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HomeMy WebLinkAbout09-24-12 TC Agenda packetThe Regular Meeting of the Town of Westlake Town Council will begin immediately following the conclusion of the Town Council Workshop but not prior to the posted start time. Mission Statement On behalf of the citizens, the mission of the Town of Westlake is to be a one-of-a-kind community that blends our rural atmosphere with our vibrant culture and metropolitan location. Westlake, Texas – A Premier Knowledge Based Community Page 1 of 4 TOWN OF WESTLAKE, TEXAS Vision Points Sense of Place; Leadership; Caring Community; Exemplary Governance; and Service Excellence TOWN COUNCIL MEETING AGENDA September 24 2012 WESTLAKE TOWN HALL 3 VILLAGE CIRCLE, 2ND FLOOR WESTLAKE, TX 76262 COUNCIL CHAMBERS / MUNICIPAL COURT ROOM Workshop Session: 5 :00 p.m. Regular Session 6:30 p.m. Page 2 of 4 Workshop Session 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. DISCUSS AND REVIEW OF CONSENT AGENDA ITEMS FROM SEPTEMBER 24, 2012, REGULAR MEETING . (30 min) 4. REPORTS Reports are prepared for informational purposes and will be accepted as presented. (there will be no presentations associated with the report items) There will be no separate discussion unless a Board Member requests that report be removed and considered separately. a. Glenwyck Farms HOA pond dredging report. b. Report on Results of the Town of Westlake 2012-2013 Salary Survey. 5. DISCUSSION ITEMS a. Presentation and discussion regarding Stagecoach Hills subdivision pavement analysis. (10 min) b. Presentation and discussion regarding SIGS Outcome Strategy 1.3 – FM 1938 completion. (10 min) c. Presentation and discussion regarding SIGS Outcome Strategy 10 – Environmental Preservation and Resource Conservation. (10 min) d. Discussion regarding department evaluation of Emergency Management training. (15 Min) e. Discussion of: i. Proposed Westlake Academy Facility Plan. ii. Five (5) Year Capital Improvement Plan to Include Review of Three (3) Specific New Currently/Unapproved/Unfunded Westlake Academy Capital Projects Proposed as Phase 1 of a Campus Building Improvement Program, as well as Review of the Operating Cost Pro-Forma, Project Timing, Site Plan, and Cost Estimates for Same. iii. Review of Town Council/Board of Trustees Financial Policy Pertaining to Debt Issuance and Debt Instruments. (30 min) 6. COUNCIL RECAP / STAFF DIRECTION 7. ADJOURNMENT Page 3 of 4 Regular Session 1. CALL TO ORDER 2. CITIZEN PRESENTATIONS AND RECOGNITIONS: This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council cannot by law take action nor have any discussion or deliberations on any presentation made to the Council at this time concerning an item not listed on the agenda. The Council will receive the information, ask staff to review the matter, or an item may be noticed on a future agenda for deliberation or action. Proclamation: Westlake Historical Marker Dedication Day on Saturday, September 29, 2012, for the Shockey-Huffman Homestead 3. CONSENT AGENDA: All items listed below are considered routine by the Town Council and will be enacted with one motion. There will be no separate discussion of items unless a Council Member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes from the meeting held on August 27, 2012. b. Consider approval of Resolution 12-31, Appointing two members to the Westlake Academy Foundation Board. c. Consider approval of Ordinance 685, Amending Ordinance 682 and Section 90- 79(3) to Establish a Speed Zone of 40 miles per hour on FM 1938 between the Town boundary and State Highway 114. 4. CONDUCT A PUBLIC HEARING AND CONSIDERATION OF ORDINANCE686, REVISING THE BUDGET FOR THE 2011-2012 FISCAL YEAR; ADOPTING THE BUDGET FOR THE TOWN OF WESTLAKE, TEXAS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2012 AND ENDING SEPTEMBER 30, 2013 INCLUDING INVESTMENT POLICY, FISCAL AND BUDGETARY POLICIES, COMMITTED AND ASSIGNED FUND BALANCES; PROVIDING AUTHORIZATION TO THE TOWN MANGER TO APPROVE APPROPRIATED FUNDS UP TO $25,000. 5. CONSIDERATION AND DISCUSSION OF ORDINANCE 687, LEVYING TAXES TO BE ASSESSED ON ALL TAXABLE PROPERTIES WITHIN THE TOWN LIMITS OF THE TOWN OF WESTLAKE FOR THE TAX YEAR 2012 (FISCAL YEAR 2012- 2013). 6. EXECUTIVE SESSION The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.087: Deliberation Regarding Economic Development Negotiations – to deliberate the offer of a financial or other incentive to a business prospect. Page 4 of 4 b. Section 551.071 Consultation with Attorney - to seek advice of counsel on legal matters involving pending or contemplated litigation, settlement offers, or other legal matters not related directly to litigation or settlement. Pending or contemplated litigation and settlement offers include but are not limited to the following: Michael Eaton vs. Town of Westlake 7. RECONVENE MEETING 8. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. 9. FUTURE AGENDA ITEMS: Any Council member may request at a workshop and / or Council meeting, under “Future Agenda Item Requests”, an agenda item for a future Council meeting. The Council Member making the request will contact the Town Manager with the requested item and the Town Manager will list it on the agenda. At the meeting, the requesting Council Member will explain the item, the need for Council discussion of the item, the item’s relationship to the Council’s strategic priorities, and the amount of estimated staff time necessary to prepare for Council discussion. If the requesting Council Member receives a second, the Town Manager will place the item on the Council agenda calendar allowing for adequate time for staff preparation on the agenda item. 10. STRATEGIC ISSUES CALENDAR 11. COUNCIL CALENDAR 12. ADJOURNMENT ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. CERTIFICATION I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, September 19, 2012, by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code. _____________________________________ Kelly Edwards, TRMC, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made to assist you. Town of Westlake Item # 2 – Pledge of Allegiance Texas Pledge: "Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible." CONSENT AGENDA: All items listed below are considered routine by the Town Council and will be enacted with one motion. There will be no separate discussion of items unless a Council Member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes from the meeting held on August 10, 2012. b. Consider approval of the minutes from the meeting held on August 27, 2012. c. Consider approval of Resolution 12-31, Appointing two members to the Westlake Academy Foundation Board. d. Consider approval of Ordinance 685, Amending Ordinance 682 and Section 90- 79(3) to Establish a Speed Zone of 40 miles per hour on FM 1938 between the Town boundary and State Highway 114. Town of Westlake Item # 2 – Review of Consent Agenda Items REPORTS Reports are prepared for informational purposes and will be accepted as presented. (there will no presentations associated with the report items) There will be no separate discussion unless a Council Member requests that report be removed and considered separately. a. Glenwyck Farms HOA pond dredging report. b. Report on Results of the Town of Westlake 2012-2013 Salary Survey. Town of Westlake Item # 4– Reports Page 1 of 2 estlake Town Council TYPE OF ACTION Workshop - Report Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Glenwyck Farms HOA pond dredging report. STAFF CONTACT: Jarrod Greenwood, Director of Public Works Troy J. Meyer, Director of Facilities and Park & Recreation DECISION POINTS Start Date Completion Date Timeframe: September 24, 2012 September 24, 2012 Funding: Amount - Status- N/A Source- N/A Decision Alignment VVM Perspective Desired Outcome Exemplary Governance Customer Focus CF.Provide Outstanding Service and Program Delivery Strategic Issue Outcome Strategy Staff Action N/A N/A N/A Strategy Map or VVM Connection Strategic Issue Connection Page 2 of 2 EXECUTIVE SUMMARY The Glenwyck HOA recently contacted Town staff for permission to utilize a portion of the park for their dredging operations. The proposed work is intended to remove silt from the pond that accumulated over a period of time creating shallow water conditions that are not conducive to healthy water and aquatic conditions. The silt will be placed in a large de-watering bag that will be hauled away once the work is completed. This work is expected to take approximately 3 weeks to complete. Staff will be meeting with the HOA and contractor and monitoring progress to minimize interference to residents and park visitors. ORGANIZATIONAL HISTORY/RECOMMENDATION 0T ATTACHMENTS Site location map 9/24/12 PROPOSED GLENWYCK POND DREDGING SITE MAP Page 1 of 2 estlake Town Council TYPE OF ACTION Workshop – Report Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Report on Results of the Town of Westlake 2012-2013 Salary Survey. STAFF CONTACT: Todd Wood, Director of HR & Administrative Services DECISION POINTS Start Date Completion Date Timeframe: October 1, 2012 September 30, 2013 Recommended salary adjustments would occur throughout the fiscal year. Funding: Amount - $100,000 (Note: this was submitted as a recommended Service Level Adjustment (SLA) in the Proposed FY12-13 Budget Status- N/A Source- General Fund, Utility Fund, Visitors Fund Decision Alignment VVM Perspective Desired Outcome Service Excellence Employee Investment and Support EIS.Attract & Retain a Highly Skilled Workforce Committed to Service Excellence Strategic Issue Outcome Strategy Staff Action Human Resources (Employee Investment) 5. Budget according to established service level provisions within departments. SA 08.1: Staffing Needs Strategy Map or VVM Connection Strategic Issue Connection Page 2 of 2 EXECUTIVE SUMMARY As a component of the FY 2012-2013 budget, salary adjustments were recommended as a Service Level Adjustment (SLA) to bring staff closer to market. Due to the distance from market, this program is recommended to occur over two (2) fiscal years. Phase 1 of this market adjustment is recommended to be implemented in FY12-13, and Phase 2 will be proposed for FY 13-14. Historically, most Town Staff salaries have been significantly behind the market for cities in the market (DFW Metroplex), where Westlake competes for employee talent. This two- year program is intended, from a policy perspective, to bring municipal employees in alignment with the compensation policy we have utilized for some time with our education employees by being within 3 percent of the median of the market. The Town of Westlake 2012-2013 salary survey is based on data from the Waters Consulting Group; the most widely used municipal salary database in the state of Texas. Where possible, data is collected for comparable positions from a list of “core cities”. Core cities surveyed include Keller, Southlake, Grapevine, Colleyville, Haltom City, Hurst, Euless, Bedford, North Richland Hills, Richland Hills, Roanoke, Trophy Club, and Watauga. However, data is not always reported for every position from these core cities, or the positions listed are not sufficiently comparable. For these reasons, data is obtained from alternate cities in the DFW area to supplement data provided from the core cities, in order to provide a sufficient sampling of the market in our geographical region. Alternate cities include: Addison Forney Little Elm Allen Frisco Melissa Azle Gainesville Red Oak Benbrook Garland Rockwall Burleson Granbury Saginaw Cedar Hill Highland Park Sherman Coppell Hudson Oaks Waxahachie Corinth Joshua Weatherford Denton Keller ISD White Settlement Duncanville Lancaster Wylie Farmers Branch Lewisville ORGANIZATIONAL HISTORY/RECOMMENDATION Town Staff arguably has the highest average levels of education, certification, and tenure of any municipality in the Dallas-Fort Worth metroplex. In addition to municipal-type duties, many Staff members provide significant levels of support to the shared services model with Westlake Academy; and this unique arrangement allows the entire organization to achieve higher levels of service across multiple disciplinary platforms at at lower cost. As a result, maintaining a competitive compensation package is essential for staff attraction and retention, as well as continued service excellence to our community. ATTACHMENTS Report, Exhibit “A” Exhibit “A” – FY 12/13 Salary Survey Results Results of the salary survey are listed below by position: Position Minimum Survey Average Maximum Survey Average Actual Aged Survey Average (10/01/2012) WL Delta from Actual Survey Aged Average Accounting Clerk (level I) $40,591 $57,723 $44,465 -18.0% Accounting Clerk (level II) $43,728 $63,657 $49,885 -10.8% Admin. Assistant (senior level) $35,628 $50,824 $44,701 +2.4% Asst. to Town Manager $80,606 $102,716 $97,971 -29.3% Communications Director $59,003 $86,960 $78,781 -7.9% Court Clerk $30,717 $43,004 $33,956 +7.9% Court Supervisor $39,976 $58,023 $47,044 -8.4% Finance Director $87,652 $127,605 $116,927 -4.2% Firefighter/Paramedic $47,182 $58,710 $52,823 -5.5% Firefighter/Paramedic – Lt. $58,909 $75,258 $66,580 -7.1% Fire Chief $85,303 $122,700 $104,731 -13.8% Facilities/Maintenance Technician $29,823 $43,857 $36,084 -6.9% Human Resources Director $80,569 $117,626 $102,559 -18.7% Parks & Rec/Facilities Director $66,648 $97,967 $84,486 -20.9% Planning & Development Director $72,868 $105,692 $95,022 -12.5% Public Works Director $74,540 $110,646 $95,397 -28.8% Town Marshal $42,419 $57,266 $55,339 -5.1% Town Secretary $66,762 $96,899 $81,640 -2.7% -35.00% -30.00% -25.00% -20.00% -15.00% -10.00% -5.00% 0.00% 5.00% 10.00%7.9% 2.4% -2.7% -4.2% -5.1% -5.5% -6.9% -7.1% -7.9% -8.4% -10.8% -12.5% -13.8% -18.0% -18.7% -20.9% -28.8% -29.3% Town of Westlake Salaries Market comparison of current positions FY 2012-2013 Salary data is aged forward to 10/1/2012 DISCUSSION ITEMS a. Presentation and discussion regarding Stagecoach Hills subdivision pavement analysis. (10 min) b. Presentation and discussion regarding SIGS Outcome Strategy 1.3 – FM 1938 completion. (10 min) c. Presentation and discussion regarding SIGS Outcome Strategy 10 – Environmental Preservation and Resource Conservation. (10 min) d. Discussion regarding department evaluation of Emergency Management training. (15 Min) e. Discussion of: i. Proposed Westlake Academy Facility Plan. ii. Five (5) Year Capital Improvement Plan to Include Review of Three (3) Specific New Currently/Unapproved/Unfunded Westlake Academy Capital Projects Proposed as Phase 1 of a Campus Building Improvement Program, as well as Review of the Operating Cost Pro-Forma, Project Timing, Site Plan, and Cost Estimates for Same. iii. Review of Town Council/Board of Trustees Financial Policy Pertaining to Debt Issuance and Debt Instruments. (30 min) Town of Westlake Item # 5 – Discussion Items Page 1 of 2 estlake Town Council TYPE OF ACTION Workshop - Discussion Item Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Presentation and discussion regarding Stagecoach Hills pavement analysis. STAFF CONTACT: Jarrod Greenwood, Director of Public Works DECISION POINTS Start Date Completion Date Timeframe: September 24, 2012 September 24, 2012 Funding: Amount - 0T Status- N/A Source- N/A Decision Alignment VVM Perspective Desired Outcome Exemplary Governance Operational Processes OP.Preserve our Infrastructure to Meet the Life Expectancy of our Assets Strategic Issue Outcome Strategy Staff Action Capital Investment 1. Existing Infrastructure Reinvestment (Current Assets) SA 05.3: Capital Reinvestment Strategy Map or VVM Connection Strategic Issue Connection Page 2 of 2 EXECUTIVE SUMMARY The adopted 5 year Capital Improvement Plan includes several street and drainage construction projects. • 2012 CIP Paving Projects: o Stagecoach Hills - 8” stabilized subgrade with 4” asphalt pavement, regrading of bar ditches, and replacement of drainage culverts as needed. This project is 100% complete but has not been accepted. Staff will conduct a final walk-through at the same time as Roanoke Road. o Roanoke Road (north of SH 170) - 8” stabilized subgrade with 4” asphalt pavement, regrading of bar ditches, and replacement of the existing metal culvert pipe and widen the roadway at the creek to provide a safer road. This project is 100% complete but has not been accepted. Staff will conduct a final walk-through at the same time as Stagecoach Hills project. As you are aware we experienced some cracking in the asphalt pavement in Stagecoach Hills subdivision. The Town’s engineer, Graham Associates, and staff have spent a considerable amount of time inspecting and testing the areas of pavement where the cracks have appeared. The geotechnical engineer that developed the roadway cross-section design has provided a comprehensive engineering analysis report (to be provided at the Council Meeting) that identifies cause of the cracks, as well as, repair recommendations. Additionally, we have consulted other municipalities and engineering professionals to determine what our surrounding communities are experiencing. Our research has concluded the cracks were caused by exceptional drought conditions and that the cracks extend well below the road construction work. ORGANIZATIONAL HISTORY/RECOMMENDATION 0T ATTACHMENTS Page 1 of 2 estlake Town Council TYPE OF ACTION Workshop - Discussion Item Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Presentation and discussion regarding SIGS Outcome Strategy 1.3 – FM 1938 completion. STAFF CONTACT: Jarrod Greenwood, Director of Public Works DECISION POINTS Start Date Completion Date Timeframe: September 24, 2012 September 24, 2012 Funding: Amount - 0T Status- N/A Source- N/A Decision Alignment VVM Perspective Desired Outcome Sense of Place Customer Focus CF.Enhance and Maintain a Sense of Community Strategic Issue Outcome Strategy Staff Action Capital Investment 6. Maximize the service provision level to our customers through the use of the shared services model, public/private partnerships, and implementation of innovative inter- governmental agreements. SA 01.3: FM 1938 Page 2 of 2 Strategy Map or VVM Connection Strategic Issue Connection EXECUTIVE SUMMARY FM 1938 is a major TxDOT project supported by Westlake, Keller, Southlake, and Tarrant County as a regional effort to facilitate the growing traffic congestion on residential streets. Planning for this project began many years ago, with project design work beginning in 2000. Phase 1 (Westlake’s section) of FM 1938, started construction on June 1, 2010 and is expected to be completed within the next month. The contractor has been working the last couple of weeks to finish with miscellaneous items including property restoration, drainage, planting grass/hydromulching, installing permanent soil erosion protection, pressure washing sections of roadway that have tire tracks from construction equipment, and getting the traffic signals at SH 114 operating. Realizing the economic, aesthetic, and quality of life impacts that this major corridor would have on Westlake, the Town Council approved Resolution 11-10 that included streetscape improvements for enhanced pavement (colors and textures), wheelchair ramps, and sidewalks that were to be constructed by the TxDOT contractor during FM 1938 road construction. As you may recall, the Town received a $670,000 landscape enhancement grant for FM 1938 medians last year. This work will begin within the next month and will be TxDOT managed project. Other FM 1938 streetscape improvements included in the adopted CIP that will be placed on future Council Agendas for approval will include landscape of the east and west right- of-ways, rest areas, trail heads, way finding, and light/signage post colors. ORGANIZATIONAL HISTORY/RECOMMENDATION 0T ATTACHMENTS Page 1 of 2 estlake Town Council TYPE OF ACTION Workshop - Discussion Item Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Presentation and discussion regarding SIGS Outcome Strategy 10 – Environmental Preservation and Resource Conservation. STAFF CONTACT: Jarrod Greenwood, Director of Public Works DECISION POINTS Start Date Completion Date Timeframe: September 24, 2012 September 24, 2012 Funding: Amount - 0T Status- N/A Source- N/A Decision Alignment VVM Perspective Desired Outcome Exemplary Governance Customer Focus CF.Provide Outstanding Service and Program Delivery Strategic Issue Outcome Strategy Staff Action Comprehensive Planning and Management of Natural Resources 10. Investigate and review of environmental preservation and conservation opportunities. SA 10.2: Compare Programs Strategy Map or VVM Connection Strategic Issue Connection Page 2 of 2 EXECUTIVE SUMMARY The Town’s 2011 Strategic Plan utilizes the Strategic Issues-Focused Governance System in order to more efficiently identify “opportunities and challenges as it relates to our community and develop action plans to achieve the best results for Westlake.” Included in the Strategic Plan are outcome strategies developed to help manage and protect our natural resources. In reviewing items 10.1 and item 10.2 staff felt it would be better served to present both items at one time as they are directly related and affected by each other. Staff Action item 10.1 on page 13 directs staff to provide a report showing conservation efforts that would benefit Westlake citizens. Staff Action item 10.2 also on page 13 directs staff to identify programs offered by surrounding communities and their estimated cost to implement. ORGANIZATIONAL HISTORY/RECOMMENDATION 0T ATTACHMENTS Page 1 of 2 estlake Town Council TYPE OF ACTION Workshop - Discussion Item Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Discussion of evaluation of all departments Emergency Management training STAFF CONTACT: Richard Whitten, Fire Chief DECISION POINTS Start Date Completion Date Timeframe: September 1, 2012 September 21, 2012 Estimated timeframe provided by Hillwood… Funding: Amount - 0T Status- Funded Source- N/A 0T Decision Alignment VVM Perspective Desired Outcome Service Excellence Customer Focus CF.Promote Community Health, Safety & Welfare Strategic Issue Outcome Strategy Staff Action Public Safety and Emergency Preparedness 12. Plan and inplement strategies to enhance the emergency preparedness of the residents and Town facilities. SA 12.1: Emergency Training Strategy Map or VVM Connection Strategic Issue Connection Page 2 of 2 EXECUTIVE SUMMARY Following September 11, 2001, the Federal Government developed the first standardized national incident management system under the Department of Homeland Security. The National Incident Management System (NIMS) is an all hazard multi-jurisdictional command management structure. Although it is not required, it is recommended that all agencies enact NIMS. However, for an agency to be eligible for Homeland Security grant money, agencies must be NIMS compliant. The benefits of NIMS area: • Standardized organizational structures, processes and procedures; • Standards for planning, training, and exercising; • Personnel qualifications; • Equipment acquisition and certification standards; • Interoperable communications processes, procedures, and systems; • Information management systems with a commonly accepted architecture. ORGANIZATIONAL HISTORY/RECOMMENDATION The town adopted Resolution 05-32 recognizing the importance of a uniform management tool to operate under in the event of a large-scale emergency and as such, adopting the National Incident Management System (NIMS) as that tool. ATTACHMENTS Report, Exhibit A Submitted by Richard Whitten Fire Chief September 24, 2012 2 | Page INTRODCUTION In the aftermath of the September 11, 2001 terrorist attacks on the United States, the “9/11 Commission” recommended the national adoption of the Incident Command System (ICS) to enhance command, control, and communications capabilities. In Homeland Security Presidential Directive -5 (HSPD-5), President Bush instructed the Homeland Security to develop a national incident management system to provide a consistent nationwide approach for federal, state, and local governments to work together to prepare for, prevent, respond to and recover from domest ic incidents, regardless of cause, size or complexity. On September 12, 2005, the town adopted a resolution (Resolution No. 05-32) recognizing the importance of a uniform management tool for all departments to operate under in the event of an emergency and as such, adopted the National Incident Management System (NIMS) as that tool. ACTION PLAN In the first phase of the emergency preparedness program, staff will complete emergency management classes. The United States Fire Academy and Emergency Management Institute provide training classes at no cost to municipal entities. Based on response levels, there are a series of classes that must be completed for NIMS compliance. There are four response levels (Entry Level, First Line Response, Middle Management [EOC Staff], and Command and General Staff [Area, Emergency, and EOC Managers]). The second phase includes a review of and implementation of Town/Academy Standard Operating Procedures and emergency plans to maintain readiness. The second phase is Staff Action 12.2 in the Town’s Strategic Issues. It is scheduled for completion in December 2012. The third phase of the emergency preparedness program is inventory and identifying availability of recommended Emergency Operations Center components i.e., emergency operations center/safe room, computers, TVs, Code Red quick notification system, outdoor 3 | Page warning system, maps, tables, and chairs. The third phase is scheduled for completion June 2013. DEPARTMENT TRAINING During the next six months, town staff will complete all necessary training for the Town of Westlake to become NIMS compliant. A schedule of completion dates will be provided to each Leadership Team member who will be responsible for ensuring that employees within their department complete the required training. The majority of classes are available to complete online through the Emergency Management Institute’s website. Classes include:  ICS-100  IS-700  ICS-200  ICS-300  ICS-400  IS-800 U.S. Department of Homeland Security, FEMA, Emergency Management Institute, NIMS Training: http://training.fema.gov/IS/Nims.asp Page 1 of 3 estlake Town Council TYPE OF ACTION Workshop - Discussion Item Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Discussion of: A. Proposed Westlake Academy Facility Plan. B. Five (5) Year Capital Improvement Plan to Include Review of Three (3) Specific New Currently/Unapproved/Unfunded Westlake Academy Capital Projects Proposed as Phase 1 of a Campus Building Improvement Program, as well as Review of the Operating Cost Pro-Forma, Project Timing, Site Plan, and Cost Estimates for Same. C. Review of Town Council/Board of Trustees Financial Policy Pertaining to Debt Issuance and Debt Instruments. STAFF CONTACT: Tom Brymer , Town Manager / Superintendent DECISION POINTS Start Date Completion Date Timeframe: October 1, 2012 September 30, 2013 Annual budget. Funding: Amount - $8,500,000 Status - N/A Source - Proposed Issuance of New Certificates of Obligation Decision Alignment VVM Perspective Desired Outcome Exemplary Governance Leadership Financial Stewardship Customer Focus FS. Sustain Fiscal Health CF/ Provide Outstanding Service and Program Delivery Strategic Issue Outcome Strategy Staff Action Page 2 of 3 Fiscal Stewardship & Organizational Effectiveness Capital Investment 5. Budget according to established service level provisions within departments 3. Policy & Cost Analysis Driven by Growth (Future Assets) SA 05.1: Budget Preparation SA 3.3: Evaluate Westlake Academy campus needs and expansion options Strategy Map or VVM Connection Strategic Issue Connection EXECUTIVE SUMMARY The Town Council held a workshop on the Proposed FY 12-13 Municipal Budget on August 10, 2012. Discussion at that worksho p included a draft facility plan and associated possible capital projects for Westlake Academy. Westlake Academy facility improvements were also discussed at a Board of Trustees workshop meeting on August 13, 2012, and again at the Town Council’s Workshop on August 27, 2012. This agenda item is intended to follow-up from t he Council’s August 27th meeting where Council’s direction to Staff was to move forward with Phase 1 of campus improvements recommended in the proposed facility plan for Westlake Academy. Phase 1 improvements would consist of a new secondary class room building, a cafetorium building (with a stage), and a field house (locker rooms and storage space for athletic equipment) at an estimated cost of $8.5 million. Council also indicated at the August 27th meeting a desire to continue review of the pro-forma/five year forecast for this proposed project as it related to class size for K -G5 and for G6-G12. Funding for this project is proposed to come from issuance of $8.5 million of certificates of obligation issue. These certificates of obligation can be serviced by the Town without impacting the ad valorem tax rate. The debt service payment for this proposed issue, based on the Town Council’s August 27th direction to Staff, is contained in the Proposed FY12-13 Budget scheduled for Council’s consideration for adoption at the September 24th Regular Meeting. ORGANIZATIONAL HISTORY/RECOMMENDATION Staff recommends that the Town Council discuss at the workshop the information on the topics included in this agenda item, and then provide Staff any final feedback/direction regarding moving forward on this proposed $8.5 million certificate of obligation for these WA proposed capital improvements. ATTACHMENTS 1. Pro-forma/5 year forecast presented at the 8-27-12 Town Council workshop regarding WA operating costs as related to a Staff recommended “going forward” enrollment Page 3 of 3 scenario for K-5 and G6-G-12 class sizes in conjunction with the Proposed Phase 1 WA campus improvements. 2. Phase 1 Westlake Academy preliminary construction cost estimates and draft master site plan. 3. Excerpt from Town Council’s approved financial policies related to debt management, debt issuance, and debt instruments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 ABCLMNOPQRWX Fiscal Year Audited FY 10/11 Estimated 11/12 Adopted 12/132013/142014/152015/162016/17 GENERAL FUND BEG. BALANCE $ 767,490 $ 914,660 $ 657,994 $ 686,484 $ 681,210 $ 865,553 $ 1,136,107 REVENUES Local Revenues WAF Salary Reimbursement65,003 31,662 54,594 55,685 57,356 59,076 60,849 Gifts & Donations - WAF - - - - - - Other Local Revenue 28,035 58,000 28,000 59,740 61,532 63,378 65,280 WAF Blacksmith 524,038 680,000 720,000 720,000 872,966 888,300 898,631 Interest Earned 2,295 1,278 2,500 1,316 1,355 1,396 1,438 Food Services 2,000 3,000 3,000 3,090 3,183 3,278 3,377 Donations 3,950 - 303,700 300,000 300,000 300,000 300,000 Athletic Activities 49,198 35,922 33,500 39,000 40,170 41,375 42,616 Transportation/Parking 7,996 23,250 35,000 35,700 36,771 37,874 39,010 Total Local Revenues 682,515 833,112 1,180,294 1,214,531 1,373,332 1,394,677 1,411,201 State Revenue - - - - 1 1 TEA - FSP Funds 3,744,757 4,133,603 4,260,809 4,260,809 5,132,236 5,379,057 5,441,620 TRS On-behalf/Medicare Part B 181,301 234,803 227,452 268,517 344,743 355,012 365,588 Total State Revenues 3,926,058 4,368,406 4,488,261 4,529,326 5,476,979 5,734,069 5,807,209 TOTAL REVENUES 4,608,573 5,201,518 5,668,555 5,743,857 6,850,311 7,128,746 7,218,409 EXPENDITURES Object Code 61XX - Salaries 3,292,938 3,913,390 4,387,525 4,475,275 5,396,426 5,541,699 5,691,320 Object Code 62XX - Prof. Contracted Services 791,907 1,056,202 719,490 733,880 1,013,501 1,043,906 1,075,224 Object Code 63XX - Supplies & Materials 221,871 223,211 240,936 244,550 251,887 259,443 267,226 Object Code 64XX - Other Operating Costs 211,391 195,954 279,274 282,067 290,529 299,245 308,222 Object Code 65XX - Debt Service - - - - - - Object Code 66XX - Capital Assets - - - - - - - TOTAL EXPENDITURES 4,518,107 5,388,757 5,627,225 5,735,772 6,952,343 7,144,293 7,341,992 OTHER RESOURCES/USES Other Resources 104,844 44,823 38,460 39,230 40,014 - Other Resources - - - 300,000 300,000 300,000 Other Resources (Water Damage)659,704 - - - - - - Sub-Total Other Resources 659,704 104,844 44,823 38,460 339,230 340,014 300,000 Extraordinary Item (Water Damage)(603,000) (49,807) Other Uses - (124,464) (57,663) (51,819) (52,856) (53,913) - Sub-Total Other Uses (603,000) (174,271) (57,663) (51,819) (52,856) (53,913) - Excess Revenues Over (Under) Expenditures 147,170 (256,666) 28,490 (5,274) 184,342 270,554 176,417 GENERAL FUND ENDING BALANCE 914,660 657,994 686,484 681,210 865,553 1,136,107 1,312,524 Assigned - Technology/FFE 100,000 - - - - - - Assigned - Uniform/Equipment Replacement 15,810 3,684 - 14,838 14,838 14,838 14,838 Assigned - Facility Maintenance/FFE - - ENDING FUND BALANCE 798,850 654,310 686,484 666,372 850,715 1,121,269 1,297,686 12,155 13,752 13,973 14,391 14,821 14,821 905,177 # of Operating Days (based on 365)65 44 45 42 45 57 65 Students Enrolled Primary 296 308 334 321 399 399 399 Secondary 222 313 330 338 395 409 418 Total Students Enrolled 518 621 664 659 794 808 817 Teaching Staff Primary 21.921.9 21.23 21.2332.1632.1632.16 Secondary 17.7520.1422.722.722.1622.1622.16 Total Teaching Staff 39.6542.0443.9343.9354.3254.3254.32 Income Statement ‐ Option 2 Hybrid C 3 Sections Whole School (18 Students (GK‐G5) / 25 Students (G6‐G12)) 9/18/2012 500 West 7th Street, Suite 1400 | Fort Worth, Texas 76102 817.335.4991 | www.bbptx.com Tom Brymer Town Manager/ Superintendent Town of Westlake/Westlake Academy 3 Village Circle, Suite #202 Westlake, Texas 76262 RE: Westlake Academy Preliminary Construction Cost Estimates and Draft master Plan Dear Tom: I am writing to provide a brief overview of the construction cost estimates that we have received, as well as to provide a copy of the draft illustrative campus facilities master plan, which is attached as Exhibit A. Over the past few months, our team has worked in conjunction with Westlake Academy staff and representatives to develop a variety of programming and master planning scenarios related to current and future enrollment on the campus. During our discussions it was determined that the ideal course for phase one of the campus expansion would be to build a new cafetorium, a new field house and a secondary school building. Working with these three buildings as phase one, we requested construction cost estimates from both Sedalco and AUI Contractors which are attached as Exhibit B and Exhibit C respectively. The construction cost estimates that we received do not include site work, design and engineering, IT/Security or FFE expenses. In order to provide you with all-in construction costs we have included these fees as a percentage of estimated hard costs. Additionally, we have included a 10% contingency to the estimate. Shown below is the average cost estimates from the two contractors for phase one as described above. Hard Costs Square Feet Price per Square Foot Total Cost Cafetorium 9,600$150.20$1,441,881 Field house 9,595$127.63$1,224,583 Secondary School 18,893 $172.09 $3,251,279 Hard Costs 38,088$155.37$5,917,743 Owners Contingency 10%$591,774 Total Hard Costs $6,509,517 Soft Costs Total Hard Costs Percentage of Hard Costs Total Design/Engineering $6,509,51710.0%$650,952 Sitework $6,509,51712.5%$813,690 IT/Security $6,509,5175.0%$325,476 FFE $6,509,517 10.0%$650,952 Total Soft Costs $2,441,069 Total Costs $8,358,811 OPTION 1 Built at same Time Cafetorium 9,600 170.00$ 1,632,000$ General Classroom Bldg (12th grade)3,200 195.00$ 624,000$ Arts/Science W/ Admin Space 2,660 180.00$ 478,800$ 15,460 2,734,800$ Built in Phases Cafetorium 9,600 192.00$ 1,843,200$ General Classroom Bldg (12th grade)3,200 209.75$ 671,200$ Arts/Science W/ Admin Space 2,660 194.00$ 516,040$ 15,460 3,030,440$ OPTION 2 All Buildings Phase out - Option 1 Cafetorium 4,360 214.00$ 933,040$ Secondary School/Science Building 17,960 214.00$ 3,843,440$ Media Center 3,352 274.50$ 920,124$ Auditorium/Performance Hall 13,215 252.50$ 3,336,788$ Field House 8,380 126.00$ 1,055,880$ 47,267 10,089,272$ All Buildings Phase out - Option 2 Cafetorium 4,360 214.00$ 933,040$ Secondary School/Science Building/Media 21,312 221.59$ 4,722,526$ Auditorium/Performance Hall 13,215 252.50$ 3,336,788$ Field House 8,380 126.00$ 1,055,880$ 47,267 10,048,234$ All Building Built at Once Cafetorium 4,360 190.00$ 828,400$ Secondary School/Science Building 17,960 190.00$ 3,412,400$ Media Center 3,352 245.00$ 821,240$ Auditorium/Performance Hall 13,215 225.00$ 2,973,375$ Field House 8,380 110.00$ 921,800$ 47,267 8,957,215$ WESTLAKE ACADEMY PRELIMINARY BUDGET July 20, 2012 WESTLAKE ACADEMY PRELIMINARY BUDGET July 20, 2012 OPTION 3 All Buildings Phase out - Option 1 Cafetorium 5,700 203.00$ 1,157,100$ Secondary School & Media Center 28,170 218.14$ 6,144,990$ Kindergarten Building & Science Building 7,060 196.84$ 1,389,693$ Auditorium 15,215 252.50$ 3,841,788$ Field House 9,595 126.00$ 1,208,970$ 65,740 13,742,540$ All Buildings Phase out - Option 2 Cafetorium 5,700 203.00$ 1,157,100$ Secondary School 23,670 219.50$ 5,195,565$ Media Center 4,500 274.50$ 1,235,250$ Kindergarten Building & Science Building 7,060 196.84$ 1,389,690$ Auditorium 15,215 252.50$ 3,841,788$ Field House 9,595 126.00$ 1,208,970$ 65,740 14,028,363$ All Building Built at Once Cafetorium 5,700 180.00$ 1,026,000$ Kindergarten Building 5,200 175.00$ 910,000$ Secondary School 23,670 195.00$ 4,615,650$ Media/Library Center 4,500 245.00$ 1,102,500$ Auditorium/Performance Hall 15,215 225.00$ 3,423,375$ Specialized Classrom Building 1,860 185.00$ 344,100$ Field House 9,575 110.00$ 1,053,250$ 65,720 12,474,875$ OPTION 4 All Building Built at Once Cafetorium 9,600 170.00$ 1,632,000$ Field House 9,575 110.00$ 1,053,250$ Secondary School 18,893 195.00$ 3,684,135$ 38,068 6,369,385$ Qualifications: Budget is based on cost history of past similar projects and adjusted as applicable for phasing of the buildings. Building cost excludes all work 5' outside of building line - site grading, site utilities, pavement, sidewalks, landscape & irrigation, site grading, pavement markings, etc. WESTLAKE ACADEMY PRELIMINARY BUDGET July 20, 2012 Budget is based on description in attached email. Budget is based on attached site plan options dated 6/21/2012. Assume standard pier & beam foundations with uncased 10' pier depth. Building pads to be 10' moisture conditioned soils. No other sitework other than building pads are included. Excludes franchise utility fees. Excludes all city related fees (permit, impact, plan review, etc) Ecludes all material testing. Excerpt from FY 2012-13 Fiscal and Budgetary Policies VII. DEBT MANAGEMENT A. Debt Issuance Analysis - All consideration of debt issuance for major capital assets will be prepared within the framework of a Council approved multi-year capital improvement plan and forecast for all Town facilities and infrastructure. B. Analysis of Debt Issuance and Debt Issuance Alternatives - Staff will explore alternatives to the issuance of debt for capital acquisitions and construction projects. These alternatives will include, but not be limited to, (1) grants-in-aid, (2) use of reserves, (3) use of either current on-going general revenues or one-time revenues, (4) contributions from developers and others, (5) leases, (6) user fees, and (7) impact fees. C. Use of Debt Financing - The useful life of the asset or project shall, at a minimum, exceed the payout schedule of any debt the Town assumes. Debt financing instruments to be considered by the Town may include: • General obligation bonds - These must be authorized by a vote of the citizens of Westlake. • Revenue bonds - These bonds generate capital requirements necessary for continuation or expansion of a service which produces revenue and for which the asset may reasonable be expected to provide for a revenue stream to fund the debt service requirement. • Certificates of obligation - These can be authorized by Council approval with debt service by either general revenues or backed by a specific revenue stream or a combination of both. • Lease/purchase agreements - These shall only be used to purchase capital assets that cannot be financed from either current revenues or fund balance/retained earnings and to fund infrastructure improvements and additions. D. Assumption of Additional Debt - The Town shall not assume more tax-supported general purpose debt than it retires each year without first conducting an objective analysis as to the community's ability to assume and support additional debt service payments. E. Affordability Targets - The Town shall use an objective multi -year analytical approach to determine whether it can afford to assume new general purpose debt beyond what it retires each year. This process shall compare generally accepted standards of affordability to the current values for the Town. The process shall also examine the direct costs and benefits of the proposed expenditures. The decision on whether or not to assume new debt shall be based on these costs and benefits and on the Town's ability to "afford” new debt as determined by the aforementioned standards. The Town shall strive to achieve and/or maintain these standards at a low to moderate classification. F. Debt Structure - The Town shall structure its debt payment schedules for general purpose debt to ensure level principal repayment schedules. The Town shall not assume any debt with "balloon' repayment schedules which consist of low annual payments and one large payment of the balance due at the end of the term. While balloon payment structures minimize the size of debt payments during the period, they force a large funding requirement on the budget of the final year. Given the uncertainties of the future, level payment schedules improve budget planning and financial management. G. Sale Process - The Town shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a negotiated bid. The Town shall award bonds based on a true interest cost (TIC) basis as long as the financial advisor agrees that the TIC basis can satisfactorily determine the lowest and best bid. H. Bond Rating Agencies Presentations - Full disclosure of operations and open lines of communication shall be made to the bond rating agencies. Town staff, with assistance of financial advisors, shall prepare the necessary materials and presentation to the bond rating agencies. I. Continuing Disclosure - The Town is committed to continuing disclosure of financial and pertinent credit information relevant to the Town's outstanding securities. J. Debt Refunding - Town staff and the financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the present value savings of a particular refunding should exceed 3.5% of the refunded maturities. BOARD RECAP / STAFF DIRECTION Town of Westlake Item #6 Board Recap / Staff Direction Town of Westlake Item # 7 – Workshop Adjournment Back up material has not been provided for this item. CITIZEN PRESENTATIONS AND RECOGNITIONS: This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council cannot by law take action nor have any discussion or deliberations on any presentation made to the Council at this time concerning an item not listed on the agenda. The Council will receive the information, ask staff to review the matter, or an item may be noticed on a future agenda for deliberation or action. Proclamation: Westlake Historical Marker Dedication Day on Saturday, September 29, 2012, for the Shockey-Huffman Homestead Town of Westlake Item # 2 – Citizen’s Presentations and recognitions Town of Westlake Proclamation WHEREAS, the Westlake Historical Preservation Society finds that there are several sites within the Town of Westlake worthy of historical note and have petitioned the Town of Westlake Town Manager and Staff to begin a historical marker program; and WHEREAS, the Westlake Historical Preservation Society finds that these sites identified within the town limits of Westlake are believed to be of enough historical significance to permanently mark and will chair/coordinate these efforts with town staff to help promote the love and interest of history in Westlake; and WHEREAS, while these identified historical sites in Westlake may not meet all of the standards to be designated as an official State of Texas historical marker, they do meet the standards as set by the Westlake Historical Preservation Society for a local marker after appropriate research and thus believe a town marker is appropriate; and WHEREAS, the Town of Westlake, along with the Westlake Historical Preservation Society, will celebrate our second Westlake historical marker dedication day by holding a brief ceremony and sharing t he researched historical story and significance behind the Shockey-Huffman Homestead, located on the current Solana Business Park site at 3 Village Circle in the town of Westlake. NOW, THEREFORE, I, Laura Wheat, Mayor of the Town of Westlake, Texas, do hereby proclaim this referenced site and day on Saturday, September 29, 2012 as a: Westlake Historical Marker Dedication Day for the Shockey-Huffman Homestead In the town of Westlake, Texas and encourage all Westlake residents, including any Westlake Academy family members and all history enthusiasts throughout our area to participate in this second, and any future, Westlake Historical Marker Dedication Day. IN WITNESS WHEREOF, I have hereunto set my hand and caused the official seal of the Town of Westlake, Texas, to be affixed this 24th day of September 2012. _________________________________ Laura Wheat, Mayor CONSENT AGENDA: All items listed below are considered routine by the Town Council and will be enacted with one motion. There will be no separate discussion of items unless a Council Member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes from the meeting held on August 10, 2012. b. Consider approval of the minutes from the meeting held on August 27, 2012. c. Consider approval of Resolution 12-31, Appointing two members to the Westlake Academy Foundation Board. d. Consider approval of Ordinance 685, Amending Ordinance 682 and Section 90- 79(3) to Establish a Speed Zone of 40 miles per hour on FM 1938 between the Town boundary and State Highway 114. Town of Westlake Item # 3 - Consent Agenda Items Town Council Minutes 08/27/12 Page 1 of 6 MINUTES OF THE TOWN OF WESTLAKE, TEXAS TOWN COUNCIL MEETING August 27, 2012 PRESENT: Mayor Laura Wheat and Council Members, Michael Barrett, Clif Cox, David Levitan, Carol Langdon, and Rick Rennhack. ABSENT: OTHERS PRESENT: Town Manager Tom Brymer, Town Secretary Kelly Edwards, Assistant to the Town Manager Amanda DeGan, Town Attorney Stan Lowry, Finance Director Debbie Piper, Planning and Development Director Eddie Edwards, Facilities and Recreation Director Troy Meyer, Director of Public Works Jarrod Greenwood, Fire Chief Richard Whitten, Director of Communications & Community Affairs Ginger Awtry, PYP Principal Rod Harding, MYP Principal Clint Calzini and WA Administrative Coordinator Ben Nibarger. Workshop Session 1. CALL TO ORDER Mayor Wheat called the workshop to order at 5:60 p.m. 2. PLEDGE OF ALLEGIANCE Mayor Wheat led the pledge of allegiance to the United States and Texas flags. 3. DISCUSS AND REVIEW OF CONSENT AGENDA ITEMS FROM AUGUST 27, 2012, REGULAR MEETING. Town Manager Brymer provided an overview of the final version of the Hillwood 380 agreement. Town Council Minutes 08/27/12 Page 2 of 6 Mr. Joe Schenider, Hillwood, answered questions regarding the timing and completion of the Dove Road project. Facilities and Recreation Director Meyer provided an overview of the school traffic flow for the PYP entrance. Mayor Laura stated a change the wording on the August 10, 2012 minutes to read as follows “They would also like to know the number of students we would need, in order to issue debt without increasing the property tax while leaving room for Westlake families”. 4. PRESENTATION BY MR. BERT LUMBRERAS, ASSISTANT CITY MANAGER OF AUSTIN, AWARDING THE TEXAS CITY MANAGERS ASSOCIATION (TCMA) COUNCIL OF THE YEAR AWARD TO THE WESTLAKE TOWN COUNCIL. Mayor Wheat asked we move to item 4 prior to the discussion of the consent agenda. Mr. Bert Lumbreras, President of Texas City Manager Association and Assistant Manager for the City of Austin, provided an overview of TMCA and presented the TMCA 2013 City Council of the Year award to the Mayor and Council. 5. DISCUSSION ITEMS a. Presentation and Discussion regarding the Westlake Public Arts Society achievements and future plans. President Bryan Biddle Westlake Public Arts Society provided an overview of the board accomplishments and future activities. Discussion ensued regarding the AIR (Artist in Residence) program, the future of the AIR program, working the Historical Society to produce the art work for the automobile show, and Art scholarships for students pursuing their education in Art. b. Discussion regarding the Proposed Budget for the Town of Westlake for FY 2012/2013, Five Year Financial Forecasts, as well as Funded and Unfunded (Unapproved) Capital Projects. Town Manager Brymer provided a presentation and overview of the proposed budget and Capital Project including facilities at Westlake Academy. Discussion ensued regarding the allocation of the over-site fee from Texas Student Housing (Council was in agreement to transfer the funds to the Westlake Academy Foundation for their endowment, the Primary Boundary Analysis by Cohort, the hybrid option providing for approximately 800 students and a “Westlake Reserve” for students in the primary boundary, the SDS (School District Strategies) report, and Financial Forecast and impact on the CIP. Town Council Minutes 08/27/12 Page 3 of 6 Council advised they would like to build to meet the enrollment number of approximately 800 as presented and discussed buying down enrollment spaces to for primary boundary students at later date. c. Discussion regarding future Trail Connectivity Plans. Facilities and Recreation Director Meyer provided an overview of the Trail Connectivity Plan as outlined in the Strategic Plan. Discussion ensued regarding sharing costs of trail connectivity with the current Solana management company to install a multi-use trail, the type of materials use for future trails, and the future of the east Dove Road trail. 6. EXECUTIVE SESSION The Council convened into executive session at 7:39 p.m. The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.087: Deliberation Regarding Economic Development Negotiations – to deliberate the offer of a financial or other incentive to a business prospect. b. Section 551.071 Consultation with Attorney - to seek advice of counsel on legal matters involving pending or contemplated litigation, settlement offers, or other legal matters not related directly to litigation or settlement. Pending or contemplated litigation and settlement offers include but are not limited to the following: Town of Westlake Certificate of Convenience & Necessity (CCN) for water and sewer service. c. Section 551.071 Consultation with Attorney - to seek advice of counsel on legal matters involving pending or contemplated litigation, settlement offers, or other legal matters not related directly to litigation or settlement. Pending or contemplated litigation and settlement offers include but are not limited to the following: Michael Eaton vs. Town of Westlake. 7. RECONVENE WORKSHOP Mayor Wheat reconvened the meeting at 8:51 p.m. 8. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. No Action Taken. Town Council Minutes 08/27/12 Page 4 of 6 9. COUNCIL RECAP / STAFF DIRECTION Provide a breakdown using the Foundation’s donation per student. Move forward with the option growing the facilities to approximately 800 student body, finish the facilities plan and design contract. Council requested to review the municipal salary survey. 10. ADJOURNMENT There being no further business before the Council, Mayor Wheat adjourned the workshop at 9:02 p.m. Regular Session 1. CALL TO ORDER Mayor Wheat called the meeting to order at 9:02 p.m. 2. CITIZEN PRESENTATIONS AND RECOGNITIONS Mr. Stephen Thorton, 13187 Thorton Drive, asked that additional cleanup be provided to the construction along Roanoke Road and Thornton Drive. Mr. Thorton provided a list of issues he would like to see the Town address. 3. CONSENT AGENDA a. Consider approval of the minutes from the meeting held on June 4, 2012. b. Consider approval of the minutes from the meeting held on June 18, 2012. c. Consider approval of the minutes from the meeting held on August 10, 2012. d. Consider approval of Resolution 12-25, Authorizing the Destruction of Municipal and Texas Student Housing Records in Compliance with the Texas State Library and Archive Commission Schedules. e. Consider approval of Resolution 12-26, Increasing the number of Board Members on the Westlake Historical Preservation Society. f. Consider approval of Resolution 12-27, Appointing a new member to the Westlake Public Arts Society. g. Consider approval of Resolution 12-28, Appointing a new member to the Westlake Planning & Zoning Commission. h. Consider approval of Resolution 12-29, Approving an Economic Development Program Agreement between the Town of Westlake (Town) and Hillwood Alliance Services (HAS) for Various Town Funded Improvements Related to the Dove Road/Ottinger Road Project Per the April 25, 2011 Development Agreement Between HAS and the Town. Town Council Minutes 08/27/12 Page 5 of 6 MOTION: Council Member Cox made a motion to approve the consent agenda with revisions as discussed to the August 10, 2012, minutes and Economic Development Agreement with Hillwood. Council Member Langdon seconded the motion. The motion carried by a vote of 5-0. 4. CONSIDER APPROVAL OF RESOLUTION 12-30 TO PARTICIPATE IN THE DENTON COUNTY WEST NILE VIRUS AERIAL SPRAYING PROGRAM. Tom provided an overview regarding the aerial spraying as proposed from Denton County. Council Members Cox and Levitan did research aerial spraying for the West Nile virus and both support the program. Council would like to make sure the dates and times of the spraying MOTION: Council Member Levitan made a motion to approve Resolution 12-30. Council Member Cox seconded the motion. The motion carried by a vote of 5-0. 5. EXECUTIVE SESSION The Council did not convene into executive session. The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.087: Deliberation Regarding Economic Development Negotiations – to deliberate the offer of a financial or other incentive to a business prospect. b. Section 551.071 Consultation with Attorney - to seek advice of counsel on legal matters involving pending or contemplated litigation, settlement offers, or other legal matters not related directly to litigation or settlement. Pending or contemplated litigation and settlement offers include but are not limited to the following: Town of Westlake Certificate of Convenience & Necessity (CCN) for water and sewer service. c. Section 551.071 Consultation with Attorney - to seek advice of counsel on legal matters involving pending or contemplated litigation, settlement offers, or other legal matters not related directly to litigation or settlement. Pending or contemplated litigation and settlement offers include but are not limited to the following: Michael Eaton vs. Town of Westlake. 6. RECONVENE MEETING 7. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. Town Council Minutes 08/27/12 Page 6 of 6 8. FUTURE AGENDA ITEMS - None 9. STRATEGIC ISSUES CALENDAR 10. COUNCIL CALENDAR 11. ADJOURNMENT There being no further business before the Council, Mayor Wheat asked for a motion to adjourn the meeting. MOTION: Council Member Rennhack made a motion to adjourn the meeting. Council Member Langdon seconded the motion. The motion carried by a vote of 5-0. Mayor Wheat adjourned the meeting at 9:17 p.m. APPROVED BY THE TOWN COUNCIL ON SEPTEMBER 24, 2012. ATTEST: _____________________________ Laura Wheat, Mayor _____________________________ Kelly Edwards, Town Secretary Page 1 of 2 estlake Town Council TYPE OF ACTION Regular Meeting - Consent Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Consider approval of Resolution Appointing two members to the Westlake Academy Foundation Board. STAFF CONTACT: Kelly Edwards, Town Secretary DECISION POINTS Start Date Completion Date Timeframe: September 24, 2012 September 24, 2012 Effective immediately if approved. Funding: Amount - $0.00 Status- Funded Source- N/A Decision Alignment VVM Perspective Desired Outcome Strategic Issue Outcome Strategy Staff Action N/A N/A N/A Strategy Map or VVM Connection Strategic Issue Connection Page 2 of 2 EXECUTIVE SUMMARY Currently the Foundation has several vacant seats. The Board would like to appoint Karen Stoltenberg and Andy Sedino to the board. ORGANIZATIONAL HISTORY/RECOMMENDATION Appoint the applicants per the request of the Board. ATTACHMENTS Applications and Resolution Resolution 12-13 Page 1 of 2 TOWN OF WESTLAKE RESOLUTION NO. 12-31 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, APPOINTING TWO MEMBERS TO THE WESTLAKE ACADEMY FOUNDATION BOARD. WHEREAS, Currently, vacancies exist on the Westlake Academy Foundation board; and WHEREAS, the Town Council has received one applications for consideration of appointment; and WHEREAS, the meeting at which this Resolution was considered was open to the public as required by law, and public notice of the time, place, and subject of the meeting has been given in accordance with Chapter 551, Government Code. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That, all matters stated in the Recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety. SECTION 2: That the Town Council of the Town of Westlake does hereby appoint the following individuals to serve as members of the Westlake Academy Foundation board for the term noted below : Karen Stoltenberg - term expiring June 2013 Andy Sedino – term expiring June 2014 SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. Resolution 12-13 Page 2 of 2 SECTION 4: That this resolution shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 24th DAY OF SEPTEMBER 2012. ___________________________________ Laura Wheat, Mayor ATTEST: ____________________________________ __________________________________ Kelly Edwards, Town Secretary Thomas E. Brymer, Town Manager APPROVED AS TO FORM: ____________________________________ L. Stanton Lowry, Town Attorney Page 1 of 2 estlake Town Council TYPE OF ACTION Regular Meeting - Action Item Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Consider approval of an Ordinance amending Chapter 90 Sections 90- 79(3) to establish a permanent speed limit on FM 1938/Davis Blvd in its entirety within the corporate limits of Westlake. STAFF CONTACT: Jarrod Greenwood, Director of Public Works DECISION POINTS Start Date Completion Date Timeframe: September 24, 2012 September 24, 2012 Funding: Amount - N/A Status- N/A Source- N/A Decision Alignment VVM Perspective Desired Outcome Exemplary Governance Operational Processes CF.Promote Community Health, Safety & Welfare Strategic Issue Outcome Strategy Staff Action N/A N/A N/A Page 2 of 2 Strategy Map or VVM Connection Strategic Issue Connection EXECUTIVE SUMMARY The proposed ordinance is designed to establish the speed limit within the construction zone on FM 1938 (Precinct Line Road). ORGANIZATIONAL HISTORY/RECOMMENDATION At the April 23, 2012 Town Council meeting, the Town Council approved amending Chapter 90 Sections 90-79(3) of the Westlake Code of Ordinances establishing a construction speed limit of 30 m.p.h. that was to remain in effect for the duration of the construction project. The FM 1938 construction work is now completed to a point that justifies establishing the permanent designed speed limit of 40 m.p.h. for the section through Westlake. As a result, Staff has prepared the attached ordinance to comply with the recommendation. Additionally, TxDOT would desire the speed limit to be set at 45 m.p.h. and has informed staff that upon completion of road construction, they intend to conduct a speed study. This study is what TxDOT will use as justification for adjusting the designed 40 m.p.h. ATTACHMENTS Ordinance Ordinance 685 Page 1 of 2 TOWN OF WESTLAKE ORDINANCE NO. 685 AN ORDINANCE OF THE TOWN OF WESTLAKE AMENDING ORDINANCE NO. 682 AND SECTION 90-79(3) OF THE CODE OF ORDINANCES OF THE TOWN OF WESTLAKE TO ESTABLISH A SPEED ZONE OF 40 MILES PER HOUR ON FM 1938 BETWEEN THE TOWN BOUNDARY AND STATE HIGHWAY 114; PROVIDING A SEVERABILITY CLAUSE; DECLARING A PENALTY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the Town Council seeks to amend its current traffic regulations by increasing the speed limit from the current 30 miles per hour to 40 miles per hour along the portion of FM 1938; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That Ordinance No. 682 is hereby deleted in its entirety, and that Chapter 90, “Traffic and Vehicles,” of the Code of Ordinances of the Town of Westlake, Article II, Division 3, Sec. 90-79(3) be amended as follows: FM 1938/Davis Boulevard from State Highway 114 south to the Town limit line (also described as Station 205 + 74 to Station 98 + 23.74) will be set at 40 m.p.h. SECTION 2: The Town Manager is hereby authorized to cause to be erected appropriate signs indicating this speed zone. SECTION 3: Any person violating any of the provisions of this ordinance shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined a sum not to exceed the maximum amount allowed by law. SECTION 4: This ordinance shall take effect on its date of passage. Ordinance 685 Page 2 of 2 SECTION 5: If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or its application to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, ON THIS 24th DAY OF SEPTEMBER 2012. _____________________________ ATTEST: Laura Wheat, Mayor ____________________________ ______________________________ Kelly Edwards, Town Secretary Thomas E. Brymer, Town Manager APPROVED AS TO FORM: ____________________________ L. Stanton Lowry, Town Attorney Page 1 of 3 estlake Town Council TYPE OF ACTION Regular Meeting - Action Item Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Conduct a Public Hearing and Consideration of Ordinance, Adopting the Town of Westlake Estimated Budget for the fiscal year ending September 30, 2012, Adopting the Proposed Budget for the fiscal Year ending September 30, 2013 including Investment Policy, Fiscal and Budgetary Policies, Committed and Assigned Fund Balances, and Providing Authorization to the Town Manger to approve appropriated funds up to $25,000. STAFF CONTACT: Tom Brymer, Town Manager DECISION POINTS Start Date Completion Date Timeframe: October 1, 2012 September 30, 2013 Funding: Amount - $26,089,720 Status- Funded Source- N/A The Town of Westlake’s Proposed FY 2012-2013 budget totals $26,089,720 for all funds (including $1,923,218 transfers in from fund balance for operating, debt service, capital projects, major maintenance and equipment replacement needs). Included in this total is Westlake Academy’s FY 2012-2013 expenditures and transfers out totaling $5,876,479 Decision Alignment VVM Perspective Desired Outcome Service Excellence Financial Stewardship FS.Sustain Fiscal Health Strategic Issue Outcome Strategy Staff Action Fiscal Stewardship & Organizational Effectiveness 5. Budget according to established service level provisions within departments. SA 05.1: Budget Preparation Strategy Map or VVM Connection Strategic Issue Connection Page 2 of 3 EXECUTIVE SUMMARY Keeping our fiscal year 2012-2013 budget theme of “Driving Service Excellence” in mind, this current year budget has been prepared using the following three-fold strategic focus with the intent of achieving as an end product, an excellent quality of life fo r Westlake residents and businesses. Continued substantial investment in the Town’s infrastructure Investing in our employees, our most important resource for achieving service excellence Maintaining our position as a premier knowledge based community, as well as a community recognized both state wide and nationally for our innovative approaches to local government service delivery. As our organization has developed, we have created a framework through the progression from a traditional strategic plan to a comprehensive governance system that is outcome focused. The end result is to create a high performing team that is focused on the overall goals and objectives established by the Council, customer service, program provision, financial stewardship and organizational and personal development. This budget focuses on the next twelve months of the Town’s future. However, the Council’s initiative to pursue a strategic planning approach to the Town’s governance is critical to providing the Council, and the community, with a multi-year focus that couples strategic priority setting with good financial stewardship decisions that achieve the long-term vision set by the Council for the Town of Westlake. This team focus, along with the governance system, makes Westlake a truly unique community that produces top-notch results and a small staff while maximizing the use of public funds for our Town. Further, the framework links together these critical governance and management decision making tools called “Governing and Managing for Outcomes” which is designed to integrate: Vision driven strategic planning, strategy mapping, and outcome based performance indicators Five (5) year financial forecasting, budgeting, and performance measurement linked to priorities, objectives, and outcomes to ensure a long term approach that provides financial sustainability Aligning resources to prioritized outcomes Reporting to monitor progress in outcome achievement and accountability for results Utilizing citizen surveys to gauge service satisfaction levels with Town services and resident willingness to pay for those services Maintaining core services Funding and implementing a five (5) year capital improvement planning The proposed budget delineates the next twelve months of the Town’s financial future and identifies the important projects and programs within our community. We will continue to focus on infrastructure development, community engagement, high-quality service provision and further develop the component of driving service excellence through our staff and program of Page 3 of 3 services. All of these tasks are centered on the vision, values and missions statements the Council has identified as critical to our success. ORGANIZATIONAL HISTORY/RECOMMENDATION This Public Hearing has been advertised as required by law. The recommendation is to first conduct and close the Public Hearing, followed by Council discussion as needed. Additionally, it is recommended to adopt the FY 2012-13 municipal budget as proposed. ATTACHMENTS Proposed FY 2012-13 Municipal Budget Ordinance Ordinance 686 Page 1 of 2 TOWN OF WESTLAKE ORDINANCE NO. 686 AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, REVISING THE BUDGET FOR THE 2011-2012 FISCAL YEAR; ADOPTING THE BUDGET FOR THE TOWN OF WESTLAKE, TEXAS FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2012 AND ENDING SEPTEMBER 30, 2013 INCLUDING INVESTMENT POLICY, FISCAL AND BUDGETARY POLICIES, COMMITTED AND ASSIGNED FUND BALANCES; PROVIDING AUTHORIZATION TO THE TOWN MANGER TO APPROVE APPROPRIATED FUNDS UP TO $25,000; PROVIDING THAT THE BUDGET TO BE KEPT IN CITY SECRETARY’S OFFICE; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, public notice of a public hearing on the proposed annual budget, stating the date, time, and place and subject matter of the public hearing, was given as required by the laws of the State of Texas and ; and WHEREAS, a public hearing was duly held and all interested persons were given an opportunity to be heard for or against any item therein on September 24, 2012; and, WHEREAS, as required by Texas Local Government Code 102.002, the budget officer has prepared a municipal budget to cover the proposed expenditures of the municipal government for the succeeding year; and, WHEREAS, the Town Council finds that the passage of this Ordinance is in the best interest of the citizens of Westlake. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That, all matters stated in the Recitals hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirety SECTION 2: That the Town Council hereby adopts the revised budget for the fiscal year beginning October 1, 2011 and ending September 30, 2012 as shown in Exhibit “A.” SECTION 3: That the Town Council does hereby approve the proposed Municipal Budget attached as Exhibit “A”, adopting the budget for the fiscal year beginning October 1, 2012 and ending September 30, 2013. SECTION 4: That the Town Council hereby gives the Town Manager authorization to approve any appropriated funds up to the amount of $25,000. SECTION 5: That a copy of the official adopted 2012-2013 budget document shall be kept on file in the office of the Town Secretary. Ordinance 686 Page 2 of 2 SECTION 6: If any portion of this Ordinance shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Ordinance without the invalid provision. SECTION 7: That this Ordinance shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 24TH DAY OF SEPTEMBER 2012. ATTEST: ________________________________ Laura L. Wheat, Mayor _______________________________ _________________________________ Kelly Edwards, Town Secretary Thomas E. Brymer, Town Manager APPROVED AS TO FORM: _____________________________ L. Stanton Lowry, Town Attorney TRANSMITTAL LETTER Fiscal Year 2012-2013 Proposed Annual Operating Budget VV II SS II OO NN SS TT AA TT EE MM EE NN TT WWeessttllaakkee iiss aann ooaassiiss ooff ttrraannqquuiilliittyy aanndd nnaattuurraall bbeeaauuttyy aammiiddsstt aann eevveerr eexxppaannddiinngg uurrbbaann llaannddssccaappee.. VV II SS II OO NN PP OO II NN TT SS ~~ AA SS EE NN SS EE OO FF PP LL AA CC EE ~~ DDiissttiinnccttiivvee nneeiigghhbboorrhhooooddss,, aarrcchhiitteeccttuurraallllyy vviibbrraanntt ccoorrppoorraattee ccaammppuusseess,, ggrraazziinngg lloonngghhoorrnnss,, ssooaarriinngg rreedd--ttaaiilleedd hhaawwkkss,, mmeeaannddeerriinngg rrooaaddss aanndd ttrraaiillss,, lliinneedd wwiitthh nnaattuurraall ssttoonnee aanndd nnaattiivvee ooaakkss..  ~~ WW EE AA RR EE LL EE AA DD EE RR SS ~~ AA pprreemmiieerree ppllaaccee ttoo lliivvee,, lleeaaddeerrsshhiipp iinn ppuubblliicc eedduuccaattiioonn,, ccoorrppoorraattee aanndd ggoovveerrnnmmeennttaall ppaarrttnneerrsshhiippss,, aanndd hhiigghh ddeevveellooppmmeenntt ssttaannddaarrddss..  ~~ WW EE AA RR EE AA CC AA RR II NN GG CC OO MM MM UU NN II TT YY ~~ IInnffoorrmmeedd rreessiiddeennttss,, ssmmaallll ttoowwnn cchhaarrmm aanndd vvaalluueess,, hhiissttoorriiccaall pprreesseerrvvaattiioonn..  ~~ EE XX EE MM PP LL AA RR YY GG OO VV EE RR NN AA NN CC EE ~~ TToowwnn ooffffiicciiaallss,, bbootthh eelleecctteedd aanndd aappppooiinntteedd,, eexxhhiibbiitt rreessppeecctt,, sstteewwaarrddsshhiipp,, VViissiioonn,, aanndd ttrraannssppaarreennccyy..  ~~ SS EE RR VV II CC EE EE XX CC EE LL LL EE NN CC EE ~~ PPuubblliicc sseerrvviiccee tthhaatt iiss rreessppoonnssiivvee aanndd pprrooffeessssiioonnaall,, wwhhiillee bbaallaanncciinngg eeffffiicciieennccyy,, eeffffeeccttiivveenneessss aanndd ffiinnaanncciiaall sstteewwaarrddsshhiipp.. CC OO MM MM UU NN II TT YY VV AA LL UU EE SS IInnnnoovvaattiioonn  EEdduuccaattiioonnaall LLeeaaddeerrss  FFaammiillyy FFrriieennddllyy aanndd WWeellccoommiinngg  EEnnggaaggeedd CCiittiizzeennss  PPrreesseerrvvaattiioonn ooff OOuurr NNaattuurraall BBeeaauuttyy  SSttrroonngg AAeesstthheettiicc SSttaannddaarrddss  TTrraannssppaarreenntt GGoovveerrnnmmeenntt  FFiissccaall RReessppoonnssiibbiilliittyy  MM II SS SS II OO NN SS TT AA TT EE MM EE NN TT ““OOnn bbeehhaallff ooff tthhee cciittiizzeennss,, tthhee mmiissssiioonn ooff tthhee TToowwnn ooff WWeessttllaakkee iiss ttoo bbee aa oonnee--ooff--aa--kkiinndd ccoommmmuunniittyy tthhaatt bblleennddss oouurr rruurraall aattmmoosspphheerree wwiitthh oouurr vviibbrraanntt ccuullttuurree aanndd mmeettrrooppoolliittaann llooccaattiioonn..”” TT OO WW NN OO FF WW EE SS TT LL AA KK EE CC OO UU NN CC II LL MM EE MM BB EE RR SS MMaayyoorr LLaauurraa WWhheeaatt MMaayyoorr PPrroo--TTeemm CCaarrooll LLaannggddoonn CCoouunncciill MMeemmbbeerr MMiicchhaaeell BBaarrrreetttt CCoouunncciill MMeemmbbeerr CClliiffttoonn CCooxx CCoouunncciill MMeemmbbeerr DDaavviidd LLeevviittaann CCoouunncciill MMeemmbbeerr RRiicckk RReennnnhhaacckk TT OO WW NN OO FF WW EE SS TT LL AA KK EE AA DD MM II NN II SS TT RR AA TT II VV EE OO FF FF II CC II AA LL SS TToowwnn MMaannaaggeerr TToomm BBrryymmeerr AAssssiissttaanntt ttoo tthhee TToowwnn MMaannaaggeerr aanndd CCoouurrtt AAddmmiinniissttrraattoorr AAmmaannddaa DDeeGGaann TToowwnn SSeeccrreettaarryy KKeellllyy EEddwwaarrddss DDiirreeccttoorr ooff CCoommmmuunniiccaattiioonnss aanndd CCoommmmuunniittyy AAffffaaiirrss GGiinnggeerr AAwwttrryy DDiirreeccttoorr ooff FFiinnaannccee DDeebbbbiiee PPiippeerr DDiirreeccttoorr ooff PPuubblliicc WWoorrkkss JJaarrrroodd GGrreeeennwwoooodd DDiirreeccttoorr ooff HHuummaann RReessoouurrcceess AAnndd AAddmmiinniissttrraattiivvee SSeerrvviicceess TToodddd WWoooodd DDiirreeccttoorr ooff PPaarrkkss && RReeccrreeaattiioonn AAnndd FFaacciilliittiieess MMaaiinntteennaannccee TTrrooyy MMeeyyeerr DDiirreeccttoorr ooff PPllaannnniinngg AAnndd DDeevveellooppmmeenntt EEddddiiee EEddwwaarrddss FFiirree CChhiieeff RRiicchhaarrdd WWhhiitttteenn TT OO WW NN OO FF WW EE SS TT LL AA KK EE BB OO AA RR DD SS && CC OO MM MM II SS SS II OO NN SS  WW EE SS TT LL AA KK EE HH II SS TT OO RR II CC AA LL PP RR EE SS EE RR VV AA TT II OO NN SS OO CC II EE TT YY Stephen Thornton, Kristi Layton, Megan Brady, Jim Budarf, Karen Stoltenberg, Bert Schultz  WW EE SS TT LL AA KK EE AA CC AA DD EE MM YY FF OO UU NN DD AA TT II OO NN Ken Gorden, Leah Rennhack, Kelly Cox, Bill Greenwood, Zan Jones, Sean Shope, Rebecca Neidrich, Jeff Watson Charlotte Ryan, Kevin Hansen, April Gallagher  PP LL AA NN NN II NN GG && ZZ OO NN II NN GG CC OO MM MM II SS SS II OO NN Bill Greenwood, Walter Copeland, Allen Heath, Sharon Sanden, Wayne Stoltenberg  TT EE XX AA SS SS TT UU DD EE NN TT HH OO UU SS II NN GG AA UU TT HH OO RR II TT YY Bill Greenwood, Walter Copeland, Allen Heath, Tim Brittan, Wayne Stoltenberg  PP UU BB LL II CC AA RR TT SS CC OO MM MM II TT TT EE EE Bryan Biddle, Gail James, Amelia Johnson, Kelly Cox, Trish Biddle, Rebecca Neidich, Allison Ross  44 BB EE CC OO NN OO MM II CC DD EE VV EE LL OO PP MM EE NN TT BB OO AA RR DD Laura Wheat, Rick Rennhack, Michael Barrett, Carol Langdon, David Brown, Gregg Malone  AA RR BB OO RR DD AA YY AA DD VV II SS OO RR YY CC OO MM MM II TT TT EE EE Troy Meyer TThhee GGoovveerrnnmmeenntt FFiinnaannccee OOffffiicceerrss AAssssoocciiaattiioonn ooff tthhee UUnniitteedd SSttaatteess aanndd CCaannaaddaa ((GGFFOOAA)) hhaass pprreesseenntteedd aa DDiissttiinngguuiisshheedd BBuuddggeett PPrreesseennttaattiioonn AAwwaarrdd ttoo tthhee TToowwnn ooff WWeessttllaakkee ffoorr iittss aannnnuuaall bbuuddggeett ffoorr tthhee ffiissccaall yyeeaarr bbeeggiinnnniinngg OOccttoobbeerr 11,, 22001111.. IInn oorrddeerr ttoo rreecceeiivvee tthhiiss aawwaarrdd,, aa ggoovveerrnnmmeennttaall uunniitt mmuusstt ppuubblliisshh aa bbuuddggeett ddooccuummeenntt tthhaatt mmeeeettss pprrooggrraamm ccrriitteerriiaa aass aa ppoolliiccyy ddooccuummeenntt,, aass aann ooppeerraattiioonnss gguuiiddee,, aass aa ffiinnaanncciiaall ppllaann,, aanndd aass aa ccoommmmuunniiccaattiioonn ddeevviiccee.. TThhiiss aawwaarrdd iiss vvaalliidd ffoorr aa ppeerriioodd ooff oonnee yyeeaarr oonnllyy.. WWee bbeelliieevvee oouurr ccuurrrreenntt bbuuddggeett ccoonnttiinnuueess ttoo ccoonnffoorrmm ttoo pprrooggrraamm rreeqquuiirreemmeennttss,, aanndd wwee aarree ssuubbmmiittttiinngg iitt ttoo GGFFOOAA ttoo ddeetteerrmmiinnee iittss eelliiggiibbiilliittyy ffoorr aannootthheerr aawwaarrdd.. Table of Contents 11.. IINNTTRROODDUUCCTTIIOONN Transmittal Letter 1 Budget Overview and Framework 15 Financial Analysis – All Funds 23 Personnel and Organization 35 22.. GGEENNEERRAALL FFUUNNDD Program Summary 41 Fund Overview 42 33.. SSPPEECCIIAALL RREEVVEENNUUEE FFUUNNDDSS 4B Economic Development Fund 200 Program Summary 51 Fund Overview 52 Inter-fund Repayment Schedule 53 Economic Development Fund 210 Program Summary 55 Fund Overview 56 Tax Reimbursement Schedule – Fidelity Phase 1 57 Lone Star Public Facilities 418 Program Summary 59 Fund Overview 60 Visitors Association Fund 220 Program Summary 63 Fund Overview 64 Program Budget 65 44.. DDEEBBTT SSEERRVVIICCEE FFUUNNDD Program Summary 67 Fund Overview 68 Long Term Debt Summary 70 55.. EENNTTEERRPPRRIISSEE FFUUNNDD Cemetery Fund 255 Program Summary 75 Fund Overview 76 Table of Contents 55.. EENNTTEERRPPRRII SSEE FFUUNNDD ((ccoonnttiinnuueedd)) Utility Fund 500 Program Summary 79 Fund Overview 80 Program Budget 84 Inter-fund Repayment Schedule 85 Debt Payable Schedule – Keller Overhead Storage 86 Project 30 – TRA Assumption of N1 Sewer Line 87 Project 31 – N1 Sewer Line Transfer Inflow/Infiltration Repairs 88 Project 36 – Ground Storage Tank 89 66.. IINNTTEERRNNAALL SSEERRVVIICCEE FFUUNNDDSS Utility Major Maintenance Fund 510 Program Summary 91 Fund Overview 92 Five Year Projection 93 General Major Maintenance Fund 600 Program Summary 95 Fund Overview 96 Five Year Projection 97 77.. WWEESSTTLLAAKKEE AACCAADDEEMMYY FFUUNNDD 119999 Program Summary 99 Fund Overview 100 Executive Summary 101 88.. CCAAPPII TTAALL PPRROOJJEECCTT FFUUNNDD Program Summary 123 Fund Overview 124 Five Year Projection 125 Project 20 - FM1938 Streetscape and Wayfinding 126 Project 28 - Streets Survey 127 Project 30 - SH114 and Hwy170 Enhancements 128 Project 31 - Stagecoach Hills Reconstruction and Drainage 129 Project 34 - South Roanoke Road Reconstruction and Drainage 130 Project 40 – Sam School Road Reconstruction and Drainage 131 Project 41 - Dove Road Reconstruction and Drainage 132 Project 42 - Trail Connection at Hwy 114 and Solana Blvd 133 Project 45 – Westlake Portion of Hillwood Projects 134 Project 46 – Westlake Academy North Driveway Lighting 135 Project 47 - Hwy 377 Westport Parkway Signal 136 Project 48 –Westlake Academy Expansion 137 Table of Contents 99.. CCAAPPII TTAALL IIMMPPRROOVVEEMMEENNTTSS Capital Improvement Plan 139 Approved Capital Projects – 5 Year Projection 140 Unfunded Capital Projects – 5 Year Projection 141 1100.. FFII VVEE YYEEAARR FFOORREECCAASSTT Five Year Financial Forecast Narrative 143 Five Year Financial Forecast All Municipal Funds 145 1111.. CCOOMMMMUUNNII TTYY PPRROOFFIILLEE General Information 151 History of Westlake 152 Local Government 154 Community Events 155 Westlake Academy 156 Facts, Figures, Statistics 157 Population and Employers 158 Sales Tax Rates 159 Property Tax 160 1122.. AAPPPPEENNDDIIXX Glossary of Terms 163 Fiscal and Budgetary Policies 169 Investment Policy 191 Strategic Plan 195 TRANSMITTAL LETTER TRANSMITTAL LETTER The Transmittal Letter is written to the Town Council by the Town Manager and provides a high-level preview of the Town Manager’s proposed budget. It contains hard numbers including the proposed tax rate and proposed fund summaries as well as overviews of the departmental business plans. The letter helps tie together the core elements which make up the proposed budget and illustrates how those elements further the Town’s goals found within the Strategic Plan. TRANSMITTAL LETTER September 18, 2012 Honorable Mayor and Town Council: INTRODUCTION It is my pleasure to submit for your consideration the Proposed FY 2012-13 Budget for the Town of Westlake; the theme for which is “Driving Service Excellence.” With this theme in mind, this budget has been prepared with the following three–fold strategic focus with the intent of achieving as an end product, an excellent quality of life for Westlake residents and businesses:  Continued substantial investment in the Town’s infra structure  Investing in our employees, our most important resource for achieving service excellence  Maintaining our position as a premiere knowledge based community, as well as a community recognized both statewide and nationally for our innovative approaches to local government service delivery. During my tenure as your Town Manager / Superintendent, our community has faced many important decisions which have helped to shape our future and guide our growth. We have expanded our capacity as an organization through:  the development of strategic plans and identifiable performance measures for both our municipal and educational operations.  conducting elected official governance and staff professional development sessions to improve our proficiency in those areas.  keeping a continued short and long-term focus on fiscal management that involves responsible budgeting and transparency for our citizens.  increasing our communication and outreach efforts to our community via the continued use of neighborhood meetings, corporate partnerships, and the re-design of our website.  expanding enrollment, providing new course offerings, and emphasizing high student achievement and student expansion at Westlake Academy. All of these tasks are necessary to create the one-of-a-kind community that Westlake residents cherish and enjoy. As a staff, we would like to say ‘thank you’ for the time and effort the Town Council invests in both the Town and its school, Westlake Academy. PROPOSED BUDGET OVERVIEW On behalf of the Leadership Team and all staff members, I am presenting the Proposed Town of Westlake’s FY 2012-13 budget document for the Council’s consideration as follows:  The FY 12-13 budgeted amount totals $26,089,720 for all funds (including $1,923,218 transfers in from fund balance for operating, debt service, capital projects, major maintenance and equipment replacement needs). Page 1 TRANSMITTAL LETTER  This represents a 25% increase in the total fund balance from the FY 2011-2012 estimated budget. If only municipal operating expenses were taken into consideration (removal of all expenses related to capital projects, Westlake Academy and interfund transfers), the proposed FY 2012-13 budget would show a 4% decrease in municipal expenditures from the FY 2011-12 estimates. This is due in large to the cost reductions in our economic development fund resulting from the completion of the construction of Deloitte University during the 11-12 fiscal year; which in turn lowered our economic development sales tax rebates related to that project. This is also due to the FY 11-12 proposed transfer of $400,000 which represents a contribution to the Westlake Academy Foundation of the funds received from the Texas Student Housing. Three years ago, in order to provide a more holistic and comprehensive overview of all of our financial obligations, revenue sources, and program of services that fall under the umbrella of the Town of Westlake, we began including in the municipal budget the operational costs for Westlake Academy. A summary of the changes in Fund Balance from the projected beginning fund balances to the estimated FY 2011-12 fund balances are as follows: Beginning Revenues and Expenditures Ending Fund Other Funding and Other Net Fund Inc(Dec) Fund Type Balance Sources Funding Uses Change Balance Percent General Fund 4,226,543 5,518,605 7,247,103 (1,728,499) 2,498,044 -41% Special Revenue 1,248,742 1,668,203 1,833,126 (164,923) 1,083,819 -13% Debt Service Fund 29,796 1,586,452 1,616,248 (29,796) (0) -100% Enterprise Funds 3,118,937 4,812,694 4,667,844 144,850 3,263,787 5% Internal Services 948,569 601,875 381,670 220,205 1,168,774 23% Westlake Academy 683,309 5,884,257 5,876,479 7,778 691,087 1% Capital 3,049,080 9,327,500 4,467,249 4,860,251 7,909,331 159% Total $13,304,976 $29,399,586 $26,089,720 $3,309,866 $16,614,842 25% As can be seen above, the FY 2012-13 budget shows the following changes and trends in fund balances for the Town’s major funds: The Capital Projects Fund’s fund balance will increase due to a proposed $8.5M issuance for Westlake Academy facility expansion. This increase as well as the ongoing implementation of the (5) Year Capital Improvement Program (CIP) will bring the fund balance to a proposed $3.3M. The CIP is reviewed, updated, and approved each year by the Town Council. The FM 1938/ Davis Blvd. streetscaping plan will begin in earnest this coming year and the final expenditures for the J. T. Ottinger/Dove Road improvements will wind down. We will also begin to implement the enhancement projects along SH 114/Hwy 170 during the 12-13 fiscal year and start reconstruction and drainage work on Dove Road east of FM 1938. The method for funding a second ground storage water tank for our water system is still under consideration. Because of that, it is proposed in this FY 12-13 budget to transfer, through an inter-fund loan, funds from the General Fund to the Utility Fund. The amount of $2,000,000 is proposed to be re-paid over five year with a $400,000 annual payment. However, if we can work out the ability to issue bonds for this project, that would be the preferred method of financing this needed facility and an inter-fund loan from the General Fund to the Utility Fund will not be necessary. Page 2 TRANSMITTAL LETTER A transfer from the General Fund to the Major Maintenance and Replacement Fund will continue in this fiscal year, with transfers out of $550,000. The expenditures will be used for plant/building maintenance at the Academy, trail repair work, replacement of an existing vehicle, as well as technology upgrades. A portion of the remaining balance will be held for the future replacement of the ladder truck for the Fire Department in FY 2016-17. Internal Service funds show a projected 23% increase of $220,205, due to the transfer of funds into the two major maintenance and equipment replacement funds (Utility and General), to accumulate funds for various repair and replacement items. The net change to Fund balance for Westlake Academy is positive due, in part, to a $300 thousand contribution from the Westlake Academy Foundation which is intended to help with the negative impact of the reduction in State funding for public schools across Texas. Special Revenue funds project a 13% decrease in total fund balance in the amount of $164,923 by the end of FY 2012-13. This reduction is primarily due to the Visitors Association Fund (i.e. Hotel-Motel Occupancy Tax Fund), where debt service payments are proposed to be transferred for the bond issue payment related to construction of the Westlake Academy Sam and Margaret Lee Arts & Sciences Center. As required by State law, the proposed FY 2011-12 municipal budget has been prepared with the base assumption that the Town’s first priority is to have a balanced budget. Further, that it is a Town priority to fund and deliver basic, high quality, municipal services to our residents and businesses. Service levels are in alignment with residential feedback regarding priorities from our most recent Direction Finders (citizens’) survey results and the Town’s Strategic Issues- focused Governance System (SIGS). In FY 2011-12 our previous strategic plan was redesigned into a comprehensive governance system and contains the Council-developed vision, mission and community value statements, an issues focused strategic plan, a strategy map, balanced score card, and financial allocations according to a program based budget. The goal is to increase our transparency with residents while providing the staff with clear directives and performance measures related to our comprehensive strategy map. FY 2012-13 PROPOSED BUDGET IN A FIVE YEAR CONTEXT Evaluating the adopted budget within a forecast context is important as it shows whether we are on the right road financially in FY 2012-13 with the theme of “Driving Service Excellence”. This excerpt from the updated Financial Forecast for the Town’s General Fund illustrates the trend for the next five years: ACTUAL ESTIMATED PROPOSED F I V E Y E A R P R O J E C T I O N DESCRIPTION FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 GENERAL FUND SECTION Beginning Fund Balance $3,731,332 $3,323,861 $4,226,543 $2,498,044 $2,601,693 $2,265,899 $2,140,582 $2,111,025 Total Revenues/Transfers In 6,308,147 6,169,127 5,518,605 6,049,681 6,183,870 6,321,468 6,462,566 6,607,255 Total Expenditures/Transfers Out (6,715,618) (5,266,445) (7,247,103) (5,946,032) (6,519,664) (6,446,784) (6,492,123) (6,595,052) Net Total $3,323,861 $4,226,543 $2,498,044 $2,601,693 $2,265,899 $2,140,582 $2,111,025 $2,123,228 Total Restricted Funds 406,464 254,295 248,025 252,986 258,045 263,206 268,470 273,840 Ending Balance (projected) $2,917,397 $3,972,248 $2,250,019 $2,348,708 $2,007,854 $1,877,376 $1,842,554 $1,849,388 Operating Days 262 308 182 159 134 124 119 117 Excerpt from Five Year Forecast (General Fund section only) Page 3 TRANSMITTAL LETTER AD VALOREM TAX ANALYSIS Ad valorem taxes account for 21% of General Fund revenue ($1,183,514 proposed for FY 2012-13) and 4% of our overall revenues. This will be the third year the Town has assessed a property tax. Our ad valorem tax rate is the lowest for municipalities in the immediate area. The ad valorem tax rate per $100 of assessed valuation is proposed to remain at $.15684 for FY 12-13. This is less than the effective tax rate of $.19326 that we could levy. As a reminder, the effective tax rate is the tax rate calculated by a complex formula to determine the tax rate that could be levied to raise exactly the same amount of revenue as in the preceding fiscal year. Our assessed valuation increased by 11.2% for FY 12-13. However, the portion of this assessed valuation that we can actually use to levy an ad valorem tax decreased by 8%. This was due largely to tax abatements on Fidelity II and Deloitte University. Fidelity is eligible to receive these abatements in FY12-13; however, they were not eligible in FY 11-12 because they did not meet their employment targets required in our economic development agreements with them. However, even with these abatements lowering the portion of our assessed valuation on which we can levy our property tax in FY 12-13, we are able to use a lower tax rate than the effective tax rate because of; (a) on-going revenue streams, and (b) one-time sales tax revenue in FY 2011-12 from the Deloitte University project, as well as other businesses located in Westlake. The ad valorem tax rate used in this proposed FY 2012-13 budget and compared to the prior year rate is as follows: FY 11-12 FY 12-13 Adopted Proposed Tax Rate Tax Rate Variance M&O $0.138350 $0.141970 $0.003620 I&S $0.018490 $0.014870 ($0.003620) Total $0.156840 $0.156840 $0.000000 More property tax revenues than anticipated were received in the prior year. By being able to use those remaining funds to service our bond payment on the street improvements, we are able to lower the I&S rate; therefore, increasing the M&O rate to keep our proposed rate the same as FY 2011-12. The proposed FY 2012-13 tax rate of $0.15684 is 23% less than the effective rate we are allowed to use by law in FY 2011-12 of $0.19326 per $100 of the assessed valuation. Below is a table noting our prior year tax revenues as well as the proposed rate for FY 2012-13. Net Total Total Fiscal Year Taxable Value Tax Rate Tax Revenue 2013 proposed $833,636,407 $0.156840 $1,307,483 2012 actual $913,119,313 $0.156840 $1,434,151 2011 actual $880,163,946 $0.160100 $1,257,246 Page 4 TRANSMITTAL LETTER FY 2012-13 BUDGET THEME: “DRIVING SERVICE EXCELLENCE” Over the course of the last several years, we have incorporated a ‘theme’ into our budget document to help guide and focus our efforts on the critical issues facing us for the coming budget year.  In FY 2009-10, the budget theme was “Critical Challenges, Critical Choices” as we initiated community-wide dialogue on how best to achieve our community’s vision for Westlake, ensure our quality of life, as well as begin the task of identifying our challenges as it related to our future financial sustainability.  In FY 2010-11, the budget theme was “Securing the Vision.” After a lengthy community dialogue and Council discussions, the Council took the important step to institute our first ad valorem property tax to stabilize our revenue stream and shift from a revenue source to fund Town services that relied almost solely on a general sales and use tax. The decision reversed the preceding trend of depleting the General Fund and allowed for much needed reinvestment in our infrastructure.  Decisions in FY10-11 led to the FY 2011-12 budget theme of “Investing in Our Future”. This was because assessment of a small property tax has given us the ability to invest in the improvement of roadways and other infrastructure projects that will provide tremendous benefits to our residents and businesses over the next several years. In addition to the Town funded capital projects plan, Staff has worked hard to identify and secure infrastructure funding through public/private and inter-local funding partnerships, along with grant funding, to minimize the impact to our tax rate and General Fund while providing high- quality infrastructure. The results of the utilization of these non-Town resources to the benefit of Westlake can be seen in:  Construction of FM 1938/Davis Blvd, a $15 million dollar project funded primarily by State and Federal dollars  Dove Road/Pearson Lane intersection improvements, a new north entrance to Westlake Academy, as well as the Dove and J. T. Ottinger Road upgrades funded primarily by a $4.6 million dollar development agreement with Hillwood Properties.  Landscaping of the medians on the soon to be completed FM 1938/Davis Blvd. project will be funded by a $670,000 Green Belt grant from TxDOT which helps us offset the associated costs for the streetscaping of this important north/south corridor. The selection of any budget theme is intended to bring into focus how resources are recommended to be prioritized and used in order to take the next step in achieving or creating our vision, mission and community values for Westlake. Over the history of our Town, budgets have been prepared with an eye toward being fiscally conservative, while providing for the highest quality of customer service that our residential population has come to expect in Westlake. In that light, the FY 2012-13 theme of “Driving Service Excellence” focuses on providing resources that will improve our ability to deliver excellent customer service, something that is integral to maintaining Westlake’s quality of life and its status as a one-of-a-kind community. To achieve this focus of “Driving Service Excellence,” the proposed FY 2012-12 budget reflects three major areas of emphasis as follows: Page 5 TRANSMITTAL LETTER Investment in Service Delivery Sustainability $714,260  Strategic Plan Vision Points Impacted:  We are Leaders  Service Excellence The following projects are allowable through prior/current funding, which was reserved through transfers to the General Maintenance & Replacement Fund (a fund established to continually set aside allocations for existing building refurbishment, as well as replacement of existing equipment/vehicles on an as needed basis). A portion of the reserve from the General Maintenance & Replacement Fund will fund the following in this fiscal year: Replacements/Repairs:  $ 49,000 - Fire Chief vehicle  $ 24,000 - Internally illuminated street signs on traffic signal poles  $ 21,250 - Fire hydrant repair and painting  $ 31,200 - Pump/motor repair/replacement at pump station Reserved for repairs/replacements/maintenance  $76,600 - Westlake Academy physical plant maintenance and building refurbishment  $ 10,000 - Trail repair work  $ 82,800 - HVAC at Westlake Academy, security system upgrades and refurbish classrooms  $ 31,500 - Technology upgrades Funds provided for future costs:  $ 276,100 towards replacement of our existing fire ladder truck in FY 2015-16 as well as on-going maintenance and replacement needs Additional funding allocated in the operating funds for the following:  $ 12,560 - Radio investment/communication (note: partially funded through the use of $4,000 from Court Security restricted fund)  $ 2,500 - Barricade /Cone replacement  $ 3,000 - Community ‘Code Red’ emergency notification system  $ 2,650 - Fire equipment repair and maintenance  $ 12,000 - Marketing / Advertising / Promotional material  $ 23,100 - Pump station landscaping replacement, GIS conversion costs, ROW maintenance and additional State mandated water testing  $ 56,000 - Records Management/Document Control System–Laser Fiche to provide for scanning and electronic retrieval capabilities of Town records (note: partially – funded through shared allocations, $28,000 from GF, $14,000 from VA, $14,000 from UF ($12,500 from the Court Technology restricted fund will offset the $28,000 GF allocation)) Investment in Core Service Delivery Quality $ 152,369  Strategic Plan Vision Point Impacted:  Service Excellence  $ 100,000 – Workforce Attraction and Retention: First year of a 2-year program to fund for market pay adjustments (includes employer benefit costs)  $ 16,425 – Maintenance of current payroll costs (health, property, vehicle, general liability) Page 6 TRANSMITTAL LETTER  $ 18,474 – Police Services: Cost increase in annual Keller Police services contract  $ 17,470 – Enhanced Professional Development Programs as well as increased funding for fuel and mileage adjustments  Addition of Part-Time Utility Billing Clerk: $-0- (Note: reduction in utility fund expenses and finance overtime will be used to offset this cost) Investment in Infrastructure (Capital Improvement Plan) $8,309,583  Strategic Plan Vision Point Impacted:  Sense of Place  We are Leaders  Service Excellence  $3,117,249 – Street, drainage, streetscape, and trail projects  $1,350,000 – Westlake Academy Facility Expansion  $2,000,000 – Water & sewer utility capital improvements  $1,842,334 – Hillwood Properties’ remaining Dove/Ottinger Road improvements contribution FY 2011-12: INVESTMENTS AND ACHIEVEMENTS Over the past several months, we have accomplished many important milestones in pursuing our quest for Westlake to be a premiere place to live, work, and raise a family. These range from strategic-issues focused tasks to meeting various milestones, awards and recognitions, as follows: The Westlake Town Council received the award for “Council of the Year” from the Texas City Managers Association. This honor recognizes those governing bodies that have a demonstrated commitment to ethical service, put the welfare of the citizens above personal gain, function well as a governance unit, support staff professional development, and positively impact their community. The award nomination outlined the difficult ad valorem property tax decision, the continuing commitment to professional management and development, and the Westlake Town Council’s ability to work together in difficult situations. This is a great honor and recognition for your commitment to Westlake. Congratulations! Received the International City/County Managers Association Community Sustainability Program Excellence Award for Westlake Windows: Transparent Government in Focus (TGIF). The category recognizes those communities who have shown a commitment to “innovation, excellence, and success in balancing that community’s social, economic, environmental, and cultural needs”. (ICMA). We submitted the award with an emphasis on our communication efforts as it related to financial sustainability, transparency with capital improvement efforts, neighborhood meetings, Westlake e-Tube, website redevelopment, email newsletters, and other forms of community outreach programs. Completed the first full year of operations for our Communications & Community Affairs office. Additional notifications and a streamlining of our community outreach was completed through the use of electronic email “mini-newsletters” which have allowed us to provide Westlake residents with more timely and relevant Westlake-related material on a bi- weekly (or more often, if needed) basis. Our Communications Office also assisted in preparation of materials for Westlake Academy to enhance our faculty recruitment and prospective parent outreach. These materials included: Page 7 TRANSMITTAL LETTER  Teacher recruitment brochures  Marketing brochures  Parent prospectus covering our school’s three (3) IB curriculums The Town’s previous strategic planning document was restructured from a traditional format to a comprehensive governance system which we call the Strategic Issues-focused Governance System (SIGS). The system follows a Balanced Scorecard format with a four- tiered strategy map, an issues-focused set of staff action items, outcome strategies that align with our community value statements and a program based budget allocation. Continued implementation of the Town Council’s approved Five (5) Year Capital Improvement Plan (CIP). The public / private partnership between Hillwood Properties an d the Town for Dove Road improvements will be finalized by mid-August. The Stagecoach Hills roadwork project is also now nearing completion, marking the end of a 3 year program to upgrade that subdivisions drainage, water distribution, and street systems. Construction on the State’s $15 Million Phase 1 FM 1938 (Davis Blvd.) project will likely be finished in the 11-12 fiscal year. We have opened two initial north / south lanes of traffic to facilitate mobility, and expect the final completion this fall. Once road construction crews leave the area, Staff will begin working on the Town Council-approved streetscaping plan (contained in our CIP) to help identify this new and significant entry point and corridor for our community. The Town continued to receive recognition for the transparency and high quality of its financial reporting by:  receiving the Certificate of Achievement for Excellence in Financial Reporting, as well as the Distinguished Budget Presentation Award from the Governmental Finance Officers Association (GFOA) in FY 2011-12. This marks the 5th year in a row that we have received this honor for our municipal budget and the 3rd year for our educational services budget.  receiving recognition from the Association of School Business Officials International as a recipient of the International Award for Budget Excellence for the past three years.  completing the Comprehensive Annual Financial Report (CAFR), also known as the annual audit which has also been recognized through GFOA for the last five years. The Finance Department also created the Town’s first Popular Annual Financial Report (PAFR) converting much of the budget document into an easy-to-read format for our residents. The goal is to encourage resident awareness as it relates to Town finances through the condensed version of the budget. The report provides an “overview of our financial position and policies, and conveys our commitment to delivering responsive services and programs in a fiscally responsible manner.” (PAFR document). Invested significant time and effort in pursuing development of a facility plan for Westlake Academy, a process that is still underway. Deloitte University opened for full operation in October 2011 and has been an overwhelming success. While being built, it was the largest ($300 million) private construction project in Texas. It serves as Deloitte’s state -of-the art national and international learning center for its employees bringing Deloitte employees to Westlake from all over the world. Page 8 TRANSMITTAL LETTER What began as retail construction in FY10-11 came to fruition in FY11-12 with the opening of the new Quik Trip convenience store and the Centennial Fine Wine and Spirits store. This is Westlake’s first retail development outside of Solana. It is located along the Town’s western boundary at the northwest corner of SH170 and SH377 and has already had a positive impact on our sales and use tax collection rates. In FY11-12 the Town neared completion of the implementation of a development agreement with Hillwood Properties whereby, as a part of commitments Hillwood had for development of Deloitte University, they invested $4.6 million in street improvements on Westlake’s major roadways- Dove Road and JT Ottinger Road. Westlake was recognized again by Forbes Magazine as one of the wealthiest communities in the United States, with a median household income of $250,000. Our community shared this spotlight with Chevy Chase, MD, a city of twice our population size. The article mentioned Westlake’s small town feel, limited population, and also touched on many of our high-profile residents. Westlake’s Historic Preservation Society implemented their historic markers program with the first marker being located at the former Buck King homestead at Aspen and Pearson Lanes. The Society also held their first classic car show which was a major success both in terms of collector participation and attendance. The Town’s open enrollment charter school, Westlake Academy, finished its ninth year of operations with another strong showing of academic and extra-curricular results by our students. This year’s graduating class had an overall 89% success rate in obtaining the prestigious International Baccalaureate Diploma and the 28 graduates were offered collectively over $3.5 million in scholarships and grants. The Academy’s enrollment continues to grow with a preliminary number of 675 students enrolled for 2012-13 School Year. Westlake Academy was also ranked among the best high schools in America. U.S. News & World Report ranked the school as 37th in the nation, 5th in Texas and 6th in national charter schools. They further designated the Academy as a Gold Medal recipient. Newsweek listed the school as the 18th best high school in the United States and the Washington Post shows them as 36th out of 1,800 schools across the nation. FY 2012-13 BUDGET PREPARATION METHODOLOGY Certain assumptions, parameters, and approaches were utilized as the FY 2012-13 budget document was prepared consistent with our overall Town philosophy of operating our community with a focus on fiscal responsibility. These include; readily identifying and tracking cost increases as they relate to maintaining or increasing service levels, identifying the use of fund balances and inter-fund transfers, delineating the amount for employee compensation increases, and clearly explaining the conservative approach used for revenue estimating. Also, the Town Council’s financial policies (contained in the appendix of the budget), were followed in preparation of th e numbers. Highlights of these approaches and parameters are: Maintained minimum fund balances to exceed Town Council policy requirements (90 day fund balance) Page 9 TRANSMITTAL LETTER Conservative revenue estimating that identified one-time and on-going revenues. With a focus on “drill down” analysis to determine our actual on-going sales tax revenue stream on an annual basis. Estimated expenditures for current levels of service in FY 2012-13 were achieved by: a) Adjusting for actual spending in FY 2011-12 b) Deducting one-time FY 2011-12 expenditures to create the adopted base budget for the coming fiscal year. Any anticipated cost increases, due to inflation or program cost escalations, were identified and separated from the current base budget in the form of “service level adjustments” (SLA’s). Allocating resources to begin a two year process to move municipal employees to a market competitive position in terms of their compensation that mirrors our policy and practice in that regard for Westlake Academy faculty, (i.e. target being within 3% of the median of the market for our various municipal positions). This approach, recommended to be set by Council policy, has served our school well and Staff in turn recommends we utilize the same approach for the remainder of the organization, (i.e. target being within 3% of the market median for municipal employees as well). Most of our municipal positions are far below market in terms of compensation, even when taking into account the combined nature of many of our municipal positions (that they wear multi ple “hats” in the execution of their job duties). This gives us the opportunity to not only invest in this important organizational investment and resource, but to address it in a way that reasonably assures we are market competitive and can attract and retain employees within reasonable economic boundaries. There would be no performance pay proposed for FY 12-13 since Staff is recommending addressing our pay market deficiencies over the next 2 fiscal years. All costs for base budgets, as well as service level adjustments due to cost increases/inflation, were “scrubbed” through review and analysis by the Town Manager and Finance Director. Programs of service were analyzed during budget review sessions with the Leadership Team. This helps ensures maximum efficiency, effectiveness, and utilization of our financial resources. The sustainability of the funding request, as well as the economy realities we currently face, are a primary concern during any review process. GOVERNING AND MANAGING FOR OUTCOMES As our organization has developed, we have created a framework through the progression from a traditional strategic plan to a comprehensive governance system that is outcome focused. The end result is to create a high performing team that is focused on the overall goals and objectives established by the Council, customer service, program provision, financial stewardship and organizational and personal development. This team focus, along with the governance system, makes Westlake a truly unique community that produces top-notch results with a small staff while maximizing the use of public funds for our Town. Further, the framework links together these critical governance and management decision making tools called “Governing and Managing for Outcomes” which is designed to integrate: Vision driven strategic planning, strategy mapping, and outcome based performance indicators Ten (10) year financial forecasting, budgeting, and performance measurement linked to strategic priorities, objectives, and outcomes to ensure a long term approach that provides financial sustainability Page 10 TRANSMITTAL LETTER Aligning resources to prioritized outcomes Reporting to monitor progress in outcome achievement and accountability for results Utilizing citizen surveys to gauge service satisfaction levels with Town services and resident willingness to pay for those services Maintaining core services Funding and implementing a Five (5) Year Capital Improvement Plan The proposed budget delineates the next twelve months of the Town’s financial future and identifies the important projects and programs within our community. We will continue to focus on infrastructure development, community engagement, high-quality service provision and further develop the component of driving service excellence through our staff and program of services. All of these tasks are centered on the vision, values and missions statements the Council has identified as critical to our success. CLOSING THOUGHTS FOR FY 2012-13 As with all transmittal letters, this one is a little different than those from the previous few years. While we clearly understand the nation as a whole continues to try and recover from the economic downturn, the Town remains committed to budgeting and forecasting projections based on a fiscally conservative formula. We have accomplished many great things this past year through our use of partnerships and inventive strategies to govern our community. We have begun the process of reinvesting in our infrastructure and will continue to do so over the next several year s – paying special attention to unique cost sharing opportunities, both public and private. Our overall goal is to provide our residents with a living experience that is second-to-none. The Town staff is aware that the Town of Westlake does not create wealth, but instead, is entrusted with public dollars collected on behalf of our citizens. We are stewards who are fully vested in the success of the Town of Westlake and Westlake Academy. We exist as a municipal corporation for one reason and one reason only: to prioritize and deliver the best services possible with the resources provided to achieve an exceptional quality of life. This is a challenge the Staff takes very seriously, one that we pursue with vigor every day. High commendation is due to the Leadership Team for their work on this proposed budget. Additional recognition and thanks are due to Director of Finance Debbie Piper, and Finance Assistant Jaymi Ford, for their efforts in assembling this budget document. It takes long hours to make this not only a financial document, but a policy document that is easy for our citizens to read and understand. I appreciate their dedication and the effort they have invested in this process. Finally, on behalf of myself and the entire Town Staff, I would like to extend thanks and appreciation to the Westlake Town Council. Your countless volunteer hours, invested in governing Westlake to make it the best community we can be, is critical for our success. This year, all of your hard work and dedication was validated by receiving in the “Council of the Year” award. An honor that I know you will cherish, as it represents all the hard decisions, long debates, and many hours you put in each month, through your service as ambassadors for, and Council members of, the Town of Westlake! Sincerely yours, Thomas E. Brymer Town Manager/Superintendent Westlake Academy Page 11 TRANSMITTAL LETTER VISION STATEMENT Westlake is an oasis of tranquility and natural beauty amidst an ever expanding urban landscape. VISION POINTS ~ SENSE OF PLACE ~ Distinctive neighborhoods, architecturally vibrant corporate campuses, grazing longhorns, soaring red-tailed hawks, meandering roads and trails, lined with natural stone and native oaks.  ~ LEADERSHIP ~ A premiere place to live, leadership in public education, corporate and governmental partnerships, and high development standards.  ~ CARING COMMUNITY ~ Informed residents, small town charm and values, historical preservation.  ~ EXEMPLARY GOVERNANCE ~ Town officials, both elected and appointed, exhibit respect, stewardship, vision, and transparency.  ~ SERVICE EXCELLENCE ~ Public service that is responsive and professional, while balancing efficiency, effectiveness and financial stewardship.  COMMUNITY VALUES Innovation Educational Leaders Family Friendly and Welcoming Engaged Citizens Preservation of Our Natural Beauty Strong Aesthetic Standards Transparent Government Fiscal Responsibility MISSION STATEMENT “On behalf of the citizens, the mission of the Town of Westlake is to be a one-of-a-kind community that blends our rural atmosphere with our vibrant culture and metropolitan location.” Page 12 . AMOUNT Total Certified Values 826,881,629$ Protested Values (+)7,888,336 Less Properties not under protest or not certified (+)35,241,643 2011 tax ceilings (-)36,375,201 Total Taxable Value (=)833,636,407 Adopted Tax Rate Per /$100 Valuation (X)0.15684$ Estimated Tax Levy (=)1,307,475 Estimated Percent of Collections (X)100% Estimated Current Tax Collections (=)1,307,475$ Tax Rate per $100 Percent Estimated Valuation of Levy Collections GENERAL FUND $0.14197 90.52%$1,183,514 DEBT SERVICE FUND $0.01487 9.48%$123,962 TOTAL $0.15684 100.00%$1,307,475 Net General Debt Total Taxable Value Fund Rate Fund Rate Tax Rate $833,636,407 $0.14197 $0.01487 $0.15684 $913,119,313 $0.13835 $0.01849 $0.15684 $880,163,946 $0.15620 $0.00390 $0.16010 Fiscal Year 2013 proposed 2012 actual 2011 actual AD VALOREM PROPERTY TAX Revenue Allocation TAX RATE DISTRIBUTION HISTORICAL TAX INFORMATION Fiscal year 2012/2013 Page 13 TRANSMITTAL LETTER BUDGET OVERVIEW & FRAMEWORK This section attempts to help explain the meaning behind the numbers which are presented in this budget document. It gives perspective to the Town’s budgeting process, basis of budgeting and accounting, how the budget is amended and the fund accounting system. BBUUDDGGEETT OOVVEERRVVIIEEWW AANNDD FFRRAAMMEEWWOORRKK The Town of Westlake’s 2013 fiscal year begins on October 1, 2012 and ends September 30, 2013. It provides the framework to implement the Town’s vision, mission and value statements as set out by the Town Council. The Town’s annual budget is prepared in the context of a five (5) year financial forecast. The proposed budget is submitted to the Council approximately thirty to forty-five days before the beginning of the fiscal year for their consideration. The Town’s budget is allocated by fund. It is designed to provide a clear picture of proposed Town spending, allocation of financial resources, and priorities as well as how they are set to carry out the policy direction of the Council. In addition to a fund format, the budget is the beginning of efforts to show the allocation of the Town’s resources in concert with the Town’s strategic planning efforts. A “bottom-up” approach is used to solicit input from the staff Leadership Team as to their operations’ needs with an emphasis on:  Identifying costs to provide the current level of services.  Identifies additional cost increases needed to maintain the current level of service.  Additional resources necessary to provide new or increased levels of service.  Delineating changes in fund balance levels for each fund. The Town of Westlake staff is pleased to present the 2012-13 annual operating budget, which is the product of many hours of preparation as well as a response to ever-changing internal and external influences. As in previous years, efforts have been made to control expenditures while continuing to deliver an excellent level of service to our citizens. Concentrated efforts have been made to produce a document that clearly illustrates the uses of Town resources in a format that may be utilized as a resource tool by the Town Council, Town staff, and the citizens of Westlake. Our budget preparation process continues to be refined on an annual basis, operating within clearly defined budget preparation guidelines. The following procedures, which are guided by generally accepted budgeting practices, has been established: 1. The annual operating budget presents appropriations of expenditures and estimates of revenues for all local government funds. These revenues include sales and use taxes, ad valorem property tax, citation revenue, franchise taxes, mixed beverage taxes, license and permit fees, development fees, sales of printed material, interest income, water and sewer utility revenue, duct bank leases, and miscellaneous revenues. 2. The annual operating budget illustrates expenditures, anticipated revenues, and the estimated impact on reserves. 3. Budgets for each department are broken down into specific cost components, including payroll/salaries, payroll related & benefits, supplies, services, insurance, repair & maintenance, rent & utilities, economic development incentives, and capital outlay. 4. Revenue projections are prepared for each revenue source based on an analysis of historical revenue trends and current fiscal conditions. 5. The budget process includes a multi-year projection of all required capital improvements. Page 15 BBUUDDGGEETT OOVVEERRVVIIEEWW AANNDD FFRRAAMMEEWWOORRKK 6. Goals and objectives have been developed for each department and are incorporated into the evaluation of employees and performance of the organization. 7. A budget message summarizing local financial conditions and principal budget issues is presented to the governing council along with the annual budget. The layout and organization of the budget is designed to help the reader locate both financial and non-financial information in a timely fashion. The General Fund is divided into twelve departments. Each department has the following information included:  Description of the fund and it’s program’s trends, goals, highlights, measures and Vision Point Strategic Plan Impacts  Summary of Employee Staffing and Expenditures  Program budgeting for the Department The Fund Sections are broken down between General Fund, Westlake Academy Fund, Special Revenue Funds, Debt Service Fund, Enterprise Funds, Internal Service Funds, and Capital Projects Fund. Each Fund contains the following information:  “Fund Overview” describing the function of the fund and explaining the variances between the revenues and expenditures of FY 2011-12 and FY 2012-13  “Program Summary” of revenues and expenditures. Also included are sections detailing the Capital Improvement Plan and Long-Term Planning. The final two components include a Community Profile and an Appendix section. The Community Profile contains historical and current information regarding the Town of Westlake. The appendices section consists of a Glossary of Budget Terms, the Town’s Fiscal and Budgetary Policy, Investment Policy, Strategic Plan and the Town ordinance related to the adoption of the budget (after adoption). The budget contains financial data spanning two fiscal years. The current budget year ending September 30, 2012 is presented in its original adopted form, as well as an amended estimate. Actual totals for the fiscal year ending September 30, 2011 are also presented for comparison. BBAASSIISS OOFF AACCCCOOUUNNTTIINNGG//BBUUDDGGEETTIINNGG The accounts of the Town are organized on the basis of funds, each of which is considered to be a separate accounting entity. All governmental fund types are budgeted and accounted for on a Generally Accepted Accounting Practice (GAAP) basis for financial statement presentations. The Governmental Fund types use a financial resources measurement focus and utilize the modified accrual basis for accounting and budgeting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual, meaning that it is measurable and available. Available revenues are defined as those funds that are collectable within the current period, or collectable within a timeframe to pay liabilities of the current period. Expenditures generally represent a decrease in net financial resources and are recorded when a measurable fund liability is incurred. In some instances, such as the incurrence of long-term debt, expenditures related to interest on the debt is recorded in the period that it is due. Page 16 BBUUDDGGEETT OOVVEERRVVIIEEWW AANNDD FFRRAAMMEEWWOORRKK The Proprietary Fund types are accounted and budgeted for on a cost of services, or “Capital Maintenance” measurement focus using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recognized when incurred. For purposes of this budget presentation, depreciation is not displayed and capital expenditures and bond principal payments are shown as uses of funds. Governmental Fund Types Governmental fund types are those through which most governmental functions of the Town are financed. The acquisition, use, and balances of the Town’s expendable financial resources and the related liabilities (except those accounted for in the Proprietary and Fiduciary Fund types) are accounted for through Governmental Fund types. Descriptions of each fund contained in the Town’s budget are as follows: 1. The General Fund is the general operating fund of the Town. It is used to account for all Town revenues and expenditures except those required to be accounted for in other funds. Major functions financed by the General Fund include Finance, Administration, Building & Code Compliance, Fire/EMS, Public Works, Facilities and Grounds Maintenance, Human Resources, Parks and Recreation, Information Technology, and Engineering. Sources of revenue include sales and use taxes, development fees and permits, court revenue, and franchise taxes. The former Westlake Property Tax Reduction Sales Tax Fund received its funding from a ½ cent sales tax levy that was previously earmarked for the 4A Economic Development Corporation. The purpose of this fund was to reduce local property tax rates throughout Texas by providing cities with an additional unrestricted revenue source. These funds may be used for general Town expenditures, capital projects, or debt service. This fund was closed at FY 2010-2011 year end and revenues are now being recorded in the General Fund. 2. The Westlake Academy Fund incorporates all funds related to the Academy encompassing all operations and maintenance related to the school as well as State public school funding, Federal and state grants, and private donations used to support the daily school operations of the Academy. 3. Westlake’s Visitors Association Fund receives its primary funding from a 7% hotel occupancy tax adopted by the Town of Westlake in FY 1999-2000. Proceeds from the hotel occupancy tax are required to be used in accordance with statutory parameters including the promotion of travel and tourism in the Town of Westlake. 4. The Economic Development Fund was set up to maintain all receipts and disbursements of agreements between the Town and various corporations for economic development. There was confusion regarding the additional revenues being recorded in the General Fund and offset by expenditures. These balances offset to zero but skewed the analysis of each. The Town is hoping this fund will create more transparency to the public regarding these receipts and payments. 5. The 4B Economic Development Corporation Fund is a local option established under the Texas local government code. 4B funds are generated from a ½ cent sales tax levy and proceeds are used for debt service. Page 17 BBUUDDGGEETT OOVVEERRVVIIEEWW AANNDD FFRRAAMMEEWWOORRKK 6. The Lone Star Public Facilities Corporation was founded in 1996 and was designed “to provide for the acquisition, construction, rehabilitation, repair, equipping, furnishing and placement in service of public facilities in an orderly, planned manner and at the lowest possible borrowing costs.” The ideas was to “acquire, through the issuance of installment sale obligations, office buildings located within the State of Texas but outside the boundaries of Westlake, whose tenants will be limited to those entities which are qualifying tenants under applicable federal income tax law so that the interest payable with respect to the installment sale obligations will be exempt from federal income taxation.” There has been no activity in the fund for several years. 7. The Debt Service Fund is established to account for, and the payment of, general long-term debt principal and interest. This fund provides a clearer accounting of ongoing debt obligations compared to operating budgets. The Debt Service Fund is used to make scheduled payments for all bond issues associated with the building of the Civic Campus as well as a partial refunding of the 2002 series and various street/trail projects. 8. The Capital Projects Fund tracks the infrastructure and building projects (other than those financed by proprietary fund types), funded with general operating transfers, intergovernmental revenue, bond funds and other special funding methods. Capital expenditures are clearly identified by their respective funding sources, and projects are shown in a clear, concise format. Proprietary Fund Types Proprietary fund types operate in a manner similar to private business utilizing an accrual basis of accounting. Enterprise Funds Account for operations of governmental facilities operated in a manner similar to commercial enterprises where the intent is to recover, in whole or in part, the costs and expenses of providing goods and services to the public. Revenues are typically generated through usage fees based on individual demands of each customer. Enterprise funds may be used when the governing body has determined that periodic determination of revenue earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. 1. The Cemetery Fund includes all operations associated with the 5.5 acre cemetery located on J.T. Ottinger Road which was acquired during the year ended September 2008. 2. The Utility Fund accounts for water, wastewater and telecommunications conveyance (duct bank) services for the residents of the Town. All activities necessary to provide such services are accounted for in the Fund, including administration, operations, maintenance, financing and related debt service, and billing and collection. Additionally, the Town collects monthly solid collection fees in this fund which are paid to the Town’s solid waste franchisee. Page 18 BBUUDDGGEETT OOVVEERRVVIIEEWW AANNDD FFRRAAMMEEWWOORRKK Internal Service Funds Accounts for services and/or commodities furnished by a designated program to other programs within the Town. Funds include the following: 1. The General Maintenance & Replacement Fund (GMR) is an account to offset the future costs of repair and/or replacement of large capital assets due to age and use. Contributions from the Town’s General Fund are transferred on an annual basis; resulting in a cash balance which mitigates the cash flow impact of large maintenance and capital replacement costs. 2. The Utility Maintenance & Replacement Fund (UMR) is an account to offset the future costs of repair and/or replacement of large capital assets due to age and use. Contributions from the Town’s Utility Fund are transferred on an annual basis; resulting in a cash balance which mitigates the cash flow impact of large maintenance and capital replacement costs. RREELLAATTIIOONNSSHHIIPP BBEETTWWEEEENN FFUUNNDDSS AANNDD DDEEPPAARRTTMMEENNTTSS Ge n e r a l Se r v i c e s Ad m i n i s t r a t i o n Pl a n n i n g a n d De v e l o p m e n t To w n Se c r e t a r y Em e r g e n c y Se r v i c e s Mu n i c i p a l Co u r t Pu b l i c Wo r k s Fa c i l i t i e s Ma i n t e n a n c e Fi n a n c e Pa r k s a n d Re c r e a t i o n In f o r m a t i o n Te c h n o l o g y Hu m a n Re s o u r c e s Co m m u n i c a t i o n s Po l i c e Se r v i c e s FUND NAME 10 11 12 13 14 15 16 17 18 19 20 21 22 23 General Fund               4B Economic Development  Visitors Association       Cemetery Fund   Lone Star Public Facilities  Debt Service  Utility Fund      Utility Maintenance & Replacement  General Maintenance & Replacement      Capital Projects     Westlake Academy         Page 19 BBUUDDGGEETT OOVVEERRVVIIEEWW AANNDD FFRRAAMMEEWWOORRKK TTHHEE BBUUDDGGEETT PPRROOCCEESSSS The Town Manager submits the budget to the Town Council. The Town’s fiscal year begins each year on October 1st and ends on September 30th of the following calendar year. Prior to the beginning of the fiscal year, the Town Manager must submit a proposed budget, which includes:  A budget message  A consolidation statement of anticipated revenues and proposed expenditures for all funds  General fund resources in detail  Special fund resources in detail  A summary of proposed expenditures by department and activity  Detailed estimates of expenditures shown separately to support the proposed expenditure  A description of all bond issues outstanding  A schedule of the principal and interest payments of each bond issue The proposed revenues and expenditures must be compared to prior year revenues and expenditures. The budget preparation process begins early in the calendar year with the establishment of overall town goals, objectives, and analysis of current year operations compared to expenditures. Budget policies and procedures are reviewed at the same time to reduce errors and omissions. In May, the Finance Department prepares such items as budget forms and instructions for estimating revenues and expenditures. Department heads submit proposed baseline expenditures for current service levels and any additional one-time or on-going request they may have for their department. A round-table meeting is subsequently held with the Town Manager, the finance staff and each department head for review. After all funding levels are established and agreed upon; the proposed budget is presented by the Town Manager to the Town Council. A public hearing on the budget is conducted in accordance with state and local law. This meeting is held after the Council has reviewed the budget during a workshop. The Town Council approves a level of expenditure (or appropriation) for each fund to go into effect on October 1st, prior to the expenditure of any Town funds for that budget year. BBUUDDGGEETT AAMMEENNDDMMEENNTT PPRROOCCEESSSS The Town Manager may request that the current year budget be amended. In this process, the Town Manager will review the documentation and draft an ordinance to formally amend the current budget. This ordinance is presented to the Town Council for consideration. Following the consideration of the proposed amendment, the Town Council will vote on the amendment ordinance. If the amendment is approved, the necessary budget changes are then made. All budget amendments will be approved by the Town Council prior to the expenditure of funds in excess of the previously authorized budgeted amounts within each fund. Page 20 BBUUDDGGEETT OOVVEERRVVIIEEWW AANNDD FFRRAAMMEEWWOORRKK FFIINNAANNCCIIAALL PPOOLLIICCIIEESS The Town of Westlake is committed to financial management through integrity, prudent stewardship, planning, accountability, full disclosure and communication. The broad purpose of the Fiscal and Budgetary Policy is to enable the Town to achieve and maintain a long-term stable financial position and provide guidelines for the day-to-day planning and operations of the Town’s financial affairs. The Town Council annually reviews and approves these policies as part of the budget preparation process. A copy of these Policies can be found in the “Appendix” section of this budget. FFYY 1122//1133 BBUUDDGGEETT CCAALLEENNDDAARR MMAARR ** OORRIIEENNTTAATTIIOONN AANNDD OOVVEERRVVIIEEWW OOFF 22001122--1133 BBUUDDGGEETT PPRROOCCEESSSS ** FFIIVVEE YYEEAARR PPRROOJJEECCTTIIOONN SSPPRREEAADDSSHHEEEETTSS DDIISSTTRRIIBBUUTTEEDD FFOORR IINNPPUUTT ** FFOORRMMSS FFOORR CCAAPPIITTAALL PPRROOJJEECCTTSS AANNDD MMAAJJOORR MMAAIINNTTEENNAANNCCEE AAVVAAIILLAABBLLEE ** RREEVVIIEEWW OOFF CCAALLEENNDDAARR AANNDD PPRROOCCEESSSSEESS WWIITTHH CCOOUUNNCCIILL AAPPRR ** YYEEAARR--EENNDD EESSTTIIMMAATTEE SSPPRREEAADDSSHHEEEETTSS DDIISSTTRRIIBBUUTTEEDD FFOORR 1111//1122 AAMMEENNDDMMEENNTTSS ** FFIINNAANNCCEE AAMMEENNDDSS FFYY 1111//1122 BBUUDDGGEETT -- BBEECCOOMMEESS BBAASSEE FFYY 1122//1133 ** DDEEPPAARRTTMMEENNTTSS AACCCCEESSSS BBUUDDGGEETT TTOO RREEMMOOVVEE OONNEE TTIIMMEE RREEVVEENNUUEESS AANNDD EEXXPPEENNDDIITTUURREESS ** OOPPEERRAATTIINNGG BBAASSEELLIINNEE BBUUDDGGEETT AAVVAAIILLAABBLLEE FFOORR EEDDIITTIINNGG ** SSEERRVVIICCEE LLEEVVEELL AADDJJUUSSTTMMEENNTT FFOORRMMSS AAVVAAIILLAABBLLEE OONN SSHHAARREEDD DDRRIIVVEE MMAAYY ** DDEETTAAIILL RREEVVIIEEWW BBYY FFIINNAANNCCEE DDEEPPAARRTTMMEENNTT ** GGOOAALLSS AANNDD OOBBJJEECCTTIIVVEESS AAVVAAIILLAABBLLEE FFOORR EEDDIITTIINNGG OONN SSHHAARREEDD DDRRIIVVEE ** TTOOWWNN MMAANNAAGGEERR AANNDD FFIINNAANNCCEE BBEEGGIINN RREEVVIIEEWWSS WWIITTHH DDEEPPAARRTTMMEENNTTSS JJUUNN ** BBUUDDGGEETT MMOODDUULLEE OOPPEENN FFOORR CCHHAANNGGEESS TTOO BBUUDDGGEETTSS PPEERR RREEVVIIEEWWSS ** PPRREESSEENNTTAATTIIOONN OOFF 55--YYEEAARR FFOORREECCAASSTT JJUULL ** PPRREEPPAARRAATTIIOONN FFOORR BBUUDDGGEETT RREETTRREEAATT ** PPRREEPPAARRAATTIIOONN OOFF PPOOWWEERR PPOOIINNTT AAUUGG ** BBUUDDGGEETT RREETTRREEAATT ** PPUUBBLLIISSHH NNOOTTIICCEE RREEGGAARRDDIINNGG CCOONNSSIIDDEERRAATTIIOONN OOFF PPRROOPPEERRTTYY TTAAXX ** BBUUDDGGEETT WWOORRKKSSHHOOPP ** NNOOTTIICCEE FFOORR PPUUBBLLIICC HHEEAARRIINNGGSS PPOOSSTTEEDD IINN NNEEWWSSPPAAPPEERR ** PPRREESSEENNTT PPRROOPPOOSSEEDD FFYY1122//1133 MMUUNNIICCIIPPAALL BBUUDDGGEETT TTOO CCOOUUNNCCIILL SSEEPP ** PPUUBBLLIISSHH NNOOTTIICCEE OOFF PPUUBBLLIICC HHEEAARRIINNGG OONN BBUUDDGGEETT ** PPUUBBLLIICC HHEEAARRIINNGG OONN BBUUDDGGEETT ** AADDOOPPTTIIOONN OOFF FFYY1122//1133 OOPPEERRAATTIINNGG BBUUDDGGEETT OOCCTT ** FFIISSCCAALL YYEEAARR 22001122--22001133 BBEEGGIINNSS Page 21 FINANCIAL ANALYSIS ALL FUNDS This section gives the reader of this budget document an analysis of the amounts between the adopted budget for FY 2011/2012 and the estimated budget for the same year, as well as the variance explanations between the FY 2011/2012 estimated budget and the FY 2012/2013 proposed. Also several different tables are presented of all fund revenues, expenditures and fund balance amounts. FY 10/11 vs FY 11/12 FY 12/13 vs FY 11/12 Revision 6 FY 10/11 FY 11/12 FY 12/13 change change change change Description Actual Estimated Proposed Amount Percent Amount Percent General Sales Tax 1 4,609,625 17%3,800,000 20%3,560,000 12%(809,625)-18%(240,000)-6% Property Tax 2 1,257,246 5%1,434,151 7%1,307,483 4%176,905 14%(126,668)-9% Beverage Tax 3 19,721 0%32,750 0%32,750 0%13,029 66%0 0% Franchise Fees 4 586,836 2%664,925 3%664,925 2%78,089 13%0 0% Permits & Fees 5 530,645 2%476,150 2%476,150 2%(54,495)-10%0 0% Fines & Forfeits 6 605,705 2%640,000 3%560,000 2%34,295 6%(80,000)-13% Investment Earnings 7 53,883 0%42,715 0%39,965 0%(11,168)-21%(2,750)-6% Misc Income 8 260,684 1%180,013 1%159,361 1%(80,671)-31%(20,652)-11% Charge for Services 9 3,140,125 12%2,662,001 14%2,713,085 9%(478,124)-15%51,084 2% Hotel Tax Revenues 10 527,261 2%535,000 3%540,350 2%7,739 1%5,350 1% Total Revenues 11 11,591,731 43%10,467,705 54%10,054,068 34%(1,124,026)-10%(413,637)-4% Transfers In 12 7,100,267 27%2,166,830 11%4,144,760 14%(4,933,437)-69%1,977,930 91% Other Sources 13 2,152,000 8%0 0%8,500,000 29%(2,152,000)-100%8,500,000 0% Contributions 14 175,000 1%725,000 4%816,500 3%550,000 314%91,500 13% Total Other Sources 15 9,427,267 35%2,891,830 15%13,461,260 46%(6,535,437)-69%10,569,430 365% WA-Revenues 16 4,977,309 19%5,782,921 30%5,839,434 20%805,612 0%56,513 1% WA-Other Sources 17 659,704 2%104,844 1%44,823 0%(554,860)0%(60,021)-57% Westlake Academy 18 5,637,013 21%5,887,765 31%5,884,257 20%250,752 0%(3,508)0% Total Revenues and Other Sources 19 26,656,012$ 19,247,300$ 29,399,586$ (7,408,712)$ -28%10,152,286$ 53% Payroll Salaries 20 1,832,157 8%1,997,629 10%2,056,805 8%165,472 9%59,176 3% Payroll Related 21 565,657 2%630,988 3%625,139 2%65,331 12%(5,849)-1% Total Payroll 22 2,397,814 10%2,628,617 13%2,681,944 10%230,803 10%53,327 2% Debt 23 2,277,551 10%1,826,566 9%1,834,266 7%(450,985)-20%7,701 0% ED Incentives 24 706,391 3%240,758 1%215,758 1%(465,632)-66%(25,000)-10% Insurance 25 29,725 0%27,800 0%29,776 0%(1,925)-6%1,976 7% Maintenance 26 234,089 1%269,959 1%259,047 1%35,870 15%(10,912)-4% Rent & Utilities 27 420,260 2%399,149 2%416,739 2%(21,111)-5%17,590 4% Service 28 1,827,168 8%2,534,448 13%2,306,191 9%707,280 39%(228,257)-9% Supplies 29 142,811 1%164,248 1%164,669 1%21,437 15%421 0% Water Purchases 30 1,015,869 4%1,110,600 5%1,110,600 4%94,731 9%0 0% Total Expenditures 31 6,653,863 29%6,573,528 33%6,337,046 24%(80,336)-1%(236,481)-4% Transfers Out 32 7,100,267 31%2,166,830 11%4,144,760 16%(4,933,437)-69%1,977,930 91% Other Uses 33 0 0%0 0%0 0%0 0%0 0% Total Other Uses 34 7,100,267 31%2,166,830 11%4,144,760 16%(4,933,437)-69%1,977,930 91% Capital Outlay 35 126,326 1%210,700 1%38,700 0%84,374 67%(172,000)-82% Capital Projects 36 1,220,101 5%2,502,858 12%7,010,790 27%1,282,756 105%4,507,933 180% Total Capital 37 1,346,428 6%2,713,558 13%7,049,490 27%1,367,130 102%4,335,933 160% WA - Expenditures 38 4,884,985 21%5,947,146 29%5,818,816 22%1,062,161 0%(128,330)-2% WA-Other Uses 39 603,000 3%174,271 1%57,663 0%(428,729)0%(116,608)-67% Westlake Academy 40 5,487,985 24%6,121,417 30%5,876,479 23%633,432 0%(244,938)-4% Total Expenditures and Other Uses 41 22,986,357$ 20,203,949$ 26,089,720$ (2,782,408)$ -12%5,885,770$ 29% - Excess Revenues Over (Under) Expenditures 42 3,669,655$ (956,649)$ 3,309,866$ (4,626,304)$ -126%4,266,515$ -446% Beginning Fund Balance 43 10,591,970$ 14,261,625$ 13,304,976$ 3,669,655$ 35%(956,648)$ -7% Ending Fund Balance 44 14,261,625$ 13,304,976$ 16,614,842$ (956,648)$ -7%3,309,866$ 25% THREE YEAR ANALYSIS COMPARISONREVENUES, EXPENDITURES, FUND BALANCEALL SOURCESFISCAL YEAR 2012/2013 Page 23 Fund Name Amount Percent 1 General Fund 4,226,543 5,518,605 7,247,103 2,498,044 15%(1,728,499) -41% 2 4B Economic Development 237,847 890,500 920,230 208,117 1%(29,730) -12% 3 Economic Development - 215,758 215,758 - 0%- 0% 4 Lone Star 13,576 45 - 13,621 0%45 0% 5 Visitors Association 997,319 561,900 697,138 862,081 5%(135,238) -14% 6 Debt Service 29,796 1,586,452 1,616,248 (0) 0%(29,796) -100% 7 Cemetery Fund 148,638 5,575 5,400 148,813 1%175 0% 8 Utility Fund 2,970,299 4,807,119 4,662,444 3,114,974 19%144,675 5% 9 Utility Maintenance 92,840 50,125 52,450 90,515 1%(2,325) -3% 10 General Maintenance 855,729 551,750 329,220 1,078,259 6%222,530 26% 11 Westlake Academy 683,309 5,884,257 5,876,479 691,087 4%7,778 1% 12 Capital Projects 3,049,080 9,327,500 4,467,249 7,909,331 48%4,860,251 159% TOTAL $13,304,976 $29,399,586 $26,089,720 $16,614,842 100%$3,309,866 25% FY2013 Projected Beginning Fund Balance FY2013 Projected Ending Fund Balance Percent per Fund PROPOSED FUND BALANCES ALL SOURCES - VARIANCE REPORT FISCAL YEAR 2012/2013 FY2012 vs FY2013 increase (decrease) Total Revenues and Other Sources Total Expenditures and Other Uses Page 24 ALL FUNDS OVERVIEW FY 2012/2013 FUND BALANCE COMPARISON FY 10/11 ACTUAL vs. FY 11/12 ESTIMATED  The estimated ending fund balance at September 30, 2012 totals $13,304,976; o a 7% decrease of $956,649 from the September 30, 2011 actual ending fund balance of $14,261,625 FY 10/11 FY 11/12 change change Fund # Fund Name Actual Estimated Amount Percent 100 General Fund 3,323,861 4,226,543 902,682 27% 200 4B Economic Development 267,577 237,847 (29,730) -11% 210 Economic Development 0 0 0 0% 418 Lone Star 13,531 13,576 45 0% 220 Visitors Association 1,111,281 997,319 (113,962) -10% 300 Debt Service 7,504 29,796 22,292 0% 255 Cemetery 148,963 148,638 (325) 0% 500 Utility Fund 3,103,441 2,970,299 (133,142) -4% 510 Utility Maintenance 42,640 92,840 50,200 118% 600 General Maintenance 691,535 855,729 164,194 24% 199 Westlake Academy 916,961 683,309 (233,652) 0% 410 Capital Projects 4,634,332 3,049,080 (1,585,252) -34% TOTAL $14,261,625 $13,304,976 -$956,649 -7% The primary sources of this decrease are noted below by fund: General Fund increased $902,682  General sales tax revenue increased $1,142,981 (Property tax reduction revenues are now being recorded in the General Fund. They were recorded in Property Tax Reduction Fund in FY 10/11).  Service expenses increased $183,614 o Capital outlay expenses increased $94,415 (Primarily due to the purchase of an attack fire brush truck). o Payroll and related expenses increased $79,442 (Funding for 1% market pay adjustments as well as one-time performance pay budgeted in FY 11/12). Capital Projects Fund decreased by $1,585,252  Project expenditures totaled $1.6M (an increase of $687,735 from the prior year).  Based on 5 year CIP Project Description FY 10/11 Actuals FY 11/12 Estimated Change Aspen Lane Recon/Drainage $ 214,022 $ - $ (214,022) Mahotea Boone Reconst/Drainage 88,191 - (88,191) WA Dining Hall Improvements 78,085 - (78,085) Streets Survey 29,355 20,000 (9,355) SH114/Hwy170 Enhancements 7,500 - (7,500) Roanoke Road Recon/Drain South 2,900 - (2,900) Westlake Academy Expansion - 35,000 35,000 Hwy 377 Westport Parkway Sign - 50,000 50,000 Westlake Portion of Hillwood Projects 4,740 85,000 80,260 Roanoke Road Recon/Drain North 3,348 192,443 189,095 FM1938 Town Improvements 517,956 808,609 290,653 Stagecoach Hills Recon/Drain 7,220 450,000 442,780 $ 953,317 $ 1,641,052 $ 687,735 Page 25 ALL FUNDS OVERVIEW FY 11/12 ESTIMATED vs. FY 12/13 PROPOSED  The September 30, 2012 proposed ending fund balance totals $16,614,842; o a 25% increase of $3,309,866 from the September 30, 2012 estimated ending fund balance of $13,304,976 FY 11/12 FY 12/13 change change Fund # Fund Name Estimated Proposed Amount Percent 100 General Fund 4,226,543 2,498,044 (1,728,499) -41% 200 4B Economic Development 237,847 208,117 (29,730) -12% 210 Economic Development 0 0 0 0% 418 Lone Star 13,576 13,621 45 0% 220 Visitors Association 997,319 862,081 (135,238) -14% 300 Debt Service 29,796 (0) (29,796) 0% 255 Cemetery 148,638 148,813 175 0% 500 Utility Fund 2,970,299 3,114,974 144,675 5% 510 Utility Maintenance 92,840 90,515 (2,325) -3% 600 General Maintenance 855,729 1,078,259 222,530 26% 199 Westlake Academy 683,309 691,087 7,778 0% 410 Capital Projects 3,049,080 7,909,331 4,860,251 159% TOTAL $13,304,976 $16,344,842 $3,039,866 25% The primary sources for this decrease are indicated below by Fund: General Fund decreased $1,728,499  Contribution revenue decreased $325,000 (Academy will not transfer indirect costs to the Town during FY 2012/13)  Transfers out increased $2,035,966 o This amount is composed primarily of a $2M transfer in (inter-fund loan) to the Utility Fund in FY 2012-13 for the construction of a ground storage tank. Funds are to be repaid over the next five (5) years Capital Projects Fund increased $4,860,251  Contributions increased $416,500  Service Expenses decreased $400,000 o Transfer of Texas Student Housing Funds to Westlake Academy Foundation in FY 2011/12  Capital Project expense increased $2,826,198 (Based on 5-Year CIP)  Bond Proceeds increased $8,500,000 (Proposed issuance for Academy facilities) o These proceeds will be used to fund construction of three new buildings at Westlake Academy; Cafetorium – includes stage, dressing area, storage and catering kitchen for dining and general purposes; approximately 9,600 sf. Three story Secondary School - includes 15 classrooms, flex and office space; will be designed to allow for future addition if needed; approximately18,900 sf. Field-house - will house locker rooms to be used for both athletics and PE; a visiting team locker room; storage for equipment; offices and space to be used for the PE program; approximately 9,600 sf. Page 26 19%20%3%1%2%0%5%32%0%16%0%2% GF WA 4B ED VA CF DS CP LS UF UM GM FY 12/13 % of FY 11/12 change change 100 199 200 210 220 255 300 410 418 500 510 600 Proposed Total Estimated Amount Percent General Sales Tax 2,490,000 - 890,000 180,000 - - - - - - - - 3,560,000 12% 3,800,000 (240,000)-6% Property Tax 1,183,514 - - - - - 123,969 - - - - - 1,307,483 4% 1,434,151 (126,668)-9% Beverage Tax 32,750 - - - - - - - - - - - 32,750 0.1% 32,750 - 0% Franchise Fees 664,925 - - - - - - - - - - - 664,925 2% 664,925 - 0% Permits/Fees 476,150 - - - - - - - - - - - 476,150 2% 476,150 - 0% Fines/Forfeits 560,000 - - - - - - - - - - - 560,000 2% 640,000 (80,000)-13% Interest 13,470 - 500 - 2,900 175 - 11,000 45 10,000 125 1,750 39,965 0% 42,715 (2,750)-6% Misc Income 51,277 - - - 18,650 - - - - 89,434 - - 159,361 1% 180,013 (20,652)-11% Charge for Services - - - - - 5,400 - - - 2,707,685 - - 2,713,085 9% 2,662,001 51,084 2% Hotel Tax - - - - 540,350 - - - - - - - 540,350 2% 535,000 5,350 1% Total Revenues 5,472,086 - 890,500 180,000 561,900 5,575 123,969 11,000 45 2,807,119 125 1,750 10,054,068 34%10,467,705 (413,637)-4% Transfers In 46,519 - - 35,758 - - 1,462,483 - - 2,000,000 50,000 550,000 4,144,760 14% 2,166,830 1,977,930 91% Other Sources - - - - - - - 8,500,000 - - - - 8,500,000 29% - 8,500,000 0% Contributions - - - - - - - 816,500 - - - - 816,500 3% 725,000 91,500 13% Total Other Sources 46,519 - - 35,758 - - 1,462,483 9,316,500 - 2,000,000 50,000 550,000 13,461,260 46%2,891,830 10,569,430 365% WA Revenues - 5,839,434 - - - - - - - - - - 5,839,434 20% 5,782,921 56,513 1% WA Others Sources - 44,823 - - - - - - - - - - 44,823 0.2% 104,844 (60,021)-57% Westlake Academy - 5,884,257 - - - - - - - - - - 5,884,257 20%5,887,765 (3,508)0% Total All Funds 5,518,605$ 5,884,257$ 890,500$ 215,758$ 561,900$ 5,575$ 1,586,452$ 9,327,500$ 45$ 4,807,119$ 50,125$ 551,750$ 29,399,586$ 100%$19,247,300 $10,152,286 53% FISCAL YEAR 2012/2013 PROPOSED REVENUES AND OTHER FINANCING SOURCES ALL SOURCES - VARIANCE REPORT FY12 vs FY13 Page 27 ALL FUNDS OVERVIEW FY 2012/2013 REVENUES AND OTHER FINANCING SOURCES Comparing the FY 11/12 estimated revenues to FY 12/13 proposed revenues: • Total Town revenues (all funding sources) are budgeted at $29,399,586 • A 53% increase of $10,152,286 from the FY 11/12 estimate FY 11/12 FY 12/13 % of Change Change Fund # Fund Name Estimated Proposed Total Amount Percent 100 General Fund 6,169,127 5,518,605 19% (650,522) -11% 199 Westlake Academy 5,887,765 5,884,257 20% (3,508) 0% 200 4B Economic Development 950,500 890,500 3% (60,000) -6% 210 Economic Development 240,758 215,758 1% (25,000) -10% 220 Visitors Association 556,550 561,900 2% 5,350 1% 255 Cemetery 5,575 5,575 0% - 0% 300 Debt Service 1,642,320 1,586,452 5% (55,868) -3% 410 Capital Projects 455,800 9,327,500 32% 8,871,700 1946% 418 Lone Star 45 45 0% - 0% 500 Utility Fund 2,756,035 4,807,119 16% 2,051,084 74% 510 Utility Maintenance 50,200 50,125 0% (75) 0% 600 General Maintenance 532,625 551,750 2% 19,125 4% TOTAL $19,247,302 $29,399,586 100% $10,152,286 53% The primary sources for this increase is noted below; General Fund decreased $650,522 • Contributions decreased by $325,000 (no indirect transfer from Academy during FY 12-13) • General Sales Tax decreased $155,000 (reduction of presumed one-time payments) • Fines and Forfeitures decreased $80,000 • Property Tax decreased $78,539 (based on certified tax rolls-see page 4 of Transmittal letter for additional detail) Capital Projects Fund increased $8,871,700 • Contributions increased $416,500 (primarily due to a $670K Green Belt grant from TxDot related to landscaping of the medians on FM 1938/Davis Blvd. • Bond Proceeds increased $8,500,000 (proposed Westlake Academy facility expansion) Utility Fund increased $2,051,084 • Transfers increased by $2,000,0000 (interfund loan from General Fund for construction of ground storage tank) Page 28 ALL FUNDS OVERVIEW • Charges for Services increased $51,084 (change in accounting practices – showing total revenues from waste management vs only showing net revenues after payments to vendor and state) Largest Revenue Streams: 1. Capital Projects Fund 32% o 91% Bond Proceeds $8,500,000 o 9% Contributions $ 816,500 2. Westlake Academy 20% o 76% State Revenues $4,488,261 o 22% Local Revenues $1,281,934 3. General Fund 19% o 45% General Sales Tax $2,490,000 o 21% Property Tax- $1,183,514 o 12% Franchise Fees $ 664,925 o 10% Fines & Forfeits $ 560,000 o 9% Permits & Fees $ 476,150 4. Utility Fund 16% o 73% Water Revenue $2,059,000 o 21% Waste/Sewer/Trash $ 528,600 Page 29 28%23%4%1%3%0%6%17%18%0%1% GF WA 4B ED VA CF DS CP UF UM GM FY 12/13 % of FY 11/12 change change 100 199 200 210 220 255 300 410 500 510 600 Proposed Total Estimated Amount Percent Payroll Salaries 1,527,768 - - - 255,225 - - - 273,812 - - 2,056,805 8%1,997,629 59,176 3% Payroll Related 625,139 - - - - - - - - - - 625,139 2%630,988 (5,849) -1% Payroll & Related 2,152,907 - - - 255,225 - - - 273,812 - - 2,681,944 10%2,628,617 53,327 2% Debt - - - - - - 1,613,323 - 220,943 - - 1,834,266 7%1,826,566 7,701 0% ED Incentives - - - 215,758 - - - - - - - 215,758 1%240,758 (25,000) -10% Insurance 23,678 - - - - - - - 6,098 - - 29,776 0%27,800 1,976 7% Maintenance 115,747 - - - - 1,800 - - 141,500 - - 259,047 1%269,959 (10,912) -4% Rent & Utilities 269,770 - - - 35,677 - - - 111,292 - - 416,739 2%399,149 17,590 4% Services 1,564,764 - - - 213,075 3,600 2,925 - 521,828 - - 2,306,191 9%2,534,448 (228,257) -9% Supplies 157,219 - - - 450 - - - 7,000 - - 164,669 1%164,248 421 0% Water Purchases - - - - - - - - 1,110,600 - - 1,110,600 4%1,110,600 - 0% Total Expenditures 2,131,177 - - 215,758 249,202 5,400 1,616,248 - 2,119,261 - - 6,337,046 24%6,573,528 (236,481) -4% Transfers Out 2,944,319 - 920,230 - 192,711 - - - 87,500 - - 4,144,760 16%2,166,830 1,977,930 91% Other Uses - - - - - - - - - - - - 0%- - 0% Total Other Uses 2,944,319 - 920,230 - 192,711 - - - 87,500 - - 4,144,760 16%2,166,830 1,977,930 91% Capital Outlay 18,700 - - - - - - - 20,000 - - 38,700 0%210,700 (172,000) -82% Capital Projects - - - - - - - 4,467,249 2,161,871 52,450 329,220 7,010,790 27%2,502,858 4,507,933 180% Total Capital 18,700 - - - - - - 4,467,249 2,181,871 52,450 329,220 7,049,490 27%2,713,558 4,335,933 160% WA - Expenditures - 5,818,816 - - - - - - - - - 5,818,816 22%5,947,146 (128,330) -2% WA - Other Uses - 57,663 57,663 0%174,271 (116,608) -67% Westlake Academy - 5,876,479 - - - - - - - - - 5,876,479 23%6,121,417 (244,938) -4% Total All Funds $7,247,103 $5,876,479 $920,230 $215,758 $697,138 $5,400 $1,616,248 $4,467,249 $4,662,444 $52,450 $329,220 $26,089,720 100%$20,203,949 $5,885,770 29% PROPOSED EXPENDITURES AND OTHER OPERATING USES ALL SOURCES - VARIANCE REPORT FISCAL YEAR 2012/2013 FY12 vs FY13 Page 30 AALLLL FFUUNNDDSS OOVVEERRVVIIEEWW FY 2012/2013 EXPENDITURES AND OTHER OPERATING USES Comparing the FY 11/12 estimated expenditures to FY 12/13 proposed expenditures; • Total Town expenditures (all funding uses) are budgeted at $26,089,720 • A 29% increase of $5,885,770 from FY11/12 estimated expenditures FY 11/12 FY 12/13 % of Change Change Fund # Fund Name Estimated Proposed Total Amount Percent 100 General Fund 5,266,445 7,247,103 27% 1,980,659 38% 199 Westlake Academy 6,121,417 5,876,479 22% (244,938) -4% 200 4B Economic Development 980,230 920,230 3% (60,000) -6% 210 Economic Development 240,758 215,758 1% (25,000) -10% 220 Visitors Association 670,512 697,138 3% 26,626 4% 255 Cemetery 5,900 5,400 0% (500) -8% 300 Debt Service 1,620,028 1,616,248 6% (3,780) 0% 410 Capital Projects 2,041,052 4,662,444 18% 2,426,198 119% 418 Lone Star - - 0% - 0% 500 Utility Fund 2,889,177 4,662,444 18% 1,773,267 61% 510 Utility Maintenance - 52,450 0% 52,450 100% 600 General Maintenance 368,431 329,220 1% (39,211) -11% TOTAL $20,203,949 $26,089,720 100% $5,885,770 29% The primary source of this increase is noted below: Capital Projects Fund increased $2,426,198 FY 11/12 FY 12/13 Estimated Proposed Project Description Budget Budget Variance 31 Stagecoach Hills Recon/Drain 450,000 41,680 (408,320) 99 Donation Expense 400,000 - (400,000) 32 Roanoke Road Recon/Drain North 192,443 - (192,443) 47 Hwy 377 Westport Parkway Sign 50,000 25,000 (25,000) 28 Streets Survey 20,000 30,645 10,645 42 Trail Connection at 114/Solana - 15,000 15,000 46 WA North Driveway Lighting - 40,000 40,000 41 Dove Vaquero to Terra Bella - 221,995 221,995 30 SH114/Hwy170 Enhancements - 345,460 345,460 20 FM1938 Town Improvements 808,609 1,353,469 544,860 45 Hillwood Misc Projects 85,000 1,044,000 959,000 48 Westlake Academy Expansion 35,000 1,350,000 1,315,000 $2,041,052 $4,467,249 $2,426,198 Page 31 AALLLL FFUUNNDDSS OOVVEERRVVIIEEWW General Fund increased $1,980,659 • Transfers Out to the Utility Fund $2,000,000 o This amount is composed primarily of a $2M transfer out (inter-fund loan) to the Utility Fund in FY 2012-13 for the construction of a ground storage tank. Funds are to be repaid over the next five (5) years Utility Fund increased $1,773,267 • Ground Storage Tank Capital Project $2,000,000 o This amount is composed primarily of a $2M transfer in (inter-fund loan) to the Utility Fund in FY 2012-13 for the construction of a ground storage tank. Funds are to be repaid over the next five (5) years Largest expenditures types include: 1. General Fund 29% o 30% - Payroll and Related $2,152,907 o 29% - Operating Expenses $2,131,177 o 41% - Transfers Out $2,944,824 2. Westlake Academy 22% o 77% - Payroll and Related $4,492,764 o 13% - Services $ 749,490 o 5% - Supplies $ 286,576 o 5% - Other Operating $ 289,986 3. Utility Fund 19% o 51% - Operating Expenses $2,393,073 o 47% - Capital Projects $2,219,796 Page 32 This page is intentionally blank Page 33 PERSONNEL AND ORGANIZATION C ITIZENS OF W ESTLAKE M AYOR AND T OWN C OUNCIL Town Attorney Town Manager Supervisor Finance Assistant to the Town Manager and Court Administrator Fire Chief Human Resources/ Information Technology Public Works Facilities Maintenance/ Parks & Recreation Planning & Development/ Building Inspector Town Secretary Administrative Intern Finance Clerk Finance Assistant 6 Firefighter Paramedics 2 Lieutenants Administrative Clerk (.33) Administrative Clerk (.33) Part Time Clerk Deputy Clerk Marshal Judge Texas Student Housing Executive Director Board Secretary Administrative Coordinator Primary Principal Administrative Assistants (3) Dining Hall Nurse PYP Coordinator PYP Teachers PYP Counselor PYP Special Ed. Librarian MYP/DP Coordinator MYP/DP Teachers MYP/DP Counselors MYP/DP Special Ed Exemplary Governance Town Officials, Both Elected and Appointed, Exhibit Respect, Stewardship, Vision, and Transparency Service Excellence Public Service that is Responsive and Professional, while balancing Efficiency, Effectiveness and Financial Stewardship Secondary Principal Communications Part Time Utility Billing Clerk Technician Athletic Director Personnel staffing levels for the Town of Westlake are presented in full-time equivalents (FTE) positions. For example, a position staffed for 40 hours per week for 52 weeks per year (2,080 hours) equals one full-time equivalent position. An FTE position of .33 refers to a position that is funded for 686.40 hours per year. Administrative Clerk (.33) Page 35 revision 04 Position FY 08/09 Actual FY 09/10 Actual FY 10/11 Actual FY 11/12 Estimated FY 12/13 Proposed change Town Manager 1.00 1.00 1.00 1.00 1.00 - Assistant to the Town Manager 1.00 1.00 1.00 0.75 0.75 - Part-Time Clerk 0.25 0.00 0.00 0.00 0.00 - Part-Time Intern 0.50 0.50 0.75 0.75 0.75 - Planning & Development Director 1.00 1.00 1.00 1.00 1.00 - Part-Time Clerk 0.33 0.00 0.00 0.00 0.00 - Administrative Clerk 0.00 0.33 0.33 0.33 0.3333 - Town Secretary 1.00 1.00 1.00 1.00 1.00 - Fire/EMS Coordinator 0.00 0.00 0.00 0.00 0.00 - Fire Chief 1.00 1.00 1.00 1.00 1.00 - Lt. Firefighter/Paramedics 2.00 2.00 2.00 2.00 2.00 - Firefighter/Paramedics 7.00 6.00 6.00 6.00 6.00 - Court Administrator 1.00 1.00 1.00 0.25 0.25 - Supervisor 0.00 0.00 0.00 1.00 1.00 - Deputy Clerk (1)1.00 1.00 1.00 0.00 0.00 - Deputy Clerk (2)1.00 1.00 1.00 1.00 1.00 - Judge 1.00 1.00 1.00 1.00 1.00 - Marshal 1.00 1.00 1.00 1.00 1.00 - Warrant Officer 0.00 0.00 0.00 0.00 0.00 - Part-Time Clerk 0.25 0.50 0.50 0.50 0.50 - Public Works Superintendent 1.00 1.00 1.00 1.00 1.00 - Utility Technician 0.50 0.50 0.50 1.00 1.00 - Part-Time Utility Billing Clerk 0.00 0.00 0.00 0.00 0.75 0.75 Facilities Maintenance Director 0.50 0.50 0.50 0.50 0.50 - Building Technician 0.25 0.25 0.25 0.00 0.00 - Part-Time Clerk 0.33 0.00 0.00 0.00 0.00 - Administrative Clerk 0.00 0.33 0.33 0.33 0.3333 0.00 Finance Director 1.00 1.00 1.00 1.00 1.00 - Finance Assistant 1.00 1.00 1.00 1.00 1.00 - Finance Clerk 1.00 1.00 1.00 1.00 1.00 - Parks & Recreation Director 0.50 0.50 0.50 0.50 0.50 - Park Technician 0.25 0.25 0.25 0.00 0.00 - Information Technology Director 0.00 0.00 0.00 0.50 0.25 (0.25) Human Resources Director 1.00 1.00 1.00 0.50 0.75 0.25 Part-Time Clerk 0.33 0.00 0.00 0.00 0.00 - Administrative Clerk 0.00 0.33 0.33 0.33 0.3333 - Communications Director 0.00 0.00 0.00 1.00 1.00 - Total 28.00 27.00 27.25 27.25 28.00 0.75 Position Summary FY 2012/2013 Page 36 FY 2012/2013 BUDGET SUMMARY PERSONNEL SUMMARY Personnel staffing levels for the Town of Westlake are presented in full-time equivalents (FTE) positions. For example, a position staffed for 40 hours per week for 52 weeks per year (2,080 hours) equals one full-time equivalent position. For firefighter/paramedic positions, an FTE of 2,912 hours per year, or an average of 56 hours per week is used. An FTE position of .50 refers to a position that is funded for 1,040 hours per year (2,080 x .50). The personnel count includes vacant positions. The total personnel staffing for the Town of Westlake in FY2013 is budgeted at 28 FTE positions. This represents an increase of .75 FTE from the FY2012 total of 27.25.  Public Works department added .75 positions for the addition of a utility billing clerk.  Information Technology changed departmental allocations of .25 FTE resulting in a decrease to this department and an increase to the Human Resources department. FY 11/12 FY 12/13 change change Dept # Department Name Estimated Proposed Amount Percent 11 Town Manager 2.50 2.50 - 9% 12 Planning & Development 1.33 1.33 - 5% 13 Town Secretary 1.00 1.00 - 4% 14 Emergency Services 9.00 9.00 - 32% 15 Municipal Court 4.75 4.75 - 17% 16 Public Works 2.00 2.75 0.75 10% 17 Facilities Maintenance 0.83 0.83 - 3% 18 Finance Dept 3.00 3.00 - 11% 19 Park & Recreation 0.50 0.50 - 2% 20 Information Technology 0.50 0.25 (0.25) 1% 21 Human Resources 0.83 1.08 0.25 4% 22 Communications 1.00 1.00 - 4% Total Employees 27.25 28.00 0.75 100% 2.50 1.33 1.00 9.00 4.75 2.75 0.83 3.00 0.50 0.25 1.08 1.00 Town Manager Planning & Development Town Secretary Emergency Services Municipal Court Public Works Facilities Maintenance Finance Dept Park & Recreation Information Technology Human Resources Communications Page 37 Employee Allocations by Fund Department Name General Fund Utility Fund Visitor Fund TOTAL Town Manager 1.98 0.26 0.26 2.50 Planning & Development 1.33 - - 1.33 Town Secretary 1.00 - - 1.00 Emergency Services 9.00 - - 9.00 Municipal Court 4.75 - - 4.75 Public Works 0.75 2.00 - 2.75 Facilities Maintenance 0.42 - 0.42 0.83 Finance Dept 1.25 1.00 0.75 3.00 Park & Recreation 0.25 - 0.25 0.50 Information Technology 0.25 - - 0.25 Human Resources 1.03 0.03 0.03 1.08 Communications - - 1.00 1.00 Total Employees 22.00 3.29 2.71 28.00 As of 2011, there were 992 residents in the Town of Westlake. For FY2013 this equals a ratio of 35.43 residents per each full-time equivalent employee. This is a decrease of .98 based on the FY2012 FTE postions of 27.25. Employees by Classsification Department Name Full Time Part Time TOTAL Town Manager 1.75 0.75 2.50 Planning & Development 1.33 - 1.33 Town Secretary 1.00 - 1.00 Emergency Services 9.00 - 9.00 Municipal Court 4.75 - 4.75 Public Works 2.00 0.75 2.75 Facilities Maintenance 0.83 - 0.83 Finance Dept 3.00 - 3.00 Park & Recreation 0.50 - 0.50 Information Technology 0.25 - 0.25 Human Resources 1.08 - 1.08 Communications 1.00 - 1.00 Total Employees 26.50 1.50 28.00 General Fund, 22.00, 79% Utility Fund, 3.29 , 12% Visitor Fund, 2.71 , 9% Full Time, 26.50 , 95% Part Time, 1.50 , 5% Page 38 This page is intentionally blank Page 39 GENERAL FUND General Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 General Sales Tax On-going 799,043 1,737,500 1,970,000 1,965,000 0%(5,000) 2 3 General Sales Tax One-time 377,976 - 350,000 200,000 -43%(150,000) 3 4 General Sales Tax WA Indirect 325,000 325,000 325,000 325,000 0%- 4 5 Property Tax 1,226,689 1,156,842 1,262,053 1,183,514 -6%(78,539) 5 6 Hotel Tax - - - - 0%- 6 7 Contributions 175,000 304,100 325,000 - -100%(325,000) 7 8 Charge for Services - - - - 0%- 8 9 Beverage Tax 19,721 17,750 32,750 32,750 0%- 9 10 Franchise Fees 586,836 582,550 664,925 664,925 0%- 10 11 Permits & Fees 520,645 480,890 476,150 476,150 0%- 11 12 Fines & Forfeitures 605,705 536,611 640,000 560,000 -13%(80,000) 12 13 Investment Earnings 10,408 15,035 13,470 13,470 0%- 13 14 Misc Income 96,079 52,700 63,929 51,277 -20%(12,652) 14 15 Total Revenues 4,743,102 5,208,978 6,123,277 5,472,086 -11%(651,191) 15 16 Transfers In 1,508,045 38,350 45,850 46,519 1%669 16 17 Other Sources 57,000 - - - 0%- 17 18 Total Other Sources 1,565,045 38,350 45,850 46,519 1%669 18 19 TOTAL REVENUES & OTHER SOURCES 6,308,147 5,247,328 6,169,127 5,518,605 -11%(650,522) 19 20 EXPENDITURES & OTHER USES 20 21 Payroll Salaries 1,151,485 1,161,731 1,165,596 1,202,768 3%37,172 21 22 Payroll Salaries - WA Indirect 325,000 325,000 325,000 325,000 0%- 22 23 Payroll Related & Benefits 565,657 633,278 630,988 625,139 -1%(5,849) 23 24 Supplies 139,482 150,991 155,918 157,219 1%1,301 24 25 Services 1,303,505 1,451,470 1,487,120 1,564,764 5%77,644 25 26 Insurance 24,977 24,822 22,966 23,678 3%712 26 27 Repair & Maintenance 129,639 113,479 112,109 115,747 3%3,638 27 28 Rent & Utilities 289,312 251,860 269,695 269,770 0%75 28 29 Interfund Advance - - - - 0%- 29 30 Debt - - - - 0%- 30 31 Capital Outlay 94,285 190,000 188,700 18,700 -90%(170,000) 31 32 Capital Projects - - - - 0%- 32 33 Total Expenditures 4,023,344 4,302,630 4,358,091 4,302,784 -1%(55,307) 33 34 Transfers Out - Operating 37,633 636,936 378,354 394,319 4%15,966 34 35 Transfers Out - Non Operating 2,654,641 530,000 530,000 2,550,000 381%2,020,000 35 36 Total Other Uses 2,692,274 1,166,936 908,354 2,944,319 224%2,035,966 36 37 TOTAL EXPENDITURES & OTHER USES 6,715,618 5,469,566 5,266,445 7,247,103 38%1,980,659 37 38 EXCESS REVENUES OVER(UNDER) EXPENDITURES (407,471) (222,238) 902,682 (1,728,499) -291%(2,631,181) 38 39 FUND BALANCE, BEGINNING 3,731,332 3,323,861 3,323,861 4,226,543 27%902,682 39 40 FUND BALANCE, ENDING 3,323,861 3,101,622 4,226,543 2,498,044 -41%(1,728,499) 40 41 Restricted/Assigned/Committed Funds 406,464 197,800 254,295 248,025 -2%(6,270) 41 42 UNASSIGNED FUND BALANCE, ENDING 2,917,397 2,903,822 3,972,248 2,250,019 -43%(1,722,229) 42 43 # Days Operating 262 215 308 182 -41%(126) 43 44 Restricted/Assigned/Committed Funds 44 45 C Court Tech - $12.5K 100 10112 00 000 78,079 66,000 92,508 84,633 -9%(7,875) 45 46 C Court Sec - $4K 100 10113 00 000 103,549 89,000 106,247 107,560 1%1,312 46 47 C Court Efficiency 100 10116 00 000 5,148 2,800 5,852 6,144 5%293 47 48 R Reforestation - $170K 100 10110 00 101 190,540 16,000 20,540 20,540 0%- 48 49 R Street Escrow (TB/RA)100 10110 00 102 29,147 24,000 29,147 29,147 0%- 49 50 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 406,464 197,800 254,295 248,025 0%50 vs Page 41 FFUUNNDD OOVVEERRVVIIEEWW GGEENNEERRAALL FFUUNNDD Revenues and Transfers In Total General Fund revenues and transfers in for FY 2012-13 are projected to be $5,518,605  An 11% decrease of $650,522 from the FY 2011-12 estimated revenues and transfers in of $6,169,127 o General Sales Tax decreased $155,000 o Property Tax decreased 78,539 o Contributions decreased $325,000 – Academy indirect payroll costs o Municipal Court fines and forfeitures decreased $80,000 o Misc Income decreased $12,652 – Facility Rental income FY 11/12 FY 12/13 FY 12/13 change change Revenue Type Estimated Proposed % of ttl amount percent General Sales Tax 2,645,000 2,490,000 45% (155,000) -6% Property Tax 1,262,053 1,183,514 21% (78,539) -6% Contributions 325,000 - 0% (325,000) -100% Beverage Tax 32,750 32,750 1% - 0% Franchise Fees 664,925 664,925 12% - 0% Permits and Fees 476,150 476,150 9% - 0% Fines & Forfeitures 640,000 560,000 10% (80,000) -13% Interest 13,470 13,470 0% - 0% Misc Income 63,929 51,277 1% (12,652) -20% Transfer In 45,850 46,519 1% 669 1% TOTAL $6,169,127 $5,518,605 100% -$650,522 -11% FY 12/13 Proposed Revenues General Sales Tax 45% Property Tax 21% Franchise Fees 12% Permits and Fees 9% Fines & Forfeitures 10% Page 42 FFUUNNDD OOVVEERRVVIIEEWW General Sales Tax  Sales tax receipts comprise 45% of FY 2012-13 General Fund revenues.  Sales taxes for the General Fund are budgeted to decrease by $155,000.  On-going sales tax is anticipated to decrease by $5,000 based on current year trend and analysis.  Presumed one-time amounts are projected to decrease by $150,000 (as an effort to be conservative with this type of projection).  Sales taxes are collected on the sale of goods and services within the Town as authorized by the State of Texas.  The maximum sales tax allowed in the State of Texas is 8.25% per dollar on all taxable goods and services. Funds are collected by the Texas Comptroller of Public Accounts and remitted to the Town on a monthly basis.  An amount equal to 1.50% of the taxable sales (75% of local collections) is appropriated to the Town’s General Fund.  The Town also receives an additional .50% sales tax that is recorded in the 4B Economic Development Corporation Fund. Property Tax  Property tax receipts comprise 21% of FY 2012-13 General Fund revenues.  FY 2010-11 was the first year the Town of Westlake imposed an ad valorem property tax.  The total tax rate of $.15684 will remain unchanged for FY 2012-13 Fiscal Year Net Taxable Value General Fund Rate Debt Fund Rate Total Tax Rate 2013 proposed $833,636,407 $0.14197 $0.01487 $0.15684 2012 actual $913,119,313 $0.13835 $0.01849 $0.15684 2011 actual $880,163,946 $0.15620 $0.00390 $0.16010 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 $2.75 $3.00 $3.25 $3.50 $3.75 $4.00 $4.25 $4.50 $4.75 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 estimated FY 12/13 projected $1.49 $1.95 $2.40 $2.60 $2.59 $2.27 $2.55 $3.76 $3.20 $3.13 $0.40 $0.91 $0.40 $0.42 $0.75 $0.21 $0.18 $0.25 $0.30 $0.89 $0.77 $0.79 $0.35 $0.20 M i l l i o n s Base Sales Tax Economic Development Agreement Audit Payment Presumed One-Time Payment 10 Year General Sales Tax Analysis Page 43 FFUUNNDD OOVVEERRVVIIEEWW Contributions  Contributions from Westlake Academy for payment of indirect payroll costs of $325,000 were not budgeted for FY 2012-13. Beverage Tax  The Town collects a 14% gross receipt tax on mixed beverages.  Of this percentage, 10.7% of gross liquor receipts are remitted to the Town, and the remaining 3.3% is retained by the State of Texas.  No increase of alcoholic beverage tax revenue is anticipated. Franchise Taxes  Franchise taxes represent revenues collected from utilities operating within the Town that use the Town rights-of-way to conduct their business.  A flat rate is charged to both telephone operators (adjusted annually) and Tri-County Electric based on the number of access lines and services rendered, respectively.  These fees are anticipated to remain substantially flat for FY 2012-13. Permits and Fees  License and permit revenues include fees charged by the Town for certain types of operator licenses, as well as permits for construction and other items regulated by Town ordinances.  Projected revenues for FY 2012/2013 are $476,150 are based on 10 new home permits  No major permits/fees are anticipated for FY 2012-13. $0 $100 $200 $300 $400 $500 $600 $700 $800 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 estimated FY 12/13 projected $337 $352 $457 $560 $649 $624 $603 $587 $665 $665 Th o u s a n d s 10 Year Franchise Fee Revenue Analysis $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 estimated FY 12/13 projected $0.802 $0.740 $0.748 $0.900 $1.108 $0.861 $1.747 $0.531 $0.476 $0.476 Mi l l i o n s 10 Year Permit and Fee Revenue Analysis Page 44 FFUUNNDD OOVVEERRVVIIEEWW Court Revenue  The revenue generated from the Municipal Court is based on citations and warrants issued.  The Keller Police Department will continue to perform its contractual patrol of Westlake roads in FY 2012-13. Transfers In  Transfers In represents those funds transferred from one fund to another. These transfers may be utilized as a means to fund projects or debt service from multiple sources. Transfers In may also be used to transfer funds collected by one fund and should be properly recorded in a different fund.  Transfer in from the Visitor Association Fund $ 9,019 o Funds represent operating expenditures for Department 22 - Communications & Community Affairs  Transfer in from the Utility fund $37,500 o This is for collection of Fort Worth Impact Fees, which are collected with initial water deposits and tap fees on new water meters. o These funds are collected by the Utility Fund and transferred to the General Fund as a result of an agreement with the City of Fort Worth. o When the transferred total reaches $2,000,000 (remaining balance is $1.4M) these funds will be paid to the City of Fort Worth in compliance with the wholesale water customer agreement. $0 $200 $400 $600 $800 $1,000 $1,200 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 estimated FY 12/13 projected $681 $1,009 $750 $650 $553 $522 $646 $605 $640 $560 Th o u s a n d s 10 Year Municipal Court Revenue Analysis $0 $25 $50 $75 $100 $125 $150 $175 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 estimated FY 12/13 projected $47 $72 $35 $44 $23 $68 $20 $145 $38 $38 Th o u s a n d s Transfer in from Utility Fund for Impact Fees Revenue Page 45 FFUUNNDD OOVVEERRVVIIEEWW Expenditures and Transfers Out  Total General Fund expenditures and transfers out for FY 2012-13 are projected to be $7,247,103 o A 38% increase of $1,980,659 from the FY 2011-12 estimated expenditures and transfers out of $5,266,445. o This amount is composed primarily of a $2M transfer out (inter-fund loan) to the Utility Fund in FY 2012-13 for the construction of a ground storage tank. Funds are to be repaid over the next five (5) years FY 11/12 FY 12/13 % of change change Expense Type Estimated Proposed total amount percent Payroll & Related 2,121,584 2,152,907 30% 31,323 1% Operating Expenses 2,047,807 2,131,177 29% 83,370 4% Capital Outlay/Projects 188,700 18,700 0% (170,000) -90% Transfers Out 908,354 2,944,319 41% 2,036,471 224% TOTAL $ 5,266,445 $ 7,247,103 100% $ 1,980,659 38%  As in recent years, Town staff continues to operate conservatively by controlling costs while maintaining the highest possible levels of service. o These goals are only possible through continued strategic planning and the innovative use of available resources. o Our overall budget philosophy focuses on meeting stated goals and objectives and maintaining a 90 day fund balance. Payroll/Salaries and Related Taxes/Insurance  Comprise 30% of expenditures with a total of $2,152,907  This is a 1% increase of $31,323 from the FY 2011-12 estimated payroll expenditures $2,121,584 o This increase includes a $100,000 market pay increase (inclusive of taxes and insurance) for work force attraction and retention and is the first year of a 2 year program. A portion of this increased expenditure is subsidized by transfers in from the Utility Fund ($10K) and the Visitors Association Fund ($10K). o Another portion of this increase ($18,096) is for the addition of a part time utility billing clerk that will be subsidized 100% by a transfer in from the Utility Fund and offset by a reduction of overtime in the Finance Department o Performance pay budgeted in FY11/12 of approximately $46K was not budgeted in FY 2012-13. o Payroll taxes and insurance will decrease by $18,648 for FY 2012-13 due in large part to a reduction in medical insurance costs.  All payroll and related expenditures for the Town are paid via the General Fund. Portions of these expenditures are subsidized by the Utility Fund and the Visitors Association Fund. o Operating transfers in from the Utility Fund are $273,812 o Operating transfers in from the Visitors Association Fund are $255,225 Operating Expenditures  Comprise 29% of expenditures with a total of $2,131,177  The is an increase of $83,370 from the FY 2011-12 estimated expenditures of $2,047,807 o The biggest portion of this increase ($77,644) is related to service expenditures.  Records Management Laser Fische $27,800  Keller Police Contract $18,474  FM1938 ROW Landscaping $10,000  Training/Seminars/Meetings $12,835 Page 46 FFUUNNDD OOVVEERRVVIIEEWW Capital Outlay  Comprises .3% of expenditures with a total of $18,700  This is a decrease of $170,000 due to the purchase of an Attack Fire Truck for the Fire department in the prior year. Transfers Out  Comprise 41% of expenditures with a total of $2,944,824 and includes these transfers o Increase - Transfer out to Utility Fund $2M – for ground storage tank project o Increase - Transfer out to Debt Service Fund $50,966 o Increase - Transfer out to General Maintenance Fund $20,000 o Decrease – Transfer out to Capital Projects Fund ($35,000) Fund Balance FY 11/12 FY 11/12 Change Change Adopted vs Estimated Adopted Estimated Percent Amount Receipts 5,208,978 6,123,277 18% 914,299 Transfers In 38,350 45,850 20% 7,500 Deductions 4,302,630 4,358,091 1% 55,461 Transfers Out 1,166,936 908,354 -22% (258,583) Net $ (222,238) $ 902,682 -323% $ 718,677 Beginning Fund Balance 3,323,861 3,323,861 0% - Ending Fund Balance 3,101,622 4,226,543 36% 1,124,921 Designated funds 197,800 254,295 29% 56,495 Undesignated Fund Balance $ 2,903,822 $ 3,972,248 37% $ 1,068,426 Operating Days 215 308 43% 93  The audited beginning fund balance as of October 1, 2011 was $3,323,861  FY 2011-12 Adopted Budget o Projected an excess of expenditures and other financing uses over revenues and other financing sources by $(222,238) due primarily to a transfer out to the General Maintenance and Replacement Fund of $530,000. This would have resulted in a budgeted fund balance of $2,903,822.  FY 2011-12 Estimated Budget o Projects an excess of revenues and other financing sources over expenditures and other financing uses by $902,682. o This represents an increase in fund balance of $718,677 from the adopted budget and is due primarily to the following:  General Sales tax increased $582,500 (Primarily due to additional presumed one-time payments, audits and more than anticipated revenues related to our economic development agreement with Deloitte)  Property Tax increased $105,211 (Adopted budget was based on preliminary certified numbers. The values were updated subsequent to approval of the budget)  Beverage Tax Increased $15,000 (Additional beverage taxes due to the opening of Deloitte University) Page 47 FFUUNNDD OOVVEERRVVIIEEWW  Contributions increased $20,900  Franchise fees increased $82,375 (Supplemental payment of $18K received in current year as well as a first time large payment receipt when typically a minimal amount)  Citation revenue increased $104,389  Miscellaneous Income increased $11,229 (Rental income for Redeemer Church increased due to additional space they leased during the current year)  Services expenses increased $35,650  Rent & Utility expenses increased $17,835  Transfers Out decreased $258,583 (Due to additional sales tax receipts being paid from 4B Economic Development Fund; therefore, reducing funds needed from General Fund for debt service) o The ending fund balance as of September 30, 2012 is estimated at $4,226,543 o The undesignated balance of $3,972,248 represents coverage for 308 operating days.  FY 2012-13 Proposed Budget o Projects an excess of expenditures and other financing uses over revenues and other financing sources of $(1,728,499)  due primarily to a transfer out to the Utility Fund of $2M for the ground storage tank project. o Results in a budgeted ending fund balance of $2,498,044 o The unassigned balance of $2,250,019 represents coverage for 182 operating days FY 11/12 FY 12/13 Change Change Estimated vs Proposed Estimated Proposed Percent Amount Receipts 6,123,277 5,472,086 -11% (651,191) Transfers In 45,850 46,519 1% 669 Deductions 4,358,091 4,302,784 -1% (55,307) Transfers Out 908,354 2,944,319 224% 2,035,966 Net 902,682 (1,728,499) 147% 1,330,136 Beginning Fund Balance 3,323,861 4,226,543 27% 902,682 Ending Fund Balance 4,226,543 2,498,044 -41% (1,729,004) Designated funds 254,295 248,025 -2% (6,270) Undesignated Fund Balance $ 3,972,248 $ 2,250,019 -43% $ (1,722,229) Operating Days 308 182 Page 48 This page is intentionally blank Page 49 4B ECONOMIC DEVELOPMENT FUND The 4B Economic Development Fund collects a ½ cent sales tax to be allocated to qualified development projects. The 4B Fund has been committed to the repayment of the debt incurred for the Town’s Civic Campus project. 4B Economic Development Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 General Sales Tax on-going 1,218,487 687,500 950,000 890,000 -6%(60,000) 2 3 General Sales Tax one time - - - - 0%- 3 4 Property Tax - - - - 0%- 4 5 Hotel Tax - - - - 0%- 5 6 Charges for Services - - - - 0%- 6 7 Contributions - - - - 0%- 7 8 Beverage Tax - - - - 0%- 8 9 Franchise Fees - - - - 0%- 9 10 Permits & Fees - - - - 0%- 10 11 Fines & Forfeitures - - - - 0%- 11 12 Investment Earnings 396 500 500 500 0%- 12 13 Misc Income - - - - 0%- 13 14 Total Revenues 1,218,883 688,000 950,500 890,500 -6%(60,000) 14 15 Transfers In - - - - 0%- 15 16 Total Other Sources - - - - 0%- 16 17 TOTAL REVENUES & OTHER SOURCES 1,218,883 688,000 950,500 890,500 -6%(60,000) 17 18 EXPENDITURES & OTHER USES 18 19 Payroll / Salaries - - - - 0%- 19 20 Payroll Related & Benefits - - - - 0%- 20 21 PR Transfer In - - - - 0%- 21 22 PR Transfer Out - - - - 0%- 22 23 Supplies - - - - 0%- 23 24 Services - - - - 0%- 24 25 Insurance - - - - 0%- 25 26 Repair & Maintenance - - - - 0%- 26 27 Rent & Utilities - - - - 0%- 27 28 Interfund Advances - - - - 0%- 28 29 Debt - - - - 0%- 29 30 Capital Outlay - - - - 0%- 30 31 Economic Development Incentives - - - - 0%- 31 32 Capital Projects - - - - 0%- 32 33 Total Expenditures - - - - 0%- 33 34 Transfers Out 1,248,614 717,730 980,230 920,230 -6%(60,000) 34 35 Total Other Uses 1,248,614 717,730 980,230 920,230 -6%(60,000) 35 36 TOTAL EXPENDITURES & OTHER USES 1,248,614 717,730 980,230 920,230 -6%(60,000) 36 37 EXCESS REVENUES OVER(UNDER) EXPENDITURES (29,731) (29,730) (29,730) (29,730) 0%- 37 38 FUND BALANCE, BEGINNING 297,308 267,577 267,577 237,847 -11%(29,730) 38 39 FUND BALANCE, ENDING 267,577 237,847 237,847 208,117 -12%(29,730) 39 40 Restricted/Assigned/Committed Funds 267,577 237,847 237,847 208,117 -12%(29,730) 40 41 ASSIGNED FUND BALANCE, ENDING - - - - 0%- 41 42 42 43 Restricted/Assigned/Committed Funds 43 44 Assigned 267,577 237,847 237,847 208,117 -12%(29,730) 44 45 0%- 45 46 0%- 46 47 0%- 47 48 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 267,577 237,847 237,847 208,117 -12%(29,730) 48 vs Page 51 FFUUNNDD OOVVEERRVVIIEEWW 4B ECONOMIC DEVELOPMENT FUND The 4B Economic Development Fund collects a ½ cent sales tax to be allocated to qualified development projects. The 4B Fund has been committed to the repayment of the debt incurred for the Town’s Civic Campus project. Revenues  FY 12/13 revenues are projected to be $890,500  A 6% decrease of $60,000 from the FY 11/12 estimated budget of $950,500 Expenditures and Other Uses  Transfers out to the Debt Service Fund for FY 12/13 are projected at $920,230  This represents the total of the anticipated revenues as well as an inter-fund repayment from the Utility Fund in the amount of $29,731. Page 52 $119,622 $293,842 $119,688 $533,152 Pymt # Due Date Beginnig Balance GW Farms Waterline Knox Road Connection Knox Road Connection TOTAL Ending Balance 0 Nov-03 533,152$ -$ 87,189$ -$ 87,189$ 445,962$ 1 Aug-05 445,962 7,975 13,777 7,979 29,731 416,232 2 Aug-06 416,232 7,975 13,777 7,979 29,731 386,501 3 Aug-07 386,501 7,975 13,777 7,979 29,731 356,770 4 Aug-08 356,770 7,975 13,777 7,979 29,731 327,039 5 Aug-09 327,039 7,975 13,777 7,979 29,731 297,308 6 Aug-10 297,308 7,975 13,777 7,979 29,731 267,577 7 Aug-11 267,577 7,975 13,777 7,979 29,731 237,846 8 Aug-12 237,846 7,975 13,777 7,979 29,731 208,116 9 Aug-13 208,116 7,975 13,777 7,979 29,731 178,385 10 Aug-14 178,385 7,975 13,777 7,979 29,731 148,654 11 Aug-15 148,654 7,975 13,777 7,979 29,731 118,923 12 Aug-16 118,923 7,975 13,777 7,979 29,731 89,192 13 Aug-17 89,192 7,975 13,777 7,979 29,731 59,461 14 Aug-18 59,461 7,975 13,777 7,979 29,731 29,731 15 Aug-19 29,731 7,975 13,777 7,979 29,731 (0) $ 119,622 $ 293,842 $ 119,688 $ 533,152 4B Economic Development Fund Interfund Repayment Schedule Due from Utility Fund TOTAL Page 53 ECONOMIC DEVELOPMENT FUND The Economic Development Fund was set up to maintain all receipts and disbursement of funds pertaining to agreements between the Town and various corporations for economic development. Economic Development Program Summary Fiscal Year 2012/2013 Adopted Estimated Adopted Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 General Sales Tax 670,632 150,000 205,000 180,000 -12%(25,000) 2 3 Property Tax - - - - 0%- 3 4 Hotel Tax - - - - 0%- 4 5 Charges for Services - - - - 0%- 5 6 Contributions - - - - 0%- 6 7 Beverage Tax - - - - 0%- 7 8 Franchise Fees - - - - 0%- 8 9 Permits & Fees - - - - 0%- 9 10 Fines & Forfeitures - - - - 0%- 10 11 Investment Earnings 153 - - - 0%- 11 12 Misc Income - - - - 0%- 12 13 Total Revenues 670,785 150,000 205,000 180,000 -12%(25,000) 13 14 Transfers In 35,758 35,758 35,758 35,758 0%- 14 15 Total Other Sources 35,758 35,758 35,758 35,758 0%- 15 16 TOTAL REVENUES & OTHER SOURCES 706,543 185,758 240,758 215,758 -10%(25,000) 16 17 EXPENDITURES & OTHER USES 17 18 Payroll / Salaries - - - - 0%- 18 19 Payroll Related & Benefits - - - - 0%- 19 20 PR Transfer In - - - - 0%- 20 21 PR Transfer Out - - - - 0%- 21 22 Supplies - - - - 0%- 22 23 Services - - - - 0%- 23 24 Insurance - - - - 0%- 24 25 Repair & Maintenance - - - - 0%- 25 26 Rent & Utilities - - - - 0%- 26 27 Interfund Advances - - - - 0%- 27 28 Debt - - - - 0%- 28 29 Capital Outlay - - - - 0%- 29 30 Economic Development Incentives 706,391 185,758 240,758 215,758 -10%(25,000) 30 31 Capital Projects - - - - 0%- 31 32 Total Expenditures 706,391 185,758 240,758 215,758 -10%(25,000) 32 33 Transfers Out 153 - - - 0%- 33 34 Total Other Uses 153 - - - 0%- 34 35 TOTAL EXPENDITURES & OTHER USES 706,543 185,758 240,758 215,758 -10%(25,000) 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 0 0 0 0 0%- 36 37 FUND BALANCE, BEGINNING 0 0 0 0 0%- 37 38 FUND BALANCE, ENDING 0 0 0 0 0%- 38 39 Restricted/Assigned/Committed Funds 0 0 0 0 0%- 39 40 UNASSIGNED FUND BALANCE, ENDING 0 0 0 0 0%- 40 41 41 42 Restricted/Assigned/Committed Funds 42 43 0%- 43 44 0%- 44 45 0%- 45 46 0%- 46 47 0%- 47 48 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 0 0 0 0 0%- 48 vs Page 55 FFUUNNDD OOVVEERRVVIIEEWW EECCOONNOOMMIICC DDEEVVEELLOOPPMMEENNTT FFUUNNDD The Economic Development Fund was set up to maintain all receipts and disbursement of funds pertaining to agreements between the Town and various corporations for economic development. There was confusion regarding the additional revenues being recorded in the General Fund and offset by expenditures. These balances offset to zero but skewed the analysis of each. The Town is hoping this fund will bring more transparency to the public regarding these receipts and payments.  Fidelity (Phase I) – A schedule has been set up to repay $35,758 regarding this agreement thru FY 15/16.  Deloitte’s agreement includes a 50% reimbursement of sales tax receipts. Revenues and Transfers In  Total revenues for FY 12/13 are $215,758  $180,000 sales tax from Deloitte  $35,758 transfer in from General Fund for the payment to Fidelity (Phase I) Expenditures  Total expenditures for FY 12/13 are $215,758 Page 56 Pymt FY End Beginning 100.46520.11 100.46522.11 Total Ending #Date Balance Principal Interest Pymt Due Balance 1 Sep-02 536,374$ -$ -$ -$ 536,374$ 2 Sep-03 536,374 21,461 85,814 107,275 429,099 **3 Sep-04 429,099 - - - 429,099 4 Sep-05 429,099 17,477 18,281 35,758 393,341 5 Sep-06 393,341 16,426 19,333 35,758 357,582 6 Sep-07 357,582 15,314 20,444 35,758 321,824 7 Sep-08 321,824 14,138 21,620 35,758 286,066 8 Sep-09 286,066 12,895 22,863 35,758 250,308 9 Sep-10 250,308 11,581 24,178 35,758 214,549 10 Sep-11 214,549 10,190 25,568 35,758 178,791 11 Sep-12 178,791 8,720 27,038 35,758 143,033 12 Sep-13 143,033 7,166 28,593 35,758 107,275 13 Sep-14 107,275 5,522 30,237 35,758 71,516 14 Sep-15 71,516 3,783 31,975 35,758 35,758 15 Sep-16 35,758 1,944 33,814 35,758 0 $ 146,616.20 $ 389,757.40 $ 536,373.60 $ - **FY 02/03 Payment of $107,274.72 included FY 01/02, FY 02/03, and FY 03/04 ($35,758.24 x 3) See Transfers Out in Economic Development Fund ECONOMIC DEVELOPMENT FUND Fidelity (Phase I) TOTAL Tax Reimbursement Schedule Page 57 LONE STAR PUBLIC FACILITIES FUND This fund was set up initially with donations from several involved corporations that were going to benefit from tax-exempt bonds. The Lone Star Public Facilities Corporation was founded in 1996 and was designed “to provide for the acquisition, construction, rehabilitation, repair, equipping, furnishing and placement in service of public facilities in an orderly, planned manner and at the lowest possible borrowing costs.” Lone Star Public Facilities Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 General Sales Tax - - - - 0%- 2 3 Property Tax - - - - 0%- 3 4 Hotel Tax - - - - 0%- 4 5 Charges for Services - - - - 0%- 5 6 Contributions - - - - 0%- 6 7 Beverage Tax - - - - 0%- 7 8 Franchise Fees - - - - 0%- 8 9 Permits & Fees - - - - 0%- 9 10 Fines & Forfeitures - - - - 0%- 10 11 Investment Earnings 36 30 45 45 0%- 11 12 Misc Income - - - - 0%- 12 13 Total Revenues 36 30 45 45 0%- 13 14 Transfers In - - - - 0%- 14 15 Total Other Sources - - - - 0%- 15 16 TOTAL REVENUES & OTHER SOURCES 36 30 45 45 0%- 16 17 EXPENDITURES & OTHER USES 17 18 Payroll / Salaries - - - - 0%- 18 19 Payroll Related & Benefits - - - - 0%- 19 20 PR Transfer In - - - - 0%- 20 21 PR Transfer Out - - - - 0%- 21 22 Supplies - - - - 0%- 22 23 Services - - - - 0%- 23 24 Insurance - - - - 0%- 24 25 Repair & Maintenance - - - - 0%- 25 26 Rent & Utilities - - - - 0%- 26 27 Interfund Advances - - - - 0%- 27 28 Debt - - - - 0%- 28 29 Capital Outlay - - - - 0%- 29 30 Economic Development Incentives - - - - 0%- 30 31 Capital Projects - - - - 0%- 31 32 Total Expenditures - - - - 0%- 32 33 Transfers Out 102 - - - 0%- 33 34 Total Other Uses 102 - - - 0%- 34 35 TOTAL EXPENDITURES & OTHER USES 102 - - - 0%- 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES (66) 30 45 45 0%- 36 37 FUND BALANCE, BEGINNING 13,598 13,531 13,531 13,576 0%45 37 38 FUND BALANCE, ENDING 13,531 13,561 13,576 13,621 0%45 38 39 Restricted/Assigned/Committed Funds 13,531 13,561 13,576 13,621 0%45 39 40 UNASSIGNED FUND BALANCE, ENDING - - - - 0%- 40 41 41 42 Restricted/Assigned/Committed Funds 42 43 A Cash 418 10110 00 000 13,531 13,561 13,576 13,621 0%45 43 44 0%- 44 45 0%- 45 46 0%- 46 47 0%- 47 48 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 13,531 13,561 13,576 13,621 0%45 48 vs Page 59 FFUUNNDD OOVVEERRVVIIEEWW LLOONNEE SSTTAARR PPUUBBLLIICC FFAACCIILLIITTIIEESS FFUUNNDD This fund was set up initially with donations from several involved corporations that were going to benefit from tax-exempt bonds. The Lone Star Public Facilities Corporation was founded in 1996 and was designed “to provide for the acquisition, construction, rehabilitation, repair, equipping, furnishing and placement in service of public facilities in an orderly, planned manner and at the lowest possible borrowing costs.” The ideas was to “acquire, through the issuance of installment sale obligations, office buildings, located within the State of Texas but outside the boundaries of Westlake, whose tenants will be limited to those entities which are qualifying tenants under applicable federal income tax law so the interest payable with respect to the installment sale obligations will be exempt from federal income taxation.” No bonds were ever issued. The fund is earning interest annually. Revenues  Total revenues for FY 12/13 are $45 in interest earnings. Expenditures  There have been no expenditures from this fund since inception Page 60 This page is intentionally blank Page 61 VISITORS ASSOCIATION FUND The Visitors Association Fund was established in late FY 1999/2000 and collects a 7% hotel occupancy tax from the Marriott Solana and any future Westlake hotels. Visitors Association Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 General Sales Tax - - - - 0%- 2 3 Property Tax - - - - 0%- 3 4 Hotel Tax 527,261 535,000 535,000 540,350 1%5,350 4 5 Charges for Services - - - - 0%- 5 6 Contributions - - - - 0%- 6 7 Beverage Tax - - - - 0%- 7 8 Franchise Fees - - - - 0%- 8 9 Permits & Fees - - - - 0%- 9 10 Fines & Forfeitures - - - - 0%- 10 11 Investment Earnings 2,754 2,900 2,900 2,900 0%- 11 12 Misc Income 17,890 19,275 18,650 18,650 0%- 12 13 Total Revenues 547,904 557,175 556,550 561,900 1%5,350 13 14 Transfers In - - - - 0%- 14 15 Total Other Sources - - - - 0%- 15 16 TOTAL REVENUES & OTHER SOURCES 547,904 557,175 556,550 561,900 1%5,350 16 17 EXPENDITURES & OTHER USES 17 18 Payroll / Salaries - - - - 0%- 18 19 Payroll Related & Benefits - - - - 0%- 19 20 PR Transfer In - - - - 0%- 20 21 PR Transfer Out 152,079 - 255,339 255,225 0%(114) 21 22 Supplies - 850 450 450 0%- 22 23 Services 170,978 186,075 188,300 213,075 13%24,775 23 24 Insurance - - - - 0%- 24 25 Repair & Maintenance - - - - 0%- 25 26 Rent & Utilities 33,310 34,177 35,677 35,677 0%- 26 27 Interfund Advances - - - - 0%- 27 28 Debt - - - - 0%- 28 29 Capital Outlay - - - - 0%- 29 30 Economic Development Incentives - - - - 0%- 30 31 Capital Projects - - - - 0%- 31 32 Total Expenditures 356,368 221,102 479,766 504,427 5%24,661 32 33 Transfers Out 181,197 445,434 190,746 192,711 1%1,965 33 34 Total Other Uses 181,197 445,434 190,746 192,711 1%1,965 34 35 TOTAL EXPENDITURES & OTHER USES 537,564 666,536 670,512 697,138 4%26,626 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 10,340 (109,361) (113,962) (135,238) 19%(21,276) 36 37 FUND BALANCE, BEGINNING 1,100,941 1,111,281 1,111,281 997,319 -10%(113,962) 37 38 FUND BALANCE, ENDING 1,111,281 1,001,920 997,319 862,081 -14%(135,238) 38 39 Restricted/Assigned/Committed Funds 180,935 182,416 182,396 183,692 1%1,296 39 40 UNASSIGNED FUND BALANCE, ENDING 930,346 819,504 814,922 678,389 -17%(136,534) 40 41 # Days Operating 632 449 444 355 -20%(88) 41 42 Restricted/Assigned/Committed Funds 42 43 Debt Service 180,935 182,416 182,396 183,692 1%1,296 43 44 0%- 44 45 0%- 45 46 0%- 46 47 0%- 47 48 TOTAL RESTRICTED/ASSIGNED/COMMITED FUNDS 180,935 182,416 363,351 183,692 -49%(179,659) 48 vs Page 63 FFUUNNDD OOVVEERRVVIIEEWW VVIISSIITTOORRSS AASSSSOOCCIIAATTIIOONN FFUUNNDD The Visitors Association Fund was established in late FY 1999/2000 and collects a 7% hotel occupancy tax from the Marriott Solana and any future Westlake hotels. FY 2004/2005 saw the launch of a new program in partnership with the Marriott to operate a shuttle service which delivers and returns Marriott visitors to DFW Airport. Hotel Occupancy Taxes are allocated to this fund and obtained through the assessment of a 7% hotel occupancy tax. Authority granted by the State of Texas allows cities to levy a tax not to exceed 7% of the rental rate for a hotel/motel room. Funds generated by the occupancy tax may be used in a manner that directly enhances and promotes tourism and the convention and hotel industry. Revenues  Total revenues for FY 12/13 are $561,900  This is a 1% increase of $5,350 compared to the FY 11/12 estimated revenues. Expenditures and Transfers Out  Total expenditures for FY 12/13 are $697,138  This represents a 4% increase of $26,626 from the FY 11/12 estimated expenditures.  A large portion of this increase ($14,000) is for an electronic records storage and management system (laserfische) intended to reduce the record storage footprint/space, improve records retrieval and management for all departments. This system is HIPPA and DOD certified and has been approved by the Texas State Library and Archives which establishes the record retention requirements. We currently use the Laserfiche software for the Town Council and Board of Trustees minutes.  Advertising costs increased $5,918 to place additional ads for better exposure and awareness in the Westlake community.  Transfers Out increased $1,965 of which $1,296 is for transfers out to the Debt Service fund for the 2008 bond payment on the Arts and Sciences center construction. Fund Balance  Fund balance is expected to decrease by $135,238 Page 64 Visitors Association Fund Activity Budget Percent Municipal Administration 1 Support Services - Administrative 9,871 1.39% 2 Support Services - Facilities Maintenance 100 0.01% 3 Support Services - Human Resources 5,963 0.84% 4 Contract Management 77,917 10.98% 5 Affiliate Board Liaison & Support 100 0.01% $ 93,951 13.24% Citizen Communication & Engagement 1 Communication 117,450 16.55% 2 Neighborhood Gatherings & Outreach 80 0.01% 3 Community Activities 9,475 1.34% 4 Direction Finders and Other Surveys 6,170 0.87% $ 133,175 18.77% Accounting Services - Municipal 1 Accounts Payable 2,288 0.32% 2 Accounts Receivable 2,288 0.32% 3 Payroll 2,288 0.32% 4 Financial Reporting 9,038 1.27% 5 Cash & Investment Management 2,288 0.32% 6 Budget Program 450,224 63.45% $ 468,412 66.02% Municipal Governance 1 Policy Development, Council Meetings & Workshops - 0.00% $ - 0.00% Academic Governance 1 Policy Development, Council Meetings & Workshops - 0.00% $ - 0.00% Comprehensive Planning & Economic Development 1 Development Recruiting & Assistance - 0.00% 2 Development Oversight & Regulation - 0.00% $ - 0.00% Municipal Administration 1 Contract Management 14,000 1.97% 2 Agenda Preparation & Calendar Maintenance - 0.00% 3 Strategic Plan Development & Implementation - 0.00% 4 Professional Development - 0.00% 5 Direction of Leadership Team - 0.00% $ 14,000 1.97% Academic Administration 1 Departmental Coordination & Employee Management - 0.00% 2 Agenda Preparation & Calendar Maintenance - 0.00% 3 Strategic Plan Development & Implementation - 0.00% 4 Organizational Development - 0.00% 5 Parent & Student Communication - 0.00% 6 Affiliate Board Liaison & Support - 0.00% $ - 0.00% 709,538$ 100.00% PROGRAM BUDGET Ginger Awtry 817.490.5719 Program Department Director Department Phone Page 65 DEBT SERVICE FUND The Debt Service Fund was created to clearly illustrate the Town’s debt service picture. The Town’s obligations are consolidated into one fund with payments being transferred from 4B Economic Development Fund, Property Tax Reduction Fund (in prior years), General Fund (in subsequent years) and the Visitors Association Fund. Future CO’s and General Obligation debt issuances would also be paid from this fund. Debt Service Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 General Sales Tax - - - - 0%- 2 3 Property Tax 30,558 154,608 172,098 123,969 -28%(48,129) 3 4 Hotel Tax - - - - 0%- 4 5 Charges for Services - - - - 0%- 5 6 Contributions - - - - 0%- 6 7 Beverage Tax - - - - 0%- 7 8 Franchise Fees - - - - 0%- 8 9 Permits & Fees - - - - 0%- 9 10 Fines & Forfeitures - - - - 0%- 10 11 Investment Earnings 28 - - - 0%- 11 12 Misc Income - 100 - - 0%- 12 13 Total Revenues 30,586 154,708 172,098 123,969 -28%(48,129) 13 14 Transfers In 1,505,539 1,501,324 1,470,222 1,462,483 -1%(7,739) 14 15 Total Other Sources 1,505,539 1,501,324 1,470,222 1,462,483 -1%(7,739) 15 16 TOTAL REVENUES & OTHER SOURCES 1,536,125 1,656,032 1,642,320 1,586,452 -3%(55,868) 16 17 EXPENDITURES & OTHER USES 17 18 Payroll / Salaries - - - - 0%- 18 19 Payroll Related & Benefits - - - - 0%- 19 20 Payroll Tranfser In - - - - 0%- 20 21 Payroll Tranfser Out - - - - 0%- 21 22 Supplies - - - - 0%- 22 23 Services 1,130 2,925 1,130 2,925 159%1,795 23 24 Insurance - - - - 0%- 24 25 Repair & Maintenance - - - - 0%- 25 26 Rent & Utilities - - - - 0%- 26 27 Interfund Advances - - - - 0%- 27 28 Debt 1,527,490 1,653,107 1,618,898 1,613,323 0%(5,575) 28 29 Capital Outlay - - - - 0%- 29 30 Economic Development Incentives - - - - 0%- 30 31 Capital Projects - - - - 0%- 31 32 Total Expenditures 1,528,620 1,656,032 1,620,028 1,616,248 0%(3,780) 32 33 Transfers Out - - - - 0%- 33 34 Total Other Uses - - - - 0%- 34 35 TOTAL EXPENDITURES & OTHER USES 1,528,620 1,656,032 1,620,028 1,616,248 0%(3,780) 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 7,504 - 22,292 (29,796) -234%(52,088) 36 37 FUND BALANCE, BEGINNING 0 7,504 7,504 29,796 297%22,292 37 38 FUND BALANCE, ENDING 7,504 7,504 29,796 (0) -100%(29,796) 38 39 Restricted/Assigned/Committed Funds 7,504 7,504 29,796 (0)0%(29,796) 39 40 UNASSIGNED FUND BALANCE, ENDING 0 0 0 0 0%- 40 41 41 42 Restricted/Assigned/Committed Funds 42 43 - - - - 0%- 43 44 - - - - 0%- 44 45 - - - - 0%- 45 46 - - - - 0%- 46 47 - - - - 0%- 47 48 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS - - - - 0%- 48 vs Page 67 FUND OVERVIEW DEBT SERVICE FUND The Debt Service Fund was created to clearly illustrate the Town’s debt service picture. The Town’s obligations are consolidated into one fund with payments being transferred from 4B Economic Development Fund, Property Tax Reduction Fund (in prior years), General Fund (in subsequent years) and the Visitors Association Fund. Future CO’s and General Obligation debt issuances would also be paid from this fund. The Debt Service Fund is used for the payment of general long-term debt principal, interest and related costs of Town issued debt. The Town of Westlake implemented an ad valorem property tax for the first time during FY 2010-11. There is no direct limit on debt for the Town. The Constitution of the State of Texas provides that the ad valorem tax levied by the Issuer for general purposes and for the purpose of paying debt service requirements of the Issuer’s general obligation debt shall not exceed $1.50 for each $100 of assessed valuation of taxable property. Shown below is the Town’s debt position as of the beginning of FY 2012-13 for outstanding General Obligation Bonds and Certificates of Obligation; Principal $ 21,057,000 Interest 11,137,538 Total $ 32,194,538 Debt service payments are made for the following: Issues made for the construction of the Westlake Academy facilities: $12,400,000 Series 2002 Certificates of Obligation $ 6,410,000 Series 2003 Certificates of Obligation $ 7,465,000 Series 2007 General Obligation Refunding Bonds (partial refund of $12.4 CO issue) $ 2,500,000 Series 2008 General Obligation Bonds $ 7,375,000 Series 2011 General Obligation Refunding Bonds (partial refund of $12.4 CO and $6.4M issue) Additional issue for various street projects: $ 2,095,000 Series 2011 Certificates of Obligation If adopted - payments will also be made on (a) Series 2012 Certificates of Obligation in the amount of $8.5M for the construction of additional facilities at the Westlake Academy campus; (2) Series 2013 General Obligation Refunding amount of $4.6 of Series 2003 and 2008. If refunded, the Town will see approximately $650K savings. These estimated payments are detailed in the following schedules. Revenues and Transfers In • Current debt service on the Westlake Civic Campus is paid by o Transfers in from Visitors Association Fund o Transfers in from 4B Economic Development Fund o Transfers in from General Fund • Debt service on various street projects is paid by o Ad Valorem Property Taxes Page 68 FUND OVERVIEW Expenditures • FY12/13 expenditures are $1,616,753 • This is a $3,275 decrease compared to FY11/12 estimated expenditures of $1,620,027. This is in conjunction with the 2011 issue of $7,375,000 that was for the partial refunding of the $12.4 CO 2002 issue as well as the proposed 2012 CO issuance and 2013 General Obligation refunding issuance. $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $1.10 $1.20 $1.30 $1.40 $1.50 $1.60 $1.70 2 , 0 1 3 2 , 0 1 4 2 , 0 1 5 2 , 0 1 6 2 , 0 1 7 2 , 0 1 8 2 , 0 1 9 2 , 0 2 0 2 , 0 2 1 2 , 0 2 2 2 , 0 2 3 2 , 0 2 4 2 , 0 2 5 2 , 0 2 6 2 , 0 2 7 2 , 0 2 8 2 , 0 2 9 2 , 0 3 0 2 , 0 3 1 2 , 0 3 2 $0 . 6 5 5 $1 . 0 6 3 $1 . 0 9 2 $1 . 1 1 0 $1 . 1 1 5 $1 . 1 5 4 $1 . 1 8 8 $1 . 2 2 2 $1 . 2 5 6 $1 . 2 9 6 $1 . 3 3 6 $1 . 3 8 1 $1 . 4 1 6 $1 . 4 6 7 $1 . 5 2 3 $1 . 5 7 9 $1 . 6 4 1 $1 . 6 9 8 $1 . 7 6 5 $1 . 6 7 0 $0 . 9 5 8 $0 . 9 3 0 $0 . 8 9 3 $0 . 8 7 7 $0 . 8 7 6 $0 . 8 3 5 $0 . 8 0 2 $0 . 7 6 8 $0 . 7 3 1 $0 . 6 9 3 $0 . 6 5 3 $0 . 6 0 9 $0 . 5 7 1 $0 . 5 1 9 $0 . 4 6 5 $0 . 4 0 7 Mi l l i o n s Annual Debt Requirements Interest Principal Page 69 This page is intentionally blank Page 70 Debt Service FundLong-Term Debt Summary Pymt Fiscal 300.48840.00.13 300.48850.00.13 300.48840.00.12 300.48850.00.12 300.48840.00.11 300.48850.00.11 300.48840.00.10 300.48850.00.10 No.Year Principal Interest Principal Interest Principal Interest Principal Interest 1 2013 125,000 62,717 187,717 - 175,474 175,474 90,000 63,765 153,765 100,000 225,200 325,200 2 2014 305,000 86,770 391,770 200,000 242,848 442,848 93,000 60,791 153,791 100,000 223,200 323,200 3 2015 320,000 85,360 405,360 200,000 238,848 438,848 97,000 57,704 154,704 440,000 217,800 657,800 4 2016 295,000 83,601 378,601 205,000 234,798 439,798 100,000 54,503 154,503 100,000 212,400 312,400 5 2017 130,000 82,090 212,090 210,000 230,648 440,648 75,000 79,475 154,475 275,000 207,275 482,275 6 2018 120,000 80,878 200,878 215,000 226,398 441,398 79,000 75,625 154,625 700,000 192,650 892,650 7 2019 130,000 79,340 209,340 220,000 222,048 442,048 83,000 71,575 154,575 715,000 171,425 886,425 8 2020 135,000 77,383 212,383 225,000 217,035 442,035 87,000 67,325 154,325 730,000 149,750 879,750 9 2021 135,000 75,088 210,088 230,000 211,060 441,060 91,000 62,875 153,875 750,000 127,550 877,550 10 2022 140,000 72,473 212,473 235,000 204,666 439,666 96,000 58,200 154,200 770,000 104,750 874,750 11 2023 140,000 69,603 209,603 245,000 198,066 443,066 101,000 53,275 154,275 790,000 81,350 871,350 12 2024 140,000 66,593 206,593 250,000 190,948 440,948 106,000 48,100 154,100 820,000 55,150 875,150 13 2025 145,000 63,385 208,385 255,000 183,373 438,373 111,000 42,675 153,675 260,000 36,250 296,250 14 2026 155,000 59,896 214,896 265,000 175,573 440,573 117,000 36,975 153,975 260,000 27,150 287,150 15 2027 150,000 56,275 206,275 275,000 167,473 442,473 123,000 30,975 153,975 275,000 17,100 292,100 16 2028 150,000 52,600 202,600 280,000 159,148 439,148 129,000 24,675 153,675 290,000 5,800 295,800 17 2029 455,000 44,810 499,810 290,000 150,598 440,598 136,000 18,050 154,050 - - - 18 2030 465,000 32,734 497,734 300,000 141,748 441,748 143,000 11,075 154,075 - - - 19 2031 480,000 20,093 500,093 310,000 132,598 442,598 150,000 3,750 153,750 - - - 20 2032 495,000 6,806 501,806 320,000 123,148 443,148 - - - - - - 21 2033 - - - 325,000 113,473 438,473 - - - - - - 22 2034 - - - 335,000 103,573 438,573 - - - - - - 23 2035 - - - 345,000 93,373 438,373 - - - - - - 24 2036 - - - 360,000 82,618 442,618 - - - - - - 25 2037 - - - 370,000 71,303 441,303 - - - - - - 26 2038 - - - 380,000 59,678 439,678 - - - - - - 27 2039 - - - 395,000 47,369 442,369 - - - - - - 28 2040 - - - 405,000 34,369 439,369 - - - - - - 29 2041 - - - 420,000 20,963 440,963 - - - - - - 30 2042 - - - 435,000 7,069 442,069 - - - - - - $4,610,000 $1,258,492 $5,868,492 $8,500,000 $4,460,273 $12,960,273 $2,007,000 $921,388 $2,928,388 $7,375,000 $2,054,800 $9,429,800 *partial refunding of 2003/2008 Certificates of Obligation SERIES 2012 CO (If Adopted) Certificates of Obligation SERIES 2011 GO-Refunding *partial refunding of 2002/2003 SERIES 2013 GO-Refunding (If Adopted)SERIES 2011 CO TOTAL TOTAL TOTAL TOTAL TOTAL funded by 4B Fund/General Fund funded by DS 300 Property Taxfunded by 4B Fund/General Fund funded by 4B Fund/General Fund n adopted - Anticipated - November, 201 December 29, 2011 Original Issue:$4,610,000 $2,095,000$8,500,000 $7,375,000 Use:Partial refunding of 2003 & 2008 Various street projectsConstruction at WA Partial refunding of 2002 & 2003 Issue Date:If adopted - Anticipated -January, 2013 March 29, 2011 Page 71 300.48840.00.08 300.48850.00.08 300.48840.00.07 300.48850.00.07 300.48840.00.03 300.48850.00.03 300.48840.00.02 300.48850.00.02 Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Total Debt - 41,846 41,846 25,000 295,545 320,545 - 51,851 51,851 315,000 41,925 356,925 655,000 958,323 1,613,323 - - - 35,000 294,608 329,608 - - - 330,000 21,450 351,450 1,063,000 929,666 1,992,666 - - - 35,000 293,295 328,295 - - - - - - 1,092,000 893,006 1,985,006 - - - 410,000 291,983 701,983 - - - - - - 1,110,000 877,284 1,987,284 - - - 425,000 276,608 701,608 - - - - - - 1,115,000 876,095 1,991,095 - - - 40,000 259,608 299,608 - - - - - - 1,154,000 835,158 1,989,158 - - - 40,000 258,008 298,008 - - - - - - 1,188,000 802,395 1,990,395 - - - 45,000 256,408 301,408 - - - - - - 1,222,000 767,900 1,989,900 - - - 50,000 254,608 304,608 - - - - - - 1,256,000 731,180 1,987,180 - - - 55,000 252,608 307,608 - - - - - - 1,296,000 692,696 1,988,696 - - - 60,000 250,408 310,408 - - - - - - 1,336,000 652,701 1,988,701 - - - 65,000 248,008 313,008 - - - - - - 1,381,000 608,798 1,989,798 - - - 645,000 245,408 890,408 - - - - - - 1,416,000 571,090 1,987,090 - - - 670,000 219,608 889,608 - - - - - - 1,467,000 519,201 1,986,201 - - - 700,000 192,808 892,808 - - - - - - 1,523,000 464,630 1,987,630 - - - 730,000 164,808 894,808 - - - - - - 1,579,000 407,030 1,986,030 - - - 760,000 134,695 894,695 - - - - - - 1,641,000 348,153 1,989,153 - - - 790,000 103,345 893,345 - - - - - - 1,698,000 288,901 1,986,901 - - - 825,000 70,560 895,560 - - - - - - 1,765,000 227,000 1,992,000 - - - 855,000 35,910 890,910 - - - - - - 1,670,000 165,864 1,835,864 - - - - - - - - - - - - 325,000 113,473 438,473 - - - - - - - - - - - - 335,000 103,573 438,573 - - - - - - - - - - - - 345,000 93,373 438,373 - - - - - - - - - - - - 360,000 82,618 442,618 - - - - - - - - - - - - 370,000 71,303 441,303 - - - - - - - - - - - - 380,000 59,678 439,678 - - - - - - - - - - - - 395,000 47,369 442,369 - - - - - - - - - - - - 405,000 34,369 439,369 - - - - - - - - - - - - 420,000 20,963 440,963 - - - - - - - - - - - - 435,000 7,069 442,069 $0 $41,846 $41,846 $7,260,000 $4,398,830 $11,658,830 $0 $51,851 $51,851 $645,000 $63,375 $708,375 $30,397,000 $13,250,854 $43,647,854 $0 $0 $0 SERIES 2002* COSERIES 2008 GO SERIES 2007 GO-Refunding SERIES 2003* CO General Obligation Bonds *partial refunding of 2002 Certificates of Obligation GRAND TOTAL funded by 4B Fund 200 funded by 4B Fund 200funded by 4B Fund/General Fund TOTAL TOTAL TOTAL Certificates of Obligation funded by Visitor Fund 220 TOTAL June 18, 2008 March 15, 2007 $2,500,000 $7,465,000 Second phase construction of WA First phase construction of WA June 23, 2003 Construction of A&S Center Partial refunding of Series 2002 $6,410,000 $12,400,000 January 15, 2002 Page 72 This page is intentionally blank Page 73 CEMETERY FUND The Cemetery program includes all operations associated with the 5.5 acre cemetery located on J.T. Ottinger Road. This includes interment, lot sales, record keeping, and all maintenance associated with the grounds, fences, trees and flower beds. The cemetery was donated and conveyed by deed to the Town during FY2008-09. Cemetery Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 General Sales Tax - - - - 0%- 2 3 Property Tax - - - - 0%- 3 4 Hotel Tax - - - - 0%- 4 5 Charges for Services 13,300 3,400 5,400 5,400 0%- 5 6 Contributions - - - - 0%- 6 7 Beverage Tax - - - - 0%- 7 8 Franchise Fees - - - - 0%- 8 9 Permits & Fees - - - - 0%- 9 10 Fines & Forfeitures - - - - 0%- 10 11 Investment Earnings 117 75 175 175 0%- 11 12 Misc Income - - - - 0%- 12 13 Total Revenues 13,417 3,475 5,575 5,575 0%- 13 14 Transfers In - - - - 0%- 14 15 Total Other Sources - - - - 0%- 15 16 TOTAL REVENUES & OTHER SOURCES 13,417 3,475 5,575 5,575 0%- 16 17 EXPENDITURES & OTHER USES 17 18 Payroll / Salaries - - - - 0%- 18 19 Payroll Related & Benefits - - - - 0%- 19 20 Payroll Transfer In - - - - 0%- 20 21 Payroll Transfer Out - - - - 0%- 21 22 Supplies 450 - 500 - -100%(500) 22 23 Services 4,154 3,100 3,600 3,600 0%- 23 24 Insurance - - - - 0%- 24 25 Repair & Maintenance 1,000 2,000 1,800 1,800 0%- 25 26 Rent & Utilities - - - - 0%- 26 27 Interfund Advances - - - - 0%- 27 28 Debt - - - - 0%- 28 29 Capital Outlay - - - - 0%- 29 30 Economic Development Incentives - - - - 0%- 30 31 Capital Projects - - - - 0%- 31 32 Total Expenditures 5,604 5,100 5,900 5,400 -8%(500) 32 33 Transfers Out - - - - 0%- 33 34 Total Other Uses - - - - 0%- 34 35 TOTAL EXPENDITURES & OTHER USES 5,604 5,100 5,900 5,400 -8%(500) 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 7,813 (1,625) (325) 175 -154%500 36 37 FUND BALANCE, BEGINNING 141,149 148,963 148,963 148,638 0%(325) 37 38 FUND BALANCE, ENDING 148,963 147,338 148,638 148,813 0%175 38 39 Restricted/Assigned/Committed Funds 148,963 147,338 148,638 148,813 0%175 39 40 UNASSIGNED FUND BALANCE, ENDING - - - - 0%- 40 41 41 42 Restricted/Assigned/Committed Funds 42 43 A Cash 255 10110 00 000 50,784 49,159 50,459 50,634 0%175 43 44 A Cemetery Lots 255 15100 00 000 98,179 98,179 98,179 98,179 0%- 44 45 0%- 45 46 0%- 46 47 0%- 47 48 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 148,963 147,338 148,638 148,813 0%175 48 vs Page 75 FFUUNNDD OOVVEERRVVIIEEWW CEMETERY FUND The Cemetery program includes all operations associated with the 5.5 acre cemetery located on J.T. Ottinger Road. This includes interment, lot sales, record keeping, and all maintenance associated with the grounds, fences, trees and flower beds. The cemetery was donated and conveyed by deed to the Town during FY2008-09. Revenues  Total revenues for FY 2012-13 are $5,575  Revenue will remain flat when compared to FY 11/12 estimated revenues. Expenditures  Total expenditures for FY 2012-13 are $5400  This is an 8% decrease of $500 compared to FY 2011-12 estimated expenditures. Fund Balance  The projected ending fund balance for FY 2012-13 is $148,813. Page 76 This page is intentionally blank Page 77 UTILITY FUND The Utility Fund is utilized for: the operation, maintenance, repair, and installation of 130,000 LF of water lines, 94,000 LF of waste water lines, and 57,000 LF of duct bank lines; maintaining public records and regulatory requirements Utility Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 Charges for Services Water 2,386,093 2,059,000 2,059,000 2,059,000 0%- 2 3 Charges for Services Sewer 547,871 529,800 529,800 529,800 0%- 3 4 Charges for Services Trash 100%5,216 6,966 6,966 58,050 733%51,084 4 5 Charges for Services Other 187,645 44,000 60,835 60,835 0%- 5 6 Contributions - - - - 0%- 6 7 Franchise Fees - - - - 0%- 7 8 Permits & Fees - - - - 0%- 8 9 Fines & Forfeitures - - - - 0%- 9 10 Investment Earnings 9,699 10,000 10,000 10,000 0%- 10 11 Misc Income 146,716 71,500 89,434 89,434 0%- 11 12 Total Revenues 3,283,239 2,721,266 2,756,035 2,807,119 2%51,084 12 13 Transfers In - - - 2,000,000 100%2,000,000 13 14 Total Other Sources - - - 2,000,000 100%2,000,000 14 15 TOTAL REVENUES & OTHER SOURCES 3,283,239 2,721,266 2,756,035 4,807,119 74%2,051,084 15 16 EXPENDITURES & OTHER USES 16 17 Payroll / Salaries - - - - 0%- 17 18 Payroll Related & Benefits - - - - 0%- 18 19 PR Transfer In - - - - 0%- 19 20 PR Transfer Out 203,592 - 251,694 273,812 9%22,118 20 21 Supplies 2,878 7,000 7,380 7,000 -5%(380) 21 22 Services 345,526 453,744 454,299 521,828 15%67,529 22 23 Insurance 4,748 5,827 4,834 6,098 26%1,264 23 24 Repair & Maintenance 103,449 141,500 156,050 141,500 -9%(14,550) 24 25 Rent & Utilities 97,638 111,292 93,777 111,292 19%17,515 25 26 Capital Outlay 15,007 20,000 22,000 20,000 -9%(2,000) 26 27 Debt 603,858 219,399 207,668 220,943 6%13,275 27 28 Water Purchases 1,015,869 1,110,600 1,110,600 1,110,600 0%- 28 29 Total Expenses 2,392,565 2,069,362 2,308,302 2,413,073 5%104,771 29 30 Capital Projects 213,364 603,603 493,375 2,161,871 338%1,668,496 30 31 Transfers Out 145,216 331,694 87,500 87,500 0%- 31 32 Total Other Uses 358,580 935,297 580,875 2,249,371 287%1,668,496 32 33 TOTAL EXPENSES & OTHER USES 2,751,145 3,004,659 2,889,177 4,662,444 61%1,773,267 33 34 EXCESS REVENUES OVER(UNDER) EXPENSES 532,094 (283,393) (133,142) 144,675 -209%277,817 34 35 FUND BALANCE, BEGINNING 2,571,347 3,103,441 3,103,441 2,970,299 -4%(133,142) 35 36 FUND BALANCE, ENDING 3,103,441 2,820,048 2,970,299 3,114,974 5%144,675 36 37 Restricted/Assigned/Committed Funds 143,780 149,050 149,050 153,522 3%4,472 37 38 UNASSIGNED FUND BALANCE, ENDING 2,959,661 2,670,998 2,821,249 2,961,453 5%140,204 38 39 Operating Expenditures 2,392,565 2,069,362 2,308,302 2,413,073 5%104,771 39 40 # Days Operating 452 471 446 448 109%488 40 41 Restricted/Assigned/Committed Funds 41 42 R Water/Sewer Deposits Cash 10112 143,780 149,050 149,050 153,522 3%4,472 42 43 - - - - 0%- 43 44 - - - - 0%- 44 45 - - - - 0%- 45 46 - - - - 0%- 46 47 - - - - 0%- 47 48 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 143,780 149,050 149,050 153,522 3%4,472 48 vs Page 79 FFUUNNDD OOVVEERRVVIIEEWW UUTTIILLIITTYY FFUUNNDD REVENUES AND OTHER RESOURCES  Total revenues for FY 2012-13 are $4,807,119  A 74% increase of $2,051,084 from the FY 11/12 estimated revenues of $2,756,035.  This amount is composed primarily of a $2M transfer in (inter-fund loan) from the General Fund in FY 2012-13 for the construction of a ground storage tank. Funds are to be repaid over the next five (5) years. FY 11/12 FY 12/13 % of change change REVENUES Estimated Proposed total amount percent Water Revenue 2,059,000 2,059,000 43% - 0% Sewer/Trash/Other 536,766 587,850 12% 51,084 10% Contributions - - 0% - 0% Tap/Impact Fees 60,835 60,835 1% - 0% Interest/Misc Income 99,434 99,434 2% - 0% Transfers In - 2,000,000 42% 2,000,000 100 TOTAL $2,756,035 $4,807,119 100% $2,051,084 74%  Utility Fund revenue is primarily comprised of fees for water and wastewater service.  The fund also receives a small portion of its revenue through tap fees and interest income, and currently serves as a mechanism for collecting and distributing debt service and impact fees. Water Revenue The Utility Fund is the recipient of all revenue generated from water sales in the Town. With the construction of Westlake’s master-planned residential developments, the Town placed new water infrastructure into service in 2000. As Westlake’s customer base continues to expand, additional demands will be placed on the utility system, requiring incremental expansion and maintenance of infrastructure. Effective October 1, 2012, Fort Worth rates increased by 2.9% ($1.7376/1000 gal to $1.6848/1000 gal). FY12/13 Proposed Revenues Water Revenue 43% Sewer/Trash/ Other 12% Transfers In 42% Page 80 FFUUNNDD OOVVEERRVVIIEEWW Wastewater Revenues Wastewater revenue is another major component of the Utility Fund. Wastewater revenue is expected to grow proportionate to future non-irrigation water demands. These future increases can be attributed to both residential and commercial growth. Effective December 1, 2012, TRA rates will increase by 22.7% ($3.902/1000 gal to $4.788/1000 gal) due to higher treated sewage volumes, capital project funding needs and associated operating costs. Waste Management During FY 2008-09, the Town took over the billing and collection of residential solid waste user fees for its franchised hauler. The Town changed from twice a week pick up schedule to once a week pick up schedule in lieu of a rate increase. The current rate for solid waste and recycling service remains unchanged since 2008. The Town receives a 12% fee from its franchisee for providing this service. Ductbank The ductbank is a series of Town owned conduit that houses underground telecommunication infrastructure in portions of Westlake. Revenues from the ductbank are contingent upon utility companies leasing out portions of the conduit. The Town continues to execute new leases with telecommunications companies. EXPENSES AND OTHER USES  Total expenditures for FY 2012-13 are $4,662,444  A 61% increase of $1,773,267 from the FY 2011-12 estimated expenses.  Capital projects funded by the Utility Fund are described in the capital improvements portion of this overview. FY 11/12 FY 12/13 % of change change EXPENSES Estimated Proposed total amount percent Operating Expenses 2,286,302 2,393,073 51% 106,771 5% Capital Outlay/Projects 515,375 2,181,871 47% 1,666,496 323% Transfers Out 87,500 87,500 2% - 0% TOTAL $ 2,889,177 $ 4,662,444 100% $ 1,773,267 61% $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 $2.75 $3.00 $3.25 $3.50 $3.75 FY 03/04 actual FY 04/05 actual FY 05/06 actual FY 06/07 actual FY 07/08 actual FY 08/09 actual FY 09/10 actual FY 10/11 actual FY 11/12 estimated FY 12/13 projected $1.204 $2.096 $1.944 $1.740 $2.113 $2.428 $2.217 $3.283 $2.756 $2.807 Mi l l i o n s 10 Year Analysis - Revenue Trend Page 81 FFUUNNDD OOVVEERRVVIIEEWW Services Provided The Utility Fund accounts for water and wastewater services for the residents of the Town. All activities necessary to provide such services are accounted for in the fund, including administration, operations, maintenance, financing and related debt service, and billing and collection. This fund also contains the planning and implementation of the ductbank. This is a series of underground conduit designed to house telecommunications services in Westlake. The ductbank is a public/private partnership that utilizes public and private sector capital, town planning and engineering and town operation. Phase I was completed in FY 2000-01 and became ready for occupancy in FY 2001-02 with leases following completion of construction. FY 2004-05 saw the completion of the ductbank extension from Vaquero to Pearson Road with a lease following the construction. The development of the Terra Bella subdivision extended the ductbank from Sam School Road through the subdivision to Dove Road. In 2010, Deloitte University constructed new ductbank through their development that connected the section at Dove/Pearson Lane to Ottinger Road at the Deloitte service entrance with leases following completion of construction. The Utility Fund is responsible for all water, sewer, and telecommunications ductbank service in the Town. The Town continues to use new automated technologies to control inflows into our storage facilities and minimize the annual peak payment charges from the City of Fort Worth. The fund is also burdened with three outstanding long-term obligations. 11.. The first is the proportionate buyout of infrastructure owned by the Hunt Trust which sold the Circle T Ranch to Hillwood. The Town’s agreement with Hillwood is that in exchange for dissolution of the Municipal Utility Districts (MUDs), the Utility Fund will reimburse Hillwood the share of purchased MUDs infrastructure for each development based upon the acres removed from the MUDs. Hillwood, in turn, must deposit these funds into an escrow account owned by the Hunt Trust. - 50 100 150 200 250 300 350 400 450 500 550 600 FY 03/04 actual FY 04/05 actual FY 05/06 actual FY 06/07 actual FY 07/08 actual FY 08/09 actual FY 09/10 actual FY 10/11 actual FY 11/12 estimated FY 12/13 projected 204 294 325 359 420 450 475 480 481 482 Nu m b e r o f A c c o u n t s 10 Year Analysis - Utility Billing Accounts Page 82 FFUUNNDD OOVVEERRVVIIEEWW 22.. The second long term liability is the loan from Hillwood to the Town to construct the 16” and 20” transmission water lines and the US 377 Pump Station. The Town is contractually obligated to pay for this infrastructure through a surcharge on water rates. The Town is divided into two service areas, one being the Circle T Ranch, and the remaining areas within the Town’s limits which constitute the “Town” service area. The Town pays Hillwood $.25 cents per 1,000 gallons of water distributed to consumers in these two service areas. Each service area pays its respective portion of the overall debt based on the volume of water used from the customers. The contract clearly stipulates that this is not a general obligation of the Town. It is, however, required to be paid back through this assessment being attached to the water rate. The rate would have to be significantly increased to pay this debt off in the twenty years contemplated under the agreement. Hillwood has stated that once the Town and Hillwood agree on proportionate future infrastructure funding, this liability will be erased. Nevertheless, the obligation does exist and water rates should always be reviewed with this obligation in mind. 33.. The third long term liability is the joint Westlake/Keller water tower that was constructed to provide the necessary water storage and pressures within Westlake. Staff is committed to maintaining an up to date utility rate analysis to maintain the integrity of the fund. The budget is based on an adjustment in water and sewer rates from a rate study conducted in FY 2010-11. The fund revenues were estimated based on a water and sewer rates approved by the Town Council on December 13, 2010 and became effective January 1, 2011. The purpose of the rate increase was to fully recover all system costs as well as provide for capital improvements and maintenance of our water and sewer utility. In addition to the rate increase on December 13, 2011, Council also approved a “pass-through” rate adjustment ordinance that provides for an automatic adjustment to rates based on unit volume costs from the Town’s wholesale providers. Page 83 Utility Fund Public Works Activity Budget Percent Water Services 1 Maintenance & Repairs 212,415 8.80% 2 Regulatory Monitoring & Reporting 43,257 1.79% 3 Water Conservation 19,685 0.82% 4 Customer Service 58,828 2.44% 5 Meter Testing & Replacement 71,507 2.96% 6 Wholesale Water Purchases 1,110,601 46.02% 7 Contract Management 166,711 6.91% $ 1,683,003 69.75% Sewer Services 1 Maintenance & Repairs 23,647 0.98% 2 Regulatory Monitoring & Reporting 5,969 0.25% 3 Wastewater Treatment 394,221 16.34% 4 Contract Management 24,393 1.01% $ 448,230 18.58% Solid Waste & Recycling 1 Solid Waste 71,117 2.95% 2 Recycling 20,033 0.83% $ 91,151 3.78% Utility Billing Services 1 Utility Billing 68,011 2.82% $ 68,011 2.82% Municipal Governance 1 Town Council Meetings/Workshops 47,922 1.99% $ 47,922 1.99% Citizen Engagement and Communication 1 Neighborhood Gatherings & Outreach 5,425 0.22% $ 5,425 0.22% Accounting Services - Municipal 4 Financial Reporting 19,470 0.81% $ 66,813 2.77% **Represents Total Expenses net of Debt & Capital Projects 2,413,073$ 100% PROGRAM BUDGET Program Jarrod Greenwood 817-490-5717 Department Director Department Phone Page 84 $119,622 $293,842 $119,688 $533,152 Pymt # Due Date Beginnig Balance GW Farms Waterline Knox Road Connection Knox Road Connection TOTAL Ending Balance 1 Nov-03 533,152$ -$ 87,189$ -$ 87,189$ 445,962$ 2 Aug-05 445,962 7,975 13,777 7,979 29,731 416,232 3 Aug-06 416,232 7,975 13,777 7,979 29,731 386,501 4 Aug-07 386,501 7,975 13,777 7,979 29,731 356,770 5 Aug-08 356,770 7,975 13,777 7,979 29,731 327,039 6 Aug-09 327,039 7,975 13,777 7,979 29,731 297,308 7 Aug-10 297,308 7,975 13,777 7,979 29,731 267,577 8 Aug-11 267,577 7,975 13,777 7,979 29,731 237,846 9 Aug-12 237,846 7,975 13,777 7,979 29,731 208,116 10 Aug-13 208,116 7,975 13,777 7,979 29,731 178,385 11 Aug-14 178,385 7,975 13,777 7,979 29,731 148,654 12 Aug-15 148,654 7,975 13,777 7,979 29,731 118,923 13 Aug-16 118,923 7,975 13,777 7,979 29,731 89,192 14 Aug-17 89,192 7,975 13,777 7,979 29,731 59,461 15 Aug-18 59,461 7,975 13,777 7,979 29,731 29,731 16 Aug-19 29,731 7,975 13,777 7,979 29,731 (0) $ 119,622 $ 293,842 $ 119,688 $ 533,152 TOTAL Utility Fund Due to 4B Economic Development Fund Interfund Repayment Schedule Page 85 Pymt Pymt #Date Principal Interest Total Payable Principal Interest Total Balance 1 Sep-06 190,000$ 173,730$ 363,730$ 116,554$ 60,884$ 55,670$ 116,554$ 1,257,727$ 2 Sep-07 200,000 163,344 363,344 116,429.87 64,088.00 52,341.87 116,430 1,193,639 3 Sep-08 210,000 151,575 361,575 115,863 67,292 48,571 115,863 1,126,347 4 Sep-09 225,000 138,219 363,219 116,389.82 72,099.00 44,290.82 116,390 1,054,248 5 Sep-10 235,000 127,169 362,169 116,053 75,303 40,750 116,053 978,944 6 Sep-11 245,000 118,463 363,463 116,467.93 78,507.80 37,960.13 116,468 900,436 7 Sep-12 255,000 109,088 364,088 116,668 81,712 34,956 116,668 818,724 8 Sep-13 270,000 98,906 368,906 118,212.32 86,518.80 31,693.52 118,212 732,205 9 Sep-14 285,000 87,806 372,806 119,462 91,325 28,137 119,462 640,880 10 Sep-15 295,000 76,206 371,206 118,949.33 94,529.80 24,419.53 118,949 546,350 11 Sep-16 310,000 64,106 374,106 119,879 99,336 20,542 119,879 447,014 12 Sep-17 325,000 51,163 376,163 120,537.51 104,143.00 16,394.51 120,538 342,871 13 Sep-18 340,000 37,406 377,406 120,936 108,950 11,986 120,936 233,921 14 Sep-19 355,000 23,072 378,072 121,149.35 113,756.20 7,393.15 121,149 120,165 15 Sep-20 375,000 7,875 382,875 122,688 120,165 2,523 122,688 - 4,115,000$ 1,428,127$ 5,543,127$ 1,776,240$ 1,318,611$ 457,629$ 1,776,240$ TOTAL UTILITY FUND Debt Payable Schedule Keller Overhead Storage TOTAL PAYABLE WESTLAKE'S PORTION OF PAYABLE 32% Page 86 Vision Point: Leadership Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - 127,338 - - - - 127,338 Construction - - - - - - - - - - - - - - - - - - - - - - - - - - - - TOTAL - 127,338 - - - - 127,338 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Utility Fund - Cash - 127,338 - - - - 127,338 - - - - - - - - - - - - - - - - - - - - - - - - - - - - TOTAL - 127,338 - - - - 127,338 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - TOTAL - - - - - - - Planned PROJECT FUNDING IMPACT ON OPERATING BUDGET CAPITAL IMPROVEMENT Fiscal Year 2012/2013 TRA Assumption of N-1 Sewer Line PROJECT EXPENSE Planned Planned Thisproject is intended to transferownershipof a sectionofsewer line from WestlakeandSouthlake to TRA.It includesthedesignand constructionof a meteringstation with SCADA equipmentatthe proposed Town ofWestlake"Pointof Entry."Westlake will be required to conductanextensiveinflowand infiltration studyand perform repairs (separate capital improvement). 500-16600-00-30 Page 87 Vision Point: Leadership Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering 130,000 34,533 - - - - 164,533 Construction - - - - - - - - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL 130,000 34,533 - - - - 164,533 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Utility Fund - Cash 130,000 34,533 - - - - 164,533 - - - - - - - - - - - - - - - - - - - - - - - - - - - - FUNDING TOTAL 130,000 34,533 - - - - 164,533 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - - - - Planned PROJECT FUNDING IMPACT ON OPERATING BUDGET CAPITAL IMPROVEMENT Fiscal Year 2012/2013 N-1 Sewer Line Transfer / Inflow & Infiltration Repairs PROJECT EXPENSE Planned Planned As a conditionofthe N-1 sewer line transferWestlake was required to conductanextensiveinflowand infiltration study.Thestudy will identify repairs that need to be made. 500-16600-00-31 Page 88 Vision Point: Leadership Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - - - - - - - Construction - 2,000,000 - - - - 2,000,000 - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL - 2,000,000 - - - - 2,000,000 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Utility Fund - Cash - 2,000,000 - - - - 2,000,000 interfund loan from General Fund - - - - - - - to be repaid over five years - - - - - - - - - - - - - - - - - - - - - FUNDING TOTAL - 2,000,000 - - - - 2,000,000 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - - - - IMPACT ON OPERATING BUDGET Planned Planned PROJECT FUNDING CAPITAL IMPROVEMENT Fiscal Year 2012/2013 Ground Storage Tank PROJECT EXPENSE Planned Thisproject will consist ofdesigningandconstructing a newground storagetankattheexistingpumpstation.We anticipatethistank will be a 1,000,000gallontankand will beneeded to augmentservices onceDeloittehasbecome fully staffed.Maintenance(consistingof inspection and cleaning) would not be expected until year two. 500-16600-00-36 Page 89 UTILITY MAINTENANCE & REPLACEMENT FUND The Utility-Maintenance & Replacement Fund (UMR) was created to provide a mechanism for repair and replacement of capital assets such as pump stations, lift stations, elevated and ground storage facilities, etc. This fund receives planned portions of revenues from the Utility Fund allocated to future capital repair and replacement. Utility - Maintenance & Replacement Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 General Sales Tax - - - - 0%- 2 3 Property Tax - - - - 0%- 3 4 Hotel Tax - - - - 0%- 4 5 Charges for Services - - - - 0%- 5 6 Contributions - - - - 0%- 6 7 Beverage Tax - - - - 0%- 7 8 Franchise Fees - - - - 0%- 8 9 Permits & Fees - - - - 0%- 9 10 Fines & Forfeitures - - - - 0%- 10 11 Investment Earnings 112 100 200 125 -38%(75) 11 12 Misc Income - - - - 0%- 12 13 Total Revenues 112 100 200 125 -38%(75) 13 14 Transfers In - 50,000 50,000 50,000 0%- 14 15 Total Other Sources - 50,000 50,000 50,000 0%- 15 16 TOTAL REVENUES & OTHER SOURCES 112 50,100 50,200 50,125 0%(75) 16 17 EXPENDITURES & OTHER USES 0%- 17 18 Payroll / Salaries - - - - 0%- 18 19 Payroll Related & Benefits - - - - 0%- 19 20 Payroll Transfers In - - - - 0%- 20 21 Payroll Transfers Out - - - - 0%- 21 22 Supplies - - - - 0%- 22 23 Services - - - - 0%- 23 24 Insurance - - - - 0%- 24 25 Repair & Maintenance - - - - 0%- 25 26 Rent & Utilities - - - - 0%- 26 27 Interfund Advances - - - - 0%- 27 28 Debt - - - - 0%- 28 29 Capital Outlay - - - - 0%- 29 30 Economic Development Incentives - - - - 0%- 30 31 Capital Projects - 31,200 - 52,450 100%52,450 31 32 Total Expenditures - 31,200 - 52,450 100%52,450 32 33 Transfers Out - - - - 0%- 33 34 Total Other Uses - - - - 0%- 34 35 TOTAL EXPENDITURES & OTHER USES - 31,200 - 52,450 100%52,450 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 112 18,900 50,200 (2,325)-105%(52,525)36 37 FUND BALANCE, BEGINNING 42,528 42,640 42,640 92,840 118%50,200 37 38 FUND BALANCE, ENDING 42,640 61,540 92,840 90,515 -3%(2,325)38 39 Restricted/Assigned/Committed Funds 42,640 61,540 92,840 90,515 -3%(2,325)39 40 UNASSIGNED FUND BALANCE, ENDING - - - - 0%- 40 41 41 42 Restricted/Assigned/Committed Funds 42 43 A Cash 510 10110 00 000 42,640 61,540 92,840 90,515 -3%(2,325)43 44 44 45 45 46 46 47 47 48 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 42,640 61,540 92,840 90,515 -3%(2,325)48 vs Page 91 FFUUNNDD OOVVEERRVVIIEEWW UTILITY- MAINTENANCE & REPLACEMENT FUND The Utility-Maintenance & Replacement Fund (UMR) was created to provide a mechanism for repair and replacement of capital assets such as pump stations, lift stations, elevated and ground storage facilities, etc. This fund receives planned portions of revenues from the Utility Fund allocated to future capital repair and replacement. As in the General-Maintenance and Replacement Fund, this was anticipated to help avoid future bond programs and force a more conservative pattern of spending in light of uncertain future revenues. This fund consists of systematic water and sewer line repairs and major maintenance projects funded by an operating transfer from the Utility Fund. Projects are included each year from a long-range maintenance schedule which incorporates routine scheduled maintenance and recommended replacement and upgrading of lines and permanent capital assets. Revenues and Transfers In  FY2012/2013 revenues are $50,125  A 0.1% decrease of $75 from the FY 11/12 estimated revenues of $50,200 Expenditures  FY2012/2013 expenditures are $52,450  A 100% increase from the FY 11/12 estimated expenses of $0 o $21,250 – Fire Hydrant Repair and Painting o $31,200 – Pump Motor Repair and Replacement Fund Balance  Fund balance at FY 12/13 year-end is projected to be $90,515 Page 92 FUND 510 6.60 1.00 1.00 Actuals Estimated Proposed 2003 - 2012 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 TOTALS 1 Sewer R&M - SS I&I 23,864$ -$ -$ -$ -$ -$ -$ 23,864$ 2 Pump Station Gate Retro-Fit 7,500 - - - - - - 7,500 3 WA-Ext Envrnmt Imprvmts Irrig - - - - - - - - Fire Hydrant Repair & Painting - - 21,250 - - - - 21,250 4 Pump/Motor Repair/Replacement - - 31,200 - - - - 31,200 Pump Station Equipment - - - - 160,000 165,000 175,000 500,000 SCADA Replacement - - - 88,000 - - - 88,000 Chevy Utility Truck - - - - 25,000 - - 25,000 Ground Storage Tank R&M - - - 100,000 - - - 100,000 31,364$ -$ 52,450$ 188,000$ 185,000$ 165,000$ 175,000$ 796,814$ GRAND TOTAL Projection Utility - Maintenance and Replacement Fund 5 Year Projection Description Page 93 GENERAL MAINTENANCE & REPLACEMENT FUND The General Maintenance & Replacement Fund (GMR) was created to provide a mechanism for the long term repair and replacement of large capital assets such as HVAC, walls, floors and ceilings, plumbing, electric, roadways, etc. General Maintenance & Replacement Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 General Sales Tax - - - - 2 3 Property Tax - - - - 3 4 Hotel Tax - - - - 4 5 Charges for Services - - - - 5 6 Contributions - - - - 6 7 Beverage Tax - - - - 7 8 Franchise Fees - - - - 8 9 Permits & Fees - - - - 9 10 Fines & Forfeitures - - - - 10 11 Investment Earnings 271 250 2,625 1,750 -33%(875) 11 12 Misc Income - - - - 12 13 Total Revenues 271 250 2,625 1,750 -33%(875) 13 14 Transfers In 670,648 530,000 530,000 550,000 4%20,000 14 15 Total Other Sources 670,648 530,000 530,000 550,000 4%20,000 15 16 TOTAL REVENUES & OTHER SOURCES 670,919 530,250 532,625 551,750 4%19,125 16 17 EXPENDITURES & OTHER USES 17 18 Payroll / Salaries - - - - 18 19 Payroll Related & Benefits - - - - 19 20 Payroll Transfers In - - - - 20 21 Payroll Transfers Out - - - - 21 22 Supplies - - - - 22 23 Services - - - - 23 24 Insurance - - - - 24 25 Repair & Maintenance - - - - 25 26 Rent & Utilities - - - - 26 27 Interfund Advances - - - - 27 28 Debt - - - - 28 29 Capital Outlay - - - - 29 30 Economic Development Incentives - - - - 30 31 Capital Projects 41,037 418,520 368,431 329,220 -11%(39,211) 31 32 Total Expenditures 41,037 418,520 368,431 329,220 -11%(39,211) 32 33 Transfers Out - - - - 33 34 Total Other Uses - - - - 34 35 TOTAL EXPENDITURES & OTHER USES 41,037 418,520 368,431 329,220 -11%(39,211) 35 36 EXCESS REVENUES OVER(UNDER) EXPENDITURES 629,881 111,730 164,194 222,530 36%58,336 36 37 FUND BALANCE, BEGINNING 61,654 691,535 691,535 855,729 24%164,194 37 38 FUND BALANCE, ENDING 691,535 803,265 855,729 1,078,259 26%222,530 38 39 Restricted/Assigned/Committed Funds 691,535 803,265 855,729 1,078,259 26%222,530 39 40 UNASSIGNED FUND BALANCE, ENDING - - - - 40 41 41 42 Restricted/Assigned/Committed Funds 42 43 A Cash 600 10110 00 000 691,535 803,265 833,729 1,056,259 27%222,530 43 44 A Cash EMS 600 10110 14 101 - - 22,000 22,000 0%- 44 45 45 46 46 47 47 48 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 691,535 803,265 855,729 1,078,259 26%222,530 48 vs Page 95 FFUUNNDD OOVVEERRVVIIEEWW GENERAL MAINTENANCE & REPLACEMENT FUND The General Maintenance & Replacement Fund was created to provide a mechanism for the long term repair and replacement of large capital assets such as HVAC, walls, floors and ceilings, plumbing, electric, roadways, etc. This fund receives planned portions of revenues from each operating fund that owns and maintains capital assets to set aside for future capital repair and replacement. This helps to avoid future bond programs and encourages a more conservative pattern of spending in light of uncertain future revenues. Currently, because of our financial situation, the fund is not being able to be used as we had anticipated. This fund supports systematic facility repairs and major maintenance projects funded by operating transfers from other Town funds. Project lists are developed annually from a long- range facility maintenance schedule, and incorporated into a routine schedule for maintenance and replacement of major facility equipment and infrastructure and permanent capital assets. Revenues and Transfers In  FY12/13 revenues are $551,750 and are comprised of o $550,000 transfers in from the General Fund o $1,750 interest income  A 4% increase from the FY 11/12 estimated budget of $532,625 Expenditures/Projects  FY11/12 expenditures are $329,220  An 11% decrease of $39,211 from the FY 11/12 estimated budget of $368,431 Dept # Project # Description Amount 14 30 Fire Chief Vehicle 49,000 16 35 Illuminated Street Signs 24,000 17 7 WA - Relocate Pump Irrigation System 16,000 17 8 WA - Carpet/VCT flooring 20,500 17 10 WA - Environmental building upgrades - lighting -water 1,500 17 11 WA - Exterior paint - wood treatment & replacement 5,000 17 12 WA - Painting/cloth wall coverings repairs 18,200 17 13 WA - Seal roof and overhangs 13,400 17 17 WA - Refurbish classrooms 25,000 17 18 WA - Update Security System 6,000 17 19 WA - Update Security Cameras 8,000 17 23 WA - Interior Building R&M 12,000 17 24 WA - 15 Ton Split HVAC System 32,300 17 25 WA - 2 Ton Roof Top Units 40,500 17 29 WA - Heater boilers 10,320 17 36 WA - Plumbing Repair & Replacement 10,000 9 14 Trail Repairs 10,000 20 20 Cisco Call Manager Upgrade/Domain Controller 3,500 20 21 Network Printers 5,000 20 27 Replacement of Routers/Switches 7,000 20 28 Telephones/Peripheral Devices 5,000 20 33 Server Replacements 7,000 GRAND TOTAL $ 329,220 Fund Balance  Fund balance at FY 12/13 year-end is projected to be $1,078,259 Page 96 Actuals Estimated Proposed Description 2003 - 2011 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 TOTALS Ambulance Box, Chassis and Equipment 16 - 200,000 - - - - - 200,000 Fire Chief Vehicle 30 - - 49,000 - - - - 49,000 Ladder/Pumper 34 - - - - - - 1,400,000 1,400,000 Dept 14 - Total Fire/EMS - 200,000 49,000 - - - 1,400,000 1,649,000 Illuminated Street Signs 35 - - 24,000 - - - - 24,000 Dept 16 - Total Public Works - - 24,000 - - - - 24,000 WA - Relocate Pump Irrigation System 7 - 18,000 16,000 - - 3,000 - 37,000 WA - Carpet/VCT flooring 8 2,515 - 20,500 - - 5,000 - 28,015 WA - Exterior environmental improvements - irrigation 9 - 7,200 - 5,000 5,000 - 7,000 24,200 WA - Environmental building upgrades - lighting -water 10 14,281 9,100 1,500 5,500 - 10,000 - 40,381 WA - Exterior paint - Wood treatment & replacement 11 13,938 7,000 5,000 11,000 11,000 5,000 - 52,938 WA - Painting/cloth wall coverings repairs 12 - 5,000 18,200 - - 10,000 8,000 41,200 WA - Seal roof and overhangs 13 - 5,000 13,400 - - 8,000 - 26,400 WA - Parking Lot 15 - 17,600 - - - 10,000 18,000 45,600 WA - Refurbish classrooms 17 - 25,000 25,000 25,000 25,000 25,000 25,000 150,000 WA - Update Security System 18 - - 6,000 - 10,000 - 5,000 21,000 WA - Update Security Cameras 19 4,803 5,000 8,000 5,500 - - 6,000 29,303 WA - Interior Building R&M 23 - 3,500 12,000 - - - 12,000 27,500 WA - 15 Ton Split HVAC System 24 - 8,000 32,300 20,900 - - 12,000 73,200 WA - 2 Ton Roof Top Units 25 5,500 6,000 40,500 - - 5,000 - 57,000 WA - A/C 2 ton & 7.5 ton (server room)26 - - - - - 6,000 - 6,000 WA - Heater boilers 29 - 10,000 10,320 - 10,000 - - 30,320 WA - HVAC System replacement 32 - - - 5,500 5,000 5,000 13,000 28,500 WA - Plumbing Repair & Replacement 36 - - 10,000 5,000 5,000 5,000 5,000 30,000 Dept 17 - Total Facilities & Grounds Maintenance 41,037 126,400 218,720 83,400 71,000 97,000 111,000 748,557 Trail Repairs 14 - 10,000 10,000 10,000 10,000 10,000 - 50,000 Dept 19 - Parks and Recreation - 10,000 10,000 10,000 10,000 10,000 - 50,000 Cisco Call Manager Upgrade/Domain Controller 20 - 14,000 3,500 - - - - 17,500 Network Printers 21 - 630 5,000 5,000 5,000 5,000 5,000 25,630 Replacement of Routers/Switches 27 - 438 7,000 16,500 20,000 20,000 20,000 83,938 Telephones/Peripheral Devices 28 - 8,200 5,000 10,000 5,000 7,500 10,000 45,700 Server Replacements 33 - 8,763 7,000 7,000 10,000 10,000 10,000 52,763 Dept 20 - Total Information Technology - 32,031 27,500 38,500 40,000 42,500 45,000 225,531 41,037 368,431 329,220 131,900 121,000 149,500 1,556,000 2,697,088 GRAND TOTAL Projection General - Maintenance and 5 Year Projection Page 97 WESTLAKE ACADEMY This fund was incorporated into the Town’s budget beginning in FY 10/11. Westlake Academy opened its doors in September 2003 when the Town of Westlake officials took advantage of the State of Texas’ acceptance of chartered schools and thus, became the firs t and only municipality in the state to receive a chartered school designation. This section includes an excerpt from the adopted Westlake Academy operating budget for FY 2012/2013 including the transmittal letter and the five year forecast. The complete operating budget for FY 2012/2013 can be found on the Westlake Academy’s website. Westlake Academy Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 Federal Program Revenues 157,445 150,844 163,919 69,239 -58%(94,680)2 3 State Program Revenues 3,945,658 4,494,586 4,380,317 4,488,261 2%107,944 3 4 Local Revenues 874,207 839,412 1,238,685 1,281,934 3%43,249 4 5 0%0 5 6 0%0 6 7 0%0 7 8 0%0 8 9 0%0 9 10 0%0 10 11 0%0 11 12 0%0 12 13 0%0 13 14 Total Revenues 4,977,309 5,484,842 5,782,921 5,839,434 1%56,513 14 15 Other Sources 659,704 36,967 104,844 44,823 -57%(60,021)15 16 Total Other Sources 659,704 36,967 104,844 44,823 -57%(60,021)16 17 TOTAL REVENUES & OTHER SOURCES 5,637,013 5,521,809 5,887,765 5,884,257 0%(3,508)17 18 EXPENDITURES & OTHER USES 18 19 61 Payroll Related & Benefits 3,450,208 3,957,924 4,138,744 4,492,764 9%354,020 19 20 62 Professional & Contracted Services 849,942 971,025 1,149,978 749,490 -35%(400,488)20 21 63 Supplies and Materials 338,308 260,447 360,672 286,576 -21%(74,096)21 22 64 Other Operating Costs 246,527 385,824 297,752 289,986 -3%(7,766)22 23 65 Debt Service - - - - 0%0 23 24 0%0 24 25 0%0 25 26 0%0 26 27 0%0 27 28 0%0 28 29 0%0 29 30 0%0 30 31 Total Expenditures 4,884,985 5,575,220 5,947,146 5,818,816 -2%(128,330)31 32 Other Uses 603,000 49,807 174,271 57,663 -67%(116,608)32 33 Total Other Uses 603,000 49,807 174,271 57,663 -67%(116,608)33 34 TOTAL EXPENDITURES & OTHER USES 5,487,985 5,625,027 6,121,417 5,876,479 -4%(244,938)34 35 EXCESS REVENUES OVER(UNDER) EXPENDITURES 149,028 (103,218)(233,652)7,778 -103%241,430 35 36 FUND BALANCE, BEGINNING 767,933 916,961 916,961 683,309 -25%(233,652) 36 37 FUND BALANCE, ENDING 916,961 813,743 683,309 691,087 1%7,778 37 38 Restricted/Assigned/Committed Funds 115,810 3,684 24,396 0 -100%(24,396)38 39 UNASSIGNED FUND BALANCE, ENDING 801,151 810,059 658,913 691,087 5%32,174 39 40 # of Operating Days 65 55 45 45 0%0 40 41 Restricted/Assigned/Committed Funds 41 42 A Technology/FFE - - - - 0%0 42 43 A Uniform/Equipment Replacement - - - - 0%0 43 44 44 45 45 46 46 46 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS - - - - 0%- 46 vs Page 99 FUND OVERVIEW WESTLAKE ACADEMY This fund was incorporated into the Town’s budget beginning in FY 10/11. Westlake Academy opened its doors in September 2003 when the Town of Westlake officials took advantage of the State of Texas’ acceptance of chartered schools and thus, became the first and only municipality in the state to receive a chartered school designation. As a chartered school, Westlake Academy is an open enrollment public school. In 2008 the Texas Education Agency (TEA) renewed the Academy’s charter until 2016. The officials who pioneered the school also decided to follow another brave path in offering the globally recognized International Baccalaureate (IB) curriculum which is now being provided in over 900 schools nationwide and over 2,300 in 128 countries worldwide. Westlake Academy is owned and operated by the Town of Westlake and is the largest operating department of the Town. The TEA requires a separate budget be submitted to the state. A portion of that budget is now incorporated into the Town’s annual budget. The Academy’s fiscal year begins on September 1st and ends of August 31st. Revenues and Other Resources • FY 12/13 is budgeted at $5,884,257 • A decrease of ($3,508) under the ending estimated FY 11/12 budget of $5,887,765 Expenditures and Other Uses • FY 12/13 is budgeted at $5,876,479 • A decrease of ($244,938) over the ending estimated FY 11/12 budget of $6,121,417 • Transfers of indirect operating expenditures of $325,000 were not budgeted for FY12/13. Fund Balance • The projected ending fund balance for FY12/13 is estimated at $676,249 Page 100 Executive Summary August 13, 2012 Honorable President & Board of Trustees Westlake Academy 2600 J. T. Ottinger Road Westlake, TX 76262 RE: Transmittal of FY 2012 – 2013 Westlake Academy Budget: “Holding to the Vision, Rising to the Challenge” As Superintendent for Westlake Academy, I am submitting for your consideration the Budget for FY 12/13. This Budget for Westlake Academy encompasses all teaching and extra-curricular operating expenditures as well as State public school funding and private donations used to support the daily school operations of Westlake Academy in the 2012/13 school year. This 2012/2013 All Funds Budget totals $5,818,815 representing a 2% decline primarily due to the loss of one-time, federal and local, special revenue funds. The adopted FY 12/13 budget increases the General Fund, Fund Balance by $28,490. The increase is the result of an additional contribution from the Westlake Academy Foundation of $303,700, which will cover a portion of the costs associated with instructional personnel, curriculum, and professional development. With the continued support of the Westlake Academy Foundation, in addition to the Westlake Blacksmith Annual Fund, the Academy will be able to balance the budget through FY 12/13. If the State does not increases public education funding in the next biennium, it will be necessary to utilize the Academy’s fund balance to balance the budget following FY 12/13. Figure 1 – All Funds Budget Summary EstimatedAdopted $$%% BudgetBudgetIncreaseIncrease FY 11/12FY 12/13(Decrease)(Decrease) Beginning Fund Balance 914,661$ 683,310$ (231,351)$ -25% Revenues 5,782,921 5,839,434 56,513 1% Expenditures 5,947,148 5,818,815 (128,332) -2% Net Revenues over (under) Expenditures(164,226) 20,619 184,845 Other Resources 104,844 44,823 (60,021) -57% Other Uses (174,271) (57,663) 116,608 -67% Ending Fund Balance 683,309$ 691,088$ 7,779$ 1% Assigned 24,396 - (24,396) -100% Ending Fund Balance (Unassigned)658,913$ 691,088$ 32,174$ 5% # Days Operating (Based on 365)45 45 0 Daily operating expense 14,764$ 15,417$ 653 4% Page 101 Budget Presentation I welcome the opportunity to present and discuss operational plans and related financial impact with all interested parties. Interaction among interested groups consistently leads to operational and educational improvements which become available to the students and parents of Westlake Academy. The development, review, and consideration of the 2012/13 Governmental Fund Budgets (the General Fund, and Special Revenue Funds) were completed with a detailed and exhaustive review of every revenue and expenditure item within the context of the Academy’s Vision, Mission and Values statements, Strategic Planning efforts, and Board Policy. The budget document and the year-end annual audit are the primary vehicles to present the financial plan and the results of operations at the Academy. The budget document is organized into the following sections:  Introductory Section – Introduces the reader to the document as a whole. It highlights important information contained in the budget. Users rely on this section to get an overview – a snapshot of what they can expect to find in the rest of the document.  Organizational Section – Provides the context and framework within which the budget is developed and managed. The context for the budget is substantially predicated on the type and level of service to be provided the students of the Academy. The framework also includes the Academy’s organizational and financial structure as well as the controls that direct and regulate the development and administration of the budget.  Financial Section – Presents the heart of the Academy’s budget document. The budget financial schedules present the adopted budget for the Academy compared with the results of past budget plans and with future projections.  Informational Section – Contains information on past and future budgets and factors influencing the adopted budget. It puts the adopted budget into context and it explains past budget decisions. Page 102 Westlake Academy Mission, Vision & Values Westlake Academy is a public charter school offering the International Baccalaureate (IB) curriculum. Founded in 2003, with a mission to achieve academic excellence and develop life-long learners who become well-balanced, responsible global citizens, Westlake Academy is the first and only municipally- owned school in the state to receive a charter designation. Westlake Academy is the fifth school of only ten in the United States, and the only public school, to offer the full IB curriculum for grades K-12. During this year’s budget retreat great care and consideration were given to the mission and vision of the Academy and the impact that these have on both the long-term goals of the Academy and its day- to-day operation. The vision and mission statements represent the outcome of this discussion and evidence the Board’s continued dedication to academic excellence and personal achievement. The values statements are currently being reviewed by the Board and are listed here for reference only. MISSION: “Westlake Academy is an IB World School whose mission is to provide students with an internationally minded education of the highest quality, so they are well-balanced and respectful life-long learners.” VISION: “Westlake Academy inspires students to achieve their highest individual potential in a nurturing environment that fosters the traits found in the IB learner profile.” ~ Inquirers, Knowledgeable, Thinkers, Communicators, Principled, Open-minded, Caring, Risk-takers, Balanced, and Reflective~ VALUES Maximizing Personal Development Academic Excellence Respect for Self and Others Personal Responsibility Compassion and Understanding The following desired outcomes summarize the goals and objectives established by the Board of Trustees and leadership staff at the Academy. The vision, mission and organizational goals and objectives are discussed in greater detail in the Organizational section of this document (see pages 26-31). Desired Outcomes High Student Achievement Strong Parent & Community Connections Financial Stewardship & Sustainability Student Engagement-Extracurricular Activities Effective Educators & Staff Page 103 Budget Framework - “Governing and Managing for Outcomes” The budget document is but one part of a system designed to link together critical governance and management decision making tools. This system is called “Governing and Managing for Outcomes” and is designed to integrate:  Strategic planning  Five (5) year financial forecasting, budgeting, and performance measurement linked to priorities, objectives, and outcomes  Reporting to monitor progress in outcome achievement and accountability for results  Aligning resources to prioritized outcomes  Long term approach to ensure financial sustainability  Working within Board adopted financial policies for the Academy  Maintaining core services Budget Process The process of projecting the budgeting needs of the Academy is a continual process that responds to the changing needs of the Academy students and staff as well as changes in the fiscal environment such as the current State funding reductions. The process of developing the Academy budget for fiscal year 2012/13 began with the Westlake Board of Trustees meeting that was held in February of 2012. Following is a summary of the main steps taken in preparation of the adopted budget. BOARD OF TRUSTEE BUDGET REVIEW The Board of Trustees regularly receives quarterly budget updates, some of which are detailed in the trend analysis and the five-year financial forecast discussed later in this document. Upon receipt of the adopted annual budget, the Board holds budget workshops to review adopted changes, their associated outcomes for the next fiscal year, as well as their impact in a five (5) year financial forecast. BUDGET ADOPTION The Board of Trustees holds the required public meeting and adopts the budget in August prior to beginning the fiscal year which runs from September 1st to August 31st. BUDGET AMENDMENTS The Final Amended Budget for the Year Ending August 31, 2012 will be submitted at the August, 2012 Board meeting. It will reflect all amendments previously approved by the Board of Trustees plus any final amendments. Often, these amendments influence the shaping of the current budget as actual trends in revenues and expenditures are realized and accounted for. Page 104 Figure 2 Budget Process Academy Approach The Academy approach to coping with the combination of fast student growth in a restricted funding environment along with increasing academic standards requires that the budget process is instructionally driven and guided by the Academy’s Strategic Plan. During the budget development process the staff reviewed all revenues and expenditures and focused on aligning the allocation of resources, both personnel and financial, with the accomplishment of established goals and objectives. Timeline Description of Activities October - DecemberStrategic Plan preperation process occurs December Westlake Academy Leadership Team (WALT) begins planning FY 12/13 Budget January WALT meets with WA affiliates for joint planning for FY 2012/13 January - MarchDevelop CIP, Five Year Projection & Personnel Cost Estimates February Broad overview of 2012/13 Budget with BOT April Develop improvement plans for each grade level/dept. May Strategic Plan preparation process occurs, preliminary budgets developed June - July Current Budget Review June 7th BOT Budget Retreat August 13th BOT consideration/adoption of Westlake Academy FY 2012/13 Budget September - AugustBudget Amendments for FY 2012/13 Fall 2012 Begin strategic plan update/review process for FY 2012/13 January 2013 Annual Financial Report for FY 2011/12 Page 105 Explanation & Summary of Major Budget Components REVENUES The revenues received by Westlake Academy are classified into one of three broad categories: Federal, State or Local. State funding is the Academy’s largest revenue source making up over 76% of revenues from all funds. Staff estimates that the average level of total state aid paid through the Foundation School Program (FSP) in FY 12/13 will be approximately $6,463 per student; approximately an eight percent (8%) decrease from the FY 10/11 levels. As an open-enrollment charter school, Westlake Academy has the ability to establish specific class sizes and set limitations on secondary boundary enrollment. Enrollment for FY 12/13 is projected at 650 students in accordance with the current plan to attempt to maintain 20 students per class. Federal funding is received through grants that support special education and accounts for less than 5% of revenues for all funds; this funding is projected to decrease due to the reduction of the Education Jobs Grant. Local funding consists of two major sources, the Town and the Westlake Academy Foundation. As a municipally-owned charter school Westlake Academy does not have taxing authority; the Town of Westlake is responsible for debt service and capital improvements, these costs are estimated at $1,498,528 for FY 12/13. The Westlake Academy Foundation is an independent non-profit organization that raises funds through donations and fund raising; the FY 12/13 forecast is $1,108 per student, or approximately $720,000. EXPENDITURES Compensation and benefits are the largest operating cost for Westlake Academy. The current teacher pay scale is based on the Board policy of being within 3% of the median of the nine (9) surrounding public school districts. Per Board direction, the salary scale was held flat for FY 11/12; however, the adopted FY 12/13 budget has built in a 1% pay increase for all faculty and staff members. The increase for all applicable staff equals $36,077 (approximately 2%, including step-increases). The indirect operating costs were paid by the Academy in FY 11/12, but due to the reduction of state funding in the current biennium and the uncertainty of future funding scenarios, the indirect operating cost transfer has been removed from the FY 12/13 budget. The following table reflects these transfers with the indirect costs included in the FY 11/12 adopted budget. Figure 3 - Overall Total Cost Summary – All Governmrntal Funds and Municipal Debt Service Payments Estimated FY 11-12 Proposed FY 12-13 5,947,147$ 5,763,815$ - 306,900 Subtotal All Operating Costs 5,947,147 6,070,715 1,498,450 1,498,528 Grand Total All Costs 7,445,597$ 7,569,243$ Overall Cost Summary Proposed Westlake Academy Budget Estimated Town Funded Indirect Operational Costs (Support Services) Annual Debt Service Payment (Paid through Town) Page 106 Other Considerations MULTI-YEAR FINANCIAL FORECAST The current financial forecast shows the Academy’s utilizing the entire fund balance by FY 16/17. Unless revenues increase or operating expenditures are reduced, Westlake Academy’s estimated unassigned Fund Balance will drop below the TEA recommendation of maintaining a 45 day operating balance which was has been adopted by the board as a financial policy in FY 13/14. Figure 4 – Revenues, Expenditures & Fund Balance – General Fund Summary Historically, revenues and expenditures have increased at relatively the same rate which has dictated the need for a higher fund balance in order to sustain the 45-day minimum requirement established by Board policy. PROGRAMS & FACILITIES In FY 10/11 and FY 11/12 the Academy increased the course offerings in foreign languages, theater arts, technology, and science. This expansion of programs and facilities was primarily funded through the addition of a third section of 20 students in grades seven through grade eleven (G7 – G11) in FY 11/12. Due the increase in program offerings and student enrollment, facilities are operating at close to 100% capacity and required the addition of three portable buildings which were added in FY 11/12. Additional facility studies have been conducted by Project Management Services, Inc. (PMSI), and the Academy’s original architectural firm, Bennett, Benner, and Pettit. A Campus Master Plan and Facility Plan is expected to be completed and presented to the Board of Trustees for adoption in FY 12/13. FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 Revenues 1.09M 1.83M 2.41M 2.88M 3.17M 3.66M 4.28M 4.61M 5.24M 5.2M 5.68M 5.66M 5.7M 5.67M Expenditures 1.07M 1.61M 2.21M 2.62M 3.23M 3.71M 3.92M 4.52M 5.33M 5.39M 5.68M 5.79M 5.9M 6.01M Fund Balance 12K 232K 428K 692K 634K 502K 754K 915K 811K 658K 654K 507K 288K -71K $0 $1 $2 $3 $4 $5 $6 $7 Mi l l i o n s WA Programme Growth (Revenue, Expenditure, Fund Balance) Page 107 Financial Summary The budget is developed within the guidelines predicated by the Texas Education Agency and is organized into a series of accounts called funds. The total revenue for all funds for the Academy is estimated to be $5,839,434 and total expenditure appropriations amount to $5,818,815. The following schedules present a comparison of revenues and expenditures for all Governmental Funds in the Academy’s Budget. Budgets for the General Fund, the Food Service Fund (a Special revenue Fund) and the Debt Service Fund must be included in the official district budget (legal or fiscal year basis). The Academy does not maintain a Food Service Fund or a Debt Service Fund; therefore; the only fund legally adopted will be the General Fund. For informational purposes only, budgets for Special Revenue Funds are included throughout the presentation. Figure 5 – Table: Revenue Summary – All Governmental Funds Figure 6 – Graph: Revenue Summary – All Governmental Funds Adopted Estimated Adopted Audited Audited Audited Budget Budget Budget FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 11/12 FY 12/13 REVENUES Federal Program Revenues 56,134$ 199,436$ 157,445$ 150,844$ 163,919$ 69,239$ State Program Revenues 3,163,129 3,687,706 3,945,658 4,494,586 4,380,317$ 4,488,261$ Local Revenues 538,992 656,508 874,207 839,412 1,238,685$ 1,281,934$ Total Revenues 3,758,255$ 4,543,649$ 4,977,310$ 5,484,842$ 5,782,921$ 5,839,434$ Federal Program Revenues 3% State Program Revenues 76% Local Revenues 21% Revenues Page 108 The largest revenue source for Westlake Academy is State Foundation School Program funding which makes up 76% of All Governmental fund revenues. Figure 7 Table: Expenditure Summary – All Governmental Funds Figure 8 – Expenditure Summary – All Governmental Funds The largest expenditure category is Payroll & Related items which makes up approximately 77% of all Governmental fund expenditures. AdoptedEstimatedAdopted AuditedAuditedAuditedBudget BudgetBudget EXPENDITURES (BY FUNCTION)FY 08/09FY 09/10FY 10/11FY 11/12FY 11/12FY 12/13 11 - Instructional 2,120,372$ 2,428,184$ 2,764,022$ 3,029,625$ 3,278,462$ 3,377,707$ 12 - Resources & Media 62,513 87,511 73,398 90,134 82,929 140,756 13 - Staff Development 36,973 95,387 111,933 126,230 99,068 126,952 21 - Instructional Leadership 11,660 97,623 125,265 131,742 138,136 127,812 23 - School Leadership 179,554 286,307 294,931 333,805 345,030 353,683 31 - Guidance & Counseling 163,575 159,850 165,245 220,628 236,725 234,011 33 - Health Services 58,845 56,963 53,513 59,700 60,853 58,324 35 - Food Services 15,448 8,135 - 9,657 12,363 9,544 36 - CoCurricular/ Extra. Activities 111,738 116,808 7,275 134,726 101,818 186,036 41 - Administrative 527,000 318,624 105,472 601,746 697,464 314,263 51 - Maintenance & Operations 279,485 265,969 301,672 587,169 621,629 607,211 53 - Data Processing 88,720 157,923 525,273 159,874 174,781 166,686 61 - Community Services 66,822 59,592 154,962 66,244 79,010 91,890 71 - Debt Service 82,991 41,495 69,739 - - - 81 - Facility Acquisition/Construction - - 132,286 23,940 18,878 23,940 Total Expenditures 3,805,696$ 4,180,369$ 4,884,985$ 5,575,220$ 5,947,147$ 5,818,815$ 61XX - Payroll & Related Items 77% 62XX - Contracted Services 13% 63XX - Supplies & Materials 5% 64XX - Other Operating 5% Expenditures by Object Page 109 Budget Trends GENERAL FUND - STATE FUNDING Despite a 4% historical average annual growth rate, the State of Texas continues to lag behind the national average for per pupil funding, providing $1,000 to $1,500 less per pupil than the national average. Due to its Charter status, Westlake Academy receives less State funding per student than other non-charter public schools because public charter schools in the State of Texas do not receive facility funding. The Academy’s State funding per pupil has declined by approximately $745 per pupil since FY 09-10. Figure 9 Average Funding per Student The difference between the amount of Texas State funding and Westlake Academy is the amount dedicated to facilities funding. Public charter schools in Texas do not receive facility funding. - 2,000 4,000 6,000 8,000 10,000 12,000 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 Estimated 12/13 Adopted Average Funding / Student WA Mean Texas Mean National Mean Page 110 The largest funding sources for Westlake Academy continue to be State funding and the Blacksmith Apprentice Program. State funding has averaged between 80% and 86% of General Fund revenues from FY 07/08 to FY 12/13 while Blacksmith contributions have averaged between 10% and 15%. Figure 10 General Fund Revenues by Source GENERAL FUND - LOCAL FUNDING As the student population has grown, the Blacksmith annual program contributions have increased. However, the average contribution per student was declining from FY 06/07, but has begun an upward trend in the last two fiscal years. Figure 11 Blacksmith Contributions The FY 12/13 Blacksmith contributions of $720,000 are based on an estimated per-student average donation of $1,108. $0 $1 $2 $3 $4 $5 $6 FY 07/08 Audited FY 08/09 Audited FY 09/10 Audited FY 10/11 Audited FY 11/12 Estimated FY 12/13 Adopted Mi l l i o n s FY 12/13 Revenues by Source All Other Local Athletics Transportation Lunchroom Revenues Investment Earnings WAF Salary Reimbursement Blacksmith Apprentice Program FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 Est. FY 11/12 Propos ed FY 12/13 Total Raised $239,446 $335,727 $388,377 $407,012 $394,129 $431,409 $524,038 $679,000 $720,000 Average per Student 907 1,036 1,122 1,074 945 879 989 1,113 1,108 600 800 1,000 1,200 1,400 1,600 1,800 2,000 $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 To t a l C o n t r i b u t i o n s Blacksmith Program Contributions Page 111 Service Level Adjustments This budget makes use of Service Level Adjustments (SLA’s) to track any cost changes. These cost changes will fall into one of four categories: first, increased operating costs to maintain current levels of service; second, increased operating costs due to expanded levels of service; third, increased costs due to the development of new services, and fourth, cost savings. Cost savings may occur for any number of reasons, but primarily arise due to increased efficiency, service level reductions, or not expending the budgeted resources. Generally speaking, Service Level Adjustments (SLA’s) in this budget fall into the category of increased operating costs for existing programs. Some SLA’s are due to existing program expansion, such as increasing the number of international teachers at Westlake Academy. SLA’s involving new expenditure areas to target for recommendation to the Board for FY 11/12, staff recommended several areas: new positions, employee compensation. Instructional Salary Related Expenditures Total: $188,266 Desired Outcome: High Student Achievement In FY 12/13 we will have 69.93 full-time equivalent employees (FTE’s), an increase of 2.45 FTE’s. The increase in expenditures is the result of a combination of adding new positions, the years of experience our new teachers, an increase in unemployment insurance and other employer contributions, as well as the increased cost associated with teacher classifications and international teacher stipends.  Asst. to Secondary Principal (.50)  PYP Reading Specialist (.60)  PYP Spanish (.40)  DP Humanities (.50)  MYP Foreign Language (.34)  MYP/DP Reading Specialist (.41)  PYP PE Teaching Aide (.70)  Librarian/Aide (-1.0) Page 112 Lapse of Education Job Grant (Federal Funding to Save Teaching Positions) Total: $91,375 Desired Outcome: High Student Achievement In FY 11/12 the Academy received $91,375 in a federal entitlement grant for teacher retention. This was a one year grant that was utilized to offset the salaries of approximately 1.75 FTE teaching positions. With the lapse of the federal funding, these teaching positions were moved back into the General Fund. Employee Compensation and Benefits Total: $36,077 Desired Outcomes: Effective Educators & Staff – High Student Achievement In FY 11/12 the Board directed staff to prepare the budget holding teachers’ salaries flat. In FY 11/12 several of the surrounding districts increased their teacher pay and in order to maintain the Board policy of being within 3% of the median, it will be necessary to increase salaries 1% in FY 12/13. With over 70% of the Academy’s expenditures being directly related to employee pay and benefits, it is important that we offer competitive salaries, wages, and benefits to attract and retain a strong faculty base, even in a difficult economy. Media & Resource (Library) Total: $58,109 Desired Outcome: High Student Achievement With the renovation to the Scott Bradley Library and the introduction of the Media Center / Research environment, the staffing requirements shifted and two full-time teachers will be working with students in the PYP, MYP, and DP program on computer aided research and database utilization skills. Athletics Department Total: $65,921 Desired Outcome: Student Engagement & Extra-Curricular Activities The majority of this cost increase is related to the experience level of the Athletic Director, the increase in expenditures of assigned funds for equipment and uniform replacement, and anticipation of greater participation in athletics, requiring additional field rentals, referees, etc. The Academy collects player fees to help offset the cost of extra-curricular activities. Professional Development Total: $50,233 Desired Outcome: Effective Educators & Staff; High Student Achievement In FY 11/12, Westlake Academy received thousands of dollars in special revenue funds (grants) targeting professional development. Without the renewal of all these grants, the professional development budget was moved back into the General Fund. Ending In-Direct Operating Cost Transfer from Academy Budget to Town Budget Total: -$306,900 Desired Outcome: Financial Stewardship and Responsibility In FY 11/12 the Academy reimbursed the Town for the in-direct operating costs for administrative services shared with the Town of Westlake. This includes the Superintendent, Finance Director, Human Resources Director, Facilities Director, and support personnel. This had been paid by the Town of Westlake from the inception of the school in 2003. The amount represents $325,000 less the 25% portion of the IT Tech and the Maintenance Engineer for time allocated to the Town. Page 113 Individual Fund Summary GENERAL FUND The General Fund is a governmental fund with budgetary control which is used to show transactions resulting from operations of on-going organizations and activities from a variety of revenue sources. FY /13 Adopted: Revenues = $5,608,555 Expenditures =$5,572,225 Figure 12 Revenue & Expenditure Comparison – General Fund Expenditures have exceeded revenues over the last two fiscal years. This is due to the State’s reduction in public education funding, approximately an eight percent (8%) decline. $1 . 0 9 $1 . 8 3 $2 . 4 1 $2 . 8 8 $3 . 1 7 $3 . 6 6 $4 . 2 8 $4 . 5 9 $5 . 2 4 $1 . 0 7 $1 . 6 1 $2 . 2 1 $2 . 6 2 $3 . 2 3 $3 . 7 1 $3 . 9 2 $4 . 6 1 $5 . 3 3 $- $1 $2 $3 $4 $5 $6 FY 03/04 audited FY 04/05 audited FY 05/06 audited FY 06/07 audited FY 07/08 audited FY 08/09 audited FY 09/10 audited FY 10/11 estimated FY 11/12 Adopted Mi l l i o n s Revenue & Expenditure Comparison Revenues Expenditures Page 114 SPECIAL REVENUE FUNDS The Special Revenue Funds are the funds that account for local, state and federally financed programs or expenditures legally restricted for specified purposes or where unused balances are returned to the grantor at the close of a specified project period. FY 12/13 Adopted: Revenues =$170,879 Expenditures =$191,591 Figure 13 – Special Revenue Funds Comparison Variance Estimated Adopted Estimated FY 11/12 FY 12/13 to Adopted SPECIAL REVENUE FUNDS Federal Grants through TEA Fund 224 - IDEA B 72,544 69,239 (3,305) Fund 225 - IDEA B Preschool - - - Fund 266 SFSF (ARRA) - - - Fund 287 - Education Jobs 91,375 - (91,375) Sub-total Federal Grants 163,919 69,239 (94,680) State Grants through TEA Fund 397 - Advanced Placement Incentive 5,220 - (5,220) Fund 404 - Student Success Initiative 2,200 - (2,200) Fund 410 - Material Allotment Disbursment 3,566 - (3,566) Fund 411 - Technology - - - Fund 429 - AP/IB Campus Awards 925 - (925) Sub-total State Grants 11,911 - (11,911) Local Activities Fund 461 - Local Campus Activity 31,143 30,000 (1,143) Sub-total Local Activities 31,143 30,000 (1,143) Hudson Foundation Grants Fund 481 - Hudson Foundation - - - Fund 483 - Hudson Technology - - - Fund 484 - Hudson Teacher Development 35,000 - (35,000) Fund 485 - Hudson Teacher Grant 10,000 - (10,000) Fund 486 - Hudson Ron Clark: Teacher Effectiveness 28,430 - (28,430) Sub-total Hudson Foundation Grants 73,430 - (73,430) Westlake Academy Foundation Grants Fund 482 - WAF Fund100 19,259 - (19,259) Fund 487 - WAF Technology for the Next Generation 100,000 - (100,000) Fund 488 - WAF Support Mathematics Teacher 4,235 - (4,235) Fund 489 - WAF Rosetta Stone 10,995 - (10,995) Fund 490 - WAF Whole School Professional Development 36,980 - (36,980) Fund 491 - WAF Accept the Best, Nothing Less! Phase I 15,167 - (15,167) Fund 492 - WAF Accept the Best, Nothing Less! Phase II 26,742 36,000 9,258 Fund 493 - IB Learns Grant - 35,640 35,640 Fund 494 - WAF Library Fund-an-Item 61,000 - (61,000) Fund 495 - WAF Coop Tables Grant 26,622 - (26,622) Sub-total Foundation WA Grants 301,000 71,640 (229,360) Grant Total - All Special Revenue Funds 581,403 170,879 (410,524) Page 115 Informational Summary CHANGES IN DEBT Debt service for the Academy’s capital infrastructure is included in the Town of Westlake’s municipal budget. The amount of debt outstanding including interest is approximately $32,194,538; this debt will be retired in 2021. The average annual debt service for Academy facilities paid by the Town of Westlake is approximately $1,500,000. Discussion of current and future capital projects may be found in the Organizational Section of this document (see pages 40 & 41). FACILITIES The Academy was designed and built to service approximately 620 students, with the addition of almost 50 students; the facilities at the Academy are projected to reach full capacity at the beginning of the FY 13/14 school year. However, curriculum and course schedules play an equally important role in determining facility use; the IB curriculum places a unique demand on staff and resources. In addition to the permanent structures on the campus, the lease cost for three temporary buildings was added as a budget amendment to the FY 10/11 Academy budget and placed into service in FY 11/12. The buildings are used to support expanded curriculum offerings in the DP programme. These buildings do not meet the criteria for “capital” expenses and are paid for from the Academy’s operating budget. The 3 year lease includes a standard purchase option however, no commitment has been made at this time; the Board is currently discussing how this and other facility needs will be met in the future. PERSONNEL TRENDS The Academy has added personnel each year since its opening to support new grade levels and classes as well as curriculum expansion. In FY 11/12 the Academy added 8.4 FTE positions to support additional course offerings and student expansion. In FY 12/13 an additional 2.45 FTE positions for a total of 69.93 FTE employees (see page 95 in the Informational section for a complete list of all positions). Page 116 Figure 14 Westlake Academy FTE Staff Staff levels have increased steadily since the Academy opened in FY 03/04. Staffing levels have increased each year as the program offerings and each grade level is fully filled. The Academy has added 14.68 FTE positions since reaching full grade level expansion in FY 09/10. 18.85 25.15 32.40 36.40 43.00 48.10 55.62 59.44 67.48 69.93 - 10 20 30 40 50 60 70 80 FY 03/04 FY 04/05 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 Faculty & Staff Growth FY 03/04 - FY 12/13 Instructional Staff Instructional Aides School Leadership Office Staff Counselors IT Nurse Facilities Total Page 117 STUDENT ENROLLMENT TRENDS Westlake Academy’s student enrollment is established by two sets of boundaries. The primary boundary encompasses the Town of Westlake and allows Westlake residents automatic entry into Westlake Academy. The secondary boundaries are comprised of 31 of the surrounding school districts. While any school-age child from these districts is allowed to attend the Academy, demand for entrance has exceeded the Academy’s capacity necessitating an annual lottery system that is carried out according to the standards and practices dictated by Federal law. Student enrollment has grown since the Academy’s opening in FY 03/04 with the addition of one new grade level each year. The Academy opened with Grades 1 through 6 and completed adding grade levels in FY 09-10. The Academy’s enrollment continued to expand in FY 10/11 with an increase in target class sizes of 20 pupils per class and the addition of a third section in the secondary programme. In FY 13/14 the campus facilities at the Academy are expected to reach full capacity (including the three portable buildings discussed earlier in this document). Any future growth in student population may necessitate building or leasing additional space. Figure 15 Westlake Academy Student Enrollment Total enrollment has increased steadily since FY 03/04 in harmony with the expansion of grade levels. The increase from 530 in FY 10/11 to 610 in FY 11/12 is due to the Board’s decision to expand class sizes in an effort to increase program offerings. Future enrollment increases or decreases are at the sole discretion of the Board. 195 264 324 346 379 417 491 530 610 650 0 100 200 300 400 500 600 700 FY 03/04 G1-6 FY 04/05 K-7 FY 05/06 K-8 FY 06/07 K-9 FY 07/08 K-10 FY 08/09 K-11 FY 09/10 K-12 FY 10/11 K-12 FY 11/12 K-12 FY 12/13 K-12 WA Student Enrollment Page 118 Performance Results The State of Texas utilizes the Texas Assessment of Knowledge and Skills (TAKS) test to assess students’ attainment of reading, writing, math, science, and social studies skills required under Texas education standards. Although the test was created before the passage of the No Child Left Behind Act (NCLBA), it complies with the law. The charts below utilize TEA data to compare Westlake Academy’s performance with several benchmark school districts including the three districts that have boundaries within the Town of Westlake (Carroll ISD, Keller ISD and Northwest ISD). Of the school districts listed above, Westlake Academy had the highest or second-highest 2011 TAKS performance for every category except science. Westlake Academy’s spending per pupil declined sharply in FY 10/11 due to the State Education funding reductions. Recent enrollment increases have improved efficiencies and reduced the per student cost. Benchmarking against the surrounding local ISDs, Westlake Academy’s expenditures are near the median when comparing expenditures per student excluding debt service and capital expenditures. 0 10 20 30 40 50 60 70 80 90 100 TAKS % Passing Reading/ELA TAKS % Passing Writing TAKS % Passing Mathematics TAKS % Passing Science TAKS % Passing Social Studies 2011 TAKS Results Benchmark Comparisons Lewisville Northwest Arlington Birdville Fort Worth Keller Hurst-Euless-Bedford Carroll Westlake Academy Charter $5,500 $6,500 $7,500 $8,500 $9,500 FY 05/06 FY 06/07 FY 07/08 FY 08/09 FY 09/10 FY 10/11 Operating Costs per Student (Excluding Debt Service & Capital Expenditures) Lewisville Northwest Arlington Birdville Fort Worth Keller Hurst-Euless-Bedford Carroll Westlake Academy Charter Page 119 PARENT SURVEY RESULTS Westlake Academy is focused on delivering high quality educational services and depends upon the constant input from stakeholders. Each year Westlake Academy conducts an Annual Parent Survey to help identify any future needs and to prioritize resource allocation. The FY 10/11 Westlake Academy Parent Survey was conducted in June 2011 and achieved significant improvements in satisfaction (>5%) in thirteen (13) of the nineteen (19) service areas and programs rated. Westlake anticipates completing a parent satisfaction survey every other year to continue to track overall performance and satisfaction. 83% of the parent’s surveyed were very satisfied or satisfied with the overall quality of education Westlake Academy delivers to its students. AWARDS The Association of School Business Officials International (ASBO) presented a Meritorious Budget Award to Westlake Academy for its Annual Operating Budget for the fiscal year beginning September 1, 2010. This is the second year the Academy has been honored with this award. Additionally, the Academy received the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA); representing the fourth year the Academy has received this award. These awards represent a significant achievement that reflect the dedication and commitment the Board of Trustees and staff have given to meeting the highest principles of governmental accounting. These awards are valid for one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to ASBO and GFOA to determine its eligibility. Very Satisfied 41% Satisfied 42% Dissatisfied 14% Neutral 3% Overall Satisfaction with Quality of Education Page 120 SUMMARY Westlake Academy’s students, faculty, and staff continue down the path towards excellence, appearing in the top 50 public schools in the nation in three different national rankings. This shows that we lived up to our last year’s theme, “Continued Excellence in the Face of Change”. In FY 11/12, we spent many hours in discussion about the future of Westlake Academy, our vision, mission, and values. About how best we can reach our ultimate destination in this climate of uncertainty, and constant change. Keeping in mind our last year’s budget theme of continuing excellence in the face of change, I would offer for the FY 12/13 budget theme, “Holding to the Vision, Rising to the Challenge”. While we have many successes to celebrate, we are constantly striving to improve the Academy through multiple avenues, including: getting the right people on the bus, making sure that we are consistently taking measure of our course, and making adjustments as we move towards our goal; it is through our talented faculty, staff, students, and their supportive families, that we are able to unfailingly rise to the challenges, and hold to our vision. On behalf of our entire learning community, I would like to thank the Board for their leadership, dedicatio n to excellence, and their support in making Westlake Academy and the Town of Westlake, truly a shining example of what can be accomplished when people come together with a common purpose: great things can happen! As with all good teams, it becomes necessary to draw attention to performers who go above and beyond to make sure we accomplish our goals. I would like to recognize the hard work of the Westlake Academy and Municipal Leadership Team, and specifically Debbie Piper and Ben Nibarger for their efforts in completing this award winning document. I know with the team we have in place, we will continue “Holding to the Vision, and Rising to the Challenge ”. Thomas E. Brymer Town Manager/Superintendent Westlake Academy Page 121 CAPITAL PROJECTS FUND This fund tracks the infrastructure and building projects funded with general fund operating transfers, intergovernmental revenue, bond funds and other special fund sources. Capital projects are those projects over $25,000 that may extend over one fiscal year to complete and reflect multiple expense categories such as engineering, design and construction. All capital projects illustrate not only the expenditure and revenue sources, but ongoing operational impact. Capital Projects Fund Program Summary Fiscal Year 2012/2013 Adopted Estimated Proposed Proposed FY 12/13 Actual Budget Budget Budget FY 10/11 FY 11/12 FY 11/12 FY 12/13 Estimated FY 11/12 1 REVENUES & OTHER SOURCES 1 2 General Sales Tax - - - - 0%- 2 3 Property Tax - - - - 0%- 3 4 Hotel Tax - - - - 0%- 4 5 Charges for Services - - - - 0%- 5 6 Contributions - - 400,000 816,500 104%416,500 6 7 Beverage Tax - - - - 0%- 7 8 Franchise Fees - - - - 0%- 8 9 Permits & Fees - - - - 0%- 9 10 Fines & Forfeitures - - - - 0%- 10 11 Investment Earnings 27,055 27,800 12,800 11,000 -14%(1,800) 11 12 Misc Income - - 8,000 - -100%(8,000) 12 13 Total Revenues 27,055 27,800 420,800 827,500 97%406,700 13 14 Transfers In 3,290,659 - 35,000 - -100%(35,000) 14 15 Bond Proceeds 2,095,000 - - 8,500,000 100%8,500,000 15 16 Total Other Sources 5,385,659 - 35,000 8,500,000 24186%8,465,000 16 17 TOTAL REVENUES & OTHER SOURCES 5,412,714 27,800 455,800 9,327,500 1946%8,871,700 17 18 EXPENDITURES & OTHER USES 18 19 Payroll / Salaries - - - - 0%- 19 20 Payroll Related & Benefits - - - - 0%- 20 21 Payroll Transfers In - - - - 0%- 21 22 Payroll Transfers Out - - - - 0%- 22 23 Supplies - - - - 0%- 23 24 Services - - 400,000 - -100%(400,000) 24 25 Insurance - - - - 0%- 25 26 Repair & Maintenance - - - - 0%- 26 27 Rent & Utilities - - - - 0%- 27 28 Interfund Advances - - - - 0%- 28 29 Debt 36,446 - - - 0%- 29 30 Capital Outlay - - - - 0%- 30 31 Economic Development Incentives - - - - 0%- 31 32 Capital Projects 953,317 2,047,545 1,641,052 4,467,249 172%2,826,198 32 33 Total Expenditures 989,762 2,047,545 2,041,052 4,467,249 119%2,426,198 33 34 Transfer Out 8,900 - - - 0%- 34 35 Total Other Uses 8,900 - - - 0%- 35 36 TOTAL EXPENDITURES & OTHER USES 998,662 2,047,545 2,041,052 4,467,249 119%2,426,198 36 37 EXCESS REVENUES OVER(UNDER) EXPENDITURES 4,414,052 (2,019,745) (1,585,252) 4,860,251 -407%6,445,503 37 38 FUND BALANCE, BEGINNING 220,279 4,634,332 4,634,332 3,049,080 -34%(1,585,252) 38 39 FUND BALANCE, ENDING 4,634,332 2,614,587 3,049,080 7,909,331 159%4,860,251 39 40 Restricted/Assigned/Committed Funds 4,634,332 2,614,587 3,049,080 7,909,331 159%4,860,251 40 41 UNASSIGNED FUND BALANCE, ENDING - - - - 0%- 41 42 42 43 Restricted/Assigned/Committed Funds 43 44 C Cash/CD's 410 10110 00 000 4,634,332 2,614,587 3,049,080 7,909,331 159%4,860,251 44 45 0%- 45 46 0%- 46 47 0%- 47 48 0%- 48 49 TOTAL RESTRICTED/ASSIGNED/COMMITTED FUNDS 4,634,332 2,614,587 3,049,080 7,909,331 159%4,860,251 49 vs Page 123 FFUUNNDD OOVVEERRVVIIEEWW CCAAPPIITTAALL PPRROOJJEECCTTSS FFUUNNDD This fund tracks the infrastructure and building projects funded with general fund operating transfers, intergovernmental revenue, bond funds and other special fund sources. Capital projects are those projects over $25,000 that may extend over one fiscal year to complete and reflect multiple expense categories such as engineering, design and construction. All capital projects illustrate not only the expenditure and revenue sources, but ongoing operational impact. Completion of CIP projects may have a fiscal impact to the Town’s operating funds as routine maintenance and operational expenditures are necessary to utilize the completed project. When an operating impact has been identified, it is included on the project description sheet, and costs are projected for the next three years. Upon approval of the project for an annual expenditure, the fiscal impact is integrated into the operating budget. Revenues • FY12/13 projected revenues are $9,327,500. • This represents an increase of $8,871,700 from the FY 11/12 estimated budget of $455,800 o Contributions increased $416,500 - TSH proceeds ($400K) were received in FY11/12 and a Green Belt grant from TxDot in the amount of $816,500 is proposed in FY12/13 for median landscaping of FM1938/Davis Blvd. o Interest income is project at $11,000 for FY12/13 – this is a decrease of $1,800 compared to FY11/12. o Bond Proceeds are projected at $8.5M for FY12/13. These proceeds will be used to fund construction of three new buildings at Westlake Academy (if approved);  Cafetorium – includes stage, dressing area, storage and catering kitchen for dining and general purposes; approximately 9,600 sf.  Three story Secondary School - includes 15 classrooms, flex and office space; will be designed to allow for future addition if needed; approximately18,900 sf.  Field-house - will house locker rooms to be used for both athletics and PE; a visiting team locker room; storage for equipment; offices and space to be used for the PE program; approximately 9,600 sf. Expenditures • FY 12/13 project expenditures are projected to $4,467,249 Project # Project Description Amount CP20 FM1938 Streetscape/Wayfinding 1,353,469 CP28 Streets Survey 30,645 CP30 SH114/Hwy170 Enhancements 345,460 CP31 Stagecoach Hills Reconstruction/Drainage 41,680 CP41 Dove Vaquero to Terra Bella 221,995 CP42 Trail Connection at 114/Solana 15,000 CP45 Westlake Portion of Hillwood Projects 1,044,000 CP46 WA North Driveway Lighting 40,000 CP47 Hwy 377 Westport Parkway Sign 25,000 CP48 Westlake Academy Expansion 1,350,000 Total Project Expense $ 4,467,249 Fund Balance • FY 12/13 ending fund balance is projected to be $7,909,331 Page 124 Actuals Estimated Proposed Proj No.Description 2003 - 2011 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 TOTALS Revenues and Other Sources n/a Contributions - TSH Proceeds - 400,000 - - - - - 400,000 n/a Transfer in from GF for WA Expansion - 35,000 - - - - - 35,000 CP47 Hwy 377 Westport Parkway Signal - - 16,500 - - - - 16,500 CP20 FM 1938 Streetscape/Wayfinding - - 800,000 172,000 - - - 972,000 Total Revenues and Other Sources -$ 435,000$ 816,500$ 172,000$ -$ -$ -$ 1,423,500$ Capital Project Detail CP20 FM 1938 Streetscape/Wayfinding 592,877 808,609 1,353,469 567,100 253,100 - - 3,575,155 CP28-B Streets Survey 29,355 20,000 30,645 - - - - 80,000 CP30 SH 114/Hwy 170 Enhancements 7,500 - 345,460 390,940 336,000 - - 1,079,900 CP31-B Stagecoach Hills Street Reconstruction & Drainage 7,220 450,000 41,680 - - - - 498,900 CP32-B N. Roanoke Road Reconstruction & Drainage 3,348 192,443 - - - - - 195,790 CP34 S. Roanoke Road Reconstruction & Drainage 2,900 - - - 453,000 - - 455,900 CP40 Sam School Road Reconstruction & Drainage - - - 216,000 - - - 216,000 CP41 E. Dove Road Reconstruction & Drainage (Vaq - TB)- - 221,995 404,945 - - - 626,940 CP42 Trail Connection at 114/Solana - - 15,000 - - - - 15,000 CP45 Hillwood Misc Project Expense 4,740 85,000 1,044,000 - - - - 1,133,740 CP46 WA North Driveway Lighting - - 40,000 - - - - 40,000 CP47 Hwy 377 Westport Parkway Signal - 50,000 25,000 - - - - 75,000 CP48 Westlake Academy Expansion - 35,000 1,350,000 2,225,000 2,820,000 2,105,000 - 8,535,000 n/a TSH Donation Expense to WA Foundation - 400,000 - - - - - 400,000 Total Capital Projects 647,940$ 2,041,052$ 4,467,249$ 3,803,985$ 3,862,100$ 2,105,000$ -$ 16,927,325$ (647,940)$ (1,606,052)$ (3,650,749)$ (3,631,985)$ (3,862,100)$ (2,105,000)$ -$ (15,503,825)$ Projection 5 Year Projection Capital Projects Fund Page 125 Vision Point: Inviting Neighborhoods Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - - - - - - - Construction 1,401,486 1,353,469 567,100 253,100 - - 3,575,155 - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL 1,401,486 1,353,469 567,100 253,100 - - 3,575,155 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Capital Projects Fund - Cash 1,401,486 1,353,469 567,100 253,100 - - 3,575,155 Contributions/Grants - - - - - - - - - - - - - - - - - - - - - - - - - - - - FUNDING TOTAL 1,401,486 1,353,469 567,100 253,100 - - 3,575,155 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance (ROW)- 10,000 10,000 10,000 10,000 10,000 50,000 Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - 10,000 10,000 10,000 10,000 10,000 50,000 CAPITAL IMPROVEMENTFiscal Year 2012/2013 FM 1938 Streetscape/Wayfinding Planned Project consist of the design and construction of landscape and hardscape improvements to the FM 1938 corridor from SH 114 south to Randol Mill Road, including sidewalks, trailheads, signage, rest areas, plantings, entry monuments. Per developer's agreements: Fidelity is to provide funding for landscape enhancements to the median and ROW (est. $322K) and Vaquero (Discovery Land) was to provide landscape enhancements to the median (est. $217K). We anticipate the Fidelity and Discovery Land amounts will need to be negotiated as the developer's agreements don't provide a cap nor scope of work to be designed to. The Town is required to install sidewalk on the west side of FM 1938 from Dove to SH 114 per the Fidelity developer's agreement at our cost. Utility relocations will be necessary to accomodate construction, including adjusting manholes, fire hydrants, valves and meters as necessary. Maintenance is for irrigation only. 410-74400-00-20 Planned Planned PROJECT FUNDING IMPACT ON OPERATING BUDGET PROJECT EXPENSE Page 126 Vision Point: Inviting Neighborhoods Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering 49,355 30,645 - - - - 80,000 - - - - - - - EXPENDITURES TOTAL 49,355 30,645 - - - - 80,000 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Series 2011 CO $2,095,000 49,355 30,645 - - - - 80,000 - - - - - - - FUNDING TOTAL 49,355 30,645 - - - - 80,000 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - - - - PROJECT FUNDING Planned IMPACT ON OPERATING BUDGET Planned CAPITAL IMPROVEMENTFiscal Year 2012/2013 Street Survey PROJECT EXPENSE Planned TheStreetSurvey will evaluatethecurrentstatusofstreetsand thouroughfares within Westlake's Town limits.Thisinformation will beused to establish a prioritizationforrepairsandreplacementsas well asfurtherdefinitionoffuturestandardsofconstructionand repair.We will reviewstreetdesignstandardsandupdateas necessary. 410-73000-00-28 Page 127 Vision Point: Inviting Neighborhoods Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering 7,500 - - - - - 7,500 Construction - 345,460 390,940 336,000 - - 1,072,400 - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL 7,500 345,460 390,940 336,000 - - 1,079,900 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Series 2011 CO $2,095,000 7,500 345,460 - - - - 352,960 Pending Bond issue - - 390,940 336,000 - - 726,940 - - - - - - - - - FUNDING TOTAL 7,500 345,460 390,940 336,000 - - 1,079,900 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - - - - CAPITAL IMPROVEMENTFiscal Year 2012/2013 SH114 & Hwy 170 Enhancements Thisprojectwouldbe a cooperativeeffortbetweenWestlake,Trophy Club,andRoanokeconsistingofthedesignandconstructionof landscapeandhardscapeimprovements to the SH 1170 &114 interchange to includeplantings,painting,andentrymonuments. Maintenance is forirrigationonly.Project costs are estimated to be $3,000,000forconstructionand$200,000forengineeringdesign. Funding participation is anticipated to be 1/3 from each party. Planned 410-74400-00-30 Planned PROJECT FUNDING Planned IMPACT ON OPERATING BUDGET PROJECT EXPENSE Page 128 Vision Point: Inviting Neighborhoods Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - - - - - - - Construction 457,220 41,680 - - - - 498,900 - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL 457,220 41,680 - - - - 498,900 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Series 2011 CO $2,095,000 457,220 41,680 - - - - 498,900 - - - - - - - - - - - - - - - - - - - - - - - - - - - - FUNDING TOTAL 457,220 41,680 - - - - 498,900 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - 2,000 2,000 2,000 2,000 2,000 10,000 Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - 2,000 2,000 2,000 2,000 2,000 10,000 CAPITAL IMPROVEMENTFiscal Year 2012/2013 Stagecoach Hills Street Reconstruction and Drainage PROJECT EXPENSE Planned Planned Theproject will providestabilizationofroadsubgradeand2"of asphalt to theapproximate4,500LFofpavement in theStagecoach Hills Subdivisionandreplace/improveculvertsandditches.Foresee crack sealingduringthe2ndyearaftercompletion.Thisproject is not a candidate for Tarrant County participation. 410-74400-00-31 IMPACT ON OPERATING BUDGET Planned PROJECT FUNDING Page 129 Vision Point: Inviting Neighborhoods Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - - - - - - - Construction 2,900 - - 453,000 - - 455,900 - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL 2,900 - - 453,000 - - 455,900 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Series 2011 CO $2,095,000 2,900 - - - - - 2,900 Pending Bond issue - - - 453,000 - - 453,000 - - - - - - - - - - - - - - FUNDING TOTAL 2,900 - - 453,000 - - 455,900 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - - 2,000 2,000 Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - - 2,000 2,000 Planned PROJECT FUNDING IMPACT ON OPERATING BUDGET CAPITAL IMPROVEMENTFiscal Year 2012/2013 Roanoke Road Reconstruction and Drainage (South) PROJECT EXPENSE Planned Planned Theproject will providestabilizationofroadsubgradeand6"of asphalt to approximately4,000LFofRoanokeRoadand replace/improveculvertsandditches.Projectimprovements will be from Highway170south to the Town Limits.Foresee crack sealing duringthe2ndyearaftercompletion.The cost belowreflects constructionbyprivatecontractorwithoutparticipation from Tarrant County. 410-74400-00-34 Page 130 Vision Point: Inviting Neighborhoods Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - - - - - - - Construction - - 216,000 - - - 216,000 - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL - - 216,000 - - - 216,000 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Series 2011 CO $2,095,000 - - - - - - - Pending Bond issue - - 216,000 - - - 216,000 - - - - - - - - - - - - - - - - - - - - - FUNDING TOTAL - - 216,000 - - - 216,000 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - 1,000 1,000 1,000 3,000 Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - 1,000 1,000 1,000 3,000 Planned PROJECT FUNDING IMPACT ON OPERATING BUDGET CAPITAL IMPROVEMENTFiscal Year 2012/2013 Sam School Road Reconstruction and Drainage PROJECT EXPENSE Planned Planned Theproject will providestabilizationofroadsubgradeand6"of asphalt to approximately2,000LFofSamSchoolRoadand replace/improveculvertsandditches.Anticipate crack sealing2nd year from completion.The cost belowreflectsconstructionby private contractor without Tarrant County participation. 410-74400-00-40 Page 131 Vision Point: Inviting Neighborhoods Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - - - - - - - Construction - 221,995 404,945 - - - 626,940 - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL - 221,995 404,945 - - - 626,940 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Series 2011 CO $2,095,000 - 221,995 - - - - 221,995 Pending bond issue - - 404,945 - - - 404,945 - - - - - - - - - - - - - - - - - - - - - FUNDING TOTAL - 221,995 404,945 - - - 626,940 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - 2,000 2,000 4,000 Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - 2,000 2,000 4,000 Planned PROJECT FUNDING IMPACT ON OPERATING BUDGET CAPITAL IMPROVEMENTFiscal Year 2012/2013 Dove Road Reconstruction and Drainage (Vaquero -Terra Bella) PROJECT EXPENSE Planned Planned Theproject will providestabilizationofroadsubgradeand6"of asphalt to approximately6,500LFof Dove Roadandreplace/improve culvertsandditches.Anticipate crack sealing2ndyear from completion. The cost below reflects construction by private contractor withoutTarrantCountyparticipation.This work will alsoinclude constructionof a pedestrian trailfrom FM 1938 to theGlenwyck Farms. 410-73000-00-41 Page 132 Vision Point: Inviting Neighborhoods Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - 15,000 - - - - 15,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL - 15,000 - - - - 15,000 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Series 2011 CO $2,095,000 - 15,000 - - - - 15,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - FUNDING TOTAL - 15,000 - - - - 15,000 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - - - - Planned PROJECT FUNDING Planned Planned IMPACT ON OPERATING BUDGET PROJECT EXPENSE CAPITAL IMPROVEMENTFiscal Year 2012/2013 Trail Connection at Hwy 114 and Solana Thisproject will be a cooperativeeffortbetweenWestlake,Trophy Club,andSouthlakeconsistingofthedesignandengineeringofan intra-citytrail system.Theengineering/design costs are estimatedat $45,000.Constructionandlandscaping cost estimateshavenot yet beencompleted.Fundingparticipation is anticipated to be1/3 from each party. 410-74400-00-42 Page 133 Vision Point: Inviting Neighborhoods Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering 89,740 - - - - - 89,740 Construction - 50,000 - - - - 50,000 Construction (per Council Amendment)- 994,000 - - - - 994,000 - - - - - - - - - - - - - - EXPENDITURES TOTAL 89,740 1,044,000 - - - - 1,133,740 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Series 2011 CO $2,095,000 89,740 182,417 - - - - 272,157 Capital Projects Fund - Cash - 861,583 - - - - 861,583 - - - - - - - - - - - - - - - - - - - - - FUNDING TOTAL 89,740 1,044,000 - - - - 1,133,740 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - - - - Planned PROJECT FUNDING IMPACT ON OPERATING BUDGET CAPITAL IMPROVEMENTFiscal Year 2012/2013 Westlake Portion of Hillwood Projects PROJECT EXPENSE Planned Planned The Dove RoadandOttingerRoadprojectsinclude work that is required to bepaidbythe Town for misc constructionrelated to issues that were notpartoftheapprovedsetofplans within the Hillwood developer agreement. 410-46190-00-45 Town Councilapprovedanamendment to thedeveloperagreementon August27,2012 to appropriate$994,000ofadditionalfundsneeded to complete Dove RoadandOttingerRoadimprovements.Includesthe trail from Vaquero to Westlke Academy Page 134 Vision Point: Inviting Neighborhoods Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - - - - - - - Construction - 40,000 - - - - 40,000 - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL - 40,000 - - - - 40,000 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Series 2011 CO $2,095,000 - - - - - - - Capital Projects Fund - Cash - 40,000 - - - - 40,000 - - - - - - - - - - - - - - - - - - - - - FUNDING TOTAL - 40,000 - - - - 40,000 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - - - - PROJECT FUNDING Planned IMPACT ON OPERATING BUDGET Planned CAPITAL IMPROVEMENTFiscal Year 2012/2013 Westlake Academy North Driveway Lighting Theproject will providepermanentlightingfixturesalongthenew Westlake Academy north entry road. PROJECT EXPENSE Planned 410-73000-00-46 Page 135 Vision Point: Leadership Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - - - - - - - Construction 50,000 25,000 - - - - 75,000 - - - - - - - - - - - - - - - - - - - - - EXPENDITURES TOTAL 50,000 25,000 - - - - 75,000 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Series 2011 CO $2,095,000 50,000 8,500 - - - - 58,500 Contributions - 16,500 - - - - 16,500 (reimbursment from Tarrant County - - - - - - - for Tarrant County and Keller portion)- - - - - - - - - - - - - - FUNDING TOTAL 50,000 25,000 - - - - 75,000 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - - - - - Maintenance - - - - - - - Services - - - - - - - Equipment - - - - - - - Debt Service - - - - - - - OPERATING IMPACT TOTAL - - - - - - - PROJECT FUNDING Planned IMPACT ON OPERATING BUDGET Planned CAPITAL IMPROVEMENTFiscal Year 2012/2013 Hwy. 377 & Westport Parkway Signal PROJECT EXPENSE Planned 410-73000-00-47 Thisintersection is currentlyuncontrolled(doesnothave a traffic signal).This is a regionalprojectbetweenWestlake,TarrantCounty, Fort Worth,and TxDOT that will includetheinstallationof traffic signalsthat will beoperatedandmaintainedby TxDOT.Westlake will beresponsiblefor1/3oftheconstruction costs.Staff hasalso includedadditionalfunding to upgradethepoles to powdercoating similar to the existing signals at Westlake Parkway. Page 136 Vision Point: Leadership Project Description: Est. thru Proposed Project Expense Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Engineering - 150,000 25,000 20,000 25,000 - 220,000 Construction - 1,000,000 1,700,000 2,500,000 1,085,000 - 6,285,000 FF&E - - - - 900,000 - 900,000 Design 35,000 150,000 250,000 100,000 55,000 - 590,000 Contingency - 50,000 250,000 200,000 40,000 - 540,000 EXPENDITURES TOTAL 35,000 1,350,000 2,225,000 2,820,000 2,105,000 - 8,535,000 Est. thru Proposed Project Funding Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Capital Projects Fund - Cash 35,000 - - - - - 35,000 Series 2012 CO $8,500,000 (if issued)- 8,500,000 - - - - 8,500,000 - - - - - - - - - - - - - - - - - - - - - FUNDING TOTAL 35,000 8,500,000 - - - - 8,535,000 Est. thru Proposed Project Description 09/30/12 FY 12/13 13/14 14/15 15/16 16/17 Total Supplies - - - 10,000 10,000 5,000 25,000 Maintenance - - - 8,000 15,000 20,000 43,000 Services - - - 5,000 13,000 15,000 33,000 Other Operating Costs - - - 20,000 20,000 20,000 60,000 Miscelleaneous - - - 5,000 5,000 5,000 15,000 OPERATING IMPACT TOTAL - - - 48,000 63,000 65,000 176,000 Planned IMPACT ON OPERATING BUDGET Planned PROJECT EXPENSE CAPITAL IMPROVEMENTFiscal Year 2012/2013 Westlake Academy Expansion 410-74400-00-48 This project consists of the construction of a three new buildings: 2)Three story SecondarySchoolatapprx.18,900 sf.Includes15 classrooms,flexand office space.Designed to allowforfuture addition in needed. 3)Fieldhouseatapprox.9,600 sf.Will houselockerrooms to be usedforbothathleticsand PE,a visiting teamlockerroom,storage for equipment, offices and space to be used for the PE program. 1)Cafetorium with stage,dressingarea,storageandcateringkitchen for dining and general purposes at approx. 9,600 sf. Planned PROJECT FUNDING Page 137 CCAAPPIITTAALL IIMMPPRROOVVEEMMEENNTT PPLLAANN CAPITAL IMPROVEMENT PLAN The purpose of a Capital Improvement Plan (CIP) is to more formally structure the process for pricing, prioritizing, and determining the scope of all Town capital projects. The CIP helps both the elected officials and the staff to see the most accurate picture possible of the Town’s infrastructure and public building needs over the next five (5) years. The complete CIP document can be found on the Town’s website. Page 138 CCAAPPIITTAALL IIMMPPRROOVVEEMMEENNTT PPLLAANN A Town capital project should be defined as construction or reconstruction of any public building or infrastructure identified as a community need, whether funding is currently available or not. If funding is not currently available, but the project is determined by the Council to be important, the project is still included in the Council’s approved five (5) year CIP and shown as unfunded. If funding is later made available, the project is already on the “radar screen”, although it may be scheduled in the out years of the 5 year planning period. The Council approved the Town’s formal Five (5) Year CIP on April 23, 2012. By going through the effort of a formally prepared CIP in the prior year, subsequent years’ CIP should be more of an annual update to make sure of the following:  The staff has identified all the capital projects the Council sees on the horizon.  The Council can remove the projects that no longer are seen as a priority in terms of not meeting the community’s strategic needs (assuming that no funding has been spent on design thus far).  Annual Council review allows project timing to be adjusted in terms of which year in the 5 year time span the project is assigned.  Annual review of the Council approved 5 year CIP allows this review to be performed at the same time as the review of the 5 year financial forecast (this is completed to see the impact of a capital project not only on the capital side, but also on the operations/maintenance side).  With Council’s adoption of this 5 year CIP, along with the adopted financial policies, no capital project, regardless of funding source, is put into the CIP until it first comes through the annual update “call for projects” prepared each Spring by the staff and is included in the CIP approved by the Council. Page 139 Actuals Estimated Proposed PROJECT Proj#PROJECT DESCRIPTION 2000-2011 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 TOTALS CONTRIBUTIONS/GRANTS CP20 FM 1938 Streetscape/Wayfinding - - 800,000 172,000 - 972,000 CP47 Hwy 377 Westport Parkway Signal - - 16,500 - - 16,500 TOTAL CONTRIBUTIONS/GRANTS $ - $ - $ 816,500 $ 172,000 $ - $ 988,500 UTILITY FUND PROJECTS UF30 TRA Assumption of N1 Sewer Line - - 127,338 - - - - 127,338 UF31 N-1 Sewer Line Transfer I & I Study/Repairs - 130,000 34,533 - - - - 164,533 UF36 Ground Storage Tank - - 2,000,000 - - - - 2,000,000 UF37 Stagecoach Hills waterline connection Phase II - 363,375 - - - - - 363,375 TOTAL UTILITY FUND PROJECTS $ - $ 493,375 $ 2,161,871 $ - $ - $ - $ - $ 2,655,246 GENERAL GOVERNMENTAL PROJECTS CP20 FM 1938 Streetscape/Wayfinding 592,877 808,609 1,353,469 567,100 253,100 - - 3,575,155 CP26 Mahotea Boone Reconst/Drainage (COMPLETE)88,191 - - - - - - 88,191 CP28 Streets Survey 29,355 20,000 30,645 - - - - 80,000 CP29 WA Dining Hall Improvements (COMPLETE)78,085 - - - - - - 78,085 CP30 SH 114/Hwy 170 Enhancements 7,500 - 345,460 390,940 336,000 - - 1,079,900 CP31 Stagecoach Hills Street Reconstruction & Drainage 7,220 450,000 41,680 - - - - 498,900 CP32 N. Roanoke Road Reconstruction & Drainage 3,348 192,443 - - - - - 195,790 CP33 Aspen Lane Recon/Drainage (COMPLETE)214,022 - - - - - - 214,022 CP34 S. Roanoke Road Reconstruction & Drainage 2,900 - - - 453,000 - - 455,900 CP40 Sam School Road Reconstruction & Drainage - - - 216,000 - - - 216,000 CP41 E. Dove Road Reconstruction & Drainage (Vaq - TB)- - 221,995 404,945 - - - 626,940 CP42 Trail Connection at 114/Solana - - 15,000 - - - - 15,000 CP45 Town Portion of Hillwood Project (Bonds)4,740 85,000 182,417 - - - - 272,157 CP45 Town Portion of Hillwood Project (Cash)- - 861,583 - - - - 861,583 CP46 WA North Driveway Lighting - - 40,000 - - - - 40,000 CP47 Hwy 377 Westport Parkway Sign - 50,000 25,000 - - - - 75,000 CP48 Westlake Academy Expansion - 35,000 1,350,000 2,225,000 2,820,000 2,105,000 - 8,535,000 TOTAL GENERAL GOVERNMENTAL PROJECTS $ 1,028,238 $ 1,641,052 $ 4,467,249 $ 3,803,985 $ 3,862,100 $ 2,105,000 $ - $ 16,907,624 GRAND TOTAL ALL PROJECTS 1,028,238$ 2,134,427$ 6,629,120$ 3,803,985$ 3,862,100$ 2,105,000$ -$ 19,562,870$ $2,095,000 $8,500,000 $1,800,885 $4,511,738 $16,907,624 Future Bond Funding (Pending approval) $8,500,000 - Series 2012 CO issued 09/14/12 (pending approval) Cash/Transfers In/Fund Balance General Government Funding Summary Total - - - - - - - - - P R O J E C T I O N - - - - - - - - - ALL SUBMITTED CAPITAL PROJECTS BY FUNDING SOURCE $2,095,000 - Series 2011 CO issued 03/29/11 Page 140 5 YEAR PROJECTION Estimated Proposed Project Description FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 TOTALS 1 Cemetery Improvements -$ -$ -$ 63,000$ 31,800$ 250,000$ 344,800$ 2 Trail - Pearson Ln. (Aspen-Dove) 0.5 miles - - - 273,600 - - 273,600 3 Trail - Ottinger (WA - Cemetery) 0.25 miles - - - - - 276,100 276,100 4 Park Improvements - 174,400 366,380 105,000 106,000 106,000 857,780 5 Trail - Westlake Parkway. (N. of Fidelity to 114) 0.5 miles - 270,600 - - - - 270,600 6 Westlake Academy - New High School 31,291 469,359 4,863,258 - - - 5,363,908 7 Westlake Academy - New Middle School 25,819 387,281 3,855,921 - - - 4,269,020 8 Westlake Academy - New Media Center 9,317 139,753 858,380 - - - 1,007,450 9 Westlake Academy - New Multi-Purpose Building 9,826 147,394 1,470,435 - - - 1,627,655 10 Westlake Academy - New Performance Hall 10,393 155,897 1,311,309 - - - 1,477,599 11 Westlake Academy - Primary School Addition 9,578 143,671 1,230,275 - - - 1,383,524 12 Westlake Administration & Civic Center 21,503 322,550 3,142,140 - - - 3,486,193 13 Fire Station - - - 372,000 4,798,560 - 5,170,560 14 Westlake Academy - Cover Existing Walkway - - - - 270,275 - 270,275 15 Westlake Academy - West Parking Improvements - - - 115,500 - - 115,500 16 Dove & Randol Mill Traffic Circle - 2,019,600 - - - - 2,019,600 17 J.T. Ottinger (North of WA) Reconstruction & Drainage - - - 556,500 - - 556,500 18 Wyck Hill Resurface - - - - 52,950 - 52,950 19 Pearson Lane Reconstruction & Drainage - - - - 370,750 - 370,750 TOTAL UNFUNED 117,727$ 4,230,503$ 17,098,099$ 1,485,600$ 5,630,335$ 632,100$ 29,194,364$ Projection UNFUNDED CAPITAL PROJECTS Excerpt from 04/23/12 Adopted Captial Improvement Plan (pg8) Page 141 FFIIVVEE YYEEAARR FFOORREECCAASSTT NNAARRRRAATTIIVVEE FIVE YEAR FORECAST The purpose of a forecast is to get a general picture of what the organization’s financial condition over time could be, based upon conservative assumptions. The term “conservative” used in the context of financial forecasting means revenues are forecast at low growth levels or even at a decline (depending on the revenue source). FFIIVVEE YYEEAARR FFOORREECCAASSTT NNAARRRRAATTIIVVEE It is important to keep in mind the purpose of a forecast is to get a general picture of what the organization’s financial condition over time could be, based upon conservative assumptions. The term “conservative” used in the context of financial forecasting means revenues are forecast at low growth levels or even at a decline (depending on the revenue source). Expenditures, while not necessarily being forecast as declining, are generally forecast with a 2-3% escalation rate, depending on inflation. Forecasts generally have at least one scenario where all that is assumed on expenditures is the current level of service and perhaps some growth in salary/wage expenses. The Council can, if they wish, ask that certain service level adjustments, whether it is service expansion or reduction, be included as alternate scenarios, particularly if it appears that revenues will not cover expenditures in the out years of the forecast. It is also important to remember, since the purpose of the forecast is to get an idea, based on conservative assumptions, as to the Town’s financial condition during the five (5) year planning period, that the forecast is showing that the Town will have available funds for additional debt service as well as building a fund balance for future capital and major maintenance and replacement. This is the reason forecasting is a good tool, as it gives the Council time to strategize as to course we may want to make financially, both in the short and long term. Finally, it is important to remember the criticality that economic conditions play in forecasting, particularly as it relates to sales tax, which can be a volatile revenue source. If economic conditions improve, sales tax receipts are affected (usually positively) as well as building permit revenue. FORECAST ASSUMPTIONS - FY 2012-2013 PROPOSED BUDGET The five year financial forecast is based upon the following assumptions: REVENUES: • General Fund o Sales tax revenue is projected at a 6% decrease (primarily due to the reduction of economic development funds and conservative estimates of presumed one-time revenues as well as audit receipts). o Conservative one-time audit and presumed one time payments have been estimated at $100,000 each. In prior years these two numbers have been anywhere from $100,000 to $1,000,000 combined. Because of the uncertainly of the funds, we have been very conservative with these estimates. The on- going sales tax receipts are forecasted to increase by 3% from FY 2011-2012. o Includes the Property Tax Reduction portion of the Sales tax receipts o No additional one-time revenues related to economic development agreements are anticipated to be received o Property tax revenue is estimated at $1,183,514 based on Certified Tax Roll and M&O adopted tax rate of $.14197 per $100 of valuation. Page 143 FFIIVVEE YYEEAARR FFOORREECCAASSTT NNAARRRRAATTIIVVEE o No new gas well revenue is projected. o Building permits/inspection/plan review fees are based on 10 new homes o Franchise fees remained flat o Contribution of indirect cost totaling $325,000 from Westlake Academy has been discontinued beginning 10/01/2013 • Utility Fund o Revenues are projected to increase by approximately 2% o Interfund Transfer from the General fund of $2M and capital project for same regarding the ground storage tank EXPENDITURES: • Specific Funds o General Fund – Operating expenditures remained fairly flat while transfers out increased due to the $2M transfer to the Utility Fund  Transfer out of $2M (interfund loan to UF) for ground storage tank  Transfer out of $550K to General Maintenance and Replacement Fund  Transfer supplemental funds to Debt Service for debt payments in excess of sales taxes received in 4B Economic Development Fund o Visitors Association Fund – Expenditures and transfers out increased by 4% o Utility Fund - Expenditures increased by 5% o CIP – Based on adopted CIP and anticipated bond sale • All Funds o Includes all adopted maintenance projects and equipment replacement to maintain current level of service o Salary and wages remain flat o Assume first phase of market adjustments at $100,000 FORECAST ASSUMPTIONS - FY 2013-2014 AND BEYOND PROJECTION REVENUES: o Sales tax revenue is projected to increase 3% annually o Property tax revenue is projected to increase 2% annually o Other revenue is projected to increase by 2% EXPENDITURES: o Includes all adopted maintenance projects and equipment replacement to maintain current level of service o Salary and wages increase by 2% after second phase of market adjustment in FY 2013-14 of $115,000 o Other expenditures increase by 3% (excluding any one-time expenditures) o CIP based on adopted CIP Page 144 TOWN OF WESTLAKE FIVE YEAR FORECAST All Municipal Funds Revision 6 AUDITED ESTIMATED PROPOSED 1 2 3 4 5 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 GENERAL FUND 100 Sales Tax (ongoing 100% minus one time)3.0%4,609,625 3,450,000 3,360,000 3,460,800 3,564,624 3,671,563 3,781,710 3,895,161 Sales Tax (audit/one-time)0.0%- 350,000 200,000 200,000 200,000 200,000 200,000 200,000 Sales Tax Allocation to 4B linked (2,436,973) (950,000) (890,000) (915,200) (941,156) (967,891) (995,427) (1,023,790) Sales Tax Allocation to ED 3.0%(670,632) (205,000) (180,000) (185,400) (190,962) (196,691) (202,592) (208,669) Sales Tax Subtotal 1,502,019 2,645,000 2,490,000 2,560,200 2,632,506 2,706,981 2,783,691 2,862,701 Property Tax 2.0%1,226,689 1,262,053 1,183,514 1,207,184 1,231,328 1,255,955 1,281,074 1,306,695 Property Tax Subtotal 1,226,689 1,262,053 1,183,514 1,207,184 1,231,328 1,255,955 1,281,074 1,306,695 Beverage Tax 2.0%19,721 32,750 32,750 33,405 34,073 34,755 35,450 36,159 Franchise Fees 2.0%586,836 664,925 664,925 678,224 691,788 705,624 719,736 734,131 Permits and Fees 2.0%520,645 476,150 476,150 485,673 495,386 505,294 515,400 525,708 Fines & Forfeitures 2.0%605,705 640,000 560,000 571,200 582,624 594,276 606,162 618,285 Interest 2.0%10,408 13,470 13,470 13,739 14,014 14,294 14,580 14,872 Misc Income 2.0%96,079 63,929 51,277 52,303 53,349 54,416 55,504 56,614 Contributions 0.0%175,000 325,000 - - - - - - Other Sources 0.0%57,000 - - - - - - - Other Revenues 2,071,394 2,216,224 1,798,572 1,834,543 1,871,234 1,908,659 1,946,832 1,985,768 Transfer In - UF 500 Impact linked 145,216 37,500 37,500 38,464 39,233 40,018 40,819 41,635 Transfer In - UF (Interfund loan payment on $2M )400,000 400,000 400,000 400,000 400,000 Transfer In - VA 220 Dept 22 3.0%262 8,350 9,019 9,290 9,568 9,855 10,151 10,455 Transfer In - A&S 411 0.0%4,515 - - - - - - - Transfer In - LS 418 0.0%102 - - - - - - - Transfer In - ED 210 0.0%153 - - - - - - - Transfer in - CP 410 0.0%139 - - - - - - - Transfer In - 4B 200 0.0%112 - - - - - - - Transfer In - PTR 260 0.0%1,357,548 - - - - - - - Transfers In 1,508,045 45,850 46,519 447,754 448,802 449,873 450,969 452,090 Total Revenues & Transfers In 6,308,147 6,169,127 5,518,605 6,049,681 6,183,870 6,321,468 6,462,566 6,607,255 Payroll Salaries 2.0%(1,832,512) (1,997,629) (1,956,805) (2,097,941) (2,257,200) (2,302,344) (2,348,391) (2,395,359) Payroll Market Increases (inc. taxes, etc)2.0%(100,000) (115,000) - - - - Payroll Insurance/Taxes 1.0%(565,657) (630,988) (625,139) (631,390) (637,704) (644,081) (650,522) (657,027) Payroll Transfers In 3.0%356,026 507,033 529,037 544,908 561,255 578,093 595,436 613,299 Operating Expenditures 3.0%(1,981,201) (2,236,507) (2,149,877) (2,214,374) (2,280,805) (2,349,229) (2,419,706) (2,492,297) Expenditures (4,023,344) (4,358,091) (4,302,784) (4,513,797) (4,614,454) (4,717,561) (4,823,183) (4,931,384) Transfer Out - ED 210 0.0%(35,758) (35,758) (35,758) (35,758) (35,758) (35,758) - - Transfer Out - CP 410 linked (2,085,659) (35,000) - - (206,618) - - - Transfer Out - FM 252 0.0%(1,875) - - - - - - - Transfer Out - VE 257 0.0%(68,982) - - - - - - - Transfer Out - GMR 600 fixed (500,000) (530,000) (550,000) (550,000) (550,000) (500,000) (300,000) (300,000) Transfer Out- WA (K-5 Westlake reserve slots)- - (300,000) (300,000) (300,000) (300,000) Transfer Out - UF (interfund loan to UF/storage tank)- - (2,000,000) - - - - - Transfer Out - DS (Unapproved Road projects $3M (75K/$1M)- - (106,000) (225,000) (225,000) Transfer Out - DS (Bldg bond pymt $52K/$1M) $8.5M (175,474) (442,848) (438,848) (439,798) (440,648) (441,398) Transfer Out - DS 300 linked - (307,595) (183,087) (403,629) (373,987) (347,667) (403,293) (397,270) Transfers Out (2,692,274) (908,354) (2,944,319) (1,432,235) (1,905,211) (1,729,223) (1,668,941) (1,663,668) Total Expenditures & Transfers Out (6,715,618) (5,266,445) (7,247,103) (5,946,032) (6,519,664) (6,446,784) (6,492,123) (6,595,052) NET R&TI Over(Under) E&TO (407,471) 902,682 (1,728,499) 103,649 (335,795) (125,316) (29,558) 12,203 Beginning Fund Balance 3,731,332 3,323,861 4,226,543 2,498,044 2,601,693 2,265,899 2,140,582 2,111,025 Ending Fund Balance 3,323,861 4,226,543 2,498,044 2,601,693 2,265,899 2,140,582 2,111,025 2,123,228 Restricted/Committed/Assigned 2.0%406,464 254,295 248,025 252,986 258,045 263,206 268,470 273,840 Unassigned Ending Balance (projected)2,917,397 3,972,248 2,250,019 2,348,708 2,007,854 1,877,376 1,842,554 1,849,388 Operating Days 262 308 182 159 134 124 119 117 VISITOR ASSOCIATION FUND 220 Hotel Tax 2.0%527,261 535,000 540,350 551,157 562,180 573,424 584,892 596,590 Other Revenues 2.0%20,643 21,550 21,550 21,981 22,421 22,869 23,326 23,793 Transfers In - GF for Debt Service - - - - - - - - Total Revenues & Transfers In 547,904 556,550 561,900 573,138 584,601 596,293 608,219 620,383 Expenditures 3.0%(204,288) (224,427) (249,202) (256,678) (264,378) (272,310) (280,479) (288,893) Payroll Transfers to GF New acct 3.0%(152,079) (255,339) (255,225) (262,882) (270,768) (278,891) (287,258) (295,876) Transfer Out - GF 100 Dept 22 linked (262) (8,350) (9,019) (9,290) (9,568) (9,855) (10,151) (10,455) Transfer Out - DS 300 fixed (180,935) (182,396) (183,692) (180,000) (180,000) (180,000) (100,000) (75,000) Total Expenditures & Transfers Out (537,564) (670,512) (697,138) (708,849) (724,715) (741,056) (677,888) (670,225) NET R&TI Over(Under) E&TO 10,340 (113,962) (135,238) (135,711) (140,114) (144,764) (69,669) (49,842) Beginning Fund Balance 1,100,941 1,111,281 997,319 862,081 726,369 586,255 441,492 371,822 Ending Fund Balance 1,111,281 997,319 862,081 726,369 586,255 441,492 371,822 321,981 Restricted/Committed/Assigned 180,935 182,396 183,692 180,000 180,000 180,000 100,000 75,000 Unassigned Ending Balance (projected)930,346 814,922 678,389 546,369 406,255 261,492 271,822 246,981 Operating Days 632 444 355 281 205 129 146 135 DESCRIPTION Page 145 TOWN OF WESTLAKE FIVE YEAR FORECAST All Municipal Funds Revision 6 AUDITED ESTIMATED PROPOSED 1 2 3 4 5 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 DESCRIPTION CEMETERY FUND 255 Revenues 2.0%13,417 5,575 5,575 5,687 5,800 5,916 6,035 6,155 Transfers In 2.0%- - - - - - - - Total Revenues & Transfers In 13,417 5,575 5,575 5,687 5,800 5,916 6,035 6,155 Expenditures 3.0%(5,604) (5,900) (5,400) (5,562) (5,729) (5,901) (6,078) (6,260) Transfers Out 3.0%- - - - - - - - Total Expenditures & Transfers Out (5,604) (5,900) (5,400) (5,562) (5,729) (5,901) (6,078) (6,260) NET R&TI Over(Under) E&TO 7,813 (325) 175 125 71 16 (43) (105) Beginning Fund Balance 141,149 148,963 148,638 148,813 148,937 149,009 149,024 148,981 Ending Fund Balance 148,963 148,638 148,813 148,937 149,009 149,024 148,981 148,876 Restricted/Committed/Assigned 148,963 148,638 148,813 148,937 149,009 149,024 148,981 148,876 Unassigned Ending Balance (projected)- - - - - - - - ECONOMIC DEVELOPMENT FUND 210 General Sales Tax linked to GF alloc to EDlinked 670,785 205,000 180,000 185,400 190,962 196,691 202,592 208,669 Transfers In End FY2016fixed 35,758 35,758 35,758 35,758 35,758 35,758 - - Total Revenues & Transfers In 706,543 240,758 215,758 221,158 226,720 232,449 202,592 208,669 Expendures (706,391) (240,758) (215,758) (221,158) (226,720) (232,449) (202,592) (208,669) Transfers Out (153) - - - - - - - Total Expenditures & Transfers Out (706,543) (240,758) (215,758) (221,158) (226,720) (232,449) (202,592) (208,669) NET R&TI Over(Under) E&TO - - - - - - - - Beginning Fund Balance - - - - - - - - Ending Fund Balance - - - - - - - - Restricted/Committed/Assigned - - - - - - - - Unassigned Ending Balance (projected)- - - - - - - - 4B ECONOMIC DEVELOPMENT FUND 200 Sales tax (on-going)linked 873,487 850,000 877,500 915,200 941,156 967,891 995,427 1,023,790 Sales tax (one-time)fixed 345,000 100,000 12,500 25,000 25,000 25,000 25,000 25,000 Interest fixed 396 500 500 500 500 500 500 500 Transfers In - - - - - - - - Total Revenues & Transfers In 1,218,883 950,500 890,500 940,700 966,656 993,391 1,020,927 1,049,290 Expendures - - - - - - - - Transfer Out (1,248,614) (980,230) (920,230) (940,700) (966,656) (993,391) (1,020,927) (1,049,290) Total Expenditures & Transfers Out (1,248,614) (980,230) (920,230) (940,700) (966,656) (993,391) (1,020,927) (1,049,290) NET R&TI Over(Under) E&TO (29,731) (29,730) (29,730) - - - - - Beginning Fund Balance 297,308 267,577 237,847 208,117 208,117 208,117 208,117 208,117 Ending Fund Balance 267,577 237,847 208,117 208,117 208,117 208,117 208,117 208,117 Restricted/Committed/Assigned 267,577 237,847 208,117 208,117 208,117 208,117 208,117 208,117 Assigned Ending Balance (projected)- - - - - - - - DEBT SERVICE FUND 300 Property Tax 30,558 172,098 123,969 153,765 153,791 154,704 154,503 154,475 Interest 28 - - - - - - - Misc Income - - - 50 50 50 50 50 Transfer in - GF 100 - 307,595 182,986 403,629 373,987 347,667 403,293 397,270 Transfer in - GF for Academy 175,575 442,848 438,848 439,798 440,648 441,398 Transfer In - VA 220 linked to VA Fundlinked 180,935 182,396 183,692 180,000 180,000 180,000 100,000 75,000 Transfer In - 4B 200 linked to 4B Fundlinked 1,248,502 980,230 920,230 940,700 966,656 993,391 1,020,927 1,049,290 Transfer In - PTR 260 0.0%76,102 - - - - - - - Total Revenues & Transfers In 1,536,125 1,642,320 1,586,452 2,120,992 2,113,332 2,115,609 2,119,421 2,117,483 Bank Services Charges (1,130) (1,130) (2,925) (2,925) (2,925) (2,925) (2,925) (2,925) Bond Principal (555,000) (668,000) (655,000) (863,000) (892,000) (905,000) (905,000) (939,000) Bond Interest (972,490) (950,898) (782,849) (686,819) (654,159) (642,486) (645,448) (608,760) Expenditures - 2014 CO - $2.2M ($57K/$1M)linked - - - (125,400) (125,400) (125,400) (125,400) (125,400) Expenditure - 2012 CO - Academy facilities - - (175,474) (442,848) (438,848) (439,798) (440,648) (441,398) Total Expenditures & Transfers Out (1,528,620) (1,620,028) (1,616,248) (2,120,992) (2,113,332) (2,115,609) (2,119,421) (2,117,483) NET R&TI Over(Under) E&TO 7,504 22,292 (29,796) - - - - - Beginning Fund Balance - 7,504 29,796 0 0 0 0 0 Ending Fund Balance 7,504 29,796 0 0 0 0 0 0 Restricted/Committed/Assigned - - - - - - - - Assigned Ending Balance (projected)7,504 29,796 0 0 0 0 0 0 Page 146 TOWN OF WESTLAKE FIVE YEAR FORECAST All Municipal Funds Revision 6 AUDITED ESTIMATED PROPOSED 1 2 3 4 5 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 DESCRIPTION UTILITY FUND 500 Water/Sewer/Waste Revenues 2.0%2,939,180 2,595,766 2,646,850 2,699,787 2,753,783 2,808,858 2,865,036 2,922,336 Water/Sewer Tap Fees 2.0%42,429 23,125 23,125 23,588 24,059 24,540 25,031 25,532 Fort Worth Impact Fees 2.0%145,216 37,710 37,710 38,464 39,233 40,018 40,819 41,635 Misc Income 2.0%146,716 89,434 89,434 91,223 93,047 94,908 96,806 98,742 Interest 2.0%9,699 10,000 10,000 10,200 10,404 10,612 10,824 11,041 Contributions 0.0%- - - - - - - - Transfers In - GF (Interfund Loan)0.0%- - 2,000,000 - - - - - Total Revenues & Transfers In 3,283,239 2,756,035 4,807,119 2,863,261 2,920,527 2,978,937 3,038,516 3,099,286 Expenditures 3.0%(988,194) (738,340) (807,718) (831,949) (856,908) (882,615) (909,093) (936,366) Water Purchases 3.0%(1,015,869) (1,110,600) (1,110,600) (1,143,918) (1,178,236) (1,213,583) (1,249,990) (1,287,490) Debt Service (Hillwood)3.0%(97,943) (73,000) (73,000) (75,190) (77,446) (79,769) (82,162) (84,627) Debt Service (Keller OH Storage)ends fy2020 linked (37,960) (134,668) (118,212) (119,462) (118,949) (119,879) (120,538) (120,936) IFA Debt Pymt to 4B ends fy2019 fixed - - (29,731) (29,731) (29,731) (29,731) (29,731) (29,731) Bad Debt Expense 0.0%(49,007) - - - - - - - Payroll Transfers to GF new acct 3.0%(203,592) (251,694) (273,812) (282,026) (290,487) (299,202) (308,178) (317,423) Transfer Out - GF 100 Payroll 0.0%- - - - - - - - Transfer Out - UMR 510 fixed - (50,000) (50,000) (200,000) (200,000) (200,000) (200,000) (200,000) Transfer Out - GF 100 Impact Fees linked (145,216) (37,500) (37,500) (38,464) (39,233) (40,018) (40,819) (41,635) Transfer Out - GF (Interfund loan)- (400,000) (400,000) (400,000) (400,000) (400,000) Capital Projects 0.0%(213,364) (493,375) (2,161,871) - - - - - Total Expenditures & Transfers Out (2,751,145) (2,889,177) (4,662,444) (3,120,741) (3,190,990) (3,264,796) (3,340,510) (3,418,208) NET R&TI Over(Under) E&TO 532,094 (133,142) 144,675 (257,479) (270,463) (285,859) (301,994) (318,922) Beginning Fund Balance 2,571,347 3,103,441 2,970,299 3,114,974 2,857,495 2,587,032 2,301,173 1,999,179 Ending Fund Balance 3,103,441 2,970,299 3,114,974 2,857,495 2,587,032 2,301,173 1,999,179 1,680,257 Restricted/Committed/Assigned 2.0%143,780 149,050 153,522 156,592 159,724 162,919 166,177 169,501 Unassigned Ending Balance (projected)2,959,661 2,821,249 2,961,452 2,700,903 2,427,308 2,138,254 1,833,001 1,510,756 Total Operating Expenditures 2,392,565 2,308,302 2,413,073 2,482,276 2,551,756 2,624,778 2,699,692 2,776,573 Operating Days 452 446 448 397 347 297 248 199 UTILITY - MAINTENANCE & REPLACEMENT FUND 510 Revenues 1.0%112 200 125 126 128 129 130 131 Transfers In - UF 500 linked - 50,000 50,000 200,000 200,000 200,000 200,000 200,000 Total Revenues & Transfers In 112 50,200 50,125 200,126 200,128 200,129 200,130 200,131 Expenditures - - (52,450) (188,000) (185,000) (165,000) (175,000) (175,000) Transfers Out - - - - - - - - Total Expenditures & Transfers Out - - (52,450) (188,000) (185,000) (165,000) (175,000) (175,000) NET R&TI Over(Under) E&TO 112 50,200 (2,325) 12,126 15,128 35,129 25,130 25,131 Beginning Fund Balance 42,528 42,640 92,840 90,515 102,641 117,768 152,897 178,027 Ending Fund Balance 42,640 92,840 90,515 102,641 117,768 152,897 178,027 203,159 Restricted/Committed/Assigned 42,640 92,840 90,515 102,641 117,768 152,897 178,027 203,159 Assigned Ending Balance (projected)- - - - - - - - GENERAL- MAINTENANCE & REPLACEMENT FUND 600 Revenues 1.0%271 2,625 1,750 1,768 1,785 1,803 1,821 1,839 Transfers In - PTR 260 0.0%41,274 - - - - - - - Transfers In - GF 100 linked 500,000 530,000 550,000 550,000 550,000 500,000 300,000 300,000 Transfers in - VE 257 0.0%129,374 - - - - - - - Total Revenues & Transfers In 670,919 532,625 551,750 551,768 551,785 501,803 301,821 301,839 Expenditures (41,037) (368,431) (329,220) (131,900) (121,000) (149,500) (1,556,000) (200,000) Transfers Out - - - - - - - - Total Expenditures & Transfers Out (41,037) (368,431) (329,220) (131,900) (121,000) (149,500) (1,556,000) (200,000) NET R&TI Over(Under) E&TO 629,881 164,194 222,530 419,868 430,785 352,303 (1,254,179) 101,839 Beginning Fund Balance 61,654 691,535 855,729 1,078,259 1,498,127 1,928,912 2,281,215 1,027,036 Ending Fund Balance 691,535 855,729 1,078,259 1,498,127 1,928,912 2,281,215 1,027,036 1,128,875 Restricted/Committed/Assigned 691,535 855,729 1,078,259 1,498,127 1,928,912 2,281,215 1,027,036 1,128,875 Unassigned Ending Balance (projected)- - - - - - - - Page 147 TOWN OF WESTLAKE FIVE YEAR FORECAST All Municipal Funds Revision 6 AUDITED ESTIMATED PROPOSED 1 2 3 4 5 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 DESCRIPTION LONE STAR PUBLIC FUND 418 Revenues 3.0%36 45 45 46 48 49 51 52 Transfers In 3.0%- - - - - - - - Total Revenues & Transfers In 36 45 45 46 48 49 51 52 Expenditures 3.0%- - - - - - - - Transfers Out 3.0%(102) - - - - - - - Total Expenditures & Transfers Out (102) - - - - - - - NET R&TI Over(Under) E&TO (66) 45 45 46 48 49 51 52 Beginning Fund Balance 13,598 13,531 13,576 13,621 13,668 13,715 13,765 13,815 Ending Fund Balance 13,531 13,576 13,621 13,668 13,715 13,765 13,815 13,867 Restricted/Committed/Assigned 13,531 13,576 13,621 13,668 13,715 13,765 13,815 13,867 Unassigned Ending Balance (projected)- - - - - - - - CAPITAL PROJECT FUND 410 FM1938 Streetscape/Wayfinding - - 800,000 172,000 - - - - Hwy 377 Westport Parkway Signal - - 16,500 - - - - - Contributions - TSH Proceeds - 400,000 - - - - - - Interest Income 24,164 11,000 11,000 - - - - - Interest Income - Bond Proceeds 2,891 1,800 - - - - - - Misc Revenue - 8,000 - - - - - - Transfer in from GF linked 2,085,659 35,000 - - 206,618 - - - Transfer in from PTR 1,205,000 - - - - - - - Other Sources - Bond Proceeds 2,095,000 - 8,500,000 2,200,000 - 3,000,000 - - Total Revenues & Transfers In 5,412,714 455,800 9,327,500 2,372,000 206,618 3,000,000 - - Westlake Portion of Hillwood Projects (4,740) (85,000) (1,044,000) - - - - - TSH Donation Expense to WA Foundation - (400,000) - - - - - - Bond Issuance Costs (36,446) - - - - - - - Transfer Out to GF (139) - - - - - - - Transfer Out to PTR (8,761) - - - - - - - Mahotea Boone Reconst/Drainage (88,191) - - - - - - - Dove/Ottinger Recon/Drainage - - - - - - - - Streets Survey (29,355) (20,000) (30,645) - - - - - SH 114/Hwy 170 Enhancements (7,500) - (345,460) (390,940) (336,000) - - - Stagecoach Hills Street Reconstruction & Drainage (7,220) (450,000) (41,680) - - - - - N. Roanoke Road Reconstruction & Drainage (3,348) (192,443) - - - - - - Aspen Lane Recon/Drainage (214,022) - - - - - - - S. Roanoke Road Reconstruction & Drainage (2,900) - - - (453,000) - - - Sam School Road Reconstruction & Drainage - - - (216,000) - - - - E. Dove Road Reconstruction & Drainage (Vaq - TB)- - (221,995) (404,945) - - - - FM 1938 Streetscape/Wayfinding (517,956) (808,609) (1,353,469) (567,100) (253,100) - - - WA Dining Hall Improvements (78,085) - - - - - - - Trail Connection at 114/Solana - - (15,000) - - - - - WA North Driveway Lighting - - (40,000) - - - - - Hwy 377 Westport Parkway Signal - (50,000) (25,000) - - - - - Westlake Academy Expansion - (35,000) (1,350,000) (2,225,000) (2,820,000) (2,105,000) - - Unapproved Road Projects (2,576,100) (423,700) Total Expenditures & Transfers Out (998,662) (2,041,052) (4,467,249) (3,803,985) (3,862,100) (4,681,100) (423,700) - NET R&TI Over(Under) E&TO 4,414,052 (1,585,252) 4,860,251 (1,431,985) (3,655,482) (1,681,100) (423,700) - Beginning Fund Balance 220,279 4,634,332 3,049,080 7,909,331 6,477,346 2,821,864 1,140,764 717,064 Ending Fund Balance 4,634,332 3,049,080 7,909,331 6,477,346 2,821,864 1,140,764 717,064 717,064 Restricted/Committed/Assigned 4,634,332 3,049,080 7,909,331 6,477,346 2,821,864 1,140,764 717,064 717,064 Unassigned Ending Balance (projected)- - - - - - - - SUMMARY Total Revenues & Transfers in 21,017,124 13,359,535 23,515,329 15,898,557 13,960,084 16,946,044 13,960,276 14,210,545 Total Expenditures & Transfers Out (22,984,482) (20,203,949) (26,089,720) (23,240,692) (24,150,262) (25,216,974) (22,628,268) (21,252,637) NET R&TI Over(Under) E&TO (1,967,358) (6,844,414) (2,574,391) (7,342,135) (10,190,179) (8,270,930) (8,667,992) (7,042,092) 9,766,781 13,344,664 12,621,667 15,923,755 14,634,393 10,678,571 8,829,028 6,775,065 13,287,408 12,621,667 15,923,755 14,634,393 10,678,571 8,829,028 6,775,065 6,545,423 6,529,756 4,983,451 10,033,895 9,038,413 5,837,154 4,551,906 2,827,687 2,938,298 Unassigned Ending Balance (projected) 6,757,652 7,638,216 5,889,860 5,595,980 4,841,416 4,277,122 3,947,378 3,607,125 Restricted/Committed/Assigned Beginning Fund Balance Ending Fund Balance Page 148 This page is intentionally blank Page 149 COMMUNITY PROFILE This section presents an informative overview of the Town of Westlake. A location and history of the Town is provided along with a list of Westlake Council Members. Additional information including demographics, recent trends in development and survey results is also provided in this section. CCOOMMMMUUNNIITTYY PPRROOFFIILLEE General Information The Town of Westlake is a one-of-a-kind community, an oasis with rolling hills, grazing longhorns, and soaring red-tailed hawks, located in the heart of the Fort Worth-Dallas metropolitan area. Inviting neighborhoods and architecturally vibrant corporate campuses find harmony among our meandering roads and trails, lined with native oaks and stone walls. We are leaders in education, known for our innovative partnerships between the Town-operated Charter school and our corporate neighbors. We are environmental stewards exemplifying the highest standards. Hospitality finds its home in Westlake, as a community, we are fully involved and invested in our rich heritage, vibrant present and exciting, sustainable future. Location Westlake is conveniently located between DFW Airport and Alliance Airport, on the south side of State Highway 114, providing quick, easy access to all areas of the Dallas-Ft. Worth Metroplex. The unique location of Westlake is ideal for many of its major corporate campuses and residential communities. A common ideal shared by our corporate and individual residents is their support of the existing character and charm of the community as well as a commitment to excellence in new development. Page 151 CCOOMMMMUUNNIITTYY PPRROOFFIILLEE History of Westlake In the beginning… The Town of Westlake has a short but fascinating history. The geographic region, known as the place where the cross timbers met the prairie, holds tales of settlers from the Peters Colony, Indian treaties signed by Sam Houston, tremendous archeological treasures, and some of the oldest settlements in north Texas. The region has always been known for its natural bounty, its trade value, and its wonderful people. The Town of Westlake and northeast Tarrant County has maintained that distinction over the years, becoming one of the most desirable and sought after places to live in America. Early Settlers… 1847 The Town of Westlake was settled by Charles and Matilda Medlin when they arrived in the area with about 20 other families in 1847. They initially settled along Denton Creek but moved south to higher ground after weathering ferocious floods from the creek. Until 1997, the three-story Medlin barn was a local historic landmark. When it had to be removed, after what was believed to be 130 years, for safet y concern. Legends include those of Sam Bass and Bonnie and Clyde hiding in the barn. The 1870’s… Dove Road was the cardinal road between Grapevine and Roanoke. The road took its name from the Dove Community which was located between the two towns. Dove Road originated in the 1870’s and got its name from the Lonesome Dove Baptist Church located in the community. The 1930’s… In the late 1930s, Ted Dealey, turned his attention to a lush and untouched piece of the Cross Timbers region. It was there he built a stunning country place designed by prominent architect, Charles Dilbeck. This place was known as the 220 Ranch. The Dealey Home, off Dove Road near Ottinger Road, is now known as Paigebrooke Farm. The 1940’s – 1950’s It was late in the 1940’s after World War II, at about the same time that Dealey built his home, that Circle T Ranch has its beginnings with J. Glenn Turner. He used the place to raise and train Tennessee Walking horses, and as a retreat and showplace. Circle T Ranch was expanded throughout the 1950’s to approximately 2,300 acres. In 1955, there were rumors of an attempt to disannex Circle T Ranch; as a defensive move, J Glenn Turner organized the neighboring ranches and homeowners in the surrounding community into forming their own city. On the 27th day of December in1956, citizens attended a meeting to declare the Town of Westlake into existence thru incorporation and to swear in the first Board of Aldermen. The area included what is known today as Westlake, plus the area north, to the northern shore of Denton Creek. This northern land was disannexed from Westlake and formed the town of Trophy Club in the 1970’s. Page 152 CCOOMMMMUUNNIITTYY PPRROOFFIILLEE The 1960’s… In 1969, the Circle T Ranch was purchased by oil millionaire Nelson Bunker Hunt. The ranch became known for its glamorous parties attended by celebrities from all over the world. The 1970s … In the early 1970’s, the state decided to name one of Westlake’s well -known streets after the person who was living in the first house on the road. That person was J.T. Ottinger. Also in the early 1970s, Houston developers and professional golfer Ben Hogan approached Westlake about building a golf course, country club, and a housing development. In 1973, Westlake disannexed what is now known as the town of Trophy Club, clearing the way for the upscale housing development and golf course. The 1980’s … In the mid-1980s, IBM built Solana, the multi use office complex. IBM maintained a large presence until the mid 1990's. At that time, several of the office buildings became available for use by other corporations. Eventually, IBM sold its partnership interest. The 1990’s … In 1989, Nelson Bunker Hunt declared bankruptcy and the Circle T Ranch was purchased by Ross Perot Jr. in 1993. In 1997, to the dismay of residents, there was an attempt to dissolve the Town of Westlake. Many court battles, including appeals to the Texas Supreme Court, were waged as emotions rose. Ultimately Town leadership prevailed The 2000’s …  2000 - The Westlake Historical Preservation Society was established for the purpose of recording and preserving the rich history of the Town of Westlake.  2002 – VIP’s and residents of Westlake gather at the site of the new Westlake Academy to help raise the first wall of the school. Westlake approved the purchase of the first Fire truck and ambulance.  Westlake Historical Preservation Society holds the first Annual Decoration Day on Memorial Day. Westlake Academy opens. The hope is that the new school will spur growth and unite the Westlake community.  2006 – Celebrations began to commemorate the 50th anniversary of the incorporation of Westlake in December 1956.  2007 – The Town of Westlake dedicated and sealed a time capsule containing a variety of special items. This time capsule will remain sealed until September 8, 2057, during the town's 100th anniversary celebration.  2008 – The development of Terra Bella, a 54.7 acre high- end single family subdivision began off Dove Road.  2009 – Deloitte University announces Westlake as the site for its $300 million learning and leadership center.  2009 - Westlake Academy Arts & Sciences Center was completed.  2010 - Westlake’s first gas well was successfully drilled in Solana.  2011- New retail growth began along the Town’s western boundary with construction of a new Quick Trip convenience store and a Centennial Fine Wine & Liquor store. Page 153 CCOOMMMMUUNNIITTYY PPRROOFFIILLEE Westlake Local Government The Town was incorporated in 1956 as a Type A General Law Town under the rules of the State of Texas. The Town Council is comprised of a Mayor and five Council Members who are elected at large for a two year staggered term each May. The Council is entirely responsible for creating Town policy. The Council directs the Town Manager to administer the daily operations of the Town and ensure that Town policies are enforced. LLaauurraa WWhheeaatt CCaarrooll LLaannggddoonn MMiicchhaaeell BBaarrrreetttt CClliiffttoonn CCooxx DDaavvee LLeevviittaann RRiicckk RReennnnhhaacckk Mayor Mayor Pro-Tem -------------------------------------Council Members------------------------------------- Westlake Operations The Town of Westlake has approved an operating budget of $24,909,946 for fiscal year 2012/20123 and includes approximately 105 full-time equivalent employees (municipal and academic). The Town of Westlake provides a full level of public services to its citizens as well as operates the only municipally owned Charter School in the state. The Town of Westlake utilizes a private firm for solid waste collection and disposal, as well as contracts with Keller, a neighboring community, for police services. Strategic Plan Overview During the 2011 strategic planning process, the Town Council and staff Leadership Team developed an overview of the strategic issues facing Westlake and developed action plans to monitor the success and completion of the projects. The vision and mission statements were updated to reflect the unique characteristics found within our community and the values which are important to our residents. The information is contained within five vision points which describe the areas that the Council and staff have determined are vital to maintaining our Town and providing services to enhance the lives of our residents and community. The Town’s strategic plan was developed according to a Strategic Issues format, which identified events through a SWOT (strengths, weaknesses, opportunities, and threats) analysis that would affect our community over the next 24 months. This type of issues-focused version of a traditional strategic plan is designed to allow the organization to scan our environment for opportunities or challenges as it relates to our community and develop action plans to achieve the best results for Westlake. Page 154 CCOOMMMMUUNNIITTYY PPRROOFFIILLEE Westlake Community Events Westlake is a family-friendly environment where events are held to help get our residents out and participating in activities with their children and neighbors. Arbor Day… The Westlake Arbor Day Celebration is held each October. This annual celebration is an afternoon of activities, live entertainment, best cookie competitions, auctions, and a variety of great food. Kids' activities have included pony rides, face painting, games, crafts, and an obstacle course. In addition, there are educational sessions on tree care advice, and complimentary trees. Admission is free. Decoration Day… The Westlake Preservation Historical Society sponsors its annual "Decoration Day" event each Memorial Day in Westlake at the Odd Fellow Cemetery. This community event is a public commemoration of veterans, both past and present, who have served our country and defended our freedom and liberties. Activities include live music, treasure hunts for the kids, and a homemade ice-cream competition. Past events have included live reenactments of people and events pertaining to Westlake’s history. The event ends at sunset. Masterwork Concert Series… The Masterworks Music Series is a variety of free music programs sponsored by the Town of Westlake, Maguire Partners, and ARTSNET. These free concerts are for arts lovers of all ages and feature instrumental a vocal music ranging from Country & Western to Blues & Jazz with the entertainment of local, regional and national artists. The concert season begins in April and features an exciting performance each Thursday through the month of May. Performances are held at the Solana Village Center. Page 155 CCOOMMMMUUNNIITTYY PPRROOFFIILLEE Westlake Academy The Westlake Academy is an Open Enrollment Charter School that opened September 1, 2003. Westlake Academy distinguishes itself among neighboring educational offerings with a particular focus on producing students who are globally minded. The programs of the International Baccalaureate Organization (Primary Years Program, Middle Years Program, Diploma Program) have been selected as the educational model utilized at the Academy. Educational technology will be pervasive and will infuse the classroom curriculum. An environment rich with heritage, the Westlake Academy mission is to provide educational opportunities to each child in keeping with his or her individual needs. The primary geographic service area for Westlake Academy is the town limits of Westlake; students from other locations may be considered if seats are available. Westlake Academy is a K-12 public charter school and was recently ranked:  #36 in the United States in the Washington Post Challenge Index  #18 in the United Stated by Newsweek  #5 in the State of Texas  #6 against all Charter Schools in the United States  #37 out of approximately 22,000 public high schools in the United States by U.S. News & World Report Westlake Academy is a premier learning establishment and prides itself on providing a learning environment where students have the resources and facilities to excel. Westlake Academy Campus Page 156 CCOOMMMMUUNNIITTYY PPRROOFFIILLEE Westlake Facts, Figures, & Statistics The Town of Westlake has experienced exponential growth in the last decade; the national census reported 207 residents in 2000 and 992 residents in 2010. The Town is approximately 20% built out with the majority of development continuing to be corporate campuses. There has been an increase over the last decade in high-end residential development located around the Vaquero Golf Course and in Glenwyck Farms. The Town’s focus on high -quality development has led to more than 1.4 million square feet of commercial space, valued at over $300 million, being added since 2005. The Town has seen a slight decrease in building permits however, the construction size and value have increased significantly over the last 10 years. In 2012, the average size of new home construction was 13,500 square feet with an average estimated construction cost of $1.57 million. F.M. 1938, Precinct Line Road construction began in FY 09/10 and will create a major north, south corridor. In addition, Deloitte University completed construction of their $160 million dollar, 160 acre, international training facility. The facility features over 800 rooms, office space, conference centers, amenity centers, as well as many parks, trails, and water features. This development represents another step towards Westlake’s goal to become an education-centered community. Vaquero Estates Vaquero Estates Country Club Deloitte University Campus Page 157 CCOOMMMMUUNNIITTYY PPRROOFFIILLEE 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 289 303 328 355 698 703 785 803 847 992 Population Growth Westlake Population and Employers Average Age Percent 18 – 34 years 3.5% 35 – 54 years 52.2% 55 – 74 years 39.2% 75+ years 3.9% Source: 2011 Westlake Citizen Survey Household Income Percent Under $50K 2.7% $50K - $149K 6.3% $150K - $500K 42.7% $500K plus 32.9% Source: 2011 Westlake Citizen Survey Population The Town of Westlake has experienced exponential growth in the last decade; the national census reported 07 residents in 2000 and 992 residents in 2011. The Solana Office Complex was the first of many corporate headquarters built by IBM in the 1980’s. Since then Westlake has collected additional corporate residents like, Fidelity Investments, Core Logic, Chrysler Financial, Levi Strauss, Deloitte and many more. Fidelity, 3,580, 47% Core Logic, 1,500 , 5% Chrysler Financial, 950 , 16% Top 3 Employers in Westlake Westlake Employers The DFW Metro area is home to more Fortune 500 companies than any other area in the United States. Several major employers are located within the Town of Westlake as listed the pie chart below. Page 158 CCOOMMMMUUNNIITTYY PPRROOFFIILLEE Sales Tax Rate . General 50% PTR 25% 4B 25% Tax Distribution Sales & Use Taxes Many people don’t know that most of their sales and use tax is remitted to the State of Texas; in fact, for every dollar of taxable sales, the state receives six and one quarter cents (or 6.25%) In the State of Texas local municipalities have the option to adopt up to an additional two cents (or 2%) for local use for a total maximum combined rate of 8.25%. This local tax must be in accordance with state law and be utilized for specific purposes as identified by the state’s local government code. Property Tax Reduction Tax – This tax represents a 1/2 cent sales tax levy used to reduce the property tax burden on local residents and businesses by providing Westlake with an additional unrestricted revenue source. 4B Economic Development Fund – This fund utilizes the revenues generated from a ½ cent sales tax to fund qualified development projects. Currently, the 4B Fund is committed to the repayment of the debt incurred for the construction of Westlake Academy. General Fund Allocation – The Town levies 1% in sales tax that is utilized to offset expenditures in the General Fund. Hotel Occupancy Tax In addition to sales and use tax collections, the Town receives a 7% hotel occupancy tax from the Marriott Solana and any future hotels in Westlake. This revenue is recognized in the Visitors Association Fund and is used to help fund a shuttle program for hotel guests as well as other marketing and promotional activities. 2009 2010 2011 2012 estimated 2013 proposed $498 $458 $527 $535 $540 Th o u s a n d s Hotel Occupancy Tax 2009 2010 2011 2012 estimated 2013 proposed $3.66 $3.79 $4.61 $3.80 $3.56 Mi l l i o n s General Sales Tax Page 159 CCOOMMMMUUNNIITTYY PPRROOFFIILLEE 0.1 0.2 0.3 0.4 0.5 0.156840 2013 Ad Valorem Tax Comparison per $100 Trophy Club Southalke Flower Mound Keller Roanoke Colleyville Grapevine Haslet Westlake Property Tax The Town of Westlake instituted a property tax in 2010.  The current adopted rate for FY 2012-2013 is $.15684  Maintenance and operations (M&O) is $0.14197  Debt service or interest & sinking (I&S) is $0.01487 Jurisdictions The Town of Westlake contracts with the Tarrant County Tax Assessor Collector’s Office to collect the Town’s portion of local property tax. There are multiple taxing jurisdictions within Westlake’s boundaries; whether or not a business or residence is required to pay tax to a particular jurisdiction is determined by where they are located within Westlake and the boundaries of the respective t axing jurisdictions. Currently, the following taxing jurisdictions collect property taxes in Westlake:  Independent School Districts; Carroll, Keller and Northwest  Tarrant County; College and Hospital  Denton County and Trophy Club MUD 1 Westlake residents can determine which taxing jurisdictions apply to their property as well as obtain current property tax rate information by conducting a property search on the appropriate appraisal district website: Denton Central Appraisal District or Tarrant Appraisal District. Homestead Exemptions The Westlake Town Council approved a homestead exemption of 20%, which is the maximum amount allowed by the State of Texas. Tax Freeze The Town Council also approved a tax freeze for all residential accounts identified as over 65 by the tax appraisal district. To learn more information about the tax freeze or find out if you qualify, please visit the following websites: Denton Central Appraisal District or Tarrant Appraisal District. Page 160 This page is intentionally blank Page 161 APPENDIX SECTION GGLLOOSSSSAARRYY OOFF TTEERRMMSS Account: A separate financial reporting unit for budgeting, management, or accounting purposes. All budgetary transactions, whether revenue or expenditure, are recorded in accounts. Adopted Budget: The budget as modified and finally approved by the Town Council. The adopted budget is authorized by resolution that sets the legal spending limits for the fiscal year. Accounts Payable: A liability account reflecting amount of open accounts owed to private persons or organizations for goods and services received by a government (but not including amounts due to other funds of the same government or to other governments). Accounts Receivable: An asset account reflecting amounts owed to open accounts from private persons or organizations for goods or services furnished by the government. Accrual Accounting: Recognition of the financial effects of transactions, events, and circumstances in the period(s) when they occur regardless of when the cash is received or paid. Activity: A service performed by a department or division. Allocation: A part of a lump-sum amount, which is designated for expenditure by specific organization units and/or for special purposes, activities, or objects. Amortization: Payment of principal plus interest over a fixed period of time. Appropriation: An authorization made by the legislative body of a government, which permits officials to incur obligations against and to make expenditures of governmental resources. Specific appropriations are usually made at the fund level and are granted for a one-year period. Appropriation Ordinance: The official enactment by the legislative body establishing the legal authority for officials to obligate and expend resources. Assets: Resources owned or held by the Town which has monetary value. Audit: An examination, usually by an official or a private accounting firm retained by the Town Council, of organization financial statements and the utilization of resources. Balance Sheet: The basic financial statement, which discloses the assets, liability, and equities of an entity at a specific date in conformity with General Accepted Accounting Principles. Balanced Budget: A budget adopted by the Town Council and authorized by resolution where the proposed expenditures are equal to or less than the proposed revenues plus fund balances. Basis of Accounting: A term used referring to when revenue, expenditures, expenses, and transfers – and related assets and liabilities – are recognized in the accounts and reported in the Town’s financial statements. Bond: A written promise to pay a specified sum of money, called the face sum of money, called the principal amount, at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. Bond Covenant: A legally enforceable agreement with bondholders that requires the governmental agency selling the bond to meet certain conditions in the repayment of the debt. Page 163 GGLLOOSSSSAARRYY OOFF TTEERRMMSS Bond Ordinance: A law approving the sale of bonds that specifies how proceeds may be spent. Bond Funds: Resources derived from issuance of bonds for financing capital improvements. Budget: The Town's financial plan for a specific fiscal year that contains an estimate of proposed expenditures and the proposed means of financing them. Budget Amendment: A revision of the adopted budget that, when approved by the Council, replaces the original provision. Budget Calendar: Schedule of key dates which the Town follows in the preparation and adoption of the budget. Budget Document: Instrument used by the budget-making authority to present a comprehensive financial plan of operations to the Town Council. Budgetary Control: The control or management of the organization in accordance with an approved budget for the purpose of keeping expenditures within the limitations of available appropriations and revenues. Capital Expenditures: Any major non-recurring expenditure or expenditure for facilities, including additions or major alterations, construction of highways or utility lines, fixed equipment, landscaping or similar expenditures. Cash Basis: A basis of accounting under which transactions are recognized when cash changes hand Certificates of Obligations (CO’s): Similar to general obligation bonds except certificates require no voter approval. Comprehensive Annual Financial Report (CAFR): This report summarizes financial data for the previous fiscal year in a standardized format. Contingency: A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contractual Services: The costs related to services performed for the Town by individuals, businesses, or utilities. Cost: The amount of money or other consideration exchanged for property or services. Cost may be incurred before money is paid; that is, as soon as liability is incurred. Council: The Mayor and five council members collectively acting as the legislative and policymaking body of the town Current Assets: Those assets which are available or can be made readily available to finance current operations or to pay current liabilities. Those assets which will be used up or converted into cash within one year. Some examples are cash, temporary investments, and accounts receivable collected within one year. Current Liabilities: Debt or other legal obligation arising out of transactions in the past which must be liquidated, renewed, or refunded within one year. Debt Service Fund: A fund used to account for the moneys set aside for the payment of interest and principal to holders of the Town's general obligation and revenue bonds, the sale of which finances long-term capital improvements, such as facilities, streets and drainage, parks and water/wastewater systems. Deficit: The excess of expenditures over revenues during an accounting period; or, in the case of proprietary funds, the excess of expense over income Page 164 GGLLOOSSSSAARRYY OOFF TTEERRMMSS during an accounting period. Department: A major administrative division of the Town that indicates overall management responsibility for an operation or a group of related operations within a functional area. Depreciation: Change in the value of assets (equipment, buildings, etc. with a useful life of 5 years or more) due to the use of the asset. EMS: Emergency Medical Services Encumbrances: The commitment of appropriated funds to purchase an item or service. Enterprise Fund: A fund established to account for operations that are financed and operated in a manner similar to private business enterprises – where the intent of the governing body is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Excess Fund Balance: The excess of a fund’s current assets over its current liabilities and required reserve limits. Exempt: Personnel not eligible to receive overtime pay and who are expected to work whatever hours are necessary to complete their job assignments. Expenditures: Outflow or non-enterprise funds paid or to be paid for an asset obtained or goods and services obtained. Expenses: Outflow of enterprise funds paid or to be paid for an asset obtained or goods and services obtained. Fiscal Policy: The Town’s policies with respond to spending and debt management as they relate to government services, programs, and capital investments. Reflect a set off principals for the planning and programming of government budgets. Fiscal Year: A 12-month period to which the annual operating budget applies and at the end of which a government determines its financial position and the result of its operations. The Town of Westlake’s fiscal year begins each October 1st and ends the following September 30th. Fixed Assets: Assets of a long-term character, which are intended to continue to be held or used, such as land, buildings, improvements other than buildings, machinery, and equipment. Franchise Fee: A fee levied by the Town Council on businesses that use Town property or right-of- way. This fee is usually charged as a percentage of gross receipts. Full-Time Equivalent (FTE): The measure of authorized personnel often referred to as worker-years. The full time equivalent of 1 person (1 FTE) approximately represents 2080 hours of work per year. Fund: A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Fund Accounting: A governmental accounting system that is organized and operated on a fund basis. Fund Balance: The excess of a fund's current assets over its current liabilities, sometimes called working Page 165 GGLLOOSSSSAARRYY OOFF TTEERRMMSS capital or fund equity. A negative fund balance is often referred to as a deficit. GAAP-Generally Accepted Accounting Principles: Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. GAAP encompass the conventions, rules and procedures necessary to define accepted accounting practice at a particular time. They include not only broad guidelines of general applications, but also detailed practices and procedures. GAAP provide a standard by which to measure financial presentations. GASB: Acronym for Government Accounting Standards Board, an independent, non-profit agency responsible for the promulgation of accounting and financial reporting procedures for governmental entities. GFOA: Government Finance Officers Association of the United States and Canada General Fund: The fund used to account for all financial resources except those required to be accounted for in another fund. The General Fund is tax supported. General Obligation Bonds: Bonds sold and guaranteed by the Town, in which the full faith and credit of the Town is pledged for repayment. Governmental Funds: The funds through which most governmental functions typically are financed. The acquisition, use, and financial resources and the related current liabilities are accounted for through governmental funds (General, Special Revenue, Capital Projects, and Debt Service Funds). Goal: Generalized statements of where an organization desires to be at some future time with regard to certain operating elements (e.g. financial condition, service levels provided, etc.) Grant: A contribution by a government or other organization to support a particular function. Typically, these contributions are made to local governments from state or federal governments. Infrastructure: Basic public investments such as streets, storm drainage, water and sewer lines, streetlights and sidewalks. Inter-fund transfer: The transfer of money from one fund to another. Investments: Securities and real estate held for the production of revenues in the form of interest, dividends, rentals, or lease payments. L.F. (Linear feet): Length in feet. Lift Station: The Town’s collection system relies on gravity to collect water. When the system gets to an unreasonable depth, a lift station pumps the water to a higher elevation so the gravity process can begin again. Line-item budget: A budget format in which departmental outlays are grouped according to the items that will be purchased. MGD: Million gallons per day. Maintenance: The upkeep of physical properties in condition for use or occupancy. Examples are the inspection of equipment to detect defects and the making of repairs. Modified Accrual Accounting: This method of accounting is a combination of cash and accrual accounting since expenditures are immediately incurred as a Page 166 GGLLOOSSSSAARRYY OOFF TTEERRMMSS liability while revenues are not recorded until they are actually received or are “Measurable” and “available for expenditure”. This type of accounting basis is conservative and is recommended as the standard for most government funds. Municipal: Of or pertaining to a Town or its government. Non-departmental: Accounts for expenditures or professional services and other general government functions, which cannot be allocated to individual departments. Non-exempt: Personnel eligible to receive overtime pay when overtime work has been authorized or requested by the supervisor. Object Code: The standard classification of the expenditures such as office supplies or rental of equipment. Objectives: Specific, measurable targets set in relation to goals. Operating Budget: Plan for current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending, and service delivery activities of the Town are controlled. The use of annual operating budgets is required by State law. Operating Expenditure: Expenditure on an existing item of property or equipment that is not a capital expenditure. Ordinance: An authoritative command or order. This term is used for laws adopted by a municipality. Performance Measures: Specific quantitative measures of work performed within an activity or program. They may also measure results obtained through an activity or program. Personnel Services: Expenditures for salaries, wages and related fringe benefits of Town employees. Prompt Payment Act: Adopted in July, 1985 by the State, the Act requires the Town to pay for goods and services within 30 days of receipt of invoice or the goods or services, whichever comes later. If this is not satisfied, the Town may be charged interest on the unpaid balance at the rate of 1% per month. Property Tax Reduction Sales Tax (PTR): ½ cent sales tax approved by the Town of Westlake voters in May, 2006. Texas law allowed the Town to collect the new ½ cent sales tax that does not share the restrictive spending limitations on revenues designated to the 4A Economic Development Fund ½ cent sales tax. 4A sales tax was dissolved and replaced with this sales tax. Proposed Budget: The financial plan initially developed by departments and presented by the Town Manger to the Town Council for approval. Proprietary Funds: Operation that operates like a private operation, in which services are financed through user charges and expenditures include the full cost of operations. Public Hearing: An open meeting regarding proposed operating or capital budget allocations, which provide citizens with an opportunity to voice their views on the merits of the proposals. PVC: Acronym for polyvinyl chloride, a plastic compound used for water and sewer pipes. Reserve: An account used to indicate that a portion of fund resources is restricted for a specific Page 167 GGLLOOSSSSAARRYY OOFF TTEERRMMSS purpose, or is not available for appropriation and subsequent spending. Resolution: A formal statement of opinion or determination adopted by an assembly or other formal group. Resources: Total dollars available for appropriations, including estimated revenues, fund transfers, and beginning fund balances. Retained Earnings: The excess of total assets over total liabilities for an enterprise fund. Retained earnings include both short-term and long-term assets and liabilities for an enterprise fund. Revenues: Funds that the government receives as income. It includes such items a tax payment, fees from specific services, receipts from other governments, fines for forfeitures, grants, shared revenues and interest income. ROW: Acronym for right-of- way. Sales Tax: A general “sales tax” is levied on persons and businesses selling merchandise or services in the town limits on a retail basis. The categories for taxation are defined by state law. Monies collected under authorization of this tax are for the use and benefit of the town. SCADA: Acronym that stands for Supervisory Control and Data Acquisition. SCADA refers to a system that collects data from various sensors at a remote location and then sends this data to a central computer which then manages and controls the data. Special Revenue Fund: A fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Supplies: A cost category for minor items (individually priced at less than $5,000) required by departments to conduct their operations. TMRS: Acronym for the Texas Municipal Retirement System, a pension plan for employees of member cities within the State of Texas. TRA: Trinity River Authority – A separate governmental entity responsible for providing water and wastewater services in the Trinity River basin. The Town contracts with TRA for treatment of wastewater. TXDOT: Texas Department of Transportation Transfer-In: Funds expended in one fund and received in other. User Charges: The payment of a fee for direct receipt of a public service by the party benefiting from the service. Working Capital: Budgeted working capital is calculated as a fund’s current assets less current liabilities and outstanding encumbrances. Working capital does not include long-term assets or liabilities. For budgetary purposes, working capital, rather than retained earnings, is generally used to reflect the available resources of enterprise funds. Page 168 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS MUNICIPAL OPERATIONS I. STATEMENT OF PURPOSE The overall intent of the following Fiscal and Budgetary Policy Statements is to enable the Town to achieve a long-term stable and positive financial condition. The watchwords of the Town’s financial management include integrity, pruden ce, stewardship, planning, accountability, and full disclosure. The more specific purpose is to provide guidelines to the Town Manager and Finance Director in planning and directing the Town’s day-to-day financial affairs and in developing recommendations to the Town Manger and Town Council. The scope of these policies generally span, among other issues, accounting, purchasing, auditing, financial reporting, internal controls, operating and capital budgeting, revenue management, cash and investment management, expenditure control, asset management, debt management, and planning concepts, in order to: A. Present fairly and with full disclosure the financial position and results of the financial operations of the Town in conformity with generally accepted accounting principles (GAAP), and B. Determine and demonstrate compliance with finance related legal and contractual issues in accordance with provisions of the Texas Local Government Code and other pertinent legal documents and mandates. The Town Council will annually review and approve the Fiscal and Budgetary Policy Statements as part of the budget process. II. SUMMARY OF POLICY INTENDED OUTCOMES This policy framework mandates pursuit of the following fiscal objectives: A. Operating Budget: Prepare, conservatively estimate revenues, present, and adopt the Town’s annual operating plan. B. Revenues Management: Design, maintain, and administer a revenue system that will assure a reliable, equitable, diversified, and sufficient revenue stream to support desired Town services. C. Expenditure Control: Identify priority services, establish appropriate service levels, and administer the expenditure of available resources to assure fiscal stability and the effective and efficient delivery of services. D. Fund Balance/Retained Earnings: Maintain the fund balance and retained earnings of the various operating funds at levels sufficient to protect the Town’s creditworthiness as well as its financial position from emergencies. E. Debt Management: Establish guidelines for debt financing that will provide needed capital equipment and infrastructure improvements while minimizing the impact of debt payments on current revenues. Page 169 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS F. Intergovernmental Relationships: Where feasible, coordinate efforts with other governmental agencies to achieve common policy objectives, share the cost of providing governmental services on an equitable basis and support favorable legislation at the State and Federal level. G. Grants: Seek, apply for and effectively administer within this policy’s guidelines, Federal, State, and foundation grants-in-aid which address the Town’s current priorities and policy objectives. H. Economic Development: Initiate where feasible, encourage, and participate in economic development efforts to create job opportunities and strengthen the local tax base and economy I. Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the Town’s financial performance and economic condition. J. Financial Consultants: With available resources, seek out and employ the assistance of qualified financial advisors and consultants in the management and administration of the Town’s financial functions. K. Accounting, Auditing, and Financial Reporting: Comply with prevailing Federal, State and local statues and regulations. Conform to generally accepted accounting principles as promulgated by the Government Accounting Standards Board (GASB), the American Institute of Certified Public Accountants (AICPA), and the Government Finance Officers Association (GFOA). L. Capital Improvement Plan/Budget and Program: Multi-year planning, forecasting, preparation, and control of the Town’s capital improvement plan/budget. M. Capital Maintenance and Replacement: Annually review and monitor the state of the Town’s capital equipment and infrastructure, setting priorities for its replacement and renovation based on needs, finding alternatives, and availability of resources. N. Internal Controls: To establish and maintain an internal control structure designed to provide reasonable assurances that the Town’s assets are safeguarded and that the possibilities for material errors in the Town’s financial records are minimized. III. OPERATING BUDGET A. Preparation - Budgeting is an essential element of the financial planning, control and evaluation process of municipal government. The “operating budget” is the Town’s annual financial operating plan. The budget includes all of the operating departments of the Town, the debt service fund, all capital projects funds, and the internal service funds of the Town. The proposed budget will be prepared with the cooperation of all Town departments, and is submitted to the Town Manager who makes any necessary changes and transmits the document to the Town Council. A budget preparation calendar and timetable will be established and followed in accordance with State law. B. Revenue Estimates for Budgeting - In order to maintain a stable level of services, the Town shall use a conservative, objective, and analytical approach when preparing revenue estimates. The process shall include analysis of probable economic changes Page 170 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS and their impacts on revenues, historical collection rates, and trends in revenues. This approach should reduce the likelihood of actual revenues falling short of budget estimates during the year and should avoid mid-year service reductions. C. Balanced Budget - As per State Law, current operating revenues, including Property Tax Reduction Sales Tax transfers (which can be used for operations), will be sufficient to support current operating expenditures. Annually recurring revenue will not be less than annually recurring operating budget expenditures (operating budget minus capital outlay). Debt or bond financing will not be used to finance current expenditures. D. Proposed Budget Process - a proposed budget shall be prepared by the Town Manager with the participation of all of the Town’s department directors.  The proposed budget shall include four basic segments for review and evaluation: (1) personnel costs, (2) base budget for operations and maintenance costs, (3) service level adjustments for increases of existing service levels or additional services, and (4) revenues.  The proposed budget review process shall include Council participation in the review of each of the four segments of the proposed budget and a public hearing to allow for citizen participation in the budget preparation.  The proposed budget process shall allow sufficient time to provide review, as well as address policy and fiscal issues, by the Town Council.  A copy of the proposed budget shall be filed with the Town Secretary when it is submitted to the Town Council as well as placed on the Town’s website. E. Budget Adoption - Upon the determination and presentation of the final iteration of the proposed budget as established by the Council, a public hearing date and time will be set and publicized. The Council will subsequently consider a resolution which, if adopted, such budget becomes the Town’s Approved Annual Budget. The adopted budget will be effective for the fiscal year beginning October 1. The approved budget will be placed on the Town’s web site. F. Budget Award - Each year the Council approved operating budget will be submitted annually to the Government Finance Officers Association (GFOA) for evaluation and consideration for the Award for Distinguished Budget Presentation. G. Budget Amendments - Department Directors are responsible for monitoring their respective department budgets. The Finance Department will monitor all financial operations. The budget team will decide whether to proceed with a budget amendment and, if so, will then present the request to the Town Council. If the Council decides a budget amendment is necessary, the amendment is adopted in resolution format and the necessary budgetary changes are then made. H. Central Control - Modifications within the operating categories (salaries, supplies, maintenance, services, capital, etc.) can be made with the approval of the Town Manager. Modifications to reserve categories and interdepartmental budget totals will be made only by Town Council consent with formal briefing and Council action. I. Planning - The budget process will be coordinated so as to identify major policy issues for Town Council by integrating it into the Council’s overall strategic planning process for the Town. Each department shall have a multi-year business plan that integrates with the Town’s overall strategic plan. Page 171 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS J. Reporting - Monthly financial reports will be prepared by the Finance Department and distributed to and reviewed by each Director. Information obtained from financial reports and other operating reports is to be used by Directors to monitor and control departmental budget. Summary financial reports will be presented to the Town Council quarterly. K. Performance Measures & Productivity Indicators - Where appropriate, performance measures and productivity indicators will be used as guidelines to measure efficiency, effectiveness, and outcomes of Town services. This information will be included in the annual budget process as needed. L. Contingent Appropriation - During the budget process, staff will attempt to establish an adequate contingent appropriation in each of the operating funds. The expenditure for this appropriation shall be made only in cases of emergency, and a detailed account shall be recorded and reported. The proceeds shall be disbursed only by transfer to departmental appropriation. All transfers from the contingent appropriation will be evaluated using the following criteria:  Is the request of such an emergency nature that it must be made immediately?  Why was the item not budgeted in the normal budget process?  Why can’t the transfer be made within the department? IV. REVENUES MANAGEMENT A. REVENUE DESIGN PARAMETER. The Town will pursue the following optimum characteristics in its revenue system:  Simplicity - The Town, where possible and without sacrificing accuracy, will strive to keep the revenue system simple in order to reduce costs, achieve transparency, and increase citizen understanding of Town revenue sources.  Certainty - A knowledge and understanding of revenue sources reliability increases the viability of the revenue system. The Town will understand, to the best of its ability, all aspects of its revenue sources and their performance, as well as enact consistent collection policies to provide assurances that the revenue base will materialize according to budgets, forecasts, and plans.  Equity - The Town shall make every effort to maintain equity in its revenue system: i.e. the Town shall seek to minimize or eliminate all forms of subsidization between entities, funds, services utilities, and customer classes within a utility.  Administration - The benefits of a revenue source will not exceed the cost of collecting that revenue. Every effort will be made for the cost of collection to be reviewed annually for cost effectiveness as a part of the Town’s indirect cost and cost of service analysis.  Adequacy, Diversification and Stability - The Town shall attempt, in as much as is practical, to achieve a balance in its revenue system. The Town shall also strive to maintain a balanced and diversified revenue system to protect the Town from fluctuations in any one source due to changes in local economic conditions which adversely impact that revenue source. B. OTHER CONSIDERATIONS. The following considerations and issues will guide the Town in its revenue policies concerning specific sources of funds: Page 172 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS  Cost/Benefit of Incentives for Economic Development - The Town will use due caution in the analysis of any tax or fee incentives that are being considered to encourage economic development. A cost/benefit (fiscal impact) analysis will be performed as a part of the evaluation for each proposed economic development project.  Non-Recurring Revenues - One-time or non-recurring revenues will not be used to finance on-going operational costs. Non-recurring revenues will be used only for one- time expenditures such as long-lived capital needs or one-time major maintenance projects that occur infrequently. Non-recurring revenues will not be used for budget balancing purposes except to cover the one-time expenditures described above.  Investment Income - Earnings from investment of available monies, whether pooled or not, will be distributed to the funds in accordance with the equity balance of the fund from which monies were provided to be invested.  Property Tax Revenues - The Town shall endeavor to avoid a property tax by revenue diversification, implementation of user fees, and economic development. C. USER-BASED (DEMAND DRIVEN) FEES AND SERVICE CHARGES. For services that are demand driven and can be associated with a user fee or charge, the direct and indirect costs of that service will be offset by a fee where possible. The Town staff will endeavor to prepare a review of all fees and charges annually, but not less than once every three years, in order to ensure that these fees provide for, at minimum, full cost recovery of service. D. ENTERPRISE FUND RATES. Utility rates and rate structures for water and sewer services will be constructed to target full cost of service recovery. Annually the Town will review and adopt water and sewer utility rates and a rate structure that generates revenue sufficient to fully cover operating expenses, meet the legal restrictions of all applicable bond covenants, provide for an adequate level of working capital, and recover applicable general/administrative costs. The Solid Waste function will have rates that fully recover all costs and maintain an adequate balance. The Cemetery Fund will be structured to operate on lot sales and endowments.  General and Administrative (G&A) Charges – Where feasible, G&A costs will be charged to all funds for services of indirect general overhead costs, which may include general administration, finance, customer billing, facility use, personnel, technology, engineering, legal counsel, and other costs as deemed appropriate. These charges will be determined through an indirect cost allocation study following accepted practices and procedures. E. INTERGOVERNMENTAL REVENUES. As a general rule, intergovernmental revenues (grants) will not be utilized for on-going operating costs. Any potential grant opportunity will be examined to identify all costs related to matching and continuation of program requirements. Staff will focus on one-time grants to avoid long-term implications. If it is determined that accepting a grant with on-going cost conditions is in the interests of the Town, all the operating and maintenance costs must be included in the financial forecast and their ultimate effect on operations and revenue requirements be known. F. REVENUE MONITORING. Revenues as they are received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. Page 173 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS G. SPECIAL REVENUE / EDUCATIONAL FUNDS. Where feasible and practical, General and Administrative Charges (G&A) for special revenue and educational funds of the Town of Westlake will be determined on an annual basis and transfers will be made where sufficient revenue exists to cover the associated expenditures. V. EXPENDITURE CONTROL A. Appropriations – The point of budgetary control is at the department level in the General Fund and at the fund level in all other funds. When budget adjustments among Departments and/or funds are necessary, they must be approved by the Town Council. B. Current Funding Basis - The Town shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.) C. Avoidance of Operating Deficits - The Town shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue re-estimates are such that an operating deficit (i.e., projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions can include a hiring freeze, expenditure reductions, fee increases, or use of fund balance within the Fund. D. Balance/Retained Earnings Policy- Expenditure deferrals into the following fiscal year, short- term loans, or use of one-time revenue sources shall be avoided to balance the budget. E. Maintenance of Capital Assets - Within the resources available each fiscal year, the Town shall maintain capital assets and infrastructure at a sufficient level to protect the Town's investment, to minimize future replacement and maintenance costs, and to continue service levels. F. Periodic Program Reviews - The Town Manager shall undertake periodic staff and third- party reviews of Town programs for both efficiency and effectiveness. Privatization and contracting with other governmental agencies will be evaluated as alternative approaches to service delivery. Programs which are determined to be inefficient and/or ineffective shall be reduced in scope or eliminated. G. Salary - The Town shall strive to maintain competitive salary levels for municipal employees. A salary survey will be conducted through a sampling of surrounding and comparable municipal organizations to create a comparison. The Town will strive to maintain salary levels within three percent (3%) of the median of surveyed benchmark municipalities. H. Purchasing - The Town shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also use competitive bidding in accordance to State law, as well as intergovernmental partnerships and purchasing cooperatives to attain the best possible price on goods and services. I. Prompt Payment - All invoices will be paid within 30 days of receipt in accordance with the prompt payment requirements of State law. Page 174 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS VI. FUND BALANCE/RETAINED EARNINGS A. General Fund Undesignated Fund Balance - The Town shall strive to maintain the General Fund undesignated fund balance at, or in excess of, 90 days of operation. B. Retained Earnings of Other Operating Funds - In the Utility Fund, the Town shall strive to maintain positive retained earnings positions to provide sufficient reserves for emergencies and revenue shortfalls. C Use of Fund Balance - Fund Balance will be targeted to only be used with Council approval and can be only be used for the following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture, fixtures and equipment), or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, recommendations will be made on how to restore it. The Council shall approve all commitments by formal action. The action to commit funds must occur prior to fiscal year- end, to report such commitments in the balance sheet of the respective period, even though the amount may be determined subsequent to fiscal year-end. A commitment can only be modified or removed by the same formal action. The Council delegates the responsibility to assign funds to the Town Manager or his/her designee. The Council shall have the authority to assign any amount of funds. Assignments may occur subsequent to fiscal year-end. The Council will utilize funds in the following spending order: Restricted, Committed, Assigned, Unassigned VII. DEBT MANAGEMENT A. Debt Issuance Analysis - All consideration of debt issuance for major capital assets will be prepared within the framework of a Council approved multi-year capital improvement plan and forecast for all Town facilities and infrastructure. B. Analysis of Debt Issuance and Debt Issuance Alternatives - Staff will explore alternatives to the issuance of debt for capital acquisitions and construction projects. These alternatives will include, but not be limited to, (1) grants- in- aid, (2) use of reserves, (3) use of either current on-going general revenues or one-time revenues, (4) contributions from developers and others, (5) leases, (6) user fees, and (7) impact fees. C. Use of Debt Financing - The useful life of the asset or project shall, at a minimum, exceed the payout schedule of any debt the Town assumes. Debt financing instruments to be considered by the Town may include:  General obligation bonds - These must be authorized by a vote of the citizens of Westlake.  Revenue bonds - These bonds generate capital requirements necessary for continuation or expansion of a service which produces revenue and for which the asset may reasonable be expected to provide for a revenue stream to fund the debt service requirement. Page 175 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS  Certificates of obligation - These can be authorized by Council approval with debt service by either general revenues or backed by a specific revenue stream or a combination of both.  Lease/purchase agreements - These shall only be used to purchase capital assets that cannot be financed from either current revenues or fund balance/retained earnings and to fund infrastructure improvements and additions. D. Assumption of Additional Debt - The Town shall not assume more tax-supported general purpose debt than it retires each year without first conducting an objective analysis as to the community's ability to assume and support additional debt service payments. E. Affordability Targets - The Town shall use an objective multi-year analytical approach to determine whether it can afford to assume new general purpose debt beyond what it retires each year. This process shall compare generally accepted standards of affordability to the current values for the Town. The process shall also examine the direct costs and benefits of the proposed expenditures. The decision on whether or not to assume new debt shall be based on these costs and benefits and on the Town's ability to "afford” new debt as determined by the aforementioned standards. The Town shall strive to achieve and/or maintain these standards at a low to moderate classification. F. Debt Structure - The Town shall structure its debt payment schedules for general purpose debt to ensure level principal repayment schedules. The Town shall not assume any debt with "balloon' repayment schedules which consist of low annual payments and one large payment of the balance due at the end of the term. While balloon payment structures minimize the size of debt payments during the period, they force a large funding requirement on the budget of the final year. Given the uncertainties of the future, level payment schedules improve budget planning and financial management. G. Sale Process - The Town shall use a competitive bidding process in the sale of debt unless the nature of the issue warrants a negotiated bid. The Town shall award bonds based on a true interest cost (TIC) basis as long as the financial advisor agrees that the TIC basis can satisfactorily determine the lowest and best bid. H. Bond Rating Agencies Presentations - Full disclosure of operations and open lines of communication shall be made to the bond rating agencies. Town staff, with assistance of financial advisors, shall prepare the necessary materials and presentation to the bond rating agencies. I. Continuing Disclosure - The Town is committed to continuing disclosure of financial and pertinent credit information relevant to the Town's outstanding securities. J. Debt Refunding - Town staff and the financial advisor shall monitor the municipal bond market for opportunities to obtain interest savings by refunding outstanding debt. As a general rule, the present value savings of a particular refunding should exceed 3.5% of the refunded maturities. Page 176 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS VIII. INTERGOVERNMENTAL RELATIONSHIPS The Town will pursue coordinated efforts with other governmental agencies to achieve common policy objectives, share the cost of providing government services on an equitable basis, and support favorable legislation at the State and Federal levels. A. Inter-local Cooperation in Delivering Services - In order to promote the effective and efficient delivery of services, the Town shall actively seek to work with other local jurisdictions in joint purchasing consortia, sharing facilities, sharing equitably the costs of service delivery, and developing joint programs to improve service to its citizens. B. Legislative Program - The Town shall cooperate with other jurisdictions to actively oppose any State or Federal regulation or proposal that mandates additional Town programs or services and does not provide the funding to implement them. Conversely, as appropriate, the Town shall support legislative initiatives that provide more funds for priority local programs. IX. GRANTS A. Grant Guidelines - The Town shall apply, and facilitate the application by others, for only those grants that are consistent with the objectives and high priority needs previously identified above in these policies. The potential for incurring on-going costs, to include the assumption of support for grant funded positions from local revenues, will be considered prior to applying for a grant. B. Grant Review - All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet the Town's policy objectives. If there are cash match requirements, the source of funding shall be identified prior to application. Staff will focus on one-time grants to avoid long-term implications related to additional expenditures in future years. C. Grant Program Termination - The Town shall terminate grant funded programs and associated positions when grant funds are no longer available unless alternate funding is identified. X. ECONOMIC DEVELOPMENT A. Positive Business Environment - The Town shall endeavor, through its regulatory and administrative functions, to provide a positive business environment in which local businesses can grow, flourish and create jobs. The Town Council and Town staff will be sensitive to the needs, concerns and issues facing local businesses. B. Commitment to Business Expansion, Diversification, and Job Creation - The Town shall encourage and participate in economic development efforts to expand Westlake's economy to increase local employment. These efforts shall not only focus on newly developing areas but also on other established sections of Westlake where development can generate additional jobs and other economic benefits. Page 177 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS C. Coordinate Efforts with Other Jurisdictions - The Town's economic development program shall encourage close cooperation with other local jurisdictions, chambers of commerce, and groups Interested in promoting the economic well-being of this area. D. Cost/Benefit of Incentives for Economic Development - The Town will use due caution in the analysis of any tax or fee incentives that are used to encourage economic development. A cost/benefit (fiscal impact) analysis will be performed as part of such evaluation for each prospect. Economic development agreements will contain performance language as to the business’s proposed economic impact to Westlake in exchange for Town incentives with adequate “claw-back” provisions for the Town. XI. FISCAL MONITORING A. Financial Status and Performance Reports - Quarterly reports comparing expenditures and revenues to current budget, projecting expenditures and revenues through the end of the year, noting the status of fund balances to include dollar amounts and percentages, and outlining any remedial actions necessary to maintain the Town's financial position shall be prepared for review by the Town Manager and the Council. B. Compliance with Council Policy Statements - The Fiscal and Budgetary Policies will be reviewed annually by the Council and updated, revised or refined as deemed necessary. Policy statements adopted by the Council are guidelines, and occasionally, exceptions may be appropriate and required. However, exceptions to stated policies will be specifically identified, and the need for the exception will be documented and fully explained. XII. FINANCIAL CONSULTANTS To employ the assistance of qualified financial advisors and consultants as needed in the management and administration of the Town's financial functions. These areas include but are not limited to investments, debt administration, financial accounting systems, program evaluation, and financial impact modeling. Advisors shall be selected on a competitive basis using objective questionnaires and requests for proposals based on the scope of the work to be performed. XIII. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING To comply with prevailing local, state, and federal regulations relative to accounting, auditing, and financial reporting. Accounting practices and financial reporting shall conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Accountants, (AICPA), and the Government Finance Officers Association (GFOA). The Board shall select an independent firm of certified public accountants to perform an annual audit of all operations A. Accounting – The Town is solely responsible for the recording and reporting of its financial affairs, both internally and externally. The Town’s Finance Director is responsible for establishing the structure for the Town’s chart of accounts and for assuring that procedures are in place to properly record financial transactions and report the Town’s financial position. Page 178 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS B. External Auditing - Town will be audited annually by outside independent accountants (auditors). The auditors must be a CPA firm and must demonstrate significant experience in the field of local government auditing. They must conduct the town’s audit in accordance with generally accepted auditing standards and be knowledgeable in the Government Finance Officers Association Certificate of Achievement program. The auditors’ report on Town’s financial statements will be completed within a timely period of the Town’s fiscal year-end. The auditor will jointly review the management letter with the Town Council, if necessary. In conjunction with this review, the Finance Director shall respond in writing to the Town Council regarding the auditor’s Management Letter, addressing the issued contained therein. The Town will not require auditor rotation, but will circulate request for proposal for audit services on a periodic basis as deemed appropriate. C. External Financial Reporting - Town will prepare and publish a comprehensive annual financial report (CAFR). The CAFR will be prepared in accordance with generally accepted accounting principles and will be presented annually to the Government Finance Officers Association (GFOA) for evaluation and awarding of the Certificate of Achievement for Excellence in Financial Reporting. D. Responsibility of Auditor to Town Council – The auditor is retained by and it accountable directly to the Town Council and will have access to direct communication with the Town Council if the Town Staff is unresponsive to auditor recommendations or if the auditor considers such communication necessary to fulfill its legal and professional responsibilities. E. Internal Financial Reporting - The Finance Department will prepare internal financial reports sufficient for management to plan, monitor, and control Town’s financial affairs. XIV. CAPITAL BUDGET AND PROGRAM A. Preparation - The Town’s capital budget will include all capital projects funds and all capital resources. While the capital budget will be prepared annually on a project basis, it will be based on an on-going, multi-year capital improvement plan (CIP) that shows all funded and unfunded projects as identified by staff for all Town facilities and infrastructure. The multi-year CIP will be reviewed annually, updated by staff and presented to the Council for its review and approval. The annual capital budget will be prepared by the Finance Department with the involvement of responsible departments based on the multi- year CIP. B. Control - All capital project expenditures must be appropriated in the capital budget. The Finance Director must certify the availability of resources before any capital project contract is presented to the Town Council for approval. C. Program Planning - The capital budget will be taken from the capital improvements project plan for future years. The planning time frame for the capital improvements project plan should normally be five years, with a minimum of at least three years. The replacement and maintenance for capital items should also be projected for the next five years. Future maintenance and operational costs will be considered so that these costs can be included as appropriate in the annual budget. Page 179 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS D. Financing Programs - Where applicable and with Council approval, impact fees, pro-rata charges, assessments, or other fees should be used to fund capital projects which have a primary benefit to specific, identifiable property owners.  Recognizing that long-term debt is usually a more expensive financing method, alternative financing sources will be explored before debt is issued. When debt is issued, it will be used to acquire major assets with expected lives which equal or exceed the average life of the debt issue. E. Reporting - Periodic financial reports will be prepared to enable the department directors to manage their capital budgets. Summary capital project status reports will be presented to the Town Council quarterly. XV. CAPITAL MAINTENANCE AND REPLACEMENT The Town recognizes that deferred maintenance and not anticipating capital replacement needs increases future capital costs. Annually, available funds will be evaluated during the budget process and a percentage of each operating fund’s budget will be recommended to the Council for transfer. Upon approval by the Council, the recommended amount will be transferred to the appropriate funds (General or Utility Maintenance Replacement Fund) for major maintenance/ replacement of street, building roof, flooring, air conditioning, equipment, etc. XVI. INTERNAL CONTROLS A. Written Procedures - Whenever possible, written procedures will be established and maintained by the Finance Director for all functions involving purchasing, cash handling and/or accounting throughout the Town. These procedures will embrace the general concepts of fiscal responsibility set for in this policy statement. B. Department Directors’ Responsibilities - Each department director is responsible for ensuring that good internal controls are followed throughout his/her department, that all directives or internal controls are implemented, and that all independent auditor internal control recommendations are addressed. Departments will develop and periodically update written internal control procedures. XVII. ASSET MANAGEMENT A. Investments – The Finance Director shall promptly invest all Town funds with the depository bank in accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument authorized by the Town Council. Further, investments shall be made in accordance with the Investment Policy approved by the Town Council for the Town of Westlake that meets the requirements of the Public Funds Investment Act (PFIA), Section 2256 of the Texas Local Government Code. The Finance Director will issue quarterly reports on investment activity to the Town Council. B. Cash Management - Town’s cash flow will be managed to maximize the cash available to invest. Such cash management will entail the centralization of cash collections, where feasibility, including utility bills, building and related permits and license, fines, fees, and other collection offices as appropriate. Periodic review of cash flow position will be performed to determine performance of cash management and conformance to Page 180 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS investment policies. The underlying theme will be that idle cash will be invested with the intent to (1) safeguard assets, (2) maintain liquidity, and (3) maximize return. C. Fixed Assets and Inventory - Such assets will be reasonably safeguarded and properly accounted for and prudently insured. The fixed asset inventory will be updated regularly. D. Capitalization Criteria – For purposes of budgeting and accounting classification, the following criteria must be capitalized:  The asset is owned by the Town of Westlake  The expected useful life of the asset must be longer than one year, or extend the life on an identifiable existing asset by more than one year  The original cost of the asset must be at least $5,000  The asset must be tangible  On-going repairs and general maintenance are not capitalized  New Purchases – All costs associated with bringing the asset into working order will be capitalized as part of the asset cost. This includes start up costs, engineering or consultant type fees as part of the asset cost once the decision or commitment to purchase the asset is made. The cost of land acquired should include all related costs associated with its purchase  Improvements and Replacement – Improvement will be capitalized when they extend the original life of an asset or when they make the asset more valuable than it was originally. The replacement of assets components will normally be expenses unless they are a significant nature and meet all the capitalization criteria. E. Computer System/Data Security – The Town shall provide security of its computer/network system and data files through physical and logical security systems that will include, but are not limited to: network user authentications, firewalls, content filtering, spam/virus protection, and redundant data backup. ACADEMIC OPERATIONS I. STATEMENT OF PURPOSE The broader intent of the following Fiscal and Budgetary Policy Statements is to enable the Academy to achieve a long-term stable and positive financial condition. The watchwords of the Academy’s financial management include integrity, prudent, stewardship, planning, accountability, and full disclosure. The more specific purpose is to provide guidelines to the Finance Director in planning and directing the Academy’s day-to-day financial affairs and in developing recommendations to the Academy Superintendent or his designate and Academy Board of Trustees. The scope of these policies generally span, among other issues, accounting, purchasing, auditing, financial reporting, internal controls, operating budgeting, revenue management, cash and investment management, expenditure control, asset management, debt management, and planning concepts, in order to:  Present fairly and with full disclosure the financial position and results of the financial operations of the Academy in conformity with generally accepted accounting principles (GAAP), and Page 181 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS  Determine and demonstrate compliance with finance related legal and contractual issues in accordance with provisions of the Texas Local Government Code and other pertinent legal documents and mandates. The Academy Board of Trustees will annually review and approve the Fiscal and Budgetary Policy Statements as part of the budget process. II. SUMMARY OF POLICY INTENDED OUTCOMES This policy framework mandates pursuit of the following fiscal objectives: Operating Budget: Prepare conservatively, estimate revenues, present and adopt the Academy’s annual operating plan. Revenues Management: Design, maintain and administer a revenue system that will assure a reliable, equitable, diversified and sufficient revenue stream to support desired Academy services. Expenditure Control: Identify priority services, establish appropriate service levels and administer the expenditure of available resources necessary to assure fiscal stability and the effective and efficient delivery of services. Fund Balance: Maintain the fund balance of the various operating funds at levels sufficient to protect the Academy’s creditworthiness as well as its financial position from emergencies. Intergovernmental Relationships: Coordinate efforts with other agencies to achieve common policy objectives, share the cost of providing governmental services on an equitable basis and support favorable legislation at the State and Federal level. Grants: Seek, apply for and effectively administer Federal, State, and foundation grants-in-aid which address the Academy’s current priorities and policy objectives. Fiscal Monitoring: Prepare and present regular reports that analyze, evaluate, and forecast the Academy’s financial performance and economic condition. Financial Consultants: With available resources, seek out and employ the assistance of qualified financial advisors and consultants in the management and administration of the Academy’s financial functions. Accounting, Auditing, and Financial Reporting: Comply with prevailing Federal, State and local statues and regulations. Conform to generally accepted accounting principles as promulgated by the Government Accounting Standards Board (GASB), the American Institute of Certified Public Accountants (AICPA), and the Government Finance Officers Association (GFOA). Internal Controls: To establish and maintain an internal control structure designed to provide reasonable assurances that the Academy’s assets are safeguarded and that the possibilities for material errors in the Academy’s financial records are minimized. Page 182 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS III. OPERATING BUDGET PREPARATION – BUDGETING IS AN ESSENTIAL ELEMENT OF THE FINANCIAL PLANNING, CONTROL, AND EVALUATION PROCESS. THE “OPERATING BUDGET” IS THE ACADEMY’S ANNUAL FINANCIAL OPERATING PLAN RELATED TO EDUCATIONAL SERVICE INSTRUCTIONAL COSTS. The Academy operating budget is legally required to include the Academy’s General, Debt Service, and Food Service Funds. Currently, Westlake Academy only has one fund, the General Fund, which must be legally adopted annually. The Academy budgets the Special Revenue Funds for informational purposes only. Information to be prepared includes documentation related to Service Level Adjustments (SLAs) for increases to existing service levels or additional services, position control schedules, general and administrative cost implications, etc. will be submitted and reviewed during the budget process. SLA’s related to new position requests will include an assessment of their impact on additional internal services necessary to support these positions as it relates to General & Administrative (G&A) charges in the Academy budget ( subject to funding availability) to fund these costs. A budget preparation calendar and timetable will be established and followed in accordance with State law. Revenue Estimates for Budgeting - In order to maintain a stable level of services, the Academy shall use a conservative, objective, and analytical approach when preparing revenue estimates. The process shall include analysis of probable economic changes and their impacts on revenues, number of students, and trends in revenues. It will also include an assessment of the State legislative environment related to public charter school funding levels. This approach should reduce the likelihood of actual revenues falling short of budget estimates during the year and should avoid mid- year service reductions. Balanced Budget – A balanced budget is a budget with total expenditures not exceeding total revenues and monies available in the fund balance within an individual fun d. Proposed Budget Content and Process – A proposed budget shall be prepared by the Superintendent or his designate with the participation of the Academy’s Leadership Team, Finance Director and Academy staff, and then submitted to the Superintendent for review. Following the Superintendent’s review, the proposed budget will be presented to the Board for its consideration. The proposed budget shall include five basic segments for review and evaluation: (1) personnel costs, (2) base budget for operations and maintenance costs, (3) service level adjustments for increases of existing service levels or additional services, (4) revenues, and (5) General Administrative (G&A) costs. The proposed budget review process shall include Board of Trustees review of each of the four segments of the proposed budget and a public hearing to allow for citizen participation in the budget preparation process. Page 183 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS Concurrent with the Academy budget preparation, Town staff will identify and provide to the Board all direct Academy expenses contained in the Town’s municipal budget. The proposed budget process shall allow sufficient time to provide review as well as address policy and fiscal issues by the Board of Trustees. A copy of the proposed budget shall be filed with the Town Secretary when it is submitted to the Board of Trustees as well as placed on the Academy’s website. Budget Adoption - Upon the determination and presentation of the final iteration of the proposed budget document as established by the Board of Trustees, a public hearing will be set and publicized. The Board will subsequently consider a resolution which, if adopted, such budget becomes the Academy’s Annual Budget. The adopted budget will be effective for the fiscal year beginning September 1. Budget Amendments – The Superintendent or his designate and Finance Department will monitor all financial operations. A school district must amend the official budget before exceeding a functional expenditure category, i.e., instruction, administration, etc. in the total budget. The budget team will decide whether to proceed with the budget amendment and, if so, will then present the request to the Board of Trustees. If the Board decides a budget amendment is necessary, the amendment is adopted in resolution format and the necessary budgetary changes are then made. Planning – The budget process will be coordinated so as to identify major policy issues for the Board of Trustees by integrating it into the Board’s overall strategic planning process for the Academy. Reporting - Monthly financial reports will be prepared by the Finance Department and distributed to the Superintendent or his designate. Information obtained from financial reports and other operating reports is to be used by personnel to monitor and control the budget. Summary financial reports will be presented to the Board quarterly. IV. REVENUES MANAGEMENT A. REVENUE DESIGN PARAMETERS. The Academy will strive for the following optimum characteristics in its revenue system:  Simplicity - The Academy, where possible and without sacrificing accuracy, will strive to keep the revenue system simple in order to reduce costs, achieve transparency, and increase parent and citizen understanding of Academy revenue sources.  Certainty - A thorough knowledge and understanding of revenue sources increases the reliability of the revenue system.  Administration - The benefits of a revenue source will exceed the cost of administering that revenue. Every effort will be made for the cost of administration to be reviewed annually for cost effectiveness as a part of the indirect cost and cost of service analysis.  Equity - The Academy shall make every effort to maintain equity in its revenue system: i.e. the Academy shall seek to minimize or eliminate all forms of subsidization between entities.  Adequacy, Diversification and Stability – To the extent practical, the Academy shall attempt to achieve a balance in its revenue system. The Academy shall also strive to maintain a balanced and diversified revenue system to protect the Academy from fluctuations in any one source due to changes in local economic conditions which adversely impact that source. Page 184 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS B. REVENUE CLASSIFICANTION AND SOURCES. The revenues received by Westlake Academy are classified into one of three broad categories: Federal, State or Local and come from the following sources :  State Education funding  State and Federal Grants  General Donations – The Academy recognizes that private donations comprise a significant part of the Westlake Academy budget. All funds received will become part of the budget and be subject to appropriation for Academy general operations. o Westlake Academy Foundation o House of Commons o Westlake Academy Athletic Club o Local Merchants  Specific Purpose Donations – Funds donated for a specific purpose C. REVENUE MONITORING. Revenues as they are received will be regularly compared to budgeted revenues and variances will be investigated. This process will be summarized in the appropriate budget report. V. EXPENDITURE CONTROL  Appropriations – The point of budgetary control is at the function level in the General Fund and Special Revenue Funds. When budget adjustments among functions are necessary, they must be approved by the Board of Trustees.  Current Funding Basis - The Academy shall operate on a current funding basis. Expenditures shall be budgeted and controlled so as not to exceed current revenues plus the planned use of fund balance accumulated through prior year savings. (The use of fund balance shall be guided by the Fund Balance/Retained Earnings Policy Statements.)  Avoidance of Operating Deficits - The Academy shall take immediate corrective actions if at any time during the fiscal year expenditure and revenue re-estimates are such that an operating deficit (i.e., projected expenditures in excess of projected revenues) is projected at year-end. Corrective actions can include a hiring freeze, expenditure reductions, or use of fund balance within the Fund. Use of fund balance must be recommended by the Superintendent and approved by the Board of Trustees.  Expenditure deferrals into the following fiscal year, short-term loans, or use of one- time revenue sources shall be avoided to balance the budget.  Periodic Program Reviews - The Superintendent or his designate shall undertake periodic staff and third-party reviews of Academy programs for both efficiency and effectiveness. Where appropriate, privatization and contracting with other governmental agencies will be evaluated as alternative approaches to service delivery. Service delivery which is determined to be inefficient and/or ineffective shall be reduced in scope or eliminated.  General and Administrative (G&A) Charges – To the extent practical, an annual analysis of G&A charges will be performed and funding allocated, if available. The purpose of determining the associated costs for G&A charges is to identify the full operational costs of the entity in question. The analysis shall involve an objective consideration of the service demands currently being met by municipal staff to support Academy operations and a determination of factors that will continue to affect and increase the time needed for the performance of these services. For example, new Academy staff requires additional support staff time to perform tasks related to insurance, payroll, etc. Page 185 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS Where feasible, G&A costs will be charged to all funds for services of indirect general overhead costs, which may include general administration, finance, facility use, personnel, technology, engineering, legal counsel, and other costs as deemed appropriate. If funding is not available, these costs will be shown below the line of the financial statement in the five-year financial forecast in order to promote transparency and provide the Board with a full cost accounting of services. The charges will be determined through an indirect cost allocation study following accepted practices and procedures.  Purchasing - The Academy shall make every effort to maximize any discounts offered by creditors/vendors. Staff shall also use purchasing cooperatives as well as competitive bidding in accordance with State law to attain the best possible price on goods and services.  Prompt Payment - All invoices will be paid within 30 days of receipt in accordance with the prompt payment requirements of State law.  Salary - The Academy shall strive to maintain competitive salary levels for faculty and staff. A salary survey will be conducted annually, sampling surrounding Independent School Districts and Charter Schools, to create a comparison. The Academy will strive to maintain salary levels within three percent (3%) of the median of surveyed schools. (Existing language) VI. FUND BALANCE  Fund Balance Reporting - The District shall report governmental fund balances per GASB 54 definitions in the balance sheet as follows: Nonspendable, Restricted, Committed, Assigned, and Unassigned.  General Fund Unassigned Fund Balance - The Academy shall strive to maintain the General Fund unassigned fund balance at 45 days of operation.  Use of Fund Balance - Fund Balance will be targeted to only be used with Board approval and can be only be used for the following: emergencies, non-recurring expenditures, such as technology/FF&E (furniture, fixtures and equipment), or major capital purchases that cannot be accommodated through current year savings. Should such use reduce the balance below the appropriate level set as the objective for that fund, recommendations will be made on how to restore it. The Board of Trustees shall approve all commitments by formal action. The action to commit funds must occur prior to fiscal year-end, to report such commitments in the balance sheet of the respective period, even though the amount may be determined subsequent to fiscal year-end. A commitment can only be modified or removed by the same formal action. The Board of Trustees delegates the responsibility to assign funds to the Superintendent or his/her designee. The Board of Trustees shall have the authority to assign any amount of funds. Assignments may occur subsequent to fiscal year-end. The Board of Trustees will utilize funds in the following spending order: Restricted, Committed, Assigned, Unassigned VII. INTERGOVERNMENTAL RELATIONSHIPS  Inter-local Cooperation in Delivering Services - In order to promote the effective and efficient delivery of services, the Academy shall actively seek to work with other local entities in joint purchasing consortium, sharing facilities, sharing equitably the costs of service delivery, and developing joint programs to improve service to its students.  Legislative Program - The Academy shall cooperate with other entities to actively oppose any state or federal regulation or proposal that mandates additional Academy programs or Page 186 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS services and does not provide the funding to implement them. Conversely, as appropriate, the Academy shall support legislative initiatives that provide additional funding. VIII. GRANTS  Grant Guidelines - The Academy shall apply, and facilitate the application by others, for only those grants that are consistent with the objectives and high priority needs previously identified by Academy Board of Trustees. The potential for incurring ongoing costs, to include the assumption of support for grant funded positions from local revenues, will be considered prior to applying for a grant.  Grant Review - All grant submittals shall be reviewed for their cash match requirements, their potential impact on the operating budget, and the extent to which they meet the Academy's policy objectives. If there are cash match requirements, the source of fundin g shall be identified prior to application. Staff will focus on one-time grants to avoid long-term implications related to additional expenditures in future years.  Grant Program Termination - The Academy shall terminate grant funded programs and associated positions when grant funds are no longer available unless alternate funding is identified and obtained. IX. FISCAL MONITORING  Financial Status and Performance Reports - Quarterly reports comparing expenditures and revenues to current budget, noting the status of fund balances to include dollar amounts and percentages, and outlining any remedial actions necessary to maintain the Academy's financial position shall be prepared for review by the Superintendent and the Board of Trustees. Student roster information will also be included in the quarter reports submitted to the Board of Trustees.  Compliance with Board Policy Statements - The Fiscal and Budgetary Policies will be reviewed annually by the Board of Trustees and updated, revised or refined as deemed necessary. Policy statements adopted by the Board of Trustees are guidelines, and occasionally, exceptions may be appropriate and required. However, exceptions to stated policies will be specifically identified, and the need for the exception will be documented and fully explained. X. FINANCIAL CONSULTANTS The Academy employs the assistance of qualified financial advisors and consultants as needed in the management and administration of the Academy's financial functions. These areas include but are not limited to investments, debt administration, financial accounting systems, program evaluation, and financial impact modeling. Advisors shall be selected on a competitive basis using objective questionnaires and requests for proposals based on the scope of the work to be performed. XI. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING The Academy strives to comply with prevailing local, state, and federal regulations relative to accounting, auditing, and financial reporting. Accounting practices and financial reporting shall conform to generally accepted accounting principles as promulgated by the Governmental Accounting Standards Board (GASB), the American Institute of Certified Public Page 187 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS Accountants, (AICPA), and the Government Finance Officers Association (GFOA). The Board shall select an independent firm of certified public accountants to perform an annual audit of all operations. Required Texas Education Agency (TEA) account coding will be used for all revenue and expenditure reporting.  Accounting - Currently, the Education Service Center (Region XI) books all revenues and expenditures, and prepares bank reconciliations. Academy staff is responsible for all coding and approval of expenditures and revenues. Documentation and coding of deposits are forwarded to the Town’s Finance Department for review and preparation of deposit slips. Town’s Finance Director and staff are responsible for review and transfer of invoices and other documentation to the Service Center for processing as well as the physical deposit of funds. It is the responsibility of the Superintendent or his designate and Academy staff to review the monthly reports for any discrepancies and report to the Town’s Finance Director for analysis and re-class of questioned bookings, if appropriate.  External Auditing - Academy will be audited annually by outside independent accountants (auditors). The auditors must be a CPA firm and must demonstrate significant experience in the field of local government auditing. They must conduct the Academy’s au dit in accordance with generally accepted auditing standards. The auditors’ report on Academy’s financial statements will be completed within a timely period of the Academy’s fiscal year-end. The auditor will jointly review the management letter with the Academy Board of Trustees, if necessary. In conjunction with this review, the Finance Director shall respond in writing to the Academy Board of Trustees regarding the auditor’s Management Letter, addressing the issued contained therein. The Academy will not require auditor rotation, but will circulate request for proposal for audit services on a periodic basis as deemed appropriate.  Responsibility of Auditor to Academy Board of Trustees - The auditor is retained by and is accountable directly to the Academy Board of Trustees and will have access to direct communication with the Academy Board of Trustees if the Academy Staff is unresponsive to auditor recommendations or if the auditor considers such communication necessary to fulfill its legal and professional responsibilities.  Internal Financial Reporting - The Finance Department will prepare internal financial reports sufficient for management to plan, monitor, and control Academy’s financial affairs. XII. INTERNAL CONTROLS  Written Procedures - Whenever possible, written procedures will be established and maintained by the Finance Director and utilized by all Academy personnel for all functions involving purchasing, cash handling and/or accounting throughout the Academy. These procedures will embrace the general concepts of fiscal responsibility set forth in this policy statement.  Academy Staff Responsibilities - The Superintendent or his designate, in consultation with the Finance Director, will be responsible for ensuring that appropriate internal controls are followed throughout the Academy, that all directives or internal controls are implemented, and that all independent auditor internal control recommendations are addressed. Staff will develop and periodically update written internal control procedures. XIII. ASSET MANAGEMENT  Investments – The Finance Director shall promptly invest all Academy funds with the depository bank in accordance with the provisions of the current Bank Depository Agreement or in any negotiable instrument authorized by the Academy Board of Trustees. The Academy Board of Trustees has formally approved a separate Investment Policy for the Academy of Westlake that meets the requirements of the Public Funds Investment Act Page 188 TTOOWWNN OOFF WWEESSTTLLAAKKEE // WWEESSTTLLAAKKEE AACCAADDEEMMYY FFIISSCCAALL AANNDD BBUUDDGGEETTAARRYY PPOOLLIICCIIEESS (PFIA), Section 2256 of the Texas Local Government Code. The Academy’s investment practices will be conducted in accordance with this policy. The Finance Director will issue quarterly reports on investment activity to the Academy Board of Trustees.  Cash Management - Academy’s cash flow will be managed to maximize the cash available to invest. Such cash management will entail the centralization of cash collections, where feasible, including field trips, and other collection offices as appropriate. Periodic review of cash flow position will be performed to determine performance of cash management and conformance to investment policies. The underlying theme will be that idle cash will be invested with the intent to (1) safeguard assets, (2) maintain liquidity, and (3) maximize return.  Fixed Assets and Inventory - Such assets will be reasonably safeguarded and properly accounted for and prudently insured. The fixed asset inventory will be updated regularly.  Capital Assets – Currently all capital assets of Westlake Academy are owned and purchased by the Town of Westlake. In subsequent years, additional asset purchases may be paid with Westlake Academy funds.  Capitalization Criteria – For purposes of budgeting and accounting classification, the following criteria must be capitalized: o The asset is owned by the Westlake Academy o The expected useful life of the asset must be longer than one year, or extend the life on an identifiable existing asset by more than one year o The original cost of the asset must be at least $5,000 o The asset must be tangible o On-going repairs and general maintenance are not capitalized o New Purchases – All costs associated with bringing the asset into working order will be capitalized as a part of the asset cost. This includes startup costs, engineering or consultant type fees as part of the asset cost once the decision or commitment to purchase the asset is made. The cost of land acquired should include all related costs associated with its purchase o Improvements and Replacement – Improvement will be capitalized when they extend the original life of an asset or when they make the asset more valuable than it was originally. The replacement of assets components will normally be expenses unless they are a significant nature and meet all the capitalization criteria.  Computer System/Data Security – The Academy shall provide security of its computer/network system and data files through physical and logical security systems that will include, but are not limited to: network user authentications, firewalls, content filtering, spam/virus protection, and redundant data backup. Page 189 IINNVVEESSTTMMEENNTT PPOOLLIICCYY I. POLICY STATEMENT It is the policy of the Town of Westlake (the “Town") that the administration of its funds and the investment of those funds shall be handled as its highest public trust. Investments shall be made in a manner which will provide the maximum security of principal invested through limitations and diversification while meeting the daily cash flow needs of the Town and conforming to all applicable state and Town statutes governing the investment of public funds. The receipt of a market rate of return will be secondary to the requirements for safety and liquidity. It is the intent of the Town to be in complete compliance with local law and the Texas Public Funds Investment Act (the "Act", Texas Government Code 2256). The earnings from investments will be used in a manner that best serves the public trust and interests of the Town. II. SCOPE This Investment Policy applies to all the financial assets and funds held of the Town. Any new funds created by the Town will be managed under the provisions of this Policy unless specifically exempted by the Town Council and this Policy. III. OBJECTIVES AND STRATEGY It is the policy of the Town that all funds shall be managed and invested with four primary objectives, listed in order of their priority: safety, liquidity, diversification and yield. These objectives encompass the following.  Safety of Principal - Safety of principal is the foremost objective of the Town. Investments shall be undertaken in a manner that seeks to insure the preservation of capital in the overall portfolio. The suitability of each investment decision will be made on the basis of safety.  Liquidity - TThhee TToowwnn''ss iinnvveessttmmeenntt ppoorrttffoolliioo wwiillll rreemmaaiinn ssuuffffiicciieennttllyy lliiqquuiidd ttoo eennaabbllee iitt ttoo mmeeeett aallll ooppeerraattiinngg rreeqquuiirreemmeennttss wwhhiicchh mmiigghhtt bbee rreeaassoonnaabbllyy aannttiicciippaatteedd.. IInnvveessttmmeenntt ddeecciissiioonnss wwiillll bbee bbaasseedd oonn ccaasshh ffllooww aannaallyyssiiss ooff aannttiicciippaatteedd eexxppeennddiittuurreess..  Diversification - Diversification is required in the portfolio's composition. Diversification of the portfolio will include diversification by maturity and market sector and will include the use of a number of broker/dealers or banks for diversification and market coverage. Competitive bidding will be used on each sale or purchase.  Yield - The Town's investment portfolio shall be designed with the objective of attaining a reasonable market yield, taking into account the Town's risk constraints and cash flow needs. A reasonable market yield for the portfolio will be defined as the six month (180 day) U.S. Treasury Bill which compares to the portfolio's maximum weighted average maturity of six months. The authorized investment purchased will be of the highest credit quality and marketability supporting the objectives of safety and liquidity. Securities, when not matched to a specific liability, will be short term to provide adequate liquidity. The portfolio shall be diversified to protect against market and credit risk in any one sector. Page 190 IINNVVEESSTTMMEENNTT PPOOLLIICCYY The maximum weighted average maturity of the portfolio will be no more that 180 days and the maximum stated maturity of any security will not exceed two years. The funds are combined for investment purposes but the unique needs of all the funds in the portfolio are recognized and represented. Effective cash management is recognized as essential to good fiscal management. Cash management is defined as the process of managing monies in order to ensure maximum cash availability. The Town shall maintain a cash management program which includes timely collection of accounts receivable, prudent investment, disbursement of payments within invoice terms and the management of banking services. IV. LEGAL LIMITATIONS, RESPONSIBILITIES AND AUTHORITY Specific investment parameters for the investment of public funds in Texas are stipulated in the Public Funds Investment Act, Chapter 2256, Texas Government Code, (the "Act"). The Act is attached as Exhibit A. The Public Funds Collateral Act, Chapter 2257, Texas Government Code, specifies collateral requirements for all public funds deposits. The Collateral Act is attached as Exhibit B. The Interlocal Cooperation Act, Chapter 791, Texas Government Code, authorizes local governments in Texas to participate in a Texas investment pool established thereunder. V. DELEGATION OF INVESTMENT AUTHORITY The Finance Director, acting on behalf of the Council, is designated as the Investment Officer of the Town and is responsible for all investment management decisions and activities. The Council is responsible for considering the quality and capability of staff, investment advisors, and consultants involved in investment management and procedures. All participants in the investment process shall seek to act responsibly as custodians of the public trust. The Investment Officer shall develop and maintain written administrative procedures for the operation of the investment program which are consistent with this Investment Policy. Procedures will include safekeeping, wire transfers, banking services contracts, and other investment related activities. The Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and staff. The Investment Officer shall designate a staff person as a liaison/deputy in the event circumstances require timely action and the Investment Officer is not available. No officer or designee may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Investment Officer and approved by the Town Manager. VI. PRUDENCE The standard of prudence to be used in the investment function shall be the "prudent person" standard and shall be applied in the context of managing the overall portfolio. Page 191 IINNVVEESSTTMMEENNTT PPOOLLIICCYY This standard states: "Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the expected income to be derived." Limitation of Personal Liability - The Investment Officer and those delegated investment authority, when acting in accordance with the written procedures and this Policy and in accord with the Prudent Person Rule, shall be relieved of personal liability in the management of the portfolio provided that deviations from expectations for a specific security's credit risk or market price change are reported in a timely manner and that appropriate action is taken to control adverse market effects. VII. INTERNAL CONTROLS The Investment Officer shall establish a system of written internal controls which will be reviewed annually with the independent auditor of the Town. The controls shall be designed to prevent loss of public funds due to fraud, employee error, and misrepresentation by third parties, or imprudent actions by employees of the Town. VIII. AUTHORIZED INVESTMENTS Acceptable investments under this policy shall be limited to the instruments listed below. The choice of high-grade government investments and high-grade, money market instruments are designed to assure the marketability of those investments should liquidity needs arise.  Obligations of the United States Government, its agencies and instrumentalities, not to exceed two (2) years to stated maturity and excluding mortgage backed securities;  Fully insured or collateralized certificates of deposit from a bank doing business in the State of Texas and under the terms of a written depository agreement with that bank, not to exceed one year to stated maturity;  No-load, SEC registered money market mutual funds. No more than 80% of the entity's monthly average balance may be invested in money market funds  Public Funds interest bearing accounts; and  Constant dollar, AAA-rated Texas Local Government Investment Pools as defined by the Public Funds Investment Act. If additional types of securities are approved for investment by public funds by state statute, they will not be eligible for investment until this Policy has been amended and the amended version adopted by the Council. Delivery versus Payment - All investment security transactions shall be conducted on a delivery versus payment (DVP) basis to assure that the Town has control of its assets and/or funds at all times. Page 192 IINNVVEESSTTMMEENNTT PPOOLLIICCYY IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS Securities broker/dealers may be primary or regional broker/dealers and will meet other criteria as determined by the Investment Officer including state registration and completion of a Town Broker/Dealer questionnaire (attached as Exhibit D). The following criteria must be met by authorized firms.  annual provision of an audited financial statement,  proof of certification by the National Association of Securities Dealers (NASD)  proof of current registration with the Texas State Securities Commission, and  completion of the Town's broker/dealer questionnaire. Every bank and broker/dealer with whom the Town transacts business will be provided a copy of this Investment Policy to assure that they are familiar with the goals and objectives of the investment program. The firm will be required to return a signed copy of the Certification Form (attached as Exhibit C) certifying that the Policy has been received and reviewed and only those securities approved by the Policy will be sold to the Town. X. DIVERSIFICATION AND MATURITY LIMITATIONS It is the policy of the Town to diversify its investment portfolio. Invested funds shall be diversified to minimize risk or loss resulting from over-concentration of assets in a specific maturity, specific issuer, or specific class of securities. Diversification strategies shall be established and periodically reviewed. XI. SAFEKEEPING AND COLLATERALIZATION The laws of the State and prudent treasury management require that all purchased securities be bought on a delivery versus payment (DVP) basis and be held in safekeeping by either an approved, independent third party financial institution or the Town's designated depository. Securities Owned by the Town - All safekeeping arrangements shall be approved by the Investment Officer and an agreement of the terms executed in writing. The safekeeping bank may not be within the same holding company as the bank from which the securities are purchased. The custodian shall be required to issue original safekeeping receipts to the Town listing each specific security, rate, description, maturity, CUSIP number, and other pertinent information. Collateral - Collateralization shall be required on all bank time and demand deposits for principal and accrued interest amounts over the FDIC insurance coverage of $100,000 (by tax identification number). In order to anticipate market changes and provide a level of additional security for all funds, collateral with a market value equal to 102% of the total deposits are required. The pledging bank will be made contractually liable for monitoring and maintaining the collateral levels at all times. All collateral will be held by an independent third party bank outside the holding company of the bank, pledged to the Town. Authorized collateral will include only:  Obligations of the US Government, its agencies and instrumentalities to include mortgage backed securities which pass the bank test,  Municipal obligations rated at least A by two nationally recognized rating agencies.  The custodian shall be required to provide original safekeeping receipts clearly marked that the security is pledged to the Town. Page 193 IINNVVEESSTTMMEENNTT PPOOLLIICCYY XII. REPORTING The Investment Officer shall submit quarterly reports to the Council containing sufficient information to permit an informed outside reader to evaluate the performance of the investment program and in full compliance with the Act. At a minimum the report shall contain:  Beginning and ending market value of the portfolio by market sector and total portfolio  Beginning and ending book value of the portfolio by market sector and total portfolio  Change in market value during the period  Detail on each asset (book, market, description, par ad maturity date)  Earnings for the period  Overall weighted average maturity of the portfolio The report will be prepared jointly by all involved in the investment activity and be signed by the Investment Officer. It will contain all elements as required by the Act and be signed by the Investment Officers as in compliance with the Act and this Policy. Market prices for assignment of market values will be obtained from an independent source. The three month Treasury Bill average yield for the reporting period will be reported as a gauge of performance and risk. XIII. DEPOSITORIES The Town will designate one banking institution through a competitive process as its central banking services provider at least every five years. This institution will be used for normal banking services including disbursements, deposits, and safekeeping of Town owned securities. Other banking institutions from which the Town may purchase only certificates of deposit will also be designated as a depository. All banking arrangements will be in written form in accordance with FIRREA which requires a resolution of approval of the agreement by the Bank Council or Bank Loan Committee. XIV. INVESTMENT POLICY ADOPTION BY COUNCIL The Town's Investment Policy and its incorporated strategies shall be adopted by resolution annually by the Council. Page 194 In order to focus our efforts as it pertains to serving the residents and businesses as well as creating a dynamic strategic planning document, the Council and staff developed a Strategic Issues-Focused Governance System (SIGS). The system is designed to combine the strategic plan, Balanced Scorecard Strategy Map and program based budget document into a comprehensive tool to guide the Town Council and staff as well as create an achievable vision for Westlake. The plan is organized according to Strategic Issues, identified as affecting our community over the next 24 months. This type of issues-focused version of a traditional strategic plan is designed to allow the organization to scan our envi- ronment for opportunities or challenges as it relates to our community and develop action plans to achieve the best results for Westlake. The Strategy Map from the Balanced Scorecard component of the SIGS outlines the Town Council directives which are vital to our service provision levels for our community and identify measurable objectives to indicate our performance in these areas of achievement. The Program Based Budget is an effort to quantify the cost of services by program rather than the traditional line-item budget format. The financial costs are identified by each program, rather than by each department, along with an explanation of the core services and program objectives. The philosophy of the Town of Westlake’s team embraces a “shared services model” as the most cost effective method to deliver excellent public services to the community through our dedicated and professional staff members. The community consists of our local residents, the children, parents and staff of Westlake Academy, our corporate citizens, the employees who work in Westlake and various other customers, developers and visitors who do business in and around our town. Through the use of a hybrid of internal direct service provision, inter-local agreements, public/private partnerships and the shared provision of programs at Westlake Academy, the staff strives to maintain Westlake as a premiere choice for families and corporate neighbors while operating in a financially responsible manner. Each departmental director and their staff teams are cross-trained and provide support or management of the service programs for both the Town of Westlake and the Town- owned charter school, Westlake Academy. These programs include facilities maintenance, development, human resources, IT support, financial services, communica- tions, and executive level management. The final results are a group of individuals who are actively engaged in creating a unique living experience through community events, educational opportunities and distinctive neighborhoods, which cannot be experienced anywhere else. Strategic Issues-Focused Governance System Strategic Plan 2011/12 Town of Westlake “Westlake, a premier knowledge based community” Table of Contents Balanced Scorecard Strategy Map 2 Business Cycle Chart 3 Mission, Vision & Community Values Statements 5 Strategic Plan 5 Program Based Budget Summary 14 Vaquero Approved ~ December 12, 2011 Page 195 “O n b e h a l f o f t h e c i t i z e n s , t h e m i s s i o n o f t h e T o w n o f W e s t l a k e i s t o b e a o n e -of -a - ki n d co m m u n i t y t h a t b l e n d s o u r r u r a l a t m o s p h e r e w i t h o u r v i b r a n t c u l t u r e a n d me t r o p o l i t a n l o c a t i o n . ” Pr o m o t e B e s t P r a c t i c e Po l i c y G o v e r n a n c e Pr o v i d e O u t s t a n d i n g S e r v i c e an d P r o g r a m D e l i v e r y Pr o v i d e E x c e l l e n t , R e s p o n s i v e Cu s t o m e r S e r v i c e Pr o m o t e C o m m u n i t y H e a l t h , Sa f e t y & W e l f a r e En h a n c e a n d M a i n t a i n a Se n s e o f C o m m u n i t y CUS T O M E R FOC U S FIN A N C I A L STE W A R D S H I P Pr e p a r e t h e B u d g e t w i t h L i n k a g e s to t h e S t r a t e g i c P r i o r i t i e s Id e n t i f y & A l l o c a t e F u n d i n g f o r Ma i n t e n a n c e o f P u b l i c A s s e t s Ma i n t a i n E x c e l l e n c e i n R e p o r t i n g an d F i n a n c i a l S t a n d a r d s Su s t a i n F i s c a l He a l t h Ma i n t a i n E f f e c t i v e In t e r n a l C o n t r o l s EMP L O Y E E INV E S T M E N T AN D SUP P O R T En c o u r a g e E m p l o y e e P r o f e s s i o n a l De v e l o p m e n t & O r g a n i z a t i o n a l G r o w t h Pr o m o t e a C u l t u r e o f L e a d e r s h i p , Te a m w o r k & H i g h P e r f o r m a n c e ( H P O ) En h a n c e E m p l o y e e W o r k Pe r f o r m a n c e , E n g a g e m e n t & J o b S a t i s f a c t i o n At t r a c t & R e t a i n a H i g h l y Sk i l l e d W o r k f o r c e C o m m i t t e d to S e r v i c e E x c e l l e n c e OPE R A T I O N A L PRO C E S S E S Fa c i l i t a t e t h e Im p l e m e n t a t i o n o f t h e St r a t e g i c I s s u e s F o c u s e d Go v e r n a n c e S y s t e m Pr e s e r v e o u r In f r a s t r u c t u r e t o M e e t th e L i f e E x p e c t a n c y o f ou r A s s e t s Im p l e m e n t a Co m p r e h e n s i v e Co n t i n u o u s Q u a l i t y Im p r o v e m e n t P r o c e s s En c o u r a g e St a k e h o l d e r a n d St a f f E n g a g e m e n t Op t i m i z e t h e u s e of o u r S h a r e d Se r v i c e s M o d e l De v e l o p a n In t e g r a t e d In f o r m a t i o n Sy s t e m  In n o v a t i o n  Ed u c a t i o n a l L e a d e r s  Fa m i l y F r i e n d l y a n d W e l c o m i n g  En g a g e d C i t i z e n s D R A F T  Pr e s e r v a t i o n o f O u r N a t u r a l B e a u t y  St r o n g A e s t h e t i c S t a n d a r d s  Tr a n s p a r e n t G o v e r n m e n t  Fi s c a l R e s p o n s i b i l i t y STR A T E G I C ISS U E S Ca p i t a l I n v e s t m e n t Fi s c a l S t e w a r d s h i p & Or g a n i z a t i o n a l E f f e c t i v e n e s s Hu m a n R e s o u r c e s (E m p l o y e e I n v e s t m e n t ) Co m p r e h e n s i v e P l a n n i n g a n d Ma n a g e m e n t o f N a t u r a l R e s o u r c e s Pu b l i c S a f e t y a n d Em e r g e n c y P r e p a r e d n e s s Page 19 S T R A T E G I C D E V E L O P M E N T /B U D G E T C Y C L E Ad o p t B u d g e t & Ta x R a t e Ac a d e m y Fi n a n c i a l A u d i t Pr o g r a m Bu d g e t Pr e p a r a t i o n s Pr e l i m i n a r y Bu d g e t P r o j e c t i o n s Pr e s e n t An n u a l A u d i t to C o u n c i l • El e c t i o n s • CI P P l a n n i n g Re v i e w F i n a n c i a l Po l i c i e s Bu d g e t W o r k Se s s i o n s Pr e p a r a t i o n f o r To w n A n n u a l Au d i t Im p l e m e n t & Pu b l i s h B u d g e t Do c u m e n t s Bu d g e t K i c k o f f & Ac a d e m y S u r v e y Ap r i l Fe b r u a r y Ma r c h Ja n u a r y De c e m b e r No v e m b e r Ju n e Ma y Au g u s t Se p t e m b e r Oc t o b e r Ju l y 1st Qt r R e p o r t to C o u n c i l 2nd Qt r R e p o r t to C o u n c i l 3rd Qt r R e p o r t to C o u n c i l • Ce r t i f i e d R o l l R e c e i v e d • TM O Pr e l i m i n a r y B u d g e t re v i e w St r a t e g i c Pl a n n i n g Wo r k s h o p Ci t i z e n ’ s S u r v e y DR A F T Pr e p a r e A c a d e m y Su r v e y Pr e p a r e T o w n Su r v e y Re v i e w B u d g e t Pr o c e s s Fo r Co m i n g F Y Bu d g e t R e t r e a t Page 19 Sense of Place ~ Distinctive neighborhoods, architecturally vibrant corporate campuses, grazing longhorns, soaring red-tailed hawks, meandering roads and trails, lined with natural stone and native oaks. Leadership ~ A premiere place to live, leadership in public education, corporate and governmental partnerships, and high development standards. Caring Community ~ Informed residents, small town charm and values, historical preservation. Vision Statement Westlake is an oasis of tranquility and natural beauty amidst an ever expanding urban landscape. Mission Statement “On behalf of the citizens, the mission of the Town of Westlake is to be a one-of-a-kind community that blends our rural atmosphere with our vibrant culture and metropolitan location.” 3 Village Circle, Suite 202, Westlake, Texas 76262 www.westlake-tx.org (817) 430-0941 Strategic Plan 2011/12 Town of Westlake “Westlake, a premier knowledge based community”  Innovation  Educational leaders  Family friendly and welcoming  Engaged citizens Exemplary Governance ~ Town officials, both elected and appointed, exhibit respect, stewardship, vision, and transparency. Service Excellence ~ Public service that is responsive and professional, while balancing efficiency, effectiveness, and financial stewardship.  Preservation of our natural beauty  Strong aesthetic standards  Transparent government  Fiscal responsibility Community Values Vision Points Page 5 Page 19 Approximately 992 residents currently occupy the Town of Westlake’s 6.6 square miles, which is situated in the northern triangle of the Fort Worth—Dallas area. Originally settled in 1847, Westlake was incorporated in 1956. Today, the Town of Westlake is home to several neighborhoods, all of which share a commitment to excellence, but possess unique character and charm. All residents live in single-family homes and there is an award winning private golf course in town. The median age in Westlake is 38, and 51% of the residents are female. Some of the community’s top employers are: Fidelity Investments, TD Auto Finance, and CoreLogic. Several companies have offices in Solana, a high-profile corporate campus near State Highway 114. Solana’s Village Circle also provides a mix of retail spaces and restau- rants, plus offers the 296-room Marriott Solana hotel. The sales tax rate in Westlake is 8.25%. Of the money collected, 6.25% is paid to the state of Texas, 1% to the Town, and the remaining 1% to a local property tax relief fund and an economic development fund. History and Demographics Solana Office Complex Top Employers  Fidelity Investments  TD Auto Finance  CoreLogic  Wells Fargo Bank  McKesson Corporation  Deloitte University  Marriott — Solana “Good business leaders create a vision, articulate the vision, and relentlessly drive it to completion.” - Jack Welch Page 6 Town of Westlake Recent Infrastructure Re-investment & Development Projects  FM 1938—Construction of major north/south thoroughfare  Deloitte University  Dove Road and Ottinger Road Improvements  Stagecoach Hills Waterline & Paving/Drainage Improvements  Aspen Lane, Mahotea Boone and Roanoke Road Paving/Drainage Improvements  SH 114 / SH 1170 Interchange Page  SENSE OF PLACE — The Town is home to several different types of community developments, which include residential, corporate and agricultural uses. Our largest residential neighborhood is home to a state of the art golf facility and many beautiful homes. Stagecoach Hills airpark is located along the historic stagecoach line which once transported passengers from Keller to Denton. Westlake residential neighborhoods include:  Aspen Lane ● Glenwyck Farms ● Mahotea Boone ● Paigebrooke Farms  Stagecoach Hills ● Terra Bella ● Vaquero ● Wyck Hill The Town is located along the Tarrant and Denton County borders and has portions of major State highways that surround its perimeter. We are an ideal location for businesses and have enjoyed a long history with our corporate campus developments. During the 2011 strategic planning process, the Town Council and staff Leadership Team developed an overview of the strategic issues facing Westlake and developed action plans to monitor the success and completion of the projects. The vision and mission statements were updated to reflect the unique characteristics found within our community and the values which are important to our residents. The information is contained within five vision points which describe the areas that the Council and staff have determined are vital to maintaining our Town and providing services to enhance the lives of our residents and community. Vision Point One—Sense of Place Vision Point Two—Leadership Vision Point Three—Caring Community Vision Point Four—Exemplary Governance Vision Point Five—Service Excellence Strategic Plan Overview LEADERSHIP — Town leaders foresaw the need for a facility to educate the children of Westlake in a local setting and to provide the citizens with a civic campus and a sense of community. In 2003, the Town raised funds to build Westlake Academy, the only open-enrollment charter school owned and operated by a municipality in the State. The Academy of- fers the rigorous International Baccalaureate curriculum, for grades K-12, and all resi- dents are eligible to enroll their children. The Town also utilizes the “shared services” configuration to provide cutting edge service delivery to our residents and customers. The staff steps outside the traditional roles associated with each department in a municipality and works in a cross- functional manner between the Town and the Academy programs. This assists us in keeping our overhead to a minimum while serving our community. Page 7 Town of Westlake “Vision without action is a dream. Action without vision is simply passing the time. Action with vision is making a positive difference.” - Joel Barker Page 20 Page 8 Town of Westlake EXEMPLARY GOVERNANCE — Westlake is governed by a Mayor and Town Council with each of the five council members serving a two-year term. The Town Council also serves as the governing board for Westlake Academy, in the capacity of the Board of Trustees. The dual service configuration supports the cooperative delivery of program services for the Westlake community. The Town Council appoints the Town Manager, who also functions as the Academy’s Superintendent, establishes town policies, and serves as the legislative body of the Town. In this capacity, the Council also approves the Town budget. The community is fortunate to have a dedicated group of residents who serve on our various boards and strive to promote the vision of the Town. CARING COMMUNITY — In an effort to foster citizen engagement, enhance our neighborhoods and increase participation in the community, many of the residents serve on various advisory boards that are committed to furthering the mission of the Town and ensuring Westlake is truly a unique community. The Westlake Historical Preservation Society was created to identify, preserve, and perpetuate the history of the Town and the Cross Timbers region. The Town is committed to protecting and improving the quality of life of Westlake residents, businesses and students by encouraging, inspiring, educating and entertaining artistic and creative endeavors. The Public Art Society of Westlake provides a wide range of professional and artistic presentations to foster the arts in the community and we are a co-sponsor of the MasterWorks Concert Series with the Arts Council Northeast, who promote local artists through public concert events. Westlake also hosts several local events to foster community involvement through the annual Christmas Tree Lighting Event, Decoration Day, Vintage Car Show and Arbor Days. SERVICE EXCELLENCE — The Town is staffed by a group of professionals who provide our residents and customers with the highest quality of public services in an efficient and responsive manner. The staff is involved in community gatherings, such as the neighborhood and parent meetings, concerts series, and various holiday based events—as well as striving to maintain personal relationships with our residential population to foster the Sense of Place and Caring Community found in Westlake. The Town’s Leadership Team of department directors brings more than 150 years of collective municipal experience and knowledge to the Town along with a strong commitment to public service excellence. Entrance to Glenwyck Farms Page 20 The Town’s strategic plan was developed according to a Strategic Issues format, which identified events through a SWOT (strengths, weaknesses, opportunities, and threats) analysis that would affect our community over the next 24 months. This type of issues- focused version of a traditional strategic plan is designed to allow the organization to scan our environment for opportunities or challenges as it relates to our community and develop action plans to achieve the best results for Westlake. The five component issues we identified as strategic are:  Capital Investment  Fiscal Stewardship & Organizational Effectiveness  Human Resources (Employee Investment)  Comprehensive Planning and Management of Natural Resources  Public Safety and Emergency Preparedness Under each outcome strategy, staff has created action items necessary to support or achieve the desired result, which is linked to the Strategy Map. Strategic Issues Westlake Academy Page 9 Town of Westlake Strategic Plan CAPITAL INVESTMENT — Ensure the infrastructure and capital investments of the Town are maintained to sustain the community’s quality of life. Outcome Strategies: 1. Existing Infrastructure Reinvestment (Current Assets) Leadership Team Member(s): Tom Brymer / Eddie Edwards / Jarrod Greenwood / Troy Meyer Staff Action 1.1: Facilities — Review of long-term rental options in comparison to building a permanent structure. Strategy Map: Financial Stewardship ~ Sustain Fiscal Health Completion Date: April, 2012 Staff Action 1.2: Cemetery — Analysis of long-term sustainability and marketing opportunities to increase the return on investment in the facility. Strategy Map: Financial Stewardship ~ Sustain Fiscal Health Completion Date: December, 2013 Staff Action 1.3: Completion of FM 1938 (Precinct Line Road) - Implementation of streetscaping projects. Strategy Map: Customer Focus ~ Enhance and Maintain a Sense of Community Completion Date: FM 1938 — Summer, 2012; Final Streetscaping — Fall, 2015 Staff Action 1.4: FM 114/170 Interchange — Partner with TxDoT, the Town of Trophy Club and City of Roanoke to complete the streetscaping project. Strategy Map: Customer Focus ~ Enhance and Maintain a Sense of Community Completion Date: Summer, 2013 “Westlake has been a lot of things, but it has never been ordinary.” Fort Worth Star Telegram Page 20 Glenwyck Park Page 10 2011/12 Outcome Strategies: 5. Budget according to established service level provisions within departments. Leadership Team Member(s): Town Manager and All Departmental Directors Staff Action 5.1: Prepare budgets in a fiscally responsible manner to maintain a low tax rate while serving our stakeholders. Strategy Map: Financial Stewardship ~ Prepare the Budget with Linkages to the Strategic Priorities Completion Date: Annually by October 1st. FISCAL STEWARDSHIP AND ORGANIZATIONAL EFFECTIVENESS — Maintain a balanced approach to revenue forecast- ing and expenditure allocation to ensure the necessary resources for long-term sustainability. Strategic Issues, (cont.) 2. Technology and Equipment Investment Leadership Team Member(s): Todd Wood / Richard Whitten / Eddie Edwards Staff Action 2.1: Capital Investment in Vehicles—Review of emergency and fleet maintenance needs and replacement opportunities. Strategy Map: Operational Processes ~ Preserve our Infrastructure to Meet the Life Expectancy of Our Assets Completion Date: October, 2012 Staff Action 2.2: Radio Accessibility of Emergency Services — Examine public safety communication interoperability of the Westlake emergency radio system. Strategy Map: Customer Focus ~ Promote Community Health, Safety & Welfare Completion Date: June, 2012 CAPITAL INVESTMENT, (cont.) Staff Action 2.3: Capital Investment in Technology —Review of current technology needs and forecast anticipated requirements for internal operations, citizen engagement and equipment replacement in the form of a technology plan. Strategy Map: Customer Focus ~ Promote Community Health, Safety & Welfare Completion Date: June, 2012 3. Policy and Cost Analysis Drive by Growth (Future Assets) Leadership Team Member(s): Tom Brymer / Debbie Piper / Jarrod Greenwood / Eddie Edwards / Todd Wood / Troy Meyer Staff Action 3.1: Conduct feasibility study for water/sewer impact fees to offset the cost of infrastructure development. Strategy Map: Financial Stewardship ~ Sustain Fiscal Health Completion Date: June, 2012 Staff Action 3.2: Park Land and Trail Development — Work in partnership with surrounding municipalities to allow for connection of trails within Westlake to our neighboring communities. Strategy Map: Customer Focus ~ Promote Community Health, Safety & Welfare Completion Date: July, 2012 Staff Action 3.3: Evaluate Westlake Academy campus needs and expansion options. Strategy Map: Operational Processes ~ Optimize the Use of Our Shared Services Model Completion Date: August, 2012 4. Hwy 170/NTTA project Staff Action 4.1: Monitor the construction of the Hwy 170/NTTA project and provide Council with updates as to the impact on mobility in Westlake. Strategy Map: Customer Focus ~ Promote Community Health, Safety & Welfare Completion Date: Annual Report in November Page 20 Entrance to Stagecoach Hills Page 11 Town of Westlake Strategic Issues, (cont.) 6. Maximize the service provision level to our customers through the use of the shared services model, public/private partnerships and the implementation of innovative inter-governmental agreements. Leadership Team Member(s): Town Manager and All Departmental Directors Staff Action 6.1: Seek additional partnerships through either the use of Memorandums of Understanding (MOU’s) or Interlocal Agreements (ILA’s) relative to items such as economic development, tourism, cost reductions or enhanced efficiencies in service delivery mechanisms, infrastructure developments, mobility activities, etc. Strategy Map: Customer Focus ~ Provide Outstanding Service and Program Delivery Completion Date: Provide annual December report to Council Staff Action 6.2: While maintaining high standards, continue to create incentive mechanisms that encourage businesses to locate in Westlake. These include flexible “development friendly” ordinances, adequate or expandable infrastructure, simplified fee structures and review procedures, and responsive staff support. Strategy Map: Customer Focus ~ Provide Outstanding Service and Program Delivery FINANCIAL STEWARDSHIP AND ORGANIZATIONAL EFFECTIVENESS, (cont.) 7. Develop a communication and marketing plan that is comprehensive in nature to encourage dialogue with our residents and foster community involvement. Leadership Team Members(s): Ginger Awtry / Tom Brymer / Todd Wood Staff Action 7.1: Provide consistent and timely communication to promote resident and stakeholder engagement in the business, events and opportunities in Westlake. Strategy Map: Customer Focus ~ Enhance and Maintain a Sense of Community Completion Date: Provided through Monthly and Quarterly Publications Staff Action 7.2: Implement new website and monitor/update content material for relevancy and timeliness. Strategy Map: Customer Focus ~ Provide Excellent, Responsive Customer Service Completion Date: February, 2012 Staff Action 5.2: Continually monitor our revenue income and expenditures as it relates to the program budgeting function to provide Council with comprehensive financial information. Strategy Map: Financial Stewardship~ Sustain Financial Health Completion Date: Provided through Quarterly Financial Reports Staff Action 5.3: Examine Town’s capacity for re-investment in technology, FFE, capital expenditures, etc. Strategy Map: Financial Stewardship ~ Identify and Allocate Funding for Maintenance of Public Assets Completion Date: June, 2012 Staff Action 5.4: Develop/propose a financial policy to provide for future replacement needs of technology, FFE, etc. Strategy Map: Financial Stewardship ~ Identify and Allocate Funding for Maintenance of Public Assets Completion Date: December, 2012 Page 20 Terra Bella Entry Page 12 2011/12 Spring Flowers Strategic Issues, (cont.) Outcome Strategies: 9. Update Town’s Comprehensive Plan Leadership Team Member(s): Troy Meyer / Eddie Edwards / Jarrod Greenwood A. Review of Current Comprehensive Planning document. Staff Action 9.A.1: Review existing plan provisions and incorporate into new proposal; Examine the possibility of hiring an outside consultant to assist in the process. Strategy Map: Customer Focus ~ Enhance and Maintain a Sense of Community Completion Date: June, 2012 B. Review of Land Use Plan & Financial Analysis of Impact to Sustainability Staff Action 9.B.1: Understanding the impact of the current land use plan on future growth and financial sustainability of the Town’s municipal services, fees, and infrastructure necessary to support future development. Strategy Map: Customer Focus ~ Enhance and Maintain a Sense of Community Completion Date: March, 2013 C. Supporting Master Plans  Thoroughfare Plan  Parks/Trail/Open Space  Utilities (Water, Sewer, Duct Bank) Staff Action 9.C.1: Draft supporting master plans according to concepts approved by Council in the Comprehensive Planning document. Strategy Map: Customer Focus ~ Enhance and Maintain a Sense of Community Completion Date: March, 2013 COMPREHENSIVE PLANNING AND MANAGEMENT OF NATURAL RESOURCES — Ensure the standards are maintained and promoted in the management of growth and development within the Town to foster our unique character and rural-like atmosphere. HUMAN RESOURCES (Employee Investment) — Provide the appropriate staffing levels at the Town as it relates to service delivery to our community. Outcome Strategies: 8. Include personnel estimates in the five-year financial forecast based on expansion of service provision to the Academy and community as directed by growth/demand for services. Leadership Team Member(s): Town Manager and All Departmental Directors Staff Action 1.1: In conjunction with 5-year financial forecast, department heads to identify staffing needs for all programs of service. Strategy Map: Operational Processes ~ Optimize the Use of Our Shared Services Model Completion Date: Annually by August, 2012 Staff Action 1.2: Continually evaluate ways to maximize our delivery methods by cross-training employees and identifying skill sets which would be beneficial across the organization (i.e., security at the Academy, event preparation and volunteering, communication efforts through dynamic publica- tions, IT services between the Academy/Town, etc.) Strategy Map: Operational Processes ~ Encourage Stakeholder and Staff Engagement Completion Date: Report in August, 2012 Page 20 PUBLIC SAFETY AND EMERGENCY PREPAREDNESS — Provide a safe community for our residents and business partners. Page 13 2011/12 Strategic Issues, (cont.) 12. Plan and implement strategies to enhance the emergency preparedness of the residents and Town facilities. Leadership Team Member(s): Town Manager and All Departmental Directors Staff Action 2.1: Evaluate on the local level that all departments have adequate training, equipment, and communication tools, to effectively address emergency situations as they arise. Strategy Map: Customer Focus ~ Promote Community Health, Safety and Welfare Completion Date: May, 2012 Staff Action 2.2: Review Town/Academy Standard Operating Procedures and emergency plans to maintain readiness. Strategy Map: Customer Focus ~ Promote Community Health, Safety and Welfare Completion Date: December, 2012 Staff Action 2.3: Inventory and identify availability of recommended Emergency Operations Center components. Strategy Map: Customer Focus ~ Promote Community Health, Safety and Welfare Completion Date: June, 2013 COMPREHENSIVE PLANNING AND MANAGEMENT OF NATURAL RESOURCES, (Cont.) D. Review and recommend necessary changes to existing ordinances to align with Comprehensive Plan Strategy Map: Customer Focus ~ Provide Outstanding Service and Program Delivery Completion Date: March, 2013 10. Investigate and review of environmental preservation and conservation opportunities. Leadership Team Member(s): Jarrod Greenwood / Troy Meyer Staff Action 10.1: Provide Council with report outlining programs that would benefit the residents in their conservation efforts. Strategy Map: Customer Focus ~ Provide Outstanding Service and Program Delivery Completion Date: Report to Council in April, 2012 Staff Action 10.2: Compare and contrast the programs relative to surrounding communities and the options found in the environmental conservation “best practices” of local government, to include an estimated cost of service provision. Strategy Map: Customer Focus ~ Provide Outstanding Service and Program Delivery Completion Date: April, 2013 Outcome Strategies: 11. Consistently seek an effective service delivery method to provide comprehensive police services for the Town residents. Leadership Team Member(s): Town Manager and All Departmental Directors Staff Action 11.4: Monitor and report on the success of the current police services contract to ensure a safe environment for our residents. Strategy Map: Customer Focus ~ Provide Outstanding Service and Program Delivery Completion Date: Annual report in February/March Page 20 Terra Bella Entry Page 14 2011/12 Spring Flowers Programs of Service Program Comprehensive Planning & Economic Development Building Inspections Code Enforcement Transportation Services Parks & Recreation Maintenance TOTAL Vision Point One ~ Sense of Place: Distinctive neighborhoods, architecturally vibrant corporate campuses, grazing longhorns, soaring red-tailed hawks, meandering roads and trails, lined with natural stone and native oaks. Total Allocation $ 84,199 $ 38,253 $ 5,182 $ 39,646 $ 106,031 $ 273,311 Key Service Delivery Dept. Dept. 11 — Administration Dept. 12 — Planning & Dev. Dept. 12 — Planning & Dev. Dept. 16 — Public Works Dept. 19 — Parks & Rec. Vision Point Two ~ Leadership: A premiere place to live, leadership in public education, corporate and governmental partnerships, and high development standards. Program Plan Review & Inspections Gas Well Permit Administration Planning & Zoning Water Services Sewer Services Solid Waste & Recycling Westlake Academy Foundation Support Services Academic Support Services Texas Student Housing TOTAL Total Allocation $ 48,945 $ 8,197 $ 39,252 $1,662,660 $ 444,994 $ 33,533 $ 20,501 $ 139,151 $ 28,767 $2,426,000 Key Service Delivery Dept. Dept. 12 — Planning & Dev. Dept. 12 — Planning & Dev. Dept. 12 — Planning & Dev. Dept. 16 — Public Works Dept. 16 — Public Works Dept. 16 — Public Works Dept. 18 — Finance Dept. 21 — Human Resources Dept. 13 — Town Secretary The program budget allocations are used as a means of providing our residents and Council with the costs associated with each public service provision according to the specific program rather than the traditional line-item designations. It has been developed with a governance approach that places greater emphasis on the services and activities provided to our stakeholders rather than the individual departments that carry out the assigned work duties. The information listed below, groups the programs with the Vision Point most closely related to the service and identifies the department that is primarily responsible for ensuring the necessary work is completed to reach our goals and objectives. The program budget may also be utilized as a tool for prioritizing services and making organizational funding decisions. Deciding how responsive, effective or efficient a particular service should be carries implicit costs. Westlake continues to deliver the highest quality services possible while maintaining relatively low provision costs. The professional staff at the Town of Westlake takes pride in the work they do and the services they offer to our residents. Page 20 Page 15 2011/12 Programs of Service, (cont.) Vision Point Three ~ Caring Community: Informed residents, small town charm and values, historical preservation. Program Emergency Prevention Citizen Engagement & Communications TOTAL Total Allocation $ 70,023 $ 117,221 $ 187,244 Key Service Delivery Dept. Dept. 14 — Fire & EMS Dept. 22 — Communications Vision Point Four ~ Exemplary Governance: Town officials, both elected and appointed, exhibit respect, stewardship, vision, and transparency. Program Municipal Governance Academic Governance TOTAL Total Allocation $ 183,083 $ 78,384 $ 261,467 Key Service Delivery Dept. Dept. 11 — Administration Dept. 11 — Administration Vision Point Five ~ Service Excellence: Public service that is responsive and professional, while balancing efficiency, effectiveness, and financial stewardship. Program Financial Management Municipal Administration Academic Administration Records Management Emergency Operations Emergency Operations — Billing Services Emergency Operations — Support Services Police Services Municipal Court—Case Processing Municipal Court — Docketing Warrant & Jail Services Municipal Court - Collection Services Judiciary & Administration Utility Billing & Processing Municipal Accounting Services Human Resources — Administration Human Resources —Total Compensation Human Resources — Risk Management Human Resources — Employment Services Right-of-Way (ROW) Management Election Administration Municipal IT Operations Municipal Network Operations TOTAL Total Allocation $ 291,888 $ 656,508 $ 274,369 $ 29,621 $ 991,454 $ 12,000 $ 30,504 $ 775,326 $ 61,478 $ 52,013 $ 96,525 $ 17,393 $ 37,024 $ 67,419 $ 202,190 $ 6,501 $ 2,000 $ 4,210 $ 3,166 $ 143,096 $ 12,928 $ 81,592 $ 6,363 $ 3,855,570 Key Service Delivery Dept. Dept. 11 — Administration Dept. 11 — Administration Dept. 11 — Administration Dept. 13 — Town Secretary Dept. 14 — Fire & EMS Dept. 14 — Fire & EMS Dept. 14 — Fire & EMS Dept. 23 — Police Dept. 15 — Municipal Court Dept. 15 — Municipal Court Dept. 15 — Municipal Court Dept. 15 — Municipal Court Dept. 15 — Municipal Court Dept. 18 — Finance Dept. 18 — Finance Dept. 21 — Human Resources Dept. 21 — Human Resources Dept. 21 — Human Resources Dept. 21 — Human Resources Dept. 16 — Public Works Dept. 13 — Town Secretary Dept. 20 — Information Tech. Dept. 20 — Information Tech. “We are limited, not by our abilities, but by our own vision.” - Anonymous Page 20 Page 1 of 2 estlake Town Council TYPE OF ACTION Regular Meeting - Action Item Westlake Town Council Meeting Monday, September 24, 2012 TOPIC: Consideration and discussion of an Ordinance Levying Municipal Ad Valorem (Property) Taxes for the 2012 Year in accordance with the Fiscal Year 2012-13 Proposed Budget. STAFF CONTACT: Tom Brymer, Town Manager DECISION POINTS Start Date Completion Date Timeframe: October 1, 2012 September 30, 2012 Funding: Amount - $26,089,720 Status- Funded Source- Ad valorem Tax The Town of Westlake’s Proposed FY 2012-2013 budget totals $26,089,720 for all funds (including $1,923,218 transfers in from fund balance for operating, debt service, capital projects, major maintenance and equipment replacement needs). Included in this total is Westlake Academy’s FY 2012-2013 expenditures and transfers out totaling $5,876,479 Decision Alignment VVM Perspective Desired Outcome Service Excellence Financial Stewardship FS.Sustain Fiscal Health Strategic Issue Outcome Strategy Staff Action Fiscal Stewardship & Organizational Effectiveness 5. Budget according to established service level provisions within departments. SA 05.1: Budget Preparation Strategy Map or VVM Connection Strategic Issue Connection Page 2 of 2 EXECUTIVE SUMMARY On June 28, 2010 the Town Council set the residential homestead tax exemption at the maximum (20%) allowed by State law. There were also exemptions adopted by that earlier Resolution (which is restated and confirmed in the tax levy ordinance) for an exemption for people who are disabled or over 65 and an exemption for Freeport goods. In addition, there is a provision in the current Town Code for a “tax freeze” for people over 65 or who are disabled and have a Westlake residence homestead. The ad valorem tax rate used in this proposed 2012-13 Budget and compared to the rates used for FY 2011-12 is as follows: FY 11-12 FY 12-13 Adopted Proposed Tax Rate Tax Rate Variance M&O $0.13835 $0.14197 $ 0.00362 I&S $0.01849 $0.01487 $ (0.00362) $0.15684 $0.15684 $ (0.00000) The proposed FY 12-13 tax rate of $.15684 is 19% less than the effective rate we are allowed to use by law in FY 12-13 of $.193260 per $100 of the assessed valuation. We have budgeted a total of $1,307,483 in the FY 2012-13 proposed budget. ORGANIZATIONAL HISTORY/RECOMMENDATION Recommend adoption of an ordinance levying a municipal ad valorem (property) tax totaling $0.15684 per $100 of assessed valuation. ATTACHMENTS Ordinance Ordinance 687 Page 1 of 3 TOWN OF WESTLAKE ORDINANCE NO. 687 AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS LEVYING TAXES TO BE ASSESSED ON ALL TAXABLE PROPERTIES WITHIN THE TOWN LIMITS OF THE TOWN OF WESTLAKE FOR THE TAX YEAR 2012 (FISCAL YEAR 2012-2013); SETTING OUT EXEM PTIONS AND LIMITATION; NO STATE LAW STATEMENTS REQUIRED; PROVIDING FOR THE COLLECTION OF DELINQUENT TAXES AND A COLLECTION PENALTY TO BE ADDED TO DELINQUENT TAXES; PROVIDING FOR A SEVERABILITY CLAUSE; AND DECLARAING AN EFFECTIVE DATE. WHEREAS, a public hearing on the proposed annual budget for the Town of Westlake, Texas, for the fiscal year beginning on October 1, 2012 and ending on September 30, 2013, was duly advertised giving the date, time, place and subject matter of the public hearing, and WHEREAS, a public hearing was set by the Town Council in a duly posted Town Council meeting on September 24, 2012, and all citizens were invited to participate and be heard; and WHEREAS, all requirements of state law were met, including Open Meetings Act, Texas Government Code chapter 551 requirements and the requirement of Texas Local Government Code 102.002 that the budget officer prepare a municipal budget to cover the proposed expenditures of the municipal government for the succeeding year; and WHEREAS, it is deemed to be in the best interest of the citizens of the Town of Westlake, Texas to levy a tax as set forth below, on all taxable properties within the Town limits of Westlake in order to provide the necessary funds to provide municipal services to its citizens and to meet all municipal commitments; and WHEREAS, the Town of Westlake will not be raising more taxes for the 2012-2013 fiscal year than the amount that was raised for the 2011-2012 fiscal year; WHEREAS, the Town of Westlake has passed exemptions to certain applicable taxes which were previously adopted by earlier Resolution and recognized and adopted a tax limitation set out in the Town Municipal Code and such exemptions and limitation are included and adopted as part of this Ordinance; and WHEREAS, the Town Council finds the passage of this Ordinance to be in the best interest for the citizens of Westlake, for the preservation of public health, safety and welfare of the citizens of the Town; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: Ordinance 687 Page 2 of 3 SECTION 1: That all matters stated in the findings hereinabove are found to be true and correct and are incorporated herein by reference as if copied in their entirely. SECTION 2: That the Town Council of the Town of Westlake, Texas shall hereby levy the following taxes on each One Hundred Dollars ($100.00) of taxable valuation on all taxable property within the Town limits of the Town of Westlake, Texas to be assessed and collected by the Tax Assessor / Collector for the tax year 2012 (Fiscal year 2012-2013) for the purposes stipulated below, to -wit: (a) For General Fund Maintenance and Operations (M&O) levied on the $100.00 of taxable valuation: $0.14197 (b) For Interest and Sinking Fund (debt ser vice) levied on $100.00 of taxable valuation: $0.01487 SECTION 3: Exemptions: That the Town Council authorizes the following exemptions and limitations: (a) Homestead exemption - That it is the intent of the Town Council of the Town of Westlake to adopt the highest possible homestead exemption, which would be a homestead exemption in the amount of twenty percent (20%) of the value of the homestead, and in any event, the exemption shall be at least a minimum of Five Thousand dollars ($5,000.00). For purposes of this section "residential homestead" is defined as a structure (including a mobile home) or a separately secured and occupied portion of a structure (together with land, no to exceed ten (10) acres, and improvements used in the residential occupancy of the structure and the land and improvements have identical ownership) that (1) is owned by one or more individuals, either directly or through a beneficial interest is a qualifying trust; (2) is designed or adapted for a human residence; (3) is used as a residence; and (4) is occupied as his or her principal residence by an owner or, for property owned through a beneficial interest in a qualifying trust, by a trustee of the trust who qualifies for the exemption. (b) Over 65 or Disabled exemption - That an exemption for a resident over 65 or disabled, pursuant to section 11.13(b) of the Texas Tax Code shall be authorized in the amount of $10,000. A resident is eligible for an exemption under this section if the resident is over 65 or disabled, but the resident shall not be entitled to two exemptions under this section, as set out in section 11.13(b) of the Texas Tax Code. (c) The Town of Westlake previously adopted an ad valorem tax limitation in section 86-2 of the Town Code, for elderly and disabled citizens according to Article VIII, Section 1-b of the Texas Constitution and Texas Tax Code § 11.261, which provides “The county, municipality, or junior college district may not increase the total annual amount of ad valorem taxes the county, municipality, or junior college district imposes on the residence homestead of a disabled individual or an individual 65 years of age or older above the amount of the taxes the county, municipality, or junior college district imposed on the residence homestead in the first tax year, other than a tax year preceding the tax year in which the county, municipality, or junior college district established the limitation described by Subsection (a), in which the individual qualified that residence homestead for the exemption provided by Section 11.13(c) for a disabled Ordinance 687 Page 3 of 3 individual or an individual 65 years of age or older.” This provision, commonly referred to as a “tax freeze” means that residents who are already eligible for the provisions of that section will not have any increase in their taxes from the time that they became eligible, as citizens of Westlake, for that section. SECTION 4: State Law Required Statements: (A) Because the Town of Westlake will not be raising more taxes this year than were raised in the prior year, the state law statements that are required to be made when more taxes are raised are not applicable to the Town of Westlake for this upcoming fiscal year. (B) The tax rate for the upcoming fiscal year will remain the same at $0.15684 (M & O of $0.14197 and interest and sinking fund of $0.01487 totaling $0.15684). The taxes raised fo r maintenance and operations will be approximately $113.57 on a $100,000 home with a homestead exemption. SECTION 5: The Town of Westlake will pursue collection of delinquent taxes and adopts the provisions of Section 33.07 of the Texas Tax Code so that hereafter an additional penalty of Twenty (20) percent of the delinquent tax, penalty and interest on delinquent taxes will be imposed on taxes becoming delinquent as provided by the Texas Tax Code and the Town’s collection agreement . SECTION 6: If any portio n of this Ordinance shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Ordinance without the invalid provision. SECTION 7: That this Ordinance shall become effective from and after its date of passage. PASSED AND APPROVED ON THIS 24th DAY OF SEPTEMBER 2012. ATTEST: _____________________________ Laura L. Wheat, Mayor ____________________________ Kelly Edwards, Town Secretary ______________________________ Thomas E. Brymer, Town Manager APPROVED AS TO FORM: ____________________________ L. Stanton Lowry, Town Attorney EXECUTIVE SESSION The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.087: Deliberation Regarding Economic Development Negotiations – to deliberate the offer of a financial or other incentive to a business prospect. b. Section 551.071 Consultation with Attorney - to seek advice of counsel on legal matters involving pending or contemplated litigation, settlement offers, or other legal matters not related directly to litigation or settlement. Pending or contemplated litigation and settlement offers include but are not limited to the following: Michael Eaton vs. Town of Westlake Town of Westlake Item # 6 – Executive Session Town of Westlake Item # 7 – Reconvene Meeting The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.087: Deliberation Regarding Economic Development Negotiations – to deliberate the offer of a financial or other incentive to a business prospect. b. Section 551.071 Consultation with Attorney - to seek advice of counsel on legal matters involving pending or contemplated litigation, settlement offers, or other legal matters not related directly to litigation or settlement. Pending or contemplated litigation and settlement offers include but are not limited to the following: Michael Eaton vs. Town of Westlake Town of Westlake Item # 8 – Take any Necessary Action, if necessary FUTURE AGENDA ITEMS: Any Council member may request at a workshop and / or Council meeting, under “Future Agenda Item Requests”, an agenda item for a future Council meeting. The Council Member making the request will contact the Town Manager with the requested item and the Town Manager will list it on the agenda. At the meeting, the requesting Council Member will explain the item, the need for Council discussion of the item, the item’s relationship to the Council’s strategic priorities, and the amount of estimated staff time necessary to prepare for Council discussion. If the requesting Council Member receives a second, the Town Manager will place the item on the Council agenda calendar allowing for adequate time for staff preparation on the agenda item. - None Town of Westlake Item #9 - Future Agenda Items Strategic Issue August - 2012 September – 2012 October - 2012 November - 2012 December - 2012 January - 2013 Capital Investment • Report on trail connectivity with surrounding communities (pg. 10, SA 3.2 ) • Evaluation of WA campus needs and expansion options (pg. 10, SA 3.3) • FM 1938 Completion (pg. 9, SA 1.3) • Review of emergency and fleet maintenance needs and replacement (pg. 10, SA 2.1) • Review current technology plans – draft technology plan (pg. 10, SA 2.3) • Report on Hwy 170 / NTTA project (pg. 10, SA 4.1) MOVED FROM NOVEMBER • Feasibility study for water/sewer impact fees –Tentative (pg. 10, SA 3.1) Fiscal Stewardship & Organizational Effectiveness • Budget Preparations (pg. 10, SA 5.1) • Examine Town’s capacity for reinvestment in technology, FFE and capital expenditures, etc. (pg. 11, SA 5.3) • Prepare a financial policy to provide for the future replacement of technology needs/FFE, etc. (pg. 11, SA 5.4) • Report on partnership opportunities through MOU’s, ILA’s, etc. (pg.11, SA 6.1) • Report on business incentive opportunities (pg. 11, SA 6.2 Human Resources (Employee Investment) • Prepare report on staffing needs as part of 5-year forecast (pg. 12, SA 1.1) • Report on cross- training and shared services evaluations (pg. 12, SA 1.2) Comprehensive Planning and Management of Natural Resources • Provide Council with report outlining programs that would assist residents in recycling efforts (pg. 13, SA 10.1) Public Safety and Emergency Preparedness • Evaluate that all departments have adequate training, etc. to address emergency situations (pg. 13, SA 12.1) • Review Town/Academy SOP’s and emergency plans to maintain readiness (pg. 13, SA 12.2) Updated 08/22/12 COUNCIL CALENDAR o Historical Marker Dedication Day hosted by WHPS September 29, 2012; 11:00-12:00 pm; Solana, west side of Diego’s o Board of Trustees Workshop & Meeting October 1, 2012; 5:00 pm; Council Chambers o Northwest Metroport Chamber’s “State of the Cities” Luncheon October 2, 2012; 11:30 – 1:30 pm; Trophy Club Country Club o 4th Annual Westlake Baja at Vaquero hosted by WAF October 2, 2012; 5-10:00 pm; Vaquero Club o WA Student Holiday; PYP Conferences and Teacher Work Day October 5-8, 2012 o WA Homecoming Football Game October 5, 2012; 5:00 pm o Senior Night – Varsity Volleyball October 11, 2012; 5:30 pm; WA Gym o Van Cliburn Foundation Community Concert October 15, 2012; Home of Dr. Clif & Kelly Cox; Time TBD o WA Student Early Release – Teacher Work Day October 19, 2012; Noon o Westlake Fire-EMS Open House & Community BBQ October 20, 2012; 5:00 – 8:00 pm; Fire Station o Town Council Workshop & Meeting October 22, 2012; 5:00 pm; Council Chambers o 2nd Annual Westlake Classic Car Show hosted by WHPS October 27, 2012; 11 – 4:00 pm; Solana Club parking o Monster Mash hosted by HOC October 27, 2012; Time TBA; WA Campus Town of Westlake Item # 11 – Council Calendar o Board of Trustees Workshop & Meeting November 5, 1012; 5:00 pm; Council Chambers o Town Council Workshop & Meeting November 12, 2012; 5:00 pm; Council Chambers o Texas Municipal League 100th Annual Conference November 13-16, 2012; at the Gaylord in Grapevine o WA Thanksgiving Break November 19-23, 2012 o Thanksgiving Holiday – Town & Academy November 22-23, 2012 o Westlake Community Tree Lighting November 27, 2012; 6-8:00 pm; Town Green o Board of Trustees Workshop & Meeting December 3, 1012; 5:00 pm; Council Chambers o Westlake’s Annual Employee Award & Christmas Dinner Tentative: Evening of Dec 8 or Dec 15; details TBD o Town Council Workshop & Meeting December 10, 2012; 5:00 pm; Council Chambers o WA Final Exam Week – student early release December 17-20, 2012 o WA Holiday Break December 21-January 4, 2012 o Christmas Holiday – Town & Academy December 24-25, 2012 o IB Diploma Ceremony January 11, 2012, time TBA; WA Gym o NE Transportation Summit February 15, 2013, Hurst Conference Center Town of Westlake Item # 12 – Adjournment Back up material has not been provided for this item.