1. 2016 BUDGET OVERVIEW SANGER, TEXAS

2. BUDGET PHYLOSOPHY Conservative revenue estimates based on history. Expenditures based on history and anticipated cost increases. Capital Expenditures based on actual needs.

3. TIMELINE June 15 th Capital Projects Workshop. June 22 th Preliminary budget distributed to Council. July 6 th Budget Workshop. July 20 th Budget Workshop. August 1 st proposed budget filed with City Secretary. August 25 th Tax Roll Certified.

4. Organization of the Budget Budget Message Personnel Plan Summary Budget by Fund and Department Capital Improvement Plan

5. ORGANIZATION OF THE BUDGET Three Main Funds for Operations: ◦ General Fund ◦ Enterprise Fund ◦ Internal Service Fund Other Main Funds: ◦ Debt Service Fund ◦ Capital Improvement Fund ◦ 4A Economic Development Fund ◦ 4B Economic Development Fund

6. GENERAL FUND REVENUES Most revenues are flat. Sales Tax is up about 8%. Budgeted at 5%. Property Tax is trending up about 5%. Budgeted at 4%. Building permits and fees are slightly below projections but are expected to increase next year.

7. PROPERTY TAX

8. ENTERPRISE FUND REVENUES Are below projections due to a mild winter and abnormally wet spring. EF revenues can fluctuate dramatically due to weather. The good news is that when consumption is down, so is production costs and wholesale utility costs.

9. EXPENSES Radio re-banding for police department will require replacing all of their radios $110,000 6% expected increase in wholesale water costs. Increase in electric transmission and congestion costs. They have risen over 60% in the last three years.

10. ONGOING CAPITAL PROJECTS I35 water and sewer lines McReynolds Road Wastewater Treatment Plant Expansion Jones, Sims, Kirkland, Smith street rehabilitation New Water Wells Painting of Acker water tower and ground storage.

11. 2015 PERSONNEL CHANGES 2% Merit raise (Range 0-3%) Add Two full time equivalent employees in Fire (Staffed by part time employees). This will give us four personnel on duty 24 hours a day.

12. RESERVES We have one million in reserves in both General and Enterprise Fund. 2015 budget includes reserving 2% of electric revenue for storm recovery. Anticipated EOY balance $500,000. 2016 budget includes reserving 10% of sewer revenue for sewer capital improvements.

13. UTILITY RATES Increase sewer rates by 15% in anticipation of the bond payment for the sewer plant rehab and other improvements. Increase water rates by 6% to cover increase in wholesale water rates and increased cost of service. Add groundwater district fee of $2.00 per meter per month. Add $2.00 per month to cover increased transmission costs.

14. GENERAL NOTES Forcasting less available fund balance than in previous years. We will be slower to purchase Capital equipment as these are the only large discretionary expenditures we have.

15. General Fund Proposed

16. Enterprise Fund Proposed

17. Enterprise Fund Transfers

18. Internal Service Fund

19. Expenses By Classification

20. New Equipment General Fund Police: 1 New Patrol Vehicle, New Radios. Fire: New Rescue, Refurbish Ambulance (Lease Purchase). Last lease purchase payment on Ambulance and Brush Truck Streets: Lease Purchase Payment on Front end Loader, Backhoe, Dump Truck. Parks: 90” mower, tow behind blower, swing set for Switzer Park.

21. New Equipment Enterprise Fund Water: New 1 ton utility truck, new backhoe, painting Acker water tower. Electric: New Bucket Truck (Lease Purchase).

22. CONCLUSION The 2016 budget continues our focus on infrastructure improvement including rehabilitation of streets, water lines and sewer lines and the extension of infrastructure into potential commercial and industrial areas to spur growth. I commend the Mayor and Council on their forward thinking and planning for the future as well as their commitment to funding our infrastructure needs.

23. Property Tax Rate Certified Tax Roll increased 8% over last year. Proposed budget reflects a 4% increase. Current M&O revenue budgeted at $2,200,000 and I&S revenue at $790,000 Propose raising the M&O revenue projection to $2,300,000. Total budgeted revenues of $3,090,000. Projected Revenue of $3,165,144.

24. Possible uses Request received 7/29 from SPAN for $13,500 for Transportation assistance. Purchase of another police vehicle to maintain vehicle rotation, $42,000. Diversion of additional funds for streets. Other uses.