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Home My WebLink AboutFinancial Sustainability and Ad Valorem taxes presentation ' I I ,:,, � , �- „ . �� ° ` �° :- � � �:� �� .F r .i .. � .. .r ,,. �,� „�� k. i. The Problem This is Not New ii. Key Past Decisions VIL Why Not Wait? ~ ASSUMPTIONS: REALIZATIONS: GFf��b�owQO da��FY12�3 Sa�ataxrenuanef�t ~r~'~^''u � PT�� cannot nookedebt paynnentainFYi4-15 R�v�nu��inonaaa*3Y� FY11-12andfonward Expenditures Increase 3%FY11-12 and forward Includes General Major K8aintenanoeondVehicle&Replacement expenditures No Capital expenditures included T-N ijechning Fund Balancis 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 (2,000,000) FY 08/09 Audited FY 09/10 Estimated FY 10/11 Proposed FY 11/12 Estimated FY ... . ...... FY 13/14 Estimated (4,000,000) ------ . ...... --*—Revenues & Transfers in e -a--Expenditures & Transfers Out-- :Fund Balance z_'ID T his is Not New 1 r \ i � l / 4 t ;.- G bonds * Decision to fund all Town services largely with sales tax 0 Decision to use sales tax to pay debt service on r improvement a t s are " t with t tax pledge • Large Decision • bonds ,fit (voter approved) • Complexity of the Town's sales tax base, considerable "one-time" sales tax • Other A e sources o diverse o growing, often "one-time revenues-- WWI — provided a large one-time �of infusion into the General Fund masking the Town', Sales tax to economic recession Inability base to fund its infrastructure-, mow., • On -going revenues don't cover General Fund 40 expenditures • One -time revenues are unpredictable j °�z $4.0 .53.5 $3.0 $2.5 $2.0 50.5 tn n -$0.5 Town ot'Westlake Sales Tax Analysis w Base Sales Tax Economic Development Agreements n Audit Payments m Presumed One-Time Payments i"5 I Town of Westlake One-Time Permits &, Fees Ana1, ysi*4 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 FY 04/05 Actual FY 05/06 Actual FY 06/07 Actual FY 07/08 Actual FY 08/09 Actual FY 09/10 FY 10/11 Estimated Proposed del/Construction 6,04 Remaining Permits & Fees Lg Remo d Pt b cv, Expendl*tures Service t. — There is still no money foriffrastructure needs Budget times The 10% Across-the-board Cutleaves a $705,,000 Deficit estimate 20% Across-the-board Cut s $309,000 — There is still no money foriffrastructure needs Budget times The FY 10-11 Proposed Operating the FY 09-10 estimate 0 r%e Delive Kev Point RE: Servic Direct Service Delivery * Duct bank system management and billing * Capital project management and administration * Oversight and management of 11' wn outsourced ..0 X13t ii e i rs n!, i rvice contracts Some Current Outsourcing Examples Response i ime %,,omparlson t-1 Mutual Al*d impacts t,, Mutual Aid - informa] it g ald when necessary — Any house fire, major auto accident or natural disaster requires this type of assistance — All of our neighbors utilize mutual aid tr Mutual Aid Ma]j / Z0�pQb��CF�� _- ''^'� — \ \ \ ` \ ' ' ' / ' / ' Mutue-11 A'Od Map - No Westlake CL-1- ? IU PEI 111] T7' &Ke%Iler Fl*re/EMS Proposal- Responses are from existing station on Keller Smithfield Rd. Correct Information — Keller has no funding for a Joint station (nor do we) Westlake Town Manager initiated the Joint station discussion Total We stlake Staff (FTEs] FY 1999-2010 0 Town ':J t. Westlake Administrative Staff 0 Town --of Westlake Administrative Staff Town/Academy Duties c� Projected 2010 Daily Peak — J- *- - - - - 2 Cx L' HeaH, Municipal Workforce ad per Munl*cl*pa.i iL opulation Serve S i-own taff Non- Public y Operations Impact of Neighboring ulties' E "Ana, i �` � • MO *Trail Connections *Elevates demand for Fire /EMS mutual aid Point — this creates service demand on us ism eincreases in service demand over the past 10 years - Residential and Commercial Growth aUnique Service Delivery Model (cross utilization) - Dual Roles: Municipal Operations & Academy SuppoO Jhh,� liea icy CLI Pol IP Financu", 3 b i Proposed Bond-funded Capital Improvement Projects f_-C&MOAN PRnIFrT.C% Stagecoach Hills Street Reconstruction & Drainage - 83,500 338,714 - 260,000 338,714 Mahotea Boone Reconstruction & Drainage 10,000 67,056 - - - 67056 ,- Aspen Lane Reconstruction and Drainage 15,000 133,390 77777777777= 187,020 120,000 - 187,020 Dove Road Reconstruction & Drainage (Vaq - TS) '0 495,000 495,000 Roanoke Road Reconstruction & Drainage (N of 170) 243,048 - - - 243,048 Roanoke Road Reconstruction & Drainage (170-DC) 333,000 - 307,008 55,000 215,000 307,008 Ottinger Road Reconstruction & Drainage (WLA - Limits) 50,800 522,389 573,189 50,000 - 208,910 208,910 Sam School Road Reconstruction & Drainage W1, �T 7 100,000 - 100,000 Streets Survey 50,000 50,000 Flashing crosswalks - FM 1938 Streetscape/Wayfinding 110,000 645,160 914,320 1,626,420 774,000 1 3 959 900 ,, 01, Westlake Academy - Temporary Classrooms (X3) - 83,500 18,000 - 260,000 260,000 Trail - Pearson Ln. (Aspen-Dove) 0.5 miles 10,000 109,728 - - - 109,72 . 8 Westlake Academy -West Parking Improvements 15,000 133,390 77777777777= 120,000 - 120,000 -Dav! (FM 1938 - Glenwyck) 0.5 miles '0 _Trail Trail - Ottinger (WA - Cemetery) 0.25 miles - 260,000 - 260,000 333,000 25,975 55,000 215,000 628,975 Park Improvements 50,000 50,000 Glenwyck Playground Equipment Tgx W1, �T 7 , Westlake Academy - Temporary Classrooms (X3) - 83,500 18,000 18,000 13,500 133,000 Westlake Academy -Dining Hall Improvements 10,000 109,728 - - - 109,72 . 8 Westlake Academy -West Parking Improvements 15,000 133,390 77777777777= 133 390 , '0 A, yy lnl�� 4 M M gg Kqw, a A. WIN j", V� C� m 0 Follow-up from previous • The road to financial susta I inability • Tax rate scenarios-.- b k- 1 Real Estate Residential Property Totals *** $ 521 f898,037 $ 521,898,037 $ 532,335,998 $ 542,982,718 $ 553,842,372 2 Real Estate Commercial Property Totals 360,128,750 480,128,750 560,128,750 571,331,325 582,757,952 3 Personal Property Commercial 73,420,539 73,420,539 99,888,950 101,886,729 103,924,463 4 Agriculture Taxable Property Total 70 087;970 70,087,970 71,489,729 72,919,524 74,377,914 4 Ag Deferrals (Exemption) (6%824,195) (69,824,195) (71,220679) (72,645,092) (74, IA 7, A.AI. 5 Arbitration Cases estimated (82,881,010) (82,881,010) (84, 630) (86,229,403) (87,953,991 5 Incomplete Accounts (3,245,856) (3,245,856)- (3,310,773) (3,376,989)' (3,444,528 5 20% Homestead Exemption (66,574,802) (66,574,802) (67,906,298) (69,264,424) (70,649,712 5 Disabled Vets (12,000) (12,000) (12,240) (12,485) (12,734 5 Absolute Exemptions (6,038,661) (6,038,661) _(6,159,434)10 (6,282,623) (6,408,275 Tarrant Cty Certified Taxable Value 796,958,772 916,958,772 1,030,695,372 � 1,051,309,280 1,072,335,465 De County Taxable Property Total 1,352,244 1;352,244 1,352,244 1,379,289 1,406,875 Certified Taxable Value 798P3111016 918,3111016 1,032,047,616 1,052,688,569 1,073,742,340 7 Fidelity Phase I tax abatement/rebate (615675)718) - 8 Fidelity Phase 11 tax abatOrebate (thru FY 18-19) (72�036;961) (72�036,961) (73,477,700) (74,947,254) (76,446,200 10 Fid e* Phase 11 comm.,personal property.33% (3,683,339) (3,757,00• ) (3,832,146) (3,908,789) (3,986—,%' 11 Deloitte tax abatement/rebate (thru FY 20-21) (90,000,000) (150,000,000) (153,000,000) (156,060,00 12 Deloitte commercial personal property - - (18,750,000) (19,125,000) (19,507,50 Total Net Taxable Value 653,548,318 752,517,049 .785,98 .7,770 801,707,525 817,741,671 Assumption of 98% collection rate $ 640,477,352 $ 737,466,708 $ 770,268,014 $ 785,673,375 $ *** 65 and older taxable value represents $24,091,253 which is not included in the totals above Ad Valorem Scenarios MAINTENANCE INTEREST TOTAL ISSUEDAMOUNT FISCALYEAR & OPERATIONS & SINKING TAX RATE $6.21 10%11 0.1562 0.0152 0.1714 $6.21 11/12 0.1562 0.0589 0.2151 $6.21 12/13 0.1562 0.0586 0.2148 $8.75 13/14 0.1562 0.081 0.2372 P F ec Proposed Tax Rates Municipality FY 2010-2011 Collection Rate :Fort Worth Not released Burleson -- Hurst 0.4 Trophy Club 'Bedford 0.491 0. 8 34 1 2 �Euless 0.343905! 0. 1260951 Not releasecl� Southlake ;Flower Mound Not released Keller 99.10% Not released: S Not relea ecl� ,Roanoake Colleyville G-rapevine Westlake (FvB 10-11) Westlake (FY 11-12 Est) INNER P F ec [mpact by 'Home Valu4 ® Average home value in Westlake = $1,417,955 r, TIF's • They require approval from each taxing entity • Only the incremental taxis used • Their funds can only be used for Public Improvements, not private n. P $ t� Solvent Forecast eginning Fund Balance $ ota|Revenuem ota| Transfers |n ot@|Expenditures otel Transfers Out et Total oba| Restricted Funds nding Balance (pnojocted)__ /poratingDays eQinning Fund Balance $ ota|Revenuee ota| Transfers Out _ nding Balance (projected) 2/675,310 $ 3/400014 $ 3,283112 $ 3.120007 $ 2.825838 $ 2/40213: 4.889'244 3.891.181 4.091.911 4,183.846 4.270.130 4,348.48 80.000 18.000 18,540 19,098 19.889 28.251 (4.113'749) (3.990,335) (4.110.045) (4.233.348) (4,380,347) (4,491.157 58 3,400,014 3,283,112 3,126,007 2,825,838 2,402,132 2,198,43� 194,540 197,800 197,800 197,800 197,800 197,80( 284 282 260 227 185 16: 917,800 818,300 625,000 625,000 625,000 625,001 ASSUMPTIONS: Includes Property Tax based on Fifteen year forecast Sales tax remains flat Revenues Increase 396 annually from FYi1-12forward Expenditures |ncname396 annually from FY11-12forward Includes General Major K8aintenanoeandVehio|e&Rep|aoe0entexpenditunaS NO Capital expenditures included q U �, u-) f rE 43 t,an We Wait? • We have waited • Loss of fund balance • Impact on bond rating •Still have no means to address infrastructure eginnimg Fund Balance ota|Rexenu*o cta|Tnansfem In ota|Expendituoeo ota| Transfers Out let Total ota| Restricted Funds ndin0 Balance (proiecled) )peradn8Days at90 operating days |cy| Funds Needed of Sales Tax inc needed v It orecaST, ii we wce-ut ftr MA 1,350,324 $ 1,637,247 $ 1,516,196 $ 265/497 $ �te|Revenues 917,880 818,300 4,869,244 2,890,765 2,964,988 3,041,188 3,119,418 3,199,736 3,282,197 90,000 18,000 93,540 1,219,096 304,669 20,259 20,867 3,400,017 2,282,689 1,193,371 1,183,555 264,149 (587,450) (1,355,979) 194,540 197,800 197,800 197,800 197,800 197,800 197,80C �eginning Fund Balance 1,068,034 $ 1,350,324 $ 1,637,247 $ 1,516,196 $ 265/497 $ �te|Revenues 917,880 818,300 637,500 650,250 663,255 -ota| Transfers Out Ending Balance (pnojected) ASSUMPTIONS: Sales Tax increased 2% annually from FY11-12 Revenues increase 3Y6 annually from FY11-12 All expenditures remain flat from FY10'11 No Capital projects included Includes General Major Maintenance & Vehicle & Replacement expenditures (no Fire/EMS) �wJ,r 2, HE 1,554 3/48 676,520 69005 674,591) (659,591 What this Forecast Tells Us ►nom 44Begisn witn the end in mind. Stephen Covey Strategl*c s for a community; "Westlake is a one-of-a kind grazing longhorns, soaring red-tailed located in f .__ heart of the Fort Worth-Dallas metropolitan area. inviting neighborhoods and architecturally vibrant corporate campuse find harmony f amon our meanderin roads and trails, lined with ,yr native oaks F #` stone walls. - r, Westlake. A community, Y1i e fully involved r • invested in our rich heritage, dynamic /1g sustainable 1W IS thl"s stl*ll what we want to qi. 6 j