CITY OF ARLINGTON 2018 PROPOSED BUDGET City of Arlington FY 2018 - - PowerPoint PPT Presentation

2018 PROPOSED BUDGET

CITY OF ARLINGTON

City of Arlington FY 2018 Proposed budget

OVERVIEW

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

City of Arlington FY 2018 Proposed budget

BUDGET DEVELOPMENT PROCESS

• Comprehensive Financial Forecast
• Department reviews with CMO
• All items considered included in Budget

Document (Other Budget Information)

• Reconciliation of Positions (adds, deletes,

reorganizations)

City of Arlington FY 2018 Proposed budget

FY 2018 BUDGET

• Balanced and in accordance with City’s

Financial Principles

• Advance Priorities while maintaining Core

Services

• Addresses employee compensation (second

year of three-year plan)

• Targeted investments in new technology &

public safety

• Addresses Civil Service
• Tax rate of $0.6398, a half-cent reduction in

the tax rate

City of Arlington FY 2018 Proposed budget

BEST PRACTICES

City of Arlington FY 2018 Proposed budget

CITY CONTRIBUTIONS TO THE STATE

• Sales Tax Service Fee - $2.05M
• Court Fines - $4.7M
• Payments to Other Agencies - $483k

City of Arlington FY 2018 Proposed budget

Total = $7.2M

FAVORABLE TAX POLICY

City of Arlington FY 2018 Proposed budget General Homestead Over 65 Disabled Person Tax Ceiling for Over 65 Vet1 Vet2 Vet3 Vet4 Minimums and Maximums Authorized Up to 20% of appraised value, must be worth at least $5,000 At least $3,000; no max established At least $3,000; no max established Local Officials Authorized or Not Authorized 5,000 7,500 10,000 12,000 Arlington 20% $60,000 $60,000 Authorized 5,000 7,500 10,000 12,000 Minimums and Maximums Authorized Arlington Mandated Veteran Exemptions Local Option Exemptions Authorized Business Exemptions RESIDENTIAL COMMERCIAL Freeport Abatements Authorized Authorized Local Officials Authorized or Not Authorized Local Officials Authorized or Not Authorized

CITY COMPARISONS

WORKI NG T OGET HER T O MA KE A RLI NGTON B ET T ER

City of Arlington FY 2018 Proposed budget

OTHER CITY COMPARISONS

City of Arlington FY 2018 Proposed budget $46 $49 $56 $60 $66 $67 $74 $75 $85 $95 $99 $124 $125 $138 $230

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

Mesquite El Paso Arlington Fort Worth San Antonio Grand Prairie Corpus Christi Mansfield Dallas Carrollton Irving Richardson Plano Austin Southlake

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

Average: $93 64.5 66.9 71.3 73.9 76.3 79.1 79.2 81.4 82.9 89.9 97.7 99.6 122.3 126.9 151.0

• 20

40 60 80 100 120 140 160

Carrollton Arlington Grand Prairie San Antonio Mesquite Mansfield Fort Worth Irving Plano El Paso Richardson Corpus Christi Dallas Southlake Austin

FY 2017 Employees per 10,000 Citizens

Average: 90.9

OTHER CITY COMPARISONS

City of Arlington FY 2018 Proposed budget $561 $613 $685 $716 $748 $759 $762 $767 $768 $946 $965 $1,062 $1,076 $1,171 $1,301

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

El Paso Arlington Grand Prairie Corpus Christi Carrollton Mansfield San Antonio Fort Worth Mesquite Dallas Irving Austin Plano Richardson Southlake

FY 2017 General Fund Expenditures per Capita

Average: $860 $314 $360 $369 $373 $447 $447 $498 $535 $572 $591 $598 $608 $664 $775 $1,063 $0 $200 $400 $600 $800 $1,000 $1,200 Mesquite Arlington San Antonio El Paso Grand Prairie Corpus Christi Fort Worth Mansfield Carrollton Irving Plano Austin Dallas Richardson Southlake

FY 2017 Tax Levy Per Capita

Average: $548

OTHER CITY COMPARISONS

City of Arlington FY 2018 Proposed budget

OTHER CITY COMPARISONS, SWORN STAFF

PER 10,000 POPULATION

City of Arlington FY 2018 Proposed budget

OTHER CITY COMPARISONS, SWORN STAFF

PER 10,000 POPULATION

City of Arlington FY 2018 Proposed budget

OTHER CITY COMPARISONS,

STAFF PER 10,000 POPULATION

City of Arlington FY 2018 Proposed budget

OTHER CITY COMPARISONS,

STAFF PER 10,000 POPULATION

City of Arlington FY 2018 Proposed budget

OTHER CITY COMPARISONS,

STAFF PER 10,000 POPULATION

City of Arlington FY 2018 Proposed budget

BUDGET AND SERVICE HIGHLIGHTS

WORKI NG T OGET HER T O MA KE A RLI NGTON B ET T ER

City of Arlington FY 2018 Proposed budget

RESULTS

• Average number of days from initial code

complaint to first action: 2.07 in FY 2016, 1 estimated for FY 2017

• Hangar Occupancy Rate: 80% in FY 2016, 95%

estimated for FY 2017

• Capital Investment generated through OED

efforts: $32M in FY 2016, $200M estimated in FY 2017

• APD YouTube Channel Views: 2.2M in FY 2016,

4.5M estimated for FY 2017

• Employee Turnover (Non-sworn): 9.2% in FY

2016, 8.6% estimate for FY 2017

• Debt Ratios Below Target

City of Arlington FY 2018 Proposed budget

BUDGET BALANCING STRATEGIES

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

City of Arlington FY 2018 Proposed budget

INFRASTRUCTURE MAINTENANCE DEBT ISSUANCE

• IT Infrastructure ($1,975,000)
• Building Maintenance ($2.4)

Total: $4.4M

FY 2018 BUDGET

WORKI NG T OGET HER T O MA KE A RLI NGTON B ET T ER

City of Arlington FY 2018 Proposed budget

ALL FUNDS - OPERATING POSITIONS

CITY REVENUES BY FUND

CITY EXPENDITURES BY FUND

SUMMARY OF EXPENDITURE CHANGES

GENERAL FUND BUDGET BY DEPARTMENT

GENERAL FUND EXPENDITURES

GENERAL FUND POSITIONS

GENERAL FUND REVENUE CHANGES

• Ad Valorem revenue increase of 7.6%
• Reduction in rate
• TIRZ 4 early termination
• Increase in General Fund revenue of $6.9M in FY 2018

budget

• Anticipates September bill valuation change and
• ngoing impact of tax litigation settlements
• Sales Tax Revenue
• FY 2018 General Fund sales tax revenue is projected to

be $62.8M, which is $2.4M above the FY 2017 budget

• 4% growth
• Other Revenues
• Municipal Court down $1.3M
• Franchise Fees down $1.8M
• Permits, plan & plat review fees up $1.7M
• Interest income growth of $452k

GENERAL FUND REVENUES

PROPERTY TAX BASE

SALES TAX REVENUE TRENDS

Through May, sales tax revenue in the General Fund is $100,166 under the weighted monthly budget amount for the year to date. Receipts are up from the prior year in 10 of the last 12 months. Through May, receipts are 3.8% above what the City received last year.

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

than the 155,484 citations filed in 2009.

60,000 80,000 100,000 120,000 140,000 160,000 180,000 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Estim. FY 2018 Estim.

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

Revenues, in $ hundreds Citations

PROPERTY TAX RATES

COMPENSATION & BENEFITS

WORKI NG T OGET HER T O MA KE A RLI NGTON B ET T ER

City of Arlington FY 2018 Proposed budget

COMPENSATION PLAN YEAR 2

Proposed compensation increase for all funds = $6.8M

Job Family Year 2 Increase General Fund Cost Engineering 9.5% 104,508 Information Technology 8.6% 343,969 Admin/Clerical 7.9% 465,823 Management Professional 7.2% 1,509,179 Technical/Craft 5.8% 642,239 Crime Scene 5.8% 31,153 Job Family Year 2 Increase General Fund Cost Police Officer 4.6% 1,310,282 Police Sgt 5.7% 348,018 Police LT 5.0% 91,948 Firefighter 5.3% 414,956 Fire LT 5.1% 188,791 Fire Captain 4.3% 60,361 Deputy Chief/Battalion Chief 4.3% 11,103 Apparatus Operator 5.3% 229,589 Fire Prevention 5.3% 39,658 Total $5,791,577

2018 Employee Rate Projections (+2.7%)

HDHP High Deductible Health Plan 2017 Rate 2018 Rate 2018 $ Difference Pay Period (Annual) Employee Only $12.81 $13.16 $0.35 ($9.10) Employee + Spouse $54.18 $55.64 $1.46 ($37.96) Employee + Child(ren) $21.35 $21.93 $0.58 ($15.08) Employee + Family $76.10 $78.16 $2.06 ($53.56) EPO (Exclusive Provider Organization) 2017 Rate 2018 Rate 2018 $ Difference Pay Period (Annual) Employee Only $28.50 $29.27 $0.77 ($20.02) Employee + Spouse $120.57 $123.83 $3.26 ($84.76) Employee + Child(ren) $71.28 $73.21 $1.93 ($50.18) Employee + Family $169.31 $173.88 $4.57 ($118.82)

TMRS

• Funded full $247,298 increase, not

phased in

• Rate increase from 15.73% to 15.94%
• Amortization Period from 20.4 years

to 19.6 years

• Increased funded ratio 86.5% to

86.6%

TMRS CONTRIBUTION RATES

TMRS NET PENSION LIABILITY

OPEB

COUNCIL PRIORITIES

WORKI NG T OGET HER T O MA KE A RLI NGTON B ET T ER

City of Arlington FY 2018 Proposed budget

RECURRING FUNDING SUMMARY - GENERAL FUND

Category Amount Mandates & Contractual Increases $493K Compensation & Benefits $6.4M Public Safety $961K Priorities & Needs $596K IT Projects $400K Total $10.44M

• 55 deferred requests, $10.9M, 32 positions

COUNCIL PRIORITIES – HIGHLIGHTS

Champion Great Neighborhoods

• Neighborhood Matching Grant

Program ($142,000)

• Entertainment District Maintenance

($32,000)

• Arts Funding ($100,000)
• Johnson Cemetery ($30,000)

COUNCIL PRIORITIES – HIGHLIGHTS

Enhance Regional Mobility

• Transportation Services ($131,500)
• Milo Pilot Project ($72,700)
• Signal Performance Evaluation System

($59,000)

COUNCIL PRIORITIES – HIGHLIGHTS

Invest in Our Economy

• Hotel & Convention Center Expansion Feasibility

Study ($125,000)

• Downtown Master Plan ($200,000)
• Continue Gateway Sign Projects ($400,000)
• Park & Ride Canopy/Signage ($200,000)
• Development Process Improvements ($176,500)
• Convention and Event Services Investments

($932,600)

COUNCIL PRIORITIES – HIGHLIGHTS

Put Technology to Work

• Software Maintenance ($143,000)
• Department Technology Projects ($1.4M)
• Police Mobile Data Computers
• CAD Upgrade
• GIS Maintenance Tools Update
• Fire EOC Video System Upgrade
• City Website Rebuild
• Electronic Plan Review
• Radio and CAD Maintenance Increase

($85,500)

COUNCIL PRIORITIES – HIGHLIGHTS

Support Quality Education

• AISD School Resource Officer

($109,500)

• Downtown Library Opening

($150,000)

• City Employee Education Assistance

($50,000)

CORE SERVICES – HIGHLIGHTS

Public Safety

• Defensive Tactics Coordinator

($110,000)

• Jail Staffing (5 positions, $271,000)
• Citation Device Maintenance

($81,000)

• Increased Staffing for Stations 1&9

(position trade, $55,500)

CORE SERVICES – HIGHLIGHTS

Public Safety

• 2017 COPS Hiring Grant Cash Match

($465,600)

• Fire Heavy Fleet Replacement

($1.3M)

• Police Cost of Service Increases

($426,455)

• City Hall & Library Security ($150,000)

CORE SERVICES – HIGHLIGHTS

Culture / Recreation / Education

• New Parks Development O&M

Funding ($86,000)

• Reopen Ditto Golf Couse ($550,000)

CORE SERVICES – HIGHLIGHTS

Financial / Economic Development

• Compensation Study Year 3 of 3

($46,200)

• HRIS Specialist ($101,000)
• ED Financial Consultant ($10,000)
• Employee Wellness Clinic ($1M)

CORE SERVICES – HIGHLIGHTS

Infrastructure

• Out of Life Fleet Replacements

($885,000)

• Landfill Professional Services ($25,000)
• Fleet Shop Site Assessment ($50,000)

OTHER FUNDS

WORKI NG T OGET HER T O MA KE A RLI NGTON B ET T ER

City of Arlington FY 2018 Proposed budget

CONVENTION & EVENT SERVICES PROGRAM CHANGES

• Revenues are $709k higher than FY17
• Hotel Occupancy Tax up $579K
• Convention Center Revenues up $130K
• FY 2018 Expenditures
• Recurring New Expenses $150K and include
• Funding for ACVB $50K
• Funding for Cultural Tourism Council $50K
• Funding Arts Grants $50k
• One-time Expenses $1.1M and include
• Chiller & Pump Replacement $800,00 (Building Maintenance

Reserve)

• Kitchen & Warehouse Equipment $102,000
• Parking Lot Improvements $30,600
• Hotel & Convention Center Expansion Feasibility $125K

PARK PERFORMANCE FUND PROGRAM CHANGES

• Revenues are $1.8M higher than FY 2017
• Golf revenue is up $1.8M due to Ditto re-opening
• Recreation and Field revenues are essentially

unchanged from FY 2017

• FY 2018 expenditures are $814k higher than FY 2017
• Golf expenditures are up $934k
• Recreation expenditures are down $129k
• Field expenditures are up $9k

COMMUNICATION SERVICES PROGRAM CHANGES

• FY 2018 Revenues and Expenditures
• $1.65M of expenditures for CAD and radio

maintenance moved to CES Fund, non HOT Revenues

• Revenues from chargebacks reduced by $1.1M
• Expenditures reduced by $736k from FY 2017 level
• CAD 9.5 Upgrade funded for $495k, paid from

beginning fund balance

IT SUPPORT FUND PROGRAM CHANGES

• One-time project expenses $305,521
• City Website Rebuild $150,000
• Supplementary Resources for city-wide IT Projects

$155,521

• Recurring new expenses $542,861
• Software Maintenance $142,861
• Electronic Plan Review $400,000

STORM WATER UTILITY FUND

STREET MAINTENANCE FUND

• Sales tax increase of almost $608k over

current year estimate

• $5.5M in additional contracted street

maintenance

WATER UTILITIES

WORKI NG T OGET HER T O MA KE A RLI NGTON B ET T ER

City of Arlington FY 2018 Proposed budget

WATER TER FIXED D MONTHLY THLY CHARGE ARGE

Met eter Size FY17 Propose

• posed FY18

18 Resident dential al Commer mercial cial ⅝ x ¾ $6.40 40/$9. /$9.00 00 $7.0 .07/$ 7/$10. 0.30 30 $10.3 .30 1 15.40 40 20.30 30 20.30 30 1-1/2 /2 34.30 30 46.31 46.31 2 60.00 00 81.00 00 81.00 00 3 141.00 00 190.3 .35 4 225.0 .00 303.7 .75 6 524. 4.00 00 707.4 .40 8 820.0 .00 1107.0 .00 10 10 1232. 2.00 00 1663 63.20 20

WATER ER CONSERVATION SERVATION RATES ES RESID IDENTIAL ENTIAL BLOCK CK STRUCTU UCTURE RE

Usage e (1, 1,00 000 0 gal) FY17 Prop roposed sed FY18 0 - 2 $2.02 02 $2.02 02 3 3 - 10 10 2.79 2.79 11 - 15 15 4.02 4.02 16 - 29 29 4.79 4.79 > 30 30 5.94 94 5.94

COST T OF SERVICE VICE CO COMMER MERCIAL CIAL VOLUME LUME RA RATE TE BLO LOCK S STRUCTURE TRUCTURE

Usage e (1, 1,00 000 0 gals) FY17 Prop roposed sed FY18 0 - 15 15 $ 3.00 $3.00 00 ≥ 16 3.16 3.16

WATER TER CONSERVAT ERVATION ION RATE TES S CONSTRUC TRUCTION TION METER TER RATE TES

Usage e (1, 1,00 000 0 gal) FY17 Prop roposed sed FY18 0-99 99 $ 5.90 $5.90 90 ≥ 100 7.44 7.44

SEWER WER FIXED D MONTHLY THLY CHARGE ARGE

Met eter Size FY17 Propose

• sed FY18

Resident dential al and Commer mercial cial Resident dential al and Commer mercial cial ⅝ x ¾ $5.80 80/$9 $9.9 .90 $7.64 64/$1 $12. 2.94 1 16.80 80 23.52 52 1-1/2 /2 38.70 70 56.12 12 2 60.50 50 87.73 73 3 187.0 .00 271.15 4 279.0 .00 404.5 .55 6 759.0 .00 1100. 0.55 55 8 1000. 0.00 00 1450 50.00 00 10 10 1458 58.00 00 2114. 4.10

COST T OF SERVICE VICE SEWER ER RATE

Wastewat ater er Flow (1, 1,00 000 0 gals) FY17 Prop roposed sed FY18 All usag age $4.18 18 $4.18

CUSTOMER TOMER IMPACT ACT

Mont nthly ly Bill (Water/W /Was astewat ater er) FY17 Propose

• posed

FY18 18 Annu nual al Impact ct Percent ntag age Increas ase Minimum User – ⅝ x ¾” meter (2,000 gal/ 2,000 gal) $24.60 $27.11 $22.59 10.20%

• Avg. Residential User –

¾” meter (7,000 gal/ 4,000 gal) $53.61 $57.95 $39.06 8.10% Commercial Customer – 2” meter (50,000 gal/ 50,000 gal) $485.10 $533.33 $434.07 9.94%

RESIDENT IDENTIAL IAL WATER ER RATES TES FOR R 10,000 GA GALLONS LONS

$35.3 .36 $36.4 .45 $36.6 .66 $38.3 .38 $39.18 $40.3 .36 $41.12 $44.98 4.98 $46.0 6.07 $47.0 .01 1 $48.0 8.00 $53.7 .73 $55.10 $56.7 .70 $57.5 .50 $58.10 $59.6 .60 $62.8 .82 $64.29 .29 $64.82 .82 $72.8 .85 $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 Arlington Carrollton *Arlington… Plano Lewisville Dallas Irving Fort Worth Allen Frisco Mansfield Euless McKinney Bedford Denton Cedar Hill Richardson Flower Mound North Richland Hills Mesquite Garland Source Data: ta: Texas as Town wn & City ty, , May 2017 and City ty Websit bsites es

Cost st

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

COMMER ERCIAL CIAL WATER TER RATES TES FOR R 50,000 GA GALLONS LONS

$144.4 .47 $208.8 .84 $214.13 $215.60 .60 $224.88 .88 $236.60 .60 $239.26 .26 $264.10 $264.16 $267.9 .94 $273.3 .38 $274.00 .00 $279.3 .30 $284.9 .97 $299 99.08 .08 $310.5 .54 $321.20 .20 $325.18 $331.4 .42 $348.56 .56 $382.6 .68 $- $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 $450.00

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

Source Data: ta: Texas as Town wn & City ty, , May 2017 and City ty Websit bsites es

Cost st

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

FUNDING FOR RESERVES

WORKI NG T OGET HER T O MA KE A RLI NGTON B ET T ER

City of Arlington FY 2018 Proposed budget

SELECTED CITY RESERVES

OTHER POST WORKING BUSINESS LANDFILL EMPLOYMENT UNALLOCATED CAPITAL CONTINUITY LEASE BENEFITS Balance on October 1, 2016 6,918,203 $ 19,217,230 $ 4,062,075 $ 17,151,326 $ 1,717,904 $ Appropriated Amounts

• Transfers In / (Out)

301,598 837,773

• Balance on September 30, 2017

7,219,801 $ 20,055,003 $ 4,062,075 $ 17,151,326 $ 1,717,904 $ Appropriated Amounts

• Transfers In / (Out)
• Balance on September 30, 2018

7,219,801 $ 20,055,003 $ 4,062,075 $ 17,151,326 $ 1,717,904 $

SELECTED FINANCIAL RESERVES FY 2018 OPERATING POSITION

FY 2018 SUMMARY OF RESERVES

Working Capital, $20,055,003 Unallocated, $7,219,801 BCR, $4,062,075 OPEB, $1,717,904 Landfill, $17,151,326 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 $55,000,000

FY 2018 Reserves Summary

Not Required: $14.11m Required: $36.10m

RESERVE TRENDS

CHANGE IN AVERAGE HOME VALUE

BUDGET CALENDAR

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

QUESTIONS ?

City of Arlington FY 2018 Proposed budget