07-21-1992 (City Council) Agenda Packet MEMORANDUM
TO: Steve Norwood, City Manager
FROM: Paul D. Beaver, Director of Planning and Engineering
DATE: July 21, 1992
SUBJECT: Auto Cadd System Justification
With the addition of an Auto Cadd system to the Engineering
Department, either by digitizing or through coordinates, the
entire City Base Map can be transferred onto our computer. This
would enable the draftsperson to print out one small portion of
the City at various scales, or print out the entire map, thereby
eliminating many of our duplicate maps at various scales.
The entire City water system, sewer system, USGS Maps,
storm/drainage system, and proposed thoroughfare system
( virtually any type of plat or plan) can be transferred into the
computer. All Subdivision plats and construction drawings could
be entered alphabetically for easy access. Any one system or
combination of systems can then be printed on one drawing and
layered in such a manner that easy comparisons can be made
between existing and/or proposed facilities.
Once the system is up and running, many other sources of computer
data will be available from other cities such as Allen, Plano,
Richardson, etc. plus other governmental entities.
With our current method of drafting by hand, if a change occurs
within the City or a new subdivision is accepted and needs to be
added, as many as 14 maps may have to be revised which could take
a week or more to alter. A person proficient with an Auto Cadd
system could make these changes in a day.
Not only would Auto Cadd speed up the mapping process, it would
provide the draftsperson with more time to spend on other
projects.
DEFICIT OF $136,000 = 2t INCREASE
Staff cuts = $105,000
Repair/Demo Fund = 12,000
Comp Plan/Breakroom/CC Chambers = 10,000
Attorney (misc) = 6,000
TOTAL = $133 ,000
If no tax increase!
Code Clerk (with part-time added) = $14,000
Voice Mail = 13,500
Street Rehab = 10,000
Basketball Court - 8,500
Miscellaneous = 14,000
TOTAL $60,000
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GENERAL FUND
STATEMENT OF REVENUES AND EXPENDITURES
ACTUAL BUDGET Expected BUDGET
1990-91 1991-92 1991-92 1992-93
BEGINNING BALANCE 9189,856 9189,658 9328,046
REVENUES
Ad Valorem Taxes $1,495,870 $1,484,650 1,469,880
Sales Taxes 385,000 385,500 400,550
Franchise Fees 339,400 372,920 373,500
Licensee and Permits 68,400 64,700 67,700
Intergovernmental Revenues 49,930 63,660 66,360
Service Fees 50,000 51,800 440,400
Court Fees 114,500 114,500 124,000
Interest Income 12,000 22,000 25,000
Paving Assessments 800 0 0
Miscellaneous 30,100 24,320 25,950
Transfers From Other Funds 373,080 373,080 300,000
Total Revenues $2,919,080 $2,957,130 $3,293,340
TOTAL AVA AB ERESOURCES $3,108,736 $3,146,786 $3,619,386
. EXPENDITURES:
City Council 929,120 $24,840 $38,600
City Manager 86,008 80,960 104,810
City Secretary 110,290 104,990 89,740
City Attorney 71,891 62,920 75,960
Finance 298,948 274,230 290,620
Municipal Court 42,679 38,920 41,380
Combined Services 274,225 246,410 779,200
Lbrary 63,559 63,330 73,630
Police 800,867 772,650 782,180
Fire 186,692 168,390 219,310
Emergency Medical Service 132,252 132,250 0
Animal Control 41,174 32,970 0
Engineering 183,246 137,330 0
Community Development&Planning 134,571 120,240 168,990
Streets 399,816 360,610 501,600
Building&Fleet Servoces 41,074 39,090 91,370
Parks&Recreation 182,976 153,340 172,110
Transfer to Other Funds 7,272 7,270 0
TOTAL EXPENDITURES 93,086,860 $2,820,740 $3,429,500
ENDING FUND BALANCE $22,078 $326,046 9189,888
GENERAL FUND
SCHEDULE OF REVENUES BY SOURCE
ACTUAL BUDGET ESTIMATED BUDGET
1990-91 1991-92 1991-92 1992-93
Ad Valorem Taxes:
Current Taxes $1,412,650 $1,392,650 $1,374,880
Delinquent Taxes 56,350 64,000 65,000
Penalty&Iffiereat 26,870 28,000 30,000
Sales Taxes:
General 384,250 385,000 400,000
Alcoholic Beverage 750 500 550
Franchise Fees:
Electric Franchise 216,000 223,530 225,000
Telephone Franchise 43,500 45,675 46,000
Gas Franchise 38,500 41,215 41,500
Bank Franchise 0 0 0
Cable Franchise 7,500 20,500 21,000
Sanitation Franchise 33,900 42,000 40,000
Licenses and Permits 68,400 64,700 67,700
Lntergoal Revenues:
Lake Patrol 18,500 31,000 32,000
Fire Call Reimbursement 7,300 8,500 10,000
County 3,730 3,760 3,760
ISD/School Guard 7,400 7,400 7,600
Other Govt Reimbursement 13,000 13,000 13,000
Service Fees:
Development Fees 1,700 2,200 2,200
Alarm Permits 1,000 1,200 1,200
911 Fees 41,000 44,550 45,000
Animal Control 3,300 1,850 0
Recreation Fees(Community Room) 3,000 2,000 2,000
Sanitation Fees 0 0 390,000
Court Fees 114,500 123,000 124,000
Interest Income 12,000 22,000 25,000
Paving Assessments:
Principal 800 0 0
Miscellaneous:
Rental Income 15,000 14,800 14,800
Miscellaneous Income 14,600 9.520 11,150
Restitutions 500 0 0
Transfers From Other Funds:
Sanitation Fund 68,080 60,000 0
Utility Fund 305,000 305,000 300,000
. TOTAL REVENUES $2,919,080 $2,957,550 $3,293,340
Tax Rate at$.635/100(2 cent increase)0 95% collection,
based on a$315,444,313 tax base.
BUDGET CUTS
Freezes $125,000
Layoffs $$
Scrutiny of Expenses $$
LAYOFFS
05/92 4
07/92 6 (with 24 increase)
Total 10 __--
Layoffs 14% of workforce
i.e. Dallas laying off 1,800 employees
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TAX RATE COMPARISON
A '.01' increase generates approximately an additional $32 ,000.
The breakdown on an increase in the tax rate is as follows:
50,000 House
50,000 X .00615 = 307.50
$5.00 a year or . 41 a month
50,000 X .00625 = 312.50
75,000 House
75,000 X .00615 = 461. 25
$7 . 50 a year or .62 a month
75.000 X .00625 = 468.75
100,000 House
100,000 X .00615 = 615.00
$10.00 a year or .83 a month
100,000 X .00625 = 625.00
TAX RATE COMPARISON
A .01 increase generates approximately an additional $32,000.
The breakdown on an increase in the tax rate is as follows:
50,000 House
50,000 X .00615 = 307.50
$5.00 a year or . 41 a month
50,000 X .00625 = 312.50
75,000 House
75,000 X .00615 = 461. 25
$7 .50 a year or .62 a month
75.000 X .00625 = 468.75
100,000 House
100,000 X .00615 = 615.00
$10.00 a year or .83 a month
100,000 X .00625 = 625.00
TAX RATE COMPARISON
A .01 increase generates approximately an additional $32,000.
The breakdown on an increase in the tax rate is as follows:
50,000 House
50,000 X .00615 = 307.50
$5.00 a year or .41 a month
50,000 X .00625 = 312.50
75,000 House
75,000 X .00615 = 461. 25
$7.50 a year or .62 a month
75.000 X .00625 = 468.75
100 ,000 House
100,000 X .00615 = 615.00
$10.00 a year or .83 a month
100,000 X .00625 = 625.00
TAX RATE COMPARISON
A .01 increase generates approximately an additional $32,000.
The breakdown on an increase in the tax rate is as follows:
50,000 House
50,000 X .00615 = 307.50
$5.00 a year or .41 a month
50,000 X .00625 = 312.50
75,000 House
75,000 X .00615 = 461. 25
$7 . 50 a year or .62 a month
75.000 X .00625 = 468.75
100 ,000 House
100,000 X .00615 = 615.00
$10.00 a year or .83 a month
100,000 X .00625 = 625.00
TAX RATE COMPARISON
A .01 increase generates approximately an additional $32,000.
The breakdown on an increase in the tax rate is as follows:
50,000 House
50,000 X .00615 = 307.50
$5.00 a year or .41 a month
50,000 X .00625 = 312.50
75,000 House
75,000 X .00615 = 461. 25
$7. 50 a year or .62 a month
75.000 X .00625 = 468.75
100.000 House
100,000 X .00615 = 615.00
$10. 00 a year or .83 a month
100,000 X .00625 = 625.00
TAX RATE COMPARISON
A .01 increase generates approximately an additional $32,000.
The breakdown on an increase in the tax rate is as follows:
50,000 House
50,000 X .00615 = 307.50
$5.00 a year or .41 a month
50,000 X .00625 = 312 .50
75,000 House
75,000 X .00615 = 461. 25
$7.50 a year or .62 a month
75.000 X .00625 = 468.75
100,000 House
100,000 X .00615 = 615.00
$10.00 a year or .83 a month
100,000 X .00625 = 625.00
TAX RATE COMPARISON
A .01 increase generates approximately an additional $32,000.
The breakdown on an increase in the tax rate is as follows:
50,000 House
50,000 X .00615 = 307.50
$5.00 a year or .41 a month
50,000 X .00625 = 312.50
75,000 House
75,000 X .00615 = 461. 25
$7. 50 a year or .62 a month
75.000 X .00625 = 468.75
100,000 House
100,000 X .00615 = 615.00
$10.00 a year or .83 a month
100,000 X .00625 = 625.00
TAX RATE COMPARISON
A .01 increase generates approximately an additional $32,000.
The breakdown on an increase in the tax rate is as follows:
50.000 House
50,000 X .00615 = 307.50
$5.00 a year or .41 a month
50,000 X .00625 = 312.50
75,000 House
75,000 X .00615 = 461 . 25
$7.50 a year or .62 a month
75.000 X .00625 = 468.75
100,000 House
100,000 X .00615 = 615.00
$10.00 a year or .83 a month
100,000 X .00625 = 625.00
TAX RATE COMPARISON
A .01 increase generates approximately an additional $32 ,000.
The breakdown on an increase in the tax rate is as follows:
50.000 House
50,000 X .00615 = 307.50
$5.00 a year or .41 a month
50,000 X .00625 = 312.50
75,000 House
75,000 X .00615 = 461. 25
$7.50 a year or .62 a month
75.000 X .00625 = 468.75
100.000 House
100,000 X .00615 = 615.00
$10.00 a year or .83 a month
100,000 X .00625 = 625.00
TAX RATE COMPARISON
A .01 increase generates approximately an additional $32,000.
The breakdown on an increase in the tax rate is as follows:
50,000 House
50,000 X .00615 = 307. 50
$5.00 a year or .41 a month
50,000 X .00625 = 312.50
75,000 House
75,000 X .00615 = 461. 25
$7. 50 a year or .62 a month
75.000 X .00625 = 468.75
100.000 House
100,000 X .00615 = 615.00
$10.00 a year or .83 a month
100,000 X .00625 = 625.00
TAX RATE COMPARISON
A .01 increase generates approximately an additional $32 ,000.
The breakdown on an increase in the tax rate is as follows:
50 ,000 House
50,000 X .00615 = 307.50
$5. 00 a year or . 41 a month
50,000 X .00625 = 312.50
75,000 House
75,000 X .00615 = 461. 25
$7.50 a year or .62 a month
75.000 X .00625 = 468.75
100,000 House
100,000 X .00615 = 615.00
$10. 00 a year or .83 a month
100,000 X .00625 = 625.00
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GENERAL FUND \' "MAJOR ITEMS"
3% employee payraise
Fleet Replacement Fund
Financial Software/Hardware System
dropped software/hardware support from 24K to 10K
Comprehensive Plan
Increase in training
Tuition Reimbursement - $2,500
Employee Incentives/Suggestions/Safety Incentives $2,500
Widen park road and construct new parking lot
Sprinkler system - softball fields
Upgraded street maintenance
New streets/improved
Rustic Oaks Ditch
CADD System - Mapping
Library Shelving
Hiring of Green Thumb
Freon Recovery System - $2,800
mandated by sta law *used once"
4 sets of Bunker gears - Volunteers
8-5 shift or 12 hour shifts
Recreational supplies
North Texas Poison Control Center $2, 500
Council/Citizen Newsletter
$2,000 for 4,000 newsletters X 3 = $6,000
Basketball Court
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CITY SECRETARY
--PART TIME VOE STUDENT -- RESPONDING TO STATE MANDATED LAWS
CODE ENFORCEMENT/ENGINEERING
--CONSOLIDATED WITH ENGINEERING
--DEPARTMENT RE-TITLED CODE ENFORCEMENT
--PAUL BEAVER/LISA PRICE TRANSFERRED TO PUBLIC WORKS
ADMINISTRATION
--RAY CORY TRANSFERRED FROM UTILITY FUND TO CODE
ENFORCEMENT
--PERMIT CLERK -- LAY OFF 6,4 NV { InCtfca
--HIRE PART-TIME CLERK (V1 X ; r aw)
--NEW ORGANIZATIONAL SET-UP
BUILDING OFFICIAL
BUILDING INSPECTOR
BUILDING INSPECTOR
PERMIT CLERK - PART-TIME
FIRE
--FULL TIME FIRE FIGHTERS MOVED TO 8-5
--FIRE FIGHTERS IS ON A CALL EACH. ROTATING.
--MORE COMMUNITY CONTACT
POLICE
--ELIMINATION OF LIEUTENANT POSITION
--ELIMINATION OF A SERGEANT POSITION
--LIEUTENANT, SERGEANT MOVED DOWN ONE LEVEL
--FORCES LAYOFF OF TWO PATROL OFFICERS
--STILL HAVE SAME NUMBER OF OFFICERS ON THE STREET
PARKS
--LABORER POSITION - LAYOFF
--HIRE PART-TIME SEASONAL (MAY TO AUGUST)
LIBRARY
HIRING OF GREEN THUMB - PART-TIME
--GAINS ADDITIONAL PART-TIME AT NO COST
MEMORANDUM
DATE: July 13 , 1992
TO: Mayor and City Council
FROM: Steve Norwood, City Manager 40p
RE: Financial Overview
INTRODUCTION
This brief financial overview of the City of Wylie will
comprise of the following areas: General Fund Recap (Tax
Rate, Fund Balance, Revenue and Expenditures, Staffing,
Service Levels, Transfers, Debt) . I will address both
General Fund and Utility Fund and discuss both areas in
limited detail. I will also attempt to outline the major
policy issues facing both the General Fund and Utility Fund
over the next several years. By no means are the policy
issues all inclusive but I do hope that it will adequately
address some of the major issues facing this community. I
have put considerable thought in formulating this financial
overview. I hope the Council, as the primary policy makers
of the City, spend some time going through this and I hope
it raises other questions for staff to address.
FY91/92 BUDGET -- BRIEFING
At this point of the FY91/92 budget year I think the City is
in "fair" condition. As I communicated to Council at a
previous worksession, I feel that with a little luck that we
will see a slight increase in our fund balance. Had some
significant changes not been made, i.e. mid-year layoffs,
budget freezes and close financial scrutiny, it would have
been very possible to see our fund balance drop from a
$189,000 to roughly $50,000. I am predicting that our fund
balance will come in around $200,000 to $250,000. As I said
hopefully we will get a little luck for the remainder of the
year.
In the Utility Fund we are not as fortunate. The heavy
rainfalls have not helped our water sales. There again with
the high watering months just ahead and with some dry
weather we could possibly "break even" in our fund balance
(working capital) for this fund. Also in the Utility fund a
reorganization and mid-year budget freezes and layoffs
helped offset our dwindling revenues. For the remainder of
this fiscal year, any capital, i.e. , water/sewer line
replacement has been deferred due to a poor cash flow in our
1
Utility fund. I do not feel that the Utility fund is in as
bad as shape as some of you may think. My real concern in
the Utility fund is the condition of the City's water and
sewer lines that are in dire need of replacement. However
this can be addressed with some bond money that is available
and staff will be coming to Council on a prioritization of
those dollars and projects.
FY92/93 BUDGET -- PREVIEW
As staff is in the midst of finalizing the 92/93 budget for
City Council's consideration one thing is definitely
apparent. There is not enough dollars to meet the City's
needs. The revenues are obviously remaining flat with a
slight increase in some areas but for the most part overall
revenues will be flat. As far as expenditures there will
always be a slight increase due to pay and benefits,
insurance increases, also inflation factors in the purchase
of goods and supplies.
The revenues for 1993 budget are approximately $2.9M.
During the budget process the staff requested expenditures
totaling $3.7M. Obviously we cannot afford a $800,000
increase in expenditures over revenues. I honestly feel
that the requests made by department directors were not
unreasonable. Some of their requests are very critical
needs while others are "would like to". It is my opinion
that staff is very much aware of the City's financial
condition and has done a good job in trying to keep that in
mind when addressing their budget needs. After going
through a series of budget cutting with directors it looks
as though the City of Wylie will have a true shortfall of
approximately $300,000 - $400,000 in revenues. Without
doubt there will be some very tough choices ahead of us
during the month of July in order to get a budget that we
can support.
The Utility fund I do not feel is in as bad shape as the
General fund. The recent reorganizations will have a
definite help for next year. We are also projecting
revenues to be basically flat and the expenditures will also
be in line. There will be some budget cuts needed in the
Utility fund but I do feel that the cuts will not have to be
near as significant as those in the General fund.
2
A) GENERAL FUND RECAP
1) Tax Rates
1989 - .555
1990 - .615
1991 - .615
1992 - ?
For the past two years Wylie's tax rate has stayed the
same. From 1989 to 1990 the City saw a six cent
increase in the tax rate. Five of the cents were to
offset the cost of debt. A point to consider on our
tax rate is that a slow incremental tax rate increase
to our citizens maybe more palatable than keeping the
tax rate the same for several years then having a large
tax rate increase in the future. Obviously the City's
tax rate during the early to mid eighties did not
increase but by two or three cents over a period of
years but please remember that was during a period of
extremely high growth.
2) Fund Balance
1989 - $226,803
1990 - $406,054
1991 - $189,656
1992 - $200,000 (Estimated)
The above fund balance totals are ending fund balances
and are audited figures except for the 1992 estimate.
This fund balance is extremely important to the City of
Wylie. It should be roughly $400,000 to $500,000 at
all times. This is a minimum. The bond raters in New
York and also our financial advisors look at this
figure very closely. In fact we were asked and closely
scrutinized by the bond raters earlier this year as to
why our fund balance dropped so significantly over the
past year. The primary reason for the drop in fund
balance was expenditures of capital items that were not
budgeted. This fund balance is something that the
Council needs to address from a general policy
standpoint that we will try to increase our fund
balance to $400,000 over the next two to three years.
3
3) Revenues
1989 - $2,315,048
1990 - $2 ,468,977
1991 - $2,490,796
1992 - $2 ,400,000 (Projected)
The above figures do not reflect utility fund
transfers. As I have stated numerous times to the City
Council our revenues have remained flat over the past
several years and I do not see this trend changing in
the next couple of years.
4) Expenditures
1989 - $1,996,744
1990 - $2,540,264
1991 - $3 ,085,987
1992 - $3 ,083 ,659 (Budgeted)
As you can see expenditures have increased $1.1M over
these three years. These increases can be pointed to
the fact that we are providing a much higher level of
service and in some cases additional services that were
not being provided in 1989. To mention a few, City
Attorney, Fire, Parks and Recreation. During that
three year period an increase of $365,000 for streets
and $210,000 for police. So you take out police and
streets the increases over a three year period are not
as alarming.
5) Staffing
1989 - 43 .3
1990 - 47.8
1991 - 56.3
1992 - 61.6
Keep in mind these staffing figures are for General
Fund only and also are based on full time equivalents,
meaning that school crossing guards, part time
librarians, etc. are included in these staffing totals.
As we get into next year's budget I will be breaking
these out separately to show City Council full time
4
staffing and also part time staffing and not combine
the two.
The staffing totals for 1992 do not include the
positions eliminated in June.
6) Service Levels
Although I have no yearly data for service delivery to
our citizens as this will correspond with staffing
totals for the previous years. I can say that we are
providing a good basic level of service. The City has
moved forward by adding a Parks and Recreation staff
that has shown improvements to the maintaining and
development of Community park as well as other City
facilities. Also the implementation of a full time
paid Fire Department, in-house City Attorney, also by
the recruitment of a professional staff in engineering
and code enforcement, etc.
As our economy continues to be depressed and no major
relief in sight I think you will see our citizens
continue to demand a higher level of service. They
will also demand this higher level of service without
an increase in cost. Obviously it cannot be done
without increases, be it in taxes, user fees, or
downsizing. Also I have noticed in other cities that
the residents are using the parks, recreation and
library facilities even more during these recession
times. As some other cities have said the parks and
recreation is their "hometown retreat" . This is
basically due to the fact that citizen's disposal
incomes are decreasing and they are spending more time
with their families and obtaining entertainment through
their local parks and recreation programming.
I do not envy the Council in trying to balance the
service delivery needs and desires with the available
funds.
7) Transfers
1989 - $185,750
1990 - $309,500
1991 - $305,000
1992 - $300,000 (estimated)
These transfers listed are strictly for transfers
received by the General fund from the Utility fund.
These transfers are legal and ethical and bond raters
and advisors expect to see these transfers. They do
5
like to see cities address these transfers through some
sort of "policy" and that it is not done on a random
basis to address General fund needs solely. In other
words the bond raters do not like to see the cities
continue to increase their utility fund transfers to
the general fund because it indicates a City Council's
unwillingness to raise taxes to support that fund.
Also, the transfers are not meant to subsidize the
fund, either. Currently the city is transferring 15%,
this is not excessive or out of the ordinary. I would
say that we do not need to go any higher. At this
point I would recommend to the Council that we keep our
transfers at 15% and address any reductions in
transfers during the next budget year.
8) Debt
1989 - $486,386
1990 - $665,517
1991 - $605,260
1992 - $589,590
The City's debt rate is not excessively high but it
must definitely be monitored in the future, especially
with our property valuations being so low. Fortunately,
the debt the City issued has gone to eliminate some
state mandated problems.
9) Major Policy Issues -- General Fund
**Maintaining and Improving the Level of Service
**Ongoing Street Reconstruction and Improvement Program
**Fleet Replacement Program
**Computer Technology Upgrades
**Future Bond Election
**Highways 78 and 544
**Comprehensive Plan
6
B) UTILITY FUND BRIEFING
The Utility fund has been hard hit the past couple of
years. Obviously due to the heavy rains. The past two
years have been the wettest in the area's history and
due to the agreement we have with North Texas it makes
it extremely difficult on the City to absorb these
losses. As most of you know we have we have what is
commonly called "take or pay" agreement with North
Texas as do the cities of Piano, Garland, Mesquite,
Richardson. Basically, even if you don't use it, you
are still obligated to pay. . Also during the last
couple of years the City has issued debt, therefore the
City's debt service has increased.
1) Utility Fund -- FY91/92
The Utility fund this past year, as I stated earlier,
suffered tremendously from a cash flow standpoint due
to the rains. However in responding to this reduction
in cash the City's reorganization at mid-year has
helped offset the decline in revenues. Freezing of
expenditures has also helped the Utility fund and
deferring capital expenditures, i.e. water and sewer
line replacements. With a little luck and some
continued dry weather I am expecting that the Utility
fund will break even or possibly only drop the fund
balance (or working capital) $50,000. Initially the
picture for the Utility fund was much worse. I do
think that the City can end the year in relative good
fashion considering the rainy weather.
2) Utility Fund -- FY92/93
For the most part I do not expect major changes in the
Utility fund for '92/93. We are going to be budgeting
the revenues flat and then hopefully we will have a
dry year and even exceed our revenue projections.
Statistically we cannot keep having one wet year after
another.
On the expenditure side I expect to see our
expenditures decrease with some moves in personnel and
other areas. Also there should be a slight drop in our
debt service payments but probably the brightest part
of the Utility fund for next year is the fact that we
will have some left over bond funds available that we
can use to correct any water or wastewater projects.
Paul Beaver has been working aggressively to secure a
state grant which would also give the City substantial
dollars in correcting our wastewater problems.
7
3) Water Rates
The following water rates are based on the last three
changes to our rate structure:
10/01/88 Base Rate $6.50
1,001 - 2,000 $1.82 per 1,000 gallons
2 ,000 and up $2.40 per 1,000 gallons
11/01/90 Base Rate $7.15
1,001 - 2,000 $1.82 per 1,000 gallons
2,000 and up $2.55 per 1,000 gallons
03/01/91 Base Rate $4.84
1,001 - 2,000 $1.82 per 1,000 gallons
2 ,000 and up $2.55 per 1,000 gallons
The water rates have increased very nominally over the
past four years with the primary increase being in the
base rate. However, the lowering of the base rate to
$4.84 has definitely had an impact on the Utility fund.
This lowering of the base rate even lower than the rate
was in 1988 and also during that same time issuing
additional debt has caused the Utility fund to suffer.
The base rate of $4.84 , as it is currently, generates
to the City approximately $195,000. Had the base rate
been lowered back to the 1988 rate of $6.50 it would
have generated in excess of $260,000. In other words
it is costing the City approximately $67,000 per year
on the base rate. Obviously I am not aware of the
politics and the community concerns with the water
rates in 1990 and 1991.
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4) Sewer Rates
10/01/88 Base Rate $7.00
1,000 and up $1.20 per 1,000 gallons
Sewer Pass Thru $2.00
up to 2,000 gallons
Sewer Pass Thru $5.00
2,001 - 15,000 gallons
11/01/90 Base Rate $10.00
1,000 and up $ 1.45 per 1,000 gallons
Sewer Pass Thru $ 2.00
up to 2,000 gallons
Sewer Pass Thru $ 5.00
2,001 - 15,000 gallons
03/01/91 Base Rate $10.84
1,000 and up $ 1.45 per 1,000 gallons
Sewer Pass Thru $ 0.00
up to 2,000 gallons
Sewer Pass Thru $ 2.31
2,001 - 15,000 gallons
Here again the City reduced the sewer pass thru rates
which is a guaranteed revenue amount and also during
that time additional debt being issued. Once again
the Utility fund suffered.
I realize that our water and sewer rates are on the
"high side" but there again sewer pass thru rates are
guaranteed incomes and are not subject to inclement
weather.
Next year I think all of us will have to take a very
close look at our water and wastewater rates in order
to help address some of the capital needs.
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5) Debt
1989 - $342 ,770
1990 - $427,716
1991 - $484, 200
1992 - $497,460
This increase in debt has obviously been to correct
some of the state mandated problems and others to the
issuance of debt. Fortunately the City is solving
those problems and hopefully we can see our debt start
leveling off or get back into an upgrading of our
infrastructure and not correcting state mandated
problems.
6) Staffing
1989 - 14
1990 - 14
1991 - 15
1992 - 16
These staffing levels have remained fairly constant
over the past four years. The 1992 staffing of sixteen
does not reflect the two positions that were eliminated
in the mid-year budget reorganization. So our Utility
fund has the same staffing as four years ago.
Although our staffing level is the same today as it was
in 1989 we have the seen the number of our water
customers increase from 2,666 to more than 3 ,400 so we
are having additional lines, customers and areas to
serve and maintain.
7) Revenues
1989 - $1,696,413
1990 - $1,887,905
1991 - $2,069,812
1992 - $1,800,000 (estimated)
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8) Expenditures
1989 - $1 ,530,652
1990 - $1,890,881
1991 - $1,708 ,867
1992 - $1,850,000 (estimated)
9) Major Policy Issues -- Utility Fund
**Continued Infrastructure Improvements on Water and
Wastewater lines
**Elevated Tank in Newport Harbor Area - Looping System
**Wastewater -- Lift Stations
**Wylie Northeast Water Supply Corporation and East
Fork Water Supply Corporation
**Regional Wastewater Plant -- Sachse, Murphy, Rowlett
**Downtown Area Water/Sewer Line Replacement
**Water and Wastewater Rate Structure
Fortunately the City has available resources with bond
money and possible grant money to correct a lot of
these problem areas. If the City does receive the
grant money we will have nearly $400,000 in which to
spend on water and wastewater system improvements. The
City is very fortunate to have these dollars and I
think we can correct a lot of problems that currently
effect us, i.e. water loss, infiltration, pressure,
etc. However, as you are well aware infrastructure
replacement and improvement is an on going process. We
can, however, solve a lot of these problems by using
these dollars. The Council is to be commended for
issuing that debt two years ago to correct a lot of the
wastewater, landfill and other problems in the City and
having enough left over to fund additional capital
projects. Furthermore by the issuance of that
additional debt our rates did not increase
substantially so therefore the citizens did not feel as
great an impact as they could have.
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Financial Concerns
Sales Tax
This is an extremely critical area to the City of Wylie
in that sales taxes are the second largest revenue
generator and they fluctuate with the economy. With
the City's one-half cent sales tax for economic
development it makes it doubly important that the City
look for business expansions and additions that are
sales tax driven. There again shifting the burden from
the residents to the businesses.
Property Taxes
Obviously this is the most critical area that faces
each City. Declining valuations and very modest
growth have left most cities financially strapped.
Expansion of the tax base is obviously very important
and hopefully that expansion can come from commercial
and industrial uses. The taxes generated off
industrial companies are far greater than that of
residents and typical require less service.
Areas to Watch
Parks and Recreation - I feel this is probably the one
area in the City that will be the most exciting to
watch over the next two to three years. I am expecting
great things to come in this area as we start expanding
into recreational opportunities and appealing to a much
larger percentage of our population than those that
strictly play sports. Also with the opening of the
Armory in August or September will give the City the
space to provide this programming. In the next couple
of months I will have Bill Nelson present to you some
of the plans of recreation programming that will be
starting in the first of '93 with a very expanded
program in the summer for the kids. This will be a
very exciting time and I think the Council will be
pleased with what will be taking place in '93.
Police and Fire - The exciting part about police and
fire will be the involvement in the community. This
involvement in the community does not require
additional staff or large capital expenditures. This
involvement will be through crime watch programs, fire
prevention, LETS program and a citizens police academy.
This City will be making strides to garner citizen
support of these two key areas.
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Finance - With the City Council approving a new
financial hardware/software system for the City the
benefits will be incredible. Financial reporting and
management reports that I will be receiving will aid
Council in making better informed policy decisions. We
will also improve staff productivity and efficiency.
The above departments and areas that I have mentioned
are the ones I feel are to be watched are the next two
to three years. This is centered on the fact of
providing a higher level of service and for the most
part not requiring additional staffing unless the
City's population grows substantially over the next
couple of years.
Obviously with reductions in staff comes reduction in
service delivery but I strongly feel that in the areas
of parks and recreation and also police and fire that
a higher level of service can be provided without that
additional cost.
Alternatives to Taxes
With property taxes being the City's primary revenue
generator and with the citizen sensitivity to increased
taxes leaves very few areas in which to expand. The
main area will be to expand in the commercial and
industrial area that will generate additional sales
taxes and property taxes.
Increase in Fees
It is very typical in local government for cities to
increase fees to help off set no tax rate increases.
With the majority of cities getting very nominal tax
rate increases cities are shifting to increase in fees
to help generate revenues. The City of Dallas recently
increased their traffic fines and other user fees to
help fund services. The City of Wylie is no different,
we will be looking at increasing our 911 fees and other
user fees to help generate additional dollars rather
than through major increases in our tax rate. However,
there is concern about user fees especially from many
citizen groups.
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SUMMARY
I hope this financial overview is of some help to you and
give you a flavor of where the City has been is going and
also outline some of the major policy issues facing this
community. By no means is this list all inclusive but it
does highlight some of the areas of Council concern and also
addresses both funds with a historical perspective. We are
all very confident that the City's future is bright but by
the same token we all realize there will be some bumps and
bruises along the way. The main point for all of us to
consider is to not sacrifice key future items due to
temporary budget problems. We must continue to look in the
future and move forward and try to provide a quality level
of service regardless of our tax rate and revenues.
Citizens will demand a higher level of service. Our
purpose for being in public service is to provide quality
service to our citizens. That delivery of service should be
staff's foremost goal and to do that by providing the
highest level of service at the lowest possible cost.
If you have any questions feel free to contact me. Also we
are still planning for our budget worksession to be on
Tuesday, July 21st and Wednesday, July 22nd. Most likely we
will cover the Utility fund on Tuesday as well as
Sanitation, Impact Fees, etc. and then on Wednesday night
cover the General Fund.
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