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*************** FY23 PROPOSED BUDGET ***************City of AlvinProposed BudgetFiscal Year 2023Presented to the City Councilon July 7, 2022i
*************** FY23 PROPOSED BUDGET ***************Mission StatementA city government staffed with individuals who, through cooperation,teamwork and pride, serve to provide the highest level of services toits community.By investing in the growth and development of our employees, wesecure a value-centered approach for customer service.This investment results in strategic partnerships, fostering mutualtrust and respect throughout our community.The City of Alvin remains committed to fiscal responsibility; a strongwork ethic; and the belief that our citizens are our customers.Serving with Prideii
*************** FY23 PROPOSED BUDGET ***************Mayor and CouncilTop Row (L to R):Glenn StarkeyCouncilmember District DKeko MooreCouncilmember At Large 1Gabe AdameCouncilmember District ERichard GariveyCouncilmember District CMartin VelaCouncilmember District ABottom Row (L to R):Joel CastroCouncilmember At Large 2Paul HornMayorChris VaughnCouncilmember District Biii
*************** FY23 PROPOSED BUDGET ***************City AdministratorsJunru RolandCity ManagerDixie RobertsAssistant City Manager/City SecretaryMichael HigginsDirector of AdministrativeServicesRobert LeeChief of PoliceMichelle SegoviaCity EngineerRon SchmitzEMS/EmergencyManagement DirectorRex KleselFire DepartmentAdministratorDan KelinskeDirector of Parksand RecreationivSuzanne HannemanCity AttorneyKaren EdwardsHuman ResourcesDirectorBrandon MoodyPublic ServicesDirector
*************** FY23 PROPOSED BUDGET ***************GOVERNMENT FINANCE OFFICERS ASSOCIATIONDistinguishedBudget PresentationAwardPRESENTED TOCity of AlvinTexasFor the Fiscal Year BeginningOctober 01, 2021Executive Directorv
*************** FY23 PROPOSED BUDGET ***************Table of ContentsBudget MessageTransmittal Letter . 1-13Budget IntroductionBudget Calendar . 15Strategic Plan . 17-31Master Plans . 33-45Policies:Budget Process . 47-49Accounting System . 50-54Financial Management Policy Statements . 55-73Fund Balance Policies. 74-75Administrative Policies . 76Donation Policy . 77-79Budget Summaries:Fund Structure . 81Citywide Organizational Chart . 82Summary of Revenues by Source . 83-84Summary of Expenditures by Source . 85-86Total Budget by Fund/Department . 87-88Tax Rate Distribution and Taxable Value History . 89Personnel Summaries. 90-91Major Revenue Sources . 92-99Capital Outlays . 100-101General Operating Fund and Sub-FundsGeneral Operating Fund (111):5-Year Revenue, Expenditure & Fund Balance. 104General Operating Fund Budget Summary . 105Revenues by Type. 106Revenue Detail . 107-108vi
*************** FY23 PROPOSED BUDGET ***************Expenditures by Type . 109Expenditures by Function . 110General Operating Fund Departmental Summary . 111General Operating Fund Organizational Chart . 112Departments:City Manager . 113-115Mayor & Council . 116-117Assistant City Manager/City Secretary:City Secretary . 118-122Economic Development. 123-126Municipal Court . 127-130Municipal Court Judge . 131-132City Attorney . 133-136Administrative Services:Finance. 137-141City Hall Division . 142-143Human Resources . 144-147Police:Law Enforcement . 148-152Animal Shelter . 153-155Fire . 156-159Emergency Management . 160-163Engineering:Engineering . 164-168Inspections . 169-170Code Enforcement . 171-174Parks & Recreation:Parks Administration . 175-179Maintenance & Operations . 180-181Senior Center . 182-184Recreation . 185-187Museum . 188-189Library . 190-191Other Requirements . 192-193vii
*************** FY23 PROPOSED BUDGET ***************General Fund Sub-Funds:Fire Capital Fund (126) . 195Tree Preservation Fund (127) . 196General Revenue Fund (309) . 197General Projects Fund (311) . 198Special Revenue FundsDisaster Fund (100) . 200COVID Relief Fund (CRF) (102) . 201American Rescue Plan Fund (ARPA) (103) . 202Hotel/Motel Tax Fund (121) . 203-207Special Investigations Fund (123) . 208Municipal Court Building Security Fund (124) . 209Municipal Court Technology Fund (125) . 210Juvenile Case Manager Fund (128) . 211-214Park Dedication Fund (129). 215Public, Educational & Government Fees (PEG) Fund (130) . 216Cemetery Fund (511) . 217Donation Fund (512). 218Senior Fund (513) . 219TIRZ Funds . 220Capital Projects FundsSales Tax Fund (312): . 222Street & Drainage . 223-228Code Enforcement . 229-230Sidewalk Fund (320). 231Debt ServiceDebt Service Fund (411) . 233-234Tax Supported Outstanding Debt Issues and Payment Allocation . 235-236General Obligation Bonds & Certificates of Obligation Long-Term Debt Summary . 237-242Water/Sewer Total Outstanding Debt Service . 243-253Bond FundsSeries 2015 Tax & Revenue Cert. of Obligation (235) . 256Series 2018 Water & Sewer System Revenue Bonds (236) . 257viii
*************** FY23 PROPOSED BUDGET ***************Series 2019 Water & Sewer System Revenue Bonds (237) . 258Series 2020 Water & Sewer System Revenue Bonds (238) . 259Series 2021 Water & Sewer System Revenue Bonds (239) . 260Series 2019 Tax & Revenue Cert. of Obligation (318) . 261Series 2020 Tax & Revenue Cert. of Obligation (319) . 262Enterprise FundsAll Utility Funds Revenues by Type . 264All Utility Funds Expenditures by Type . 265Utility Operating Fund (211) . 266-269Water . 270-272Sewer . 273-275Wastewater Treatment Plant . 276-278Administration . 279-281Utility Billing . 282-285Public Services Facility . 286-287Code Enforcement . 288-290Other Requirements . 291-292Utility Debt Service Fund (209) . 293Impact Fees Fund (210) . 294Utility Projects Fund (220) . 295Sanitation Fund (212) . 296-299Emergency Medical Services Fund (213) . 300-304Internal Service FundsInternal Service Fund Summary . 306Fleet Maintenance (611) . 307-311Vehicle Replacement Fund (612) . 312-315IT Support and Maintenance (613) . 316-320Computer Replacement Fund (614) . 321-324Facility Maintenance Fund (616) . 325-329Supplemental InformationCertification & Education Pay Schedule . 331-332Position Listing . 333-335Grade and Step Salary Schedule . 336-337ix
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*************** FY23 PROPOSED BUDGET ***************CITY OF ALVIN216 W. Sealy Office of the City ManagerAlvin, Texas 77511 (281) 388-4230 Fax (281) 388-4221www.alvin-tx.govMEMORANDUMTO:The Honorable Mayor and Members of the City CouncilFROM:Junru Roland, City ManagerDATE:July 7, 2022SUBJECT:Proposed Fiscal Year 2022-23 (FY23) Annual BudgetIn accordance with Texas Statutes and the City of Alvin Charter, I am honored to present to you for yourreview and consideration, the proposed budget for the fiscal year beginning October 1, 2022. Theproposed budget for FY23 is a policy document highlighting the financial responsibilities of the City ofAlvin to City Council and residents. Together with your guidance, staff input and our joint visionarythoughts, we have judicially reviewed the proposed budget and have prioritized items to best meet theneeds of our citizens, as well as our operational objectives.Discussions for the preparation of the Proposed FY23 budget began in January with strategic planningsessions. The City Council, interested citizens and city staff met to formulate and review the City’svisioning process as well as review and update various city ordinances. City Council established visionelements and objectives for the next 3-5 years. These vision elements categorize our focus on:infrastructure, community appeal, organizational excellence, mobility and transportation, and economicdevelopment. In March, staff presented the Multi-Year Capital Improvement Plan and FinancialForecast to City Council, as well as the long-range forecast which outlines the City’s financial outlookfor the next five years.The visioning process, along with the presentation of the capital improvement plan helped set theobjectives and goals for staff to follow in preparation of the FY23 proposed budget. The proposedbudget includes projected revenues and the allocation of expenditures necessary to provide qualityservices to our citizens, meet debt obligations of the City, and fund capital projects needed to sustainthe future growth of the City.Moving forward, a City Council work session is scheduled for August 4, 2022, at which time staff willdiscuss the FY23 proposed budget with City Council. Following the work session, City Council will setthe tax rate cap and public hearing date in order to begin state-required advertising. An additional CityCouncil work session is scheduled for August 9, 2022, for City Council to deliberate and provideguidance to staff for the finalization of the budget.1
*************** FY23 PROPOSED BUDGET ***************The public hearings on the FY23 proposed budget and tax rate will be held on August 18, 2022. Theadoption of the budget and tax rate is schedule for September 1, 2022.Thank you in advance for your consideration and time that will be spent on reviewing the proposedbudget. The remainder of this document includes a summary of the budgetary highlights for FY23.PROPOSED BUDGET IN BRIEFTotal General Operating FundTotal Net Assessed ValueFY22AmendedBudget 19,186,245 1,617,345,081FY23ProposedBudget 20,113,097 1,904,691,927%Change5%18%Ad Valorem Property Tax Rate 0.7680 0.7100(6%)Total Estimated Sales & Use Taxes 8,973,496 9,253,1203%Total Utility Operating Fund 12,724,624 13,449,8256%2332361%Total Full-Time Equivalent EmployeesPROPOSED BUDGETARY HIGHLIGHTSProperty Tax ValuesProperty appraisal values have increased during (tax year) 2022. The Brazoria County Appraisal District(BCAD) preliminary appraised values for 2022 in the City of Alvin is 2,120,844,596. This representsan increase of 410,692,378 or a 24% increase from the prior year certified value of 1,710,152,218. Ofthis increase, 76,395,771 is new taxable value added to the 2022 preliminary appraisal roll. Staff isestimating that after appeals by property owners, less the Tax Increment Reinvestment Zone value of 110,110,439, the 2022 certified taxable assessed value will be approximately 1,904,691,927 - a 18%increase. The City should receive the 2022 certified values from BCAD during the week of July 25,2022.Property Tax RateBased on the 2022 preliminary taxable values, I am proposing to lower the current property tax rateapproximately 5.8 cents – from 0.7680 to 0.7100 per 100 of taxable property value. The City2
*************** FY23 PROPOSED BUDGET ***************previously lowered the property tax rates in FY14, FY15, FY17, FY18, FY20, and FY21. The FY23proposed property tax rate will be officially calculated after the property values have been certified.Sales TaxPer the City Charter, 1/3 of sales tax receipts are allocated to the General Fund for general operatingpurposes; with the remaining 2/3 allocated to the Sales Tax Fund to maintain streets, drainage andsidewalks. Staff anticipates ending FY23 with 9,253,120 of total sales tax revenues – a 3% ( 279,624)increase over the FY22 amended budget – with 6,164,880 allocated to the Sales Tax (Street & DrainageFund) and 3,088,240 allocated to the General Operating Fund.Industrial DistrictState law allows cities to establish an Industrial District within the extraterritorial jurisdiction of a City.This allows cities to attract industry and enhances the economic stability of cities. In November 2013,the City of Alvin renewed the industrial district agreement with Denbury Onshore, LLC (Denbury). Thiscontract extends through December 31, 2023, and consists of Denbury remitting to the City of Alvinannual payments in lieu of property taxes on Denbury’s property. The annual payment is equal to 50%of the amount of ad valorem taxes which would otherwise be payable to the City by Denbury if suchproperty were situated within the city limits of the City of Alvin.Denbury’s industrial district 2022 preliminary appraised property values have increased. As a result,staff is projecting to receive 475,000 for FY23. Below is a historical summary of the Denbury industrialdistrict’s appraised value and annual payments to the City.Fiscal YearAppraised ValueAnnual Payment to City201520162017201820192020202120222023 (preliminary) 217,744,407 161,327,761 90,320,403 110,710,159 118,714,115 142,625,472 122,287,527 100,228,385 134,071,619 944,826 676,447 360,378 436,198 467,713 554,969 469,584 384,843 475,0003% Changein Payment(28%)(47%)21%7%19%(15%)(18%)23%
*************** FY23 PROPOSED BUDGET ***************COMPENSATION & STAFFINGMaintaining a competitive compensation program is a major component to retain and attract qualifiedemployees. This budget takes a large stride at restoring the competitiveness of our compensation plan,nurturing longevity, continuing excellent retention rates, and aiming for more successful recruitmentopportunities.The city operates on two different pay plan structures. The first is a tenure based plan that is establishedthrough the Police Department’s Collective Bargaining Labor Agreement (CBA) and affects only swornpolice officers, except the Police Chief. The second plan affects all other full-time City employees,except the City Manager, City Attorney, and Municipal Judge. This plan is based on annual stepincreases and has a ceiling for all employees, both non-exempt and exempt. Annual step increases aresubject to Council approval through the budget process and fund availability.For FY23, I am proposing the continuation of the Annual Step Increase plan which allows for a 2%annual increase. In addition, to the Annual Step Increase plan, I am proposing a 3% cost of livingadjustment for eligible full-time employees not covered under the CBA. Even more, I am proposingthe continuation of the 2% performance merit increase for eligible employees who significantly exceedexpectations during their annual performance review; and, also the continuation of certification payopportunities to encourage employees to obtain and/or maintain standards that would assure that theemployee has and is continuing to meet certain standards of competence.The current CBA ends September 30, 2022, and the City’s management team and the Alvin PoliceOfficers Association are in the final stage of negotiations for the renewal of the CBA, which would beeffective October 1, 2022 (FY23) upon City Council’s approval. Staff will present the proposed CBAto City Council in July, for review and subsequent adoption in August. The FY23 proposed budgetincludes all of the financial provisions negotiated in the proposed CBA.New Employees/ReclassificationsBelow is my FY23 recommendations for additional employees and reclassifications. The related costsinclude the projected total personnel package (base pay, payroll taxes, and retirement). One (1) Communication/Dispatch Officer – PG 20 ( 49,030)One (1) Facility Maintenance Technician III – PG 23 ( 56,759)One (1) Code Compliance Officer I – PG 20 ( 49,030)Four (4) Part-Time Recreation Summer Camp Counselors ( 18,240)Reclassification of Administrative Assistant II to Executive Secretary – PG 24 ( 10,216)Reclassification of CVB Coordinator to Marketing and Tourism Officer – PG 27 ( 10,823)Reclassification of Asst. Fire Marshall to PG 26 ( 980)4
*************** FY23 PROPOSED BUDGET ***************Group InsuranceThe City provides health, dental and vision benefits for full-time employees through the Texas MunicipalLeague’s (TML) health insurance pool. Employees choosing dependent coverage reimburse the City forpremiums through payroll deductions. Currently, the City pays 100% of the cost of health, dental, andvision for full time employees and 50% of the cost of health, dental, and vision for qualified dependents.This budget reflects a 5.51% increase in health insurance premiums for FY23.The claim loss ratio for the City of Alvin is 85.4% for the current plan year. A claim loss ratio is theratio of what an insurance company pays in benefits (claims) and associated expenses to what is collectedin premiums, expressed as a percentage. The standardized claim utilization loss ratio should be near85% or lower for appropriate contribution offset, with administrative and reinsurance costs averagingthe remaining 15%. The City’s claim loss ratio is a testament to the efforts of the Human ResourcesDepartment and emphasis on health awareness via the employee health fair and other health-awarenessinformation provided to employees. Keeping the City’s claim loss ratio in close proximity to the 85%industry target level helps keep the City insurance rates from escalating exponentially. The increase inpremiums is primarily a result from COVID related claims over the past few years.Texas Municipal Retirement System (TMRS)The City participates in the Texas Municipal Retirement System (TMRS). TMRS is a statewideretirement system established in 1947 that provides retirement, disability, and death benefits foremployees of participating cities. TMRS calculates the City’s required contribution rate based on anactuarial formula that takes into consideration the City’s pension liabilities compared to its pensionassets. The City’s required contribution rate for 2023 will be 17.27% of gross salary. This is a 0.7585%increase from the City’s 2022 required contribution rate of 17.14%.Changes to the funding ratio and contribution rate are largely due to changes in the assumptions used bythe TMRS actuaries in calculating the current and future liabilities of the City’s plan. The City’scontribution rates are established by TMRS to achieve 100% funding of the City’s pension liability overtime. The City’s TMRS planned funding currently stands at a healthy 87.6% of the City’s pensionobligation, which is better than the industry benchmark of 80%. The city’s participation in the TMRSsystem provides a financially sound pension for employees.5
*************** FY23 PROPOSED BUDGET ***************Debt Issuance & Capital FundingThe City of Alvin rece
CITY OF ALVIN Office of the City Manager . 216 W. Sealy Alvin, Texas 77511 (281) 388-4230 Fax (281) 388-4221 . MEMORANDUM . TO: The Honorable Mayor and Members of the City Council . www.alvin-tx.gov . 1 ***** FY23 PROPOSED BUDGET ***** The public hearings on the FY23 proposed budget and tax rate will be held on August 18, 2022 .
