FY 2020 2021 Proposed Budget Council Budget Workshop

FY 2020 - 2021 Proposed Budget Council Budget Workshop July 31, 2020

Budget Overview Budget Philosophy v. Utilize Council Strategic Plan as basis for prioritization v. Maintain tax rate v. Be service focused v. Maintain strong fund reserves v. Plan for the future v. Maximize efficiency

FY 2019 - 2020 General Fund Revenues Budget vs Actual REVENUE CATEGORY ADOPTED 2019 - 2020 ESTIMATED 2019 - 2020 Fines & Fees Taxes Grants Contributions & Donations Interest Income Other Revenue Transfers TOTAL REVENUES $ 6, 867, 683 8, 764, 938 1, 076, 384 66, 549 245, 000 471, 100 719, 812 $ 18, 211, 466 $ 8, 687, 083 8, 972, 242 1, 000 129, 049 230, 000 427, 100 713, 612 $ 20, 159, 086 $ 1, 947, 620 10. 7%

FY 2019 - 2020 General Fund Revenues & Review v Estimated revenues for FY 2019 -2020 are 10. 7% higher than budget at $1, 947, 620 and is mainly contributed to the following: v. Franchise Fees $138, 737 v. Permits $1, 560, 000 v. Permits are estimated at 1, 415 for FY 20192020 for an increase of 115 over budget or 8. 85%. v. Construction Inspection Fees $250, 000

FY 2019 – 2020 General Fund Expenditures Budget vs Actual DEPARTMENTS GIS Facilities Management Information Technology Finance Library City Secretary Development Services Administration Municipal Court Fire & EMS Streets Police Parks Community Relations Engineering Human Resources TOTAL EXPENDITURES ADOPTED 2019 - 2020 $ 138, 088 327, 616 650, 611 938, 694 272, 884 156, 493 2, 010, 661 1, 201, 898 185, 817 4, 580, 490 1, 168, 884 3, 238, 609 1, 184, 052 280, 939 1, 160, 702 265, 354 $ 17, 761, 792 ESTIMATED 2019 - 2020 $ 138, 403 287, 835 675, 771 955, 449 272, 844 140, 693 2, 056, 511 1, 300, 782 184, 417 4, 534, 278 1, 206, 071 3, 329, 485 1, 141, 250 299, 042 1, 258, 702 244, 444 $ 18, 025, 977 $ 264, 185 1. 5%

FY 2019 - 2020 General Fund Expenditures v Estimated expenditures for FY 2019 -2020 are 1. 5% higher than original budget at $264, 185 due to unanticipated demand for services in the following departments: v. Development Services $45, 850 v. Engineering $98, 000 v. Police $90, 876 v. Streets $37, 187

FY 2019 - 2020 General Fund Expenditures Information Technology 4% Finance 5% Other 9% Development Services 11% Administration 7% Engineering 7% Parks 6% Police 18% Fire & EMS 25% Streets 7%

FY 2019 – 2020 Water/Wastewater Revenues Budget vs Actual REVENUE CATEGORY Water Sales Sewer Sales Garbage Fees Fines & Fees Interest Income Other Transfer In TOTAL REVENUES ADOPTED 2019 - 2020 $ 6, 765, 000 3, 960, 000 870, 000 2, 160, 200 175, 000 564, 269 2, 880, 000 $ 17, 374, 469 ESTIMATED 2019 - 2020 $ 8, 600, 000 5, 250, 000 1, 043, 530 2, 387, 600 250, 000 605, 680 500, 000 $ 18, 636, 810 $ 1, 262, 341 7. 27%

FY 2019 – 2020 Water/Wastewater Expenditures Budget vs Actual DEPARTMENTS Water Department Wastewater Department Utility Billing Trash and Recycling Debt Service-UTWRD Debt Service-Operations TOTAL EXPENDITURES ADOPTED 2019 - 2020 ESTIMATED 2019 - 2020 $ 6, 024, 748 2, 196, 678 323, 466 827, 034 1, 074, 720 5, 426, 399 $ 6, 501, 897 1, 791, 936 322, 630 950, 000 1, 137, 033 5, 619, 423 $ $ 15, 873, 045 16, 322, 919 $ 449, 874 2. 83%

FY 2019 -2020 Water/Wastewater Revenues & Expenditures Other 7% Fines & Fees 13% Wastewater Department 11% Garbage Fees 6% Sewer Sales 28% Water Sales 46% Water Department 40% Utility Billing 2% Trash and Recycling 6% Debt Service. UTWRD/Operations 41%

FY 2019 - 2020 Water/Wastewater Revenue/Expenditure Highpoints v FY 2019 -2020 projected revenues are 7. 27% higher than budget at $1, 262, 341 and is contributed to an increased even spread across all revenue types driven by growth. v Estimated expenditures for FY 2019 -2020 are 2. 83% higher than budget at $449, 874. Water Department operations is the contributing factor for this increase which is offset by the increase in revenues.

FY 2019 -2020 Capital Improvements – General Fund v Continued Improvement of Downtown v Land Acquisition for Police Station v Land Acquisition for Public Works Service Center Expansion v Land Acquisition for Linear Park

FY 2019 -2020 Major Milestones v v v Commenced construction Old Celina Park Broke ground on Collin College Broke ground on Dallas Tollway extension Completed remodel of Annex & EDC/Parks buildings Opened Fire Station #2

Proposed Budget FY 2020 - 2021

FY 2020 -2021 General Fund Revenues Proposed Budget REVENUE CATEGORIES ADOPTED 2019 - 2020 PROPOSED 2020 - 2021 Fines & Fees $ 6, 867, 683 $ 9, 191, 000 Taxes 8, 764, 938 10, 414, 869 Other 1, 076, 384 2, 128, 068 Contributions & Donations 66, 549 184, 500 Interest Income 245, 000 260, 000 Other Revenue 471, 100 341, 000 Transfers 719, 812 858, 728 $ 18, 211, 466 $ 23, 378, 165 TOTAL REVENUES

Property Taxes According to the Collin and Denton County Central Appraisal District (DCAD), the certified taxable value after the homesteads with tax ceiling is estimated with appraisal review board grand totals is $2, 110, 342, 718. This value is 26% or $440 million more in assessed valuation than the 2019 adjusted taxable value (as of 07/30/2020). Of this increase, $270 million is attributable to new taxable values added to the tax roll which includes improvements and personal property.

Taxable Value History NET TAXABLE ASSESSED VALUATION $ 2, 400 $ 2, 100 Millions $ 1, 800 $ 1, 500 $ 1, 200 $ 900 $ 600 $ 300 $Series 1 2014 555, 548, 867 2015 661, 670, 092 2016 873, 822, 322 2017 1, 108, 101, 685 2018 1, 504, 563, 522 2019 1, 737, 872, 563 2020* 2, 110, 342, 718

Proposed FY 2020 – 2021 Tax Rate TAX RATE ADOPTED PROPOSED FY 2019 -2020 2020 -2021 Property Tax Rate $ 0. 645000 No-New-Revenue (Effective) Tax Rate $ 0. 633998 $ 0. 633518 No-New Revenue (Effective) M&O Rate $ 0. 453683 $ 0. 453126 Voter-Approval (Rollback) Tax Rate $ 0. 600487 $ 0. 645001 De Minimis Rate $ - $ 0. 655554 Debt Rate $ 0. 191317 $ 0. 191875

Tax Rate History $ 0. 700000 $ 0. 645000 $ 0. 600000 $ 0. 500000 $ 0. 423269 $ 0. 453683 $ 0. 427800 $ 0. 453125 $ 0. 385416 $ 0. 400000 $ 0. 300000 $ 0. 259584 $ 0. 221731 $ 0. 217200 $ 0. 200000 $ 0. 191317 $ 0. 191875 2019 TY/2020 FY $ 0. 453683 $ 0. 191317 $ 0. 645000 Proposed 2020 TY/2021 FY $ 0. 453125 $ 0. 191875 $ 0. 645000 $ 0. 100000 $M&O Rate I&S Rate Total Rate 2016 TY/2017 FY $ 0. 423269 $ 0. 221731 $ 0. 645000 2017 TY/2018 FY $ 0. 427800 $ 0. 217200 $ 0. 645000 M&O Rate TY=Tax Year FY=Fiscal Year 2018 TY/2019 FY $ 0. 385416 $ 0. 259584 $ 0. 645000 I&S Rate Total Rate

Proposed FY 2020 – 2021 Other Revenues v Sales Tax Budgeted at $1, 545, 000 and reflects a 3% increase over estimated FY 2019 -2020 collections of $1, 500, 000. v Permits Revenues for the FY 2020 -2021 are planned at $6, 500, 000 with a 6. 56% growth rate over the estimated FY 2019 -2020 of $6, 100, 000. The projected total permits for FY 2020 -2021 are 1, 500.

10 -Year Trend Residential Permits 1600 1400 1200 1000 800 600 400 200 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Estimated 2021 Budgeted

FY 2020 -2021 General Fund Proposed Budget Expenditures DEPARTMENTS GIS Facilities Management Information Technology Finance Library City Secretary Development Services Administration Municipal Court Fire & EMS Streets Police Parks Community Relations Engineering Human Resources TOTAL EXPENDITURES ADOPTED 2019 - 2020 $ 138, 088 327, 616 650, 611 938, 694 272, 884 156, 493 2, 010, 661 1, 201, 898 185, 817 4, 580, 490 1, 168, 884 3, 238, 609 1, 184, 052 280, 939 1, 160, 702 265, 354 $ 17, 761, 792 PROPOSED 2020 -2021 $ 227, 544 464, 879 789, 741 1, 037, 823 301, 860 291, 448 2, 374, 344 1, 314, 855 204, 793 4, 815, 744 1, 260, 697 4, 335, 446 1, 614, 749 453, 097 1, 619, 416 447, 644 $ 21, 554, 080

FY 2020 -2021 General Fund Proposed Budget Expenditures Other 15% Engineering 8% Parks 7% Police 20% Development Services 11% Administration 6% Fire & EMS 22% Streets 6% Finance 5%

FY 2020 - 2021 General Fund Expenditures v Public Safety makes up the largest expense of general purpose operations with a combined budget of $9, 355, 983 or 42. 16% of the total General Fund Budget. These services include Police, Fire and EMS costs. v Personnel Costs represent about 73. 4% or $16, 281, 838 of General Fund operation costs. v The total ending fund balance for the General Fund is project to be $5, 507, 648. The City’s fund balance legal reserve requirement by City of Celina is 25% and equal to 90 days of reserve.

Water/Wastewa ter

FY 2020 -2021 Water/Wastewater Revenues Proposed Budget ADOPTED 2019 - 2020 PROPOSED 2020 - 2021 Water Sales $ 6, 765, 000 $ 9, 500, 000 Sewer Sales 3, 960, 000 5, 800, 000 Garbage Fees 870, 000 1, 527, 728 Fines & Fees 2, 160, 200 2, 403, 100 Interest Income 175, 000 250, 000 Other 564, 269 600, 000 Transfer In 2, 880, 000 500, 000 $ $ REVENUE CATEGORY TOTAL REVENUES 17, 374, 469 20, 580, 828

FY 2020 -2021 Water/Wastewater Expenditures Proposed Budget DEPARTMENTS ADOPTED 2019 - 2020 PROPOSED 2020 - 2021 Water Department $ 6, 024, 748 $ 8, 021, 825 Wastewater Department 2, 196, 678 2, 657, 114 Utility Billing 323, 466 358, 169 Trash and Recycling 827, 034 1, 415, 800 Debt Service-UTWRD 1, 074, 720 1, 919, 360 Debt Service-Operations 5, 426, 399 5, 629, 667 $ $ TOTAL EXPENDITURES 15, 873, 045 20, 001, 935

v FY 2020 -2021 Water/Wastewater Proposed Budget Highlights The budget includes a pass-through increase for water purchased through Upper Trinity Regional Water District (UTRWD). The rate for purchased water increased 3. 6% per 1, 000 gallons. v In fiscal year 2020 -2021, the debt service requirements for UTRWD is projected at $1, 919, 360. This is an increase of $782, 327 or 69% from FY 2020 -2021. v Doe Creek Expansion - $704, 775 (new) v Joint facilities - $107, 155 (new) v Doe Creek - $759, 925 (Existing) v Main Trunk -$347, 505 (Existing - Last Payment FY 21)

FY 2020 -2021 All Funds Proposed Additional Staffing v WWTP Crew Leader – Public Works v Chemical Technician – Parks v Water Line Locator – Public Works v Parks Maintenance Worker – Parks v Drainage Technician – Public Works v Construction Inspector – Engineering v Fleet Coordinator – Public Works v Police Officer – PD (4) v Facilities Technician – Public Works v Administrative Assistant – PD v GIS Tech – GIS/Development v Building Inspector – Development v Life Connected Coordinator – Human Resources v Senior Planner – Planning/Development v Information regarding Step Plan 3 -3 -6 v Step of 3% to personnel

FY 2020 -2021 All Funds Significant One-Time Expenses v Capital Acquisition Fund v. Computer Servers $50, 000 v. Asphalt Patching Truck $180, 000 v. Preston Road Traffic Study $25, 000 v. Park Wi-Fi $50, 000 v. Trash Can Replacement $48, 000 v. Scoreboard Replacement $100, 000 v. Wayfinding System $150, 000

FY 2020 -2021 All Funds Significant One-Time Expenses v Integrity Fund v Façade Grants Expense $87, 500 v Neighborhood Integrity $50, 000 v Music on Square $15, 000 v Public Art $25, 000 v TIRZ #11 v Christmas in the Square $100, 000

Major CIP Projects – General Fund v v v Police Station, Phase I design - $1, 500, 000 Fire Station #3 Design - $1, 000 Downtown Patio Plaza design - $725, 000 Downtown Inner Loop Construction - $6, 500, 000 v Colorado from Walnut to Maple v Pecan from Colorado to Arizona v Beech from Colorado to Louisiana v Ohio from Beech to Pecan Choate Parkway from Preston Road to Kinship Parkway - $3, 600, 000 Frontier Parkway from Dallas Parkway to Preston Road - $5, 700, 000 Old Celina Park Phase 2 - $14, 000 Traditions Trail Flood Study - $50, 000 Old Celina Park Playground Expansion - $2, 000 Park Land Acquisition - $3, 000 Bonfire Land Purchase for Park Expansion - TBD

Major CIP Projects. Water/Wastewater v Six Million Gallon Above Ground Storage Tank - $9, 500, 000 v 24” Water Line on Coit Road from Sunset to CR 100 - $8, 700, 000 v 12” Water Line on N Preston Rd from Founders Lane to Settlers Ridge - $600, 000 v Design for 1 MGD Wastewater Plant Expansion - $1, 000 v Oklahoma Sewer Line Expansion - $1, 000

Economic Stabilization Fund v Establish FY 2020 - 2021 v To set aside some sales tax revenues in successful years to help in more fiscally lean years v Infrastructure/Public Needs