The URL can be used to link to this page

Home My WebLink AboutTC Budget Workshop presentation VISION, MISSION, STRATEGIC THEMES 2 An oasis of natural beauty that maintains our open spaces in balance with distinctive developments, trails, and quality of life amenities amidst an ever expanding urban landscape. Westlake is a unique community blending preservation of our natural environment and viewscapes, while serving our residents and businesses with superior municipal and academic services that are accessible, efficient, cost-effective, and transparent. Mission Statement Strategic Themes Natural Oasis Exemplary Service & Governance High Quality Planning, Design & Development Exemplary Education – Westlake Academy Vision Statement Town Council Budget Workshop - 08/08/14  “COMMUNITY GROWTH” Town Council Budget Workshop - 08/08/14 3 This year’s theme… On the Horizon Budget Themes, Trends & Overview •FY 2011-12 ~ “Investing in Our Future” •FY 2012-13 ~ “Driving Service Excellence” •FY 2013-14 ~ “Moving Forward Together: A Growing Community, A Growing School” Section 1 page 3-4  “COMMUNITY GROWTH” Town Council Budget Workshop - 08/08/14 4 On the Horizon FY13/14 Investments & Achievements 1.Achievement and recognition for our transparency efforts &fiscal stewardship 2.Invested in an update of our current Comprehensive Planning document 3.Invested in the 3rd iteration of our strategic plan (Balanced Scorecard System) 4.Invested in the Town’s open enrollment charter school 5.Achievements as Westlake Academy 6.Invested in the Town’s CIP Section 1 page 2-3  “COMMUNITY GROWTH” Town Council Budget Workshop - 08/08/14 5 On the Horizon FY14/15 Short Term Trends 1.Reinvestment in our community 2.Housing Start Increases 3.Permanent Population Growth 4.Daytime Population 5.Continued Impact of Westlake Academy on Residential Growth 6.Increase in Westlake Academy Overall Enrollment 7.Completion of Phase I Facility Improvements 8.Continued work on the Comprehensive Plan Section 1 page 4-5  “COMMUNITY GROWTH” Town Council Budget Workshop - 08/08/14 6 On the Horizon FY14/15 Long Term Trends 1.Continued Permanent Population Growth 2.Management of Development 3.Implementation of the Comprehensive Plan 4.Oversight of Enrollment Demands at Westlake Academy Section 1 page 5-6  7 FY 14/15 BUDGET OVERVIEW The FY 14-15 budgeted expenditures amount •totals $33,217,559 for ALL funds Fund Balance shows a reduction of $3.331M due primarily to •Capital Projects fund $1.161M •Internal Service Fund $738K •General Fund $725K This represents a 22% fund balance decrease Section 1 page 7 chart Compared to FY13/14 Estimated Budget Town Council Budget Workshop - 08/08/14  8 Page Fund Name Change Amount 22 – 44 General Fund -$725,655 45 – 52 Special Revenue Fund -$155,999 53 – 55 Debt Service Fund $11,865 56 – 59 Enterprise Funds -$326,435 60 – 65 Internal Service Funds -$738,125 66 Westlake Academy -$236,031 67 – 72 Capital Project Funds -$1,161,405 Total Change -$3,331,785 FY 14/15 BUDGET OVERVIEW Fund Balance Changes Compared to FY13/14 Estimated Budget Town Council Budget Workshop - 08/08/14 Section 1 page 7 chart  9 FY 14/15 BUDGET OVERVIEW If only municipal operating expenses were taken into consideration (removal of all expenses related to Capital Projects, Westlake Academy and Transfers) the FY 14/15 proposed budget would show an increase of 14% ($1,511,222 ) compared to the FY 13/14 estimated budget Compared to FY13/14 Estimated Budget Town Council Budget Workshop - 08/08/14 Section 1 page 15 line 35  10 $761K – Operating Expenditures Increase •$300K – future Westlake resident enrollment capacity •$214K – increased debt service payments (2014 General Obligation Refunding) •$200K – contingency for ordinance revisions/codifications, maps, and other updates •$100K – finalization of the 2014 Comprehensive Plan $759K – Increased Payroll & Related Expenditures •$198K – maintain current staff, performance pay, 3% market adjustments (3% WA $149K) •$135K – add 1 FTE Firefighter; add .50 deputy court clerk; change one .50 employee to FTE •$189K – transition two shared services employees to municipal budget •$236K – insurance, payroll taxes, workers comp, unemployment, retirement Section 1 page 6 & 7 FY 14/15 BUDGET OVERVIEW Compared to FY13/14 Estimated Budget Reasons for 14% Increase Town Council Budget Workshop - 08/08/14  11 Section 1 page 9 SUMMARY OF FY14/15 BUDGET Service Level Adjustments Base Budget compared to Proposed Budget Town Council Budget Workshop - 08/08/14 SERVICE LEVEL ADJUSMENT TYPE TOTAL AMOUNT ONE-TIME COSTS ON-GOING COSTS Operating Supplies/Services 815,513 136,020 679,493 Payroll and Related 543,211 0 543,211 Total Operating SLA Costs 1,358,724 136,020 1,222,704 Capital Improvement 7,828,789 7,715,305 113,484 Debt Service 259,114 0 259,114 Transfers Out (fund to fund) 2,295,750 1,846,245 449,505 Total All SLA Costs 11,742,377 9,697,570 2,044,807 83% one time 17% on-going Increased Revenues 7,668,740 5,281,245 2,387,498 69% one-time 31% on-going  12 SUMMARY OF FY14/15 BUDGET Utility Fund Town Council Budget Workshop - 08/08/14 The current water and waste water revenues are based on a rate adjustment that will be brought to Council in November for consideration of adopting. The new rates would become effective January 1, 2015. Factors contributing to the rate increase include: •Town’s wholesale water provider (Fort Worth) increased rates approximately 20% •Town’s wholesale waste water provider (TRA) increased rates approximately 25% •Phase I - $2.2 million CIP for Westlake’s proportional responsibility for a Fort Worth water main project to provide for an additional 8.5 MG totaling 16.0 MG, which will meet the ultimate water needs in Westlake. •Phase II – Fort Worth to Westlake Water Rate Changes  13 PROPERTY VALUE CHANGES ACROSS TARRANT COUNTY Town Council Budget Workshop - 08/08/14 A look at some of the cities in Tarrant County, their net taxable values and their percentage gain from the previous year. Overall, Tarrant County was valued at $135.6 billion, up 5.3 percent. 0% 5% 10% 15% 20% 25% 30% 35% 26.8M 18.9B 4.1B 45.9B 4.5B 6.2B 4.8B 564.9M Westlake Arlington North Richalnd Hills Fort Worth Keller Southlake Mansfield Haslet 3.1% 4.2% 5.4% 5.8% 6.1% 6.1% 6.4% 27.3% PER STAR -TELEGRAM ARTICLE  14 Section 1 page 10 AD VALOREM TAX RATE FY 10/11 Actual FY 11/12 Actual FY 12/13 Actual FY 13/14 Estimated FY 14/15 Proposed Total Appraised Value $1.025M $1.090M $1.213M $1.227M $1.258M percent change 6.37% 10.91% 1.48% 2.49% Net Taxable Value $880M $913M $864M $865M $880M percent change 3.74% -5.33% -1.29% 3.15% Property Tax Revenue $1.409M $1.432M $1.355M $1.357M $1.376M percent change 1.63% -5.33% -1.21% 2.73% Net Taxable Value increased by $26,875,626 (3.1%) over September’s supplemental information for FY 13-14. A large portion of the increase was attributable to •5.3% increase in Residential property values •3.7% decrease in Commercial property values Town Council Budget Workshop - 08/08/14 Based on July 2014 Certified Tax Roll  15 Section 1 page 19 AD VALOREM TAX RATE Town Council Budget Workshop - 08/08/14 Based on July 2014 Certified Tax Roll FY 10/11 Actual FY 11/12 Actual FY 12/13 Actual FY 13/14 Estimated FY 14/15 Proposed Total Appraised Value $1.025M $1.090M $1.213M $1.227M $1.258M percent change 6.37% 10.91% 1.48% 2.49% Net Taxable Value $880M $913M $864M $865M $880M percent change 3.74% -5.33% -1.29% 3.15% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Total Appraised Value Net Taxable Value $1,026 $880 $1,091 $913 $1,210 $864 $1,228 $853 $1,258 $880 Mi l l i o n s FY 10/11 Actual FY 11/12 Actual FY 12/13 Actual FY 13/14 Estimated FY 14/15 Proposed  16 AD VALOREM TAX RATE FY 13-14 Adopted FY 14-15 Proposed Change Amount General Fund M&O $0.13907 $0.13710 ($0.00197) Debt Service I&S $0.01777 $0.01924 $0.00147 Total $0.15684 $0.15634 ($0.0005) Town Council Budget Workshop - 08/08/14 Section 1 page 10 Proposed Tax Rate and Change  17 FUNDED CIP S UMMARY Section 10 page 83 PROJECT AMOUNT PROJECT DESCRIPTION STATUS 2,250,000 Municipal Building Land Purchase New 1,125,000 Fire Station Complex Land Purchase New 1,000,000 FM1938 Streetscaping 3rd & final year 902,806 WA Expansion Phase I Construction 2nd & final year 453,000 Roanoke Rd Reconstruction & Drainage South New 266,000 Sam School Rd Reconstruction & Drainage New 100,000 Dove Rd Reconstruction & Drainage Vaq -TB New 195,000 Trail & Park Improvements New 99,000 Outdoor Warning System FY 13/14 Carry Over 63,000 Water Line & Well Improvements New $6,453,806 TOTAL CAPITAL PROJECT FUNDS $250,000 TRA Assumption of N1 Sewer Line 10th year $38,500 Meter Reading Equipment New $288,500 TOTAL UTILITY FUND PROJECTS $6,742,306 TOTAL FUNDED PROJECTS Fiscal Year 2014/2015 Town Council Budget Workshop - 08/08/14  18 Town Council Budget Workshop - 08/08/14 Section 9 page 77 SCENARIO 1 ESTIMATED PROPOSED Projected Projected Projected Projected Projected Projected Projected FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 20-21 General Fund $5.897 $5.171 $4.885 $5.278 $4.778 $4.418 $4.446 $3.556 $3.000 Special Revenue Funds $1.070 $0.914 $0.773 $0.629 $0.484 $0.424 $0.426 $0.418 $0.401 Debt Service Funds -$0.012 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 Enterprise Funds $4.502 $4.028 $4.083 $4.436 $4.778 $5.106 $5.420 $5.719 $6.124 Internal Service Funds $1.183 $0.445 $0.632 $0.849 $1.094 $1.339 $1.579 $1.818 $2.057 Capital Project Funds $1.661 $0.500 $1.209 $3.053 $1.874 $1.874 $1.874 $1.874 $1.874 Projected Ending Fund Balance $14.301 $11.058 $11.582 $14.245 $13.009 $13.162 $13.745 $13.384 $13.456 PROJECTED ENDING FUND BALANCES 8 Year Forecast Shown in millions  19 Town Council Budget Workshop - 08/08/14 Section 9 page 73 Assumptions page 78 SCENARIO 1 ESTIMATED PROPOSED Projected Projected Projected Projected Projected Projected Projected FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 20-21 Beginning Fund Balance $5.813 $5.897 $5.171 $4.885 $5.278 $4.778 $4.418 $4.446 $3.556 Revenues & Transfers In $7.071 $7.935 $8.098 $8.611 $7.625 $8.068 $9.282 $8.502 $9.067 Expenditures & Transfers Out -$6.987 -$8.661 -$8.383 -$8.218 -$8.126 -$8.428 -$9.254 -$9.392 -$9.623 Net Total $5.897 $5.171 $4.885 $5.278 $4.778 $4.418 $4.446 $3.556 $3.000 Total Restricted Funds $0.265 $0.255 $0.260 $0.265 $0.271 $0.276 $0.282 $0.287 $0.293 Ending Balance (projected) $5.632 $4.916 $4.625 $5.013 $4.508 $4.142 $4.165 $3.269 $2.707 Operating Days 323 239 220 239 202 179 164 127 103 GENERAL FUND PROJECTION 8 Year Forecast Shown in millions  20 Using a 8 year, rather than 5 year period helps us see trends better Forecast assumptions •Municipal Revenues- both sales tax and ad valorem tax revenue growth held to a low percent of increase •Municipal Operating Expenses- modest increases forecast, no new personnel after FY14-15 except additional FF per year till we get to 4 per shift •Growth Due to Development- Entrada taken out, $10K per Granada lot transferred to WA Expansion Fund (a capital project) •CIP- includes debt issuance for land purchase in FY14-15 for fire station site and Town office building site Fund balances for these funds hold a good levels except for General Fund beginning in FY17-18 General Fund’s ability to fund current level of operating expenses, including WA related operating expenses funded in the municipal budget, as well as our CIP begins to diminish unless: •Ad valorem tax base grows at a greater rate than forecast, especially the commercial portion of that tax base •Sales tax revenues perform at higher level than forecast Without increases in those revenue streams, the ability to fund future facility needs for our public buildings, fire, office, and WA is not there. Would require an increase in the I&S portion of our tax rate. Town Council Budget Workshop - 08/08/14 WHAT THE GENERAL FUND PROJECTION IS SAYING … Section 9 page 78  21 Town Council Budget Workshop - 08/08/14 FUNDS ALLOCATED TO WESTLAKE ACADEMY AMOUNT DESCRIPTION 152,000 Transfer from GF to Academy - Additional personnel costs (net of grant funds) 40,000 Transfer from GF to Academy - Costs related to Executive Principal search 50,000 Transfer from GF to Academy - contribution for Technology needs 40,000 Transfer from GF to Academy – contribution for Facilities needs 500,000 Transfer from GF to WA Expansion (adopted 13/14) 130,000 Transfer from GF to WA Expansion (amended 13/14 for smart boards) $912,000 TOTAL ONE-TIME 300,000 Reserve Slots 325,000 Shared Services (existing) 189,000 Shared Services (additional 2 employees) 2,137,954 Debt Service Payments FY14/15 $2,951,954 TOTAL ON-GOING $3,863,954 TOTAL  22 NEXT MEETINGS Monday 08/25/14 Workshop Meeting Monday 09/22/14 Regular meeting, public hearing and adoption Town Council Budget Workshop - 08/08/14  23