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ADOPTED ANNUAL BUDGETFor the Fiscal Year 2020‐2021City of Stephenville, Texas – 298 W. Washington St. – Stephenville, TX 76401 – (P) 254.918.1220 – www.stephenvilletx.gov
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City of StephenvilleAnnual Adopted Operating BudgetFiscal Year 2020‐2021This budget will raise more revenue from property taxes thanlast year’s budget by an amount of 328,537, which is a 5.23%percent increase from last year’s budget. The property taxrevenue to be raised from new property added to the tax roll thisyear is 48,163.The members of the governing body voted on the budget as follows:FOR: Mark McClinton, Justin Haschke, Nick Robinson, Brady Pendleton,Ricky Thurman, Alan Nix, Gerald Cook, Brandon HuckabeeAGAINST: nonePRESENT and not voting: Doug SvienABSENT: noneProperty Tax Rate Comparison2020‐20212019‐2020Property Tax Rate 0.4550/ 100 0.4700/ 100No‐new‐revenue Tax Rate: 0.4347/ 100 0.4437/ 100No‐new‐revenue Maint. & Operations Tax Rate: 0.4165/ 100 0.4249/ 100Voter Approval Tax Rate: 0.4574/ 100 0.4707 100Debt Rate: 0.0182/ 100 0.0188/ 100Total Debt obligation for City of Stephenville secured by property taxes: 14,465,000.
Annual Adopted Operating BudgetCity of Stephenville, TexasFiscal YearOctober 1, 2020 through September 30, 2021MayorDoug SvienCouncilPlace 1Mark McClintonPlace 2Justin HaschkePlace 3Nick RobinsonPlace 4Brady PendletonPlace 5Ricky ThurmanPlace 6Alan NixPlace 7Gerald CookPlace 8Brandon Huckabee
City ManagerAllen L. BarnesStaffDeputy City ManagerJason M. KingDirector of Finance & AdministrationMonica D. HarrisDirector of Utilities & Public WorksNick WilliamsPolice ChiefDan M. Harris Jr.Fire ChiefJimmy D. ChewDirector of Development ServicesSteve KillenDirector of Parks & Leisure ServicesJennifer BashamCity SecretaryStaci L. KingOperating Budget document prepared by theFinance Department
Table of ContentsOverviewMessage from the City Manager . 1Budget In Brief . 3Organizational Chart . 20The Budget Process . 21Budget Calendar . 25Community Profile . 28Miscellaneous Statistical Information . 32Financial SummaryBudget Summary All Funds . 35Budget Comparison Report . 39Statement of Activities . 50General Fund . 54General Fund Summary. 58General Fund Revenues . 60General Fund ExpendituresCity Council. 66City Manager . 68City Secretary . 701Emergency Management . 74Municipal Building . 77Municipal Service Center . 80Human Resources . 83Downtown Department . 86Finance . 88Information Technology . 922020‐2021 ADOPTED BUDGETi
Table of Contents continuedTax Services . 95Legal Counsel . 96Municipal Court . 99Street Maintenance . 103Parks and Recreation . 106Library . 111Senior Citizens . 115Splashville Aquatic Center . 119Fire & EMS . 122Police. 127Development Services . 134Transfers . 138Utility Fund . 140Utility Fund Summary . 142Utility Fund Revenues . 144Utility Fund ExpensesUtility Administration . 147Water Production . 151Water Distribution . 155Customer Service . 159Wastewater Collection . 163Wastewater Treatment . 166Utility Billing & Collections . 168Non‐Departmental . 170Sanitary Landfill Fund . 172Sanitary Landfill Fund Summary . 1742020‐2021 ADOPTED BUDGETii
Table of Contents continuedSanitary Landfill Fund Revenues. 176Sanitary Landfill Fund Expenses . 177Airport Fund . 179Airport Fund Summary . 180Airport Fund Revenues . 182Airport Fund Expenses . 183Storm Water Drainage Fund. 185Storm Water Drainage Fund Summary . 186Storm Water Drainage Fund Revenues . 188Storm Water Drainage Expenses . 189Special Revenue Funds . 190Hotel Occupancy Tax Fund . 190Child Safety Fund . 198Court Technology Fund . 202Public Safety . 206Tax Increment Financing (TIF) Fund . 209Capital Improvements . 213Capital Improvements Policy. 213Capital Improvement & Equipment Replacement . 216Capital Projects Fund . 220Debt Service. 224Debt Service Policy . 224General Debt Service Fund . 227Debt Service Fund Summary . 2302020‐2021 ADOPTED BUDGETiii
Table of Contents continuedGeneral Fund Capital Leases. 233Utility Fund Debt Service. 237Storm Water Drainage Fund Debt Service . 242Discrete Component UnitStephenville Economic Development Authority . 245SEDA Summary . 246SEDA Revenues . 248SEDA Expenditures. 248PersonnelFull Time Employee History . 251Approved City Employee Positions . 253Pay Plan . 259Disclosure of Employee Benefits . 275Holiday Schedule . 277Supplemental Pay . 278Health Insurance . 280Dental Insurance . 280Take Home Vehicle Schedule . 281Pay Dates . 282Supplemental Information . 283Property Tax Rates in Stephenville . 283Taxable Property Values, Tax Rate, Levy, and Collections . 284Certified Tax Roll Comparison . 286Cost of General Fund Services Per Parcel. 287Cost of General Fund Services Per Capita . 288Fee Schedule . 2902020‐2021 ADOPTED BUDGETiv
Table of Contents continuedBudget Ordinance . 308Tax Rate Ordinance . 309PoliciesComprehensive Fund Balance Po . 310Fiscal and Budgetary Policies . 313Basis of Accounting/Budgeting . 324Budget Glossary . 3272020‐2021 ADOPTED BUDGETv
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OVERVIEW.Allen L. BarnesCity ManagerIt is my honor to present, for your consideration, the City of Stephenville Annual OperatingBudget for the fiscal year beginning October 1, 2020. As required by the City Charter and theTexas Constitution, the budget is balanced by the use of anticipated revenues and current fundbalances to fund the anticipated expenditures necessary for orderly and efficient operation ofthe city’s governmental and enterprise functions. This budget accurately represents theanticipated revenues and expenditures for Fiscal Year 2020.As of October 1, 2020, we anticipate having a total fund balance of 40,879,520 along withprojected budget year revenues of 30,636,385 across all funds. We anticipate expenditures of 56,089,179. This amount includes anticipated expenditures for the East Side Sewer Project andthe CDBG GLO storm water drainage project, as well as other projects carried over from FY 2020.The proposed budget anticipates the use of 25,452,794 of fund balance in FY 2020. This is aresult of carrying over 29,604,675 of expenditures budgeted in FY 2019‐2020 not anticipated tobe expended. Reserves are used to partially fund the 536‐acre wellfield project and storm waterdrainage on Graham Avenue. At year’s end, we anticipate a total fund balance of 15,426,726 ofwhich 6,349,462 will be unrestricted.As of October 1, 2020, the Stephenville Economic Development Authority Board, the discretecomponent unit governing body, anticipates a total fund balance of 915,000 with projectedbudget year revenues of 521,465. The SEDA Board anticipates expenditures of 519,311, whichincludes 122,000 in economic development projects and 10,000 in community development2020‐2021 ADOPTED BUDGET1
At the proposed tax rate of 0.4550 per 100, the proposed budget includes three newFirefighter/EMT positions, a new Planner position, and changing one part‐time employee at theLandfill to full‐time. The budget also includes salary increases for employees based upon a 1.50percent cost of living increase for most employees. The General Fund proposes 1,020,031 incapital spending which includes replacement programs of 922,031 and new programs of 98,000. The street repair program will spend 967,565 in new appropriations, which is fundedthrough 8 percent of sales tax and 8 percent of property taxes dedicated to street repair andreplacement.OVERVIEW.projects. At year’s end, the SEDA Board anticipates a total fund balance of 917,728; 259,656is reserved for 3 months operations, 165,000 is reserved for specific economic developmentprojects, 400,000 is reserved for an economic development growth fund, and the remainder isrestricted to economic development in general.We have continued including projected future budgets along with the proposed budget. We arepresenting not only the operating budget for Fiscal Year 2020, but are also reflecting trends wesee in the next four years. We continue to prepare the budget using a return on investmentphilosophy, rather than the traditional governmental approach. This budget was prepared usingthe zero‐based budgeting approach, which requires each department to justify all expendituresfor the budget year.Due to the uncertainty of COVID‐19, there are no new programs included in this budget. We arecontinuing with the new programs from last year, some of which were affected by COVID‐19. Weare still developing an employee incentive program and have again included 25,000 in thebudget for this program, as well as 5,000 for merit awards.We have seen a significant impact on budget preparation from Senate Bill 2. The implementationstatewide did not go as our legislature planned. There were many timeline issues and many CADsfailed to return the certified ad valorem roles in a timely manner. It is our hope that as weprogress in the Senate Bill 2 era, the issues encountered this year will not be seen in the future.In closing, this proposed budget is the budget for the City of Stephenville Operations for 2020‐2021. It is not staff’s budget, it is not the Council’s budget but it is our resident’s budget. Assuch, we strive to maintain the highest level of transparency in the budget process and the city’sfinances throughout the year. We, as public servants, must NEVER forget that the money wehandle comes from the hard‐working men and women who call Stephenville home. It shouldforever be our goal to do what we can to make Stephenville better every day.2020‐2021 ADOPTED BUDGET2
The 2020‐2021 City of Stephenville Program of Services totals 330,636,385 in revenues and 56,089,179 in expenses. Of the amount budgeted for total expenses, approximately 19.94million is for continued operations, 32.9 million capital projects and replacement, and 3.2million for debt service. The city budget for continued operations has been decreased by 186,880 compared to the 2019‐2020 original budget.OVERVIEW.Budget In BriefThe Stephenville Economic Development Authority (SEDA), a discrete component unit of the City,Programs of Services totals 519,311. Information and analysis of the SEDA budget can be foundin the Discrete Component Unit section of this document.Below is a summary of revenues and expenses by fund. An in‐depth analysis of revenues andexpenses can be found in the Financial Summary Section of the document.General Fund RevenuesGeneral Fund revenues are expected to total 16,261,420, a decrease of 873K over the FY 2019‐2020 budget, which included 400,000 more in one‐time grants, 150,000 more in interestincome, and 250,000 in insurance proceeds. Sales tax revenues are budgeted 5% lower thanthe FY 2019‐2020 budget due to the unknown future impact of COVID‐19. Property taxesbudgeted are 3.5% higher than the FY 2019‐2020 budget.Property tax revenue is expected to total 6,646,823, 6.38 million in the General Fund and 264K in the Debt Service Fund, based on decreasing the tax rate to 0.4550 per 100 of taxablevalue. Decreasing the rate to 0.4550 per 100 of taxable value still enables the City to absorbcost increases in personnel, budget for capital replacements of 1,020,031, and budget for capitallease obligations of 319,174. The deficit of 386,258 is the result of re‐appropriating unspentfunds in FY 2019‐2020 budget, transferring 160K of committed fund balance to the Airport forrunway expansion, and transferring 246K of funds for TIF debt service that will be repaid infuture years. Property tax revenue makes up approximately 39% of the general fund revenues.Property taxes represent one of the most stable revenues of the City, as unpaid taxes becomeliens on the property. Taxable property valuations increased 5.36% from 1.381 billion last yearto 1.455 billion this year due to an increase in appraisals, as well as 10.5 million from newproperty. The average value per home has risen from an average taxable value of 128,294 lastyear to 138,373 this year.Total Appraised Value 1,454,845,6632020‐2021 ADOPTED BUDGET3
OVERVIEW.Below is a table reflecting historical taxable property values:City of StephenvilleTaxable Property 0162017201820192020The average home’s city tax bill will increase from 602.98 to 629.60 because of the overallincrease in taxable values, but is subject to each home’s individual appraisal. The portion of thetax rate applied to debt service will be 0.0182 compared to 0.0188 from FY 2019‐2020. Withthe increase in property values and the decrease in the interest and sinking tax rate, themaintenance and operations portion of the tax rate will increase to 0.4368 per 100 propertyvaluation, compared to 0.4512 from FY 2019‐2020. Revenues will increase by 124,468.Operations and Maintenance Tax RateInterest and Sinking Tax RateTotal Tax Rate 0.4368 0.0182 0.45502020‐2021 ADOPTED BUDGET4
Example 1:Assessed Value increasing 5.69% from 250,000 to 264,225.Tax YearAssessed ValueTax RateTaxes Due2019 250,000 0.4700 1,175.002020 264,225 0.4550 1,202.22OVERVIEW.Examples of how tax bills are affected by assessed values and tax rates are illustrated below:Example 2:Assess Value decreasing 2.35% from 125,000 to 122,063.Tax YearAssessed ValueTax RateTaxes Due2019 125,000 0.4700 587.502020 122,063 0.4550 555.39Below is a table reflecting the historical relationship between the tax rate and the tax levy.TAX LEVY AND TAX ,000,0001,000,000TAX �1513‐1412‐130.2000TAX RATE5,000,00011‐12TAX LEVY7,000,000TAX RATE2020‐2021 ADOPTED BUDGET5
OVERVIEW.Sales tax collections decreased, due to the impact of COVID‐19, and fell short of budgetedexpectations in FY 2019‐2020 by 223,000, decreasing approximately 2.64% or 157,000 fromcollections in FY 2018‐2019. Sales tax revenues are budgeted to be 5% lower than budgeted forFY 2019‐2020. Although there are several major sales generators in the planning phases, nearbeginning construction, or in construction, sales tax is based on current trends and populationgrowth from student enrollment at Tarleton State University. Sales tax collections have grown35% over the last decade. 55,200,0005,281,6634,920,0004,250,0002014‐15 34,616,3134,250,000 44,275,5454,250,000 55,191,213 6 82013‐142012‐132011‐122010‐11 12009‐10MillionsSales Tax Receipts (General Fund)2020‐2021 ADOPTED BUDGET6
Development related revenues are budgeted for 251,000, which include building permits,inspections, and zoning related fees. Rate increases were approved for most developmentservices and permits.OVERVIEW.General Fund Revenues ContinuedUser Fees are reviewed annually for cost analysis and comparative services. Most recreationfees, parks maintenance fees, cemetery fees, copy fees, false alarm fees, and plan review feesremained the same. A few new fees were added for clarity or to address an increase in demandfor a service.For more information on General Fund revenues, turn to the “General Fund” section of thebudget.General Fund Transfers InThe General Fund provides administration services to the Water and Sewer Fund, Landfill Fund,and Storm Water Drainage Fund and is budgeted 683,841 for reimbursement. Each year theCity of Stephenville analyzes what services the General Fund provides to the Enterprise funds andbudgets the appropriate transfer to pay for these services, such as payroll, purchasing, accountspayable, administration, etc.General Fund ExpendituresGeneral Fund expenditures are budgeted to total 15,958,251, which is a decrease of 7% fromthe FY 2019‐20 budget as amended. The major expense changes are listed below by category.Salaries and benefits are expected to increase .17% from the FY 2019‐2020 amended budget.The employment and salary policy approved by Council on September 17, 2019, was utilized tocalculate the annual cost of living adjustment by applying the 1.5% CPI increase to the midpointof each classification. The adopted pay plan was increased by .75% (1/2 of the CPI increase). Thebudget includes a new Planner position in Development Services and three Firefighter/EMTpositions in the Fire Department. Personnel costs were decreased by approximately 3.5% toaccount for anticipated savings for vacancies during the year. The City rebid its health insurancecontract in May 2020 and received a 2% decrease compared to the prior year. The City’scontribution rate for the Texas Municipal Retirement System (TMRS) will increase from 6.87% to7.83%, which is a result of changes in actuarial assumptions.2020‐2021 ADOPTED BUDGET7
Operating expenditures are expected to decrease by 132,000 or 3.69%. The City moved to azero‐based budgeting approach, which required the substantiation of all costs. The Parks andRecreation Department will continue to provide a multitude of both youth and adult services andto assist in funding other special events for the community. Adult programs are designed to becost neutral. Youth programs are designed to subsidize the cost by 30%. Splashville is expectedto recoup 52% of total expenditures. The FY 2020‐2021 budget contains 89,100 for specialevents. We continue to participate with the North Central Texas Council of Governments aerialand mapping program. The Development Services budget includes 20,000 this year to fund codeenforcement mowing, debris removal, and demolition of substandard structures.OVERVIEW.General Fund Expenditures ContinuedCapital Outlay of 1,020,031 is budgeted, of which 656,732 is carryover of projects notcompleted in FY 2019‐2020. The budget includes new expenditures of 99,000 to continue ourfleet and equipment replacement program and 48,000 for an asphalt hot box for the StreetDepartment. 68,000 is budgeted for the relocation and replacement of the a
City of Stephenville, Texas - 298 W. Washington St. - Stephenville, TX 76401 - (P) 254.918.1220 - www.stephenvilletx.gov . Texas Constitution, the budget is balanced by the use of anticipated revenues and current fund balances to fund the anticipated expenditures necessary for orderly and efficient operation of .
