‐ 4,681,539 61,431,712 6,163,470 5,771,911 73,367,093 (1,250,000) (1,250,000) (11,893,634) (1,452,698) (3,386,450) (16,732,782)

‐ (879,172) (879,172) (1,758,344) 30,509$ ‐$ 6,075,375$ 42,663,707$ 5,594,687$ 685,244$ 48,943,638$

Special Revenue Funds Component Units

22

City of Sugar Land Organizational Chart

As of October 1, 2013

Citizens

City Council

City Manager

Assistant

City Manager

Public Works & Solid Waste

Parks & Recreation

Engineering

Water Utilities & Surface Water

Assistant City Manager

Emergency Management

Public Safety

Dispatch

Police Department

Fire Department

Airport

Municipal

Court

Executive Director Community

Development

Planning &

Code Services

Transp. & LR Planning

Permits & Inspections

Community Development

Executive Director Management

Services

Human

Resources

Budget & Research

Accounting

Information Technology

Support

Services

City Attorney Public

Communications

City Secretary Economic

Development

Strategic Planning & IGR

23

City Overview

Location and Background Located 20 miles southwest of Houston, Sugar Land is a full-service

municipality providing police and fire protection, water/wastewater

utilities, solid waste collection, curbside recycling, a regional airport,

parks and recreation, public works, planning/zoning and other services.

Founded as a sugar plantation in the mid 1860s, Sugar Land was a busy

commercial center for nearly 100 years. Formally incorporated in 1959,

the City has grown more rapidly than anyone could imagine. Today, the

City has a population of about 85,000 and is nationally recognized for

its low crime and excellent opportunities afforded to residents.

City Management Sugar Land operates under the Council-Manager form of government. This system of local government combines

the political leadership of elected officials in the form of a Council with the managerial experience of an appointed

City Manager. The City Manager acts as the chief executive officer of the government and carries out policy and

administers City programs. All department heads report to the City Manager, with the exception of the Municipal

Court Judge, who is also appointed by Council. In May 2011, a Charter Election was held that added the City

Secretary and City Attorney to the list of positions that require City Council approval for any employment action.

Local Economy Sugar Land benefits from its proximity to Houston and the economic opportunities afforded by a large metropolitan

area. Supported by strong regional infrastructure, the Sugar Land economy is diverse and offers strong corporate

vitality. The table below contains a list of top private sector employers by number of employees.

EMPLOYER TYPE OF BUSINESS Fluor Services Schlumberger Methodist Sugar Land Hospital Nalco Champion, an Ecolab Company St Luke’s Hospital Baker Hughes Memorial Hermann Tramontina USA Fairfield Nodal National Oilwell Varco Money Management Int’l UnitedHealth Group / OptumRx CSM Bakery Products Minute Maid Noble Drilling Services, Inc.

Engineering / Procurement / Construction Oilfield Services / Technology Hospital Petrochemicals Hospital Specialty Polymers Hospital Manufacturing / Kitchen Wares Seismic Data Systems Oil Field Equipment (Wholesale) Financial Services Pharmacy Call Center Food Manufacturing Corporate Headquarters (Food/Drink) Offshore Drilling

ROLE OF CITY COUNCIL ROLE OF CITY MANAGER Appoint City Manager Establish City Policy Legislative Body Approve Budget

Manage Day-to-Day Affairs Enforce Laws and Ordinances Prepare Budget Make Recommendation to Council on General Welfare of the City

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Economic Development Activity The City has seen a return of economic growth to the area. Residential development continues, although at a

slower pace than seen several years ago. Commercial growth opportunities are presenting themselves, either

through the economic development efforts or on their own. Team Industrial Services corporate headquarters and

Optum RX, a business division of United Healthcare, both relocated to Sugar Land bringing over 400 jobs combined.

Costco Wholesale Corporation also opened a new store along U.S. Highway 59 in July 2013. Although some of the

commercial growth is new to the area, an equally important growth segment has been expansions of existing

businesses. In July 2013, Noble drilling Services added a state-of-the-art training facility, 29,146 square feet of

leased space, in the Sugar Land Business Park.

Some key economic development projects are coming to fruition at this time that will impact the City over the next

year. Texas Instruments Incorporated will construct an office facility in Telfair to be completed in early 2014. The

facility will be constructed on a 7-acre site, a capital investment of $35 million, and bring more than 375 jobs to

Sugar Land. An agreement has also been approved to construct a 6,500-seat concert and performing arts facility in

Sugar Land. The future public/private partnership will be located on a 38-acre site near the intersection of U.S.

Highway 59 and University Boulevard, an area that will include a larger mixed-use development within an area of

Telfair identified for commercial, office, and entertainment purposes.

Diversity Sugar Land is a diverse community and was recognized as the nation’s first Community of Respect® by the Anti-

Defamation League in 2007. The Community of Respect® program is an initiative to help governments, non-profit

organizations, faith institutions, businesses, and institutes of higher learning create an atmosphere that rejects

prejudice and fosters respect and an appreciation for diversity. After being named the nation’s first “Community of

Respect,” the Anti-Defamation League (ADL) has recognized Sugar Land multiple times for its ongoing commitment

to foster an inclusive and respectful community.

The City’s racial breakdown as reported by the

2010 census is shown at right. Actual data reported

shows White 52%, Asian 35.5% and Black or

African American 7.4%.

*According to the US Census, persons who identify

themselves as Hispanic or Latino can be of any

race; reported figures show 10.6% Hispanic or

Latino, the figures shown in the chart have been

adjusted accordingly to ensure totals add to 100%.

White 47%

Asian 32%

Hispanic or Latino*

9%

Black or African

American 7%

Other 5%

Ethnicity

25

City Profile

FY11 FY12 FY13 FY14

Population (January 1st estimate) 84,511 84,511 84,511 84,618

Square Miles 32.73 32.73 32.73 32.73

Acres 22,868 22,868 22,868 22,868

Budgeted Full Time Employees 660 642 656 676

Total Operating Budget $282.2 M $182.1 M $181.6 M $207.6 M

Fire Protection

Number of Stations 7 7 7 7

Certified Firefighters 103 103 103 104

Calls for Service 6,293 6,671 7,250 7,670

Police Protection

Number of Stations 1 1 1 1

Certified Police Officers 149 149 149 149

Calls for Service 23,730 24,162 25,611 26,123

Parks & Recreation

Number of Parks 23 23 24 24

Park Acreage 695 695 807 807

Swimming Pools 1 1 1 1

Community Centers 6 6 6 6

Recreation Centers 1 1 1 1

Special Events Offered 17 18 18 18

Public Works

Lane Miles of Streets* 912 912 782 782

Linear Miles of Sidewalk 432 432 500 500

Miles of Storm Sewer/Open Ditch* 246 246 338 338

Traffic Signals Maintained 78 78 81 85

City Facilities 60 60 61 61

*For FY10-12, amount includes ETJ, FY13-14 does not

Utilities

Equivalent Single Family Connections 41,350 42,350 42,913 43,663

Water Produced (Million Gallons) 6,700 6,208 7,201 6,800

Wastewater Treated (Million Gallons) 2,874 3,304 3,014 3,320


Building Permits Issued 8,000 8,000 7,300 7,300

Airport

Gallons of Fuel Sold 2,681,407 2,406,576 3,063,813 3,134,281

Aircraft Served 13,023 13,502 13,772 14,185

26

bguinn

Text Box

BudgetProcess&Calendar

The fiscal year begins October 1 of each year and ends on the following September 30. Each fiscal year City Council adopts a fiscal plan containing the goals established by Council and the City Manager’s plan to meet those goals. The plan adopted is comprised of the Operating Budget and the Capital Improvement Program. A calendar that outlines the budget process is included on the following page.

OperatingBudgetPrior to the official budget kickoff, the Budget Office prepares a preliminary estimate of revenues and expenditures for the major funds, including the General, Debt Service, Utility and Airport funds. This overview is prepared to allow the City Manager to assess the overall financial position of the City, including potential revenue shortfalls or excess funding capacity for enhanced services. The City Manager shares this information with City Council at a planning retreat where City Council establishes priorities for the upcoming fiscal year. The City Manager prepares a budget message from this information that instructs the departments on how to prepare the budget for the upcoming fiscal year.

In April, the budget process officially begins with the City Manager delivering the budget message and departments developing line‐item operating budgets based on the message delivered by the City Manager. The expectation for departments is to formulate a budget that will allow services to be maintained at current levels. Requests that enhance or expand services are requested in conjunction with the preparation of the operating budget. Supplemental budget requests are based on items identified through Council priorities, departmental business plans, and state or federal mandates. The operating budget and enhancement submissions are due to the Budget Office in early May and are reviewed for completeness and to ensure submissions are consistent with the City Manager’s message.

City management meets with departments in June to review proposed operating budgets and supplemental requests. Requests are prioritized by the City Manager and recommended to City Council for funding based on available resources. The budget is filed with City Council in July and reviewed in detail through a series of budget workshops in August. Changes that result from the Council workshops are incorporated into the final budget. The final budget is adopted by Council no later than the 25th of September in accordance with the City charter. Annual operating budgets are adopted for the General Fund, Special Revenue Funds, Internal Service Funds, Component Units, and Debt Service Fund. The budgets for the Enterprise Funds are adopted as a financial plan and guide. After Council adoption, the Annual Budget is compiled and distributed.

CapitalImprovementProgramAnnually, City staff prepares and files a Five‐Year Capital Improvement Program (CIP). The CIP identifies needed capital improvements and financing for those improvements. The first year of the plan is incorporated into the annual budget to appropriate funds for the specific projects. The five‐year CIP is fiscally constrained for all years. Cost estimates for years two through five of the five‐year CIP are for planning purposes only, and are used in conjunction with the five‐year financial plan of the City to determine potential project funding sources or to adjust project timing based on affordability.

CIP development is a continuous process that utilizes a “project ready” approach whereby the scope and budget for a proposed improvement are clearly defined prior to the appropriation of funds for construction. It is a multi‐year process and may extend over a one to three year period. Each year future projects are re‐evaluated and projects may be added, moved back or forward, depending on the current assessment of priority and project readiness. Project information is solicited from all departments, City Council, boards and commissions, and homeowner

27

associations. Staff also maintains a list of potential projects from citizen requests received either by telephone, e‐mail or through youth sports leagues. A recommended project list is compiled, prioritized by year, and cost estimates assigned.

Funding sources and levels are identified and developed by the Budget Office. The CIP has several layers of review by project managers, the Planning and Zoning Commission, and the City Manager. The recommended five‐year CIP is filed with the annual budget in July. City Council reviews the draft and any changes requested by Council are incorporated into the final document. A summary for the final five‐year CIP is then prepared and filed with the annual budget for Council consideration and approval. Upon Council adoption, the five‐year CIP document is reproduced and distributed for implementation of the program.

FY14BudgetCalendarFebruary CIP kick‐off

Cost allocation plan updated

March CIP projects developed Budget & Research prepares preliminary five‐year forecast City Manager develops budget message for departments Budget & Research develops instructions and forms for budget preparation City Council retreat – define priorities for FY14

April Budget kick‐off meeting: Department Heads - Introduce and distribute budget instructions - Line item allocation of budgets by departments - Departments prepare requests for additional funds

Budget & Research develops preliminary funding plan for five‐year CIP

May Review list of CIP projects with Planning & Zoning Budget & Research reviews departmental budget submissions Review list of CIP projects with City Council

June City Management reviews departmental budget submissions

City Manager balances the budget that will be recommended to City Council CIP project list finalized and fiscally constrained Five‐year financial forecast finalized

July Prepares proposed budget document, transmittal letter and budget presentations

July 23: Proposed budget filed with City Council Certified tax roll due from Central Appraisal District

August Council budget workshops (Thursday mornings)

Public hearing on budget Publish effective tax rate calculations

September

Final FY13 Budget Amendment Ordinance City Council adoption of

o FY14 budget, five‐year CIP, compensation plan, tax rate, fee ordinance

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LegalRequirements&BasisofBudgeting

LegalRequirementsfortheBudgetPursuant to Section 6.03 of the Charter, the City Manager is responsible for preparing an annual budget for submission to City Council for review, consideration and revision. Both a letter describing the proposed new budget, as well as a balanced budget for the forthcoming fiscal year, are required to be filed not later than sixty days prior to the end of the current fiscal year. The budget must set forth the funding for services, programs, and activities of the various City departments. It must also include a multi‐year capital improvement program (CIP) and a current year CIP budget.

The City Secretary posts a notice at City Hall and publishes the notice in the official newspaper stating the times and places where copies of the message and budget are available for public review. One public hearing must be held on the budget at least 14 days after it is filed and before the budget is adopted. The budget is adopted by ordinance with one reading prior to the 25th day of the last month of the fiscal year, as required by the City charter.

Budgets are approved by City Council at the fund level. Revenues approved through the budget process are estimates. During the fiscal year, the City Manager may transfer balances allocated by the budget between departments or activities within the total appropriation without City Council approval. City Council typically approves budget amendments during the year to reflect increases to expenditures as a result of grants received or to allocate from fund balances at the request of staff. Expenditure of funds that would exceed the total appropriation by fund requires City Council approval of an ordinance to amend the budget for that fund. At year end, as part of the next year’s budget process, the current fiscal year budget is amended by ordinance to capture any budget amendments that have been approved by City Council during the year. Capital Project funds are appropriated on a project length and as projects are completed and closed out staff may request a budget amendment to utilize those funds for other projects as appropriate. Capital projects are appropriated at the project level and any increase to the project budget requires a Council budget amendment.

At the end of each fiscal year, any unencumbered appropriation balances lapse or revert to the undesignated fund balance, except for capital projects, which are adopted using project length rather than fiscal year. Open encumbrances carry forward to the next fiscal year, but the budget is not adjusted to reflect those encumbrances. After the close of the fiscal year, Council has an opportunity to approve a budget ordinance that reflects an amendment of the current year’s budget for carry‐over funding for non‐recurring items that were budgeted but not completed during the prior fiscal year.

FinancialManagementPolicyStatementsThe Financial Management Policy Statements are approved through City Council Resolution. These statements give general guidelines for the development of fiscal policies to ensure that financial resources are available to meet present and future needs of citizens and aid in fulfilling the goal of a responsible city government. These policy statements are reviewed semi‐annually and recommended revisions are discussed with City Council. The statements were last updated and approved by City Council Resolution in May 2012. A copy of the current policy statements can be found at the end of this document.

BudgetBasisofPresentationGovernmentalandFiduciaryFundsGovernmental fund budgets are prepared using the modified accrual basis. Revenues are budgeted when they are anticipated to be received and expenditures are budgeted in the period in which the liability is incurred, which is in accordance with Generally Accepted Accounting Principles (GAAP). The fund balance approach of governmental

29

funds or working capital approach can be identified as current assets less current liabilities. Governmental funds budget capital outlays as expenditures, but do not budget for non‐cash expenditures such as accruals for sick and vacation liabilities and depreciation.

Budgetary fund balances differ from the GAAP basis fund balances as they are adjusted for year‐end accruals of revenues such as sales tax, franchise fees, and hotel occupancy taxes. Although these revenues are measurable at fiscal year‐end, they are not available to fund obligations of the City on a cash basis. As such, the budget will show a different fund balance than the Comprehensive Annual Financial Report (CAFR). The budget also does not differentiate between the various categories of fund balance under GASB 54.

ProprietaryandInternalServiceFundsAll proprietary funds are budgeted using a flow of economic resources, which is similar to the accrual basis of accounting, with exceptions listed below. Available balances are determined using the cash equivalent approach. The cash equivalent approach is defined as: cash + investments + accounts receivable + prepaid expenses ‐ accounts payable = cash equivalents available.

• Revenues are budgeted in the period they are earned and measurable. • Expenses are budgeted in the period in which the liability was incurred. • Depreciation of assets is not budgeted. • Expenses to recognize unfunded liabilities are not budgeted. • Capital outlay is budgeted as an expense in the year purchased. • Principal payments are budgeted as an expense rather than a reduction to the liability. • Bond proceeds are budgeted as revenue in the enterprise operating fund and transferred to the enterprise capital projects fund.

BasisofAccountingThe governmental fund financial statements are presented on a current financial resources measurement focus and modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Measurable means that the amount of the transaction can be determined and available means collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Revenues susceptible to accrual include sales and use taxes, hotel occupancy taxes, franchise fees, charges for services and interest on temporary investments. Property tax levies collected after the fiscal year‐end, which would be available to finance current operations, are immaterial and remain deferred. Other receipts become measurable and available when cash is received by the government and are recognized as revenue at that time.

All proprietary funds are accounted for on an accrual basis. Revenues are recognized in the period in which they are earned and become measurable, and expenses in the period in which they are incurred and measurable. However, accruals are made only at fiscal year‐end. Proprietary funds also record depreciation and amortization at fiscal year‐end. Payment of principal is recorded as a reduction to the long‐term liability at fiscal year‐end.

FinancialStructureThe accounts of the City are organized on the basis of funds and account groups, each of which operates separately and independently. The operations of each fund are accounted for with a separate set of self‐balancing accounts comprised of assets, liabilities, fund equity, revenues, and expenditures or expenses. Following is a description of the fund types and funds contained within each. A more detailed description of each fund can be found within the fund summary of the individual funds.

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GovernmentalFundsThe General Fund is the general operating fund and is used to account for all financial transactions not properly included in other funds.

Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The City has eleven special revenue funds: Court Security, Court Technology, Tourism, Community Development Block Grant, State Seizures Fund, Photographic Traffic Signal Enforcement, Law Enforcement Fund, three SPA Debt Reduction Funds, and Local Law Enforcement Block Grant Fund.

Debt Service Fund is used to account for the payment of interest and principal on all tax‐backed bonds and other long‐term debt not supported by enterprise funds.

Capital Projects Fund is used to account for the expenditures of resources transferred from operating funds, the sale of bonds, and other revenues for capital improvement projects. Projects are budgeted on a project length basis rather than a fiscal year basis, and funding carries over to the next fiscal year if the project is not completed.

ProprietaryFundsEnterprise Funds are used to account for services that are financed and operated in a manner similar to private business where the intent of the governing body is that the costs of providing goods and services to the general public will be financed or recovered primarily through user charges. The City operates four enterprise funds: Water, Utility, Airport, Solid Waste and Surface Water. The enterprise funds also have corresponding capital project funds.

Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost reimbursement basis. The City has three internal service funds: Fleet Replacement, High Tech Replacement, and Employee Benefits.

FiduciaryFundsComponent Units are used to account for sales tax revenues for economic development activities and expenditures associated with promoting, assisting, and enhancing economic and industrial development activities. Each component unit has a separate board of directors. The City accounts for three component units: Sugar Land Development Corporation (SLDC), Sugar Land 4B Corporation (SL4B), and Sugar Land Town Square TIRZ. The SLDC is a blended component unit and is included as a special revenue fund in the government‐wide financial statements. The TIRZ is not included in the City’s adopted budget but is included in the final document for reference.

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Goals & Vision

City Council has identified and developed five priorities to direct the City’s growth and define staff responsibilities.

This “picture” identifies priorities and challenges that the City will face in the near future. Each year the City reviews

these priorities and the progress being made. Underlying each priority are strategies for the City to strive for in the

near future. The priorities and strategies were reviewed in November 2012 and updated to provide direction to staff

in strategic planning efforts.

Although the City adopts a one-year budget, the budget implements multi-year programs and strategies that extend

programs and affect future budgets. Within each priority there are measures for City staff to achieve.

The five City mid-term priority and strategies are as follows:

Safest City in America: Feeling Safe, Rapid Response Have rapid, effective and coordinated response to an emergency – Police, Fire, EMS, Public Works

Maintain people feeling safe, secure and comfortable throughout the community

Maintain a low crime rate in Sugar Land with a high clearance rate

Develop effective public safety communications with adequate staffing and using appropriate

technology

Improve all-hazards and disaster preparedness, response and recovery through better coordination and

intergovernmental cooperation

Utilizing technology to contribute to a safe community

Responsible City Government: Financially Sound, Exceptional Service Maintain a high level of citizen satisfaction and cost-effective delivery of City Services: value for tax

dollars

Continue “championship” workforce: professional, well-trained, appropriately compensated

Have City employees serve as the primary contact with customers

Maintain financially responsible government consistent with City’s mission

City of Sugar Land – a leader in customer service and superior service

City and partners operating efficiently and as a service business

Strong Local Economy: Growing Business Investment Attract targeted businesses: national and international

Balanced tax base: commercial development and sales tax generators

Develop major business parks with class A office environment: Tract II and prison property/Newland

(300 acres)

Expand tourism: venues, marketing and number of visitors

Develop three destination activity centers-major community focal points and regional destinations:

Brazos River Park, Telfair/TIRZ #4, Imperial area

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Great Place to Live: Development, Redevelopment, Mobility, Environment Have predictable, compatible development and land uses consistent with Comprehensive Plan

Maintain adequate infrastructure and services to support growth and sustain the existing community

Revitalize/redevelop older commercial centers: appearance and business vitality

Improve mobility within Sugar Land: automobile, bicycles and walking

Strive for balanced land uses within the city (70% residential/30% commercial-land use area; 60%

residential/40% commercial-tax base)

Building Community: Diverse Cultures, Leisure, Arts Develop City facilities and venues that support community arts, events and festivals

Develop residents’ understanding of civic processes and community infrastructure

Support community events and festivals of diverse ages and cultures

Adapt to Sugar Land’s changing demographics

Expand arts throughout the community

Vision 2025 and Comprehensive PlanVision 2025 was developed through a process of community input and City Council guidance, and was formally

adopted by the City Council through Resolution 09-34 in September 2009. Vision 2025 provides long-term goals for

the ongoing development and improvement of the community.

In July 2012, the City Council adopted Ordinance No. 1851. This ordinance formally adopted an update to Chapters

1-5 of the City’s Comprehensive Plan, which incorporated Vision 2025 Goals and Objectives.

Sugar Land 2025 is a Safe, Beautiful, Inclusive, and Environmentally Responsible Community.

Sugar Land 2025 has Destination Activity Centers, Great Neighborhoods, Superior Mobility, Outstanding Cultural,

Educational, and Recreational Opportunities, and is a Regional Business Center of Excellence.

Sugar Land 2025 has Balanced Development and Redevelopment.

The Community Takes Pride in Sugar Land.

Goals and Objectives

Goal A: Safe Community

1. Safest city in the United States

2. People feeling safe, secure and comfortable at home, in the neighborhood, at the parks, in commercial

areas, and throughout the community

3. Informed citizens participating in and taking responsibility for community safety and emergency

preparedness

4. Rapid, professional and coordinated response to an emergency call for service

5. City prepared for all hazards, disaster and post-disaster recovery including coordination with local,

regional and state resources

6. Health and building codes promoting highest reasonable standards for safety

7. Adequate supply of safe drinking water meeting national and state standards

33

Goal B: Beautiful Community

1. Attractive, well-designed and well-maintained public buildings, streetscapes incorporating gateways,

public spaces and public art throughout the city

2. Attractive, well-designed and well-maintained commercial areas and buildings, including beautiful

landscapes, and appropriate signage

3. Attractive, well-maintained homes

4. Clean, well-maintained, attractive lakes and waterways, both public and private

Goal C: Inclusive Community

1. Celebrating America, such as: 4th of July, Veteran’s Day, Memorial Day, flying the flag

2. Community respecting and celebrating the history and heritage of Sugar Land, Texas, Fort Bend

County, and the United States of America

3. All family generations and cultures feeling welcome and having fun

4. Celebrating and respecting the unique international and inter-cultural community that we have

become

5. Residents informed, actively involved and participating in community and civic affairs

Goal D: Environmentally Responsible Community

1. City as a leader – model for standards, processes and operations

2. Open green spaces throughout the city

3. Effective storm water management and drainage system enhancing quality of surface water and

protecting neighborhoods

4. Quality wastewater treatment system

5. Water conservation

6. Reduced energy consumption and increased use of renewable resources

7. Convenient, easy, state-of-the-art recycling system with options and incentives

8. Developments, redevelopments and buildings incorporating the concepts of environmental sustainability

9. Improved air quality

10. Reasonable approach and balance with a “return on investments” – economic and/or community benefit

Goal E: Destination Activity Centers

1. Each destination activity center having positive image and reputation – a sense of place

2. Variety of unique quality features that define each destination activity center

3. Pedestrian-friendly activity centers connected by alternative transportation modes and trails

4. Major community focal points and regional destinations, such as: Town Center, Brazos River Park,

Entertainment District and “Imperial” Area

5. Public open space and parks for people to gather and enjoy; neighborhood to use; and to conduct

community events

6. Cultural and entertainment events making Sugar Land a regional destination

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Goal F: Great Neighborhoods

1. Strong neighborhood identity and pride

2. Renovated, modernized and well-maintained older housing stock

3. High percentage of owner occupied homes

4. Well-maintained, replaced and up to date neighborhood infrastructure: streets, utilities, sidewalks,

street lights and drainage

5. Strong, effective home owner and neighborhood associations maintaining and investing in community

common areas, streetscapes and public spaces

6. Maintaining quality neighborhoods buffered from or blended with adjacent commercial areas and

non-residential land uses

7. Residents involved in and taking responsibility for making the neighborhood a great place to live and

call home

8. Top quality community and neighborhood parks with active and passive areas

Goal G: Superior Mobility

1. Effective traffic management facilitating predictable, acceptable travel times within Sugar Land

2. Effective intra-city public transportation system linking activity centers: trolley, electric bus, monorail

3. North/south mobility with several corridors

4. Interstate and U.S. highways efficiently moving traffic through and to/from Sugar Land (U.S. 59,

Highway 6, 90A)

5. Major corporate airport for businesses and general aviation

6. Commuter transit serving to link Sugar Land to the Greater Houston Metro Area and Fort Bend County/

Southwest

7. Pedestrian-friendly community with multi-use trails network for bikes and pedestrians connecting

neighborhoods and the community

8. Well-designed, well-maintained streets, sidewalks and multi use trails

9. Relocation of freight rail through traffic

Goal H: Outstanding Cultural Arts, Educational and Recreational Opportunities

1. Brazos River Park as a regional destination with water-based activities on the river and lakes; hike and

bike trails; innovative, unique venues and activities

2. Variety of cultural art opportunities, programs and venues serving as regional destinations

3. Public art throughout the city

4. Major museums having educational significance

5. Performing Arts Center (large community and small venues) for theater, concerts and entertainment

serving as a regional destination

6. Regional, family oriented, professional sports venue

7. Major university campus serving residents, non-residents, and businesses with full range of

undergraduate, graduate and post graduate programs

8. Strong relationship and partnership between City of Sugar Land, schools, colleges, and universities

9. Recreational programs serving the community

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Goal I: Regional Business Center of Excellence

1. Targeted national and international businesses as defined in the Economic Development Plan

2. State of the art, world class infrastructure and technology to support local businesses

3. Business-friendly environment and reputation

4. Quality jobs at or above the average income in the community

5. Tract II and the Central Prison Unit property developed as major business park. Commercial areas near U.S.

59 at University Boulevard developed with a Class A office component.

6. Full service convention and conference center targeting the best second tier market

7. Major regional state-of-the-art medical and health services center serving the southwest area

8. Multiple, high-quality, full and limited service hotels for business travelers and visitors

9. Unique, “upscale” retail with upgraded products

Goal J: Balanced Development and Redevelopment

1. Balanced land use (70% residential/no less than 30% commercial, retail, office) and tax base (60%

residential/40% commercial, retail, office) within city

2. Well-designed, well-maintained city infrastructure and facilities throughout the city

3. Innovative designs meeting city’s development standards and adding value to the surrounding

neighborhoods

4. New developments and redevelopments consistent with city vision, comprehensive plan, policies and

standards

5. Upgrading or reusing older commercial areas and commercial strip centers

6. Redevelopment uses that are appropriate for different locations and proactive city policies to assist

7. Redevelopment of historic structures into creative uses to showcase the city’s history

8. High-quality and well-maintained housing stock throughout the city

9. Mixed-use developments with commercial and multi-family residential elements

Goal K: Community Pride in Sugar Land

1. City working in partnership with residents, community organizations, businesses and other government

entities

2. People want to live here, businesses want to invest here

3. Successful community events and celebrations bringing people together

4. Being “A Community of Excellence” and recognized as such

5. Residents engaged in civic and community affairs

6. Businesses and residents volunteering and contributing to the Sugar Land community

7. Strong community organizations, charitable organizations and institutions

8. City leadership facilitating and being a catalyst for community pride

9. City demonstrating sound financial management practices and policies including cost-effective service

delivery

10. Comprehensive Plan and associated master plans guide City decision making

11. Transparent and ethical decision-making process by City officials

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Staffing Levels

The number of budgeted Full Time Equivalent (FTE) positions in FY14 totals 676. A net increase of 14.5 positions is

included for FY14: 5.0 in the General Fund, 1.0 in the Tourism Fund, 0.5 in the Solid Waste Fund, and 8.0 in Water

Utilities and Surface Water Funds.

Employees by Service Area The chart below illustrates the 676 FTE count by Service Area. General Administration is comprised of General

Government, Tourism and Fiscal Services. Community Services is comprised of Public Works, Parks & Recreation,

and Community Development. Utilities consist of Solid Waste, Surface Water, and Water Utility.

Employees per 1,000 Population The table and graph below show the number of FTE positions per 1,000 residents. This figure excludes seasonal

and temporary employees. A combination of growth in the population and the elimination of 18 positions in FY11

have put employees per 1,000 residents below FY09 staffing levels, even with the budgeted increase of 14.5 FTE’s in

FY14.

General Admin 17%

Community Services

22%

Utilities 10%

Airport 6%

Police Dept 29%

Fire Dept 16%

FY14 Employees By Service Area

Fiscal

Year FTE

Percent

Change Population

Employees

per 1,000

Population

FY09 645 3.2% 79,732 8.09

FY10 652 1.1% 83,819 7.78

FY11 660 1.2% 84,511 7.81

FY12 642 -2.7% 84,511 7.60

FY13 661 3.0% 84,134 7.86

FY14 676 2.3% 84,618 7.99

8.09

7.78

7.81

7.60

7.86

7.99

7.20

7.40

7.60

7.80

8.00

8.20

FY09 FY10 FY11 FY12 FY13 FY14

Employees per 1,000 Population

37

Historical Detail of Authorized Full-Time Equivalents

FY13 FY13FY12 Approved Mid-Year FY14 FY14 FY14

Position Title Budget Budget Adjustments Base Additions Budget

Administrative Coordinator 1.00 1.00 1.00 1.00Assistant to City Manager 1.00 - - -City Manager 1.00 1.00 1.00 1.00Director of Public Affairs 1.00 1.00 1.00 1.00Executive Assistant 4.00 3.00 1.00 4.00 4.00Volunteer Coordinator 1.00 1.00 (1.00) - -

City Manager 9.00 7.00 - 7.00 - 7.00Assistant City Manager 3.00 3.00 (1.00) 2.00 2.00Executive Director - - 2.00 2.00 2.00Executive Assistant 1.00 2.00 2.00 2.00

Assistant City Managers 4.00 5.00 1.00 6.00 - 6.00Budget Analyst 3.00 1.00 1.00 2.00 2.00Director of Budget & Research 1.00 1.00 1.00 1.00Assistant Director of Budget and Research - - 1.00 1.00 1.00Sr. Budget Analyst 1.00 1.00 1.00 1.00

Budget and Research 5.00 3.00 2.00 5.00 - 5.00Administrative Secretary 1.00 1.00 1.00 1.00Assistant Emer Mgmt Coord 1.00 - - -Emergency Mgmt Specialist - 1.00 1.00 1.00Director of Emergency Mgmt 1.00 1.00 1.00 1.00

Emergency Management 3.00 3.00 - 3.00 - 3.00Administrative Manager 1.00 1.00 1.00 1.00Administrative Secretary 1.00 1.00 (1.00) - -Administrative Specialist 1.00 1.00 1.00City Secretary 1.00 1.00 1.00 1.00Executive Assistant 1.00 1.00 (1.00) - -Executive Secretary 1.00 1.00 1.00 2.00 2.00Information Process Technician 1.00 1.00 1.00 1.00Receptionist - PT 1.20 1.20 1.20 1.20Records Manager 1.00 1.00 1.00 1.00Records Specialist 1.00 1.00 1.00 1.00

City Secretary 9.20 9.20 - 9.20 - 9.20Asst. Communications Director 1.00 1.00 1.00 1.00Communications Specialist - 1.00 1.00 1.00Community Outreach Manager - - 1.00 1.00 1.00Director of Communications 1.00 1.00 1.00 1.00Executive Secretary 1.00 - 1.00 1.00 1.00Graphics Coordinator 1.00 1.00 1.00 1.00Producer / Videographer 1.00 1.00 1.00 1.00Producer / Writer 1.00 - - -Publications Manager - 1.00 1.00 1.00Web Site Coordinator 1.00 1.00 1.00 1.00

Public Communications 7.00 7.00 2.00 9.00 - 9.00Administrative Manager 1.00 1.00 (1.00) - -Assistant HR Director 1.00 1.00 (1.00) - -Director of Human Resources 1.00 1.00 1.00 1.00Executive Secretary 1.00 1.00 (1.00) - -HR Business Partner 3.00 3.00 (1.00) 2.00 2.00HR Manager - 2.00 2.00 2.00HR Specialist - 3.00 3.00 3.00Program Coordinator 2.00 2.00 (2.00) - -Recruit & Business Svs. Adm - 1.00 1.00 1.00Risk Coordinator - - - -

Risk Analyst 1 - 1.00 1.00Risk Manager 1.00 1.00 1.00 1.00Safety Coordinator - 1.00 1.00 1.00Special Projects Manager 1.00 - - -

Human Resources 11.00 11.00 - 12.00 - 12.00Assistant City Attorney 2.00 2.00 (1.00) 1.00 1.00City Attorney 1.00 1.00 1.00 1.00Deputy City Attorney 1.00 1.00 1.00 1.00Executive Assistant 1.00 1.00 1.00 1.00First Assistant City Attorney 1.00 1.00 1.00

City Attorney 5.00 5.00 - 5.00 - 5.00

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Director of Information Tech. 1.00 1.00 1.00 1.00End User Support Admin 1.00 1.00 1.00 1.00End User Support Mgr 1.00 1.00 (1.00) - -End User Support Specialist 2.00 2.00 2.00 2.00Enterprise Applications Manager 1.00 1.00 (1.00) - -Executive Secretary 1.00 1.00 1.00 1.00G.I.S. Manager 1.00 1.00 (1.00) - -G.I.S. Specialist 2.00 2.00 2.00 2.00IT Manager 3.00 3.00 3.00IT Operations Manager 1.00 1.00 1.00IT Project Manager 1.00 1.00 1.00IT Specialist 1.00 1.00 1.00Lead Programmer Analyst 1.00 1.00 1.00 1.00Program Coordinator 1.00 1.00 (1.00) - -Programmer Analyst 1.00 1.00 1.00 1.00Project Analyst 1.00 1.00 1.00 1.00Project Manager 1.00 1.00 (1.00) - -System Administrator 3.00 3.00 3.00 3.00System Analyst 1.00 1.00 1.00System Manager 1.00 1.00 (1.00) - -

Information Technology 19.00 20.00 - 20.00 - 20.00Assistant to City Manager - 1.00 1.00 1.00Budget and Management Analyst - 1.00 (1.00) - -

Management Assistant I 1 - 1.00 1.00 2.00 2.00Intergovt'l Relations Director 1.00 - - -

Intergovernmental Relations 1.00 3.00 - 3.00 - 3.00Assistant Dir. Of Economic Dev. 1.00 1.00 1.00 1.00Business Development Manager 1.00 1.00 (1.00) - -Business Retention Manager - - 1.00 1.00 1.00Compliance Manager - - 1.00 1.00 1.00Director of Economic Development 1.00 1.00 1.00 1.00Economic Development Coordinator 1.00 1.00 1.00 1.00Executive Secretary 1.00 1.00 1.00 1.00

Economic Development 5.00 5.00 1.00 6.00 - 6.00General Government Total 78.20 78.20 6.00 85.20 - 85.20

Buyer I 2.00 1.00 1.00 1.00Contract Administrator 1.00 - - -Contracts Coordinator - 1.00 1.00 1.00Contracts Manager - 1.00 1.00 1.00Purchasing Coordinator 1.00 1.00 (1.00) - -Purchasing Manager 1.00 1.00 1.00 1.00Purchasing Specialist 1.00 1.00 1.00

Purchasing 5.00 5.00 - 5.00 - 5.00Automotive Technican (I & II) 2.00 2.00 2.00 4.00 4.00Fleet Maintenance Manager 1.00 1.00 1.00 1.00Fleet Services Clerk 1.00 - - -Mechanic 2.00 2.00 (2.00) - -

Fleet Maintenance 6.00 5.00 - 5.00 - 5.00Building Services Technician 2.00 2.00 2.00 2.00Courier 1.00 1.00 1.00Facilities Coordinator 1.00 1.00 1.00Facilities Project Manager 1.00 1.00 1.00 1.00Facilities Services Supervisor 1.00 1.00 1.00 1.00Facility Services Technician 1.00 1.00 (1.00) - -Program Coordinator 1.00 1.00 (1.00) - -Sr. Facility Services Tech 2.00 2.00 2.00 2.00Sr. Secretary 1.00 - - -Director of Support Services - 1.00 1.00 1.00

Facilities Maintenance 9.00 9.00 - 9.00 - 9.00

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Accountant I & II 1.00 2.00 2.00 2.00Accounting Supervisor 1.00 1.00 1.00 1.00Accounts Payable Specialist 2.00 2.00 2.00 1.00 3.00Accounts Payable Supervisor 1.00 1.00 1.00 1.00Chief Accountant 1.00 1.00 1.00 1.00Clerk - Part Time 0.50 0.50 0.50 (0.50) -Director of Fiscal Services 1.00 - - -Executive Secretary 1.00 1.00 1.00 1.00Financial Analyst - 1.00 1.00 1.00Principal Accountant - 1.00 1.00 1.00Project Accountant 1.00 - - -Sr. Accountant 2.00 - - -

Accounting 11.50 10.50 - 10.50 0.50 11.00Court Clerk 4.00 4.00 4.00 4.00Court Docket Coordinator 1.00 1.00 1.00 1.00Court Services Specialist - 1.00 1.00 1.00Court Services Supervisor 1.00 - - -Deputy Court Administrator 1.00 1.00 1.00 1.00Juvenile C.S.W. Coordinator - PT 0.50 0.50 0.50 0.50Municipal Court Administrator 1.00 1.00 1.00 1.00Municipal Court Judge 1.00 1.00 1.00 1.00Records Clerk - PT 0.50 0.50 0.50 0.50Sr. Secretary 1.00 1.00 1.00 1.00Warrant Coordinator 1.00 1.00 1.00 1.00

Municipal Court 12.00 12.00 - 12.00 - 12.00Support Services, Accounting & Municipal Court Total 43.50 41.50 - 41.50 0.50 42.00

Administrative Manager 0.50 0.50 0.50 0.50Administrative Supervisor 1.00 - - -Assistant Public Works Director 2.00 2.00 2.00 2.00Director of Public Works 1.00 1.00 1.00 1.00Executive Secretary - 1.00 1.00 1.00Sr. Secretary 1.00 2.00 2.00 2.00

Public Works Administration 5.50 6.50 - 6.50 - 6.50Crew Chief 4.00 4.00 4.00 4.00Field Supervisor 1.00 1.00 1.00 2.00 2.00General Maintenance Worker (I & II) 6.00 7.00 1.00 8.00 8.00Project Manager 1.00 1.00 1.00 1.00Sr. Contract Inspector 1.00 1.00 1.00 1.00Street/Drainage O/M Supt 1.00 1.00 1.00 1.00Temporary Help 0.40 0.40 0.40 0.40

Streets 14.40 15.40 2.00 17.40 - 17.40Engineer (I) 1.00 1.00 1.00Engineer (II & III) 2.00 2.00 (2.00) - -Field Supervisor - - 1.00 1.00 1.00General Maintenance Worker II 1.00 1.00 (1.00) - -Signs & Marking Supervisor 1.00 1.00 (1.00) - -Traffic Engr & Controls Manager 1.00 1.00 1.00Traffic Operations Manager 1.00 1.00 1.00 1.00Traffic Technician (I & II) 6.00 6.00 (1.00) 5.00 5.00

Traffic Operations 11.00 11.00 (2.00) 9.00 - 9.00Program Coordinator 1.00 1.00 1.00 1.00Environmental Services Inspector 0.50 0.50

Stormwater Management 1.00 1.00 - 1.00 0.50 1.50Animal Services Manager 1.00 1.00 1.00 1.00Animal Services Officer 3.00 3.00 3.00 3.00Animal Services Supervisor 1.00 1.00 1.00Animal Shelter Coordinator 1.00 1.00 (1.00) - -Kennel Technician - P/T 0.50 0.50 0.50 0.50Sr. Secretary - 1.00 1.00 1.00Veterinary Technician - P/T 0.50 0.50 0.50 (0.50) -Veterinary Technician - - - 1.00 1.00

Animal Services 6.00 7.00 - 7.00 0.50 7.50Public Works Total 37.90 40.90 - 40.90 1.00 41.90

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Administrative Manager 1.00 1.00 1.00 1.00Assistant Parks & Rec Director 2.00 2.00 2.00 2.00Director of Parks & Recreation 1.00 1.00 1.00 1.00Executive Secretary 1.00 1.00 1.00 1.00Sr. Secretary 1.00 1.00 1.00 1.00

Parks Administration 6.00 6.00 - 6.00 - 6.00Park Devel & Streetscape Coordinator - 0.50 0.50 0.50Parks Development Manager 1.00 1.00 1.00 1.00

Parks Development 1.00 1.50 - 1.50 - 1.50Event Coordinator 1.00 1.00 1.00 1.00Event Coordinator - PT - 0.50 0.50 0.50Event Production Manager 1.00 1.00 1.00 1.00Recreation Specialist - PT 0.50 - - -

Event Production 2.50 2.50 - 2.50 - 2.50Administrative Supervisor 1.00 1.00 1.00 1.00Day Camp Counselor (seasonal) 1.78 1.78 1.78 1.78Day Camp Lead Counselor (seasonal) 0.46 0.46 0.46 0.46Day Camp Supervisor (seasonal) 0.24 0.24 0.24 0.24General Maintenance Worker II 1.00 1.00 (1.00) - -Parks Ambassador - PT 2.31 1.81 1.81 1.81Parks Facility Technician 1.00 1.00 1.00Recreation Coordinator 2.00 2.00 2.00 2.00Recreation Center Manager 1.00 1.00 1.00Recreation Manager 1.00 1.00 (1.00) - -Recreation Specialist - PT 2.48 2.48 0.50 2.98 2.98

Recreation & Athletic Pg. 12.27 11.77 0.50 12.27 - 12.27Recreation Center Manager 1.00 1.00 1.00Recreation Coordinator 1.00 1.00 1.00 1.00Recreation Manager - 1.00 (1.00) - -Recreation Specialist 1.00 0.50 0.50 0.50 1.00

Seniors Programs 2.00 2.50 - 2.50 0.50 3.00Pool Lifeguards 1.63 - - -Pool Manager 0.21 - - -Pool Technician 0.33 - - -

Aquatics 2.17 - - - - -Park Devel & Streetscape Coordinator 0.50 0.50 0.50Contract Services Monitor 1.00 1.00 1.00Contract Services Inspector 1.00 1.00 (1.00) - -

ROW Maintenance 1.00 1.50 - 1.50 - 1.50Administrative Secretary 1.00 - - -Crew Chief 3.00 3.00 3.00 3.00Field Supervisor 1.00 1.00 1.00 1.00General Maintenance Worker (I & II) 7.00 7.00 7.00 7.00Parks Superintendent 1.00 1.00 1.00 1.00

Parks Maintenance 13.00 12.00 - 12.00 - 12.00Parks & Recreation Total 39.94 37.77 0.50 38.27 0.50 38.77

Executive Director 1.00 1.00 (1.00) - -Management Assistant II 1.00 - - -

Community Development 2.00 1.00 (1.00) - - -Building Inspector 5.00 4.00 4.00 4.00Building Official 1.00 1.00 1.00 1.00Deputy Building Official 1.00 1.00 1.00 1.00Permit Clerk 3.00 3.00 3.00 3.00Permit Clerk Supervisor 1.00 1.00 1.00 1.00Plans Examiner 2.00 2.00 2.00 2.00Sr. Building Inspector 1.00 2.00 2.00 2.00Sr. Permit Clerk 1.00 1.00 1.00 1.00Temporary Help 0.08 0.08 0.08 0.08

Permits 15.08 15.08 - 15.08 - 15.08Assistant Director of Comm. Devel 1.00 - - -Development Review Coordinator 2.00 2.00 2.00 2.00Director of Planning & Environment - 1.00 1.00 1.00Planner II 1.00 1.00 1.00 2.00 2.00Principal Planner - 1.00 1.00 1.00Sr. Planner 1.00 - - -

Planning & Development 5.00 5.00 1.00 6.00 - 6.00

41



Assistant Director of Comm. Devel. 1.00 - - -Director of Transportation & Long Range Planning - 1.00 1.00 1.00Executive Secretary - 1.00 1.00 1.00Planner II 1.00 - - -Principal Planner - 1.00 1.00 1.00Sr. Planner 1.00 1.00 1.00 1.00

Transportation & Long Range Planning 3.00 4.00 - 4.00 - 4.00Community & Envirnmental Dir - - - -Community & Environmental Mgr 1.00 1.00 1.00 1.00

Community & Environmental Services 1.00 1.00 - 1.00 - 1.00Sr. Sanitarian 1.00 1.00 1.00 1.00Sanitarian 1.00 2.00 2.00 2.00

Food Inspection 2.00 3.00 - 3.00 - 3.00Code Enforcement Inspector 2.00 2.00 2.00 2.00Code Enforcement Official 1.00 1.00 1.00 1.00Sr. Secretary 1.00 1.00 1.00 1.00

Code Enforcement 4.00 4.00 - 4.00 - 4.00Code Enforcement Coordinator 1.00 1.00 1.00 1.00Code Enforcement Inspector 1.00 1.00 (1.00) - -Rental Compliance Supervisor 1.00 1.00 1.00

Rental Registration 2.00 2.00 - 2.00 - 2.00Assistant City Engineer 1.00 1.00 1.00 1.00Assistant Director of Water Utility 1.00 1.00 1.00City Engineer 1.00 1.00 1.00 1.00Construction Inspector 5.00 5.00 5.00 5.00Construction Services Manager 1.00 1.00 1.00 1.00Contract Services Inspector - - - -Contract Services/CIP Manager 1.00 1.00 (1.00) - -Engineer (I, II, III, IV) 4.00 4.00 (1.00) 3.00 3.00Engineering Specialist 1.00 1.00 1.00Executive Secretary 1.00 1.00 1.00 1.00Program Coordinator 1.00 1.00 (1.00) - -Project Manager 1.00 1.00 2.00 3.00 3.00Real Property Manager 1.00 1.00 1.00Real Property Services Manager 1.00 1.00 (1.00) - -Sr. Construction Inspector 1.00 1.00 1.00Sr. Contract Inspector 1.00 1.00 (1.00) - -Sr. Engineer 1.00 1.00 1.00 2.00 2.00Sr. Project Manager 1.00 1.00 (1.00) - -

Engineering 20.00 20.00 1.00 21.00 - 21.00Community Development Total 54.08 55.08 1.00 56.08 - 56.08

Assistant Chief of Police 2.00 2.00 2.00 2.00Crime Analyst 1.00 1.00 1.00 1.00Department Analyst 1.00 1.00 1.00 1.00Executive Secretary 1.00 1.00 1.00 1.00Police Chief 1.00 1.00 1.00 1.00Police Sergeant 1.00 1.00 1.00 1.00Sr. Secretary 1.00 1.00 1.00 1.00

Police Administration 8.00 8.00 - 8.00 - 8.00Administrative Secretary 1.00 1.00 (1.00) - -Police Captain 1.00 1.00 1.00 1.00Police Lieutenant 1.00 1.00 1.00 1.00Police Officer 3.00 3.00 3.00 3.00Police Sergeant 2.00 2.00 2.00 2.00Receptionist 1.00 1.00 1.00 1.00Records Clerk 4.00 4.00 4.00 4.00Records Manager 1.00 1.00 (1.00) - -Records Supervisor 1.00 1.00 1.00Sr. Secretary 1.00 1.00 1.00 2.00 2.00System Analyst 1.00 - - -

Staff Services 16.00 15.00 - 15.00 - 15.00Police Captain 1.00 1.00 1.00 1.00Police Lieutenant 6.00 6.00 6.00 6.00Police Officer 84.30 84.30 84.30 84.30Police Sergeant 19.00 19.00 19.00 19.00Sr. Secretary 1.00 1.00 1.00 1.00

Patrol 111.30 111.30 - 111.30 - 111.30

42



Asst. Victim Services Liaison 0.50 0.50 0.50 0.50Crime Analyst 1.00 1.00 1.00 1.00Crime Scene Technician - 2.00 2.00 2.00Evidence/Property Supervisor 1.00 - - -Evidence/Property Technician 1.00 - - -Police Captain 1.00 1.00 1.00 1.00Police Lieutenant 1.00 1.00 1.00 1.00Police Officer 18.00 19.00 19.00 19.00Police Sergeant 5.00 5.00 5.00 5.00Sr. Secretary 1.00 1.00 1.00 1.00Victim Services Coordinator 1.00 - - -Warrant Clerk 1.00 1.00 1.00 1.00

Criminal Investigations 31.50 31.50 - 31.50 - 31.50Detention Officer 5.00 5.00 5.00 5.00Police Sergeant 1.00 1.00 1.00 1.00

Detention Facility 6.00 6.00 - 6.00 - 6.00Deputy PS Dispatch Manager 1.00 1.00 1.00 1.00PS Dispatch Shift Supervisor 4.00 4.00 4.00 4.00Public Safety Dispatch Manager 1.00 1.00 1.00 1.00Public Safety Dispatcher 14.00 16.00 16.00 2.00 18.00

Public Safety Communications 20.00 22.00 - 22.00 2.00 24.00Police Total 192.80 193.80 - 193.80 2.00 195.80

Administrative Manager 1.00 1.00 1.00 1.00Executive Assistant 1.00 1.00 1.00 1.00Fire Chief 1.00 1.00 1.00 1.00

Fire Administration 3.00 3.00 - 3.00 - 3.00Assistant Fire Chief 1.00 1.00 1.00 1.00Battalion Chief 3.00 3.00 3.00 1.00 4.00Fire Captain 1.00 1.00 1.00 1.00Fire Driver 21.00 21.00 21.00 21.00Fire Lieutenant 22.00 22.00 (1.00) 21.00 21.00Firefighter 42.00 42.00 42.00 42.00

Emergency Services 90.00 90.00 (1.00) 89.00 1.00 90.00Administrative Secretary 1.00 1.00 1.00 1.00Asst. Fire Chief 1.00 1.00 1.00Asst. Fire Marshall 1.00 1.00 1.00 1.00Fire Captain 1.00 1.00 1.00 1.00Fire Inspector/Investigator 2.00 2.00 2.00 2.00Fire Lieutenant 2.00 2.00 2.00 2.00Fire Marshal 1.00 1.00 (1.00) - -

Prevention 8.00 8.00 - 8.00 - 8.00Assistant Fire Chief 1.00 1.00 1.00 1.00Battalion Chief 2.00 2.00 2.00 2.00Fire Captain 2.00 2.00 2.00 2.00Fire Lieutenant 1.00 1.00 1.00Sr. Secretary 1.00 1.00 1.00 1.00

Professional Development 6.00 6.00 1.00 7.00 - 7.00Fire Total 107.00 107.00 - 107.00 1.00 108.00

GENERAL FUND 553.42 554.25 7.50 562.75 5.00 567.75LESS PROGRAM EMPLOYEES - - - (3.00) - (3.00)GENERAL FUND NET 553.42 554.25 7.50 559.75 5.00 564.75

Police Officer 0.70 0.70 0.70 0.70Court Security 0.70 0.70 - 0.70 - 0.70

COURT SECURITY FUND 0.70 0.70 - 0.70 - 0.70Tourism Coordinator - 1.00 1.00Tourism Manager 1.00 1.00 1.00 1.00

Tourism Program 1.00 1.00 - 1.00 1.00 2.00TOURISM FUND 1.00 1.00 - 1.00 1.00 2.00

43



Administrative Manager 0.50 0.50 0.50 0.50Assistant Director of Water Utilities 1.00 1.00 1.00Assistant Utilities Director 1.00 1.00 (1.00) - -Contract Services Coordinator 1.00 1.00 1.00Contract Services Inspector 1.00 1.00 (1.00) - -Director of Water Utilities 1.00 1.00 1.00 1.00Executive Secretary - 1.00 1.00 1.00Sr. Secretary 2.00 1.00 1.00 1.00

Utility Administration 5.50 5.50 - 5.50 - 5.50Crew Chief 4.00 4.00 4.00 4.00Field Operations Manager 0.45 0.45 0.45 0.45Facility Operations Manager - 0.50 0.50 0.50Field Supervisor - 0.50 0.50 0.50General Maintenance Worker (I & II) 5.00 5.00 5.00 5.00

Water Distribution 9.45 10.45 - 10.45 - 10.45Crew Chief 0.50 0.50 (0.50) - -Field Supervisor 1.00 1.00 1.00 1.00I & C Technician 0.50 0.50 0.50P&M Technician 1.50 1.00 1.00 1.00Utilities Operator 2.50 2.50 2.50 2.50Water Services Supervisor - 0.50 0.50 0.50

Water Production 5.50 5.50 - 5.50 - 5.50Crew Chief 1.00 1.00 1.00 1.00Field Operations Manager 0.20 0.20 0.20 0.20Field Supervisor 1.00 0.50 0.50 0.50General Maintenance Worker (I & II) 5.00 5.00 5.00 5.00

Wastewater Collection 7.20 6.70 - 6.70 - 6.70Crew Chief 1.50 1.50 (0.50) 1.00 1.00Electrician 0.50 0.50 0.50P&M Technician 2.50 3.00 3.00 3.00Utilities Operator 0.50 0.50 0.50 0.50Water Services Supervisor 0.50 0.50 0.50

Wastewater Treatment 4.50 5.00 0.50 5.50 - 5.50Crew Chief 1.00 1.00 1.00 1.00Field Operations Manager 0.35 0.35 0.35 0.35Field Supervisor 1.00 1.00 1.00 1.00General Maintenance Worker II 4.00 4.00 4.00 4.00Water Conservation Manager - 1.00 - (1.00) (1.00)

Customer Service 6.35 7.35 - 6.35 (1.00) 5.35Lab Technician - 0.50 0.50 0.50Water Quality Coordinator 1.00 1.00 (1.00) - -Water Quality Manager 1.00 1.00 1.00 1.00Water Quality Supervisor 1.00 1.00 1.00Water Quality Technician 1.00 1.00 1.00 1.00 2.00

Water Quality 3.00 3.50 - 3.50 1.00 4.50Water Conservation Manager 1.00 1.00

Water Conservation - - - 1.00 - 1.00Billing/Collection Spec. (I & II) 3.00 3.00 3.00 3.00Billing/Collection Supervisor 1.00 - 1.00 1.00 1.00Deputy Treasury Manager - 1.00 1.00 1.00Collection Teller 3.00 2.00 (2.00) - -Customer Service Rep 1.00 1.00 2.00 3.00 3.00Customer Service Supervisor 1.00 1.00 (1.00) - -Sr. Secretary 1.00 1.00 (1.00) - -Treasury Manager 1.00 1.00 1.00 1.00Treasury Specialist 1.00 1.00 1.00Treasury System Support Spec. 1.00 - - -

Treasury 12.00 10.00 - 10.00 - 10.00UTILITY FUND 53.50 54.00 0.50 54.50 - 54.50

44



Assistant Utilities Director 1.00 1.00 (1.00) - -Electrician 1.00 (0.50) 0.50 0.50I & C Technician 0.50 0.50 0.50Lab Technician - 0.50 0.50 0.50Facility Operations Manager - 0.50 0.50 0.50General Maintenance Worker II - - - 1.00 1.00Lead Operator - - - 2.00 2.00Mechanic - - 1.00 1.00Utility Operator - - - 3.00 3.00Surface Water Chief Operator - 1.00 1.00 1.00Surface Water Plant Manager - 1.00 1.00 1.00Water Resources Manager 1.00 1.00 1.00 1.00

Surface Water 2.00 6.50 (1.50) 5.00 7.00 12.00SURFACE WATER FUND 2.00 6.50 (1.50) 5.00 7.00 12.00

Administrative Coordinator 1.00 1.00 1.00 1.00Airport Operations Specialist 1.00 1.00 1.00Assistant Director of Aviation 2.00 2.00 2.00Assistant Aviation Director 1.00 1.00 (1.00) - -Business Manager 1.00 1.00 (1.00) - -Director of Aviation 1.00 1.00 1.00 1.00Executive Secretary - - - -Management Assistant II 1.00 1.00 1.00 1.00Program Coordinator - - - -Receptionist 1.00 1.00 1.00 1.00

Airport Administration 6.00 7.00 - 7.00 - 7.00Airport Services Manager 1.00 1.00 1.00 1.00Airport Services Rep 5.00 6.00 6.00 6.00Airport Services Rep - P/T - 0.50 0.50 0.50Concierge Manager - 1.00 1.00 1.00Crew Chief 1.00 1.00 (1.00) - -Field Supervisor 1.00 2.00 (2.00) - -Flight Line Crew 12.50 12.00 12.00 12.00Line Services Manager - 1.00 1.00 1.00Line Supervisor 3.00 3.00 3.00

FBO Services 20.50 24.50 - 24.50 - 24.50Café Attendant - 2.50 2.50 2.50

Café Select - 2.50 - 2.50 - 2.50Airfield & Facilities Manager 1.00 1.00 1.00Crew Chief 1.00 1.00 1.00 1.00Custodian 1.00 1.00 1.00 1.00Facilities & Airfield Infrastructure Mgr 1.00 1.00 (1.00) - -General Maintenance Worker (I & II) 4.00 5.00 5.00 5.00

Maintenance 7.00 8.00 - 8.00 - 8.00AIRPORT FUND 33.50 42.00 - 42.00 - 42.00

Environmental Manager 1.00 1.00 1.00 1.00Environmental Services Inspector 1.00 1.00 1.00 0.50 1.50

Solid Waste 2.00 2.00 - 2.00 0.50 2.50SOLID WASTE FUND 2.00 2.00 - 2.00 0.50 2.50TOTAL ALL FUNDS 646.12 660.45 6.50 664.95 13.50 678.45

Less Seasonal (4.65) (2.48) (2.48) (2.48)TOTAL FULL TIME EQUIVALENT 641.47 657.97 6.50 662.47 13.50 675.97

1. Represents a program employee funded from salary savings that is not counted towards overall FTE count.

45

PropertyTaxes

The City’s property tax is levied each October 1 on the certified assessed value as of January 1 for all real and personal property. The appraisal of property is the responsibility of the Fort Bend Central Appraisal District. Appraisals may be challenged through various appeals and, if necessary, legal action. The City is permitted by the State of Texas Constitution to levy taxes up to $2.50 per $100 of assessed valuation for general government services including the payment of principal and interest on general obligation long term debt.

The City owns and operates the Sugar Land Regional Airport and has a policy to transfer all taxes received on airport valuations to the Airport Enterprise Fund for operating expenses and development. The City also has a policy whereby the City rebates a portion of the property taxes collected from in‐City MUDs back to the districts. In tax year 2000, TIRZ#1 was formed, which includes Sugar Land Town Square. Taxes assessed and collected by the participating entities (City, County, LID #2) over and above the base value of the property upon creation of the TIRZ #1 ($5.5 million) are deposited to the benefit of the TIRZ to support improvements within the TIRZ #1. TIRZ #3 – Imperial/Tract 3 was formed in 2007. The zone covers 839.4 acres and has a base taxable value of $5.6 million. The purpose of TIRZ #3 is to facilitate a program of public improvements to allow the development and redevelopment of property as a master‐planned and mixed use community. Included in the development is the preservation and/or reuse of certain historic structures at the Imperial Sugar site and the location of a museum to house Imperial Sugar artifacts. TIRZ #4 was formed in 2009. The zone covers approximately 698 acres and has a base taxable value of $21.5 million. The purpose of the zone is to support development of employment, commercial, cultural arts, and an entertainment district within an urban‐density mixed use center.

FiscalYear2013The total property tax collections for FY13 are projected to be $29,870,657 or 99.2% of the adjusted levy, including the TIRZ. Revenues are distributed between operations and maintenance ($16,545,192), debt service ($13,027,484), TIRZ # 1 ($287,346), TIRZ #3 ($9,404), and TIRZ #4 ($1,230).

FiscalYear2014The certified net assessed valuation of $10,304,115,399 for tax year 2013 is $557,700,200 or 5.72% greater than the 2012 adjusted tax roll, including the TIRZ. Of the $10.3 billion in taxable value, $101.03 million is included in TIRZ

#1, $3.18 million in TIRZ #3, and $25.31 million in TIRZ #4 and taxes collected on this valuation will be allocated to each TIRZ from the City. Net assessed residential value increased 3.96%, and net assessed commercial value increased by 6.85% over the 2012 adjusted tax roll, including new value. Based on the certified tax roll and the 2013 tax rate of $0.30895 per $100 of assessed value, the anticipated tax collections for FY14 are $31,579,888 at a 99.2% collection rate or $1,709,231 greater than FY13 projections including the three TIRZ. Based on the 99.2% collection rate, $31,182,908 will remain with the City and $396,980 will be conveyed to the three TIRZ.

According to the City’s Financial Management Policy Statements, each year City Council will continue to consider a homestead exemption increase rather than adjust the ad valorem tax rate to offset revaluation of properties. Council did not make any changes to the homestead exemptions for tax year 2013. The optional exemption for over‐65 and disable persons remains at $70,000.

The overall tax rate is for 2013 is $0.30895, which is the same rate as 2012. The 2013 tax rate and allocation, compared to 2012 tax rate, is as follows:

Texas truth‐in‐taxation laws require public notices, a public vote and public hearings for adoption of a tax rate that exceeds the effective tax rate. The effective tax rate is the tax rate that would generate the same tax revenues in tax year 2013 as the 2012 tax rate did in the prior year, based on the values of properties that are taxed in both years. The rollback rate allows for an 8% increase in the operations and maintenance rate after accounting for the impact of sales tax for property tax reduction. The results of the effective tax rate calculations are as follows:

Effective Tax Rate $0.298088 Rollback Rate $0.323158 The property tax impact of the 2013 tax rate based on an average taxable value of $286,246 after a 7% homestead for FY13 is an increase of $19.66 or 2.4% from the 2012 tax on an average taxable value of $259,846 with a homestead exemption of 7%. The main impact comes from a 2.4% increase in the average home value.

2012 % 2013 %

M&O 0.17285$ 55.95% 0.17285$ 55.95%

Debt Service 0.13610 44.05% 0.13610 44.05%

Total 0.30895$ 100.00% 0.30895$ 100.00%

47

The charts below represent historical views of the City’s tax rate and the allocation of the levy based on the tax rate. The chart shows that the tax rate remains the same as FY13, which is 55.95% for maintenance and operations and 44.05% to debt.

In FY14, property taxes per capita, excluding TIRZ valuation, is approximately $368. Taxes per capita increased in FY14 due an overall increase of 5.7% in total City value with a population of 84,618.

* Excludes TIRZ Valuation

$‐ $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35

FY04

FY06

FY08

FY10

FY12

FY14

Tax Rate by Fiscal Year

O&M Debt Service

$‐

$5

$10

$15

$20

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Millions

Historical Tax Levy

O&M Debt Service

$270 $272

$262 $290 $287

$331 $344

$326 $333 $348

$368

$‐ $100 $200 $300 $400

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

Property Taxes per Capita*

48

CITY OF SUGAR LAND

TAX COLLECTIONS

FY13 FY13 FY14 FY14 FY14FY12 Budget Projections Base Budget Changes Budget

Adjusted Levy Certified Levy Adjusted Levy Certified Levy Certified Levy

REVENUES:City Levy $28,464,904 $29,670,778 $29,811,166 $31,434,383 $31,434,383TIRZ #1 255,017 287,955 289,663 312,154 312,154TIRZ #3 8,739 9,508 9,480 9,817 9,817TIRZ #4 1,072 1,240 1,240 78,210 78,210

Total Tax Levy 28,729,732 29,969,482 30,111,550 31,834,564 31,834,564

Collection Rate 99.2% 28,499,894 29,729,726 29,870,657 31,579,888 31,579,888

ALLOCATION:Maintenance 15,530,685 16,467,277 16,545,192 17,446,078 17,446,078Debt 12,706,500 12,966,135 13,027,484 13,736,831 13,736,831Total City Revenues 28,237,185 29,433,412 29,572,676 31,182,908 31,182,908

TIRZ #1 252,976 285,652 287,346 309,657 309,657TIRZ #3 8,670 9,432 9,404 9,739 9,739TIRZ #4 1,063 1,230 1,230 77,584 77,584

TOTAL TAX ALLOCATION $28,499,894 $29,729,726 $29,870,657 $31,579,888 $31,579,888

Tax Year 2011 2012 2012 2013 2013 2013Net Assessed Value $9,499,002,061 $9,700,431,177 $9,746,415,199 $10,304,115,399 $10,304,115,399TIRZ #1 Value @ 100% (84,316,948) (93,204,491) (93,757,326) (101,037,081) (101,037,081)TIRZ #3 Value @ 50% (2,889,545) (3,077,565) (3,068,565) (3,177,644) (3,177,644)

TIRZ #4 Value @ 50% (354,396) (401,495) (401,495) (25,314,747) (25,314,747)Taxable to City 9,411,441,172 9,603,747,626 9,649,187,813 10,174,585,927 10,174,585,927

Tax Rate Per $100Maintenance 0.16635$ 0.17285$ 0.17285$ 0.17285$ 0.17285$Debt 0.13610 0.13610 0.13610 0.13610 0.13610

Total Tax Rate 0.30245$ 0.30895$ 0.30895$ 0.30895$ 0.30895$

Tax Rate Split:Maintenance 55.00% 55.95% 55.95% 55.95% 55.95%Debt 45.00% 44.05% 44.05% 44.05% 44.05%

Total 100.00% 100.00% 100.00% 100.00% 100.00%

Certified Levy - 100% $28,464,904 $29,670,778 $29,811,166 $31,434,383 $31,434,383

49

CITY OF SUGAR LAND

ANALYSIS OF CERTIFIED TAX ROLL

Supplement #16 Certified

Tax Year 2012 2013 %

FY13 FY14 Change

No. of Items 38,928 39,237 0.79%

Residential Property:

Land 1,797,830,360$ 1,825,298,789$ 1.53%

Improvements 5,259,272,074 5,511,056,822 4.79%

Total Residential Property 7,057,102,434 7,336,355,611 3.96%

Commercial Property:

Land 945,548,580 1,013,094,808 7.14%

Improvements 2,205,100,166 2,326,028,520 5.48%

Personal Property 1,263,470,914 1,377,409,080 9.02%

Total Commercial Property 4,414,119,660 4,716,532,408 6.85%

Agricultural Property 21,319,710 11,026,160 -48.28%

Automobiles 46,680,291 46,326,301 -0.76%

Total Market Value 11,539,222,095 12,110,240,480 4.95%

Productivity Loss (21,047,200) (10,790,000) -48.73%

Homestead CAP Adjustment (29,310,985) (31,556,265) 7.66%

Exempt Properties (781,620,731) (823,235,711) 5.32%

Total Assessed Value 10,707,243,179 11,244,658,504 5.02%

Less:

Homestead Exemptions (420,794,826) (426,199,810) 1.28%

Over 65 Exemptions (302,492,104) (299,284,473) -1.06%

Disabled Persons Exemptions (18,277,421) (16,889,041) -7.60%

Disabled Veterans Exemptions (1,675,500) (1,623,950) -3.08%

Disabled Veterans 100% (10,223,630) (10,197,510) -0.26%

Abatements (167,820,740) (142,064,682) -15.35%

Pollution (3,329,220) (5,744,368) 72.54%

Personal Leased Vehicles (35,177,100) (34,715,810) -1.31%

Prorated Exempt Property (1,030,009) (3,807,300) 269.64%

House Bill 366 Exemptions (7,430) (16,161)

Total Exemptions (960,827,980) (940,543,105) -2.11%

Net Assessed Valuation (NAV) 9,746,415,199$ 10,304,115,399 5.72%

Less: TIRZ #1 Value @ 100% (93,757,326) (101,037,081) 7.76%

Less: TIRZ #3 Value @ 50% (3,068,565) (3,177,644) 3.55%

Less: TIRZ #4 Value @ 50% (401,495) (25,314,747) 6205.12%

Taxable Valuation to City 9,649,187,813 10,174,585,927 5.44%

50

CITY OF SUGAR LAND

PRINCIPAL TAXPAYERS

2013 TOP TEN

2013 Percentage

Taxable of Total

Assessed Net Assessed

Taxpayer Type of Business Valuation (A) Valuation

1 Schlumberger Tech Corp - Well Services Manufacturing 99,322,540$ 0.96%

2 First Colony Mall LLC Shopping Center 90,179,840 0.88%

3 Fairfield Industries Office 84,270,520 0.82%

4 Lakepointe Assets, LLC Real Estate/Engineering 81,300,000 0.79%

5 API Realty LLC Real Estate 74,467,840 0.72%

6 Tramontina USA Inc Manufacturing 82,026,040 0.80%

7 Amerisource Bergen Drug Corp. Pharmacy/Medical 59,721,760 0.58%

8 NNP-Telfair LLC Real Estate 53,322,450 0.52%

9 Weingarten Realty Investors & WRI/Post Oak Inc Shopping Center 53,294,670 0.52%

10 Schlumberger Tech Corp - SPC Energy Technology 49,822,520 0.48%

Other 9,576,387,219 92.94%

Total Net Assessed Valuation - Certified Roll 10,304,115,399$ 100.00%

(A) = Net of Tax Abatement

51

DebtServiceFund

The Debt Service Fund accounts for the issuance of debt and provides for the payment of debt principal and interest as they come due. In the Debt Service Fund, an ad valorem (property) tax rate and tax levy is required to be computed and levied to produce sufficient revenue to satisfy annual debt service requirements. The City has no general obligation legal debt limit other than a ceiling on the tax rate specified by the State of Texas. Under the rules of the Texas Attorney General, the City may issue general obligation debt in an amount no greater than that which can be serviced by a debt service tax rate of $1.50 per $100 assessed valuation based on 90% collection.

The City’s tax backed bond rating is “AAA” by Fitch Ratings and Standard and Poor’s.

The City’s Financial Management Policy Statements designate that property taxes generated from the Airport are to be transferred to the Airport in support of development and operations. The City also has a policy to rebate a portion of the property taxes collected from in‐City MUDs back to the districts. The Debt Service Fund expenditures include the debt service component of these agreements.

FiscalYear2013Revenues total $23,169,591, which includes $13,079,300 in current and delinquent property taxes. A total of $4,786,941 was received from the proceeds of bond refunding. Other funding sources include transfers from the Utility Fund, Tourism Fund, and interest income. Transfers from the Utility Fund and Tourism Fund support debt service related to activities supported by those funds. Expenditures are projected at $22,531,370, which includes $16,321,006 in debt service payment, $4,829,663 in refunding and issuance costs and $20,000 fiscal fees. Rebates to in‐City MUDs and inter‐fund transfers total $1,306,962. The fund balance at 9/30/13 is projected to be $3,171,192, which is over the fund balance policy requirement of 10% of annual debt service.

FiscalYear2014Funding from property taxes in the amount of $13,788,900 represents 75.3% of funding sources. Tax revenues are budgeted based on the certified tax roll and the adopted tax rate. Other funding sources include transfers from the Utility Fund, Tourism Fund, interest income, and developer fees. The budget includes 100% recovery on water/wastewater debt assumed from MUDs through an interfund transfer. The FY14 transfer from the water utility fund totals $3,376,368.

In 2002, the City issued $10.1 million in combination Tax and Hotel Occupancy Tax COs for a portion of the $19.3 million contribution to construction of a conference center in the Sugar Land Town Square. The certificates are backed by a pledge of Hotel Occupancy Taxes. This issue was refunded in FY10 with the GO Refunding Bonds, Series 2010 and the savings are being passed on to the Tourism Fund. For FY14, $664,214 will be transferred to cover the debt service requirement for the 2002 CO’s.

Debt service requirements on outstanding debt for the FY14 budget are $15,437,757. The budget incorporates $1,669,885 for debt service on the anticipated issuance of $24.4 million in new debt, which includes a planned issue from 2013 projects as well as debt to support 2014 projects. Rebates to in‐City MUDs and inter‐fund transfers totals

Property Tax 75.3%

Interest Income0.1%

Developer Fee2.5%

Transfers In

22.1%

FY14 Revenue Sources

53

$1,659,850. The budgeted ending fund balance at 9/30/14 is $2,699,830, $989,066 above the policy requirement of 10% of annual debt service requirements.

For FY14 the ratio of net bonded debt to taxable value is expected to decrease from 1.2% to 1.1% due to growth in assessed values combined with payment of outstanding debt. No additional tax backed debt was issued in FY13 which allowed the City’s outstanding tax backed debt to decrease.

Net bonded debt per capita is expected to decrease to $1,305 at the end of FY14 as debt gets paid down and less new debt is issued.

1.3%

1.0%

1.3% 1.4% 1.4%

1.2%

1.1%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

FY08 FY09 FY10 FY11 FY12 FY13 FY14

Net Bonded Debt vs. Taxable Valuation

$1,262 $1,101

$1,467 $1,467 $1,517 $1,367 $1,305

$‐

$500

$1,000

$1,500

$2,000


Net Bonded Debt Per Capita

54

CITY OF SUGAR LAND

DEBT SERVICE FUND

INCOME STATEMENT

FY14

FY12 FY13 Current FY13 Base FY14 FY14

Actuals Budget Projection Budget Changes Budget

REVENUES

Current Property Taxes 12,677,113$ 12,961,438$ 13,027,500$ 13,736,800$ 13,736,800$

Delinquent Property Taxes (60,019) 51,800 51,800 52,100 52,100

Developer Fee Reimbursement 476,000 327,250 616,000 472,500 472,500

Interest on Investments 11,447 12,436 7,958 12,148 12,148

Refunding Bond Proceeds 10,246,260 4,786,941 4,786,941 - -

TOTAL REVENUES 23,350,801 18,139,865 18,490,199 14,273,548 14,273,548

Transfer In from Tourism Fund 648,012 656,261 656,261 664,214 664,214

Transfer from SLDC: PAC - - -

Transfer In from Utility Fund 4,092,558 4,023,131 4,023,131 3,376,368 3,376,368

TOTAL INTERFUND TRANSFERS 4,740,570 4,679,392 4,679,392 4,040,581 4,040,581

TOTAL REVENUES 28,091,371 22,819,257 23,169,591 18,314,130 18,314,130

EXPENDITURES

Debt Service: Current Debt 17,876,869 16,321,006 16,321,006 15,437,757 15,437,757

Debt Service- New Issues 221,408 - 1,669,885 1,669,885

Fiscal Fees/Other 8,685 20,000 20,000 18,000 18,000

Issuance Costs 147,707 70,785 70,785 - -

Refunding Payment to Escrow 10,328,482 4,758,314 4,758,878 - -

TOTAL DEBT SERVICE 28,361,743 21,391,513 21,170,669 17,125,642 17,125,642

Rebates & Assignments 1,057,982 1,539,140 1,306,962 1,605,450 1,605,450

Transfers to Other Funds 43,494 51,030 53,739 54,400 54,400

TOTAL EXPENDITURES 29,463,219 22,981,683 22,531,370 18,785,492 18,785,492

CHANGE IN FUND BALANCE (1,371,848) (162,426) 638,220 (471,362) (471,362)

FUND BALANCE - BEGINNING 3,904,820 2,532,972 2,532,972 3,171,192 3,171,192

FUND BALANCE - ENDING 2,532,972$ 2,370,546$ 3,171,192$ 2,699,830$ 2,699,830$

Policy Requirement 1,787,687$ 1,654,241$ 1,632,101$ 1,710,764$ 1,710,764$

Over/(Under) Policy 745,285$ 716,304$ 1,539,091$ 989,066$ 989,066$

Policy Requirement 10% 10% 10% 10% 10%

55

CITY OF SUGAR LANDCOMPUTATION OF DIRECT AND OVERLAPPINGAS OF SEPTEMBER 30, 2013

City'sTotal Estimated Overlapping

G.O. Debt as of % G.O. Debt as ofSeptember 30, 2013 Applicable September 30, 2013

City of Sugar Land 218,415,000$ 100.00% 218,415,000Burney Road MUD 10,620,000 100.00% 10,620,000First Colony LID No. 2 330,000 100.00% 330,000First Colony MUD No. 10 14,935,000 100.00% 14,935,000Fort Bend County 460,650,000 23.65% 108,943,725Fort Bend County LID No. 2 14,500,000 100.00% 14,500,000Fort Bend County LID No. 10 13,395,000 94.15% 12,611,393Fort Bend County LID No. 14 4,770,000 100.00% 4,770,000Fort Bend County LID No. 17 52,510,000 100.00% 52,510,000Fort Bend County MUD No. 21 8,060,000 100.00% 8,060,000Fort Bend County MUD No. 116 29,545,000 0.11% 32,500Fort Bend County MUD No. 136 4,855,000 100.00% 4,855,000Fort Bend County MUD No. 137 30,875,000 100.00% 30,875,000Fort Bend County MUD No. 138 31,365,000 100.00% 31,365,000Fort Bend County MUD No. 139 8,260,000 100.00% 8,260,000Fort Bend County WC&ID No. 2 57,145,000 0.66% 377,157Fort Bend ISD 878,904,425 43.04% 378,280,465

Total Direct and Overlapping Funded Debt 899,740,239$Ratio of Direct and Overlapping Funded Debt to Taxable Assessed Valuation 9.18%Per Capita Overlapping Funded Debt 10,633$

56

CITY OF SUGAR LAND

DEBT SERVICE REQUIREMENTS TO MATURITY

TOTAL OF ALL DEBT OUTSTANDING*

FY Ending

September 30 Principal Interest Total

2014 11,092,441$ 4,345,316$ 15,437,757$

2015 9,897,441 3,965,368 13,862,809

2016 9,092,441 3,614,977 12,707,418

2017 9,187,441 3,262,457 12,449,898

2018 9,027,441 2,904,550 11,931,991

2019 7,220,155 2,583,542 9,803,697

2020 7,167,394 2,292,643 9,460,037

2021 7,252,394 1,990,771 9,243,165

2022 7,097,394 1,686,587 8,783,981

2023 6,892,394 1,386,166 8,278,560

2024 6,747,394 1,098,895 7,846,289

2025 6,062,521 826,682 6,889,203

2026 4,672,521 596,749 5,269,270

2027 3,422,648 424,351 3,846,999

2028 3,552,648 273,029 3,825,677

2029 2,767,648 137,935 2,905,583

2030 2,005,000 40,219 2,045,219

TOTAL 113,157,316$ 31,430,235$ 144,587,551$

* Excludes anticipated new debt

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

Principal Interest

57

CITY OF SUGAR LAND

DEBT SERVICE SCHEDULE OF REQUIREMENTS*

TO MATURITY BY ISSUE

Issue Description Principal Interest Total

2003A General Obligation Refunding 1,980,000$ 147,675$ 2,127,675$

2004 General Obligation New 270,000 4,725 274,725

2004A General Obligation Refunding 115,000 4,700 119,700

2005 General Obligation New & Refunding 1,865,000 341,383 2,206,383

2006 General Obligation New 22,770,000 5,037,081 27,807,081

2006 Certificates of Obligation New & Refunding 745,000 250,309 995,309

2008 Certificates of Obligation New 3,730,000 1,513,691 5,243,691

2008 General Obligation New 5,790,000 2,306,660 8,096,660


2009 General Obligation Refunding 670,000 26,431 696,431

2010 General Obligation New 2,220,000 858,169 3,078,169


2010 General Obligation Refunding 18,645,000 5,220,363 23,865,363

2012 General Obligation Refunding 8,510,000 811,925 9,321,925

2012 General Obligation Refunding 4,255,000 941,050 5,196,050

Sub Total 107,967,316 29,923,647 137,890,963

2005 FBC MUD 1 Assumed Obligations 5,190,000 1,506,587 6,696,587

Sub-Total 5,190,000 1,506,587 6,696,587

Total Debt Requirement 113,157,316$ 31,430,235$ 144,587,551$

* Excludes anticipated new debt

58

General Fund Organizational Chart


City Council

City Manager

Assistant

City Manager

Public Works &Solid Waste

Parks & Recreation

Engineering

AssistantCity Manager

EmergencyManagement

Public Safety

Dispatch

PoliceDepartment

FireDepartment

Executive DirectorCommunity

Development

Planning & CodeServices

Transp. & LongRange Planning

Permits &Inspections

CommunityDevelopment

Executive DirectorManagement

Services

Human Resources

Budget & Research

Accounting

InformationTechnology

Support Services

City AttorneyPublic

Communications

City SecretaryEconomic

Development

Strategic Planning& IGR

59

General Fund

The General Fund is used to account for all transactions not properly includable in other funds. The principal

sources of revenue include property taxes, sales and franchise taxes, licenses and permits, fines and forfeitures, and

charges for services. Expenditures include general administration, fiscal services, support services, business and

intergovernmental, public works, parks and recreation, community development, and public safety. Budgetary fund

balance reflects audited fund balance with adjustments for accrued sales and franchise taxes to properly reflect

funds available for appropriation during the year.

Fiscal Year 2013 Total revenues are projected to be $68,797,820, 1.48% higher than the current budget. Sales and Property Tax,

which make up 72% of revenues, are expected to meet budgeted levels. Major variances from budget are in

licenses and permits, Interest income, other revenue, other taxes, charges for services, and Intergovernmental.

Licenses and permits are projected to be $2,525,434, which is $372,199 or 17.29% higher than budgeted for the

year. Interest income is projected to be $102,500, 65.8% of budget estimates based on lower than anticipated

rates.

Other revenue which includes property insurance recovery, reimbursements, and miscellaneous revenue sources is

projected to be 644,325 or 76.13% higher than budgeted for the year. The increases in revenue are driven by

higher than anticipated insurance recovery, reimbursements for the baseball stadium insurance, and

reimbursements from the Texas Department of Transportation for electricity related to traffic signal operation.

Other taxes of $5,689,596 represent franchise fees and mixed drink tax. This revenue is projected higher than

budget as a result of current trends. Transfers in are projected at $4,230,001 and represent reimbursements for

overhead allocation from the Utility fund, Airport fund, and SLDC reimbursement for Economic Development

staffing.

Total expenditures for FY13 are projected to be $70,016,055. All departments are expected to end the year within

their current budgeted expenditures.

Total fund balance is projected to be $18,003,854 as of September 30, 2013, which is equal to 31% of recurring

operating expenditures. This is greater than the policy requirement 25% or $14,727,831. The $3,276,023 over policy

is available to fund non-recurring expenditures in

fiscal year 2014.

Fiscal Year 2014 Budgeted revenues total $72,312,731. The chart at

right shows a breakdown of General Fund revenues

by type.

Sales tax revenue represents the largest portion of

General Fund Operating revenues at 51%. Sales tax

is highly dependent on economic conditions and can

fluctuate during times of economic uncertainty.

Based on current economic conditions, the budget

includes 2.7% growth in sales tax over FY13

projections.

Property Tax 25%

Sales Tax 46%

Other Taxes 8%

Licenses & Permits

4% Charges for

Services 5%

Fines & Forefeitures

3%

Other 1%

Transfers In 6%

Lease Proceeds

2%

General Fund Revenues

60

The budget incorporates property tax revenues of $17,650,900, which is based on the current tax rate and certified

tax roll for 2013.

The General Fund receives transfers in from the Utility, Surface Water and Airport Funds as reimbursement for

overhead costs as determined by a cost allocation model. A transfer from the Sugar Land Development

Corporation reimburses cost for Economic Development staff and activity. The Sugar Land 4B Corporation

reimburses the General Fund for Economic Development activity but those funds are recorded as charges for

services since the 4B Corporation is not a blended component unit for accounting purposes. The FY14 budget does

not include net revenues from the red light camera program, pending a review of the program by a council

appointed task force.

Interest income is estimated at $102,500, which is the same as projected for FY13 projections. Previously

purchased higher yielding investments have matured and have been reinvested at lower rates, thus income will

remain flat. Revenue from fines & forfeitures is estimated at $2,158,781, which is 3% higher than FY13 projections

and 1.1% higher than FY13 budget.

Budgeted expenditures total $74,851,924 for FY14. Of this total, $65,498,703 is for departmental expenditures and

$9,353,220 is for non-departmental expenditures including transfers, rebates & assignments, debt service and

miscellaneous expenditures.

Recurring changes to the General Fund include a

3% merit pool for employees effective January 1,

2014, implementation of emergency medical

services, additions for operating impacts of capital

projects and increases to the number of personnel.

One time funding of $6,557,751 includes transfers

to CIP from sales tax incentive revenues,

contingency funding, sales tax incentive grants, and

$3,330,826 in one-time items in the departmental

operating budgets. Significant additions to

departmental budgets are described below.

One time additions in General Government total $535,749. One time expenditures include implementation of a

strategic plan in IT and capital equipment for SLtv16 to be purchased with PEG funds. Police include one-time

additions of $406,358 which will be used to upgrade the indoor and outdoor security cameras as well as equipment

for two officers if funding is made available under the COPS grant. The budget does not include funding for the

officers’ salaries and benefits as the positions are dependent on award of the grant. Police also includes $88,000 for

the STEP Wave Grant, which will be utilized for speed enforcement. Fire has one-time additions that total

$2,264,269. One time expenditures include the implementation of EMS services, which includes capital outlays for

vehicles and equipment, as well as training, and the addition of a Battalion Chief to oversee the unit. Additionally,

funding will is allocated for the replacement of engine 5. The fire engine and EMS vehicles will be purchased using

lease/purchase financing. Public safety dispatch additions include two new Public Safety Dispatchers, certification &

education pay for Dispatchers, and one-time and recurring funding necessary to implement the call handling

protocol for providing EMS services in the City.

Budgeted fund balance totals $15,464,661, which is equal to the 25% reserve requirement. A drawdown in fund

balance of $2,539,193 is budgeted for one time expenditures in accordance with the Financial Management Policy

Statements.

General Government

15%

Support Services

3%

Fiscal Services 3%

Public Works 9%

Parks & Recreation

8%


7%

Police Department

25%

Fire Department

17%

Transfers 8%

Rebates & Assignments

5%

General Fund Expenditures

61

CITY OF SUGAR LANDGENERAL FUNDINCOME STATEMENT

FY13 FY14FY12 Current FY13 Base FY14 FY14

Actual Budget Projection Budget Changes BudgetRevenues

Property Taxes 15,624,991$ 16,698,314$ 16,742,982$ 17,650,900$ -$ 17,650,900$Sales Tax 32,401,367 32,622,120 32,622,100 31,395,900 2,119,600 33,515,500Other Taxes 5,536,947 5,366,188 5,689,596 5,695,655 - 5,695,655Licenses & Permits 2,317,039 2,153,235 2,525,434 2,637,853 - 2,637,853Charges for Services 3,257,439 3,175,896 3,361,031 3,542,548 - 3,542,548Fines & Forfeitures 2,103,671 2,135,000 2,095,904 2,158,781 - 2,158,781Other 585,137 365,813 644,325 641,937 - 641,937Intergovernmental 387,398 96,015 82,791 - 88,000 88,000Interest Income 130,945 155,700 102,500 102,500 - 102,500

Operating Revenues 62,344,934 62,768,281 63,866,664 63,826,075 2,207,600 66,033,675Transfers In 3,921,961 4,326,784 4,230,001 4,623,056 - 4,623,056Lease Proceeds - 701,155 701,155 - 1,656,000 1,656,000

Non-operating Revenues 3,921,961 5,027,939 4,931,156 4,623,056 1,656,000 6,279,056Total Revenues 66,266,895 67,796,220 68,797,820 68,449,131 3,863,600 72,312,731

ExpendituresGeneral Government 9,188,663 10,731,005 10,731,005 10,774,526 535,749 11,310,275Support Services 2,477,828 2,497,185 2,497,185 2,541,838 - 2,541,838Fiscal Services 2,288,647 2,415,821 2,415,821 2,455,384 25,000 2,480,384Public Works 6,080,661 6,141,533 6,241,533 7,071,076 6,450 7,077,526Parks & Recreation 4,769,674 5,676,355 5,676,355 5,744,160 10,000 5,754,160Community Development 4,781,122 4,879,301 4,879,301 5,043,033 83,000 5,126,033Police Department 16,923,409 16,911,719 16,911,719 17,825,206 406,358 18,231,564Fire Department 10,236,757 10,809,510 10,809,510 10,712,654 2,264,269 12,976,923

Departmental Expenditures 56,746,761 60,062,429 60,162,429 62,167,877 3,330,826 65,498,703Transfers 7,299,177 5,418,218 5,423,623 3,977,662 1,817,575 5,795,237Rebates & Assignments 2,359,570 3,160,560 2,707,470 2,338,178 1,098,550 3,436,728Debt Service 418,561 492,877 492,877 492,877 - 492,877Miscellaneous 542,444 1,186,986 1,229,656 (682,422) 310,800 (371,622)

Non-departmental Expenditures 10,619,752 10,258,641 9,853,626 6,126,295 3,226,925 9,353,220Total Expenditures 67,366,513 70,321,070 70,016,055 68,294,173 6,557,751 74,851,924

Revenues Over/(Under) Expenditures (1,099,618) (2,524,850) (1,218,236) 154,958 (2,694,151) (2,539,193)Fund Balance - Beginning 20,321,708 19,222,090 19,222,090 18,003,854 18,003,854Fund Balance - Ending 19,222,090$ 16,697,240$ 18,003,854$ 18,158,812$ (2,694,151)$ 15,464,661$

Ending Fund Balance- % of Oper Exp 28% 31% 30% 25%Fund Balance - Requirement 14,691,717 14,727,831$ 15,371,364$ -$ 15,371,364$Over / (Under) Policy 2,005,523 3,276,023$ 2,787,448$ 93,297$

62

GENERAL FUND

SCHEDULE OF REVENUES

FY13 FY14

FY12 Current FY13 Base FY14 FY14

Actual Budget Projection Budget Changes Budget

CURRENT TAXES $15,516,980 $16,491,314 $16,545,200 17,446,100 17,446,100

DELINQUENT TAXES (32,976) 62,000 62,000 69,800 69,800

PENALTY & INTEREST 135,147 145,000 125,000 135,000 135,000

SPECIAL INVENTORY/OVERAGE 5,840 - 10,782 - -

Property Taxes 15,624,991 16,698,314 16,742,982 17,650,900 - 17,650,900

SALES TAXES 32,401,367 30,769,500 30,598,500 31,395,900 31,395,900

S. TAX INCENTIVE AGRMTS 1,852,620 2,023,600 - 2,119,600 2,119,600

Sales Tax 32,401,367 32,622,120 32,622,100 31,395,900 2,119,600 33,515,500

MIXED DRINK TAX 375,070 370,488 425,630 475,630 475,630

ELECTRIC FRANCHISE 3,682,085 3,522,000 3,736,261 3,685,017 3,685,017

GAS FRANCHISE 284,145 285,800 288,540 294,311 294,311

FRANCHISE TELECOMM. 295,017 295,300 296,221 296,221 296,221

MISC. FRANCHISE FEES 168,312 156,600 153,298 154,831 154,831

CABLE TV FRANCHISE 732,318 736,000 789,644 789,644 789,644

Other Taxes 5,536,947 5,366,188 5,689,596 5,695,655 - 5,695,655

BUILDING PERMITS 1,298,146 1,212,375 1,406,106 1,476,411 1,476,411

INFRASTRUCTURE REVIEW 58,705 30,000 40,000 42,000 42,000

RENTAL INSPECTION LICENSE 206,619 196,300 203,935 210,053 210,053

ELECTRICAL PERMITS 107,608 110,250 142,584 149,713 149,713

IRRIGATION PERMITS 50,913 36,750 42,192 44,301 44,301

HEALTH PERMITS 281,529 250,000 275,870 280,008 280,008

HVAC PERMITS 60,559 55,000 128,387 131,597 131,597

LIQUOR PERMITS 29,780 30,000 30,000 30,750 30,750

PLUMBING PERMITS 130,097 144,060 144,060 147,662 147,662

REINSPECTION FEES 14,433 10,600 10,600 10,865 10,865

PARKING PERMITS 20 - - -

SIGN PERMITS 16,854 15,000 15,000 15,375 15,375

FLOOD ZONE DEVEL PERMIT 1,600 1,600 1,640 1,640

CONTRACTOR REGISTRATION 16,200 40,000 51,250 51,250

R-O-W PERMIT 1,700 1,700 1,743 1,743

SOLICITOR PERMITS 6,539 3,800 3,800 3,895 3,895

PERMIT PENALTIES 1,541 1,200 1,200 1,230 1,230

FIRE ALARM PERMITS 23,535 19,600 19,600 20,090 20,090

OTHER FIRE CODE PERMITS 30,161 18,800 18,800 19,270 19,270

Licenses & Permits 2,317,039 2,153,235 2,525,434 2,637,853 - 2,637,853

ADMINISTRATIVE FEES 479,823 489,726 422,906 551,178 551,178

STREET LIGHT CHARGES 101,128 53,800 86,207 76,048 76,048

ANIMAL ADOPTION FEES 40,481 30,200 40,723 40,927 40,927

ANIMAL IMPOUNDMENT FEES 3,253 4,100 2,534 2,547 2,547

POOL ADMISSIONS 6,507 5,800 5,800 5,829 5,829

SWIM LESSIONS 2,411 - - -

FACILITY USAGE CARDS 67,678 66,000 78,000 78,390 78,390

POOL RENTAL 1,078 1,400 1,400 1,407 1,407

P&R BUILDING RENTALS 64,110 85,000 85,000 85,425 85,425

COMM. EVENTS-RECREATION 2,150 - - -

ATHLETIC LEAGUES 5,416 10,000 14,000 14,070 14,070

PAVILION RENTALS 31,551 30,300 30,300 30,452 30,452

CAMP PROGRAMS 129,219 131,970 131,970 132,630 132,630

LIGHT FEES 51,394 46,500 46,500 46,733 46,733

LEISURE CLASSES 83,619 88,000 88,000 88,440 88,440

Description

63

GENERAL FUND


FY13 FY14


Actual Budget Projection Budget Changes BudgetDescription

ATHLETIC FIELD RENTAL 2,888 5,000 5,000 5,025 5,025

SENIOR PROGRAMS 17,747 24,900 24,900 25,025 25,025

MOWING LIENS 990 500 2,500 2,513 2,513

PLAT FEES 40,013 34,400 131,122 131,778 131,778

SITE PLAN FEES 467 2,600 11,600 11,658 11,658

ZONING & CONDITIONAL USE 27,580 24,200 31,314 31,470 31,470

ACCIDENT REPORTS 14,376 12,500 15,653 15,731 15,731

FALSE ALARM FEES 21,519 40,100 35,650 35,828 35,828

FINGER PRINTING 13,270 12,000 12,000 12,060 12,060

EMS Billing

FIRE PROTECTION FEES 2,021,853 1,950,000 2,031,052 2,090,352 2,090,352

HAZ MAT RESPONSE 26,921 26,900 26,900 27,035 27,035

Charges for Services 3,257,439 3,175,896 3,361,031 3,542,548 - 3,542,548

ADMINISTRATIVE COURT FEES 99,984 110,300 110,300 113,609 113,609

DPS FEES - CITY PORTION 10,687 8,300 10,700 11,021 11,021

CHILD SAFETY FINES 138,775 143,600 120,649 124,268 124,268

MUNICIPAL COURT FINES 1,683,016 1,696,800 1,672,753 1,722,936 1,722,936

JUDICIAL EFFICIENCY 4,652 4,300 12,718 13,100 13,100

WARRANT FEES 166,557 171,700 168,784 173,848 173,848

Fines & Forfeitures 2,103,671 2,135,000 2,095,904 2,158,781 - 2,158,781

CASH OVER & SHORT 108 - (112) - - -

CASH OVER & SHORT 30 - - - -

CASH OVER & SHORT 81 - (112) - -

CASH OVER-SHORT (3) - - - -

DONATIONS 48,987 20,600 58,000 58,000 - 58,000

GEN GOV/ REIMBURSEMENT - - 223 223 - 223

MISCELLANEOUS 23,805 36,397 104,630 103,130 - 103,130

PROPERTY INS RECOVERY 176,133 75,000 165,000 165,000 - 165,000

REIMBURSEMENTS 238,333 154,600 224,552 224,552 - 224,552

REPRODUCTION COPIES 4,445 2,000 4,602 4,602 - 4,602

ROYALTIES 1,699 - 1,430 1,430 - 1,430

SALE OF CAPITAL PROPERTY 43,895 50,000 50,000 50,000 - 50,000

UNCLAIMED & NON-CAPITAL 47,058 15,000 35,000 35,000 - 35,000

UNCLAIMED PROPERTY REV. 576 - 1,000 - - -

Other 585,137 365,813 644,325 641,937 - 641,937

STATE GRANT/ TX FORCE SERVICE 38,288 -

CLICK IT OR TICKET GRANT 5,670 - - -

BULLETPROOF VEST 32,640 11,138 11,138 - -

FEDERAL GRANT / JAG GRANT 10,008 -

UASI GRANT 237,600 13,224 - - -

STEP WAVE GRANT 43,518 35,000 35,000 - 88,000 88,000

VICTIM ASSISTANCE GRANT 17,422 20,859 20,859 - -

DWI TASK FORCE - HGAC 10,611 10,611

FEMA 2,251 - - - -

UASI GRANT 5,183 5,183

Intergovernmental 387,398 96,015 82,791 - 88,000 88,000

INTEREST INCOME 101,378 155,700 102,500 102,500 - 102,500

UNREALIZ GAIN/LOSS-INVEST 29,566 - - -

Interest Income 130,945 155,700 102,500 102,500 - 102,500

64

GENERAL FUND


FY13 FY14


Actual Budget Projection Budget Changes BudgetDescription

AIRPORT ENTERPRISE 596,863 622,670 622,670 591,556 591,556

SLDC 387,609 525,653 460,626 325,383 325,383

TRANSFER FROM CAPITAL PRO 202,000 202,000 202,000 202,000 202,000

TRANSFER FROM TIRZ 1 70,000 70,000 70,000 70,000 70,000

TRANSFER FROM FUND 53 139,275 290,000 290,000 458,102 458,102

TRANSFER FROM UTILITIES 2,250,796 2,264,561 2,364,561 2,712,218 2,712,218

TRANSFER FROM SOLID WASTE 10,600 10,600 10,600 263,797 263,797

TRF FR RED LIGHT FUND 073 264,818 341,300 209,544 - -

Transfers In 3,921,961 4,326,784 4,230,001 4,623,056 - 4,623,056

CAPITAL LEASE PROCEEDS - 701,155 701,155 - 1,656,000 1,656,000

Lease Proceeds - 701,155 701,155 - 1,656,000 1,656,000

GRAND TOTAL 66,266,895 67,796,220 68,797,820 68,449,131 3,863,600 72,312,731

65

GENERAL FUND

SCHEDULE OF EXPENDITURES

FY13 FY14 FY14

FY12 Current FY13 Recurring One-Time FY14

Actual Budget Projection Budget Costs Budget

Mayor & City Council 223,285$ 230,929$ 230,929$ 220,573$ -$ 220,573$

City Manager 853,676 726,287 726,287 683,408 - 683,408

Assistant City Manager 649,152 797,593 797,593 903,321 - 903,321

Budget & Research 355,420 369,330 369,330 680,318 - 680,318

Emergency Management 303,672 362,112 362,112 332,030 - 332,030

City Secretary 777,053 771,532 771,532 836,369 22,308 858,677

Communications 684,612 1,065,957 1,065,957 969,816 145,000 1,114,816

Human Resources 1,291,988 1,265,777 1,265,777 1,318,360 47,200 1,365,560

City Attorney 538,025 604,456 604,456 693,122 - 693,122

Information Technology 2,831,809 3,852,019 3,852,019 3,235,114 321,241 3,556,355

Intergov't Relations 257,698 281,130 281,130 353,035 - 353,035

Economic Development 422,273 403,883 403,883 549,060 - 549,060

General Government - Total 9,188,663 10,731,005 10,731,005 10,774,526 535,749 11,310,275

Facilities Management 2,272,712 2,382,218 2,382,218 2,151,414 - 2,151,414

Purchasing 384,592 394,453 394,453 421,545 - 421,545

Fleet Maintenance 474,213 414,319 414,319 506,827 - 506,827

Support Services - Total 3,131,517 3,190,990 3,190,990 3,079,786 - 3,079,786

Accounting 836,035 897,086 897,086 1,013,675 - 1,013,675

Municipal Court 798,923 824,930 824,930 903,761 25,000 928,761

Fiscal Services - Total 1,634,958 1,722,016 1,722,016 1,917,436 25,000 1,942,436

PW - Admin 463,058 585,821 585,821 622,004 - 622,004

Streets & Drainage Maintenance 1,520,409 1,611,870 1,711,870 2,107,373 - 2,107,373

Traffic 3,526,762 3,385,947 3,385,947 3,587,970 - 3,587,970

Stormwater Management 81,940 116,560 116,560 170,846 6,450 177,296

Animal Services 488,492 441,335 441,335 582,883 - 582,883

Public Works - Total 6,080,661 6,141,533 6,241,533 7,071,076 6,450 7,077,526

Parks - Admin 563,115 605,737 605,737 638,614 - 638,614

Development & Maintenance 2,784,456 3,570,798 3,570,798 3,679,218 10,000 3,689,218

Recreation & Special Events 1,422,103 1,499,820 1,499,820 1,426,328 - 1,426,328

Parks & Recreation - Total 4,769,674 5,676,355 5,676,355 5,744,160 10,000 5,754,160

Executive Director 181,456 171,496 171,496 - - -

Permits & Inspections 1,004,743 1,024,777 1,024,777 1,085,983 - 1,085,983

Development Planning 394,137 428,977 428,977 481,006 - 481,006

Transportation & LR Planning 450,505 520,358 520,358 413,128 83,000 496,128

Community & Env. Services 90,665 104,019 104,019 108,979 - 108,979

Food Inspection 163,476 190,714 190,714 219,359 - 219,359

Code Enforcement 246,996 257,066 257,066 288,276 - 288,276

Rental Registration 131,975 136,839 136,839 143,670 - 143,670

City Engineer 2,117,169 2,045,055 2,045,055 2,302,632 - 2,302,632

Community Development - Total 4,781,122 4,879,301 4,879,301 5,043,033 83,000 5,126,033

Police - Administration 832,334 840,157 840,157 883,327 - 883,327

Staff Services Bureau 1,989,061 1,852,360 1,852,360 1,895,406 173,400 2,068,806

TCLEOSE - 23,990 23,990 - - -

Patrol 9,487,314 9,530,719 9,530,719 9,854,624 195,108 10,049,732

Criminal Investigations 2,964,058 2,921,715 2,921,715 3,067,608 - 3,067,608

Detention Center 353,232 362,761 362,761 374,529 - 374,529

SWAT 20,553 22,068 22,068 22,443 - 22,443

Communications 1,276,857 1,357,949 1,357,949 1,727,269 37,850 1,765,119

Police Department - Total 16,923,409 16,911,719 16,911,719 17,825,206 406,358 18,231,564

Fire - Administration 311,986 329,715 329,715 356,642 - 356,642

Emergency Services 8,379,849 8,917,827 8,917,827 8,669,751 2,264,269 10,934,020

HAZ MAT 26,805 43,281 43,281 43,281 - 43,281

Emergency Medical Services - - - - - -

Prevention/Investigation 846,999 851,146 851,146 880,622 - 880,622

Professional Development 671,118 667,541 667,541 762,358 - 762,358

Fire Department - Total 10,236,757 10,809,510 10,809,510 10,712,654 2,264,269 12,976,923

Total Operating Expenditures 56,746,761$ 60,062,429$ 60,162,429$ 62,167,877$ 3,330,826$ 65,498,703$

Department Summary

66

GENERAL FUND

SCHEDULE OF EXPENDITURES

FY13 FY14 FY14

FY12 Current FY13 Recurring One-Time FY14

Actual Budget Projection Budget Costs Budget

Transfers 7,299,177 5,418,218 5,423,623 3,977,662 1,817,575 5,795,237

Rebates & Assignments 2,359,570 3,160,560 2,707,470 2,338,178 1,098,550 3,436,728

Debt Service 418,561 492,877 492,877 492,877 - 492,877

Miscellaneous 542,444 1,186,986 1,229,656 (682,422) 310,800 (371,622)

Total Non-Operating 10,619,752 10,258,641 9,853,626 6,126,295 3,226,925 9,353,220

Total Expenditures 67,366,513$ 70,321,070$ 70,016,055$ 68,294,173$ 6,557,751$ 74,851,924$

Category Summary

Salary & Benefits 42,870,146$ 43,525,271$ 43,525,271$ 47,310,334$ 497,094$ 47,807,428$

Supplies 2,143,463 2,223,252 2,223,252 2,312,761 411,917 2,724,678

Professional Services 6,796,700 8,098,368 8,198,368 6,241,362 93,600 6,334,962

Repairs & Maintenance 1,968,206 2,115,624 2,115,624 4,499,517 53,209 4,552,726

Purchased Services 2,202,860 2,491,755 2,491,755 1,764,921 26,140 1,791,061

Capital Items 765,386 1,608,159 1,608,159 36,482 2,048,866 2,085,348

Other - - - - 200,000 200,000

CIP O&M Impact - - - 2,500 - 2,500

Total Category Expenditures 56,746,761 60,062,429 60,162,429 62,167,877 3,330,826 65,498,703

Total Non-Operating 10,619,752 10,258,641 9,853,626 6,126,295 3,226,925 9,353,220

Total Expenditures 67,366,513$ 70,321,070$ 70,016,055$ 68,294,173$ 6,557,751$ 74,851,924$

Description

67

General Government


Mayor &

City Council

City Manager

ExecutiveDirector

Budget &Research

Human

Resources

InformationTechnology

Assistant

City Manager

EmergencyManagement

City AttorneyPublic

Communications

City SecretaryStrategic

Planning & IGR

68

Mayor and City Council

Services Provided The Mayor and City Council provide direction to the City Manager and staff to achieve service level objectives. The long-

range vision of the City is established by adopting goals, objectives, and strategies. Two regular City Council meetings are

held each month on the first and third Tuesday, as well as a workshop on the fourth Tuesday of the month. The Mayor

and City Council adopt policies and may modify policy recommendations from the City Manager. The annual budget and

five-year CIP, filed by the City Manager, is reviewed by the Mayor and City Council through a series of workshops and

public hearings and is adopted by ordinance per the City’s charter requirements.

FY14 Requests A recurring addition of $4,200 was requested for the Mayor and City Council’s iPad data plans.

Performance Measures: Responsible City Government The City Council measure for “cost-effective delivery of City services” is recurring cost per capita.

FY12 FY13 Current FY13 FY14 Base FY14 FY14

Staffing-Elected Officials* Actuals Budget Projection Budget Changes Budget

FTE Count Totals 7.00 7.00 7.00 7.00 - 7.00

*Not included in historical FTE Summary for the City.

$2.64 $2.73 $2.61

$1.00

$2.00

$3.00

FY12 Actual FY13 Estimate FY14 Estimate

Recurring Cost per Capita

Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 150,870 158,913 158,913 142,568 - 142,568

Supplies 17,072 9,812 9,812 16,874 - 16,874

Professional Services 16,329 18,425 18,425 25,200 - 25,200

Repairs & Maintenance 122 - - - -

Purchased Services 38,892 43,779 43,779 35,931 - 35,931

Category Totals 223,285$ 230,929$ 230,929$ 220,573$ -$ 220,573$

69

City Manager

Services Provided The City Manager is appointed by City Council and serves as Chief Executive Officer of the City. The City Manager is

responsible for making recommendations to City Council, filing the annual budget, five-year CIP, and five-year financial

forecast, and providing leadership and direction to City staff to achieve City Council goals and objectives. On a day-to-

day basis, however, the City Manager focuses on “Responsible City Government,” as evidenced by the emphasis on

implementing City Council direction, managing the City organization through the appointment and removal of

employees, and encouraging citizen engagement and education.

FY14 Requests There were no additions to the City Manager budget in FY14.

Performance Measures: Responsible City Government The City Council measure for “cost-effective delivery of City services” is recurring cost per capita.


Summary by Category Actuals Budget Projection Budget Changes Budget

Salary & Benefits 812,734$ 678,216$ 678,216$ 642,376$ -$ 642,376$

Supplies 15,950 21,700 21,700 19,072 - 19,072

Professional Services 171 - - 2,210 - 2,210

Repairs & Maintenance 122 - - - - -


Category Totals 853,676$ 726,287$ 726,287$ 683,408$ -$ 683,408$

$10.09 $8.58 $8.08

$-

$3.00

$6.00

$9.00

$12.00

$15.00



FTE Count

FY12

Actuals

FY13 Current

Budget

FY13

Projection*

FY 14 Base

Budget

FY14

Changes

FY14

Budget

FTE Count Totals 9.00 8.00 5.00 5.00 - 5.00

* Three positions were moved in FY13:

2 to Public Communications

1 to Assistant City Managers

70

Assistant City Managers

Services Provided

The Assistant City Managers and Executive Directors provide executive oversight, guidance, and support to respective

departments ensuring the priorities of the City are understood and achieved. The Assistant City Managers and Executive

Directors serve on behalf of the City Manager in managing projects, assignments and representing the organization and

the community. The Assistant City Managers and Executive Directors also act in place of the City Manager in his absence.

FY14 Requests

No additions were made to the Assistant City Managers FY14 budget.

Performance Measures: Responsible City Government

The City Council measure for “cost-effective delivery of City services” is recurring cost per capita.

$7.67 $8.24 $9.49

$-

$3.00

$6.00

$9.00

$12.00

$15.00



FTE Count

FY12

Actuals

FY13 Current

Budget

FY13

Projection*

FY 14 Base

Budget

FY14

Changes

FY14

Budget

FTE Count Totals 4.00 4.00 6.00 6.00 - 6.00

* Two positions were moved into the ACM budget in FY13

1 from Executive Director - Community Development

1 from City Managers Office



Salary & Benefits 609,832$ 668,475$ 668,475$ 863,534$ -$ 863,534$

Supplies 4,547 6,789 6,789 8,596 - 8,596



Category Totals 649,152$ 797,593$ 797,593$ 903,321$ -$ 903,321$

71

Budget & Research

Mission StatementTo accurately plan and represent the current and future financial position of the city and assist departments in providing

quality services that meet the needs of the community through research, performance measurement, and resource

management.

Services ProvidedThe Budget & Research Department is responsible for preparing the annual operating budget, the five-year Capital

Improvement Plan and the five-year financial forecast. The department also manages the departmental business plan

process and conducts operational research. The Budget & Research Department provides support to City departments in

the management of the budget by verifying appropriations for contracts and bid documents, processing budget

transfers and carryover requests, and assisting with end of year projections. The department is also responsible for

producing financial analysis for management and City Council so decision makers have a full understanding of the

financial consequences of decisions. Issuance of long-term debt obligations is also carried out by the Budget & Research

Department.

FY14 RequestsThere were no additions to the Budget & Research FY14 budget. However, due to a reorganization, the costs associated

with the central appraisal district were moved from Support Services to Budget and Research.

Performance Measures: Responsible City GovernmentThe City Council measure for “consistent financial policies” is the bond ratings for the City.

AgencyTax Backed

RatingRevenue

Bond Rating

Moody’s Aa1 Aa3

S&P AAA AA+

Fitch AAA AA+

FY12 FY13 Current FY 13 FY14 Base FY14 FY 14


Salary & Benefits 236,199$ 331,680$ 331,680$ 440,479$ -$ 440,479$

Supplies 2,534 3,305 3,305 3,000 - 3,000

Professional & Contractual 106,050 16,300 16,300 217,559 - 217,559


Capital / Other - - - - - -

Category Totals 355,420$ 369,330$ 369,330$ 680,318$ -$ 680,318$

FY12 FY 13 Current FY13 FY14 Base FY14 FY14

FTE Count Actual Budget1

Projection Budget Changes Budget

FTE Count Totals 3.00 5.00 5.00 5.00 - 5.00

1. Two positions were moved from Strategic Planning & Intergovernmental Relations to Budget & Research in Mid FY13.

72

EmergencyManagement

MissionStatementThe City of Sugar Land Department of Emergency Management provides the citizens of Sugar Land Emergency Management leadership and coordination to mitigate, prepare for, respond to, and recover from all emergencies and disasters the City may face.

ServicesProvidedThe Sugar Land Office of Emergency Management is responsible for the all‐hazards emergency management plan for the City. Emergency management provides emergency preparedness, emergency response and emergency recovery services.

FY14RequestsThere were no additions to Emergency Management budget in FY14.

PerformanceMeasures:SafestCityThe City Council measure for “Improved emergency preparedness through better coordination and intergovernmental cooperation” includes completing an annual review of the City’s Emergency Operations Plan (EOP), the City’s Continuity of Operations and Continuity of Government (COOP‐COG) Plan, and the Debris Management Plan, as well as attending all required trainings and exercises.

100% 100% 100%

0%

20%

40%

60%

80%

100%

FY12 Actual FY13 Projection FY14 Estimate

Percent of After Action Items Implemented

Summary by CategoryFY12

Actuals

FY13 Current Budget

FY13 Projection

FY14 Base Budget

FY14 Changes

FY14 Budget

Salary & Benefits 217,160 243,592 243,592 267,084 ‐ 267,084 Supplies 13,110 21,827 21,827 17,093 ‐ 17,093 Professional Services 23,955 74,255 74,255 29,455 ‐ 29,455 Repairs & Maintenance 1,239 1,250 1,250 1,250 ‐ 1,250 Purchased Services 19,223 21,188 21,188 17,148 ‐ 17,148 Capital Items/other 28,985 ‐ ‐ ‐ ‐ Category Totals 303,672$ 362,112$ 362,112$ 332,030$ ‐$ 332,030$

FTE CountFY12

Actuals

FY13 Current Budget

FY13 Projection

FY14 Base Budget

FY14 Changes

FY14 Budget

FTE Count Totals 3.00 3.00 3.00 3.00 ‐ 3.00

73

CitySecretary

MissionStatementAct as stewards of open and accountable government, committed to uphold statutory principles, serve as guardians of the municipal legislative processes and official information, practice integrity and provide excellent service that respects the uniqueness and diversity of the city organization and the community.

ServicesProvidedThe Office of the City Secretary is responsible for three primary functions: legislative service, records management, and public information services. Legislative Services includes managing and coordinating all public meetings, elections, ordinance codification, contract execution, legal notice and proclamation publication, policy adoption and board and commission appointments. For records management the department maintains a Centralized Records Center Archive, an electronic document management system and a database for vehicle registration and property documents. The department also facilitates record disposal. Public information services provided by the department include receptionist and lobby services, response to open records requests and standardized guidelines for city hall displays and meeting presentations.

FY14RequestsThe FY14 budget includes a one‐time request of $20,000 for consultant work relating to the Electronic Document Management System (EDMS). Additionally, the budget includes a one‐time request of $2,308 for labor and supplies to archive the dissolved Fort Bend County Water Control and Improvement District #1 records.

PerformanceMeasures:ResponsibleCityGovernmentThe City Council measure for “Customer Response Management” is number of open records requests received.



Salary & Benefits 638,570$ 620,592$ 620,592$ 691,383$ ‐$ 691,383$ Supplies 30,018 30,292 30,292 64,300 708 65,008 Professional & Contractual 41,113 68,478 68,478 29,700 21,500 51,200 Repair & Maintenance 1,604 729 729 7,700 ‐ 7,700 Purchased Services 59,587 51,441 51,441 43,286 100 43,386 Capital / Other 6,161 ‐ ‐ ‐ ‐ Category Totals 777,053$ 771,532$ 771,532$ 836,369$ 22,308$ 858,677$


FTE Count Actuals Budget Projection Budget Changes Budget

FTE Count Totals 9.20 9.20 9.20 9.20 ‐ 9.20

1,162

1,300

1,400

1,000

1,100

1,200

1,300

1,400

FY12 Actual FY13 Projection FY14 Budget

Number of Open Records Requests Received

74

PublicCommunications

MissionStatementTo clearly and accurately communicate information and the value of key City services, programs, and messages to foster an engaged and informed citizenry; to protect the safety and welfare of our citizens; to provide leadership in further strengthening and promoting Sugar Land’s “brand” as a benchmark for superior municipal government service through all City communication tools including publications, web site, municipal cable television, media relations and emergency communications; and to serve as a resource to City departments for delivery of their specific communication needs.

ServicesProvidedPublic Communications is responsible for providing accurate, responsive and timely information to citizens and the public through a variety of communication tools including publications, website, SLtv16, media relations, public safety and emergency communications. Additionally, Public Communications connects citizens with local government through volunteer opportunities and community education such as Serve Sugar Land, Sugar Land 101, and the Mayor’s Youth Advisory Council. The Community Action Center is housed in Public Communications, and provides staff and resources necessary to address and monitor citizen concerns and answer questions regarding the City and the services it provides.

FY14RequestsOne‐time additions in the Communications budget include $25,000 for graphic design services as needed and $120,000 in Public, Educational and Government (PEG) access television funding. The PEG funds come from a 1% fee on Comcast accounts within the City of Sugar Land and will be used for capital items to increase the quality of broadcasts on SLtv16.

PerformanceMeasures:ResponsibleCityGovernmentThe City Council measures for “Easy access to city government” are citizen satisfaction with City publications, website and municipal television (SLtv16), and number of website hits.



Salary & Benefits 492,400$ 624,528$ 624,528$ 738,256$ ‐$ 738,256$ Supplies 104,794 157,847 157,847 131,623 ‐ 131,623 Professional & Contractual 73,479 109,829 109,829 42,320 25,000 67,320 Repair & Maintenance 81 790 790 844 ‐ 844 Purchased Services 13,858 46,446 46,446 40,773 ‐ 40,773 Capital / Other ‐ 126,517 126,517 16,000 120,000 136,000 Category Totals 684,612$ 1,065,957$ 1,065,957$ 969,816$ 145,000$ 1,114,816$



FTE Count Totals 7.00 9.00 9.00 9.00 ‐ 9.00

91% 92% 94%

70%60% 57%

92% 88% 86%

0%

50%

100%

FY06 FY09 FY12

Citizen Satisfaction with Website, SLTV16 & Publications

Website SLTV16 Publications

812 786

891

500

600

700

800

900

FY12 Actual FY13 Projected FY14 Projected

Thousands

Website Hits

75

HumanResources

MissionStatementServe managers and employees by providing excellent human resources systems and risk management programs to help them be a “Champion Workforce,” helping the organization achieve excellence in delivering public services and impacting the organization’s financial resources through cost effective/efficient government.

ServicesProvidedHuman Resources Department is an internal service provider and offers a full range of human resource services for all city departments. Risk Management reviews insurance for contracts, coordinates worker compensation and liability insurance claims and oversees the work safety program.

FY14RequestsOne‐time requests were included for $47,200 for a Public Safety Fitness Consultant and Public Safety Compensation Study, respectively. A recurring addition of $15,000 is also included for the annual Spring Employee event.

PerformanceMeasures:ResponsibleCityGovernmentThe “Benefit Burden” is the ratio of the cost of defined benefits to the base payroll of employees eligible to receivebenefits. City Council. The City Council measure for “Workers’ Compensation Claims” is the ratio of total claims over number of employees.


FTE Count by Program Actuals Budget Changes Budget Changes Budget

Human Resources * 11.00 11.00 12.00 12.00 ‐ 12.00 FTE Count Totals 11.00 11.00 12.00 12.00 ‐ 12.00

* Risk Analyst is a program employee that is not counted toward the overall FTE count.

34.4%28.6%

0%

10%

20%

30%

40%

Public Sector Avg. (500+ FTEs) FY14 Est

Total City Benefit Burden

0.1600.182 0.169

0.00

0.05

0.10

0.15

0.20

FY12 Actual FY13 Est FY14 Est

Workers' Compensation Claims: Ratio of Total Claims over FTEs


Actuals

FY13 Current Budget

FY13 Projection

FY14 Base Budget

FY14 Changes

FY14 Budget

Salary & Benefits 878,313 907,719 907,719 986,865 ‐ 986,865 Supplies 58,270 64,511 64,511 86,088 ‐ 86,088 Professional Services 116,791 39,395 39,395 56,615 47,200 103,815 Repairs & Maintenance 28,176 39,262 39,262 600 ‐ 600 Purchased Services 171,028 164,365 164,365 188,192 ‐ 188,192 Capital Items/other 39,410 50,525 50,525 ‐ ‐ ‐ Category Totals 1,291,988$ 1,265,777$ 1,265,777$ 1,318,360$ 47,200$ 1,365,560$

76

City Attorney

Mission StatementThe City Attorney’s Office seeks to provide legal services to the City Council, boards and commissions, management, and

employees that:

1. Are timely;2. Are understandable and accessible to the client;3. Achieve the City’s goals within the boundaries of the law;4. Are based on the Department’s independent judgment of the law; and5. Protect the legal interests of the City as a municipal corporation.

Services ProvidedThe City Attorney’s Office provides legal services to the City and the City’s development corporations. These services

include contract review, ordinance preparation, policy review, and prosecution of violations of State law and City

ordinances in Municipal Court.

FY14 RequestsThere were no additions to the City Attorney FY14 budget.

Performance Measures: Responsible City GovernmentThe City Council measure for “cost-effective delivery of City services” is recurring cost per capita.



Salary & Benefits 478,427$ 542,159$ 542,159$ 615,764$ -$ 615,764$

Supplies 6,775 13,573 13,573 14,210 - 14,210



Category Totals 538,025$ 604,456$ 604,456$ 693,122$ -$ 693,122$



FTE Count Totals 5.00 5.00 5.00 5.00 - 5.00

$6.37

$7.15$8.20

$-

$2.00

$4.00

$6.00

$8.00

$10.00

FY12 Actual FY13 Projection FY14 Estimate


77

Information Technology

Mission Statement The mission of the IT department is to provide guidance in an effective, strategic, and fiscally responsible manner for all

technology applications by: maintaining a thorough knowledge of operating systems, applications, and hardware;

providing a secure infrastructure, that promotes the integrity of the electronic data that is collected, stored, and

retrieved; proactively evaluating departmental needs to position them for a successful delivery of service while

providing efficient, effective, reliable, timely and courteous service to all users.

Services Provided The Information Technology Department (IT) provides city‐wide support to all departments by maintaining the integrity

of computer and communications infrastructure of the City. This includes city-wide coordination for advanced systems in

Public Safety, Telecommunications, and GIS. A primary function of the department is end-user support for all city

employees in their use of technology, which involves inventories, configuration, installation, and maintenance of

desktop systems. The department is also responsible for project management from city-wide technology projects to

application development.

FY14 Requests A total $321,241 was added to the IT budget in FY14 for the development of an IT strategic plan, mobile device

management, conference room enhancements, aerial photography, and the upgrade to ESRI Small Gov ELA.

Performance Measures: Responsible City Government The City Council measure for “cost-effective delivery of city services” is recurring cost per capita.

$37.08 $37.90 $37.74

$-

$10.00

$20.00

$30.00

$40.00

$50.00



Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 1,546,357 1,612,217 1,612,217 1,798,201 - 1,798,201

Supplies 37,154 50,324 50,324 21,652 - 21,652

Professional Services 15,094 173,497 173,497 275,680 222,000 497,680

Repairs & Maintenance 760,783 906,448 906,448 1,048,752 - 1,048,752

Purchased Services 309,479 444,848 444,848 90,828 99,241 190,069

Capital Items/other 162,942 664,685 664,685 - - -

Category Totals 2,831,809$ 3,852,019$ 3,852,019$ 3,235,113$ 321,241$ 3,556,354$

FTE Count

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

FTE Count Totals 20.00 21.00 21.00 21.00 - 21.00

78

Strategic Planning & Intergovernmental Relations

Mission StatementThe mission of the City of Sugar Land’s Office of Strategic Planning & Intergovernmental Relations is to ensure the

operations of the City are aligned with the vision and priorities established by the City Council and to ensure the City’s

interests are protected and enhanced through active involvement in the legislative process and strong

intergovernmental relationships.

Services ProvidedThe Office of Strategic Planning & Intergovernmental Relations (IGR) is responsible for the development of the federal

legislative agenda, the state legislative agenda and the local intergovernmental relations agenda – as well as for the

implementation of the ambassador program. Additionally, the Office is also responsible for the leadership and

coordination of the city-wide strategic planning process – including quarterly reporting to the City Council – and for

providing support to the City Manager’s Office by serving as the staff liaison to the City’s multi-cultural program,

Mayor’s Youth Advisory Council and the Sugar Land Legacy Foundation.

FY14 RequestsThere are no additions to the Strategic Planning & IGR budget for FY14. However, the budget does include the full cost of the

contract for a state lobbyist; in FY12 and FY13 this cost was shared with Water Utilities.

Performance Measures: Responsible City GovernmentThe City Council measure for “cost-effective delivery of city services” is recurring cost per capita.



Salary & Benefits 201,687$ 199,467$ 199,467$ 214,435$ -$ 214,435$

Supplies 2,458 4,351 4,351 14,125 - 14,125



Category Totals 257,698$ 281,130$ 281,130$ 353,035$ -$ 353,035$


FTE Count by Program Actuals Budget Projection Budget Changes Budget

FTE Count Totals1

3.00 3.00 3.00 3.00 - 3.00

1. Two positions included in this count are program positions and therefore do not count towards the total FTE count.

$3.05 $3.33$4.18

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00


Intergovernmental RelationsRecurring Cost per Capita

79

Economic Development

Mission StatementThe mission of the City of Sugar Land’s Economic Development Department is to facilitate the creation of a sustainable

business environment that promotes a consistent, quality economy that enhances the standard of living for our

residents and to provide the necessary financial resources for the City of Sugar Land through an expanded and

diversified tax base.

Services ProvidedThe Economic Development program is responsible for several services including targeted business recruitment,

business retention, expansion, and development; business incentives, and revenue enhancement and diversification.

Marketing on the regional, national, and international level is conducted along with retail activity analysis.

Administration of funds, agreements, and project management services are also fulfilled under the leadership of City

Council, City administration, and associated boards and committees.

FY14 RequestsThere were no additions to the Economic Development budget for FY14. Most operating costs are included in the Sugar

Land Development Corporation and Sugar Land 4B Corporation budgets, which are approved by the board of directors

for each corporation.



Salary & Benefits 419,363$ 398,893$ 398,893$ 549,060$ -$ 549,060$

Professional & Contractual - 4,055 4,055 - - -

Purchased Services 2,910 985 985 - - -

Category Totals 422,273$ 403,933$ 403,933$ 549,060$ -$ 549,060$


FTE Count Totals 5.00 5.00 6.00 6.00 - 6.00

80

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81

Support Services

Mission Statement The Mission of Support Services is to use available resources, ethical principles, and professional practices to deliver

superior and responsive internal services to City customers while maximizing effectiveness and minimizing costs in the

areas of purchasing, facilities management, and fleet services.

Services Provided The Support Services Department is committed to maintaining the City’s ability to accomplish essential functions of

government while continuing to preserve the integrity of the City. The Department consists of Purchasing, Fleet, and

Facilities. Support Services provides purchasing oversight for compliance, accountability, as well as fleet and building

purchases, maintenance and repair.

Programs of Service Support Services oversees and directs Administration, Purchasing, Fleet and Building Services. Purchasing oversees

competitive purchasing, surplus/salvage city auction management, purchasing training, emergency

management/resource management. Facilities Management manages a maintenance and improvement program,

retirement of assets, immediate repair, special projects, and new vertical construction projects. Fleet Maintenance

maintains nearly 300 vehicles along with a number of large and small pieces of machinery.

FY14 Requests There are no additions to the Support Services Department.



Purchasing 5.00 5.00 5.00 5.00 - 5.00

Facilities 9.00 9.00 9.00 9.00 9.00

Fleet 5.00 5.00 5.00 5.00 - 5.00

FTE Count Totals 19.00 19.00 19.00 19.00 - 19.00

Summary by Type

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

Facilities Management 2,272,712 2,382,218 2,382,218 2,151,414 - 2,151,414

Purchasing 384,592 394,453 394,453 421,545 - 421,545

Fleet Maintenance 474,213 414,319 414,319 506,827 - 506,827

Category Totals 3,131,517$ 3,190,990$ 3,190,990$ 3,079,786$ -$ 3,079,786$

Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 1,331,951 1,282,538 1,282,538 1,411,679 - 1,411,679

Supplies 200,800 173,083 173,083 183,514 - 183,514

Professional Services 1,239,562 1,325,447 1,325,447 1,083,178 - 1,083,178

Repairs & Maintenance 228,963 287,458 287,458 261,484 - 261,484


Capital Items/other 20,624 5,367 5,367 - - -

Category Totals 3,131,517$ 3,190,990$ 3,190,990$ 3,079,786$ -$ 3,079,786$

82

Accounting

Mission Statement The mission of the Office of Accounting is to identify, record, and report financial transactions in a timely manner in

compliance with Accounting Standards and provide reliable and cost effective accounting services.

Programs of Service The Accounting program provides payroll, accounts payable, capital assets, grant management, general ledger, internal

controls and administrative services.

FY14 Requests Recurring additions total $31,025 to upgrade a part time Accounts Payable Specialist to fulltime status.

Performance Measures: Responsible City Government The City Council’s measurement for Responsible City Government is based on the findings of an independent auditor.

Below are the auditor’s opinions and comments for the past three fiscal years.

Fiscal Year Audit

Opinion Management

Comments

2010 Unqualified 0

2011 Unqualified 0

2012 Unqualified 0

Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 735,419 777,353 777,353 893,744 - 893,744

Supplies 9,135 9,286 9,286 9,645 - 9,645


Repairs & Maintenance 414 410 410 500 - 500


Capital Items/other 5,215 5,215 - - -

Category Totals 836,035$ 897,086$ 897,086$ 1,013,677$ -$ 1,013,677$

FTE Count

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

Accounting 11.50 10.50 10.50 10.50 0.50 11.00

FTE Count Totals 11.50 10.50 10.50 10.50 0.50 11.00

83

MunicipalCourt

MissionStatementThe Mission of Municipal Court is to maintain the City’s judicial integrity by ensuring all City resources are effectively managed in compliance with all legal and policy requirements and promoting mutual trust by operating in a safe and transparent environment and providing consistent, effective and efficient services.

ServicesProvidedMunicipal Court is responsible for providing arraignments and trail, photo enforcement appeals, warrant servicing, accurate reporting and customer service.

FY14RequestsThe FY14 budget includes a one‐time request of $25,000 for cameras at Municipal Court.



Salary & Benefits 699,145$ 710,589$ 710,589$ 785,141$ ‐$ 785,141$ Supplies 14,223 15,571 15,571 18,248 ‐ 18,248 Professional & Contractual 35,091 37,694 37,694 47,401 ‐ 47,401 Repair & Maintenance 1,479 1,700 1,700 3,279 ‐ 3,279 Purchased Services 48,985 59,376 59,376 49,692 ‐ 49,692 Capital / Other ‐ ‐ ‐ ‐ 25,000 25,000 Category Totals 798,923$ 824,930$ 824,930$ 903,761$ 25,000$ 928,761$



Municipal Court 12.00 12.00 12.00 12.00 ‐ 12.00 FTE Count Totals 12.00 12.00 12.00 12.00 ‐ 12.00

84

Public Works


City Manager

Assistant CityManager

Public WorksAdministration

Traffic Animal ServicesStreet &Drainage

Maintenance

StormwaterMaintenance

85

Public Works

Mission Statement The Sugar Land Public Works Department will strive to enhance the quality of life for all residents by providing safe,

reliable and effective services consistent with the stated goals of the community.

Services Provided The Public Works Department is responsible for the repair, operation and maintenance of the City’s public streets, traffic

control devices, sidewalks, bridges, drainage system, solid waste, recycling, stormwater, water conservation, and animal

services. The Department administers a number of contracts with private sector firms for a range of goods and services

that play an important role in effectively maintaining the City’s infrastructure and providing essential services.

Programs of Service The Administration program manages components common to all divisions such as customer service, emergency

management, the safety program, public education, personnel management, infrastructure data capture, asset

management and event assistance. The Street & Drainage Maintenance program is responsible for the administration

and operation of public streets, sidewalks, and bridges along with maintenance of sewer lines and open ditches. The

Traffic program is responsible for the engineering, maintenance, and operation of all traffic control and traffic calming

devices within the City limits, and includes maintenance and monitoring of traffic signals, school zones, regulatory signs,

street name signs and public information signs located on all City streets, and the railroad wayside horn system. The

Stormwater Management program is responsible for developing and implementing the City’s Storm Water

Management Program and water quality guidelines for storm water discharge as required by federal and state agencies.

The Water Conservation program is overseen by Public Works but housed in the Water Utilities Fund. Animal Services

operates the City’s animal shelter and enforces animal-related City ordinances.

FY14 Requests The Street & Drainage Maintenance program has a recurring addition of $300,000 for street rehabilitation and

maintenance.

The Stormwater Management program includes $33,463 for an Environmental Services Inspector position, with the

salary split between this division and the Solid Waste Fund. The position also has a one-time addition of $7,550, which

includes $550 for supplies, $1,000 for professional services, and $6,000 for purchased services.

Animal Services includes a recurring addition of $41,150 to upgrade the part-time Veterinary Technician to full-time

status.

Performance Measures: Mobility for People The City Council measure for “Quick Response to Traffic Problems and Issues” is citizen response to the bi-annual citizen satisfaction survey. The latest survey was finalized and released at the end of FY12.

15%

56%

23%

6% 4%

0%

20%

40%

60%

Excellent Good Fair Poor Don't Know

Traffic Management

86

Public Works

Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 2,388,986 2,429,808 2,429,808 2,858,596 - 2,858,596

Supplies 278,393 302,855 302,855 339,407 250 339,657

Professional Services 2,810,079 2,905,916 3,005,916 3,466,291 200 3,466,491



Capital Items/other 79,345 - - - -

Category Totals 6,080,661$ 6,141,533$ 6,241,533$ 7,071,076$ 6,450$ 7,077,526$

Summary by Type

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

Public Works Admin 463,058 585,821 585,821 622,004 - 622,004

Street & Drainage Main. 1,520,409 1,611,870 1,711,870 2,107,373 - 2,107,373

Traffic 3,526,762 3,385,947 3,385,947 3,587,970 - 3,587,970

Stormwater Management 81,940 116,560 116,560 170,846 6,450 177,296

Animal Services 488,492 441,335 441,335 582,883 - 582,883

Category Totals 6,080,661$ 6,141,533$ 6,241,533$ 7,071,076$ 6,450$ 7,077,526$

FTE Count

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

Public Works Administration 5.50 6.50 6.50 6.50 - 6.50

Streets 14.40 15.40 17.40 17.40 - 17.40

Traffic 11.00 11.00 9.00 9.00 - 9.00

Stormwater Management 1.00 1.00 1.00 1.00 0.50 1.50

Animal Services 7.00 7.00 7.00 7.00 0.50 7.50

FTE Count Totals 38.90 40.90 40.90 40.90 1.00 41.90

87

Parks & Recreation


City Manager

Assistant

City Manager

ParksAdministration

ParksDevelopment &

Maintenance

Recreation &Special Events

88

Parks & Recreation

Mission Statement The Mission of the Sugar Land Parks & Recreation Department is to create and maintain unparalleled recreational opportunities through unique, high quality parks and public spaces that enhance the community.

Services Provided The Parks & Recreation Department is responsible for planning, developing, implementing and managing parks, City

Right of ways, special events, recreation and leisure services.

Programs of Service Administration is responsible for implementing the programs, policies and services established under the leadership of

City Council, City administration, and associated advisory boards of the City. Development & Maintenance is responsible

for the planning, design, and construction of park facilities, managing right-of-way and park area landscape, pest control,

custodial services and repairs. Recreation & Special Events creates, manages and delivers City-hosted events and

cultural activities, oversees leisure classes, youth sports associations, senior leisure classes and maintains and operates

the municipal pool, as well as managing a contract providing swimming lessons and pool usage for swim teams.

FY14 Requests FY14 additions to the Parks & Recreation Departmental budget include the creation of a full-time Recreation Specialist

from a part-time position at the Senior Center. The budget includes an increase of $20,000 for Park Maintenance

overtime and $10,000 for the “Trees Across Sugar Land” program. Additionally, a one-time addition of $10,000 is

included for an Organic Fertilizer Program.

Performance Measures: Well Planned Community & Great Place to Live The performance measure for a Well Planned Community & Great Place to Live is based on the most recent citizen

survey.

30%

56%

11%

3%

0%

20%

40%

60%

Excellent Good Fair Poor

Parks: Quality of Services

89

Parks & Recreation


FTE Count By Program Actuals Budget Projection Budget Changes Budget

Parks Administration 6.00 6.00 6.00 6.00 - 6.00

Parks Development & Maintenance 15.00 15.00 15.00 15.00 - 15.00

Recreation & Special Events 18.94 16.77 17.27 17.27 0.50 17.77

Program Totals 39.94 37.77 38.27 38.27 0.50 38.77

Summary by Type

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

Park Administration 563,115 605,737 605,737 638,614 - 638,614

Parks Development & Maintenance 2,784,456 3,570,798 3,570,798 3,643,210 10,000 3,653,210

Recreation & Special Events 1,422,103 1,499,820 1,499,820 1,462,336 - 1,462,336

Category Totals 4,769,674$ 5,676,355$ 5,676,355$ 5,744,160$ 10,000$ 5,754,160$

Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 2,058,625 2,193,136 2,193,136 2,366,765 - 2,366,765

Supplies 204,215 200,750 200,750 201,127 10,000 211,127

Professional Services 1,691,630 2,499,229 2,499,229 540,572 - 540,572

Repairs & Maintenance 102,890 85,928 85,928 2,074,059 - 2,074,059


Capital Items/other 54,154 28,379 28,379 20,482 - 20,482

Category Totals 4,769,674$ 5,676,355$ 5,676,355$ 5,744,160$ 10,000$ 5,754,160$

90

Community Development & Engineering


City Manager

Assistant City Manager

Engineering

Executive Director


Food Inspection

Community Development Block Grant

Planning & Code Services

Code Enforcement

Rental Registration

Planning

Transportation & LR Planning

Permits & Inspections

91


Mission Statement To realize the City’s vision of a safe, beautiful, well-planned community by supporting growth and maintaining existing

development through fair and consistent education, regulation, and coordination coupled with excellent customer

service.

Services Provided Community Development is responsible for Permits & Inspection, Planning & Code Services, Transportation & Long

Range Planning, and Community Development. Special projects and assignments on behalf of the City Manager and

community are also carried out.

Programs of Service Permits & Inspections provide plan review and other permit and inspection services that ensure code compliance in the

development and redevelopment of buildings and their components. Planning & Code Services reviews plats, site plans,

and rezoning applications to ensure compliance with City development policies and codes as well as oversees code

enforcement, rental registrations, and Planning. The Transportation & Long Range Planning department is responsible

for transportation planning, identification of related funding mechanisms and coordination with outside agencies.

Management of established transportation programs, optimization of transportation efforts through code, standard,

and process improvements are also carried out. Strategic projects are completed to develop policy guidance and

implementation as they relate to mobility. Community Development is responsible for health inspections as well as the

Community Development Block Grant Program.

FY14 Requests A one-time amount of $83,000 was added to the Transportation and Long Range Planning budget in FY14 for Phase II of

the Land Use Plan.

Performance Measures: Well Planned Community & Livable Neighborhoods The City measure for “Predictable, compatible land uses through zoning and comprehensive planning” is the percent of

citizens who agree that Sugar Land is a well-planned community. The most recent survey results are shown below.

41%

52%

3% 2% 2%

0%

10%

20%

30%

40%

50%

60%

StronglyAgree

Agree Neutral Disagree StronglyDisagree

Sugar Land is a Well-Planned Community

51%

44%

5% 1%

0%

10%

20%

30%

40%

50%

60%

Excellent Good Fair Poor

Quality of Life in Your Neighborhood

92


Summary by Type

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

Executive Director 181,456 171,496 171,496 - - -

Permits & Inspections 1,004,743 1,024,777 1,024,777 1,085,983 - 1,085,983

Development Planning 394,137 428,977 428,977 481,006 - 481,006

Transp.& Long Range Plan 450,505 520,358 520,358 413,128 83,000 496,128

Community & Development 90,665 104,019 104,019 108,979 - 108,979

Food Inspection 163,476 190,714 190,714 219,359 - 219,359

Code Enforcement 246,996 257,066 257,066 288,276 - 288,276

Rental Registration 131,975 136,839 136,839 143,670 - 143,670

Category Totals 2,663,953$ 2,834,246$ 2,834,246$ 2,740,401$ 83,000$ 2,823,401$

Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 2,347,924 2,447,015 2,447,015 2,481,339 - 2,481,339

Supplies 58,736 68,894 68,894 69,807 - 69,807




Capital Items/Other 30,960 5,100 5,100 - - -

Category Totals 2,663,953$ 2,834,246$ 2,834,246$ 2,740,401$ 83,000$ 2,823,401$

FY 12 FY13 Current FY13 FY14 Base FY14 FY 14


Executive Director 2.00 1.00 - - - -

Permits & Inspections 15.08 15.08 15.08 15.08 - 15.08

Development Planning 5.00 5.00 5.00 6.00 - 6.00

Transp.& Long Range Plan 3.00 4.00 4.00 4.00 - 4.00

Community & Env Services 1.00 1.00 1.00 1.00 - 1.00

Food Inspection 2.00 3.00 3.00 3.00 - 3.00

Code Enforcement 4.00 4.00 4.00 4.00 - 4.00

Rental Registration 2.00 2.00 2.00 2.00 - 2.00

FTE Count Totals 34.08 35.08 34.08 35.08 - 35.08

93

Engineering

Mission StatementAs the engineering authority for the City, the Engineering Department provides expertise and regulatory guidance for allplanning, design and construction of CIP and development projects within our jurisdiction and manages and maintainsmaster plans as required through the comprehensive plan. We develop business processes and control mechanisms,including coordination with outside agencies, to ensure projects are on-time and within budget with complete andaccurate reporting. The Engineering Department is committed to maintaining a high level of professionalism throughopen lines of communication and transparency while delivering superior customer service.

Services ProvidedThe Engineering Department provides centralized support to owner and stakeholder departments for development of

the CIP and design and construction of capital projects and external services dealing with public infrastructure related to

development improvements, floodplain regulations and adherence to City regulations, development code and

engineering design standards. In addition, the department manages all real estate services and master plan updates.

These services are focused on consistency and efficiency for success and rely on sound communication throughout the

department in order to accomplish the large amount of work that is part of these services.

FY14 RequestsThere are no additions to the Engineering budget in FY14.

Performance Measures: Well Planned CommunityThe department strives to meet the City Council’s goal of a “Well Planned Community.” According to the most recentCitizen Survey, “93% agree with the statement: ‘Sugar Land is a well-planned community that ensures compatible landuse for residential, office, and retail purposes.’”


Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 1,828,415 1,829,788 1,829,788 2,079,365 - 2,079,365

Supplies 47,255 46,600 46,600 47,800 - 47,800




Capital Items/Other 39,718 - - - -

Category Totals 2,117,169$ 2,045,055$ 2,045,055$ 2,302,632$ -$ 2,302,632$



Engineering 20.00 21.00 21.00 21.00 - 21.00

FTE Count Totals 20.00 21.00 21.00 21.00 - 21.00

94

Police Department & Public Safety Dispatch


City Manager

Assistant CityManager

PoliceAdministration

Staff ServicesBureau

Detention

CriminalInvestigations

Patrol

SWAT

Public Safety

Dispatch

95


Mission Statement The Sugar Land Police Department places an emphasis on quality law enforcement, crime prevention, and community

policing. The overall goal of the organization is to develop partnerships and joint problem-solving techniques with the

community that will increase the safety and quality of life for residents and visitors. Sugar Land Public Safety Dispatch

provides support to the City’s Public Safety operations and the citizens of Sugar Land through a specialized

communications network in the form of radio and computer transmissions, the use of specialized computer systems and

the operations of emergency, as well as non-emergency telephone communications systems.

Services Provided The Sugar Land Police Department provides quality police services in an active and efficient manner to the citizens of

Sugar Land, daily business population, pass-through commuters, shoppers, and visitors. The Police Department operates

under the Beat Accountability System, which keeps officers close to one area. The City is divided into five beats, with

officers assigned to each area partnering with residents to increase safety in the community. Public Safety Dispatch is

housed with the Police Department and provides dispatching to both the Police and Fire Departments.

Programs of Service The Administration program is responsible for community relations, beat accountability, financial management,

accreditation, policy establishment and compliance, internal affairs, red light camera enforcement and overall

administration of the department. Patrol provides response to calls for service, active patrol, general traffic

enforcement, directed assignments, traffic and DWI investigations, public education and presentations, new personnel

training, court testimony, house watches, oversight of C.A.S.T. and Citizen’s Police Academy, bicycle patrol, honor guard,

Municipal Court Bailiff, and security at public meetings. Special Weapons and Tactics (S.W.A.T.) is part of a multi-

jurisdictional taskforce that serves felony warrants, responses to hostage/barricaded situations, surveillance and other

tactical call-outs beyond normal patrol functions. The Criminal Investigations program provides prompt responses to

crime scenes with investigators who collect, correlate, and analyze facts and evidence in each case, process and

document the evidence and property, interview victims and witnesses of the crime, provide testimony for court and

follow up with crime victim’s compensation, along with fingerprinting for civilians needing passports, concealed

handgun licenses, and various occupations. Support Services is composed of four entities: Training, which is responsible

for the coordination and implementation of all police personnel training and recruitment of new personnel; Records,

which is responsible for processing, maintaining, and securing the official records of the Police Department and

providing a primary call taker/receptionist for the department, Detention, which is responsible for housing detainees

and Fleet & Equipment Services, which is responsible for maintaining the department’s fleet vehicles. Public Safety

Dispatch answers calls routed through emergency and non-emergency phone systems for the purpose of providing

assistance from Police, Fire, Animal Control, Public Works, Traffic, and other City departments. The calls are transferred

to the appropriate department and resources are dispatched to the site via radio, computer, or other electronic devices.

FY14 Requests Two dispatcher positions are budgeted to start mid-year with recurring additions of $60,928 and one-time additions of

$1,050. There are also one-time additions of $36,800 and recurring additions of $10,080 to support EMS call handling

protocols by Dispatch which totals $46,880. The one-time additions in Police total $280,508 of which $148,758 is for

Patrol Impact Team (COPS Grant) equipment which will be needed if the city receives the COPS grant. The budget does

not include funding for new Police Officers associated with the grant. In Staff Services there is $131,750 for the upgrade

of indoor and outdoor security cameras. Recurring additions total $34,894 and include $26,794 for the Patrol Impact

Team, and $8,100 for the rental vehicle for special crimes.

96


Performance Measures: Safest City in America

The City Council measure for “Rapid, Effective, and Coordinated Response to an Emergency for Police” is average

response time to a Priority I emergency.

The City Council measure “Police work highly visible with people feeling safe and confident in the response” is citizen

response to the bi-annual citizen satisfaction survey.

02:47

05:00 05:00

00:00

00:43

01:26

02:10

02:53

03:36

04:19

05:02

05:46

FY12 Actual FY13 Est FY14 Est

Average Response Time to an Emergency

2% 3% 5%

46%

55% 60%

51% 41% 34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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Summary by Type

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

Police Administration 832,334 840,157 840,157 883,327 - 883,327

Support Services 1,989,061 1,852,360 1,852,360 1,896,554 173,400 2,069,954

TCLEOSE 23,990 23,990 - - -

Patrol 9,487,314 9,530,719 9,530,719 9,853,476 195,108 10,048,584

Criminal Investigations 2,964,058 2,921,715 2,921,715 3,067,608 - 3,067,608

Detention Center 353,232 362,761 362,761 374,529 - 374,529

SWAT 20,553 22,068 22,068 22,443 - 22,443

Public Safety Dispatch 1,276,857 1,357,949 1,357,949 1,727,269 37,850 1,765,119

Category Totals 16,923,409$ 16,911,719$ 16,911,719$ 17,825,206$ 406,358$ 18,231,564$

Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 15,456,942 15,526,296 15,526,296 16,412,005 88,000 16,500,005

Supplies 788,138 724,698 724,698 747,188 19,092 766,280



Purchased Services 300,798 336,810 336,810 228,672 600 229,272

Capital Items/other 38,252 21,216 21,216 - 247,866 247,866

Category Totals 16,923,409$ 16,911,719$ 16,911,719$ 17,825,206$ 406,358$ 18,231,564$



Police Administration 8.00 8.00 8.00 8.00 - 8.00

Support Services 16.00 15.00 15.00 15.00 - 15.00

Patrol 111.30 111.30 111.30 111.30 - 111.30

Criminal Investigations 31.50 31.50 31.50 31.50 - 31.50

Detention Center 6.00 6.00 6.00 6.00 - 6.00

Public Safety Dispatch 20.00 22.00 22.00 22.00 2.00 24.00

FTE Count Totals 192.80 193.80 193.80 193.80 2.00 195.80

98

Fire Department


City Manager

AssistantCity Manager

FireAdministration

EmergencyServices

Planning &Development

Prevention &Investigation

PublicEducation

99

Fire Department

Mission StatementThe Mission of the Sugar Land Fire Department is to offer excellent service by collaborating, acting with integrity and

exhibiting trust; creating a safe place to live, work, and play.

Services ProvidedThe Sugar Land Fire Department provides core emergency services, including fire and emergency medical services, to

the citizens of Sugar Land, ETJ population, daily business population, commuters, shoppers, and visitors. The Fire

Department operates out of seven fire stations, with six stations located within the city limits and one station in the ETJ.

Programs of ServiceAdministration is responsible for strategic planning, intergovernmental relations, human resources management, and

overall administration of the department. Emergency Services provides fire suppression, emergency medical services,

technical rescue, aircraft rescue, firefighting, hazardous materials response, and aquatic rescues.

Prevention/Investigation & Public Education provides fire protection engineering, fire code enforcement, and fire

investigations to determine the cause and origin of fires. Public Education engages in a variety of public outreach

programs including home safety surveys, smoke alarm programs, and a citizens’ fire academy to promote fire safety

awareness in homes and businesses in Sugar Land. Planning & Development is responsible for planning, professional

standards, professional development, and training.

FY14 RequestsThe one-time additions in Fire total $2,264,269, and are primarily related to the implementation of EMS services within

the City. Capital items total $1,656,000 for the replacement of Engine 5 as well as EMS vehicles and equipment. The

remaining $608,269 in one-time funding is related to the addition of a Battalion Chief, overtime for paramedic training,

professional services and recruiting that are needed to implement a city operated EMS Program beginning in January

2015.

Performance Measures: Safest City in AmericaThe City Council measure for “Rapid, effective, and coordinated response to an emergency for Fire and EMS” is average

response time to an emergency.

05:09

05:12

05:21 05:21

05:02

05:07

05:11

05:15

05:20

05:24

FY11 Actual FY12 Est FY13 Est FY14 Est

Average Response Time to an Emergency

100

Fire Department

Summary by Type

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

Fire Administration 311,986 329,715 329,715 356,642 - 356,642

Emergency Services 8,379,849 8,917,827 8,917,827 8,669,751 2,264,269 10,934,020

Haz Mat 26,805 43,281 43,281 43,281 - 43,281

Prevention/Investigation 846,999 851,146 851,146 880,622 - 880,622

Planning & Development 671,118 667,541 667,541 762,358 - 762,358

Category Totals 10,236,757$ 10,809,510$ 10,809,510$ 10,712,654$ 2,264,269$ 12,976,923$

Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 9,340,827 9,342,297 9,342,297 10,063,891 409,094 10,472,985

Supplies 249,886 297,184 297,184 275,414 199,175 474,589




Capital Items/Other 264,835 701,155 701,155 - 1,656,000 1,656,000

Category Totals 10,236,757$ 10,809,510$ 10,809,510$ 10,712,654$ 2,264,269$ 12,976,923$



Fire Administration 3.00 3.00 3.00 3.00 - 3.00

Emergency Services 90.00 90.00 89.00 89.00 1.00 90.00

Prevention/Investigation 8.00 8.00 8.00 8.00 - 8.00

Planning & Development 6.00 6.00 7.00 7.00 - 7.00

FTE Count Totals 107.00 107.00 107.00 107.00 1.00 108.00

101

Non-Departmental

Services Provided Non-departmental is used to account for expenditures and transfers that are not assigned to any one department.

Transfers Interfund transfers are budgeted in non-departmental. Transfers are made to the Fleet and High Tech replacement

funds for replacement of vehicles and technology equipment, the CIP fund for pay-as-you-go CIP projects, the SPA debt

reduction funds, and the airport for property taxes paid on airport property as per policy. Of the $5.79 million in

transfers, $1.82 million is considered one-time funding for capital projects, Fleet and High Tech replacement transfers.

Rebates and Assignments The City has seven in-City MUDs eligible for a rebate of a percentage of the City taxes collected from property within the

district. Five incentive agreements are monitored for sales tax revenues and grant payments are requested in

accordance with each agreement. Sales tax incentive payments are considered one-time expenditures as they are

dependent on revenues.

Debt Service Funds are budgeted for financing through lease/purchase agreements, as necessary. The amount shown in FY14 is equal

to the current obligations of the City.

Miscellaneous Miscellaneous includes payments for property insurance premiums and deductibles, salary savings, contingency funds,

and other miscellaneous expenditures.

Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Transfers 7,299,177 5,418,218 5,423,623 3,977,662 1,817,575 5,795,237

Rebates & Assignments 2,359,570 3,160,560 2,707,470 2,338,178 1,098,550 3,436,728

Debt Service 418,561 492,877 492,877 492,877 - 492,877

Miscellaneous 542,444 1,186,986 1,186,986 (682,422) 310,800 (371,622)

Category Totals 10,619,752$ 10,258,641$ 9,810,956$ 6,126,295$ 3,226,925$ 9,353,220$

102

Special Revenue Funds

Special Revenue Funds may be used to account for the proceeds of specific revenues that are legally restricted to

expenditures for specified purposes. The City has twelve Special Revenue Funds budgeted for fiscal year 2014.

Court Security FundThe City collects a $3 per violation fee from each defendant found guilty of a misdemeanor. Pursuant to Article

102.017 of the Texas Code of Criminal Procedure, revenues generated from this fee must be deposited into a

special revenue fund. The money collected may be used only to fund court security and includes such items as

metal detectors, surveillance equipment, security personnel, security hardware, security training, or other security

measures.

Fiscal Year 2013

Revenues for FY13 are projected to be $50,322, which includes security fees of $50,250 plus $71 for interest

income. Operating expenditures for FY13 total $60,725, which represents 70% of personnel costs for the Court

Bailiff salary and benefits. Fund balance at 9/30/13 is projected to be $33,030.

Fiscal Year 2014

Revenues budgeted for FY14 total $51,400 and include security fees of $51,300 and $100 in interest income.

Operating expenditures of $73,554 represent 70% of personnel costs for the Court Bailiff. A one-time expenditure

of $15,000 will be used to upgrade the camera system, which will be completed as part of the Police Department’s

camera upgrade. Fund balance at 9/30/14 is estimated to be $10,876.

Court Technology FundThe City collects a $4 fee from each defendant found guilty of a misdemeanor under Article 102.0172 of the Texas

Code of Criminal Procedure. Revenues generated from the fee may only be used to fund court technology such as

computer equipment, imaging systems, electronic kiosks, docket management systems, and electronic ticket

writers.

Fiscal Year 2013

Revenues for FY13 are projected to be $67,904, which includes technology fees of $67,663 and $241 for interest

income. Operating expenditures for FY13 total $119,065 and includes funds for annual maintenance contracts for

the court software and voice response systems, handheld ticket writers, and a payment kiosk. Fund balance at

9/30/13 is projected to be $85,069.

Fiscal Year 2014

Revenues budgeted for FY14 total $68,650, which includes $68,400 for technology fees and $250 in interest

income. FY14 budgeted expenditures total $145,211 of which $64,131 is for the annual maintenance contracts for

court software, $68,780 for Paper Light System to streamline operations, $2,300 for computer workstations, and

$10,000 that will be used toward the upgrade of the court security cameras as part of the Police Department

camera system. Fund balance at 9/30/14 is estimated to be $8,508.

Community Development Block GrantThe U.S. Department of Housing and Urban Development provides eligible metropolitan cities and urban counties

(called "entitlement communities") with annual direct grants that can be used to revitalize neighborhoods, expand

affordable housing and economic opportunities, and/or improve community facilities and services, principally to

benefit low and moderate income persons. Under the Community Development Block Grant guidelines, up to 15%

103

of the block grant may be spent on services toward targeted groups of individuals that live within the City and up to

20% may be spent on administration.

Fiscal Year 2013

Revenues projected for FY13 total $178,406, which represents funds received from Community Block Grant

programs. Operating expenditures total $178,406, and include $55,656 for professional services, and $123,680 for

other contractual services. Fund balance at 9/30/13 is projected to be zero. Funds identified for capital projects in

FY13 are being closed out and re-budgeted in FY14.

Fiscal Year 2014

Revenues for FY14 total $448,805, which represents funds to be received from the Community Block Grant program

and carry-over from FY13. Operating expenditures total $448,805, which include $63,602 for professional services,

$127,203 for other contractual services, and $258,000 designated for capital improvements which will partially fund

construction of Settler’s Way Park upgrades. Fund balance at 9/30/14 is estimated to be zero.

Tourism FundThe Tourism Fund accounts for revenues realized from hotel occupancy taxes. By law, cities with populations of less

than 125,000 must spend at least 1% of hotel tax rate or 1/7 of the budget on advertising, no more than 15% on art

programs and a maximum of 50% on historical preservation. Hotels submit quarterly to the City an occupancy tax

based on 7% of total room receipts.

Sugar Land is home to seven hotels (Best Western, Holiday Inn Express, Drury Inn, Extended Stay, Hyatt Place,

Hilton Garden and Sugar Land Town Square Marriott) with a total of 1,166 rooms. Hotel taxes from the Marriott are

used to pay the debt service on the $10 million Certificates of Obligation that were issued in 2002 by the City to

finance the Sugar Land Conference Center, which is leased and operated by the Marriott. This debt was refunded in

FY10 and the Tourism Fund benefits from a reduction in the transfer to the Debt Service Fund for the payment of

the debt for the Sugar Land Conference Center.

Fiscal Year 2013

Projected revenues for FY13 total $2,022,126, with $2,016,128 in occupancy tax, $1,444 in miscellaneous income,

and $4,554 in interest income. Projected expenditures for FY13 total $2,194,807, which include $580,715 for

marketing, $615,450 for destination development, and $342,381 for government/community destination signage

along state routes. Fund balance at 9/30/13 is estimated to be $2,605,539.

Fiscal Year 2014

Budgeted revenues for FY14 are $2,061,400, with $2,056,400 in hotel occupancy tax and $5,000 in interest income.

Operating expenditures for FY14 total $1,748,061, which include $497,847 for Marketing, $249,000 for Destination

Development, and $101,214 for Tourism Program funding, which includes a new position to assist with program

implementation. A total of $900,000 is also included in the operating expenditures for the design cost of the TIRZ#4

parking garage and plaza infrastructure. The transfer out to the Debt Service Fund for $664,214 is for the debt

service due on the convention center and parking garage. Fund balance at 9/30/14 is estimated to be $2,254,664.

State Seizures FundState seizure funds are deposited into a special fund and used solely for law enforcement purposes, such as salaries

and overtime pay for officers, officer training, specialized investigative equipment and supplies, and items used by

officers in direct law enforcement duties. Seizure funds are acquired through the sale of seized property that was

used in commission of a crime. Sugar Land receives a percentage of the sale of property seized by Sugar Land Police

or the Fort Bend County Narcotics Task Force.

104

Fiscal Year 2013

Projected revenues for FY13 total $9,055, with $8,955 from seizures and $100 in interest income. Projected

expenditures total $46,000, used to purchase a camera system at the Police Department. Projected ending fund at

9/30/13 is $21,891.

Fiscal Year 2014

There are currently no revenues or expenditures budgeted for FY14. Estimated fund balance at 9/30/13 is $21,891.

Federal Seizures FundWhen the City receives equitably shared property, it is deposited in the Federal Seizure Fund. The use of the fund is

not as limited as the shared property was forfeited as a result of a particular federal violation. E.g. use of the funds

for drug enforcement. The funds can be used for law enforcement investigations and other law enforcement

related activities as allowed.

Fiscal Year 2013

Projected revenues for FY13 total $15 from interest income. Projected expenditures total $13,445, used to

purchase audio/video recording equipment for the two Criminal Investigations interview rooms. Projected ending

fund at 9/30/13 is $5,279.

Fiscal Year 2014

There are no revenues or expenses budgeted for FY14. Estimated fund balance at 9/30/14 is $5,279.

Law Enforcement FundChapter 683 of the Texas Transportation Code provides that any vehicle abandoned on public property within the

City may be taken into custody and after efforts to contact the owner have failed, the vehicle may be auctioned. If

still unclaimed by the owner of the vehicle, all proceeds from the sale, up to $1,000, must be set aside to cover the

costs of dealing with future vehicle abandonment, but proceeds in excess of $1,000 may be considered general

revenues and used to fund department activities. The revenue in this fund represents such proceeds and may be

used to fund Police Department activities.

Fiscal Year 2013

Revenue of $2,069 is budgeted for FY13, of which $251 is other income, $30 is from interest income, and $1,788 is

from a transfer. Budgeted expenditures total $10,245 for Special Crimes Unit car rental. Estimated fund balance at

9/30/13 is $3,339.

Fiscal Year 2014

There are no revenues or expenditures budgeted for FY14. Estimated fund balance at 9/30/14 is $3,339.

Local Law Enforcement Block GrantThe Local Law Enforcement Block Grant is a program of the Department of Justice in which a local law enforcement

agency is given a specified amount of funding to underwrite projects to reduce crime and improve public safety.

Fiscal Year 2013

There are no budgeted revenues for FY13 as the City does not anticipate additional grant funding. Additionally,

there are no budgeted expenditures for FY13. Estimated fund balance at 9/30/13 is zero.

Fiscal Year 2014

There are no budgeted revenues for FY14 as the City does not anticipate additional grant funding. Additionally,

there are no budgeted expenditures for FY14. Estimated fund balance at 9/30/14 is zero.

105

Photographic Traffic Signal EnforcementThe 80th legislature included SB1119 that amended the transportation code to allow photographic enforcement of

traffic violations. The act provides for civil penalties that may be imposed on the owner of a vehicle identified by a

camera in violation of a traffic control signal. The act requires the City to deposit revenue generated into a special

fund. Any revenue generated net of costs required to operate, install, and maintain the photographic traffic signal

enforcement equipment, reviewing violations, processing payment and administrative hearings, is to be shared

with the state. The City’s share of net revenue is limited to fund traffic safety programs including pedestrian safety,

public safety, intersection improvements and traffic enforcement.

Fiscal Year 2013

Projected revenues for FY13 total $842,505, and include $841,505 from civil fines from cameras currently located at

the following intersections: Westbound and Eastbound West Airport and Eldridge, Southbound US 59 and Highway

6, Westbound Highway 6 and Lexington, Westbound Highway 6 and US 59, Northbound Dairy Ashford and US 90A,

Westbound Dairy Ashford and US 90A including right hand turn .

Operating expenditures projected for FY13 total $423,416 including $72,392 for administrative cost and $351,024

for operations and maintenance. Net revenue of $419,089 is to be split 50/50 with the State. Fund balance at

9/30/13 is projected to be zero.

Fiscal Year 2014

Budgeted Revenues for FY14 total $1,058,400, which include $1,058,400 from civil fines. Operating expenditures

budgeted for FY14 total $499,990, including $90,490 for administrative cost and $409,500 for operations and

maintenance. Net revenues of $558,410 are to be split 50/50 with the State. The portion retained by the City is not

being allocated in Fy14 pending the outcome of a citizen advisory committee review of the camera enforcement

system. After the committee makes its recommendation, City Council will make a determination of how to use the

City share.

Greatwood Debt Reduction FundAccording to the terms of the Strategic Partnership Agreement (SPA) with the Municipal Utility Districts in

Greatwood, the MUDs will be subject to an out-of-city-service fee for services received from the City after the SPA

effective date and prior to annexation into the City. All revenues deposited in the fund will be reserved for future

retirement of debt that will be assumed by the City when the district is eventually annexed into the City and

dissolved.

Revenues consist of out-of-city service fees and a transfer of a portion of sales taxes collected from the River Park

area, up to $150,000 per year. In addition, commercial areas in Greatwood were annexed for limited purposes

including sales tax, and the City’s portion of the sales tax (excluding the economic development portion) is

transferred to the Debt Reduction Fund.

Fiscal Year 2013

Projected operating revenues total $536,623, which include out-of-city service fees and interest income. Transfers

in of $321,091 are from the General Fund for $150,000 in sales tax revenues from the River Park area and $171,091

from the Greatwood limited purpose annexation area. Ending fund balance at 9/30/13 is projected at $2,150,299.

Fiscal Year 2014

Revenues budgeted for FY14 total $604,955 and include $283,500 for out-of-city service fees, $3,500 for interest

income and $317,955 for transfers in from the General Fund, for sales taxes under the SPA. Revenues are budgeted

to grow due to an increase in the pumpage fee effective January 2013. There are no budgeted expenditures for

FY14. Projected ending fund balance at 9/30/14 is $2,755,254. This fund balance will continue to grow until the City106

annexes the Greatwood MUDs under the terms outlined in the SPA and these funds will be used to pay down any

debt remaining when the area is annexed into the City.

Tara Plantation Debt Reduction FundTara Plantation is a participant in the Groundwater Reduction Plan (GRP). Tara Plantation and the City have not

entered into a SPA but an agreement is expected sometime in the future. The GRP participation agreement

imposed a 20% out-of-city service fee for services received from the City. In anticipation of approval of an SPA,

these fees are being deposited into the Tara Plantation Debt Reduction Fund. These fees will be reserved for future

retirement of debt that will be assumed by the City when the district is annexed into the City and dissolved.

Fiscal Year 2013

Operating revenues are projected at $37,069, which includes out-of-city service fees and interest income. There are

no projected expenditures for FY13. Ending fund balance at 9/30/13 is projected at $124,294.

Fiscal Year 2014

Revenues budgeted for FY14 total $47,725 and include $47,550 for out-of-city service fees and $175 for interest

income. Revenues are budgeted to grow due to an increase in the pumpage fee effective January 2013. There are

no budgeted expenditures for FY14. FY14 projected ending fund balance at 9/30/14 is $172,019. This fund balance

will continue to grow until the City annexes the district in the future.

New Territory Debt Reduction FundAccording to the terms of the SPA with MUDs in New Territory, the MUDs will be subject to an out-of-city-service

fee for services received from the City after the SPA effective date and prior to annexation into the City. All

revenues deposited in the fund will be reserved for future retirement of debt that will be assumed by the City when

the districts are eventually annexed into the City and dissolved. Revenues consist of out-of-city service charges on

pumpage and fire fees along with a transfer of a portion of sales taxes collected from the River Park area, up to

$150,000 per year.

Fiscal Year 2013


in total $150,000 from the General Fund for sales taxes collected in the River Park area. Ending fund balance at

9/30/13 is projected at $2,406,946.

Fiscal Year 2014


income and $150,000 for transfers in from the General Fund, for sales taxes under SPA. Revenues are budgeted to

grow due to an increase in the pumpage fee effective January 2013. There are no budgeted expenditures for FY14.

Budgeted ending fund balance at 9/30/14 is $3,148,102. This fund balance will continue to grow until the City

annexes the New Territory MUDs under the terms outlined in the SPA and these funds will be used to pay down any

debt remaining when the districts are annexed by the City.

107

to grow due to an increase in the pumpage fee effective January 2013. There are no budgeted expenditures for

FY14. Projected ending fund balance at 9/30/14 is $2,755,254. This fund balance will continue to grow until the City

annexes the Greatwood MUDs under the terms outlined in the SPA and these funds will be used to pay down any

debt remaining when the area is annexed into the City.

Tara Plantation Debt Reduction FundTara Plantation is a participant in the Groundwater Reduction Plan (GRP). Tara Plantation and the City have not

entered into a SPA but an agreement is expected sometime in the future. The GRP participation agreement

imposed a 20% out-of-city service fee for services received from the City. In anticipation of approval of an SPA,

these fees are being deposited into the Tara Plantation Debt Reduction Fund. These fees will be reserved for future

retirement of debt that will be assumed by the City when the district is annexed into the City and dissolved.

Fiscal Year 2013

Operating revenues are projected at $37,069, which includes out-of-city service fees and interest income. There are

no projected expenditures for FY13. Ending fund balance at 9/30/13 is projected at $124,294.

Fiscal Year 2014

Revenues budgeted for FY14 total $47,725 and include $47,550 for out-of-city service fees and $175 for interest

income. Revenues are budgeted to grow due to an increase in the pumpage fee effective January 2013. There are

no budgeted expenditures for FY14. FY14 projected ending fund balance at 9/30/14 is $172,019. This fund balance

will continue to grow until the City annexes the district in the future.

New Territory Debt Reduction FundAccording to the terms of the SPA with MUDs in New Territory, the MUDs will be subject to an out-of-city-service

fee for services received from the City after the SPA effective date and prior to annexation into the City. All

revenues deposited in the fund will be reserved for future retirement of debt that will be assumed by the City when

the districts are eventually annexed into the City and dissolved. Revenues consist of out-of-city service charges on

pumpage and fire fees along with a transfer of a portion of sales taxes collected from the River Park area, up to

$150,000 per year.

Fiscal Year 2013


in total $150,000 from the General Fund for sales taxes collected in the River Park area. Ending fund balance at

9/30/13 is projected at $2,406,946.

Fiscal Year 2014


income and $150,000 for transfers in from the General Fund, for sales taxes under SPA. Revenues are budgeted to

grow due to an increase in the pumpage fee effective January 2013. There are no budgeted expenditures for FY14.

Budgeted ending fund balance at 9/30/14 is $3,148,102. This fund balance will continue to grow until the City

annexes the New Territory MUDs under the terms outlined in the SPA and these funds will be used to pay down any

debt remaining when the districts are annexed by the City.

108

CITY SUGAR LAND

SPECIAL REVENUE FUND - COURT SECURITY FUND

INCOME STATEMENT

FY13 FY14



REVENUES

Security Fees 57,279$ 53,183$ 50,250$ 51,300$ -$ 51,300$

Interest Income 89 125 71 100 - 100

Total Revenues 57,368 53,308 50,322 51,400 - 51,400

EXPENDITURES

Personnel Costs 54,934 60,725 60,725 58,554 - 58,554

Capital - - - 15,000 15,000

Total Expenditures 54,934 60,725 60,725 58,554 15,000 73,554

Net Income (Loss) 2,435 (7,417) (10,403) (7,154) (15,000) (22,154)

Fund Balance - Beginning 40,999 43,434 43,434 33,030 33,030Fund Balance - Ending 43,434$ 36,017$ 33,030$ 25,876$ (15,000)$ 10,876$

109

CITY SUGAR LAND

SPECIAL REVENUE FUND - COURT TECHNOLOGY FUND

INCOME STATEMENT

FY13 FY14



REVENUES

Technology Fees 76,353$ 70,911$ 67,663$ 68,400$ -$ 68,400$

Interest Income 268 319 241 250 - 250

Total Revenues 76,621 71,230 67,904 68,650 - 68,650

EXPENDITURES

Operations & Maintenance 58,113 91,715 91,715 64,131 - 64,131

Capital 27,350 27,350 2,300 78,780 81,080

Total Expenditures 58,113 119,065 119,065 66,431 78,780 145,211

Net Income (Loss) 18,508 (47,835) (51,161) 2,219 (78,780) (76,561)

Fund Balance - Beginning 117,722 136,230 136,230 85,069 85,069

Fund Balance - Ending 136,230$ 88,395$ 85,069$ 87,288$ (78,780)$ 8,508$

110

CITY SUGAR LAND

SPECIAL REVENUE FUND - COMMUNITY DEVELOPMENT BLOCK GRANT

INCOME STATEMENT

FY13 FY14



REVENUES

CDBG 610,718$ 309,200$ 178,406$ 448,805$ -$ 448,805$

CDBG - ARRA funds - - - - -

Interest Income - - - - - -

Total Revenues 610,718 309,200 178,406 448,805 - 448,805

EXPENDITURES


Other Contractual 113,229 123,680 122,750 127,203 - 127,203

Capital 451,645 129,864 - 258,000 - 258,000

Total Expenditures 610,718 309,200 178,406 448,805 - 448,805

Net Income (Loss) - - - - -

Fund Balance - Beginning - - - - -

Fund Balance - Ending -$ -$ -$ -$ -$

111

CITY OF SUGAR LAND

SPECIAL REVENUE FUND - TOURISM

INCOME STATEMENT

FY14

FY12 FY13 FY13 Base FY14 FY14


OPERATING REVENUES

Hotel/Motel Occupancy Tax 1,935,156$ 1,833,700$ 2,016,128$ 2,056,400$ -$ 2,056,400$

Miscellaneous - 1,444 - - -

Interest Income 6,198 6,800 4,554 5,000 - 5,000

TOTAL OPERATING REVENUES 1,941,354 1,840,500 2,022,126 2,061,400 - 2,061,400

OPERATING EXPENDITURES

Marketing 150,024 580,715 580,715 497,847 - 497,847

Destination Development 360,618 615,450 615,450 249,000 - 249,000

Tourism Program Funding - - - 101,214 - 101,214

Capital Improvement Projects 240,500 342,381 342,381 - 900,000 900,000

TOTAL OPERATING EXPENDITURES 751,142 1,538,546 1,538,546 848,061 - 1,748,061

Transfers Out - Debt Service 649,912 656,261 656,261 664,214 - 664,214

TOTAL EXPENDITURES 1,401,054 2,194,807 2,194,807 1,512,275 900,000 2,412,275

NET INCOME (LOSS) 540,300 (354,307) (172,681) 549,125 (900,000) (350,875)

Fund Balance 2,688,505 3,228,805 3,228,805 2,605,539 2,605,539

GAAP Adjustments - (450,585) (450,585) - - -

Beginning Budgetary Balance 2,688,505 2,778,220 2,778,220 2,605,539 2,605,539

Ending Budgetary Balance 3,228,805$ 2,423,913$ 2,605,539$ 3,154,664$ (900,000)$ 2,254,664$

112

CITY OF SUGAR LANDSPECIAL REVENUE FUNDS - STATE SEIZURESINCOME STATEMENT



REVENUESOther Income 43,226$ -$ 8,955$ -$ -$ -$Interest Income 116 100 100 - -

Total Revenues 43,342 100 9,055 - - -

EXPENSESMaintenance and Operations - 46,000 46,000 - - -Capital 5,077 1,347 - - - -

Total Expenses 5,077 47,347 46,000 - - -

NET INCOME (LOSS) 38,265 (47,247) (36,945) - - -FUND BALANCE - BEGINNING 20,571 58,836 58,836 21,891 - 21,891FUND BALANCE - ENDING 58,836$ 11,589$ 21,891$ 21,891$ -$ 21,891$

113

CITY OF SUGAR LANDSPECIAL REVENUE FUNDS - FEDERAL SEIZURESINCOME STATEMENT


Actual Budget Projections Budget Changes Budget

REVENUESOther Income 18,666$ -$ -$ -$ -$ -$Interest Income 24 - 15 - -

Total Revenues 18,690 - 15 - - -

EXPENSESMaintenance and Operations - 250 448 - - -Capital - 13,007 13,007 - - -

Total Expenses - 13,257 13,455 - - -

NET INCOME (LOSS) 18,690 (13,257) (13,440) - - -FUND BALANCE - BEGINNING 29 18,719 18,719 5,279 - 5,279FUND BALANCE - ENDING 18,719$ 5,462$ 5,279$ 5,279$ -$ 5,279$

114

CITY OF SUGAR LANDSPECIAL REVENUE FUNDS - LAW ENFORCEMENTINCOME STATEMENT



REVENUESOther Income 1,000$ -$ 251$ -$ -$ -$Interest Income 20 30 30 - -Transfers In 1,788 -

Total Revenues 1,020 30 2,069 - - -

EXPENDITURESMaintenance and Operations - 10,100 10,245 - -

Total Expenditures - 10,100 10,245 - - -

Net Income (Loss) 1,020 (10,070) (8,176) - -Fund Balance - Beginning 10,495 11,515 11,515 3,339 - 3,339Fund Balance - Ending 11,515$ 1,445$ 3,339$ 3,339$ -$ 3,339$

115

CITY SUGAR LANDSPECIAL REVENUE FUND - PHOTOGRAPHIC TRAFFIC SIGNAL ENFORCEMENTINCOME STATEMENT


Actuals Budget Projection Budget Changes BudgetREVENUES

Civil Fines 950,400$ 1,200,000$ 841,505$ 1,058,400$ -$ 1,058,400$Interest Income 1,048 2,000 1,000 - -Total Revenues 951,448 1,202,000 842,505 1,058,400 1,058,400

OPERATING EXPENDITURESPersonnel Costs 55,849 72,392 72,392 90,490 - 90,490Operations & Maintenance 364,915 447,008 351,024 409,500 - 409,500

Total Operating Expenditures 420,764 519,400 423,416 499,990 - 499,990

Net Income (Loss) 530,684 682,600 419,089 558,410 - 558,410

OTHER EXPENDITURESState Share of Net Revenues (264,818) (341,300) (209,544) (279,205) - (279,205)Sugar Land Traffic Programs (264,818) (341,300) (209,544) (279,205) - (279,205)

Total Other Expenditures (529,636) (682,600) (419,089) (558,410) - (558,410)

Fund Balance - Beginning 1,298,476 1,511,023 1,511,023 - - -GAAP Adjustment (Accrued fines) 211,499 (1,511,023) (1,511,023) - -Fund Balance - Ending 1,511,023$ -$ -$ -$ -$ -$

116

CITY SUGAR LAND

SPECIAL REVENUE FUND - SPA DEBT REDUCTION FUNDINCOME STATEMENT- GREATWOOD

FY13 FY14



REVENUES

Out of City Service Fees 208,316$ 206,610$ 213,283$ 252,000$ 31,500$ 283,500$

Interest Income 3,270 5,000 2,247 3,500 - 3,500

Transfers In 318,650 321,091 321,091 317,955 - 317,955

Total Revenues 530,237 532,701 536,623 573,455 31,500 604,955

Expenditures

Operations & Maintenance - - - - - -

Transfers to Other Funds - - - - -

Total Expenditures - - - - - -

Net Income (Loss) 530,237 532,701 536,623 573,455 31,500 604,955

Fund Balance - Beginning 1,083,440 1,613,677 1,613,677 2,150,299 - 2,150,299Fund Balance - Ending 1,613,677$ 2,146,378$ 2,150,299$ 2,723,754$ 31,500$ 2,755,254$

117

CITY SUGAR LAND

SPECIAL REVENUE FUND - SPA DEBT REDUCTION FUND

INCOME STATEMENT- TARA PLANTATION

FY13 FY14



REVENUES

Out of City Service Fees 33,868$ 40,740$ 36,922$ 42,300$ 5,250$ 47,550$

Interest Income 164 175 147 175 - 175

Total Revenues 34,032 40,915 37,069 42,475 5,250 47,725

EXPENDITURES

Operations & Maintenance - - - - - -

Transfers to Other Funds - - - - -


Net Income (Loss) 34,032 40,915 37,069 42,475 5,250 47,725

Fund Balance - Beginning 53,193 87,225 87,225 124,294 - 124,294

Fund Balance - Ending 87,225$ 128,140$ 124,294$ 166,769$ 5,250$ 172,019$

118

CITY SUGAR LANDSPECIAL REVENUE FUND - SPA DEBT REDUCTION FUNDINCOME STATEMENT- NEW TERRITORY



Out of City Service Fees 438,008$ 455,182$ 494,427$ 550,810$ 37,346$ 588,156$Interest Income 2,188 8,000 2,104 3,000 - 3,000Transfers In 150,000 150,000 150,000 150,000 - 150,000

Total Revenues 590,196 613,182 646,532 703,810 37,346 741,156

ExpendituresOperations & Maintenance - - - - - -


Net Income (Loss) 590,196 613,182 646,532 703,810 37,346 741,156Fund Balance - Beginning 1,170,219 1,760,415 1,760,415 2,406,946 - 2,406,946Fund Balance - Ending 1,760,415$ 2,373,597$ 2,406,946$ 3,110,756$ 37,346$ 3,148,102$

119

Capital Projects Fund

Capital Project Funds account for the acquisition or construction of major capital activities. Funding is provided

through the issuance of debt, sales tax revenues, developer fees, state and federal funding, user fees, grants, and

interest income.

Capital Improvement ProcessSection 6.03 of the City Charter states that the City shall file a multi-year capital improvement program and a

current year capital budget. Annually, City staff prepares and files a five-year Capital Improvement Program (CIP).

The CIP identifies needed capital improvements and financing for those improvements. The first year of the plan is

incorporated into the annual budget to appropriate funds for the specific projects.

The five-year Capital Improvement Program (CIP) for 2014-2018 totals $267.6 million and includes $102.5 million

for carryover projects. Cost estimates for years two through five of the five-year CIP are for planning purposes only,

and are used in conjunction with the long-range financial plan of the City to determine potential project funding

sources or to adjust project timing based on affordability. As the estimates are based on the best information

available, ultimate project budgets may vary from the estimates.

Funding sources and levels are identified and developed through the Budget Office. The first draft of the five-year

CIP is prepared without fiscal constraints. The CIP is reviewed by the departments, Planning and Zoning

Commission, the Sugar Land Development Corporation (SLDC), Sugar Land 4B Corporation (SL4B), and the City

Manager. The City Council reviews the list of proposed projects without respect to dollar amounts or timing. A final

draft of the fiscally constrained five-year CIP is then prepared and filed with the annual budget for Council

consideration and approval. Upon City Council adoption, the five-year CIP document is reproduced and distributed

for implementation of the program.

Fiscal Year 2013

The FY13 capital project budget totaled $27,179,900. Many projects included in FY13 are still in progress as most

capital projects are multi-year projects.

Fiscal Year 2014

FY14 capital projects total $37,854,300. The following is a

summary by project area. The graph depicts the FY14 CIP

by project type. Municipal projects make up the majority

of the distribution at 25%, followed by Wastewater

projects at 19%. Drainage projects represent 19% and

Wastewater projects 15%. Street projects represent 9%

while Parks, Traffic, and Airport projects combine to

represent 13% of the approved project budgets for the

FY14 CIP.

Airport projects total $294,000 for the parallel taxiway relocation and airport storage hangars.

Drainage projects total $7,075,000 and includes: Sugar Creek Drainage Improvements – Phase II, Ragus Lake

Drainage Improvements, Dam Structure Improvement and, general improvements to drainage systems throughout

the City.

Municipal25%

Drainage19%

Parks/Traffic/Airport

13%

Streets9%

Water19% Wastewater

15%

CIP Project Types

121

Municipal projects total $9,300,000 and include: Public Works & Utilities Service Center, general facility

renovations, and design for the TIRZ#4 Parking & Plaza infrastructure.

Parks projects total $3,300,000 and includes: Town Center Pedestrian and Bicycle Improvement, Burney Road

Landscape, Settlers Way Park, Universally Accessible Playground at First Colony Park, park infrastructure, Joint

Participation in CIP, University North Boulevard landscape, R.O.W. Planting and Irrigation Rehabilitation, Gannoway

Lake Park, Trail Rehabilitation and design for Mayfield Park.

Streets projects total $3,313,000 and include: bridge rehabilitation; sidewalk rehabilitation; pavement

rehabilitation; SH6 Highway improvements (Brooks Street to Lexington Boulevard), and Dairy Ashford widening

improvements.

Traffic projects total $1,477,300 and includes: street lights replacement, US59 at SH6 in-pavement lighting system,

traffic signal management/ITS, Wayside Horn Improvements and Relocation, Traffic Evaluation and Safety

Improvements, Dynamic Message Signs on State Routes, US59 Northbound U-Turn Extension at SH6 Highway, and,

Pedestrian and Bicycle Master Plan Improvements.

Wastewater projects total $7,350,000 and includes: ongoing work related to the wastewater collection system

rehabilitation; lift station rehabilitation; replacement of odor control equipment at the North Wastewater

Treatment Plant; rehabilitation of a 24-inch force main from the Lexington lift station to the Sweetwater lift station;

lift station SCADA expansion, Emergency Power Pumps, Dissolved Oxygen Improvements at WWTPs, and

replacement of the force main crossing at U59/Central Drive.

Water projects total $5,745,000 and includes: elevated storage tank rehabilitation, well rehabilitation, Austin

Parkway Groundwater Plant Booster Pump Rehabilitation, Groundwater storage tank rehabilitation, distribution

system water main rehabilitation, replacement of Austin Parkway Ground Plant Well, and replacement of water line

crossings at US59/SH6 and US59/Williams Trace.

Funding for the FY14 CIP consists of $3,139,590 in pay-as-

you-go funding, $15,103,000 in certificates of obligation,

$150,000 from the Sugar Land Development Corporation,

$1,012,000 from the Sugar Land 4B Corporation, $294,000 in

airport revenues, $1,500,000 in system revenues,

$15,645,000 from revenue bonds, and $1,358,000 from

other funding sources. Other funding sources include

donations from civic groups, CDBG funds, and hotel

occupancy tax.

A number of projects undertaken will have ongoing

operations and maintenance (O&M) costs when completed. Each project that has an O&M impact has been

identified and the annual cost calculated. The amounts are included in the five-year forecast to measure the impact

on the long-range financial capacity of each operating fund. A table identifying projects that have an O&M cost is

included after the summary of all capital projects.

Revenue Bonds40%

Corporation3%

CO's40%

GeneralRevenue

8%

EnterpriseRevenue

4%Other Sources

5%

CIP Funding Sources

122

CITY OF SUGAR LANDCAPITAL PROJECTSSUMMARY SCHEDULE OF REVENUES AND EXPENDITURES

Grants & TotalGeneral Other Development Utility Airport Capital

CIP Sources Corporations CIP CIP Projects

REVENUES

Transfer from Operating Funds 3,139,590$ 1,358,000$ 1,162,000$ 1,500,000$ 294,000$ 7,453,590$

Other Revenues - - -

Bond Proceeds Transfer 15,103,000 - - 15,645,000 - 30,748,000

Total Bonds & Transfers 18,242,590 1,358,000 1,162,000 17,145,000 294,000 38,201,590

Interest Income - Bond Proceeds 25,000 - - 25,000 - 50,000

Interest Income - - - - -

Total Interest 25,000 - - 25,000 - 50,000

Total Revenues 18,267,590 1,358,000 1,162,000 17,170,000 294,000 38,251,590

EXPENDITURES

Airport - - - - 294,000 294,000

Drainage 7,075,000 - - - - 7,075,000

Municipal 4,350,000 900,000 - 4,050,000 - 9,300,000

Parks 1,830,000 458,000 1,012,000 - - 3,300,000

Streets 3,313,000 - - - - 3,313,000

Traffic 1,327,300 - 150,000 - - 1,477,300

Wastewater - - - 7,350,000 - 7,350,000

Water - - - 5,745,000 - 5,745,000

Total Construction 17,895,300 1,358,000 1,162,000 17,145,000 294,000 37,854,300

Issuance Costs 150,000 - - - 150,000Other Non-Operating 6,450 6,450 2,300 15,200Transfers 202,000 - 202,000

Non-Operating Expenditures 358,450 - - 6,450 2,300 367,200Total Expenditures 18,253,750 1,358,000 1,162,000 17,151,450 296,300 38,221,500

Revenues and Other Sources OverExpenditures and Other Uses 13,840 - - 18,550 (2,300) 30,090

BEGINNING BALANCE 123,839 - - 796,876 35,452 956,167

ENDING BALANCE 137,679$ -$ -$ 815,426$ 33,152$ 986,257$

123

CITY OF SUGAR LAND

SUMMARY OF CAPITAL PROJECTS

FISCAL YEAR 2014

Project # Project Name Project Description

Airport Projects

AP1401 Parallel Taxiway Relocation and Hangars ALD #4

and ALD #11

Build a new parallel taxiway to the east of the existing Taxiway "Foxtrot" (which will then be removed).

Construct a new 37,500 sft aircraft storage hangar and a new 10,625 sft hangar/office space to replace

two existing hangars that will be demolished due to the new taxiway.

Airport Total

Drainage Projects

DR1001 Sugar Creek Drainage Improvements - Phase II Preparation of final design and construction plans and securing necessary drainage easements to

facilitate the phased drainage improvements as recommended in the 2005 Sugar Creek Drainage

Analysis. These include improvements to East Sugar Creek Ditch and upgrading storm sewer outfalls at

various locations within the watershed. PER for east section to identify easements and produce 30%

design drawings.

DR1204 Ragus Lakes Drainage Analyze, design and construct solutions to address sheet flow/ extreme event drainage issues in Ragus

Lake Subdivision. Includes 2 dimensional modeling and hydraulic and hydrologic modeling of receiving

channels and storm sewers within this system and adjacent systems.

DR1401 Localized Drainage Improvements Annual funding to address drainage improvements or repairs to existing drainage infrastructure on an

as needed basis as identified through inspections or as identified through customer complaints. These

include drainage outfalls to facilities owned by other entities, such as the Levee Improvement Districts.

DR1402 Dam Structure Improvements Vegetation removal, slope stabilization, and top over improvements to Dams 1, 2, and 3 on Oyster

Creek.

Drainage Total

Municipal Projects

MU1302 Public Works and Water Utilities Service Center This project is the first phase of construction which includes a new administration building, storage and

warehouse facilities and an additional bay for the fleet facility. Project includes the compressed natural

gas facility.

MU1303 Facility Renovations Annual funding for repairs to city facilities as identified by the 2012 Facility Condition Assessment

Study. The projects include repairs and renovations that extend the usable life of the facilities. Project

items include but are not limited to roof and HVAC repairs, electrical, plumbing, modernization, etc.

MU1402 TIRZ#4 Parking and Plaza Infrastructure Design & construction of infrastructure necessary to support the Performing Arts Center including

parking for 2,500 cars, a public plaza area to facilitate ingress & egress from the facility, and an off-site

LED marquee sign to promote events and activities at the facility.

Municipal Total

Parks Projects

PK1103 Town Center Pedestrian and Bicycle Improvements to increase pedestrian and bicycle safety and mobility in the Town Center area,

including connections to the City-wide hike and bike trail network.

PK1401 Burney Road Landscape Landscape and irrgation improvements on Burney Road.

PK1402 Settlers Way Park The 5-acre site is located adjacent to Settlers Way Elementary and would be a neighborhood level

park. Improvements to the park include a walking trail, ornamental fence, signage, restroom building

and additional parking in partnership with Settlers Way Elementary.

PK1403 Universally Accessible Playground at First Colony

Park

The existing playground is at the end of its useful life and requires replacement. The project includes

demolition of the existing playground and surfacing as well as the installation of an all-inclusive

playground and rubber surfacing. The project is being supported by the Rotary Club and Fort Bend

Junior Service League.

PK1404 Park Infrastructure Rehabilitation To address Park renovations; the Parks Facility Assessment was prepared as a component of the

Infrastructure Management Plan.

PK1405 Joint Participation in CIP Provide funds for joint participation in CIP projects between the City and Citizen based organizations

that benefit the general public. Take advantage of partnership opportunities to enhance and preserve

the quality of life for City residents.

PK1406 University Boulevard North Landscape Landscape and irrgation improvements on University Blvd. North.

PK1407 ROW Planting and Irrigation Rehabilitation To address ROW renovations and upgrades that meet the criteria for capital improvements.

PK1408 Gannoway Lake Park Develop a Preliminary Engineering Report (PER) for the site regarding parks facilities adjacent to the

existing surface water treatment plant. The PER will identify environmental challenges and include

analysis and costs for trails, a water/nature education facility, playground, water playground, picnic

pavilion, lake improvements including dredging, board walks and a pier.

PK1409 Trail Rehabilitation To maintain the City's Trail system within Home Owner's Association (HOA) easements.

PK1410 Mayfield Park Design of park improvements in Mayfield Park.

Parks Total

124

Transfers from Operating Funds Bond Proceeds Miscellaneous Total

General Water Utilities & Airport SLDC / Grants / FB FY14 CIP

Fund Surface Water Funds Fund SL4B Corp GO / CO Revenue Other Sources Budget

294,000 294,000

- - 294,000 - - - - 294,000

3,200,000 3,200,000

3,300,000 3,300,000

300,000 300,000

275,000 275,000

300,000 - - - 6,775,000 - - 7,075,000

4,050,000 4,050,000 8,100,000

300,000 300,000

900,000 900,000

300,000 - - - 4,050,000 4,050,000 900,000 9,300,000

1,030,000 1,030,000

380,000 380,000

642,000 258,000 900,000

200,000 200,000 400,000

200,000 200,000

100,000 100,000

15,000 15,000

75,000 75,000

70,000 70,000

50,000 50,000

80,000 80,000

800,000 - - 1,012,000 1,030,000 - 458,000 3,300,000

125

CITY OF SUGAR LAND


FISCAL YEAR 2014


Streets Projects

ST1401 Bridge Rehabilitation Administer bridge management within the City of Sugar Land. The first phase will be to hire a

consultant to determine cost and prioritize eight bridges and the last phase will be to fund construction

for the repairs.

ST1402 Pavement Rehabilitation Annual street pavement rehabilitation program as identified by the Pavement Management &

Maintenance Program (PMMP). This project includes only slab replacement. Larger projects including

PER for entire street replacement are included in separate project worksheets.

ST1403 Sidewalk Rehabilitation With depreciating sidewalk in various areas around the City, this project will allow for the annual

repairs to update the sidewalk and provide a more safe environment in neighborhoods and business

areas for walkability. Full depth repairs made to several hundred linear feet of sidewalk.

ST1404 State Highway 6 Improvements - Brooks Street to

Lexington Blvd

Right-of-way acquisition to facilitate future expansion of SH 6 to eight lanes from Brooks Street to

Lexington Boulevard.

ST1405 Dairy Ashford Widening Improvements The PER recommends additional through and turn lanes at Dairy Ashford @ US90A. This will require an

increase of one through lane in each direction north and south from Parklane Blvd to beyond Julie

Rivers Drive. Installation of a directional median along Dairy Ashford at Parklane Blvd to restrict traffic

exiting to a right-turn only.

Streets Total

Traffic Projects

TR1401 Street Light Replacement The project will change out 100 30-ft cobra head street lights per year with 12-ft lamp post lights along

signature routes with high traffic volumes and heavy tree canopies which preclude the existing 30-ft

street lights from functioning properly.

TR1402 US 59 at SH6 in Pavement Lighting System Replacement of existing curve delineation equipment installed at US 59 and SH 6 for the triple left turn.

TR1403 Traffic Signal Management / ITS Provides for planning, design, installation and operations equipment software programming

communications equipment and infrastructure and or ITS equipment.

TR1404 Wayside Horn Improvements and Relocation Relocate and install necessary wayside horn equipment for the upcoming Union Pacific Railroad dual

track upgrade Prison Drive horn.

TR1405 Traffic Evaluation and Safety Improvments Program will analyze intersections for quick improvements with relatively low cost but high benefits.

This analysis will provide measures of effectiveness that will allow uniform comparison of the expected

benefits- average % reduction in intersection delay (Eldridge Road dual left turn widening at West

Airport Boulevard).

TR1406 Dynamic Message Signs on State Routes Installation of up to six (6) permanent dynamic message signs (DMS) along major thoroughfares such

as 90A, SH 6 and US 59. The signs will include aesthetic enhancements and messaging capabilities

similar to those of the existing DMS sign at US 59/SH 6 interchange.

TR1407 US 59 Northbound U-turn Extension at SH6 Extend the US 59 northbound u-turn lane approximately 400 feet.

TR1408 Pedestrian and Bicycle Master Plan Improvements Design and construct high-priority projects from the 2013 Pedestrian and Bicycle Master Plan.

Locations include Sugar Lakes Blvd, Lost Creek Blvd, Edgewater Dr, Country Club Blvd, Grants Lake

Blvd, River Park and University Blvd north of US 59. Project will include the implementation of

approximately 75,000 lineal feet of the "Buffered Bike Lanes", 20,000 lineal feet of "Shared Lane

Markings".

Traffic Total

Wastewater Projects

WW1202 Collection System Rehabilitation Program (Area B) Continue detailed design for system deficiencies identified in the 2009 Infiltration/Inflow Study of

areas that experience sanitary sewer overflows (SSOs) during heavy storm events in identified as

Project B.

WW1301 Lift Station Rehabilitation Rehabilitation of the lift stations identified by routine inspection and annual assessments. Mesquite LS

was designed in FY13 and will be constructed in FY14. In addition, the North WWTP diversion pump

will be upgraded to divert to the south WWTP.

WW1302 Replacement of odor control equipment - N.

WWTP

This project will evaluate the odor causing treatment units at the North Plant to ascertain the cause of

malodorous complaints along with evaluating the effectiveness of the existing odor control system at

the North Plant and make recommendations for an improved system. This may include a revamped

system or installation of a new smaller more efficient and effective system.

WW1303 Rehabilitation of 24 inch FM - Lexington LS to the

Sweetwater LS

Rehabilitation of 5,000 LF of 24-inch forcemain from the Lexington lift station to the Sweetwater lift

station.

WW1401 Nutr Rem / Loading Capacity / Dissolved Oxygen

Study

Perform a combined study on the North and South WWTPs to 1) evaluate TCEQ rules promulgated in

January 2012 related to effluent standards of phosporus reduction; 2) study impacts treatment

performance due to increase in solids loading ; 3) study impacts of increase in solids loading on

maintaining effluent dissolved oxygen requirements.

126




165,000 165,000

1,700,000 1,700,000

500,000 500,000

610,000 610,000

338,000 338,000

665,000 - - - 2,648,000 - - 3,313,000

150,000 150,000

90,000 90,000

200,000 200,000

350,000 350,000

273,000 273,000

25,000 25,000

150,000 150,000

239,300 239,300

977,300 - - 150,000 350,000 - - 1,477,300

3,250,000 3,250,000

750,000 550,000 1,300,000

250,000 250,000

725,000 725,000

550,000 550,000

127

CITY OF SUGAR LAND


FISCAL YEAR 2014


WW1402 Emergency Power Pumps at LS Phase II Installation of ten 6‐inch and six 8‐inch dry prime automatic diesel backup pumps at large sanitary

sewer lift stations in the event of loss of power or pump failure at critical sites. These installations are

true backup systems and work independent of the onsite motor control centers.

WW1403 Collection System Rehabilitation Program (Project

C)

Continue detailed design for system deficiencies identified in the 2009 Infiltration/Inflow Study of

areas that may experience sanitary sewer overflows (SSOs) during heavy storm events in identified as

Project C.

WW1404 Lift Station 52 (MUD 136 Reg. LS #2)

Improvements

Replace existing pumps with 3 new 1,500-gpm pumps, including electrical improvements, to

accommodate a firm 3,000 gpm capacity to serve growth from Imperial Tract 3 and the Crossing @

Telfair located in Telfair Tract 4.

WW1405 Dissolved Oxygen Improvements at WWTPs Design and construction of automated dissolved oxygen delivery system to the North and South

WWTP treatment systems.

WW1406 Replacement of Forcemain Crossing at US59 /

Central Drive

Replace existing 12-inch forcemain with new 12-inch PVC.

WW1407 Lift Station Rehabilitation Rehabilitation of the lift stations identified by staff routine inspection and annual assessments. FY14

Design - Meadowlark (12), Highlands (104), Frontier (119), Highlands (122), Scotsmore (128).

Wastewater Total

Water Projects

WA1301 Elevated Storage Tank Rehabilitation In FY08, an inspection/evaluation of Mason Road, Sugar Creek & First Colony elevated storage tanks

was performed. Work includes structural repairs and modifications as needed and blasting and coating

of interior and exterior surfaces.

WA1302 Well Rehabilitation Bi-Annual design and construction scheduled maintenance of water wells for one of the 17 City water

wells. Maintenance of water wells includes pulling of pump from wells and cleaning well screens.

Repairs required for the well and pumps are determined when the wells are pulled.

WA1304 Austin Parkway Groundwater Plant Booster Pump

Rehabilitation

Replace the booster pump at the Austin Parkway Groundwater Plant to provide reliable pumping

capacity. The project includes the evaluation, design and construction of the replacement booster

pumps, motors, and associated valves and piping.

WA1401 Ground Storage Tank Rehabilitation Annual funding for refurbishment of existing ground storage water tanks at a site to be determined

and prioritized by scheduled evaluation and assessment. Work includes structural repairs and

modifications as needed, blasting and proper removal of old coatings and repainting.

WA1402 Distribution System Water Main Rehabilitation

Program

A waterline replacement analysis was conducted based on maintenance records to prioritize the water

line rehabilitation. The biennial projects include design and construction of distribution system water

lines to replace aged and high maintenance existing waterlines.

WA1403 Replacement of Water Line Crossings at

US59/Hwy 6 and US59/Williams Trace

Replacement of existing 12-inch waterlines with new PVC pipeline and installation of steel casing.

WA1404 Austin Parkway Groundwater Plant Well

Replacement

New well construction to replace the Austin Parkway on-site water well. Project to include engineering

design and construction of a 2000-2500 gpm well to be located at the Austin Parkway water plant site.

Water Total

Grand Total

128




85,000 85,000

450,000 450,000

360,000 360,000

150,000 150,000

100,000 100,000

130,000 130,000

- 750,000 - - - 6,600,000 - 7,350,000

135,000 465,000 600,000

880,000 880,000

2,000,000 2,000,000

1,650,000 1,650,000

235,000 235,000

150,000 150,000

230,000 230,000

- 750,000 - - - 4,995,000 - 5,745,000

3,042,300$ 1,500,000$ 294,000$ 1,162,000$ 14,853,000$ 15,645,000$ 1,358,000$ 37,854,300$

129

CITY OF SUGAR LAND

SUMMARY OF FY13 CAPITAL PROJECTS O&M IMPACT

FISCAL YEARS 2015-2018

Project # Project Title FY15 FY16 FY17 FY18

Airport

AP1702 Approach Lighting System -$ -$ -$ 12,000$

Airport - Total - - 12,000

Municipal

MU1106 District 1 License Plate Recognition 7,500$ 7,500$ 7,500$ 7,500$

MU1302 Public Works Service Center 80,000 80,000 80,000 80,000

Municipal - Total 87,500 87,500 87,500 87,500

Parks

PK1103 Town Center Pedestrian and Bicycle 3,870 3,870 3,870 3,870

PK1401 Burney Road Landscape 3,500 7,500 7,500 7,500

PK1402 Settlers Way Park 4,350 21,150 21,150 22,650

PK1406 University Blvd. North Landscape 4,325 9,250 9,250 9,250

Parks - Total 16,045 41,770 41,770 43,270

Traffic

TR1301 Government/Community & Destination Signage 5,000 5,000 5,000 5,000

TR1401 Street Light Replacement 5,000 5,000 5,000 5,000

TR1406 Dynamic Message Signs on State Routes 5,000 5,000 5,000 5,000

TR1408 Pedestrian and Bicycle Master Plan Improvements 5,000 5,000 5,000 5,000

TR1501 Traffic Signal Ornamental Upgrades - - - 15,000

Traffic - Total 20,000 20,000 20,000 35,000

GRAND TOTAL 123,545$ 149,270$ 149,270$ 177,770$

130

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131

Water Utility Fund

The City’s water and wastewater utilities are financed and operated in a manner similar to private business

enterprises, where costs of providing the services to the public are financed primarily through user charges.

Fiscal Year 2013

Total revenues for FY13 are estimated to be $45,357,615, which is $216,921 more than budgeted revenues. Surface

water fees billed to residents are estimated at $8,119,200. Water and wastewater revenues are projected at

$24,859,337, 0.6% higher than budget. Interest income is projected at $22,487, which is less than budget. Bond

proceeds are projected for $9,799,916. Transfers from connection fees cover FY13 debt service requirements for

connection fee projects. Transfer-In from the Surface Water Fund for $1,031,797 covers the portion of the debt

service requirements related to surface water projects included in 2008 and 2009 revenue bonds.

Operating expenses for FY13 are projected to be $13,242,214.

Non-operating expenditures total $33,612,913. Debt service payment for $17,324,439 includes the refunding of

bonds for $9,628,512. Operating transfers total $6,456,462 for the Debt Service Fund, the Fleet Replacement Fund,

the High Tech Replacement Fund, and the General Fund for administrative overhead. The transfer to the Surface

Water Fund is $8,290,039 and is pumpage for water use. The fund supports a transfer of $4,023,131 to the Debt

Service Fund. This transfer is based on previous direction from City Council to have utility rates support 100% of

assumed water/wastewater debt, thereby supporting the assumed MUD debt through user fees instead of property

taxes.

Ending cash equivalent balance at 9/30/13 is estimated to be $8,520,233, which is $221,172 more than budget due

to higher projected revenues. The fund is projected to have a 65% operating reserve, which is above the 25%

established by policy. The fund has a required debt service reserve of $5,710,496 at fiscal year-end.

Fiscal Year 2014

Total revenues for FY14 are estimated to be $53,792,483. Total revenues for water and wastewater are budgeted at

$25,743,769. There are no planned rate increases for water or wastewater in FY14. Water and sewer taps are

budgeted at $222,462 for approximately 262 connections, mainly in the Telfair development.

The budget for surface water fees of $9,722,218 for City customers is calculated based on two rates. A rate increase

from $1.50 per 1,000 gallons to $1.75 per 1,000 gallons will be effective January 1, 2014. Revenues are budgeted

for three months at the current rate and nine months at the new rate.

Operating expenditures total $12,735,956 and includes recurring additions of $143,536, which includes $68,536 for

a new position and $75,000 for water conservation.

Non-operating expenditures total $42,595,962. Debt service payments are budgeted at $8,966,769 for existing debt

and new debt for the bond proceeds of $15,957,900. Transfers-out total $6,310,166 and includes transfers to the

Fleet and High-Tech Replacement Funds, General Fund and Debt Service Fund. The transfer to the Debt Service

Fund was calculated based on a 100% recovery on water/wastewater debt service for annexed & dissolved

municipal utility districts as identified in the Council adopted Financial Management Policy Statements revised in

May 2012. Transfer out to the Surface Water Fund for $9,888,565 is based on a pumpage fee of $1.50 per 1,000

gallons for the first quarter and $1.75 per 1,000 gallons for January to September for anticipated water use

including city rights of way. Miscellaneous expenditures include contingency and property and liability premiums.

Pay-as-you-go capital project funding for FY14 is $1,500,000 for the construction of water and wastewater projects.

132

The Utility Fund has a debt service reserve of $5,501,968. The cash equivalents balance on 9/30/14 is estimated at

$7,189,326, which is a 57% operating reserve.

Financial AnalysisFinancial ratios are used to analyze the financial position and operating results of the fund. A comparison based on

FY13 projections and the FY14 budget is shown below:

FY13 FY14

Projections Budget

Cash Reserve Ratio 65% 57%

Direct Bond Coverage 1.60 1.64

The targeted minimum cash reserve ratio is 25% of operating expenses. The bond coverage minimum is 1.64 times

the average annual debt service requirements. The FY14 cash reserve ratio is budgeted at 57%. Rates will be

adjusted annually as necessary to ensure cash reserves and bond coverage requirements are maintained.

The financial strength of the utility system is recognized by the rating agencies. Fitch and Standard & Poor’s both

assigned an AA+ rating to the outstanding revenue bonds.

133

The Utility Fund has a debt service reserve of $5,501,968. The cash equivalents balance on 9/30/14 is estimated at

$7,189,326, which is a 57% operating reserve.

Financial AnalysisFinancial ratios are used to analyze the financial position and operating results of the fund. A comparison based on

FY13 projections and the FY14 budget is shown below:

FY13 FY14

Projections Budget



The targeted minimum cash reserve ratio is 25% of operating expenses. The bond coverage minimum is 1.64 times

the average annual debt service requirements. The FY14 cash reserve ratio is budgeted at 57%. Rates will be

adjusted annually as necessary to ensure cash reserves and bond coverage requirements are maintained.

The financial strength of the utility system is recognized by the rating agencies. Fitch and Standard & Poor’s both

assigned an AA+ rating to the outstanding revenue bonds.

134

CITY OF SUGAR LANDENTERPRISE FUND - WATER UTILITY SYSTEMINCOME STATEMENT



Charges for Services 25,054,841$ 24,703,390$ 24,859,337$ 25,743,769$ -$ 25,743,769$Surface Water Fees 7,026,736 8,106,315 8,119,200 9,722,218 - 9,722,218Tap Fees 442,901 384,314 249,695 222,462 - 222,462Interest Income 22,487 30,000 22,487 30,000 - 30,000Miscellaneous 511,607 452,373 642,594 453,002 - 453,002

Operating Revenues 33,058,573 33,676,392 33,893,313 36,171,451 - 36,171,451Bond Proceeds 21,925,000 9,799,916 9,799,916 15,957,900 - 15,957,900Transfers In - Connection Fees 656,189 632,589 632,589 632,589 - 632,589Transfers In - Surface Water 1,030,540 1,031,797 1,031,797 1,030,543 - 1,030,543

Non Operating Revenues 23,611,729 11,464,302 11,464,302 17,621,032 - 17,621,032Total Revenues 56,670,301 45,140,694 45,357,615 53,792,483 - 53,792,483

EXPENSESUtility Administration 571,373 642,185 642,185 668,689 - 668,689Water Distribution 1,566,867 1,816,524 1,816,524 1,668,927 - 1,668,927Water Production 2,584,028 2,829,320 2,829,320 2,776,978 - 2,776,978Wastewater Collection 734,704 913,198 913,198 669,251 - 669,251Wastewater Treatment 3,809,464 4,547,508 4,547,508 4,284,013 - 4,284,013Customer Service 1,049,391 1,281,732 1,281,732 570,045 - 570,045Water Quality 288,282 400,847 400,847 353,969 68,536 422,505Water Conservation - - - 207,260 75,000 282,260Treasury 848,002 810,900 810,900 1,393,288 - 1,393,288

Operating Expenses 11,452,111 13,242,214 13,242,214 12,592,420 143,536 12,735,956Debt Service 6,556,721 17,324,439 17,324,439 8,966,769 - 8,966,769

Miscellaneous 144,936 547,060 511,973 285,462 - 285,462Transfers Out 6,602,176 6,456,462 6,456,462 6,310,166 - 6,310,166Transfers Out - Surface Water 6,891,154 8,259,202 8,290,039 9,888,565 - 9,888,565CIP Transfers: -- Bond Projects 21,925,000 - - 15,645,000 - 15,645,000- Water Projects 675,000 540,000 540,000 750,000 - 750,000- Wastewater Projects 700,000 490,000 490,000 750,000 - 750,000

Non Operating Expenses 43,494,987 33,617,163 33,612,913 42,595,962 - 42,595,962Total Expenses 54,947,098 46,859,377 46,855,127 55,188,382 143,536 55,331,918

Net Income (Loss) 1,723,203 (1,718,684) (1,497,512) (1,395,899) (143,536) (1,539,435)Debt Service Reserve (6,001,128) (5,710,496) (5,710,496) (5,501,968) - (5,501,968)Cash Equivalents - Beginning 14,005,037 15,728,241 15,728,241 14,230,729 - 14,230,729Cash Equivalents - Ending 9,727,112$ 8,299,061$ 8,520,233$ 7,332,862$ (143,536)$ 7,189,326$

CONNECTIONS-ESF* 42,033 42,913 42,913 43,663 43,663CASH OPERATING RESERVE 85% 64% 65% 57% 57%BOND COVERAGE DIRECT DEBT 2.16 1.58 1.60 1.64 1.64

* Equivalent Single Family

135

CITY OF SUGAR LAND

ENTERPRISE FUND ‐ WATER UTILITY SYSTEM

SUMMARY SCHEDULE OF REVENUES

FY13 FY14


Actuals Budget Projections Budget Changes Budget

OPERATING REVENUES:

Water Sales 10,811,466$ 10,410,038$ 10,402,712$ 10,720,455$ ‐$ 10,720,455$ Wastewater Charges 14,243,375 14,293,352 14,456,625 15,023,314 ‐ 15,023,314

Surface Water Fees 7,026,736 8,106,315 8,119,200 9,722,218 ‐ 9,722,218

Penalties 346,518 305,000 361,097 305,000 ‐ 305,000

Collection Charges 4,620 7,200 4,830 7,200 ‐ 7,200

Delinquent Processing Fee 20,425 23,000 34,025 23,000 ‐ 23,000

Misc. Charges 8,130 7,000 5,610 7,000 ‐ 7,000

Water Taps 364,201 344,939 211,195 180,387 ‐ 180,387

Sewer Taps 78,700 39,375 38,500 42,075 ‐ 42,075

Connection Charges ‐ Water 46,183 35,000 106,977 40,000 ‐ 40,000 Connection Charges ‐ Wastewate 38,274 40,000 97,444 35,000 ‐ 35,000 Miscellaneous 12,337 ‐ ‐ ‐ ‐ Reimbursements 6,141 10,000 9,988 10,000 ‐ 10,000

Sale of Property 7,486 3,000 485 3,000 ‐ 3,000

Interest Income 22,487 30,000 22,487 30,000 ‐ 30,000

Leased Premises 21,493 22,173 22,138 22,802 ‐ 22,802

TOTAL OPERATING REVENUES 33,058,573$ 33,676,392$ 33,893,313$ 36,171,451$ ‐$ 36,171,451$

136

Water Utilities

Mission StatementThe Water Utilities Department takes pride in maintaining a tradition of producing ample superior quality water,

vigilantly maintaining water and wastewater infrastructure, and providing responsive and efficient customer‐oriented

service in a cost‐effective and innovative manner emphasizing responsible environmental stewardship and compliance

with all regulatory requirements.

Services ProvidedThe Utilities Department is responsible for the long range planning, administration and operation of the City's water and

wastewater systems including regulatory compliance for all mandated EPA and TCEQ programs.

Programs of ServiceUtilities Administration sets departmental goals and strategies, provides organizational direction and control to

accomplish those goals and manages long range planning to ensure there is adequate system capacity for growth. The

Water Distribution program is responsible for insuring that water produced is delivered to meet customer expectations

including maintaining and repairing water lines, meters and fire hydrants. Water Production is responsible for

producing, treating and supplying quality water that complies with all federal and state water quality standards and with

sufficient pressure to meet customer needs and fire flow requirements in an emergency. Wastewater Collection

operates, maintains, and repairs sanitary sewer collection lines and manholes to meet or exceed all state and federal

guidelines. The Wastewater Treatment program is responsible for transporting and treating wastewater to a quality

that meets federal and state water quality standards, and operating, maintaining and repairing sanitary sewer lift

stations and wastewater treatment plants. The Customer Service program responds to all requests for service 24 hours

a day 7 days a week and reads all water meters monthly. The Water Quality program monitors the safety and quality of

drinking water through water testing and compliance monitoring and handles backflow prevention, grease trap

inspection, and the mandated wastewater industrial pretreatment programs. The Water Conservation program is

responsible for water education, conservation and communication and is managed through the Public Works

Department Environmental Services Division. The Treasury program, managed through the Budget and Research

Department, provides centralized collection of city funds for utility and other billings as well as daily receipts from other

operating departments and receipts from outside payments including property tax payments received from Fort Bend

County. Treasury also bills for utilities, alarms, airport rentals, and other miscellaneous receivables for all city

departments.

FY14 Budget RequestsRecurring additions is $143,536 and includes $68,536 for a new position in Water Quality and $75,000 for water conservation.

Performance Measures: Well Planned CommunityThe City Council measure for “Adequate infrastructure

and services to support growth and to sustain our

existing community” is recommendations from Utilities

master plans included and funded in the five-year CIP.

27%

46%

66%

31%

0%

20%

40%

60%

80%

100%

FY11 FY12 FY13 FY14

Utilities CIP Projects from Master Plans

137

Water Utilities

Performance Measures: Well Planned Community

The ratios of average daily supply capacity and flow capacityare also measures of adequate infrastructure.


Summary by Program Actuals Budget Projection Budget Changes Budget

Utility Administration 571,373$ 642,185$ 642,185$ 668,689$ -$ 668,689$

Water Distribution 1,566,867 1,816,524 1,816,524 1,668,927 - 1,668,927

Water Production 2,584,028 2,829,320 2,829,320 2,776,978 - 2,776,978

Wastewater Collection 734,704 913,198 913,198 669,251 - 669,251

Wastewater Treatment 3,809,464 4,547,508 4,547,508 4,284,013 - 4,284,013

Customer Service 1,049,391 1,281,732 1,281,732 570,045 - 570,045

Water Quality 288,282 400,847 400,847 353,969 68,536 422,505

Water Conservation - - - 207,260 75,000 282,260

Treasury 848,002 810,900 810,900 1,393,288 - 1,393,288

Program Totals 11,452,111$ 13,242,214$ 13,242,214$ 12,592,420$ 143,536$ 12,735,956$



Salaries & Benefits 3,113,101$ 3,244,775$ 3,244,775$ 3,554,507$ 58,986$ 3,613,493$

Supplies 841,582 1,089,420 1,089,420 1,108,761 79,300 1,188,061

Professional & Contractual 6,568,450 7,958,804 7,958,804 3,594,731 - 3,594,731

Repair & Maintenance 234,213 280,623 280,623 3,870,643 - 3,870,643


Capital/Other 53,440 147,826 147,826 - 4,000 4,000

Category Totals 11,452,111$ 13,242,214$ 13,242,214$ 12,592,420$ 143,536$ 12,735,956$



Utility Administration 5.50 5.50 5.50 5.50 5.50

Water Distribution 9.45 9.95 10.45 10.45 10.45

Water Production 5.50 5.50 5.50 5.50 5.50

Wastewater Collection 7.20 6.70 6.70 6.70 6.70

Wastewater Treatment 4.50 5.00 5.50 5.50 5.50

Customer Service 6.35 7.35 7.35 6.35 6.35

Water Quality 3.00 3.50 3.50 3.50 1.00 4.50

Water Conservation - - - 1.00 1.00

Treasury 12.00 10.00 10.00 10.00 10.00

FTE Count Totals 53.50 53.50 54.50 54.50 1.00 55.50

36% 36% 36%

59% 59% 59%

0%

20%

40%

60%

80%

FY12 Estimate FY13 Estimate FY14 Estimate

Capacity to Permitted Capacity Comparison

Water Wastewater

138

ENTERPRISE - UTILITY

WATERWORKS AND SEWER SYSTEM

TOTAL DEBT SERVICE OUTSTANDING*

Due During

FY Ending


FY14 4,680,000$ 3,001,299$ 7,681,299$

FY15 4,770,000 2,591,804 7,361,804 Total principal outstanding is comprised of seven

FY16 4,525,000 2,462,460 6,987,460 issues and all current debt matures by FY31.

FY17 4,630,000 2,312,563 6,942,563

FY18 4,755,000 2,161,300 6,916,300

FY19 4,250,000 1,996,585 6,246,585

FY20 4,395,000 1,850,155 6,245,155 Amount

FY21 4,255,000 1,698,255 5,953,255 Series Outstanding Maturity

FY22 4,430,000 1,543,930 5,973,930 Series 2005 580,000$ FY30

FY23 4,275,000 1,377,630 5,652,630 Series 2006 4,035,000 FY26

FY24 4,445,000 1,212,155 5,657,155 Series 2008 12,320,000 FY28

FY25 4,640,000 1,039,915 5,679,915 Series 2009 24,790,000 FY29

FY26 4,830,000 851,751 5,681,751 Refunding 2009 4,090,000 FY18

FY27 4,620,000 650,176 5,270,176 Series 2012 21,170,000 FY31

FY28 4,825,000 456,733 5,281,733 Series 2012A 8,685,000 FY30

FY29 3,845,000 255,638 4,100,638 75,670,000$

FY30 1,835,000 109,163 1,944,163

FY31 1,665,000 54,113 1,719,113

TOTAL 75,670,000$ 25,625,623$ 101,295,623$

* Does not include anticipated issuance of new debt.

$-

$1

$2

$3

$4

$5

$6

$7

$8

$9

FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31

Mill

ion

s

Debt Service Schedule

Principal Interest

139

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140

Surface Water Fund

The Surface Water Fund accounts for all operating and capital improvement activities related to the City’s required

conversion to surface water, which is funded through a fee per 1,000 gallons of water produced. Those outside the

City limits pay a 20% out-of-City service charge over the monthly fees; service charges from New Territory,

Greatwood and Tara Plantation are credited to the debt reduction funds based on Strategic Partnership

Agreements (SPAs).

Fiscal Year 2013

Total revenues for FY13 are projected to be $11,638,977. Surface water fees from GRP participants are projected at

$3,283,383. Out-of-city service charge is projected at $35,083 for participants other than New Territory, Greatwood

and Tara Plantation MUDs, for which those service charges go to the Debt Reduction Fund. Groundwater Reduction

Plan (GRP) fees from City customers are projected at $8,290,039. Interest income is projected at $25,567.

Miscellaneous revenues total $4,905.

Operating expenses are projected to be $3,184,286 and include personnel expenses of $557,560, capital for

$70,938, and $2,555,788 for operations and maintenance, including payment on contracts for surface water rights

and raw water costs. Debt service payment is $5,974,238 for the 2011 Certificates of Obligation issued for

construction of the Surface Water Treatment Plant and other projects needed for conversion to surface water in

2013. Transfers out total $1,330,080 and includes $1,031,797 to the Utility Fund for debt service for 2008 and 2009

bonds, $290,000 to the General Fund for administrative fees, and $8,283 to the Fleet Fund. Ending cash equivalents

at 9/30/13 is projected to be $10,202,238.

Fiscal Year 2014

Total surface water revenues are estimated at $13,981,202. A GRP increase of $0.25 per 1,000 gallons of water is

being planned with an effective date of January 1, 2014, for a total GRP fee of $1.75 per 1,000 gallons. GRP

participants who are not City water customers will pay $4,039,353 in FY14. The out-of-city service charge is a 20%

premium on the GRP for participants outside the city limits. GRP fees from City customers are based on production

of 5.9 billion gallons of water; GRP fees from non-City customers are based on 2.4 billion gallons of water. Interest

income is estimated at $25,000. The Transfers in for $9,888,565 represent pumpage fees for City customers, which

are collected in the Water Utility Fund and transferred to the Surface Water Fund monthly.

The Surface Water Treatment Plant is expected to begin operation in September 2013 under the Construction

Manager at Risk (CMAR) contract. The CMAR takes on responsibility for the first year of operating the plant under

the CMAR method used for construction. Total operating expenses are $7,094,495 and include $721,401 for

personnel expenses, $1,245,405 for raw water cost, $1,300,000 for electricity, $1,360,888 for chemicals, $190,500

for permits fees, $57,600 for lab testing, $39,000 for the completed CIP projects, and $1,127,000 for CMAR

contract. Seven full time equivalent authorizations are being added in FY14, with start dates staggered through

FY14. These positions will bring the staffing to the required level to operate the surface water treatment plant. In

FY15 contractual cost will be reduced by the CMAR contract cost but there will be an increase in salaries as the

seven new positions will budgeted for the full year cost.

Debt service payment of $5,992,688 is for the 2011 Certificates of Obligation. The fund has budgeted transfers of

$1,497,093. This includes $1,030,542 to the Utility Fund cover the Surface Water portion of the debt service

payment for the Series 2008 and 2009 Revenue Bonds. In addition $458,102 will be transferred to the General Fund

for administrative overhead reimbursements. The fund currently has nine CIP projects in progress and no new

projects budgeted in FY14. Ending cash equivalents at 9/30/14 is estimated to be $8,564,164, which is above the

50% general purpose reserve required.141

CITY OF SUGAR LAND

ENTERPRISE FUND - SURFACE WATER

INCOME STATEMENT

FY13 FY14



REVENUES

GRP Fees 2,992,137$ 3,045,128$ 3,283,383$ 3,590,536$ 448,817$ 4,039,353$

Out of City Service Charge 28,162 32,106 35,083 25,142 3,143 28,285

Interest Income 25,371 25,000 25,567 25,000 - 25,000

Miscellaneous 59,215 - 4,905 - - -

Operating Revenues 3,104,885 3,102,234 3,348,938 3,640,678 451,960 4,092,638

Transfer In 6,891,154 8,259,202 8,290,039 8,787,380 1,101,185 9,888,565

Non Operating Revenues 6,891,154 8,259,202 8,290,039 8,787,380 1,101,185 9,888,565

Total Revenues 9,996,039 11,361,436 11,638,977 12,428,058 1,553,145 13,981,202

EXPENSES

Personnel Services 222,115 557,560 557,560 432,434 288,967 721,401

Operations & Maintenance 138,167 1,474,618 1,474,618 2,308,172 2,819,517 5,127,689

Raw Water 487,895 1,081,170 1,081,170 1,136,275 109,130 1,245,405

Capital 31,877 70,938 70,938 - - -

Operating Expenses 880,054 3,184,286 3,184,286 3,876,881 3,217,614 7,094,495

Capital Projects - - - -

Debt Service Payment 5,950,228 5,974,238 5,974,238 5,992,688 - 5,992,688

Membranes/Capital Repairs - 55,000 55,000 - 110,000 110,000

Transfers Out 3,490,445 1,321,797 1,330,080 1,488,644 8,449 1,497,093

Contingency 1,309,878 200,000 725,000 925,000

Non Operating Expenses 9,440,673 8,660,913 7,359,318 7,681,332 843,449 8,524,781

Total Expenses 10,320,727 11,845,199 10,543,604 11,558,213 4,061,063 15,619,276

Net Income (Loss) (324,688) (483,763) 1,095,374 869,845 (2,507,918) (1,638,074)

Cash Equivalents - Beginning 9,431,552 9,106,864 9,106,864 10,202,238 - 10,202,238Cash Equivalents - Ending 9,106,864$ 8,623,101$ 10,202,238$ 11,072,083$ (2,507,918)$ 8,564,164$

GRP Fee per 1,000 Gallons 1.32$ 1.50$ 1.50$ 1.50$ 0.25$ 1.75$

Reserve Requirement (50%) 5,160,364$ 5,922,600$ 5,271,802$ 5,779,107$ 2,030,532$ 7,809,638$

Over/Under Policy 3,946,501$ 2,700,502$ 4,930,436$ 5,292,977$ 754,526$

142

Surface Water

Mission StatementThe Utilities Department takes pride in providing a safe, dependable and effective public utility infrastructure, rendering

a diverse group of services to the citizenry in a responsive, efficient and cost effective manner with a customer oriented

approach that reflects the City’s tradition of excellence.

Services Provided

Surface Water is responsible for all operating and capital improvement activities related to the City’s required

conversion to surface water, which is funded through a fee per 1,000 gallons of water produced. Those outside the City

limits pay an out-of-City service charge over the monthly fees; service charges from New Territory, Greatwood and Tara

Plantation are credited to the debt reduction funds based on Strategic Partnership Agreements (SPAs).

Programs of Service

Surface Water is responsible for all planning and implementation of the City’s reduction in ground water use. Based on

the mandated surface water conversion, the program is also responsible for coordinating the identification, pursuit,

acquisition and implementation of alternatives to groundwater sources, including but not limited to surface water,

effluent reuse, conservation, and direct reuse projects.

FY14 Budget Requests

Seven additional positions total $288,967 for the operations of the surface water treatment plant in FY14. Recurring

additions total $2,883,647 for chemical, electricity, other contractual, water right options and permits fees. Most of the

additional expenditures are for the operation of the surface water treatment plant. One-time cost totals $45,000 for

legal services.

Performance Measures: Well Planned Community

The City Council measure for “Adequate infrastructure and services to support growth and to sustain our existingcommunity” is recommendations from Utilities master plans included and funded in the five-year CIP.

0%

20%

40%

60%

80%

100%

FY12 Estimate FY13 Estimate FY14 Estimate

Utilities CIP Projects from Master Plans

143

Surface Water



Salaries & Benefits 222,112$ 557,560$ 557,560$ 432,434$ 288,967$ 721,401$

Supplies 47,366 330,858 330,858 585,700 930,057 1,515,757

Professional & Contractual 573,967 2,009,530 2,009,530 2,646,615 1,670,390 4,317,005

Repair & Maintenance 3,299 38,959 38,959 6,850 310,650 317,500


Capital/Other 31,877 70,938 70,938 - - -

Category Totals 880,054$ 3,184,286$ 3,184,286$ 3,876,881$ 3,217,614$ 7,094,495$



FTE Count Totals 2.00 6.50 5.00 5.00 7.00 12.00

144

ENTERPRISE - SURFACE WATER FUND

WATERWORKS AND SEWER SYSTEM

TOTAL DEBT SERVICE OUTSTANDING

Due During

FY Ending


Total principal outstanding is comprised of one

FY14 1,855,000$ 4,137,688$ 5,992,688$ issue and matures by FY41

FY15 1,910,000 4,100,038 6,010,038

FY16 1,970,000 4,051,388 6,021,388 Amount

FY17 2,030,000 3,991,388 6,021,388 Series Outstanding Maturity

FY18 2,100,000 3,929,438 6,029,438 Series 2011 95,265,000$ FY41

FY19 2,190,000 3,865,088 6,055,088

FY20 2,275,000 3,798,113 6,073,113 The Surface Water Fund also pays for a

FY21 2,365,000 3,725,556 6,090,556 portion of the Series 2008 and 2009

FY22 2,465,000 3,637,825 6,102,825 Revenue Bonds through a transfer to the Utilities

FY23 2,590,000 3,536,725 6,126,725 Fund.

FY24 2,710,000 3,430,725 6,140,725

FY25 2,820,000 3,320,125 6,140,125

FY26 2,935,000 3,205,025 6,140,025

FY27 3,060,000 3,069,825 6,129,825

FY28 3,195,000 2,925,431 6,120,431

FY29 3,340,000 2,784,475 6,124,475

FY30 3,495,000 2,624,038 6,119,038

FY31 3,655,000 2,454,425 6,109,425

FY32 3,835,000 2,285,900 6,120,900

FY33 4,025,000 2,098,988 6,123,988

FY34 4,225,000 1,892,738 6,117,738

FY35 4,440,000 1,676,113 6,116,113

FY36 4,660,000 1,454,438 6,114,438

FY37 4,895,000 1,227,506 6,122,506

FY38 5,145,000 982,625 6,127,625

FY39 5,410,000 718,750 6,128,750

FY40 5,690,000 441,250 6,131,250

FY41 5,980,000 149,500 6,129,500

TOTAL 95,265,000$ 75,515,124$ 170,780,124$

$0

$1

$2

$3

$4

$5

$6

$7

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

FY2

1

FY2

2

FY2

3

FY2

4

FY2

5

FY2

6

FY2

7

FY2

8

FY2

9

FY3

0

FY3

1

FY3

2

FY3

3

FY3

4

FY3

5

FY3

6

FY3

7

FY3

8

FY3

9

FY4

0

FY4

1

Mill

ion

s

Debt Service Schedule

Principal Interest

145

A

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AirportF

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U.S. CustomsMaint& Ope

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146

Airport Fund

Sugar Land Regional Airport, which is owned by the City, is a self-supporting enterprise funded by user charges. The

airport is home to 160 aircraft and expects to sell an average of 261,190 gallons of fuel per month during FY14. The

City serves as a fixed based operator by providing fuel and general aviation customer services.

Fiscal Year 2013

Total revenues for FY13 are projected to be $25,828,937. Projected operating revenues total $18,098,113, which

includes $16,395,238 in fuel sales, $1,213,600 in hangar leases, $12,000 in interest income and $477,275 in

miscellaneous income. Non-operating revenues are projected to total $7,730,824 and consist of transfers in, grants

and bond proceeds for $7,508,967.

In FY13, there was an increase in gallons projected by 6% over the budgeted gallons. This is due in large part to an

increase in traffic, but was not accompanied by the expected increase in revenues as a result of a larger numbers of

customers qualifying for the lowest discount category than previous years. In response to this change in market

share, effective August 6, 2013, the discount program was adjusted to better recover the cost of operating the

airport. This adjustment combined with an increase of ten cents per gallon in the markup for Jet A fuel and twenty-

nine cents per gallon in the markup for AvGas self-serve fuel, account for the increase in anticipated fuel revenues.

Total expenses for FY13 are projected to be $26,321,352. Operating expenses, which include Administrative, FBO,

Café Select, Customs and Maintenance programs, are projected to be $16,655,631. Non-operating expenses are

projected to total $9,665,721 and include transfers for capital projects and administrative overhead, debt service

payments and bond refunding costs. Ending cash equivalent balance at 9/30/13 is projected to be $2,552,661, a

drawdown of $492,415, part of which is being used for capital projects.

Fiscal Year 2014

Total operating revenues for FY14 are budgeted at $19,482,268. Revenues from fuel sales are budgeted at

$17,773,599, a 7.7% increase over FY13 projections. Non-operating revenues in FY14 are budgeted at $223,440,

which include grant proceeds of $50,000, and operating transfers in of $173,440. The transfers from the General

Fund and Debt Service Fund are equal to the estimated property taxes collected on taxable value at the airport

along with a transfer from the Sugar Land Development Corporation for international marketing efforts.

Total operating expenses are budgeted at $17,886,507, which include the Administration, FBO, Café Select,

Customs and Maintenance programs. Expenses are increasing by $87,000 over the base budget for capital items.

The FY14 budget does not include any additional positions or recurring additions. One-time additions in FY14

include funds for a new floor sweeper for the hangars, a golf cart for transporting customers, a truck to improve

line crew productivity and a Ground Power Unit.

Total non-operating expenses are estimated at $2,289,887, which include transfer of funds to the Airport CIP,

overhead reimbursement to the General Fund and debt service payments on outstanding Airport bonds. Ending

cash equivalent balance at 9/30/14 is expected to be $1,997,665.

As a result of ongoing federal budget discussions, there is the potential that the Sugar Land Regional Airport air

traffic control tower, which is part of the FAA contract tower program, could be unfunded in the future. In order to

ensure uninterrupted high quality services at the airport, a plan has been developed in the event that the tower is

no longer funded by the federal government. This plan has not been incorporated in the FY14 budget; however,

financial analysis shows the Sugar Land Regional Airport has the capacity to fund the tower through a combination

of additional fees and cutting expenses, along with a potential cost share with the state.

147

Financial AnalysisAs the airport is intended to be financially independent and self-supporting, financial ratios are used to analyze

financial position and operating results. A comparison based on FY13 projections and FY14 budget amounts is

shown below.

ProjectionsFY13

BudgetFY14



Cash reserve ratios for both FY13 projections and FY14 are above the targeted minimum of 25% of expenses net of

fuel for resale and bond coverage is above the 1.25 target.

The graph below shows fuel gallons sold increasing each year following FY09. FY13 projections and the FY14 budget

show higher fuel sales due to increasing air traffic. The aviation community has recognized Sugar Land as a great

place to land and base, not only for the convenience as a point of entry to the greater Houston area, but also for

the highest level of customer service.

3.134

3.064

2.848

2.681

2.183

2.054

2.560

- 0.5 1.0 1.5 2.0 2.5 3.0 3.5

FY14B

FY13P

FY12

FY11

FY10

FY09

FY08

Millions

Gallons Sold

148

CITY OF SUGAR LAND

ENTERPRISE FUND - AIRPORT

INCOME STATEMENT


Actual Budget Projection Base Budget Changes Budget

REVENUES

Fuel Sales 13,885,794 15,903,221$ 16,395,238$ 17,773,599$ -$ 17,773,599$

Hangar Leases 1,293,727 1,260,556 1,213,600 1,249,678 - 1,249,678

Miscellaneous Revenues 495,944 528,525 477,275 451,990 - 451,990

Interest Income 11,517 19,000 12,000 7,000 - 7,000

TOTAL OPERATING REVENUES 15,686,983 17,711,301 18,098,113 19,482,268 - 19,482,268

Operating Transfers In 146,653 165,530 171,857 173,440 - 173,440

Grant Proceeds 46,678 50,000 50,000 50,000 - 50,000

Bond Proceeds 7,508,967 7,508,967 - - -

TOTAL NON-OPERATING REVENUES 193,331 7,724,497 7,730,824 223,440 - 223,440

TOTAL REVENUES 15,880,314 25,435,798 25,828,937 19,705,709 - 19,705,709

OPERATING EXPENSES

Administrative 870,629 1,067,145 1,067,145 1,071,116 7,000 1,078,116

FBO Services 11,726,307 13,604,698 14,365,467 15,526,145 80,000 15,606,145

Café Select 400 231,571 231,571 231,011 - 231,011

Customs 166,016 239,698 214,398 204,898 - 204,898

Maintenance and Operations 639,807 777,050 777,050 766,337 - 766,337

TOTAL OPERATING EXPENSES 13,403,159 15,920,162 16,655,631 17,799,507 87,000 17,886,507

Other Requirements 1,015,180 958,617 958,617 1,102,717 - 1,102,717

Miscellaneous 96,842 452,697 151,762 250,292 - 250,292

Payment to Escrow Account 6,400,009 6,398,435 - - -

Operating Transfers Out 1,995,590 2,156,907 2,156,907 936,879 - 936,879

TOTAL NON-OPERATING EXPENSES 3,107,612 9,968,230 9,665,721 2,289,887 - 2,289,887

TOTAL OTHER SOURCES/(USES) 16,510,771 25,888,392 26,321,352 20,176,394 - 20,176,394

NET INCOME (LOSS) (630,457) (452,594) (492,415) (470,686) - (470,686)

CASH EQUIVALENTS BEGINNING 4,480,901 3,850,444 3,850,444 3,358,029 - 3,358,029

Debt Service Reserve (869,541) (805,368) (805,368) (889,698) - (889,698)

CASH EQUIVALENTS ENDING 2,980,903$ 2,592,482$ 2,552,661$ 1,997,645$ 1,997,645$

CASH EQ. RESERVE RATIO (25% min) 62% 62% 44% 44%

BOND COVERAGE (1.25x min) 1.68 1.37 1.49 1.49

FUEL GALLONS SOLD 2,890,773 3,063,813 3,134,281 3,134,281

149

CITY OF SUGAR LAND

AIRPORT

SUMMARY OF REVENUES


Actual Budget Projections Base Budget Changes Budget

REVENUES:

Fuel Sales

Fuel Sales - Aviation 13,885,794 15,903,221 16,395,238 17,773,599 - 17,773,599

Total Fuel Sales 13,885,794 15,903,221 16,395,238 17,773,599 - 17,773,599

Lease/Rental

Short Term Land Lease

Long Term Land Lease 115,916 94,292 94,292 94,292 - 94,292

Corporate Hangar (I) Lease 161,918 161,665 161,665 175,407 - 175,407

Corporate Hangar (II) Lease 100,866 108,717 108,717 117,958 - 117,958

Northwest (I) Hangar Lease 99,616 99,712 52,756 52,756 - 52,756

Northwest (II) Hangar Lease 60,000 65,100 65,100 70,634 - 70,634

Short Term Hangar Lease 81,631 88,970 88,970 96,532 - 96,532

Leased Premises 56,770 50,100 50,100 50,100 - 50,100

T - Hangar Rental 617,011 592,000 592,000 592,000 - 592,000

Total Lease/Rental 1,293,727 1,260,556 1,213,600 1,249,678 1,249,678

TOTAL FUEL/RENTAL REVENUE 15,179,521 17,163,776 17,608,838 19,023,278 - 19,023,278

OTHER REVENUES:

Café Revenue 24,682 45,625 45,625 45,625 - 45,625

Parking Revenues (from expansion) - 60,000 - - - -

Rental Cars 195,992 185,000 185,000 185,000 - 185,000

Ramp Fees 152,100 120,000 120,000 120,000 - 120,000

Gift Shop 1,186 1,300 1,300 1,300 - 1,300

Jet Fuel Additive - Prist 24,549 25,500 25,500 25,500 - 25,500

Reimbursements 9,443 4,000 6,350 4,000 - 4,000

Catering Commission 5,236 6,000 6,000 6,000 - 6,000

Royalties - Mineral 458 600 600 600 - 600

Call Out Fees 6,500 - 1,965 1,965 - 1,965

Sale of Property 153 - 3,500 - - -

Aircraft Maintenance 1,945 500 1,435 2,000 - 2,000

Miscellaneous 73,701 80,000 80,000 60,000 - 60,000

Total Miscellaneous 495,944 528,525 477,275 451,990 - 451,990

Interest Income 11,517 19,000 12,000 7,000 - 7,000

Total Operating Revenues 15,686,983 17,711,301 18,098,113 19,482,268 - 19,482,268

Transfers In - Property Tax (D/S) 43,494 51,030 53,739 54,380 - 54,380

Transfers In- Property Tax (G/F) 53,159 64,500 68,118 69,060 - 69,060

Transfers from SLDC 50,000 50,000 50,000 50,000 - 50,000

City Capital Projects Fund

Total Transfers In 146,653 165,530 171,857 173,440 - 173,440

Other Financing Sources:

Ramp Grant 46,678 50,000 50,000 50,000 - 50,000

Bond Proceeds - 7,508,967 7,508,967 - - -

Total Non-Operating Revenues 193,331 7,724,497 7,730,824 223,440 - 223,440

TOTAL REVENUES 15,880,314$ 25,435,798$ 25,828,937$ 19,705,708$ - 19,705,708$

150

Airport

Mission StatementThe mission of Sugar Land Regional Airport is to be the safest, best planned, and most recognized premier reliever airport within the

Houston Metropolitan area. This will be accomplished through a thoughtful marketing plan that communicates that we are an

upscale destination, providing a lasting impression through superior services, facilities and state of the art technology, while being a

valued neighbor and financially successful.

Services ProvidedThe Sugar Land Regional Airport is rapidly becoming a global airport, servicing aircraft and customers from around the world. In

addition, customers are also servicing new markets worldwide. The combination of award winning facilities, U.S. Customs services, a

general aviation center second to none in the state, and multi-year designation as the number one Fixed Base Operator (FBO) in the

Americas, ensures that the Airport continues as a leader among its competition and peers.

Programs of ServiceAdministration is responsible for the overall management, planning, marketing and outreach efforts of the airport along with

contract administration and CIP project completion. Acting as the Fixed Base Operator (FBO), under the name “Global Select,” staff

provides line services including aircraft refueling and marshaling services. Lease management of airport property is also fulfilled by

this program. Customer service is provided to handle customer invoices and customer requests for hotel reservations, food, rental

car requests, and catering orders. US Customs provides passenger and luggage inspection for international arrivals. Maintenance &

Operations oversees building, ground, and custodial maintenance of airport facilities. Café Select provides first-class customer

service and amenities to the airport’s customers by providing gourmet food and beverages.

FY14 RequestsTotal expenses are increasing by $87,000 over the base budget for capital items. The FY14 budget does not include any additional

positions or recurring additions. One-time additions in FY14 include funds for a new floor sweeper for the hangars, a golf cart for

transporting customers, a truck to improve line crew productivity and a Ground Power Unit. The additions are in an effort to

continue to deliver the same level of excellent customer service as the airport continues to grow in size.

Performance Measures: Strong Local Economy

A key airport measure of activity is take-offs and landings, or

operations. As number of operations increase, additional demands are

placed on FBO staff to provide service to customers.

The airport is self-supporting, bringing in most of its revenue from

sales of aviation fuel. The number of gallons sold is tracked monthly

to identify trends. Annual Fuel Gallons Sold is a good indicator of

growth in activity levels at the airport.

2.85

3.06

3.13

2.70

2.80

2.90

3.00

3.10

3.20


Fuel Gallons Sold (in millions)

83,552 83,87984,718

75,000

77,000

79,000

81,000

83,000

85,000


Takeoffs and Landings

151

Summary by Category

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY14 Base

Budget

FY14

Changes

FY14

Budget

Salary & Benefits 1,842,287 2,189,520 2,150,307 2,593,337 - 2,593,337

Supplies 10,322,605 12,071,219 12,840,176 13,751,797 5,000 13,756,797




Capital Items/Other 114,679 132,139 122,564 39,000 82,000 121,000

Category Totals 13,403,159$ 15,920,162$ 16,655,631$ 17,799,507$ 87,000$ 17,886,507$

Summary by Type

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

Administrative 870,629 1,067,145 1,067,145 1,071,116 7,000 1,078,116

FBO Services 11,726,307 13,604,698 14,365,467 15,526,145 80,000 15,606,145

US Customs 166,016 239,698 214,398 204,898 - 204,898

Maintenance and Operations 639,807 777,050 777,050 766,337 - 766,337

Café Select 400 231,571 231,571 231,011 - 231,011

Category Totals 13,403,159$ 15,920,162$ 16,655,631$ 17,799,507$ 87,000$ 17,886,507$

FTE Count by Program

FY12

Actuals

FY13 Current

Budget

FY13

Projection

FY 14 Base

Budget

FY14

Changes

FY14

Budget

Administrative 6.00 7.00 7.00 7.00 - 7.00

FBO Services 20.50 24.50 24.50 24.50 - 24.50

Maintenance and Operations 7.00 8.00 8.00 8.00 - 8.00

Café Select - 2.50 2.50 2.50 - 2.50

FTE Count Totals 33.50 42.00 42.00 42.00 - 42.00

152


GENERAL OBLIGATION AND CERTIFICATES OF OBLIGATION

TOTAL DEBT SERVICE OUTSTANDING *

Fiscal Year Principal Interest Total

2014 617,559$ 359,158$ 976,717$

2015 632,559 337,302 969,861 Amount

2016 652,559 319,787 972,346 Series Outstanding Maturity

2017 672,559 299,485 972,044 2005A 320,000 2025

2018 692,559 276,905 969,464 2007 3,670,000 2028

2019 719,845 253,476 973,321 2009 392,684 2029

2020 742,606 226,676 969,282 2012A 5,610,000 20252021 777,606 196,272 973,878 9,992,684$

2022 807,606 164,568 972,174

2023 837,606 131,664 969,270

2024 872,606 97,459 970,065

2025 907,479 61,771 969,250

2026 327,479 36,880 364,359

2027 347,352 23,090 370,442

2028 362,352 8,479 370,831

2029 22,352 503 22,8559,992,684$ 2,793,470$ 12,786,154$

* Does not include anticipated issuance of new debt

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

Outstanding Combination Tax & Revenues Certificates of Obligation

Interest Principal

153

Solid Waste Fund

The Solid Waste Enterprise Fund is used to account for residential solid waste removal. This fund is primarily

supported through user charges.

Republic Services is the sole provider of solid waste services in the City at a cost to residents of $16.00 per

household per month. Beginning January 1, 2014, residents will experience a 2.5% increase in cost for a new

monthly rate of $16.40. Solid waste charges are billed through residential utility bills.

Residents receive automated garbage collection twice per week, automated recycling collection once per week,

bulky waste collection once per month and an on-call collection service. A green waste program ensures grass

clippings, leaves, brush, and tree limbs are recycled into mulch or compost instead of being sent to a landfill.

Beginning October 2013, Republic Services will become the exclusive commercial service provider. Therefore, all

commercial businesses in the City must use Republic as their provider or opt out by informing the City that they

have a contract for up to the remaining number of months. The agreement provides an increase in the Commercial

Franchise Fee from 4% to 5%, as well as a new revenue stream through the Residential Franchise Fee, which will

also be at 5%.

Fiscal Year 2013

Total revenues for FY13 are projected to be $5,107,130 and include $4,898,200 from collection and recycling fees,

$125,000 from franchise fees, $1,100 in commercial license fees, and $2,100 in miscellaneous revenues. A total of

$65,227 is transferred in from the General Fund to support Keep Sugar Land Beautiful programming.

Total expenses are projected to be $5,087,686, which includes personnel, contracted services, and general

operating costs. Personnel expenses total $132,127 for contract monitoring and program administration. The

estimated annual cost for solid waste and curbside recycling programs contracted with Republic Services is

$4,788,021. Other contracts for educational programming total $65,227. General operations & maintenance costs

are projected to be $89,065. The Solid Waste Fund transferred $13,246 to the Fleet Replacement Fund, General

Fund, and High Technology Fund in FY13.

The estimated ending cash equivalents balance at September 30, 2013 is projected to be $70,480.

Fiscal Year 2014

Total revenues for FY14 are budgeted at $5,472,560. Total budgeted revenue from residential collection and

recycling fees is $5,094,400. The City will not bill for Commercial Services; businesses will contract and pay Republic

directly. Other revenues include $185,060 in commercial franchise fees, $191,000 in residential franchise fees, and

$2,100 in miscellaneous revenues.

Total expenses are $5,485,153 and include $189,387 in personnel expenses for contract monitoring and program

administration, $4,984,969 for the solid waste contract, and $44,625 in operation and maintenance costs. Transfers

out total $266,172 and include transfers to the Fleet Replacement Fund and the General Fund for pavement

rehabilitation and general overhead. Additions to the FY14 budget include 0.5 of an environmental inspector, full

overhead reimbursement to the General Fund and $200,000 to support increased pavement rehabilitation efforts

in Public Works.

The estimated ending cash equivalents balance as of September 30, 2014 is estimated to be $57,887.

154

CITY OF SUGAR LAND

ENTERPRISE FUND - SOLID WASTE

INCOME STATEMENT

FY13

FY12 Current FY13 FY14 FY14 FY14


REVENUES

Solid Waste Collections 4,933,392 4,852,300 4,898,200 5,094,400 -$ 5,094,400$

Commercial Franchise Fees 131,562 125,000 125,000 185,060 - 185,060

Commercial License App. Fees 1,400 1,500 1,100 - - -

Residential Franchise Fees - - - 191,000 191,000

Recycling Program 252 - 400 - - -

Miscellaneous 2,074 2,100 2,100 2,100 - 2,100

Grant Revenue - 12,073 15,092 - - -

Interest Income 11 -

Operating Revenues 5,068,680 4,992,973 5,041,903 5,472,560 - 5,472,560

Transfers In 65,227 65,227 65,227 - - -

Total Revenues 5,133,907 5,058,200 5,107,130 5,472,560 - 5,472,560

EXPENDITURES

Contractual Services 4,909,710 4,743,900 4,788,021 4,984,969 - 4,984,969

Salary & Benefits 130,097 132,127 132,127 157,194 32,193 189,387

Education Programs - 65,227 65,227 - - -


Operating Expenses 5,087,731 5,030,319 5,074,440 5,186,788 32,193 5,218,981

Transfers Out 17,070 13,246 13,246 66,172 200,000 266,172

Total Expenses 5,104,801 5,043,565 5,087,686 5,252,960 232,193 5,485,153

Net Income (Loss) 29,106 14,635 19,444 219,600 (232,193) (12,593)

Cash Equivalents - Beginning 21,930 51,036 51,036 70,480 70,480

Cash Equivalents - Ending 51,036$ 65,671$ 70,480$ 290,080$ (232,193)$ 57,887$

155

Solid Waste

Services ProvidedSolid Waste programs are primarily supported through user charges. Services include residential solid waste pickup and

curbside recycling.

Programs of ServiceThe Solid Waste program provides commercial solid waste collections, residential solid waste collections, facilitates a

recycling program, provides emergency response for debris collection, and engages the community with education &

outreach activities.

FY14 RequestsFor the FY14 budget, $31,193 will be for the shared cost of an Environmental Services Inspector with Stormwater

Management. An additional $200,000 is being transferred to the General Fund to support pavement rehabilitation work.

Performance Measures: Responsible City GovernmentThe key measure for the Solid Waste Fund is the number of households serviced as the City outsources residential solid

waste collection. As the number of households increases, additional demands are placed on the contractor. At the end

of FY14, it is estimated 26,340 households will be served.



Contractual Services 4,909,710$ 4,743,900$ 4,788,021$ 4,984,969$ -$ 4,984,969$

Salary & Benefits 130,097 132,127 132,127 157,194 32,193 189,387

Educational Programs - 65,227 65,227 - - -


Operating Expenditures 5,087,731 5,030,319 5,074,440 5,186,788 32,193 5,218,981

Transfers out 17,070 13,246 13,246 66,172 200,000 266,172

Category Totals 5,104,801$ 5,043,565$ 5,087,686$ 5,252,960$ 232,193$ 5,485,153$



FTE Count Totals 2.00 2.00 2.00 2.00 0.50 2.50

156

Internal Service Funds

Internal Service Funds are used to account for the financing of goods or services provided by one fund or

department to another fund or department on a cost reimbursement basis. The City of Sugar Land currently has

three internal service funds: Employee Benefits, Fleet Replacement and High Technology Replacement.

Employee Benefits FundThis fund accounts for all financial resources associated with employee benefits, excluding workers’ compensation

and retirement. The City provides health and dental benefits for full-time employees. Part-time employees are not

eligible for coverage. Employees choosing dependent coverage reimburse the City for premiums through payroll

deductions. Additional coverage includes, but is not limited to, short-term disability, voluntary life, dependent life

insurance, and vision. Prepaid legal services, cancer insurance, and savings bonds are also available to purchase.

Revenues and expenditures for optional coverage are pass-through only, therefore are not included in the City

contribution. The City also pays 100% of long-term disability, accidental death and dismemberment, and provides a

$50,000 life insurance policy for all full-time employees. The City transitioned to a self-funded medical plan out of

the traditional private insurance model in January of 2012 to help lower costs and maintain stability in premiums.

Fiscal Year 2013

FY13 contributions from the City, employees and retirees are projected to total $6,513,717, while interest income

and other reimbursements are projected to be $1,890. The total projected revenues for FY13 is $6,515,607.

Projected expenses total $6,454,879 and include insurance premiums, claim payments, administrative fees, and

unemployment compensation. The projected cash equivalents balance at September 30, 2013 is $239,787.

Fiscal Year 2014

FY14 total revenues are budgeted at $7,003,985. This includes interest income of $1,890 and contributions of

$7,002,095.

FY14 total expenses are budgeted at $6,985,277. This includes claims payment and other premiums of $6,495,077

and as well as other expenses of $490,200. The budgeted ending cash equivalents balance is $258,494. The

$1,250,000 reserve for self-insurance the City established in FY13 is still fully intact.

Fleet Replacement FundThis fund accounts for vehicle replacement under the City’s Fleet Replacement Policy, SS-102, most recently revised

in February 2009. Each year during the budget process an inventory is compiled of all fleet equipment. The list is

reviewed and rated by Fleet Maintenance. Each vehicle or piece of equipment is assigned a code that reflects its

working condition. Fleet Maintenance prepares a list of vehicles recommended for replacement based on the

criteria in the policy and Purchasing provides estimated replacement prices. The vehicles on the recommended list

may not be the actual vehicles replaced in the upcoming budget year due to constantly changing vehicle conditions.

Annual contributions are funded through operating transfers from the participating funds based on purchase price

and useful life of each vehicle. Fire trucks are excluded from this fund. The fund balance policy for the Fleet

Replacement Fund is to maintain a fund balance of at least 10% of the estimated value of the inventory. Vehicles

are added to the inventory list in the fiscal year purchased and begin contributing to the fund the following fiscal

year to ensure adequate funds are available when replacement is due.

157

Fiscal Year 2013

The projected contributions, auction proceeds, and other revenues total $1,041,302. Expenses for purchase of

vehicles, related equipment, and a one-time transfer to the CIP fund total $739,081 leaving a projected ending cash

equivalent balance of $1,716,009.

Fiscal Year 2014

Total revenues are budgeted at $1,122,171. Contributions from participating funds total $931,660. Insurance

reimbursement, sale of property and interest income total $190,512. This includes insurance proceeds for vehicles

that are totaled and replaced prior to their planned replacement date.

Total expenditures are budgeted at $1,013,291 for the replacement of 19 vehicles, and the purchase of 2

additional. Also included in budgeted expenses are funds to place vehicles in operation, such as decal work, the

installation of electronic equipment, and a contingency of 10% to ensure adequate funds are available in the event

equipment prices increase. The budget includes funds for unexpected replacement due to insurance totaling and a

contingency for variations in anticipated costs. The budgeted ending cash equivalents balance is $1,824,890.

High-Technology Replacement FundThis fund provides centralized accounting and management for the City's high-tech equipment, which includes

computers, radar and telecommunications equipment. The fund is managed under the City’s policy on Technology

Equipment Replacement, IT-101, which was updated in June 2009. The inventory covered by the High Tech

Replacement Fund is approximately $4.4 million. This fund operates in the same manner as the Fleet Replacement

Fund. The Information Technology staff assigns condition codes and after review and approval, the replacement list

is compiled and scheduled through the annual budget process. Contributions to the fund are based on the purchase

cost of the equipment.

Fiscal Year 2013

Projected revenues for FY13 total $1,139,897 and expenditures are projected at $1,861,353. Expenditures include

computers, printers, servers, routers, installations, and public safety radios. The projected ending cash equivalent

balance is $797,540.

Fiscal Year 2014

Budgeted revenues total $1,470,700 and include transfers from other funds and interest income. Contributions to

the fund include payments for equipment replacement according to the schedule identified in the High Tech

Replacement policy. Total expenditures are budgeted at $1,425,651 and include $919,652 for replacement of IT

managed items and $505,999 for replacement of Public Safety technology such as radios, in-car video systems and

radars.

The ending cash equivalent balance of the fund is expected to be $842,589 and meets the fund balance

requirement of 10% of the value of IT inventory.

158

CITY OF SUGAR LANDINTERNAL SERVICE FUND - EMPLOYEE BENEFITSINCOME STATEMENT


Actuals Budget Projection Budget Changes BudgetRevenues

Contributions 6,291,368$ 6,590,395$ 6,513,717$ 6,821,300$ 180,795$ 7,002,095$Miscellaneous 7,900 - - - - -Interest Income 1,884 2,500 1,890 1,890 - 1,890Operating Revenues 6,301,152 6,592,895 6,515,607 6,823,190 180,795 7,003,985

Transfers In 1,250,000Total Revenues 7,551,152 6,592,895 6,515,607 6,823,190 180,795 7,003,985

ExpensesPremiums & Claims 5,940,566 6,107,967 6,000,679 6,314,282 180,795 6,495,077Other 403,028 424,200 454,200 490,200 - 490,200Total Expenses 6,343,594 6,532,167 6,454,879 6,804,482 180,795 6,985,277

Net Income (Loss) 1,207,558 60,728 60,728 18,708 - 18,708Cash Equivalents- Beginning 221,501 1,429,059 1,429,059 1,489,787 1,489,787Reserve for Self Insurance (1,250,000) (1,250,000) (1,250,000) - (1,250,000)Cash Equivalents - Ending 1,429,059$ 239,787$ 239,787$ 258,494$ -$ 258,494$

Budgeted Participants 609 611 611 611 15 626Operating Cost Per Participant 10,416$ 10,691$ 10,564$ 11,137$ 12,053$ 11,159$

159

CITY OF SUGAR LAND

INTERNAL SERVICE FUND - FLEET REPLACEMENT FUND

INCOME STATEMENT

FY13 FY14



REVENUES

Sale of Property 83,572$ 40,000$ 80,829$ 47,500$ -$ 47,500$

Insurance Reimbursement 5,032 140,000 140,000 140,000 - 140,000

Interest Income 3,223 2,800 2,800 3,012 - 3,012

Transfers From Other Funds 783,650 809,390 817,673 839,560 92,100 931,660

Total Revenues 875,477 992,190 1,041,302 1,030,071 92,100 1,122,171

EXPENSES

Vehicles & Contractual Service 1,245,015 979,081 699,081 911,991 101,300 1,013,291

Transfer to CIP Fund 40,000 40,000 - - -

Total Expenses 1,245,015 1,019,081 739,081 911,991 101,300 1,013,291

Net Income (Loss) (369,538) (26,891) 302,221 118,080 (9,200) 108,880

Cash Equivalents- Beginning 1,783,326 1,413,788 1,413,788 1,716,009 1,716,009

Cash Equivalents- Ending 1,413,788$ 1,386,897$ 1,716,009$ 1,834,090$ (9,200)$ 1,824,890$

160

CITY OF SUGAR LAND

INTERNAL SERVICE FUND - HIGH-TECH REPLACEMENT FUND

INCOME STATEMENT

FY13 FY14



Revenues

Sale of Capital Property 2,187$ -$ -$ -$ -$ -$

Interest Income 2,996 1,328 1,063 - - -

Transfers 1,223,886 1,138,834 1,138,834 1,371,585 99,115 1,470,700

Total Revenues 1,229,069 1,140,162 1,139,897 1,371,585 99,115 1,470,700

Expenditures

Equipment & Contractual Services 596,917 1,861,353 1,861,353 1,326,536 99,115 1,425,651Total Expenditures 596,917 1,861,353 1,861,353 1,326,536 99,115 1,425,651

Revenues Over/Under Expenditures 632,152 (721,191) (721,456) 45,049 - 45,049

Cash Equivalents- Beginning 886,844 1,518,996 1,518,996 797,540 797,540

Cash Equivalents- Ending 1,518,996$ 797,806$ 797,540$ 842,589$ -$ 842,589$

-

161

Component Units

The City of Sugar Land has three entities that are considered component units of the City. They are the Sugar Land

Development Corporation (SLDC), the Sugar Land 4B Corporation (SL4B), and the Tax Increment Reinvestment Zone

(TIRZ) #1 that covers the Town Square area. The SLDC and the SL4B are the only component units included in the

City’s budget. A component unit is defined as a legally separate organization for which the elected officials of the

primary government (the City) are financially accountable.

The SLDC was created in 1993 by the City under the Texas Development Corporation Act of 1979 and the SL4B was

created in 1995. The role of the SLDC is to provide guidance and funding for the operations of the City’s economic

development program and provide business incentives to support and promote the growth and diversification of

the City’s economic base through various programs run through the Economic Development Department. The

function of the SL4B is to provide guidance and funding for quality of life projects such as parks and aesthetics, and

support economic development efforts through the City’s economic development program. The City Council must

approve the budget and any bond issues for the SL4B.

The Corporations are financed by additional sales taxes of a quarter cent for each Corporation, which was approved

by the voters. The SLDC is a type A sales tax corporation and the SL4B is a type B sales tax corporation. State law

allows the City to collect this sales tax to assist in the promotion, enhancement, and development on behalf of the

City. The Boards of Directors are appointed by and serve at the discretion of the City Council. In the event of

dissolution, net assets of the Corporations shall be conveyed to the City.

The Tax Increment Reinvestment Zone #1 represents the property improvements located at the Sugar Land Town

Square development at the southeast corner of U.S. Highway 59 and State Highway 6. The City of Sugar Land, Fort

Bend County, and LID#2 are the entities participating in the TIRZ. The TIRZ#1 budget is not included in the City’s

total budget but is included in the document for reference.

Sugar Land Development CorporationFiscal Year 2013

Total revenues are projected to be $13,089,962, which includes sales tax of $5,437,020, interest income of $10,990,

assignment from TIRZ #1 of $425,000 and bond proceeds for $7,216,952.

Expenditures are projected at $16,021,989 and include Economic Development Program costs of $770,950. These

expenditures include items such as business recruitment, travel and training, dues and memberships, professional

services for marketing efforts, research and advertising. Economic Development Incentive projections total

$2,685,000. Capital Projects Reimbursement is estimated to be $3,889,032. Projects funded by the corporation

include US59 Beautification Phase III, US59 Widening, land acquisition in Telfair, Reed Road at Jess Pirtle wireless

communication, and extension of the U-Turn deceleration lane at the US59/SH99 interchange. A total of $6,990,575

is projected in design for the performing arts center. The Corporation projects to pay $63,654 and $956,099 for

debt service on the existing debt prior to FY13. Contractual services are estimated at $12,590. The Corporation will

reimburse the City $460,626 for Economic Development staffing and support services, and will consider a budget

amendment to fund $6.99 million in design for the performing arts center in September.

Projected available funding at 9/30/13 is $4,295,393. The fund balance is $3,751,691 higher than the policy

requirement of $543,702.

163

Fiscal Year 2014

Revenues are budgeted at $6,097,363. Sales tax makes up 91.6% of the revenue and is estimated at $5,585,909

based on a 2.7% increase over FY13 projections. Budgeted interest income is $11,454. An estimated assignment of

$500,000 from TIRZ #1 partially supports the debt service requirement on the sales tax revenue bonds issued for

Town Square infrastructure.

Budgeted expenditures total $4,334,276. Economic Development Program expenditures total $597,018, and

include items such as business recruitment, travel and training, dues and memberships, professional services for

marketing efforts, research and advertising. The budget includes $1,700,000 for the direct incentives. Capital

Projects Reimbursements total $150,000 for U.S.59 Northbound U Turn Extension @ SH6. The Corporation

anticipates a sales tax incentive grant of $67,778 and debt service of $958,255 for debt issued prior to FY13. A total

of $473,252 is budgeted for the debt planned for late FY13 for the design of the performing arts center. Contractual

services are budgeted at $12,590 and transfers to other funds include $50,000 to the Sugar Land Regional Airport

for international marketing and $325,383 to the General Fund for Economic Development staff, support services

and CIP management fee.

Estimated available funding at 9/30/14 is $5,594,687. The Corporation has a bond coverage ratio of 1.43, which is

above the 1.25 minimum. Ending fund balance is $5,036,096 over the policy requirements.

Sugar Land 4B CorporationFiscal Year 2013

Total revenues are projected to be $6,104,145. This includes sales tax for $5,437,020, interest income of $12,697,

TIRZ assignment of $152,325 and miscellaneous revenue of $502,103 made up of rent for offsite parking and

participation rent from the Skeeters at Constellation Field.

Total expenditures are projected to be $7,571,933. Economic Development program costs are projected to be

$659,110. Transfers to Capital Projects are projected to be $3,059,013. These include the Baseball Stadium,

Baseball Stadium Off-Site Parking, Festival Site, Wayfinding – Phase II, Baseball Stadium City Cost, Ditch A-22-Hike&

Bike Trail, Canoe Launch on the Brazos, Mayfield Park Improvements, Brazos River Park – Phase II, and Joint

Participation in CIP. Debt Service payments are $3,355,106 and contractual services are estimated at $432,900

which includes reimbursement to the City for staff support and project management.

Projected available funding at 9/30/13 is $2,249,216. The fund balance is projected to be $1,705,514 higher than

policy requirements of $543,702, which constitutes 10% of projected sales tax.

Fiscal Year 2014

Total revenues are projected to be $5,831,042. This includes sales tax for $5,585,909, interest income of $11,102,

TIRZ assignment of $154,031 and miscellaneous revenue of $80,000, which is rent for off-site parking at

Constellation Field.

Expenditures total $6,652,087. Economic Development Program expenditures total $511,621. Capital projects

funding is budgeted at $1,012,000, which includes Joint Participation in CIP, Universally Accessible Playground @

First Colony Park, Settler’s Way Park Improvements and Gannoway Lake Park. Debt Service is budgeted at

$3,348,206 and contractual services are at $560,849, which includes reimbursement for support staff. FY14 budget

also includes the payment of a promissory note for $1.1 million. The promissory note from FY11 was used to

purchase the land for the Baseball Stadium Off-Site parking. The budget also includes $50,000 for City-wide

branding.

164

Estimated available funding at 9/30/14 is $658,245. The Corporation has a fund balance policy of 10% of budgeted

sales tax. The fund balance is estimated to be $126,654 above policy requirements.

Tax Increment Reinvestment Zone #1Fiscal Year 2013

Revenues for FY13 are projected to be $898,070 or $31,080 more than the budget of $866,990. The budget for

incremental taxes was based on the 2012 certified tax roll of $93.8 million. Property taxes allocated from the City,

County and LID#2 total $892,270 and interest income is projected at $800. Income from underground conduit

leases is projected at $5,000.

Operating expenditures are projected to be $911,010 and include $250,000 for marketing events in Town Square

put on by the Town Square Property Owners Association. Assignments totaling $577,325 were made to Sugar Land

Development Corporation and Sugar Land 4B Corporation toward repayment of debt issued in December 2005 for

developer reimbursements in Town Square. The projected ending fund balance at 9/30/13 is $75,798.

Fiscal Year 2014

Revenues are budgeted to be $950,867, which includes property taxes for $944,867, interest income for $1,000 and

underground conduit for $5,000. Property taxes is based on the added value from the 2013 certified tax roll for the

TIRZ of $101 million and 2013 tax rates for each participating entity at a 99.2% collection rate.

Operating expenditures are estimated to be $261,549, which includes $250,000 for marketing events in Town

Square, and $11,549 for insurance, banking fees, auditing services, and administrative services from City staff. Non-

operating expenditures include $70,000 for Town Square Plaza events and anticipated assignment of revenues to

the SLDC for $500,000 and SL4B for $154,031. The assignments will support a portion of the debt service

requirements on sales tax revenue bonds issued in December 2005 to reimburse the developer for Town Square

infrastructure and expansion of the Texas Garage.

Estimated ending fund balance at 9/30/14 is $41,085. The TIRZ has no minimum fund policy balance requirement.

165

CITY OF SUGAR LAND

SUGAR LAND DEVELOPMENT CORPORATION

INCOME STATEMENT

FY13 FY14



Revenues

Sales Tax 5,400,228$ 5,437,020$ 5,437,020$ 5,585,909$ -$ 5,585,909$

Interest Income 17,904 28,703 10,990 11,454 - 11,454

TIRZ Assignment 325,000 425,000 425,000 500,000 - 500,000

Bond Proceeds - 7,216,952 - - -

Other Revenue/Reimbursements - 2,000 - - - -

Total Revenues 5,743,132 5,892,723 13,089,962 6,097,363 - 6,097,363

Expenditures

Economic Development Program 242,402 1,501,238 770,950 597,018 - 597,018

Economic Development Incentives 24,964 4,225,000 2,685,000 1,700,000 - 1,700,000

Capital Projects Reimbursement 633,179 3,919,290 3,889,032 150,000 - 150,000Sales Tax Incentive Grant 66,218 63,654 63,654 67,778 - 67,778

Debt Service 961,049 956,099 956,099 958,255 - 958,255

Performing Arts Center - - 6,990,575 473,252 - 473,252

Contractual Services 10,812 12,590 12,590 12,590 - 12,590

Transfers to Other Funds 437,609 719,116 654,089 375,383 - 375,383

Total Expenditures 2,376,233 11,396,987 16,021,989 4,334,276 - 4,334,276

Revenues Over/ (Under) Exp's 3,366,899 (5,504,264) (2,932,027) 1,763,087 - 1,763,087

Fund Balance-Beginning 5,728,598 9,095,497 9,095,497 6,163,470 - 6,163,470

Fund Balance-Ending 9,095,497 3,591,233 6,163,470 7,926,557 - 7,926,557

Accrued Sales Tax (795,144) (890,873) (890,873) (879,172) - (879,172)

Debt Service Reserve (963,753) (964,176) (977,204) (1,452,698) - (1,452,698)Fund Balance-Available 7,336,600$ 1,736,184$ 4,295,393$ 5,594,687$ -$ 5,594,687$

Minimum Fund Balance 540,023$ 543,702$ 543,702$ 558,591$ -$ 558,591$

Over/Under Policy 6,796,577$ 1,192,482$ 3,751,691$ 5,036,096$ -$ 5,036,096$

Bond Coverage Ratio (>1.25x) 5.64 3.77 1.43 - 1.43

166



FISCAL YEAR 2014

CIP

Project # Project Name Project Description Amount

TR1407 US 59 Northbound U-Turn Extension at

SH6

Extend the US 59 northbound u-turn lane approximately 400 feet. 150,000$

Total SLDC Funding 150,000$

167

COMPONENT UNIT



Principal Interest Total

FY14 575,000$ 382,655$ 957,655$ Outstanding Debt Issues

FY15 595,000 359,106 954,106

FY16 625,000 334,089 959,089 Series Principal Matures

FY17 650,000 307,308 957,308 2005 8,935,000 FY25

FY18 685,000 278,596 963,596 Total 8,935,000$

FY19 715,000 247,968 962,968

FY20 750,000 215,363 965,363

FY21 785,000 180,825 965,825

FY22 825,000 144,394 969,394

FY23 865,000 105,946 970,946

FY24 910,000 65,338 975,338

FY25 955,000 22,204 977,204

8,935,000$ 2,643,790$ 11,578,790$

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

Debt Service to Maturity

Principal Interest

168

CITY OF SUGAR LAND

SUGAR LAND 4B CORPORATION

INCOME STATEMENT

FY13 FY14



Revenues

Sales Tax 5,400,228$ 5,437,020$ 5,437,020$ 5,585,909$ -$ 5,585,909$

Interest Income 33,283 58,900 12,697 11,102 - 11,102

TIRZ Assignment 144,008 152,325 152,325 154,031 - 154,031

Miscellaneous 36,926 580,000 502,103 80,000 - 80,000

Total Revenues 5,614,444 6,228,245 6,104,145 5,831,042 - 5,831,042

Expenditures

Economic Development Program 180,703 657,870 659,110 511,621 - 511,621

Transfer to Capital Projects 19,215,640 3,059,013 3,059,013 1,012,000 - 1,012,000

Other - - 50,000 - 50,000

Sales Tax Incentive Grant 66,218 63,654 65,804 67,778 - 67,778

Debt Service 3,381,256 3,355,106 3,355,106 3,348,206 - 3,348,206


Promissory Note- Imperial Land - 1,101,632 - 1,101,632

Total Expenditures 23,321,646 7,631,084 7,571,933 6,652,087 - 6,652,087

Revenues Over/ (Under) Exp's (17,707,201) (1,402,839) (1,467,788) (821,045) - (821,045)-

Fund Balance-Beginning 24,946,901 7,239,700 7,239,700 5,771,911 - 5,771,911

Fund Balance-Ending 7,239,700 5,836,861 5,771,911 4,950,867 - 4,950,867

Accrued Sales Tax (879,172) (890,873) (890,873) (879,172) - (879,172)

Debt Service Reserve (1,888,690) (2,631,822) (2,631,822) (3,386,450) - (3,386,450)Fund Balance-Available 4,471,838$ 2,314,166$ 2,249,216$ 685,245$ -$ 685,245$

Minimum Fund Balance 540,023$ 543,702$ 543,702$ 558,591$ -$ 558,591$

Over/Under Policy 3,931,815$ 1,770,464$ 1,705,514$ 126,654$ -$ 126,654$

Bond Coverage Ratio (>1.25x) 1.60 1.60 1.62 - 1.62

170



FISCAL YEAR 2014

CIP

Project # Project Name Project Description Amount

PK1402 Settlers Way Park The 5-acre site is located adjacent to Settlers Way Elementary and would

be a neighborhood level park. Improvements to the park include a

walking trail, ornamental fence, signage, restroom building and

additional parking in partnership with Settlers Way Elementary School.

642,000$

PK1403 Universally Accessible Playground at First

Colony Park

The existing playground is at the end of its useful life and requires

replacement. The project includes demolition of the existing playground

and surfacing as well as the installation of an all-inclusive playground and

rubber surfacing. The project is being supported by the Rotary Club and

Fort Bend Junior Service League.

200,000

PK1405 Joint Participation in CIP Provide funds for joint participation in CIP projects between the City and

Citizen based organizations that benefit the general public. Take

advantage of partnership opportunities to enhance and preserve the

quality of life for City residents.

100,000

PK1408 Gannoway Lake Park Develop a Preliminary Engineering Report (PER) for the site regarding

parks facilities adjacent to the existing surface water treatment plant.

The PER will identify environmental challenges and include analysis and

costs for trails, a water/nature education facility, playground, water

playground, picnic pavilion, lake improvements including dredging, board

walks and a pier.

70,000

Total SL4B Funding 1,012,000$

171

COMPONENT UNIT



Principal Interest Total

FY14 1,705,000$ 1,639,706$ 3,344,706$

FY15 1,780,000 1,583,844 3,363,844 Outstanding Debt Issues

FY16 1,840,000 1,522,638 3,362,638

FY17 1,885,000 1,457,419 3,342,419 Series Principal Matures

FY18 1,960,000 1,388,781 3,348,781 2005 2,715,000$ FY25

FY19 2,025,000 1,316,344 3,341,344 2010 7,580,000 FY22

FY20 2,115,000 1,239,175 3,354,175 2011 29,015,000 FY36

FY21 2,195,000 1,156,850 3,351,850 39,310,000$

FY22 1,900,000 1,076,631 2,976,631

FY23 1,330,000 1,011,694 2,341,694

FY24 1,390,000 953,169 2,343,169

FY25 1,460,000 888,863 2,348,863

FY26 1,225,000 828,269 2,053,269

FY27 1,290,000 771,681 2,061,681

FY28 1,355,000 712,169 2,067,169

FY29 1,425,000 648,728 2,073,728

FY30 1,500,000 580,150 2,080,150

FY31 1,580,000 506,013 2,086,013

FY32 1,670,000 425,750 2,095,750

FY33 1,765,000 339,875 2,104,875

FY34 1,865,000 249,125 2,114,125

FY35 1,970,000 153,250 2,123,250

FY36 2,080,000 52,000 2,132,000

39,310,000$ 20,502,122$ 59,812,122$

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

FY14 FY16 FY18 FY20 FY22 FY24 FY26 FY28 FY30 FY32 FY34 FY36

Debt Service To Maturity

Principal Interest

172

TIRZ #1

FISCAL YEAR 2014 BUDGET

INCOME STATEMENT

FY14

FY12 FY13 FY13 Base FY14 FY14


OPERATING REVENUES

Property Taxes 828,757 860,990 892,270 944,867 - 944,867

Interest Income 1,315 1,000 800 1,000 - 1,000

Underground Conduit 7,539 5,000 5,000 5,000 - 5,000

TOTAL OPERATING REVENUES 837,612 866,990 898,070 950,867 - 950,867


Insurance 1,200 - 1,200 - 1,200

Banking Fees 859 1,020 500 1,020 - 1,020

Town Square POA Events 250,000 250,000 250,000 250,000 - 250,000


Support Services 11,702 7,185 7,185 3,329 - 3,329

Other Contractual 26,125

OPERATING EXPENDITURES 289,686 265,405 263,685 261,549 - 261,549

Plaza Events- Trsf to General Fund 70,000 70,000 70,000 70,000 70,000

Assignment to SL4B 144,008 152,325 152,325 154,031 - 154,031

Assignment to SLDC 325,000 425,000 425,000 500,000 - 500,000

NON-OPERATING EXPENDITURES 539,008 647,325 647,325 724,031 - 724,031

TOTAL EXPENDITURES 828,694 912,730 911,010 985,580 - 985,580

NET INCOME (LOSS) 8,918 (45,740) (12,940) (34,713) - (34,713)

FUND BALANCE - BEGINNING 79,820 88,738 88,738 75,798 75,798

FUND BALANCE - ENDING 88,738 42,998 75,798 41,085 - 41,085

174

Five-Year Forecast

The City’s Financial Management Policy Statements (FMPS) specify that a long range forecast is to be prepared annually for the

City’s major operating funds. This forecast is based on the guidelines provided by the policy statements; reasonable

assumptions can be made regarding future actions based on these policies, which provides a more meaningful forecast to

elected officials as they provide direction to City management. The forecast provides management a fiscally constrained plan

that funds the operations of the City and the Five-Year CIP requirements. It provides an opportunity to look into the future and

advise elected officials regarding anticipated events and strategies to handle the financial implications of decisions.

The forecast outcome is highly dependent on several key assumptions that are based on information available at the time of

preparation. A change in one or more of these assumptions can significantly alter the outcome of the forecast, which could

have a tremendous impact on the City’s operations and maintenance tax rate and capacity for future needs. Based on these

assumptions, the forecast shows that the City will be able to accomplish the following:

Maintain approximately 3% growth from tax revenues over the forecast period

Fund existing services at current service levels in all funds

Support the surface water treatment plant and debt repayment

Maintain sales tax to fund operations below 50%

Meet current and future debt service needs

Fund the recommended Five-Year CIP and resulting operating expenditures

Continued Economic Development and Tourism efforts such as a Performing Arts Center

The financial forecast is updated annually as part of the budget process to ensure that the City can continue to meet

challenges, fulfill obligations, and assess long-range implications of approved operating, capital budgets and policies. The five-

year financial forecast of the major funds indicates the City is in sound financial health, can maintain current service levels, and

meet current and anticipated debt obligations.

Forecast AssumptionsThe forecast does not include any anticipated impact from the November 2013 GO Bond Election. The calculations in this

forecast and the analysis of results obtained are based on the following data.

Revenues

Valuation & Tax Rate

General Fund and Debt Service revenues are dependent on the net assessed property valuation assumptions, which are

derived from anticipated residential and commercial development, revaluation of existing property, and the scheduled roll-off

of tax abatements.

The forecast assumes tax revenues grow at a rate of 3% per year based on a combination of growth in value and adjustments

to the tax rate to provide the 3% increase in revenues from existing properties plus growth in new value. The exact tax rate is

dependent on the growth in valuation. The forecast assumes a consistent allocation between the debt service component and

the maintenance and operations component based on the 2013 certified tax roll.

Sales Tax

Base sales tax growth includes collections from limited purpose annexations and is assumed to grow approximately 2.7% in

FY14, 4% in FY15 and then 3.5% annually from FY16 to FY18. Sales tax from incentive agreements is assumed to grow 4.7% in

FY14 and 1% for FY15 to FY18.

Interest Earnings

Interest earnings for each fund are estimated based on available fund balances and a

prorated allocation of interest earned based on the following yields:

Interest Earnings YieldFY14 0.5%FY15 0.8%FY16 0.9%FY17 1.0%FY18 1.2%175

Hotel Occupancy Transfer for Debt Service

Hotel occupancy tax is pledged toward repayment of existing debt issued for

the Conference Center at Town Square. Beginning in FY15 hotel occupancy tax

will be utilized toward repayment of new debt issued for the performing arts

center. The forecast assumes a transfer to the Debt Service Fund in an amount

equal to each year’s debt service requirement.

Utility Transfer for Annexed & Dissolved MUD Debt

Based on the Financial Management Policy Statements the Utility fund makes a transfer to

the Debt Service Fund in an amount equal to 100% of the annual debt service requirement

for water/wastewater debt assumed from annexed and dissolved municipal utility districts.

Drainage debt from MUDs is supported by property taxes. The amounts are at right.

Issuance of New Debt

The forecast builds in

debt service based on

the anticipated issuance

of the following amount

of debt, showing

proceeds to construction

only:

Water Consumption

Revenues in the Utility Fund are based on the following consumption

estimates:

Revenues in the Surface Water Fund are calculated based on the following

pumpage estimates:

Airport Fuel Sales

Fuel sales are built into the forecast based on June 2013 fuel prices. Total

sales include Jet-A and AvGas. Increases to the mark-up are included at a

rate of 10 cents per gallon increase in FY15, is based on the August 2013

markup. Discount program is based on August 2013 revisions by City

Council.

Expenditures

Operating Expenditures

Throughout the forecast, personnel costs increase by an average of 3% beginning in FY14. Operations and maintenance costs

grow by 2% per year for the Utility Fund and Surface Water Fund, and 1% per year for the General Fund and Airport Fund.

Hotel Occupancy Tax Transfer

Existing Debt New Debt

FY14 664,214$ -$

FY15 673,611 598,000

FY16 682,990 628,500

FY17 694,859 677,000

FY18 702,976 722,500

Util ity Transfer for MUD Debt

FY14 3,376,368$

FY15 2,455,699

FY16 1,915,924

FY17 1,779,062

FY18 1,666,108

Consumption (1,000 gallons)

Water Wastewater

FY14 5,420,318 3,091,734

FY15 5,558,817 3,151,748

FY16 5,715,101 3,226,366

FY17 5,868,678 3,300,985

FY18 5,883,295 3,375,603

Pumpage (1,000 gallons)

City Non-City

FY14 5,858,247 2,389,860

FY15 6,006,857 2,399,856

FY16 6,175,093 2,399,856

FY17 6,340,623 2,399,856

FY18 6,355,925 2,399,856

Aviation Fuel Sales (gallons)

Gallons Percent Growth

FY14 3,134,281 2.3%

FY15 3,290,995 5.0%

FY16 3,455,544 5.0%

FY17 3,628,322 5.0%

FY18 3,809,738 5.0%

$1,000s

Tax Backed Debt Airport COs

Uti lity

Revenue

Bonds

Sales Tax

Revenue

Bonds

COs Support

by Tourism

Fund

Taxable COs

Supported by

PAC Rent

Payment

FY14 15,003$ -$ 15,958$ -$ -$

FY15 7,634 1,250 10,336 36,200 8,000 25,000

FY16 15,631 500 10,613 - - -

FY17 6,813 - 5,620 - - -

FY18 9,784 - 45,329 - - -Total 54,865$ 1,750$ 87,856$ 36,200$ 8,000$ 25,000$

176

Capital Projects Operating Impact

Operating Impact of CIP projects are built in as follows (not cumulative):

Property Tax Rebates

The City reimburses tax rebates to in-city MUDs at 50% of the tax collected.

Values in each area are grown based on estimated revaluation plus new

value based on development assumptions from the City’s Planning

Department. The estimated tax rebates are shown in the table below:

Sales Tax Incentives Agreement

Sales tax grants are built in to the forecast based on estimated sales tax collections and the percentage subject to the grant

calculation:

Forecast Analysis

General Fund

The General Fund encompasses the majority of the City’s services. Resources to the fund are generated through property and

sales taxes, franchise fees, fines, charges for services and miscellaneous income. Expenditures from the fund support municipal

services such as Public Safety, Parks, Fiscal Services, Community Development and Public Works operations. The General Fund

continues to fund all current services throughout the forecast. The forecast includes additions to operating expenditures as

identified in the Five Year CIP for FY14-18. Recurring operating expenditures increase by 7.4% from FY14 to FY18 due to

additions to the budget for the operating impact of capital projects and growth in personnel costs and operations and

maintenance.

Sales tax receipts are the largest source of revenue for the City and have historically accounted for about 50% of General Fund

revenues. Based on the current growth in sales tax collections, there is an average annual growth of 3.1% in sales tax for FY14

to FY18. Sales tax revenues make up 46.6% of revenues in the General Fund throughout the forecast and property taxes

represent 24.8%. The growth in property tax revenue is due to an assumed flat tax rate with an average commercial growth of

4% and residential revaluation of 3% plus new value.

The FMPS set a target of 10% of base sales tax to be set aside for CIP funding when it is economically feasible. This strategy

provides the City a cushion if sales tax collections fall short of estimates, as the first 90% of base sales tax is used to fund

operations. This provides an average of $3.38 million for pay-as-you-go capital projects per year.

Overall, the General Fund is in a relatively stable financial position throughout the forecast. In FY15 and FY16, the fund falls

below the policy requirement due to the use of one-time funds for the implementation of the EMS program. However, by the

end of FY18 the fund is above policy requirement by $1,935,221.

Debt Service Fund

The Debt Service Fund accounts for the accumulation of monies that are set aside to pay principal and interest on debt

incurred through sale of bonds and other debt instruments. These securities finance long-term capital improvement projects

such as streets, parks and buildings.

Property taxes make up an average of 74.3% of the revenues for the Debt Service Fund. The fund includes developer fee

reimbursements from the Riverstone development agreement based on development assumptions from the Planning

Companies Medline Lifestyle Center Etail Direct Atos Origin LakePointe

% as per Agreement 37.5% 37.5% 37.5% 25.0% 30.0%

Fund General Airport

FY14 -$ -$

FY15 123,545 -

FY16 149,270 -

FY17 149,270 -

FY18 165,770$ 12,000$

Property Tax Rebates

Fund Debt Service General

FY14 1,605,450$ 2,131,800$

FY15 1,548,512 1,967,566

FY16 1,600,062 2,033,026

FY17 1,653,646 2,101,042

FY18 1,685,980 2,142,078

177

Department. The developer pays $1,750 per lot at the time of platting. These fees continue to be used to fund debt service

requirements for the issuance of 2010 Certificates of Obligation issued for the extension of University Boulevard. In FY15, the

City expects to issue $25 million in Taxable Certificates of Obligation for the performing arts center (PAC). The debt service

payments on the taxable COs will be supported by rent payments from ACE, LLC, the operator of the PAC, beginning in FY17.

During construction, interest payments will be covered by a transfer from the Sugar Land Development Corporation.

An additional $8 million Certificate of Obligation is planned for FY15 for the PAC. Debt service on this issue will be covered by a

transfer from the Tourism Fund beginning in FY15. None of the PAC debt issues will be supported by property taxes.

A transfer from the Tourism Fund supports the existing debt issued for the Sugar Land Conference Center in Town Square.

Transfers from the Utility Fund support water and wastewater debt assumed through annexation and dissolution of MUDs at

100% recovery for the duration of the forecast.

The Debt Service Fund maintains its policy requirement throughout the forecast. The fund balance continues to grow through

the forecast while the fund is able to support nearly $54.86 million in new debt for projects in the five-year CIP.

For FY14 to FY18, the Debt Service Fund has potential additional debt capacity of approximately $19 million. While no specific

projects have been identified at this time, there are drainage projects, facilities master plan updates, and street reconstruction

projects that have not been defined that can utilize the capacity. Any portion remaining after these projects are funded could

be used to possibly buy down the tax impact of GO bonds, if the propositions are approved by voters.

Water Utility Fund

The Water/Wastewater Utility Fund is an enterprise fund providing for the administration, billing and collection activities, and

operation and maintenance of the City’s water and wastewater system. Services are financed primarily through utility

customer user fees. Strategies used in the generation of the Utility financial plan are aimed to ensure the fund is self-

supporting and that capital improvement funding is adequate to maintain or expand the City’s infrastructure. Based on the

forecast, the fund meets all reserve and bond coverage requirements.

The forecast shows that the monthly service charges for water will recover an average of 39.6% of revenue requirements. The

forecast also shows that the monthly service charges for wastewater will recover an average of 45.4% of revenue

requirements. The base recovery percentages are based on current rates and anticipated future rate adjustments.

The utility system users generate the revenues that support the system.

These revenues fund the basic operations of the fund, current debt

service, and operating transfers. The revenues also support pay-as-you-go

capital improvements over the forecast period. Revenues are dependent

on the number of users in the system as well as weather experienced

during the year. The forecast assumes average rainfall for each year;

however, variation from the average can have a significant impact on

water demand and subsequent revenues.

Operating expenses shows an increase of $764,388 or 6% during the

forecast, which are due to growth in personnel and operating cost from growth and development.

Revenue bonds in the amount of $87.86 million will be issued over the forecast period for capital improvement projects. Due to

these anticipated debt issues, the debt service requirement for the fund increases from $8.97 million in FY14 to $13.78 million

in FY18. The required debt service reserve averages $6.7 million from FY14 to FY18. The fund contributes $7.5 million toward

pay-as-you-go CIP during the forecast.

The forecast shows rates will need to be adjusted in FY17 after the implementation of the surface water fees is complete;

water and wastewater rates have not been adjusted in FY14 to minimize the impact to rate payers of the mandated surface

water conversion.

$15.44 $13.86 $12.71 $12.45 $11.93

$4.59 $6.17 $7.04

$-

$5

$10

$15

$20

FY14 FY15 FY16 FY17 FY18

Mill

ion

s

Debt Service Obligation

Current New Debt

178

Surface Water Fund

The Surface Water Fund is an Enterprise Fund and is supported by user fees. The purpose of the fund is to provide a financial

mechanism for implementing the City’s groundwater reduction plan for conversion from groundwater to surface water

sources.

The forecast shows the City’s ability to provide funding to meet the 30% conversion to surface water required by 2013 and 60%

by 2025. All participants pay a GRP fee per thousand gallons of groundwater pumped. GRP participants in the City’s ETJ include

New Territory, Greatwood, and Tara Plantation. GRP fees are also being charged to Royal Lake Estates, private well owners,

homeowners associations, and Texas Department of Corrections within the City limits. Participants outside of the City limits

pay a 20% out-of-City service charge on GRP fees. City customers see a surface water charge on their utility bill; these funds are

transferred to the surface water fund based on pumpage.

Revenues over the five-year forecast are comprised of $20.9 million for GRP fees, $53.42 million from City customers and

$145,616 for out-of-City service charges. A total of $161,000 is estimated for interest income.

Total expenses for the fund are approximately $76.37 million for the forecast. In FY14 there is a substantial increase in the

operating expenses due to the opening of the surface water treatment plant. Operating expenses include chemicals, electricity,

other contractual, water right options and permit fees. The forecast includes 7 additional positions that will transition from

contractual to City employees to operate the plant once the CMAR contract ends. Debt service payments totaling $31.23

million support the existing debt issued for transmission lines, the surface water plant, and new debt for $10.5 million for

Riverstone ground water plant improvements and Riverstone ground water plant connections planned for FY17 and FY18. The

fund has 50% general purpose reserve that is met throughout the forecast.

Airport Fund

The Sugar Land Regional Airport is a user-fee supported business enterprise fund. The City has been able to attract and

maintain quality corporate customers due to the location and amenities offered by the airport. The airport is continuing

improvements to enhance its image among the business users of airport services and to attract new customers. The Airport is

able to fund capital improvements, provide services, and make debt service payments on outstanding debt issues, and meet its

reserve and bond coverage requirements.

Total revenues for the airport are expected to increase over the next five years based on increasing fuel sales and the

expansion of services for Café Select program. An additional 70,000 gallons of fuel are projected to be sold in FY14. The graphs

below depict the projected fuel revenues over the next five years, as well as gallons sold.

There is an increase to the mark-up for airport fuel which is built into the five-year forecast. The increase is ten cents in FY15

over the adjustment made in August 2013.

Airport operating expenses are projected to increase in the forecast at an average of 4% annually. The majority of the increase

is due to additional volume of fuel purchases and credit card fees based on the projected fuel sales.

$13.9$16.5

$17.8$19.8

$21.5$23.4 $25.4

$-

$10.0

$20.0

$30.0


Mill

ion

s

Airport Fuel Revenues

Actual Forecasted

2.85

-

3.06 3.13 3.29 3.46 3.63 3.81

-

1.00

2.00

3.00

4.00


Mill

ion

s

Airport Fuel Sales in Gallons

Actual Forecasted

179

Tourism Fund

The purpose of the fund is to promote tourism in the City and state statute restricts use of the funds. The City’s Hotel

Occupancy Tax is the source of revenues in the fund, which is based on 7% of room revenue.

The City is planning to build a performing arts center in FY15. This project will be supported by the SLDC and the Tourism Fund.

In FY15, the Tourism Fund begins supporting an $8 million CO issuance for a performing arts center. The City plans to support

100% of the debt service payment through annual payments to the Debt Service Fund. In FY14 and FY15, $2.5 million in cash

will be used from the Tourism Fund to help with the cost of the performing arts center.

Hotel occupancy tax revenues are projected to increase 8.2% from FY14 to FY18

based on anticipated growth from existing hotels. The City has pledged hotel tax

revenues from the Marriott as a transfer to the Debt Service Fund to pay for the

City’s debt service requirements for the Conference Center. This arrangement

confirms the City’s commitment to the principle that hotel taxes should pay for

the debt and not property taxes. The graph at right illustrates historical and

projected hotel occupancy tax revenues.

Expenditures in the fund are used to finance marketing and destination

development for the City, according to limits imposed by state statutes. An

estimated $2.5 million will be spent on marketing and $1.7 million on destination development if expenditures continue based

on current levels. The fund will transfer $3,418,650 to the Debt Service Fund to support existing debt service payments for the

conference center and $2,626,000 for the new debt issued for the performing arts center. By FY18 the projected ending fund

balance is $546,662. There is no minimum fund balance policy for this fund.

Five-Year Capital Improvement Program

The City’s Five-Year CIP totals $267.51 million for FY14-FY18 and consists of 117 projects, including 45 carryover projects.

Funding sources were identified as capacity was determined in the various financial plans and the timing of projects was

adjusted to meet affordability. All projects included in the approved CIP have identified funding sources.

In November 2013 the City is planning to hold a general obligation bond election for capital improvement projects for an

amount not to exceed $50 million. The projects being recommended for the bond election, if approved, are not included in the

planned five-year capital improvement program, which is listed in the table below.

Funding for CIP projects are derived from various sources including utility

revenue bonds, certificates of obligation, utility revenues, general sales

tax, economic development sales taxes, airport revenues, TxDOT highway

funds, county mobility bonds and fund balance. Major projects in the

Five-Year CIP include wastewater, streets, municipal, and drainage. A

summary by project type and the funding totals appears in the table at

right.

Some of the CIP projects have an operations and maintenance impact that

has to be considered along with the project cost. The anticipated O&M

cost includes projects that are anticipated in future fiscal years that may

be delayed or canceled based on available funding. However, these costs

are built into the respective operating funds five-year forecast to give policy makers an idea of the financial impact completed

CIP projects will have on the operating funds of the City.

Sugar Land Development Corporation (SLDC)

The SLDC is financed through a quarter cent sales tax approved by the voters in 1993, and its primary goal is to promote

economic development of the City. Sales tax and interest income are the primary revenue sources for the Corporation, along

with an assignment from TIRZ #1 toward repayment of debt issued for Town Square infrastructure.

$1.94 $2.02 $2.06 $2.10 $2.14 $2.18 $2.23

$-

$1.0

$2.0

$3.0


Mill

ion

s

Hotel Occupancy Tax Revenues

Actual

Project Type Funding % of Funds

Airport 2,812,150$ 1.1%

Drainage 19,015,000 7.1%

Municipal 95,160,000 35.6%

Parks 5,290,000 2.0%

Streets 39,780,700 14.9%

Traffic 3,561,000 1.3%

Wastewater 68,118,000 25.5%

Water 21,465,000 8.0%

Surface Water 12,310,000 4.6%

Total Projects 267,511,850$ 100.0%

180

As noted in the Tourism Fund, the City has plan for the construction of the performing arts center in FY15. This project will

largely be supported by SLDC as approved by voters in 2008. The Corporation is planning to issue $36.2 million in bonds

towards cost of construction for a performing arts center. In FY13, $7.2 million in bond proceeds is planned to be issued for the

design of the performing arts center. In FY15 and FY16, an anticipated $2.56 million will be transferred to the Debt Service

Fund to pay interest on the taxable COs during the construction of the performing arts center. Rent payments from ACE will

cover the payments once construction is completed.

Expenditures over the forecast total $4.3 million in FY14 and then increases to $43.8 million in FY15 due to the construction of

the performing arts center and then decreases to $6.7 million in FY18. Expenditures also include staffing reimbursement to the

City, capital project management fees, support services contract and the economic development program for marketing and

business recruitment. The Corporation has annual debt service of approximately $1 million each year for one outstanding debt

issue that matures in 2025. For the FY13 and FY15 new debt issuance of $43.6 million, the total debt service for the 5-year year

forecast is $11.9 million. The forecast allocates $8.8 million over the five years toward Economic Development direct

incentives.

The fund is able to maintain a fund balance in excess of the 10% of budgeted sales tax policy requirement for the duration of

the forecast with a budgeted fund balance amount of $1.9 million in FY18.

Sugar Land 4B Corporation (SL4B)

The SL4B is financed by a quarter cent sales tax authorized by voters in 1995. Uses of 4B funds are restricted by law, but are

less restricted than the use of SLDC funds. Sales tax is the primary revenue source for the Corporation, along with an

assignment of revenues from TIRZ #1 toward repayment of debt issued for the Texas Garage in Sugar Land Town Square. The

TIRZ supports 53% of debt service on the garage spaces, which is the prorated balance after the 2009 payment from Planned

Community Developers is applied to outstanding principal.

In the forecast the SL4B contributes $2 million for capital improvements, including joint participation in CIP, universally

accessible playground at First Colony Park, and improvement to Settlers Way Park. The Corporation has three outstanding debt

issues that mature in 2036. The annual debt service payment is $3.4 million in FY14 and remains at that level for the rest of the

forecast. FY14 budget includes the repayment of $1.1 million for the loan proceeds which was received in FY11 used for the

land acquisition for the baseball stadium off-site parking.

SL4B meets its reserve and bond coverage requirements and is able to maintain a fund balance in excess of the 10% of

budgeted sales tax receipts policy requirement during the forecast and builds the fund balance up to $7.4 million in FY18.

181

CITY OF SUGAR LANDGENERAL FUNDFIVE‐YEAR FINANCIAL FORECAST

FY14 FY15 FY16 FY17 FY18Budget Forecast Forecast Forecast Forecast

RevenuesProperty Taxes 17,650,900$ 18,535,100$ 19,365,800$ 20,009,500$ 20,639,000$ Sales Tax 33,515,500 34,856,100 36,076,050 37,338,750 38,645,625 Other Taxes 5,695,655 5,847,900 6,024,300 6,209,600 6,401,600 Licenses & Permits 2,637,853 2,704,000 2,771,500 2,840,700 2,911,400 Charges for Services 3,542,548 4,563,242 5,347,509 5,459,540 5,590,334 Fines & Forfeitures 2,158,781 2,221,900 2,288,500 2,357,200 2,427,900 Other 641,937 639,672 639,672 639,672 639,672 Intergovernmental 88,000 ‐ ‐ ‐ ‐ Interest Income 102,500 196,500 175,000 194,000 236,500 Operating Revenues 66,033,675 69,564,414 72,688,331 75,048,962 77,492,031 Transfers In 4,623,056 4,830,619 4,972,202 5,117,939 5,268,039 Lease Proceeds 1,656,000 ‐ ‐ ‐ ‐ Non‐operating Revenues 6,279,056 4,830,619 4,972,202 5,117,939 5,268,039 Total Revenues 72,312,731 74,395,033 77,660,533 80,166,901 82,760,070

ExpendituresGeneral Government 11,310,275 11,041,271 11,315,454 11,597,292 11,887,009 Support Services 3,079,786 3,218,817 3,280,086 3,342,840 3,407,120 Fiscal Services 1,942,436 1,970,344 2,024,793 2,080,829 2,138,500 Public Works 7,077,526 7,218,959 7,350,036 7,484,190 7,636,505 Parks & Recreation 5,754,160 5,864,982 5,998,112 6,108,311 6,222,619 Community Development 5,126,033 5,184,677 5,330,475 5,480,548 5,635,026 Police Department 18,231,564 18,400,801 18,924,129 19,462,869 20,017,481 Fire Department 12,976,923 12,316,172 12,613,529 13,016,059 13,371,578 Departmental Expenditures 65,498,703 65,216,025 66,836,614 68,572,938 70,315,838 Transfers 5,795,237 5,932,652 6,084,265 6,240,845 6,402,268 Rebates & Assignments 3,436,728 3,315,616 3,396,476 3,480,992 3,538,028 Debt Service 492,877 820,050 941,224 941,224 941,224 Miscellaneous (371,622) (455,293) (471,755) (488,983) (506,328) Non‐departmental Expenditures 9,353,220 9,613,025 9,950,210 10,174,078 10,375,192 Total Expenditures 74,851,924 74,829,050 76,786,824 78,747,016 80,691,029

Revenues Over/(Under) Expenditures (2,539,193) (434,017) 873,709 1,419,885 2,069,041 Fund Balance ‐ Beginning 18,003,854 15,464,661 15,030,644 15,904,353 17,324,238 Fund Balance ‐ Ending 15,464,661$ 15,030,644$ 15,904,353$ 17,324,238$ 19,393,279$

Ending Fund Balance‐ % of Oper Exp 25% 23% 24% 25% 28%Fund Balance ‐ Requirement 15,371,364$ 16,135,002$ 16,564,411$ 16,994,092$ 17,426,412$ Over / (Under) Policy 93,297$ (1,104,358)$ (660,058)$ 330,146$ 1,966,867$

182

CITY OF SUGAR LAND

DEBT SERVICE FUND

FIVE-YEAR FINANCIAL FORECAST


Budget Forecast Forecast Forecast Forecast

REVENUES

Current Property Taxes 13,736,800$ 14,430,300$ 15,081,800$ 15,586,600$ 16,080,200$

Delinquent Property Taxes 52,100 54,900 57,700 60,300 62,300

Developer Fee Reimbursement 472,500 472,500 472,500 472,500 472,500

Interest on Investments 12,148 15,711 26,006 42,592 58,805

Refunding Bond Proceeds - - - - -

Other Revenues (PAC) - - - 1,652,306 1,650,977

TOTAL REVENUES 14,273,548 14,973,411 15,638,006 17,814,298 18,324,782

Transfer In from Tourism Fund 664,214 1,271,611 1,311,490 1,371,859 1,425,476

Transfer from SLDC: PAC - 1,401,731 1,162,726 - -

Transfer In from Utility Fund 3,376,368 2,455,699 1,915,924 1,779,062 1,666,108

TOTAL INTERFUND TRANSFERS 4,040,581 5,129,040 4,390,139 3,150,921 3,091,584

TOTAL REVENUES 18,314,130 20,102,451 20,028,146 20,965,219 21,416,367

EXPENDITURES

Debt Service: Current Debt 15,437,757 13,862,809 12,707,418 12,449,898 11,931,991

Debt Service: PAC Issues - 1,999,731 1,791,226 2,329,306 2,373,477

Debt Service- New Issues 1,669,885 1,941,135 2,796,435 3,843,050 4,665,360

Fiscal Fees/Other 18,000 18,200 18,400 18,600 18,800

Issuance Costs - - - - -

Refunding Payment to Escrow - - - - -

TOTAL DEBT SERVICE 17,125,642 17,821,875 17,313,479 18,640,854 18,989,628

Rebates & Assignments 1,605,450 1,548,512 1,600,062 1,653,646 1,685,980



CHANGE IN FUND BALANCE (471,362) 676,604 1,058,035 613,019 681,898

FUND BALANCE - BEGINNING 3,171,192 2,699,830 3,376,434 4,434,469 5,047,489FUND BALANCE - ENDING 2,699,830$ 3,376,434$ 4,434,469$ 5,047,489$ 5,729,387$

Policy Requirement 1,710,764$ 1,780,368$ 1,729,508$ 1,862,225$ 1,897,083$

Over/(Under) Policy 989,066$ 1,596,067$ 2,704,961$ 3,185,263$ 3,832,304$

Policy Requirement 10% 10% 10% 10% 10%

183

CITY OF SUGAR LAND

ENTERPRISE FUND - WATER UTILITY SYSTEM

FIVE YEAR FINANCIAL FORECAST


Budget Forecast Forecast Forecast ForecastREVENUES

Charges for Services 25,743,769$ 26,263,601$ 26,877,167$ 28,093,923$ 28,761,916$Surface Water Fees 9,722,218 10,347,524 10,641,533 10,930,450 10,957,948Tap Fees 222,462 428,913 428,913 428,913 428,913Interest Income 30,000 32,000 34,000 36,000 38,000Miscellaneous 453,002 453,686 454,391 455,117 455,864

TOTAL OPERATING REVENUES 36,171,451 37,525,724 38,436,004 39,944,402 40,642,641Bond Proceeds 15,957,900 10,335,660 10,613,100 5,620,200 45,328,800Transfers In - Connection Fees 632,589 632,589 632,589 752,098 2,913,213Transfers In - Surface Water (Debt) 1,030,542 1,032,063 1,039,792 1,032,707 1,032,397

TOTAL OPERATING REVENUES 17,621,031 12,000,312 12,285,481 7,405,005 49,274,410TOTAL REVENUES 53,792,483 49,526,036 50,721,485 47,349,407 89,917,051

OPERATING EXPENDITURESUtility Administration 668,689 699,857 721,152 739,483 758,331Water Distribution 1,668,927 1,637,283 1,667,381 1,698,191 1,729,734Water Production 2,776,978 2,847,588 2,884,677 2,922,394 2,960,754Wastewater Collection 669,251 663,226 677,097 691,324 705,916Wastewater Treatment 4,284,013 4,364,459 4,415,526 4,467,326 4,519,874Customer Service 570,045 581,456 594,490 607,871 621,609Water Quality 422,506 374,936 384,820 394,984 405,437Water Conservation 282,260 286,527 290,880 295,321 299,852Treasury 1,393,288 1,418,758 1,444,828 1,471,515 1,498,837

TOTAL OPERATING EXPENDITURES 12,735,957 12,874,089 13,080,849 13,288,409 13,500,345NON-OPERATING EXPENDITURES

Debt Service 8,966,769 9,416,430 9,871,100 10,264,798 13,782,368Transfers Out 6,310,166 5,371,679 4,875,644 4,783,177 4,715,285Transfers Out - Surface Water 9,888,565 10,511,999 10,806,414 11,096,090 11,122,869Miscellaneous 285,462 282,816 285,855 288,957 292,125CIP Transfers:

Bond Projects 15,645,000 10,133,000 10,405,000 5,510,000 44,440,000PAYG Water 750,000 750,000 750,000 750,000 750,000PAYG Wastewater 750,000 750,000 750,000 750,000 750,000TOTAL NON-OPERATING EXPENDITURES 42,595,962 37,215,924 37,744,012 33,443,023 75,852,647


Net Income/(Loss) (1,539,436) (563,978) (103,376) 617,976 564,059Reserve - Debt Service (5,501,968) (5,900,863) (6,293,163) (6,277,879) (9,300,895)

Cash Equivalent - Beginning 14,230,729 12,691,294 12,127,316 12,023,941 12,641,916

Cash Equivalent - Ending 7,189,326$ 6,226,453$ 5,730,778$ 6,364,037$ 3,905,081$

CASH OPERATING RESERVE 57% 48% 44% 48% 29%

BOND COVERAGE DIRECT DEBT 1.64 1.62 1.60 1.27 1.36

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CITY OF SUGAR LAND

ENTERPRISE FUND - SURFACE WATER

FIVE-YEAR FINANCIAL FORECASTFY14 FY15 FY16 FY17 FY18

Budget Forecast Forecast Forecast ForecastOPERATING REVENUES

GRP Fees 4,039,353$ 4,209,950$ 4,209,950$ 4,209,950$ 4,209,950$Out of City Service Charge 28,285 29,333 29,333 29,333 29,333Interest Income 25,000 27,000 29,000 35,000 45,000

TOTAL OPERATING REVENUES 4,092,638 4,266,283 4,268,283 4,274,283 4,284,283Transfer In - Utilities 9,888,565 10,511,999 10,806,414 11,096,090 11,122,869

TOTAL REVENUES 13,981,202 14,778,282 15,074,696 15,370,373 15,407,152EXPENSES

Personnel Services 721,401 900,504 927,723 955,441 984,104Operations & Maintenance 5,127,689 4,238,532 4,291,132 4,332,264 4,373,815Raw Water 1,245,405 1,727,848 1,771,044 1,815,320 1,860,703Capital - - - - -

TOTAL OPERATING EXPENSES 7,094,495 6,866,884 6,989,899 7,103,026 7,218,623Debt Service Payment 5,992,688 6,010,038 6,021,388 6,148,473 7,053,197Membranes/Capital Repairs 110,000 112,750 115,569 118,458 121,419Transfers Out 1,497,093 1,505,654 1,520,530 1,520,700 1,527,756Contingency 925,000 200,000 200,000 200,000 200,000

TOTAL NON-OPERATING EXPENSES 8,524,781 7,828,442 7,857,487 7,987,631 8,902,372TOTAL EXPENSES 15,619,276 14,695,326 14,847,386 15,090,657 16,120,995

Net Income/(Loss) (1,638,073) 82,956 227,310 279,716 (713,843)CASH EQUIVALENTS - BEGINNING 10,202,238 8,564,164 8,647,120 8,874,430 9,154,146CASH EQUIVALENTS - ENDING 8,564,164$ 8,647,120$ 8,874,430$ 9,154,146$ 8,440,303$

185

CITY OF SUGAR LAND


FIVE YEAR FORECAST



REVENUES

Fuel Sales 17,773,599$ 19,800,326$ 21,515,305$ 23,390,342$ 25,441,056$

Hangar Leases 1,249,678 1,212,635 1,515,006 1,532,591 1,585,343

Miscellaneous Revenues 451,990 481,990 481,990 481,990 481,990

Interest Income 7,000 10,000 15,000 23,000 41,000

TOTAL OPERATING REVENUES 19,482,268 21,504,951 23,527,301 25,427,922 27,549,389

Operating Transfers In 173,440 175,900 178,420 180,980 183,610

Grant Proceeds 50,000 50,000 50,000 50,000 50,000

Bond Proceeds - 1,250,000 500,000 - -

TOTAL NON-OPERATING REVENUES 223,440 1,475,900 728,420 230,980 233,610

TOTAL REVENUES 19,705,709 22,980,851 24,255,721 25,658,902 27,782,999

OPERATING EXPENSES

Administrative 1,078,116 1,093,974 1,117,426 1,141,487 1,166,175

FBO Services 15,606,145 16,872,617 18,413,509 20,106,470 21,978,870

Café Select 231,011 233,573 238,156 242,853 247,665

Customs 204,898 206,947 209,016 211,107 213,218

Maintenance and Operations 766,337 775,070 792,639 810,679 829,203

TOTAL OPERATING EXPENSES 17,886,507 19,182,181 20,770,746 22,512,595 24,435,131

Other Requirements 1,102,717 1,095,861 1,273,346 1,273,044 1,270,464

Miscellaneous 250,292 234,630 245,069 256,611 268,260

Operating Transfers Out 936,879 2,084,529 1,343,879 855,879 805,379

TOTAL NON-OPERATING EXPENSES 2,289,887 3,415,020 2,862,294 2,385,534 2,344,102

TOTAL OTHER SOURCES/(USES) 20,176,394 22,597,201 23,633,040 24,898,129 26,779,233

NET INCOME (LOSS) (470,686) 383,650 622,681 760,774 1,003,766

CASH EQUIVALENTS BEGINNING 3,358,029 2,887,343 3,270,993 3,893,674 4,654,448

Debt Service Reserve (889,698) (879,222) (868,004) (845,679) (820,746)

CASH EQUIVALENTS ENDING 1,997,645$ 2,391,771$ 3,025,670$ 3,808,768$ 4,837,467$

CASH EQ. RESERVE RATIO (25% min) 44% 52% 64% 78% 96%

BOND COVERAGE (1.25x min) 1.49 1.79 2.13 2.26 2.46

FUEL GALLONS SOLD 3,134,281 3,290,995 3,455,544 3,628,322 3,809,738

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CITY OF SUGAR LAND

SPECIAL REVENUE FUND - TOURISM

FIVE-YEAR FORECAST



OPERATING REVENUES

Hotel/Motel Occupancy Tax 2,056,400$ 2,097,700$ 2,139,700$ 2,182,400$ 2,226,000$

Miscellaneous - - - - -

Interest Income 5,000 5,500 6,000 6,500 7,000

TOTAL OPERATING REVENUES 2,061,400 2,103,200 2,145,700 2,188,900 2,233,000


Marketing 497,847 500,483 503,199 505,996 508,877

Destination Development 249,000 249,000 249,000 249,000 249,000

Tourism Program Funding 101,214 91,785 94,509 97,314 100,203

Performing Arts Center 900,000 1,600,000 - - -

Capital Improvement Projects - - - - -

TOTAL OPERATING EXPENDITURES 1,748,061 2,441,268 846,708 852,310 858,080

Transfers Out - Debt Service (PAC) - 598,000 628,500 677,000 722,500

Transfers Out - Debt Service 664,214 673,611 682,990 694,859 702,976


NET INCOME (LOSS) (350,875) (1,609,679) (12,498) (35,269) (50,556)

Fund Balance 2,605,539 2,254,664 644,985 632,487 597,218

GAAP Adjustments - - - - -

Beginning Budgetary Balance 2,605,539 2,254,664 644,985 632,487 597,218

Ending Budgetary Balance 2,254,664$ 644,985$ 632,487$ 597,218$ 546,662$

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CITY OF SUGAR LANDCAPITAL PROJECTSFIVE-YEAR FORECAST

PROJECT TYPE

2014

BUDGET

2015

ESTIMATE

2016

ESTIMATE

2017

ESTIMATE

2018

ESTIMATE

2014-2018

TOTAL

AIRPORT 294,000 1,441,650 701,000 213,000 162,500 2,812,150

DRAINAGE 7,075,000 1,040,000 10,300,000 300,000 300,000 19,015,000

MUNICIPAL 9,300,000 84,660,000 400,000 400,000 400,000 95,160,000

PARKS 3,300,000 715,000 425,000 425,000 425,000 5,290,000

STREETS 3,313,000 7,551,300 8,489,500 8,742,500 11,684,400 39,780,700

TRAFFIC 1,477,300 1,033,700 600,000 150,000 300,000 3,561,000

WASTEWATER 7,350,000 3,838,000 7,840,000 4,305,000 44,785,000 68,118,000

WATER 5,745,000 7,795,000 4,065,000 2,705,000 1,155,000 21,465,000

SURFACE WATER 1,510,000 10,800,000 12,310,000

TOTAL FUNDING $37,854,300 $108,074,650 $32,820,500 $18,750,500 $70,011,900 $267,511,850

SOURCE OF FUNDS

2014

BUDGET

2015

ESTIMATE

2016

ESTIMATE

2017

ESTIMATE

2018

ESTIMATE

2014-2018

TOTAL

General Revenue 3,042,300 2,785,700 3,483,500 3,175,000 3,325,000 15,811,500

CO's 14,853,000 8,804,300 15,981,000 6,742,500 9,684,400 56,065,200

Revenue Bonds 15,645,000 10,133,000 10,405,000 7,020,000 55,240,000 98,443,000

SLDC 150,000 34,040,000 34,190,000

SL4B 1,012,000 400,000 400,000 100,000 100,000 2,012,000

Airport Revenues 294,000 191,650 201,000 213,000 162,500 1,062,150

System Revenues 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 7,500,000

Other Funding Sources 1,358,000 50,220,000 850,000 52,428,000

TOTAL $37,854,300 $108,074,650 $32,820,500 $18,750,500 $70,011,900 $267,511,850

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CITY OF SUGAR LAND


FIVE-YEAR FORECAST



Revenues

Sales Tax 5,585,909$ 5,809,350$ 6,012,675$ 6,223,125$ 6,440,938$

Interest Income 11,454 37,354 35,633 25,150 48,520

TIRZ Assignment 500,000 600,000 625,000 830,000 975,000

Bond Proceeds - 36,199,543 - - -

Total Revenues 6,097,363 42,646,247 6,673,308 7,078,275 7,464,458

Expenditures

Economic Development Program 597,018 603,100 609,100 615,200 621,300

Economic Development Incentives 1,700,000 1,700,000 1,700,000 1,850,000 1,850,000

Capital Projects Reimbursement 150,000 - - - -

Sales Tax Incentive Grant 67,778 68,400 69,000 69,600 -

Debt Service 958,255 954,706 959,689 957,908 964,196

Performing Arts Center 473,252 40,100,776 4,031,207 2,871,031 2,871,632

Contractual Services 12,590 12,590 12,590 12,590 12,590


Total Expenditures 4,334,276 43,815,692 7,766,188 6,769,668 6,722,058

Revenues Over/ (Under) Exp's 1,763,087 (1,169,445) (1,092,880) 308,607 742,400

Fund Balance-Beginning 6,163,470 7,926,557 6,757,112 5,664,232 5,972,840

Fund Balance-Ending 7,926,557 6,757,112 5,664,232 5,972,840 6,715,240

Accrued Sales Tax (879,172) (879,172) (879,172) (879,172) (879,172)

Debt Service Reserve (1,452,698) (3,868,448) (3,868,448) (3,868,448) (3,868,448)Fund Balance-Available 5,594,687$ 2,009,492$ 916,612$ 1,225,220$ 1,967,620$

Minimum Fund Balance 558,591$ 580,935$ 601,268$ 622,313$ 644,094$

Over/Under Policy 5,036,096$ 1,428,557$ 315,345$ 602,907$ 1,323,526$

Bond Coverage Ratio (>1.25x) 1.43 1.46 1.52 1.57 1.62

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CITY OF SUGAR LAND


FIVE-YEAR FORECAST



Revenues

Sales Tax 5,585,909$ 5,809,350$ 6,012,675$ 6,223,125$ 6,440,938$

Interest Income 11,102 16,537 25,529 52,385 112,945

TIRZ Assignment 154,031 152,911 154,297 155,404 156,157

TIRZ Assignment 154,031 152,911 154,297 155,404 156,157

Miscellaneous 80,000 80,000 80,000 80,000 80,000

Total Revenues 5,831,042 6,058,798 6,272,501 6,510,914 6,790,040

Expenditures

Economic Development Program 511,621 516,730 521,890 527,100 532,360

Transfer to Capital Projects 1,012,000 400,000 400,000 100,000 100,000

Other 50,000 - - - -

Sales Tax Incentive Grant 67,778 68,400 69,000 69,600 -

Debt Service 3,348,206 3,367,344 3,366,138 3,345,919 3,352,281

Contractual Services 560,849 538,585 547,168 541,005 550,105

Promissory Note- Imperial Land 1,101,632 - - - -

Total Expenditures 6,652,087 4,891,059 4,904,195 4,583,624 4,534,746

Revenues Over/ (Under) Exp's (821,045) 1,167,739 1,368,306 1,927,290 2,255,294-

Fund Balance-Beginning 5,771,911 4,950,867 6,118,606 7,486,911 9,414,201

Fund Balance-Ending 4,950,867 6,118,606 7,486,911 9,414,201 11,669,495

Accrued Sales Tax (879,172) (879,172) (879,172) (879,172) (879,172)

Debt Service Reserve (3,386,450) (3,386,450) (3,386,450) (3,386,450) (3,386,450)Fund Balance-Available 685,245$ 1,852,984$ 3,221,289$ 5,148,579$ 7,403,873$

Minimum Fund Balance 558,591$ 580,935$ 601,268$ 622,313$ 644,094$

Over/Under Policy 126,654$ 1,272,049$ 2,620,022$ 4,526,267$ 6,759,779$

Bond Coverage Ratio (>1.25x) 1.62 1.67 1.73 1.79 1.86

190

CITY OF SUGAR LAND FINANCIAL MANAGEMENT POLICY STATEMENTS

I. Accounting, Auditing and Financial/Fiscal Reporting and Monitoring: Maintain accounting practices that conform to generally accepted accounting principles and comply with prevailing federal, state, and local statutes and regulations. Prepare and present regular reports that analyze and evaluate the City’s financial performance and economic condition.

II. Financial Consultants: The City will employ the assistance of qualified financial advisors and consultants as needed in the administration and management of the City’s financial functions. These areas include but are not limited to audit services, debt administration, delinquent tax collections, and financial modeling. The principal factors in the selection of these consultants will be experience/expertise, ability to perform the services, references, and methodology, to name a few. In no case should price be allowed to serve as the sole criterion for the selection.

III. Budget and Long Range Financial Planning: Establish guidelines for budgeting to help ensure a financially sound City and establish a long-range financial planning process that assesses the long-term financial implications of current and proposed operating and capital budgets.

IV. Revenues and Other Resources: Maintain a balanced and diverse revenue system that minimizes the City’s exposure to economic cycles and risk.

V. Expenditures and Services (non-capital) Identify and set priorities for services, establish appropriate service levels and administer the expenditure of available resources to help ensure fiscal stability and the effective and efficient delivery of services.

VI. Fund Balance/Ending Balances: Maintain the fund balance and retained earnings of the various operating funds at levels sufficient to protect the City’s creditworthiness as well as its financial position during emergencies.

VII. Capital Expenditures and Improvements: Annually review and monitor the state of the City’s capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, funding alternatives, and availability of resources.

VIII. Debt: Establish guidelines for debt financing that will provide needed facilities, land, capital equipment and infrastructure improvements while minimizing the impact of debt payments on current revenues as well as minimize reliance on debt.

IX. Cash Management/Investments: Invest the City’s operating cash to ensure its absolute safety of principal, provide for the necessary liquidity needs of the City, and to optimize yield.

X. Grants: Seek, apply for and effectively administer federal, state and local grants, which support the City's current priorities and policy objectives.

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I. ACCOUNTING, AUDITING AND FINANCIAL REPORTING Maintain accounting practices that conform to generally accepted accounting principles and comply with prevailing federal, state, and local statutes and regulations. Prepare and present regular reports that analyze and evaluate the City’s financial performance and economic condition. A. Accounting Practices and Principles The City will maintain accounting practices that conform to generally accepted accounting principles (GAAP) as set forth by the Governmental Accounting Standards Board (GASB), the authoritative standard setting body for units of local government. All city financial documents, except monthly interim financial reports, including official statements accompanying debt issues, Comprehensive Annual Financial Reports and continuing disclosure statements will meet standards. Monthly interim financial reports are on a cash basis and will be reported as budgeted. At year-end the general ledger and financials will be converted to full accrual basis B. Financial and Management Reports Interim Financial Reports will be provided monthly to management and City Council that explain key economic and fiscal developments and note significant deviations from the budget. (CIP reporting is reported separately under Capital Improvements) These reports will be reviewed monthly with the City Manager and provided to City Council by the end of each month for the prior month. These reports will be prepared on a cash basis Quarterly reports on the status of the City's Strategic Projects will be provided through the City Manager’s office and made available to the City Council. The reports will include project scope and work plan as well as comment on noteworthy activity.

Quarterly, departments will report on service level measures and/or indicators as compared to target and prior years through Budget & Research. Reporting to City Management will be on an exception basis.

C. Annual Audit Pursuant to State Statute, the City shall have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit. The audit shall be performed by a certified public accounting (CPA) firm, licensed to practice in the State of Texas. Although the Texas Local Government Code, Section 103.003 Filing: Public Record requires the annual financial statement including the auditor’s opinion on the statement to be filed with the City Secretary within 180 days after the last day of the fiscal year, it is the City’s goal to file the audit at the first City Council meeting in February. The audit firm shall provide a management letter to the City prior to the filing of the audit. The audit firm shall also provide a Single Audit of Federal and State grants, when necessary. An official Comprehensive Annual Financial Report (CAFR) shall be issued no later than six (6) months following the end of the fiscal year. The Officer Chief Accountant (or equivalent) shall be responsible for establishing a process to ensure timely resolution of audit recommendations.

D. Finance/Audit Committee The City Council shall designate a Finance/Audit Committee. The role of the committee is to review and guide financial policy and strategic financial issues as needed and determined by the City Manager or City Council. The Finance/Audit Committee responsibilities related to the audit will include but not be limited to:

• Overview of the planning and timeline of the audit and risk assessment.

• Final audit review, results, findings, management letter as well as major audit adjustments.

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• Meet as soon as practical and appropriate after final audit review to assess the status of issues addressed in the management letter, if warranted.

• Meet during the course of the audit regarding any major issues/concerns/findings that may arise.

E. Annual Financial Disclosure As required by the Securities and Exchange Commission (SEC) Rule 15c2-12, the City, with support of the City’s financial advisor and bond counsel, will provide certain annual financial information to various information repositories through disclosure documents or set of documents that include the necessary information. This will include any material event notices to be filed within 10 days of occurrence of the event as required by the 2010 amendments. F. Signature of Checks All checks shall have two signatures. Three persons shall be authorized to sign checks: the City Manager, an Assistant City Manager, and the Chief Accountant. Signatures shall be affixed to all City checks via facsimile signatures, made with a secure laser check printing system or through handwritten signatures affixed to each check. Component unit checks shall be signed in compliance with the bylaws of each corporation. G. Compliance with Council Policy Statements The Financial Management Policy Statements will be reviewed every two years and updated, revised or refined as deemed necessary. Policy statements adopted by City Council are guidelines, and occasionally exceptions may be appropriate and required. Exceptions to stated policies will be specifically identified and the need for the exception will be documented and explained to City Council and/or the City Manager.

II. FINANCIAL CONSULTANTS The City will employ qualified financial advisors and consultants as needed in the administration and management of the City’s financial functions. These areas include but are not limited to audit services, debt administration, delinquent tax collection attorney, and financial modeling. The principal factors in the selection of these consultants will be experience/expertise, ability to perform, the services offered, references, and methodology to name a few. In no case should price be allowed to serve as the sole criterion for the selection.

A. Selection of Auditors At least every five years, the City shall request proposals from qualified firms, including the current auditors if their past performance has been satisfactory. The City Council shall select an independent firm of certified public accountants to perform an annual audit of the accounts and records, and render an opinion on the financial statements of the City.

• It is the City's preference to rotate auditor firms every five years to ensure that the City's financial statements are reviewed and audited with an objective, impartial, and unbiased point of view. The rotation of the audit firm will be based upon the proposals received, the qualifications of the firm, and the firm's ability to perform a quality audit.

• However, if through the proposal and review process, management and the Finance Committee select the current audit firm, then, it is the City’s preference that the lead audit partner be rotated as well as the lead reviewer after a maximum of five years.

• Annually, the independent auditor will provide a letter of engagement to the City Council for annual audit services.

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B. Arbitrage While the City is responsible to ensure that the records are in order, the calculations made, reporting completed, and filings made, the actual arbitrage calculation and reporting shall be contracted out to a qualified firm.

• The City’s Chief Accountant and the Arbitrage Consultant shall complete a risk assessment of positive arbitrage on each bond issue annually to determine the necessity for a calculation of positive/negative arbitrage in the current year.

• All bond issues in accordance with arbitrage regulation shall have each 5th year and final arbitrage calculations completed.

• Requests for proposals and statement of qualifications are to be solicited at least every five years.

• There is not a requirement for rotation.

C. Delinquent Tax Collection Attorney Due to the nature and expertise required, the City shall hire a delinquent tax collection attorney to collect delinquent taxes, represent the City in filing bankruptcy claims, foreclose on real property, seize personal property, and represent the City in court cases and property sales.

• The City shall contract for a delinquent tax collection attorney either through Fort Bend County in conjunction with the contract for billing and collection of the City’s property taxes or shall contract directly with an attorney.

• The City shall review delinquent tax collection services and determine if they choose to contract direct or contract through the County either at the end of a direct contract for delinquent tax services or annually if contracted with Fort Bend County.

• If the City chooses to contract directly for delinquent tax collection services, requests for proposals and statements of qualifications are to be solicited at least every five year.

• There is not a requirement for rotation.

D. Bond Counsel Bond Counsel to the City has the role of an independent expert who provides an objective legal opinion concerning the issuance and sale of bonds and other debt instruments. As bond counsel are specialized attorneys who have developed necessary expertise in a broad range of practice areas, the City will always use a consultant for these services. Generally, bonds are not marketable without an opinion of nationally recognized bond counsel stating that the bonds are valid and binding obligations stating the sources of payment and security for the bonds and that the bonds are exempt from State and Federal income taxes.

• Due to the complexity of the City’s financial structure and the benefits that come with the history and knowledge of the City, the contract with Bond Counsel shall be considered evergreen, however with a termination clause.

• In order to ensure that the City is still receiving services for fair market value, staff will conduct a survey every five years of bond counsel fees and present a comparison and analysis to the City Manager and Finance/Audit Committee.

E. Financial Advisory Services

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The City issues various types of securities to finance its capital improvement program. Debt structuring and issuance requires a comprehensive list of services associated with municipal transactions, including but not limited to: method of sale; analysis of market conditions; size and structure of the issue; preparation of disclosure documents; coordinating rating agency relations; evaluation of and advice on the pricing of securities; assisting with closing and debt management; calculating debt service schedules; and advising on financial management.

• As financial advisors to governmental entities have developed the necessary expertise in a broad range of services, the City will use a consultant for these services, until such time that the City wishes to bring these services in-house.

• Due to the complexity of the City’s financial structure and the benefits that come with the history and knowledge of the City, the contract with the Financial Advisor shall be considered evergreen, however with a termination clause.

• In order to ensure that the City is still receiving services for fair market value, staff will conduct a survey every five years of Financial Advisory fees and present a comparison and analysis to the City Manager and Finance/Audit Committee.

F. Depository Bank Pursuant to State law, the City of Sugar Land may approve a depository services contract whose term does not exceed five years. There is no requirement for rotation. The City of Sugar Land will select its official banking institution through a formal process based on best value in order to provide the City with the most comprehensive, flexible, and cost-effective banking services available.

III. BUDGET AND LONG RANGE FINANCIAL PLANNING Establish guidelines for budgeting to ensure a financially sound City and to establish a long-range financial planning process that assesses the long-term financial implications of current and proposed operating and capital budgets.

A. Balanced Budget The City Manager shall file annually, a balanced budget for the ensuing fiscal year with City Council in compliance with state law and the City Charter.

In addition, it is expected that the annual operating budget will be structurally balanced. A structurally balanced budget is further defined as recurring revenues funding recurring expenditures and adherence to fund balance policies. Deferrals, short-term loans, or one-time sources will be avoided as budget balancing techniques. If economic conditions dictate that the City Manager file a structurally imbalanced budget, it shall be accompanied by a plan to return the budget to structural balance and the resulting five year financial forecast that reflects steps to be taken to return the budget to structural balance.

B. Current Funding Basis (Recurring Revenues) The City shall budget and operate on a current funding basis. Revenues and expenditures shall be budgeted on a cash basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues. Recurring expenses will be funded exclusively with recurring revenue sources to facilitate operations on a current funding basis.

C. Use of Non-Recurring Revenues

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Non-recurring revenue sources, such as a one-time revenue remittance or fund balance in excess of policy can only be budgeted / used to fund non-recurring expenditures, such as capital purchases or capital improvement projects. This will ensure that recurring expenditures are not funded by non-recurring sources. The following expenditures are considered non-recurring for budgetary purposes:

1. Sales Tax Incentive Grant Payment 2. Transfers to Replacement Funds (Fleet and High Technology) 3. Transfers to Capital Projects Funds equal to the net revenues (net of incentive grants) from Sales Tax

Incentive Agreements 4. Capital Expenditures 5. Contingency Funds

The following revenues are considered non-recurring in the definition of a structurally balanced budget:

1. Grant Revenues 2. Red Light Camera proceeds 3. Sales tax from Incentive Agreements 4. Dissolution Proceeds 5. Reimbursements for One Time Items

D. Tax Rate The City must levy a tax rate sufficient to generate revenues that will meet outstanding debt obligations, net of outside funding sources (transfers from Tourism and Utility Funds). The City Manager will recommend a tax rate that the City finances require in order to operate efficiently, yet effectively, and meets the City Council’s expectations of services provided and service levels. As economic conditions permit, the City Manager will recommend a tax rate not greater than the effective tax rate plus 3%. The goal is not to exceed an average annual increase in the residential tax bill of 3% unless the voters approve a general obligation bond referendum. The following shall be taken into account in managing growth in the average tax bill: property revaluation, tax rate adjustments and/or changes to the residential homestead exemption. The effective tax rate is defined as the tax rate that raises the same amount of total tax revenue in the current year as the prior year’s tax rate for properties taxed in both years. The effective tax rate is calculated based on a formula mandated by the state truth in taxation laws, and excludes new property value. Depending on valuation changes, the effective tax rate may be higher or lower than the prior year’s tax rate and generate the same amount of total property tax levy. The only increase in tax revenue is from new value added to the tax roll since the prior year. E. Homestead Exemption Annually the City Manager shall review the homestead exemption. When the financial health of the City’s finances and the economic and market conditions of the local economy justify, the City Manager shall recommend an increase to the homestead exemption to minimize the impact of revaluation on homeowners. In accordance with state statute, a recommended change in the homestead exemption shall be presented to Council for approval prior to July 1. The total exemption percentage granted shall not exceed the state limitation of 20%.

F. Over-Age Exemptions and Disabled Persons Exemption The City shall grant a $70,000 over-age exemption and disabled persons exemption each year when economic and financial conditions allow. This amount shall remain stable during the period in which the City is considering adjusting the homestead exemption.

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If a tax freeze were ever implemented for over-age and disabled persons, these exemptions would be reduced to zero.

G. Sales Tax Sales tax used to fund recurring operations shall be capped at 55%. As sales tax revenue fluctuates due to changes in economic conditions, the City shall endeavor through long-term strategies to reduce its reliance on sales tax revenues for funding recurring operating expenditures. The goal is to maintain sales tax for operations at 50% or less.

H. Sales Tax from Incentive Grant Agreements 1. Sales tax revenues generated from incentive grant agreements will not be used to fund recurring

operating expenditures but rather non-recurring capital purchases, economic development projects or capital improvement projects.

2. As the economic development sales tax is intended for use to promote economic development activities, the City shall strive to fund incentive agreements from economic development sales tax first, then from general fund sales taxes.

3. The portion of the City’s sales tax adopted for property tax reduction shall not be included in the calculation of incentive grants.

I. Sales Tax Transfer for Pay-As-You-Go Capital Projects As discussed in Section VII (G-2), to ensure that the City does not become overly reliant on sales tax revenues for operating needs, a transfer from General Fund sales tax to fund pay-as-you-go capital projects will be budgeted with a target of 10% of the annual General Fund budgeted sales tax, when it is financially feasible. The long-term goal is to adequately fund rehabilitation through ongoing maintenance. J. Water/Wastewater Transfer for Pay-As-You-Go Capital Projects As discussed in Section VII (G-2), the transfer from the City's Utility Fund to fund pay-as-you-go capital projects will be budgeted at a target of $2,000,000, when financially feasible. It will be based on the financial health of the Utility Fund with the long-term goal of adequately funding rehabilitation. K. Revenue Estimating for Budgeting In order to protect the City from revenue shortfalls and to maintain a stable level of services, the City shall use a conservative, objective, and analytical approach when preparing revenue estimates. The process shall include analysis of probable economic changes and their impacts on revenues, historical collection rates, and trends. This approach should reduce the likelihood of actual revenues falling short of budget estimates and should avoid mid-year service changes. The Utility Fund water and wastewater revenues will be budgeted based on an average year’s rainfall/consumption. The City will anticipate neither drought nor wet conditions. Adjustments to utility rates shall be made based on revenue requirements over the five year forecast for the utility fund. L. Employee Compensation When funding is available, the proposed budget shall include an amount adequate to cover an overall average performance and merit increase as determined annually by the City Manager. This amount will be calculated for each department, based on budgeted salaries for the year, and will be placed in the appropriate budget accounts. The City does not give cost of living increases. Other than adjustments due to changes in the compensation plan, salary increases are to be earned through merit and/or promotion increases.

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The City’s compensation plan shall be approved by City Council and administered by the City Manager as identified in the City Charter. All employees shall be paid within the approved budget and established salary ranges. M. Budget Management The budget is adopted by City Council through one reading of an ordinance. Upon approval, the budget can be either amended or adjusted based on the level of changes needed.

• Amendment- an increase to the overall appropriation in the fund or capital project. Must be approved by City Council through one reading of an ordinance.

• Adjustment- a reallocation of funds between departments without changing the total operating fund budget. Must be approved by the City Manager

Operating Budget Adjustments The City Manager is responsible for managing the operating budget after it is formally adopted by City Council, including the transfer of funds within program, between programs, between departments, and expenditure of contingency funds as long as there is no change in service levels as a result of the adjustments. The City Manager may further delegate levels of authority for the daily operation of the budget.

Operating Budget Amendments In order to preserve projected fund balances/ ending balances based on projected revenues and expenditures for the current fiscal year, City Council will amend the annual operating budget for all funds, excluding capital improvements funds, as set forth in the projections. City Council will amend the current fiscal year budget to projections annually through adoption of an ordinance amending the budget. Contracts or purchases presented for City Council approval shall identify the budgeted amount for the item within the current approved budget. A budget amendment by City Council is only necessary if the total appropriation for the fund is increased. This could occur under, but is not limited to, the following situations:

1. The budgeted appropriation will be exceeded at the fund level prior to year end. 2. Acceptance of a grant that was not included in the annual budget. 3. Appropriation from fund balances for items that were not budgeted. 4. A donation or sponsorship that exceeds estimated revenues and cannot be absorbed in contingency

funding. At year end, the annual operating budget will be amended by ordinance through projections and will reflect adjustments that were approved by the City Manager.

Capital Projects Budget Amendments As capital projects are budgeted on a project length basis and not a fiscal year basis, a project budget needs approval of a budget amendment when one of the following applies:

1. Increase to project funding with a corresponding increase in revenues a. Inter-local Agreements b. Award of a grant to enhance or expand the project

2. Reallocation of funding from one capital project to another 3. Increase to project funding from the Capital Projects Fund Balance 4. Reduction to project budgets as discussed below

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Capital Project budgets shall be amended (reduced) when construction bids come in significantly under estimates, project estimates shall be adjusted to reflect the construction bid plus a sufficient contingency and other project needs, and the remaining budget shall be reduced as necessary to reflect savings. When a project is funded from the issuance of debt, if the debt has not been sold at the time of the budget reduction, the revenue budget for bond proceeds shall be reduced accordingly.

N. Operating Deficits The City shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue re-estimates are such that an operating deficit is projected at year end. Corrective actions in order of precedence are:

1. Reduce transfers to the Capital Improvement Fund for pay-as-you-go CIP. 2. Deferral of capital purchases 3. Expenditure reductions 4. Hiring freezes 5. Freeze merit increases 6. Use of fund balance, including Replacement Fund balances. 7. Increase fees 8. Lay-off employees

Short-term loans shall be avoided to balance the budget. The use of fund balance, which is a one-time revenue source, may be used to fund an annual operating deficit, only with a subsequent approval of a plan to replenish the fund balance if it is brought down below policy level. O. Five-year Forecast of Revenues and Expenditures A five-year forecast of revenues and expenditures shall be prepared in conjunction with the annual budget process for the following funds:

• General Fund • Debt Service Fund • Tourism Fund • Water/Wastewater Utility Fund • Surface Water Fund • Airport Fund • Economic Development Corporations • (Five-Year Capital Improvement Program addressed in Capital Expenditures and Improvements)

The forecast assesses long-term financial implications of current and proposed policies, programs, and assumptions that develop appropriate strategies to achieve the City's goals. The forecast will provide an understanding of available funding; evaluate financial risk; assess the likelihood that services can be sustained; assess the level at which capital investment can be made; identify future commitments and resource demands; and identify the key variables that may cause change in the level of revenue. The forecast will be used to identify anticipated financial issues so that a plan can be developed to correct anticipated issues before they become reality.

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IV. REVENUES AND OTHER RESOURCES The City shall strive to maintain a balanced and diversified revenue system to protect the City from fluctuations in any one source due to changes in local economic conditions, which may adversely impact that source. The Office of Budget & Research shall maintain a revenue manual documenting the various revenue sources of the City and how those revenues are derived and estimated. A. Property Taxes

a. Taxes on Airport Value- Property taxes collected on taxable property at the Airport will be transferred to the Airport Fund to use for operations and development. This will ensure that users paying the property tax will see a direct benefit to the Airport.

b. Rebates to Municipal Utility Districts (MUDs) – As stipulated in the individual utility agreements, the City has agreed to rebate a portion of City taxes collected on properties within in-city MUDs back to the districts through various utility agreements. Rebate payments shall be calculated based on the taxes collected by the City on properties within the district since the point of the last rebate calculation (quarterly or semi-annually depending on the MUD), less any refunds given on those properties during that period.

c. Payments to Tax Increment Reinvestment Zones (TIRZ)- The City has several TIRZ established within the City. Taxes paid to the City on properties in each zone are paid to each TIRZ annually; payments due shall be adjusted for any refunds given on those properties since the last TIRZ payment was made.

B. Sales Tax Revenue

a. Monthly, the Economic Development Corporations will be allocated their percentage of the actual monthly sales tax remittances.

b. Of the remaining monthly amount available to the City, funds will be allocated first to General Fund operations, based upon the budgeted sales tax for operations, to ensure operating expenditures are funded. Transfers of Sales Tax to the Capital Projects Fund shall be made upon funds availability.

c. Each month the City will ensure that the cumulative sales tax for operations is met and will appropriately adjust the transfer to the Capital Improvement Fund as necessary.

d. Actual sales tax revenue received above the amount budgeted on an annual basis and over the fund balance policy will only be used to fund non-recurring expenses or be transferred to the Capital Improvement Fund for pay-as-you-go capital improvement projects.

e. Sales Tax from Sale of Aircraft i. Sales/Use tax remitted to the City that is determined to be from the sale/purchase of

aircraft at the City’s Airport will be transferred to the Airport Fund, excluding the percent allocated to the Economic Development Corporations.

ii. The proceeds that are allocated to the Economic Development Corporations will be identified as potential funding for Airport projects that legally meet the requirements of the Corporations.

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C. Administrative Services Charges The City shall determine annually the administrative services charges due to the General Fund from the enterprise funds for overhead and staff support using a cost allocation model. D. Utility Transfer to the Debt Service Fund for Assumed Water/Wastewater Debt The Utility Fund shall transfer to the Debt Service fund an amount/percent calculated annually for water/wastewater infrastructure debt assumed by the City due to annexation and dissolution of municipal utility districts.

a. The goal is to have water/wastewater debt funded by water/wastewater revenues as much as possible within the financial resources of the Utility Fund.

b. The City’s intent is to fund a transfer amount that equates to 100% of the annual debt service requirements for water/wastewater debt in the Debt Service Fund beginning with fiscal year 2013.

c. If the City should assume additional debt from municipal utility districts in the Debt Service Fund, the annual transfer for water/wastewater infrastructure debt will be reviewed and recalculated, if necessary.

E. Surface Water Revenues The City will maintain a Surface Water Fund to account for revenues and expenses associated with the mandated reduction in groundwater usage.

a. All participants in the City’s Groundwater Reduction Plan will pay into the fund an amount based on water supplied at a rate established per 1,000 gallons (GRP fee).

b. The GRP fee shall be paid monthly based on metered water pumped from groundwater sources.

c. City customers will be billed a surface water fee based on billed water consumption. The City shall contribute monthly GRP fees to the Surface Water Fund for City customers.

F. Water/Wastewater Billings Water, wastewater and surface water charges are billed in arrears, as customer meters are read monthly for the previous month’s water usage. At year end, revenues are accrued to adjust revenues to full accrual basis but during the year, revenues are recorded on a cash basis (when billed). G. Revenue Collections The City shall maintain high collection rates for all revenues by monitoring monthly receivables. The City shall follow an aggressive, consistent, yet reasonable approach to collecting revenues to the fullest extent allowed by law for all delinquent taxpayers and others overdue in payments to the City.

a. The City shall contract for collection of outstanding receivables when it makes economic sense for the City to do so.

b. Write-off of Un-collectible Receivables (excludes court fines and warrants) Receivables shall be considered for write-off as follows:

i. Undeliverable mail – accounts that remain outstanding for 6 months and all steps have been exhausted

ii. State Statute authorizing the release or extinguishment, in whole or in part, of any indebtedness, liability, or obligation, if applicable

iii. Accounts outstanding for 3 years, identified as uncollectible, and all attempts to collect have been taken

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iv. The write-off of uncollected accounts is a bookkeeping entry only and does not release the debtor from any debt owed to the City.

H. User Fees The City shall design, maintain, and administer a revenue system that will assure a reliable, equitable, diversified and sufficient revenue stream to support desired City services.

1. General Fund a. For services that benefit specific users the City shall establish and collect fees to recover the

costs of those services. b. Where services provide a general public benefit, the City shall finance those services through

property and sales taxes. c. For services that provide both specific benefits and a general public benefit, it may be

appropriate to subsidize from property and sales tax revenues. d. Costs of Services are defined as full-cost; direct, indirect, and overhead. e. Factors in setting of fees shall include but not be limited to: market and competitive pricing,

effect on demand for services, and impact on users, which may result in recovering something less than full cost.

2. Enterprise Funds a. Utility rates and other fund user fees shall be set at levels sufficient to cover operating

expenditures (direct and indirect), meet debt obligations and debt service coverage, provide pay-as-you-go funding for capital improvements, and provide adequate levels of working capital.

b. The City shall seek to eliminate all forms of subsidization between the General Fund and Enterprise Funds

c. The Five-Year Financial Plan shall serve as the basis for rate increase considerations. d. If necessary, the Five-Year Financial Plan shall be built around smaller rate increases annually

versus higher rate increases periodically. Working with the department or office, the Office of Budget & Research will determine the cost for each service and determine a full-cost price. Once a fee has been proposed for a particular service, the fee will be compared to market, evaluated for potential effects on users such as low-income households, market demands of service, etc. A fee will then be recommended to the City Manager and City Council based on all information gathered through the fee evaluation. User fees shall be adjusted by the Houston- Sugar Land- Baytown MSA CPI annually as part of the budget process, and a fee ordinance shall be adopted at the beginning of each fiscal year to reflect the fee revisions. I. Non-Resident Surcharges For services provided to municipal utility districts or individuals who reside outside the city limits, the City may assess an out-of-city service fee or non-resident user fee. The surcharges shall be set either as an additional percentage fee or a separate fee for non-residents and can be established by ordinance or by contract.

V. EXPENDITURES AND SERVICES Identify services, establish appropriate service levels and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of those services.

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A. Departmental & Office Business Plans Departments and Offices shall prepare a business plan to define their operating objectives.

a. The business plan should provide a link between the budget and the services provided; there should be no gaps or holes in accountability, either in accounting for resources provided or in defining services delivered.

b. The business plan shall include an organizational chart, service description and service levels, and measures that indicate how well the service is being delivered.

c. The business plan shall include an explanation of how services are delivered (by city staff or contracted) and expected results of the service delivery.

B. Annual Program of Services Annually, as part the budget process, a program of services for each program will be established for the ensuing year. The program of services will include a summary of services and service levels from the business plan, as well as service level expectations and staffing levels. C. Maintenance of Capital Assets Within the resources available each fiscal year, the City shall maintain capital assets and infrastructure at a sufficient level to protect the City’s investment, to minimize future replacement and maintenance costs, and to maintain service levels. D. Periodic Program/Service Reviews The City Manager and staff shall undertake periodic reviews of City programs and services for both efficiency and effectiveness. Outsourcing and contracting with other governmental agencies and/or the private sector will be evaluated as alternative approaches to service delivery. Programs or services determined to be inefficient and/or ineffective shall be recommended through the annual budget process to be reduced in scope or eliminated. E. Outsourcing of City Services The City provides many municipal services to its citizens covering a wide variety of disciplines. Attempting to perform all of these services in-house could dilute the City’s efficiency and not be cost effective. Two of the management tools utilized by the City to maximize efficiency and cost effectiveness are outsourcing and managed competition processes, the mere consideration of which provides economic benefits that flow from competition. The economic benefits of competition include lower costs and improved quality of performance irrespective of whether a given service is ultimately performed in-house or outsourced.

VI. FUND BALANCE/WORKING CAPITAL Maintain the fund balance and working capital of the various operating funds at levels sufficient to protect the City’s creditworthiness as well as its financial position during emergencies or economic fluctuations. Should the budgeted fund balance drop below the minimum identified by the policy below, the City should establish a plan to replenish the balances within two years. A. Governmental Fund Balances There are five categories of Fund Balance in all governmental funds, not all will always be present. The categories are defined below:

1. Non-spendable- cannot be spent due to being non-spendable in form or the city being legally or contractually required to maintain this amount intact.

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2. Restricted- balances are subject to external restrictions from creditors, grantors, contributors, or laws of other governments. 3. Committed- use of funds is only for specific purposes as determined by City Council. City Council will approve obligations of funds such as multi-year contracts prior to the end of the fiscal year. 4. Assigned- intended use of balances for specific purposes is established by the City Council or delegated to the City Manager that is neither restricted or committed and includes the remaining positive balance of all governmental funds except the General Fund. Balances for encumbrances, other than those committed by City Council, fall into this category. 5. Unassigned- balances are available for any purpose; excess fund balances after above categories have been deducted. This type of balance is reported in the General Fund and negative fund balances in other than General Fund.

B. General Fund Unassigned Fund Balance The City shall maintain the General Fund unassigned fund balance equivalent to three months of normal recurring operating costs, based on current year budgeted expenditures. If the fund balance exceeds this amount, the amount in excess of policy requirements may be utilized to fund one-time expenditures in the next fiscal year’s budget. Other governmental operating funds that do not have a policy minimum defined shall adhere to the general fund balance policy. C. The City will typically use Restricted fund balances first, followed by Committed resources, and then Assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend Unassigned resources first to defer the use of these other classified funds. D. Working Capital of Enterprise Operating Funds In enterprise operating funds, the City shall maintain working capital sufficient to provide for reserves for emergencies and revenue shortfalls, specifically in the Utility and Airport Funds. Enterprise funds without major infrastructure or assets will have no minimum balance requirement. A cash operating reserve will be established and maintained as follows: 1. Utility Fund - 25% of the current year's budget appropriation for recurring operations and maintenance. 2. Airport Fund - 25% of the current year's budget appropriation for recurring operations and maintenance,

excluding fuel for resale. 3. Surface Water Fund – 50% of the current year’s budgeted expenses. Funds in the reserve may be utilized

as a general purpose reserve without limitation to type (debt, capital expense, etc). The cash operating reserve is derived by dividing the total cash equivalents balance by recurring operating expenses. E. Use of Fund Balance/Working Capital Fund Balance/Working Capital shall be used only for emergencies, non-recurring expenditures/ expenses, or major capital purchases that cannot be accommodated through current year savings. Should such use reduce balances below the level established as the minimum for that fund, restoration recommendations will accompany the request/decision to utilize said balances. F. Debt Service Funds The City shall maintain the debt service fund balance at 10% of annual debt service requirements OR a fund balance reserve as required by bond ordinances, whichever is greater.

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G. Internal Service Funds

1. Fleet Replacement Fund-The Fleet Replacement Fund reserve will be maintained based upon a lifecycle or useful life replacement plan to ensure adequate fund balance required for systematic replacement of fleet vehicles. Fund Balance shall not be less than 10% of the total inventory asset value.

2. Technology Replacement Fund- The High Technology Replacement Fund reserve will be maintained based upon a lifecycle or useful life replacement plan to ensure adequate fund balance required for systematic replacement of technology. Fund Balance shall not be less than 10% of the total technology asset value.

3. Employee Benefits Fund- The Employee Benefits Fund is funded through City and employee contributions. Estimated costs shall be determined during each budget year and the contributions adjusted accordingly. There is no minimum balance for this fund.

H. Economic Development Corporations As sales taxes fluctuate due to changes in the economy, the SLDC and SL4B Corporations shall maintain an unreserved fund balance of no less than 10% of budgeted sales tax collections.

VII. CAPITAL EXPENDITURES AND IMPROVEMENTS City staff will review and monitor the state of the City’s capital equipment and infrastructure annually, setting priorities for its replacement and renovation based on needs, funding alternatives, and availability of resources. A. Capitalization Threshold for Tangible Capital Assets Tangible capital items should be capitalized only if they have an estimated useful life of at least one year following the date of acquisition or significantly extend the useful life of the existing asset and cannot be consumed, unduly altered, or materially reduced in value immediately by use and has a cost of not less than $5,000 for any individual item. The capitalization threshold of $5,000 will be applied to individual items rather than to a group of similar items. (i.e.: desks, chairs, etc.) Computer software, regardless of cost, will not be capitalized. To maintain adequate control over non-capitalized tangible items, items costing $1,000 to $4,999 will be monitored and tracked through the City’s financial software system. B. Five-Year Capital Improvement Plan (CIP) The City shall annually prepare a five-year capital improvement plan based on the needs for capital improvements and equipment, the status of the City’s infrastructure, replacement and renovation needs, and potential new projects. Capital projects are improvements or additions to the City's physical plant/facilities and become part of the City's asset inventory. Capital projects can be further categorized into land, buildings, improvements other than buildings, and infrastructure, which includes roads, sidewalks, bridges, utility lines, etc. Capital costs typically consist of preliminary design, final design, and construction, and may involve the acquisition of land or easements. For every project identified in the plan, a project scope and project justification will be provided. Also, project costs shall be estimated, funding sources identified and annual operation and maintenance costs computed.

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Citizens, Parks Board and the Planning and Zoning Commission will be provided opportunities to review the list of CIP projects for the Five-Year Capital Improvement Plan and may suggest additions and/or changes to the plan as appropriate. Pursuant to the City Charter, the Planning & Zoning Commission makes recommendations to the City Manager and the City Council on the City’s Five-Year Capital Improvement Plan. The City Manager is charged with recommending a Capital Improvement Plan to City Council. Projects submitted, either by staff, through a neighborhood or citizen request, or through joint participation, will be reviewed in conjunction with the entire capital improvement program and submitted to City Council for final consideration. The Five-Year Capital Improvement Plan shall be filed and adopted with the annual budget. The Five-Year CIP shall be limited to the affordability limits identified in the long-range financial plans of the City, taking into consideration pay-as-you go, bond issuances, operating costs, etc. Projects that cannot be funded in the Five Year CIP will be included in the CIP for future reference as an appendix of unfunded requests. The City will establish and maintain Capital Project Funds based on various funding sources as identified below:

• General Capital Projects (non-bond) - includes projects funded from general fund sales tax transfers, corporation reimbursements, grants and other funding sources. Includes rehabilitation of infrastructure to extend its useful life.

• General Capital Projects (bond funds)- supported by proceeds of tax exempt bonds that are to be repaid from property taxes and interest earned thereon; projects funded from this source must be consistent with the uses identified in the bond documents.

• Utility Enterprise CIP (non-bond) - includes projects funded from revenues of the utility system. Includes rehabilitation of infrastructure to extend its useful life. Revenues are budgeted as a transfer from the Utility System Operating fund.

• Utility Enterprise CIP (bond funds) - supported by proceeds of tax-exempt bonds that are to be repaid from enterprise utility and surface water revenue sources. Bonds payable are recognized in the Utility Enterprise Fund and Surface Water Fund as long term liabilities.

• Airport Enterprise CIP (non-bond) - includes projects funded from revenues of Sugar Land Regional Airport and outside funding sources. Revenues are budgeted as a transfer from the Airport Operating fund or as grants from third parties (FAA/TxDOT).

• Airport Enterprise CIP (bond funds) - supported by proceeds of tax-exempt bonds that are to be repaid from enterprise airport revenues. Bonds payable are recognized in the Airport Enterprise Fund as long term liabilities.

Annually, through the budget process and at year-end, projects are to be reviewed and if identified as complete will be closed according to the Project Close out Procedure by Budget & Research and any remaining funds closed to the CIP fund balance, which can then be re-appropriated during the next fiscal year capital budget. Funds remaining from bond proceeds will only be used in accordance with the legal use of those funds. Appropriations for capital projects are for the life of the project; therefore re-appropriation of capital funding for budgeted projects will not be necessary.

1. Infrastructure Evaluation and Replacement/Rehabilitation

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Water, wastewater, drainage, street lighting, streets and sidewalks, municipal facilities, and other infrastructure are fundamental and essential functions for public health and safety, environmental protections and the economic well-being of the City. As a result, the City’s CIP should be focused on ensuring that infrastructure is replaced or rehabilitated as necessary to protect the City’s investment, to minimize future replacement and maintenance costs, extend the useful life of the asset, and to maintain existing levels of service and accommodate growth.

Infrastructure will be replaced or rehabilitated at the end of its useable service life if it is financially feasible to do so. 2. If upgrades are warranted to meet current design standards, a cost/benefit analysis will be performed. (See Infrastructure Evaluation Policy)

C. Community Redevelopment Projects A Community Redevelopment Project is a capital project approved, funded, and implemented within an identified neighborhood for the purpose of upgrading public infrastructure to an established standard without regard to the remaining serviceable life of the infrastructure. Requests will be reviewed and prioritized in conjunction with the entire capital improvement program and within the City’s financial ability for pay-as-you-go funding, not to exceed ½ of one percent of the total City operating budget. There will be a dollar for dollar match to City funds from non-City third-party sources. (See Capital Improvement Projects for Community Redevelopment Policy) D. Joint Capital Improvement Projects The City will establish guidelines for City participation in Joint Capital Improvement Projects with community based organizations that would either add to or enhance the City’s Five-Year Capital Improvement Plan (See Joint Capital Improvement Policy) The projects must benefit the general public and not more than $100,000 will be set aside annually for the City’s participation in these type projects, funded through the Sugar Land 4B Corporation. The request will be reviewed, verified to ensure the request meets the criteria set forth in the policy, and prioritized in conjunction with the entire capital improvement program and within the financial ability of the Sugar Land 4B Corporation.

E. Replacement of Capital Assets on a Regular Schedule (Fleet and Technology) The City shall annually prepare a schedule for the replacement of its fleet and high technology capital assets. Funding for the replacement of these assets will be accomplished through the use of an annual depreciation structure charged to each participating fund at 100% of annual depreciation based on lifecycle or useful life of the asset. Within the resources available each fiscal year, the City shall replace these assets according to the Fleet and High Technology Replacement Policies. F. Capital Expenditure Financing The City recognizes that there are three basic methods of financing its capital requirements: Funding from current revenues; funding from fund balance/working capital as allowed by the Fund Balance/Working Capital Policy; or funding through the issuance of debt. Types of debt and guidelines for issuing debt are set forth in the Debt Policy Statements.

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G. Pay-As-You-Go Capital Improvements 1. The City will pay cash for capital improvements within the financial affordability of each fund versus

issuing debt when funding capital improvements and capital purchases. This will reduce/minimize the property tax and utility rate impacts on Sugar Land citizens.

2. Pay-as-you-go projects shall be budgeted based on funding available from Revenues under Section III-

Revenues, subsection I and J. 3. Unless CIP balances are sufficient to pre-fund pay-as-you-go projects, scheduling of pay-as-you-go

capital improvement projects shall coincide with the collection and accumulation of sales tax and system revenues. CIP projects shall be initially scheduled based on the budgeted accumulation of funding. CIP projects funded by pay-as-you-go funding must receive approval from the Office of Budget & Research before they begin, to ensure funding is available.

H. Capital Projects Management Capital project status reports shall be completed by project managers monthly, and project status and issues shall be reported to the City Council quarterly.

a. Project Close Out- A project will be closed once the original scope of the stated project has been completed as determined by Engineering and the project manager.

b. Remaining Funds- Funds left in a project after completion shall be closed out and fall to the CIP fund balance. Engineering, Accounting and Budget will identify and close out projects on a quarterly basis to facilitate identification of funds that can be used for other projects.

c. Annual rehabilitation projects- unused funds budgeted for annual rehabilitation and repairs will close out at the end of each fiscal year if not encumbered.

VIII. DEBT Establish guidelines for debt financing that will provide needed facilities, land, capital equipment and infrastructure improvements while minimizing the impact of debt payments on current and future revenues. A. Use of Debt Financing Debt financing, to include general obligation bonds, revenue bonds, certificates of obligations, certificates of participation, lease/purchase agreements, and other obligations permitted to be issued or incurred under Texas law, shall only be used to purchase capital assets that cannot be prudently acquired from either current revenues or fund balance/working capital and to fund infrastructure improvements and additions. Debt will not be used to fund current operating expenditures. The City will pay cash for capital improvements within the financial affordability of each fund versus issuing debt when funding capital expenditures and capital improvements, which shall include but not be limited to sales tax, utility system revenues, developer fees, inter-local agreements, and state and federal grants. B. Debt Financing

1. Affordability The City shall use an objective analytical approach to determine whether it can afford to issue new general-purpose debt, both General Obligation bonds and Certificates of Obligation. This process shall compare City accepted standards of affordability to the current values for the City. These standards may include debt per capita, debt as a percent of taxable value, taxable value per capita, and tax rate. The process shall also examine the direct costs and benefits of the proposed expenditures. In addition, the analysis will evaluate the

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capacity within the General Fund to take on the operating expenditures associated with the completion of the proposed capital improvements. When a project will have a significant impact on the operating budget, the tax rate shall be shifted from debt service to maintenance & operations to support the increased expenditures. Further debt capacity shall be evaluated based on the remaining debt service tax capacity. The decision on whether or not to issue new debt shall be based on these costs and benefits, current conditions of the municipal bond market, and City’s ability to “afford” new debt as determined by the aforementioned standards.

2. Debt Capacity The City shall complete an annual debt capacity assessment to ensure that proposed debt is affordable and contributes to the financial strength of the City. The debt capacity is the upper limit on the dollar amount of capital improvements that the City can afford to fund from debt.

Debt capacity calculations for long-term planning shall assume market rates for the average annual interest costs at the time the capacity is determined. The analysis shall not assume future refunding of any outstanding bonds and shall consider both debt service requirements on current and proposed debt.

For property tax supported debt, maximum capacity shall be determined by an amount of annual debt service that the City can absorb within the proposed tax rate allocation for debt based on assumed growth in assessed valuation. For revenue debt, maximum capacity shall be determined by the amount of annual debt service that the City can absorb within a proposed rate structure that has been reviewed with City Council and which can support the proposed debt within the additional bonds test as defined in the revenue bond covenants. The City shall not exceed debt capacity as defined through bond covenants or fall below bond coverage ratios for additional revenue bonds.

Factors that will be included in the annual debt capacity determination shall include:

• Existing debt obligations • Evaluation of revenue and expenditure trends • Various measures of debt burden on the community • Debt per capita • Debt to assessed value ratio • Taxable value per capita • Statutory or constitutional requirements • Market factors such as interest rates, credit ratings or market status

C. Certificates of Obligation Certificates of Obligation may be issued without voter approval to finance any public works project or capital improvement, as permitted by State law. However, it is the policy of the City to utilize Certificates of Obligation to finance public improvements in certain circumstances and only after determining the City’s ability to assume additional debt based on the standards identified above. Circumstances in which Certificates might be issued include, but are not limited to the following: • The City may issue CO’s when there is insufficient funding on a general obligation bond-financed capital

improvement;

209

• The City may issue CO’s when conditions require a capital improvement to be funded rapidly rather than waiting for a GO bond election;

• The City may issue CO’s for projects when the City can leverage dollars from others to reduce the City’s capital cost for a community improvement;

• The City may issue CO’s for projects when there is no other funding source available and the project is determined to be in the best interest of the City.

• The City may issue CO’s if it would be more economical to issue Certificates of Obligation rather than issuing revenue bonds; and

• The City may issue CO’s for projects for which the City will be reimbursed by Developer (principal plus interest)

D. General Obligation Bonds (GO) General Obligation bonds require voter approval. When the list of unfunded projects contains projects that the City Council wishes to fund but cannot afford, then the City will consider taking a GO Bond Proposition(s) to the voters.

1. Bond Elections- a. Timing of general obligation bond elections shall be determined by the inventory of current

authorized, unissued bonds remaining to be sold and the Five-Year Capital Improvement Program b. The total dollar amount of bond election propositions recommended to the voters may not exceed

the City's estimated ability to issue the bonds within a seven year period after the election passes. c. An analysis showing how the new debt combined with current debt impacts the City’s tax rate and

debt capacity will accompany every bond issue proposal. The analysis will also include the estimated impact on the operations and maintenance portion of the tax rate.

2. General Obligation bonds must be issued to accomplish projects identified in the bond referendum and associated material.

3. General Obligation bonds must be issued for projects that are in accordance with the wording in the bond propositions.

E. Revenue Bonds For the City to issue new revenue bonds, revenues, as defined in the ordinance authorizing the revenue bonds in question, shall be a minimum of 125% of the average annual debt service and 110% of the debt service for the year in which debt requirements are scheduled to be the greatest. Annual adjustments to the City’s rate structures for enterprise funds will be made as necessary to maintain the coverage factor. When the City issues CO’s for enterprise fund projects (airport), the City shall prepare a five year financial plan to ensure that the enterprise fund maintains bond coverage as if it were supporting revenue bonds. General purpose reserves in the Surface Water Fund shall be maintained at levels high enough to meet debt service payments should pledged revenues fall short of projections in addition to serving as a normal operating reserve. F. Debt Structures

• The City shall normally issue bonds with a life not to exceed 25 years for general obligation bonds and 25 years for revenue bonds, but in no case longer than the useful life of the asset.

• The City shall seek level or declining debt repayment schedules and shall seek to retire 50% of the total principal outstanding within 10 years of the year of issuance.

210

• There should be no debt structures that include increasing debt service levels in subsequent years, with the first and second year of a bond payout schedule the exception or as special situations may warrant.

• There shall be no “balloon” bond repayment schedules, which consist of low annual payments and one large payment of the balance due at the end of the term.

• There shall always be at least interest paid in the first fiscal year after a bond sale and principal payments starting generally no later than the second fiscal year after the bond issue.

• Normally, there shall be no capitalized interest included in the debt structure except for debt issuances reimbursing developers for infrastructure, which shall not exceed 2 years of capitalized interest.

G. Debt Refunding

The City’s financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the net present value savings of a particular refunding should exceed 3.0% of the refunded maturities unless (1) a debt restructuring is necessary or (2) bond covenant revisions are necessary to facilitate the ability to provide services or to issue additional debt.

H. Interest Earnings and Remaining Bond Proceeds Interest earnings on bond proceeds will be limited to funding changes to the bond financed Capital Improvement Plan in compliance with the voted propositions, cost overruns on bond projects, or be applied to debt service payments on the bonds issued.

I. Sale Process The City shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a negotiated sale. The City will utilize a negotiated process when the issue is, or contains, a refinancing that is dependent on market/interest rate timing. The City shall award the bonds based on a true interest cost (TIC) basis. However, the City may award bonds based on a net interest cost (NIC) basis as long as the financial advisor agrees that the NIC basis can satisfactorily determine the lowest and best bid.

J. Underwriting Syndicates The City attempts to involve qualified and experienced firms, which consistently submit ideas to the City and financial advisors and actively participate in the City’s competitive sales in its negotiated underwritings. In conjunction with the City’s financial advisor, City staff will recommend the structure of underwriting syndicates, which will be effective for the type and amount of debt being issued.

K. Rating Agency Presentations Full disclosure of operations and open lines of communications shall be maintained with the rating agencies. City staff, with the assistance of financial advisors, shall prepare the necessary materials and presentation to the rating agencies. Credit ratings will be sought from one or more of the nationally recognized municipal bond rating agencies, currently Moody's Investor Services, Standard & Poor's, and Fitch Inc., as recommended by the City's financial advisor. M. Bond Ratings The City will prudently manage the General, Economic Development Corporations, and Enterprise Funds and attempt to issue and structure debt to help maintain or increase the current bond ratings. N. Lease/Purchase Agreements The City will use lease/purchase agreements for capital items (such as fire trucks) when it is cost-efficient and provides for more attractive terms than issuance of bonds.

211

IX. CASH MANAGEMENT AND INVESTMENTS To maintain the City's cash in such a manner so as to ensure the absolute safety of principal, to meet the liquidity needs of the City, and to achieve the highest possible yield. A. Investment Management

1. All aspects of cash/investment management shall be designed to ensure safety and integrity of the City's financial assets.

2. Cash/Investment management activities shall be conducted in full compliance with prevailing local, state, and federal regulations. (See City Investment Policy and Investment Strategy)

3. The City will utilize competitive bidding practices wherever practical, affording no special advantage to any individual or corporate member of the financial or investment community.

4. The City will only do business with City authorized broker/dealers and/or financial institutions as approved by Council and who have executed a written certification of their review of the City’s Investment Policy.

5. The City shall design and establish policies relating to a variety of cash/investment management issues, such as the eligibility and selection of various broker/dealers, safekeeping requirements, collateral requirements, delivery versus payment requirements, weighted average maturity requirements and such other aspects of the program, which necessitate standard setting in pursuit of appropriate prudence and enhanced protection of assets. (See Investment Policy)

6. Investments of the City shall be made with the exercise of judgment and care which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment.

B. Investment Strategy The City of Sugar Land maintains a consolidated portfolio in which it pools its funds for investment purposes. The City's investment program seeks to achieve safety of principal, adequate liquidity to meet cash needs, and reasonable yield commensurate with the preservation of principal and liquidity. Refer to the City’s Investment Strategy as adopted by City Council annually for detail. C. Interest Income Interest earned from investments shall be distributed to the funds from which the funds were provided. D. Arbitrage Investments and Reporting The City's investment position as it relates to arbitrage is as follows: Investments on bond proceeds will be made with safety of principal and liquidity in mind, but with a competitive rate of return. Bond proceeds will be invested in separate instruments and not commingled with other investment purchases. Arbitrage rebate calculations will be performed annually on all debt issues and funds set aside annually for any positive arbitrage. Arbitrage will be rebated to the IRS, as necessary. E. Depository The City of Sugar Land will select its official bank depository through a formal bidding process in order to provide the City with the most comprehensive, flexible, and cost-effective banking services available. The City will at a minimum, bid depository services every five years.

212

F. Collateralization of Deposits 1. The City of Sugar Land shall have pledged collateral held at an independent third-party institution and

evidenced by a written receipt.

2. The value of the pledged collateral should be marked to market monthly and shall be at least 102 percent of par or market value of the investments, whichever is greater.

3. Substitutions of collateral shall meet the requirements of the collateral agreement and have prior written approval. Collateral shall not be released until the replacement collateral has been received.

4. The pledge of collateral shall comply with the City's Investment Policy.

X. GRANTS

The City will seek, apply for, and effectively administer federal, state and local grants, which support the City's current priorities and policy objectives. A. Grant Guidelines The City shall apply and facilitate the application for only those grants that are consistent with the objectives and high priority needs identified by Council and City Management. Grant funding will be considered to leverage City funds. Inconsistent and/or fluctuating grants should not be used to fund ongoing programs. The potential for incurring ongoing costs, to include assumptions of support for grant-funded positions from local revenues, will be considered prior to applying for a grant. B. Grant Review and Acceptance All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet the City's goals. If there is a cash match requirement, the source of funding shall be identified prior to application. (Refer to City’s Inter-Departmental Grant Policy AC104) All grants awarded to the City of Sugar Land must be submitted to City Council for consideration and approval. If the funding is not already included in the annual budget, the budget shall be amended to reflect revenues and expenditures associated with the grant. C. Grant Termination and/or Reduced Grant Funding In the event of reduced grant funding, City resources will be substituted only after all program priorities and alternatives are considered during the budget process, unless the City is obligated through the terms of the grant to maintain the positions. The City shall terminate grant-funded programs and associated positions when grant funds are no longer available, and it is determined that the program no longer supports City goals and/or is no longer in the best interest of the City, unless the City has obligated itself through the terms of the grant to maintain the positions after the grant period ends.

213

ORDINANCE NO. 1932 AN ORDINANCE ADOPTING THE ANNUAL BUDGET FOR THE CITY OF SUGAR LAND, TEXAS, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2013 AND ENDING SEPTEMBER 30, 2014, APPROPRIATING THE SUMS AS SET FORTH THEREIN, ADOPTING THE CAPITAL IMPROVEMENTS PROGRAM 2014 - 2018, AND ADOPTING A COMPENSATION PLAN. WHEREAS, section 6.03 of the City Charter requires: (1) That the city manager prepare an annual budget for the ensuing fiscal year; (2) That the city manager submit to the city council for its review, consideration and revision,

both a letter describing the proposed budget as well as a balanced budget for the forthcoming fiscal year, not later than sixty days prior to the end of the City’s fiscal year;

(3) That the budget, as adopted, set forth the funding for services, programs, and activities of the

various city departments and meet all fund requirements provided by law and required by bond covenants;

(4) That the budget include a multi-year capital improvement program and a current year capital

budget; (5) That the budget not be adopted or appropriations made unless the total of estimated revenues,

income and funds available are equal to or in excess of the budget or appropriations, except as otherwise provided by the Charter;

(6) That the budget be adopted by ordinance by one reading not later than the 25th day of the last

month of the fiscal year; and WHEREAS, Chapter 102 of the Texas Local Government Code requires: (1) That the city manager file the proposed budget with the city secretary before the 30th day before

the date the city council makes its tax levy for the fiscal year; (2) That the city council hold a public hearing on the proposed budget at least fifteen days after

the date the budget is filed with the city secretary but before the date the city council makes its tax levy, notice of which hearing is to be published as required by law; and

WHEREAS, all the requirements of the City’s Charter and State law have or will be met upon

passage of this ordinance; NOW, THEREFORE,

214

BE IT ORDAINED BY THE CITY COUNCILOF THE CITY OF SUGAR LAND, TEXAS:

Section 1. That the budget of the City of Sugar Land, Texas, for the fiscal year beginning October1, 2013, and ending September 30, 2014, as shown in attached Exhibit A, is adopted and the amountsspecified therein for the programs, services, and activities of the City' s various departments areappropriated as shown therein.

Section 2. That the Capital Improvements Program 2014 - 2018, as set forth in Exhibit B, isadopted.

Section 3. That the Compensation Plan, as set forth in Exhibit C, is adopted.

Section 4. That the budget as approved be filed with the City Secretary who in turn is authorizedand directed to comply with all filing, publication and other requirements set forth in Chapter 102 TexasLocal Government Code, including filing copies of this ordinance and the budget with the County Clerk ofFort Bend County, Texas, and including posting the cover page, record vote, property tax rates and suchother information on the City' s website as may be legally required.

APPROVED on one reading :: 2013, in compliance with section 6.03b) of the City' s Charter.

James ' . Thompson,' ayor

ATTEST: APP' OVED AS TO FORM:

w"

Glenda Gun. rmann, City Secretary

Attachments: Exhibit A—2013- 2014 BudgetExhibit B— 2014 - 2018 Capital Improvements ProgramExhibit C— Compensation Plan

215

ORDINANCE NO. 1928

AN ORDINANCE OF THE CITY OF SUGAR LAND, TEXAS, LEVYING A PROPERTY TAX

RATE FOR THE YEAR 2013; DIRECTING THE TAX ASSESSOR-COLLECTOR TO ASSESS,

ACCOUNT FOR, AND DISTRIBUTE THE PROPERTY TAXES AS HEREIN LEVIED.

WHEREAS, Section 26.05 ( a) of the Tax Code requires taxing authorities to adopt a property taxrate by September 30 of each year or within sixty days after receipt of the certified appraisal roll; and

WHEREAS, Section 26.05 ( a) of the Tax Code requires the total property tax rate be approved intwo components: ( 1) Maintenance and Operations; and( 2) Debt Service; NOW, THEREFORE:

BE IT ORDAINED BY THE CITY COUNCIL

OF THE CITY OF SUGAR LAND, TEXAS:

Section 1. That the property tax rate per $ 100. 00 valuation for the City of Sugar Land for taxyear 2013 is adopted as follows:

Maintenance and Operations 0. 17285

Debt Service 0. 13610

Total Tax Rate 0.30895

Section 2. THIS TAX RATE WILL RAISE MORE TAXES FOR

MAINTENANCE AND OPERATIONS THAN LAST YEAR' S TAX RATE.

Section 3. That the recorded vote of the City Council on this ordinance is:

Council Members voting FOR adoption: James A. Thompson, Mayor; Himesh Gandhi,

At Large # 1; Joe R. Zimmerman, At Large # 2; Steve R. Porter, District 1; Bridget R.

Yeung, Mayor Pro Tem, District 2; Amy Mitchell, District 3; Harish Jajoo, District 4

Council Members voting AGAINST adoption: None

Council Members absent: None

Section 4. That this ordinance is adopted upon one reading in compliance with Section 6.03 ofthe City Charter.

APPROVE

7,6/1-41,11_,./ 2013.

Jades A. Tho pson, Mayor

AT ' ST:

41fr.,7, zaty _

Glenda dermann, City Secretary

APPROVED AS TO FORM:

216

Non-Exempt Salary Structure FY14

CITY OF SUGAR LAND SALARY STRUCTURE

FOR NON-EXEMPT POSITIONS FY14

Range Position Title Minimum Midpoint Maximum

N-0

1 COURIER $ 11.82 $ 15.01 $ 18.20

CUSTODIAN $ 24,586 $ 31,221 $ 37,856

RECEPTIONIST

N-0

2

ADMINISTRATIVE SECRETARY $ 12.41 $ 15.76 $ 19.10

COURT CLERK $ 25,813 $ 32,781 $ 39,728

CUSTOMER SERVICE REP

GENERAL MAINTENANCE WORKER I

PERMIT CLERK

RECORDS CLERK

VETERINARY TECHNICIAN

WARRANT CLERK

N-0

3

ADMINISTRATIVE SPECIALIST $ 13.04 $ 16.55 $ 20.08

BILLING/COLLECTION SPEC. I $ 27,123 $ 34,424 $ 41,766

CAFÉ ATTENDANT I

SOLID WASTE MONITOR

SR. PERMIT CLERK

TRAFFIC TECHNICIAN I

N-0

4

ACCOUNTS PAYABLE SPECIALIST $ 13.69 $ 17.52 $ 21.35

AIRPORT SERVICES REP $ 28,475 $ 36,442 $ 44,408

BILLING SPECIALIST II

BUYER I

CAFÉ ATTENDANT II

COURT SERVICES SPECIALIST

SR. SECRETARY

N-0

5

ANIMAL SERVICES OFFICER $ 14.50 $ 18.56 $ 22.62

BUILDING SERVICES TECHNICIAN $ 30,160 $ 38,605 $ 47,050

FLIGHT LINE CREW

GENERAL MAINTENANCE WORKER II

PARKS FACILITIES TECHNICIAN

218



N-0

6

AIRPORT SPECIALIST $ 15.37 $ 19.68 $ 23.98

CONTRACT SERVICES MONITOR $ 31,970 $ 40,934 $ 49,878

HR SPECIALIST

PUMP & MOTOR TECHNICIAN I

PURCHASING SPECIALIST

RECORDS SPECIALIST

TREASURY SPECIALIST

WARRANT COORDINATOR

WATER QUALITY TECHNICIAN

N-0

7

AUTOMOTIVE TECHNICIAN I $ 16.30 $ 21.02 $ 25.75

COURT DOCKET COORDINATOR $ 33,904 $ 43,722 $ 53,560

CRIME SCENE TECHNICIAN

DEVELOPMENT REVIEW COORDINATOR

ENGINEERING SPECIALIST

EXECUTIVE SECRETARY

PUMP & MOTOR TECHNICIAN II

TELECOMMUNICATIONS SPECIALIST

N-0

8

ACCOUNTANT I $ 17.53 $ 22.61 $ 27.70

ADMINISTRATIVE SUPERVISOR $ 36,462 $ 47,029 $ 57,616

ANIMAL SHELTER SUPERVISOR

ASR SUPERVISOR

CODE ENFORCEMENT INSPECTOR

CREW CHIEF

DEPARTMENT ANALYST

ENVIRONMENTAL SERVICES INSPECTOR

EXECUTIVE ASSISTANT

FACILITIES COORDINATOR

LABORATORY TECHNICIAN

PERMIT CLERK SUPERVISOR

SR. FACILITY SERVICES TECH

TRAFFIC TECHNICIAN II, SIGNALS

UTILITIES OPERATOR

219


N

-09

ACCOUNTANT II $ 18.76 $ 24.19 $ 29.64

ADMINISTRATIVE COORDINATOR $ 39,021 $ 50,315 $ 61,651

BUILDING INSPECTOR

CONSTRUCTION INSPECTOR

CONTRACT SERVICES COORDINATOR

ELECTRICIAN

EMERGENCY MANAGEMENT SPECIALIST

G.I.S. SPECIALIST

INFORMATION PROCESS TECHNICIAN

LEAD UTILITIES OPERATOR

MECHANIC

PLANS EXAMINER

PROJECT ANALYST

SANITARIAN

N-1

0

AUTOMOTIVE TECHNICIAN II $ 20.26 $ 26.33 $ 32.41

END USER SUPPORT SPECIALIST $ 42,141 $ 54,766 $ 67,413

LINE SUPERVISOR

SR. BUILDING INSPECTOR

SYSTEM ANALYST

WATER SERVICES SUPERVISOR

N-1

1

CRIME ANALYST $ 23.28 $ 30.26 $ 37.25

FIELD SUPERVISOR $ 48,422 $ 62,941 $ 77,480

FLEET SERVICES SUPERVISOR

INSTRUMENTATION & CONTROL TECHNICIAN

SR. CONSTRUCTION INSPECTOR

SR. CONTRACT INSPECTOR

SYSTEM ADMINISTRATOR

Effective October 1, 2013


220

Exempt Salary Structure FY14


FOR EXEMPT POSITIONS FY14


E-0

1

BUDGET ANALYST $ 19.66 $ 24.97 $ 30.28

COMMUNICATIONS SPECIALIST $ 40,893 $ 51,938 $ 62,982

CONTRACTS COORDINATOR

ECONOMIC DEVELOPMENT COORDINATOR

GRAPHICS COORDINATOR zzz

E-0

2

BUDGET & MANAGEMENT ANALYST $ 21.23 $ 26.97 $ 32.71

EVENT COORDINATOR $ 44,158 $ 56,098 $ 68,037

MANAGEMENT ASSISTANT II

PARKS STREETSCAPE & DEVELOPMENT COORDINATOR

PLANNER II

PRINCIPAL ACCOUNTANT

RECREATION COORDINATOR

SAFETY COORDINATOR zzz

E-0

3

ACCOUNTS PAYABLE SUPERVISOR $ 22.93 $ 29.13 $ 35.32

BILLING SUPERVISOR $ 47,694 $ 60,590 $ 73,466

CODE COMPLIANCE COORDINATOR

FACILITIES SERVICES SUPERVISOR

HR BUSINESS PARTNER

PRODUCER / VIDEOGRAPHER

PROGRAMMER ANALYST

RECORDS SUPERVISOR

RECRUITMENT & BUSINESS SERVICES ADMINISTRATOR

SR. BUDGET ANALYST

SR. PLANNER

STORM WATER COORDINATOR

WATER QUALITY SUPERVISOR

221



zzz E-

04

ACCOUNTING SUPERVISOR $ 24.77 $ 31.46 $ 38.14

ADMINISTRATIVE MANAGER $ 51,522 $ 65,437 $ 79,331

AIRPORT OPERATIONS SPECIALIST

CONTRACTS MANAGER

DEPUTY COURT ADMINISTRATOR

DEPUTY TREASURY MANAGER

ENGINEER I

FINANCIAL ANALYST

LEAD PROGRAMMER ANALYST

PUBLICATIONS MANAGER

REAL PROPERTY MANAGER

RECORDS MANAGER

USER SERVICES SUPERVISOR

WATER CONSERVATION MANAGER

WEBSITE MANAGER zzz

E-0

5

ANIMAL SERVICES MANAGER $ 26.75 $ 33.98 $ 41.20

BUSINESS RETENTION MANAGER $ 55,640 $ 70,678 $ 85,696

CODE COMPLIANCE MANAGER

COMMUNITY OUTREACH MANAGER

COMPLIANCE MANAGER

CONCIERGE MANAGER

ENGINEER II

EVENT PRODUCTION MANAGER

FACILITIES PROJECT MANAGER

FLEET SERVICES MANAGER

IT PROJECT MANAGER

LINE SERVICES MANAGER

PRINCIPAL PLANNER

PROJECT MANAGER

RECREATION CENTER MANAGER

RISK MANAGER

SR. SANITARIAN

SURFACE WATER CHIEF OPERATOR

TOURISM & MARKETING MANAGER

TRAFFIC OPERATIONS MANAGER

WATER RESOURCES MANAGER

222


zzz E-

06

AIRFIELD & FACILITIES MANAGER $ 28.88 $ 36.70 $ 44.49

CONSTRUCTION SERVICES ADMINISTRATOR $ 60,070 $ 76,336 $ 92,539

DEPUTY BUILDING OFFICIAL

DEPUTY CITY SECRETARY

ENGINEER III

ENVIRONMENTAL MANAGER

FIELD OPERATIONS MANAGER

IT OPERATIONS MANAGER

PARKS DEVELOPMENT MANAGER

PARKS SUPERINTENDENT

STREET/DRAINAGE SUPERINTENDENT

SURFACE WATER PLANT MANAGER

E-0

7

ASSISTANT CITY ATTORNEY $ 31.49 $ 40.00 $ 48.49

DEPUTY CITY ATTORNEY $ 65,499 $ 83,200 $ 100,859

FACILITY OPERATIONS MANAGER

HR MANAGER

IT MANAGER

MUNICIPAL COURT ADMINISTRATOR

PURCHASING MANAGER

SR. ENGINEER

TRAFFIC ENGINEERING & CONTROLS MANAGER

TREASURY MANAGER

WATER QUALITY MANAGER

zzz

E-0

8

ASSISTANT CITY ENGINEER $ 34.32 $ 43.60 $ 52.86

ASSISTANT DIRECTOR OF AVIATION $ 71,386 $ 90,688 $ 109,949

ASSISTANT DIRECTOR OF BUDGET & RESEARCH

ASSISTANT DIRECTOR OF COMMUNICATIONS

ASSISTANT DIRECTOR OF PARKS & RECREATION

ASSISTANT DIRECTOR OF PUBLIC WORKS

ASSISTANT DIRECTOR OF WATER UTILITIES

COMMUNITY DEVELOPMENT ADMINISTRATOR

FIRST ASSISTANT CITY ATTORNEY



223

Management & Elected Officials Salary Structure FY14


FOR MANAGEMENT & ELECTED OFFICIAL POSITIONS FY14


M-0

1

ASSISTANT TO THE CITY MANAGER $ 37.41 $ 47.52 $ 57.62

BUILDING OFFICIAL $ 77,813 $ 98,842 $ 119,850

CHIEF ACCOUNTANT

CITY SECRETARY

DIRECTOR OF BUDGET & RESEARCH

DIRECTOR OF COMMUNICATIONS

DIRECTOR OF EMERGENCY MANAGEMENT

DIRECTOR OF PLANNING & CODE SERVICES

DIRECTOR OF SUPPORT SERVICES

DIRECTOR OF TRANSPORTATION & LONG-RANGE PLANNING

M-0

2

CITY ENGINEER $ 45.92 $ 57.40 $ 68.88

DIRECTOR OF AVIATION $ 95,514 $ 119,392 $ 143,270

DIRECTOR OF ECONOMIC DEVELOPMENT

DIRECTOR OF HUMAN RESOURCES

DIRECTOR OF INFORMATION TECHNOLOGY

DIRECTOR OF PARKS & RECREATION

DIRECTOR OF PUBLIC AFFAIRS

DIRECTOR OF PUBLIC WORKS

DIRECTOR OF WATER UTILITIES

FIRE CHIEF

POLICE CHIEF zzz

M-0

3

ASSISTANT CITY MANAGER UNGRADED

CITY ATTORNEY

CITY MANAGER

EXECUTIVE DIRECTOR

MUNICIPAL COURT JUDGE

EO-1

COUNCIL MEMBER $ 692.16

(Monthly)

EO-2

MAYOR $ 1,384.32

(Monthly)

zzz Effective October 1, 2013

224

Fire Salary Structure FY14

CITY OF SUGAR LAND FIRE

FY14 SALARY STRUCTURE

Ran

ge Hourly Hourly Hourly

Annual Annual Annual

Job Title Minimum Midpoint Maximum Job Title

FIREFIGHTER

F-1

$15.50 $18.21 $20.93

(2912 Hours Annually) $45,136 $53,028 $60,948

FIRE DRIVER

F2F

$18.37 $21.13 $23.88

(2912 Hours Annually) $53,493 $61,531 $69,539

FIRE LIEUTENANT/EMERGENCY SERVICES

F3F

$20.91 $24.05 $27.18

(2912 Hours Annually) $60,890 $70,034 $79,148

FIRE INSPECTOR/INVESTIGATOR

F3G

$29.28 $33.67 $38.05

FIRE LIEUTENANT/ADMIN DIVISIONS

(2080 Hours Annually) $60,902 $70,034 $79,144

FIRE CAPTAIN/EMBERGENCY SERVICES

F4F

$24.07 $27.08 $30.09

(2912 Hours Annually) $70,092 $78,857 $87,622

FIRE CAPTAIN/ADMIN DIVISIONS

F4G

$33.71 $37.91 $42.13

(2080 Hours Annually) $70,117 $78,853 $87,630

BATTALION CHIEF/EMERGENCY SERVICES

F5F

$27.24 $29.96 $32.69

(2912 Hours Annually) $79,323 $87,244 $95,193

BATTALION CHIEF/ADMIN DIVISIONS

F5G

$38.13 $41.94 $45.77

ASSISTANT FIRE MARSHAL

(2080 Hours Annually) $79,310 $87,235 $95,202

ASSISTANT FIRE CHIEF

F6G

$41.99 $47.24 $52.49

(2080 Hours Annually) $87,339 $98,259 $109,179


225

Police, Detention & Dispatch Salary Structure FY14

CITY OF SUGAR LAND POLICE, DETENTION & DISPATCH

FY14 SALARY STRUCTURE

Hourly Hourly Hourly

Annual Annual Annual

Job Title Range Minimum Midpoint Maximum

PUBLIC SAFETY DISPATCHER - RECRUIT PTR

$15.95

$33,177

PUBLIC SAFETY DISPATCHER I - CERTIFIED PT1

$16.79 $18.89 $20.99

$34,922 $39,289 $43,654

PUBLIC SAFETY DISPATCHER II - CERTIFIED PT2

$18.89 $21.25 $23.61

$39,287 $44,203 $49,114

PSD SHIFT SUPERVISOR PT3

$22.25 $26.14 $30.04

$46,273 $54,379 $62,478

DEPUTY PS DISPATCH MANAGER PT4

$27.26 $32.03 $36.80

$56,693 $66,623 $76,546

PS DISPATCH MANAGER PT5

$32.71 $38.43 $44.16

$68,032 $79,943 $91,850

DETENTION OFFICER - RECRUIT PDR

$16.07

$33,434

DETENTION OFFICER - CERTIFIED PD1

$16.92 $20.30 $23.69

$35,195 $42,232 $49,271

POLICE OFFICER - RECRUIT P-1

$19.54

$40,644

POLICE OFFICER P-2

$23.83 $28.00 $32.17

$49,568 $58,241 $66,915

POLICE SERGEANTS P-3

$28.70 $33.01 $37.31

$59,688 $68,650 $77,605

POLICE LIEUTENANT P-4

$33.04 $37.17 $41.30

$68,728 $77,314 $85,904

POLICE CAPTAIN P-5

$37.37 $41.11 $44.84

$77,728 $85,503 $93,276

ASSISTANT CHIEF OF POLICE P-6

$41.16 $46.31 $51.45

$85,623 $96,314 $107,016


226

Schedule of Depreciation FY12

For FY14 Fire Fee Calculation

FLEET

2010 CHEVY TAHOE UNIT#136 12,263$

FIRE TRUCK UNIT#124 59,389

SPARTEN FIRE TRUCK UNIT#130 32,941

REHABILITATION TRAILER 5,341

2005 PUMPER UNIT#117 39,846

PIERCE 75'AERIAL UNIT#128 L2 67,203

2008 F450 UNIT#108 5,976

FIRE TRUCK 2008 CRIMSON PUMPER UNIT #131 62,330

INFLATABLE DIVE TEAM BOAT 669

FIRELIGHT SKID UNIT-UNIT#140 1,117

2012 GATOR UNIT# 139 1,747

CHEVY IMPALA UNIT#133 2,018

2008 FUSION UNIT#106 3,294

2010 FIRE TRUCK UNIT#137 66,350

GOLF CART-UNIT#168 1,473

2010 CRIMSON LADDER TRUCK 52,277

Total Fleet Depreciation - FY12 414,233$

CAPITAL

GAS GENERATOR 233$

GAS GENERATOR-ENGINE 5 233

AUDIO/VISUAL SYSTEM AT FIRE ADMIN 2,922

THERMAL IMAGING CAMERA 1,415

AIR PACK #42 190

AIR PACK #45 190

AIR PACK #43 190

AIR PACK #44 190

MOTOR HOLMATRO PERSONAL POWER PLANT 439

RESCUE TOOL HOLMATRO TELESCOPIC RAM 298

RESCUE TOOL HOLMATRO TELESCOPIC MINI-RAM 236

MOTOR HOLMATRO PERSONAL POWER PLANT 439

RESCUE TOOL HOLMATRO COMBINATION SPREADER CUTTER 298

RESCUE TOOL HOLMATRO HYDRAULIC CUTTER 9" 351

STORAGE CONTAINER 40' PORTABLE 77

AUX, GENERATOR FOR ALT. EOC 1,447

GAS LINE AT EOC- FOR EOC GENERATOR 130

GENERATOR (GAS)- FIRE ST #5 1,029

AMPLIFIERS-PD,FIRE(ALL TYPES),MICROPHONES,PA SYS 406

GENERATOR ELECTRICITY(BACK-UP) 1,000

IN CAR VIDEO 854

FLAG POLES FIRE #1 250

SCBA SYSTEM BREATHING COMPRESSOR 3,000

INDOOR SPRINKLER SYSTEM FIRE #1 2,933

COMPACT DUO PUMP 993

COMPACT DUO PUMP 993

SPREADERS 4242 856

SWITCH SWTFD101 CATALYST 3560E 1,007

AIRMASK TESTER 104

AED-9300E 129

AED-9300E 129

FIRE STATION #5 - AMPLIFIERS-PD,FIRE,PA SYSTEM 258

HF-TRANSCEIVER/KENWOOD TS-570DG 45

ANTENNA B/W ACS 30MGH 90 FT 16$228



ACCESSORIES FOR KENWOOD TRANSCEIVER 43$

ACCESSORIES FOR KENWOOD TRANSCEIVER 36

WORKSTATIONS(4) 1,339

HOSE TESTER (FD1) 365

CROSSTRAINER EFX 546 390

FIT TESTING MACHINE 662

TREADMILL 483

PRECOR TREADMILL C956 478



BREATHING AIR COMPRESSOR 935

BUNKER GEAR WASHER/EXTRACTOR 1,214


FIRE STATION #2 GENERATOR 2,736

GEAR WASHER/EXTRACTOR 1,176

THERMAL IMAGER CAMERA 744

THERMAL IMAGER CAMERA 479

SWITCH 3560E 1,899

MOBILE RADIO XTL5000 264


















PRECOR CROSSTRAINER C546 393

WASHER FOR BUNKER GEAR 1,021

ZETRON TRANSPONDER 265

WORKSTATIONS(4) 650

MOBILE WORKSTATION PCFD164 776

MOBILE WORKSTATION PCFD207 776

WORKSTATIONS(4) 650

Total Capital Depreciation- FY12 50,952$

229



BUILDING

1500-WATT TOWER 552$

750-WATT TOWER 552

750-WATT TOWER 552

A/C UNIT AT FIRE STATION #1 462

BUILDING CARPET REPLACEMENT 1,948

BUILDING FIRE#1 @ MATLAGE WAY 65,656

BUILDING RENOVATIONS 10,905

FIRE ADMIN BLDG RENOVATIONS 1,071

FIRE STATION # 5 2,654

FIRE STATION #2 BLDG 3,556



FIRE STATION #5 - SIDEWALK,PAVING,PARKING 1,026


FIRE STATION #5 BLDG -IMPROVEMENT 703

FS#6 ADMIN BLDG 15,404

FS#6 BLDG :ROOF 2,310

FS#6 BLDG INTERIOR:CARPET 505

FS#6 BLDG INTERIOR:COOLING/HEATING SYSTEM AIR CIRC 3,307

FS#6 BLDG INTERIOR:ELECTRICAL 4,500

FS#6 BLDG INTERIOR:SPRINKLER SYSTEM 2,425

FS#6 BLDG INTERIOR:TILE 168

FS#6 BLDG INTERIOR:WATER SYSTEM 5,350

FS#6 F&OI: LANDSCAPING(TREES,PLANTS,GARDENS) 550

FS#6 F&OI: PARKINF LOTS(STOPS,DRIVEWAYS,BARRIERS) 3,610

FS#6 F&OI: SIGNS 220

FS#6 F&OI:FENCING AND GATES,FLAGPOLE 165

GROUP OF CHAIN LINK FENCING 205

GROUP OF CONCRETE CURBING 170

GROUP OF CONCRETE CURBING 78

GROUP OF CONCRETE PAVING 16,700

HVAC CONTROL SYS @ FIRE ADMIN/ANNEX 4,255

HVAC UNIT W/ ELECTRONIC CONTROLS FIRESTATION#2 5,896

LIGHTING OUTDOOR 100

LIGHTING OUTDOOR 75

LIGHTING OUTDOOR 80

LIGHTING OUTDOOR - 4 @$250/EA 50

LIGHTING OUTDOOR -3@$250/EA 38

PAVEMENT LOT FIRE # 1 4,467

VEHICLE EXHAUST REMOVAL SYSTEM 11,949

VEHICLE EXHAUST REMOVAL SYSTEM 498

WATCHDOG MONITOR DEVICE 776

Total Building Depreciation - (not in calculations) - FY12 205,265$

DISPATCH

3 DISPATCH CONSOLES 14,574$

SYNERGY DISPATCH WORKSTATIONS(6) 36,697

POWER SUPPLY SYSTEM 2,634

DIGITAL RADIO CONSOLES(5) 116,988



Total Dispatch Depreciation - FY12 171,584$

230



CITY OF SUGAR LAND, TEXAS

NOTES TO FINANCIAL STATEMENTS (continued)

Note 4 – Capital Assets (continued)

Depreciation was charged to programs as follows:

General government $ 646,302

Administrative services 1,935,776

Public works 7,062,410

Parks and recreation 1,226,471

Community development 73,306

Public safety-Police 576,436

Public safety-Fire 670,450

In addition, depreciation on capital assets held by the City's internal service funds is

charged to various functions based on their usage of the assets 1,151,897

Total Governmental Activities $ 13,343,048

Water and wastewater $ 7,920,816

Airport 1,865,159

Surface Water 4,797

Total Business-Type Activities $ 9,790,772

Reconciliation of Depreciation

Total of Depreciation from Detailed Listing 842,034$

To Reconcile with CAFR: Less Dispatch (171,584)

CAFR Depreciation for Fire Department 670,450

To Calculate Fire Fees: Add Dispatch 171,584

To Calculate Fire Fees: Subtract Building Depreciation (205,265)

Total Depreciation Allocated for Fire Costs 636,769$

231

Glossary

A

ACCOUNT: An accounting unit established to record expenditures or revenues by detailed categories.

ACCOUNTS PAYABLE: A liability account reflecting amounts on an open account owing to private persons or

organizations for goods and services received by a government (but not including amounts due to other funds of

the same government or to other governments).

ACCOUNTS RECEIVABLE: An asset account reflecting amounts owning to open accounts from private persons or

organizations for goods and services furnished by a government.

ACCRUAL ACCOUNTING: A basis of accounting in which debits and credits are recorded at the time they are

incurred as opposed to when cash is actually received or spent.

AD VALOREM: Refers to the tax assessed against real (land and buildings) and personal (equipment and furniture)

property.

AGENDA: A formal listing of items to be discussed during a public meeting. Agendas for public meetings are posted

72 hours in advance, in compliance with the open meetings act.

AGENDA REQUEST: A formal summary of a topic to be discussed during an open meeting. Included in the request

are the proceeding, clearances, appropriation and action required, and an executive summary and attachments to

explain the topic.

ANNEX: Refers to a portion of the City’s Emergency Operations Plan.

APPROPRIATION: A legal authorization granted by City Council to make expenditures and incur obligations for

designated purposes.

ARBITRAGE: The interest earnings derived from invested bond proceeds or debt service fund balances.

ARCIMS: The Internet map server allowing users to interact with maps on the City’s web page.

ASSESSED VALUATION: A valuation set upon real estate of other property by a government as a basis for levying

taxes.

ASSETS: Property with monetary value owned by the City.

AUDIT: A systematic examination of resource utilization concluding in a written report. It is a test of management’s

internal accounting controls and is intended to accomplish the following:

• Ascertain whether financial statements fairly represent financial position and results of operations

• Ascertain whether transactions have been recorded accurately and consistently, and

• Identify areas for possible improvements in accounting practices and procedures.

B

BALANCE SHEET: The basic financial statement that discloses the assets, liabilities, and equities of an entity at a

specified date in conformity with GAAP.

BASE BUDGET: Funding required meeting current service levels.

232

BENEFIT BURDEN: The ratio of the cost of defined benefits to the base payroll of employees eligible to receive

benefits.

BOND: A written promise to pay a specified sum of money, called the face value or principal amount, at a specified

date or dates in the future, called the maturity date(s), together with periodic interest at a specified date.

BOND REFERENDUM: A proposal to be voted on by registered voters within the City regarding the sale of bonds for

which ad valorem taxes are pledged for repayment.

BRAZOS RIVER AUTHORITY: An agency of the State of Texas whose mission is to develop and maintain the resources

of the Brazos River basin. The BRA has operated a wastewater treatment plant that serves the City since 1975.

BUDGET: A plan of financial operation embodying an estimate of proposed expenditures for a given period and the

proposed means of financing them. For a local government, a budget is a legal restriction on expenditures.

C

CAPITAL IMPROVEMENT PROGRAM / PROJECT (CIP): Projects that purchase or construct capital assets. Typically a

capital project encompasses a purchase of land and/or the construction of a building or facility.

CAPITAL OUTLAYS: Expenditures that result in the acquisition of or addition to fixed assets that are individually

priced more than $5,000, per the City’s capitalization policy.

CARRYOVER: Expenditures budgeted in one year for materials, equipment, programs, etc but not spent until the

following fiscal year. Funding for non-recurring expenditures can carry over to the following fiscal year if approved

by the City Manager and City Council. City Council formally amends the budget to approve carryover funding.

Revenues can also carryover if they were anticipated in one fiscal year but not received until the following year.

CERTIFICATE OF OBLIGATION (CO): A debt instrument that is issued by the City and has the same legal status as a

general obligation bond. Proceeds from the issuance of the certificates may be used for construction of public

works; purchase of materials, supplies, equipment, machinery, builds, land, and right a ways for authorized needs

and purposes; or payment of contractual obligations for professional services. However, certificates of obligation

are not authorized by the voters.

CONSUMER PRICE INDEX (CPI): The monthly data on the changes in the prices paid by urban consumers for a

representative basket of goods and services.

CONTINGENCY: An amount of money set aside for unforeseen incidents.

CONTRACTUAL SERVICES: The costs related to services performed for the City by individuals, businesses, or utilities.

COST: The amount of money or other consideration exchanged for property or services. Costs may be incurred even

before money is paid; that is, as soon as a liability is incurred. Ultimately, however, money or other consideration

must be given in exchange.

CURRENT ASSETS: Assets which are available or can be made readily available to finance current operations or to

pay current liabilities. Current assets also include those which will be used up or converted into cash within one

year. Some examples are cash, temporary investments, and taxes receivable which will be collected within one

year.

CURRENT LIABILITIES: Debt or other legal obligation arising out of transactions in the past which must be liquidated,

renewed, or refunded within one year.

233

D

DEBT SERVICE: A cost category that typically reflects the repayment of short-term (less than five years) debt

associated with the acquisition of capital equipment.

DEFICIT: The excess of expenditures over revenues during an accounting period; or, in the case of Enterprise and

Intra- governmental Service Funds, the excess of expense over income during an accounting period.

DELINQUENT TAXES: Taxes remaining unpaid on or after the date on which a penalty for nonpayment is attached.

DEPARTMENT: A section of the total organization that is comprised of Divisions and is under the oversight of an

Executive Director, Assistant City Manager or City Manager.

DEPARTMENT HEAD: A mid-management employee charged with oversight of one or more programs. Department

Heads may report to an Executive Director, Assistant City Manager or the City Manager.

DEVELOPER REIMBURSEMENT: Payment to a private developer for installation of public infrastructure. The

developer typically installs infrastructure such as water and sewer utilities, traffic signals and streets & sidewalks.

The City or MUD can reimburse the developer through issuance of debt.

DIVISION: A subsection of a Department that carries out a specific line of work assigned to the Department. A

Division may have more than one Program.

E

EFFECTIVE TAX RATE: When compared to the same property, the tax rate that produces the same effect in terms of

the total amount of taxes as compared to the prior year, based on the value of properties taxed in both years.

ENCUMBRANCES: Commitments related to unperformed contracts for goods or services used in budgeting.

Encumbrances are not expenditures or liabilities, but represent the estimated amount of expenditures ultimately to

result if unperformed contracts in process are completed.

ENHANCEMENTS: Funds that the City has earmarked for a new service not provided in the past, or allowing an

increase in the level of service already provided.

ENTERPRISE FUND: A fund established to account for operations that are financed and operated in a manner similar

to private business enterprises where the intent of the governing body is that the costs if providing goods or

services the general public on a continuing basis be financed or recovered primarily through user charges.

EXECUTIVE DIRECTOR: An upper management employee charged with oversight of one or more departments.

Executive Directors participate in high-level policy and strategic decision-making and report either to an Assistant

City Manager or the City Manager.

EXEMPT: Personnel not eligible to receive overtime pay and who are expected to put in whatever hours are

necessary to complete job assignments. The respective Department Head, as partial compensation for overtime

hours worked, may allow compensatory time off.

EXPENDITURES: Decreases in net financial resources. Expenditures include current operating expenses, which

require the current or future use of net current assets, debt service, and capital outlays.

EXTRATERRITORIAL JURISDICTION (ETJ): The land bordering a City’s limits that the City has limited control over but

does not furnish City services to nor collect ad valorem taxes from. This is an area outside of City limits that is

subject to annexation.

234

F

FISCAL YEAR: A 12-month period to which the annual operating budget applies and at the end of which a

government determines its financial position and the results of its operations. The City of Sugar Land’s fiscal year

begins each October 1 and ends the following September 30. The term fiscal year 2014 connotes the fiscal year

beginning October 1, 2013 and ending September 30, 2014.

FIXED ASSETS: Assets of a long-term character which are intended to continue to be held or used, such as land,

buildings, improvements other than buildings, and machinery and equipment.

FIXED BASE OPERATOR (FBO): An operating company providing customer services including fuel and line service

personnel at an airport.

FRANCHISE: A special privilege granted by a government permitting the continuing use of public property such as,

City rights-of-way.

FULL-TIME EQUIVALENT (FTE): One full-time equivalent works 2,080 hours a year; a person working 1,040 hours per

years is equivalent to 0.5 FTE.

FUND: A fiscal and accounting entity with a self balancing set of accounts recording cash and other financial

resources, together with all related liabilities and residual equities or balances, and changes therein, which are

segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with

special regulations, restrictions, or limitations.

FUND BALANCE: The difference between governmental fund assets and liabilities. Also referred to as fund equity.

FUND BALANCE POLICY: A minimum fund balance that is required to be kept in reserve as defined in the Financial

Management Policy Statements. Fund balances over the policy requirement may be appropriated in the budget.

G

GENERAL LEDGER: A book, file, or other device, which contains the accounts needed to reflect the financial position

and the results of operations of an entity. In double entry bookkeeping, the debits and credits in the general ledger

are equal; therefore, the debit balances equal the credit balances.

GENERALLY ACCEPTED ACCOUNTING PRINCIPALS (GAAP): Uniform minimum standards and guidelines used for

financial accounting and reporting as set forth by the Governmental Accounting Standards Board (GASB).

GENERAL OBLIGATION (GO) BONDS: Bonds for the payment of which the full faith and credit of the issuing

government are pledged. In issuing its general obligation bonds, the City of Sugar Land pledges to levy whatever

property tax is needed to repay the bonds for any particular year. Bonds cannot be issued without voter approval

and are usually issued with maturities between 15 and 30 years.

GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB): A governing board set up to establish and improve

standards of state and local governmental accounting and financial reporting that will result in useful information

for users of financial reports and guide and educate the public, including issuers, auditors, and users of those

financial reports.

GOVERNMENTAL FUNDS: Those funds through which most governmental functions typically are financed. The

acquisition, use, and financial resources and the related current liabilities are accounted for through governmental

funds (General, Special Revenue, Capital Projects, and Debt Service Funds).

235

GROUNDWATER: Water obtained by drilling a well and pumping water from below the surface, typically at depths

of thousands of feet. Pumping of groundwater is a contributing factor to subsidence.

H

HOMEOWNERS’ ASSOCIATION (HOA): A group of property owners in a residential area, in which membership may

be mandatory by deed restriction.

HOUSTON-GALVESTON AREA COUNCIL (HGAC): A voluntary association of counties, cities, independent school

districts, and soil and water conservation districts in the Gulf Coast State Planning Region of Texas. H-GAC serves

almost 150 local governments, and its region includes about 4 million people in an area of about 12,500 sq. miles.

I

ISO RATING: The Insurance Service Office (ISO) performs surveys to assist insurance organizations with setting up

the insurance ratings for the communities. The ISO will perform a survey to assign a public protection grade to each

fire department, which is used in the development of insurance rates for all properties within the protected area.

Grading starts at 1, which is the best possible score and ends at 10 which is considered unacceptable.

INTERGOVERNMENTAL REVENUE: Grants, entitlements and cost reimbursements from another governmental

entity.

INVESTMENT: Securities and real estate purchased and held for the production of income in the form of interest,

dividends, rentals or base payments.

K

KEY PERFORMANCE INDICATORS (KPI): Specific quantitative and qualitative measures of work performed as a

productivity indicator of the program.

L

LANDSCAPE COST SHARE PROGRAM: A program that credits private funds that are used to irrigate public areas,

specifically right-of-ways along arterials and state roads. Secondary goals of the program include helping to reduce

peak water demand by limiting the times participants in the program can irrigate and promoting water

conservation by means of rain sensors and well managed timers and management of irrigation systems.

LEASE/PURCHASE: A financing tool utilized to fund large capital outlays where the City may not have cash available

immediately for purchase. The arrangement allows the City use of the item while payments are being made. A lien

is placed on the item purchased and upon completion of lease payments, typically 5-7 years, the City gains

ownership of the assets.

LEVEE IMPROVEMENT DISTRICT (LID): A special district with authority to levy ad valorem taxes that is used to

improve flood control within its boundaries through the use of levies.

LEVY: The City Council has authority to impose or collect taxes, special assessments, or service charges.

LOCAL LAW ENFORCEMENT BLOCK GRANT: A grant program of the Department of Justice in which a local law

enforcement agency is given a specified amount of funding to accomplish a goal.

LONG TERM DEBT: Debt with a maturity of more than one year after the date of issuance.

M

MAINTENANCE: The upkeep of physical properties in condition for use or occupancy. Examples are the inspection

of equipment to detect defects and the making of repairs.

236

MODIFIED ACCRUAL ACCOUNTING: The basis of accounting in which revenues are recognized when they become

measurable and available to finance expenditures of the current period. Expenditures are recognized when the

goods are services are received.

MUNICIPAL UTILITY DISTRICT (MUD): A special district whose purpose is to provide water and sewer services to the

residences and businesses within its boundaries. The district has ad valorem taxing power and can issue bonds to

pay for construction and improvements to the district’s system. Districts are typically established in unincorporated

areas, but can also lie within the boundaries of one or more cities.

N

NON-CAPITAL ASSETS: Expenditures that result in the acquisition of or addition to assets that are individually priced

$2,500 to $5,000, per the City’s capitalization policy. These items are not added to the fixed assets, but are tracked

for inventory purposes.

NON-EXEMPT: Personnel eligible to receive overtime pay when overtime work has been authorized or requested.

O

OPERATING BUDGET: Plans of current expenditures and the proposed means of financing them. The annual

operating budget is the primary means by which most of the financing, acquisition, spending, and services delivery

activities of the City are controlled, and are required by state law.

ORDINANCE: A formal legislative enactment by the governing board of a municipality that has the full force and

effect of law within the boundaries of the municipality to which it applies so long as it is not in conflict with any

higher form of law. Revenue raising measures, such as the imposition of taxes, special assessments, and service

charges, universally require ordinances.

P

PART I CRIMES: Crimes such as homicide, sexual assault, robbery, aggravated assault, burglary, larceny, auto theft

and arson.

PERSONNEL SERVICES: The costs associated with compensating employees for their labor (salaries, wages,

insurance, payroll taxes, and retirement contributions).

PROGRAM: A subset of a Department in which expenditures are focused on a primary function of work to be

performed.

PROJECTION: Anticipated total for the current fiscal year. During the budget process, the City projects expected

revenues and expenditures through the remainder of the fiscal year to gain a better picture of the City’s finances.

These projections are adopted as the revised budget during the budget adoption process.

PROPERTY TAX: Taxes levied on all real and personal according to the property’s valuation and the tax rate, in

compliance with State Property Tax Code.

PUBLIC FUNDS INVESTMENT ACT: A law that governs the investment of government funds in Texas. Under this law,

specific parameters are set for Texas cities, requiring them to adopt an investment policy and to designate an

investment officer who is required to attend an approved training course. The act, first adopted in 1995 and most

recently amended in 2003, also limits the types of investments that can be made and requires quarterly reporting

of investment activity to the governing body.

PURCHASE ORDER: A document that authorizes the delivery of specified merchandise or the rendering of certain

services and the making of a charge for them.237

R

RATING: The credit worthiness of an entity as evaluated by independent agencies.

REPLACEMENT COST: The cost as of certain date of a property that can render similar service (but which need not

be of the same structural form) as the property to be replaced.

RESERVE: An account used to indicate that a portion of a fund’s balance is legally restricted for a specific purpose

and is, therefore, not available for general appropriation.

REVENUE BONDS: Legal debt instruments which finance public projects for such services as water or sewer.

Revenues from the public project are pledged to pay principal and interest of the bonds. In Texas, revenue bonds

may or may not be authorized by public referenda.

REVENUES: Increases in governmental fund types, net current assets from other than expenditure refunds and

residual equity transfers.

RIGHT-OF-WAY: The area immediately adjacent to a City’s roadway or drainage channel.

S

SALES TAX: A state tax of 6.25% is imposed on all retail sales, leases and rentals of most goods, as well as taxable

services. Texas cities and counties have the option of imposing additional local sales taxes for a combined total of

state and local taxes of 8.25%.

SERVICE LEVEL STANDARD: The expected outcome for a service that is provided. Can include minimum staffing,

hours of operation, or outcome goals.

SPECIAL ASSESSMENT: A compulsory levy made against certain properties to defray part or all of the cost of a

specific improvement or service deemed to primarily benefit those properties.

SPECIAL REVENUE FUND: A fund used to account for and report the proceeds of specific revenue sources that are

restricted or committed to expenditure for specified purposes other than debt service or capital projects. The term

“proceeds for specific revenue sources” establishes that one or more restricted or committed revenues should be

the foundation for a special revenue fund.

STRUCTURAL BALANCE: A term used to define a budget that includes recurring revenues greater than or equal to

recurring expenditures.

SUBSIDENCE: A gradual settling or sudden sinking of the Earth’s surface owing to subsurface movement of earth

materials. Land subsidence occurs when there is a loss of support below ground such as when water is taken out of

the soil and the soil collapses. This situation occurs throughout the United States, but has had more impact in

California, Texas, and Arizona.

SUGAR LAND 101: A municipal government course sponsored by the City, educating future City leaders in the

workings of the Sugar Land Municipal Government.

SUGAR LAND DEVELOPMENT CORPORATIONS: Corporations that are financed by additional sales taxes approved by

the voters. State law allows the City to collect this sales tax to assist in the promotion, enhancement, and

development on behalf of the City.

SUGAR LAND TOWN SQUARE DEVELOPMENT AUTHORITY: A local government corporation created by the City for

the sole purpose of carrying out the necessary tasks to accomplish the Town Square project.

238

SUPPLIES: A cost category for minor items (individually priced at less than $500) required by departments to

conduct their operations.

SURFACE WATER: Drinking water can come from either ground water sources (via wells) or surface water sources

(such as rivers, lakes, and streams). Nationally, most water systems use a ground water source (80%), but most

people (66%) are served by a water system that uses surface water. Large metropolitan areas tend to rely on

surface water, whereas small and rural areas tend to rely on ground water.

T

TAX LEVY: The total amount to be raised by general property taxes for purpose specified in the Tax Levy Ordinance.

TAX RATE: The amount of tax levied for each $100 of taxable valuation. The tax rate multiplied by the taxable

valuation equals the tax levy.

TAXES: Compulsory charges levied by a government for the purpose of financing services performed for the

common benefit. This term does not include specific charges made against particular persons or property for

current or permanent benefits such as special assessments. Neither does the term include charges for services

rendered only to those paying such charges as, for example, sewer service charges.

TEXAS COMMISSION ON LAW ENFORCEMENT OFFICERS STANDARDS AND EDUCATION (TCLEOSE): A commission

that allocates funds each year to public safety agencies in Texas earmarked for peace officer training based on the

number of peace officers on staff for each agency.

TEXAS DEPARTMENT OF TRANSPORTATION (TxDOT): A state agency that provides funding, with a local match, for

improvement of state highways within the City limits.

U

USER FEES: The payment of a fee for direct receipt of a public service by the party benefiting from the service.

W

WATER CONTROL IMPROVEMENT DISTRICT (WCID): A special purpose district established to provide water and

sewer facilities and services within the district. The District has taxing authority separate from any other taxing

authority, and may, subject to voter approval, issue an unlimited amount of bonds and levy an unlimited rate of tax

in payment of such bonds.

Y

YIELD: rate earned on an investment based on the cost of the investment, the par value of the investment, plus

interest to be earned to maturity, and less any accrued interest.

239

Acronyms

A

AED: Automated External Defibrillator ADA: Americans with Disability Act AFIS: Automated Fingerprint Identification System C

CAC: Community Action Center CAFR: Comprehensive Annual Financial Report CDBG: Community Development Block Grant CID: Criminal Investigation Division CIP: Capital Improvement Program CO: Certificate of Obligation CPR: Cardiopulmonary Resuscitation D

DEM: Department of Emergency Management DPS: Department of Public Safety E

EMS: Emergency Medical Service EOC: Emergency Operations Center EPA: Environmental Protection Agency ETJ: Extraterritorial Jurisdiction F

FAA: Federal Aviation Administration FBISD: Fort Bend Independent School District FBO: Fixed Base Operator FEMA: Federal Emergency Management Agency FMPS: Financial Management Policy Statements FTE: Full-time Equivalent FY: Fiscal Year G

GAAP: Generally Accepted Accounting Principals GASB: Governmental Accounting Standards Board GFOA: Government Finance Officers Association GIS: Geographic Information Systems GRP: Groundwater Reduction Plan H

H-GAC: Houston - Galveston Area Council HAZ-MAT: Hazardous Materials K

KSLB: Keep Sugar Land Beautiful L

LID: Levee Improvement District LLEBG: Local Law Enforcement Block Grant

M

M&O: Maintenance and Operations MG: millions of gallons MGD: millions of gallons per day MSA: metropolitan statistical area MUD: Municipal Utility District

O

O&M: Operations and Maintenance

P

PEG: Public Education Grant PER: Preliminary Engineering Report PM: Preventative Maintenance PO: Purchase Order R

RFP: Request for Proposal RFS: Request for Services ROW: Right-of-Way S

SCADA: Supervisory Control and Data Acquisition SLDC: Sugar Land Development Corporation SL4B: Sugar Land 4B Corporation SPA: Strategic Partnership Agreement STEP: Selective Traffic Enforcement Program SWAT: Special Weapons and Tactics T

TCEQ: Texas Commission of Environmental Quality. The name changed from TNRCC effective September 1, 2002 TEEX: Texas Engineering Extension Service TMRS: Texas Municipal Retirement System V

VOIP: Voice over Internet Protocol W

WCID: Water Control Improvement District

240

fy14 total budget

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