For the year beginning October 1, 2012

2012-13

Annual Operating and

Capital Budget

Elected Officials and Management Staff

Elected Officials

Malcolm P. Duncan, Jr.

Mayor

Mayor Pro Tern Alice Rodriguez

Council Member Wilbert Austin

Council Member John Kinnaird

Council Member Toni Herbert

Council Member Kyle Deaver

Management Staff

City Manager .. . .. . ... . . . . . . . . . . .. . . . . . . . . Lany D. Groth, P.E. Health Director ........... .................... Sherry Williams

City Attorney ........... .............. ......... Jennifer Richie Housing Director .................. .......... : ......... Jeff Wall

City Secretary ............... ................ Patricia W. Ervin Human Resources Director ............... Gary Johnson

Municipal Court Judge ......................... Chris Taylor Infornlation Technology Director ....... Ron Holland

Deputy City Manager ................... Dale Fisseler, P.E. Library Director ................ ................ James Karney

Assistant City Manager ........... George Johnson, Jr. Municipal Information Director . . . . . . . . . .. . Lany Holze

Assistant City Manager .............. .... Wiley Stem, III Parks and Recreation Director ............. Rusty Black

Airport Director .................................. Joel Martinez

Budget Manager ..................................... June Skerik

Building Official . .. ..................... .. Randall Childers

Planning Director ........ ......................... Clint Peters

Police Chief ......... .. ............ .. Brent Stroman

Public Works Director .... ............... ...... Mark Hines

Convention & Visitors' Director ..... Elizabeth Taylor Ranger Hall of Fame Director .......... Byron Johnson

Finance Director ............................. Janice Andrews Transit Manager ........................ John Hendrickson

Fire Chief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . John Johnston Utilities Director .................................. Ricky Garrett

General Services Director ... .......... Gary Urban Cameron Park Zoo Director ......... ..... Jim Fleslunan

2

Table of Contents

Elected Officials and Management Staff ....................................................................... 2

Organization Chart ........................................................................................................... 4

City Manager's Letter ..................................................................................................... 5

City of Waco Goals ........................................................................................................... 6

Budget Highlights ............................................................................................................ 7

Revenues and Expenditures Summary ............................................................................................................. 10 Graphs ................................................................................................................ 11

General Fund Comparison of Services .................................................................................. 12 By Function ....................................................................................................... 13 Revenue and Expenditure Summary ............................................................. 14 Graphs ..................................................... ........................................................... 15

Funds Summary .............................................................................................................. 16

Capital Improvements Program ................................................................................... 17

Budgeted Positions Summary ...................................................................................... 18

Where to Go for Additional Information ..................................................................... 19

3

CITYQFWACO

Citizens

Mayor & City Council Policy

Mayor Malcolm P. Duncan, Jr.

Mayor Pro Tem Alice Rodriguez Wilbert Austin, John Kinnaird,

Toni Herbert, Kyle Deaver

I I I I

City Attorney City Manager City Secretary Municipal Larry D . Groth, P.E.

Court Judge Jennifer Richie Patricia W. Ervin

City Manager Chris Taylor

General Administration Budget/Internal Audit

Finance

I I I I

Dale Fisseler, P.E. Wiley Stem, III George Johnson, Jr. Deputy City Manager Assistant City Manager Assistant City Manager

Municipal Information General Services Waco Regional Airport • Fleet

Planning • Purchasing Cameron Park Zoo

• Facilities Building Inspection! Economic Development

Code Enforcement • Risk Management

Human Resources Waco T ransit

Public Works Information Technology • Engineering!GIS Library

Parks & Recreation! • Traffic

Streets Golf Course Convention Center

•

Utilities Police & Visitor's Services

• Water Fire Health • Wastewater Solid Waste

• WMARSS Texas Ranger Museum Housing

4

October 1, 2012

To The Citizens of Waco:

It is my privilege as your City Manager to present a Budget-in-Brief of our recently adopted

fiscal year 2012-13 Budget. Our budget is the product of a great deal of reflection,

coordination, and discussion. The budget is the major annual planning effort because it funds

the many excellent services that we provide.

The City of Waco is committed to the efficient delivery of quality products and services to its

citizens. This commitment is the foundation behind policy decisions and priorities that ensure

constructive and well-formulated strategic plans for the growth of our city. This budget

continues to focus on citizens' interests expressed through goals established by the Council.

Our objectives in preparing this budget were: • Meet the Council's stated Goals • Adequate funding to ensure quality customer service to our citizens at all levels of

our organization • Promote a safe and positive environment to improve the culture and quality of life

for our citizens • No tax rate increases • Maintain fund balances by the end of FY 2012-13 that meet our stated financial

policies

Though we are faced with a number of challenges, the staff is committed to help make the City

of Waco a wonderful place to live.

�� Larry D. Groth, P.E.

City Manager

5

City of Waco Values and Goals

Values

Equal Access to All Services and Benefits

CustomerlRegulation Friendly in all Actions and Interactions by !be City of Waco

Think and Act Systemically to Build a Healthy Community

Strategic Intent I

High Quality Economical City Services and Facilities

Strategic Intent II

Aggressively Competitive Economic and Community Development

Strategic Intent III

Safe, Environmentally Sound, Pedestrian Friendly Community

Strategic Intent IV

Improved Housing Options, Opportunities, and Conditions

Strategic Intent V

Enviable Culture and Quality of Life

Strategic Intent VI

Effective Policy and Administmtion

Strategic Intent VII

Market Waco Internally and Externally

6

2012-13 Budget Highlights

Total Operating Budget The adopted 2012-13 operating budget is $199,371 ,175 an increase of 2.3% compared to the 2011-12

adopted operating budget of$194,930,249. Major funding items include:

A 3.0% salary increase for all regular full and part time employees

$1,250,000 for the Economic Incentive Fund • $6.2 million for New Services and Equipment Replacement

$19,297,072 for Fire Services

$30,413,571 for Police Services

$39,461,411 for Water Services

$21,576,455 for Wastewater Services

$16,202,547 for Solid Waste Services • $11 ,671 ,871 for Employee Health Insurance Services

The City of Waco is committed to the efficient delivery of quality services to its citizens. This

commitment is the foundation behind policy decisions and priorities that ensures constructive and

well-formulated plans for the growth of our City. We are committed to a balanced budget that

provides the desired services our citizens expect while at the same time continuing our economic

development efforts throughout the city. The state of the economy is always a driving force that

dictates most of the challenges we face each year when starting the budget process. Our current

fiscal condition is stable and improving in many areas which is encouraging. However, the uncer

tainty about funding levels for some of our existing federal and state grants; ever increasing ex

penses, especially fuel and health insurance; employee compensation; staffing needs due to ex

panded operations and departmental capital needs are some of the challenges.

One major challenge this year was funding health insurance. Claims for the past twelve months

were much higher than normal and were negatively impacting the financial condition of the Health

Insurance Fund. To improve this shortfall the city is increasing its contribution by 10%; all employees

will now pay a monthly premium; dependent premiums will increase; and the plan design will change.

These steps and the continuation of our wellness program initiatives should stabilize the costs of this

important employee benefit. The price of fuel and fuel related expenses was a key issue again this

year. We have budgeted these expenses as rational as possible at the levels of pricing that we feel

the trends are showing us. The emphasis on economic development is funded with the continued

financial support of our CUlTent partnerships and with funding for marketing our city and its ameni

ties. The Capital Improvements Program includes continued improvements for the airport, streets,

sidewalks, building renovations, fire, radio operations, parks, water and wastewater as we provide

for the future needs of our citizens. The initiative of funding capital programs in operations that are

normally bonded is continued in General Government operations and expanded to include Water and

Wastewater with the long term goal of totally funding the CIP with cash.

7

2012-13 Budget Highlights

Salary and Wage Increases For FY 2012-13, we are recommending a salary package with a 3% pay adjustment for all employees. Civil service employees will also receive a job class step increase, if eligible. Salary is only one

aspect of compensation. Employee benefits include health insurance, longevity pay, a 2-1 match for

the Texas Municipal Retirement System (TMRS), disability coverage and life insurance.

Total Employee Positions Departments continually evaluate their staffing needs as positions become vacant during the year,

review positions that have been vacant for a considerable amount of time and assess operations for

efficiencies in the workforce. This budget reflects a net decrease of3.87 full time equivalent posi

tions over last year's budget due partly to the outcome of those evaluations. This reduction in total

workforce was achieved even though 12 full time additional employees are budgeted for FY 2012-13

in Audit, Streets, Water, Wastewater, Solid Waste and WMARSS due to expanded operations. The

elimination of our Rosemound Cemetery and Aquatics operations offset most of the positions that

were added. We will continue to do the things that get the citizens better customer service and

quality city services in a proactive manner.

General Fund The General Fund revenue budget of$98,991 , 150 is based on a modest increase in revenues of2.6%

over last year's adopted budget, due mainly to the increase from ad valorem and sales taxes which

offset a decline in some fines and admission charges. No tax rate adjustment is proposed for FY

2012-13. Some of the revenue decreases and health insurance increases are equalized by a reduc

tion in some key expenses that normally require significant increases such as electricity.

General Fund Revenues The General Fund is balanced principally through the following factors:

Growth in property tax assessments-New construction and increased valuations contributed to the

2.97% growth in the property tax base. New construction assessments are budgeted at a healthy

increase of$82 million for FY 2012-13.

Sales Taxes - The volatility of retail sales makes it extremely hard to project this revenue with

confidence. In a normal year, sales tax revenues are expected to be at least slightly higher than the

previous year and be a fundamental source for balancing the budget. Even though we are expecting

to end the year significantly over budget, we have chosen to project this revenue with only a 1.7%

increase over the current adopted budget. This revenue is extremely volatile and is effected by so

many factors that we have no control over. Our preference is to be conservative in this area of the

budget and use any excess receipts for one-time purchases towards the end of the fiscal year.

8

2012-13 Budget Highlights

General Fund Expenditures The largest increase in General Fund expenditures is about $1.8 million for the salary adjustment

discussed earlier. Although there are few additions included for FY 2012-13, the major changes in

the General Fund are: • Increased funds for capital projects in Streets, Facilities and other General Fund supported

departments -$780,000 • Added a street crew for base failure maintenance - $170,000 • Added funds for the dispatch microwave relocationireconfiguration -$130,000 • Added funds for mowing city lots -$100,000 • Added funds for updating the Comprehensive Plan -$100,000 • Added staff for audits of city operations - $69,000 • Added replacement equipment for Police and Fire-$62,000 • Reduced electricity expense for General Fund departments - ($300,000)

Fee Revenues Due to the economy, most revenues have remained relatively flat for the last five years and resulted

in slower growth than in previous years. This trend is expected to continue in a number of areas for

next year. User fees were reviewed and subsequently revised, added or deleted for Convention and

Visitors' Services, Engineering, Fire, Health, Parks and Recreation, Planning, Traffic, Water, Waste

water, Cottonwood Creek Golf, and Cameron Park Zoo. All utility service rates and Solid Waste

service rates will remain the same as the current year.

Utility Rates No service rate increase is necessary for water or wastewater customers for FY 2012-13. Residen

tial, commercial, and industrial water and wastewater customers have only had one rate increase in

the last five years.

Solid Waste residential, commercial, roll-off and landfill rates will remain the same for FY 20 12-13.

No changes for any solid waste fees are included.

Capital Improvements Program The adopted FY2012-13 C I P (Capital Improvements Program) is $19,813,018 for General Govern

ment and Street/Sidewalk Improvements, Wastewater Improvements and Water Improvements.

9

Revenue Summary

2012-13

Adopted

Sales Tax 27,732,766

Property Tax 50,772,487

Business Taxes 9,609,197

Permits, Fines & Charges 3,328,724

Utility Funds 67,021,164

Other Funds 31,629,613

Interest on Investments 203,439

Miscellaneous 1,953,889

Intergovernmental 4,801,700

Transfer from Surplus 2,318,196

Total Operating Revenues 199,371,175

Capital Improvements Program 19,813,018

Total Revenues 219,184,193

Expenditure Summary

2012-13

Salaries & Benefits

Services & Supplies

Other Expenses

Contracts with Others/Contributions

Transfers & Billings

Capital Outlay

Debt Service

Total Operating Budget

Capital Improvements Program

Total Expe nditure s

10

Adopted

90,987,382

44,072,899

19,244,323

3,519,609

1,572,142

9,098,608

30,876,212

199,371,175

19,813,018

219,184,193

Percent

Total

12.65%

23.17%

4.38%

1.52%

30.58%

14.43%

0.09%

0.89%

2.19%

1.06%

90.96%

9.04%

100.00%

Percent

Total

41.51 %

20.11 %

8.78%

1.60%

0.72%

4.15%

14.09%

90.96%

9.04%

100.00%

Revenue Summary

Other Funds

crp

9%

14% ----J'

Utility Funds

31%

Sales Tax

13%

Prop erty Tax

/ 23%

,r----

Fees, Permits,

Charges, Other

6%

Business T axes

4%

Expenditure Summary

Salaries &

Benefits

42%

CIP

9%

De b t Serv ice

14%

11

Operating

Expenses

31%

Capital Outlay

4%

General Fund The General Fund is the largest of all City funds and the fund that attracts the most public attention

and interest, because of its two major revenue sources - sales tax and property (ad valorem) tax.

The following chart illustrates the value citizens get from the $98+ million General Fund for their

rt d 11 prope wtax o ars.

Cost of City Services

($0.78623211 00 Valuation)

Based on an average home value 0[$118,663 with a homestead exemption 0[$15,082, a household pays $814.39 in city taxes [or the year, or $67.87 per month, to support these city services:

• 24 hour Police Protection · 24 hour Fire Protection • Maintenance of 600 miles of paved and unpaved public streets · Street signals and lighting · Four library facilities and services which circulates books, video & audio tapes • 1,500 acres of developed Parks · Park facilities including softball fields · Recreational facilities & activities including jogging tracks • Animal Control services · Building Inspections & pennitting services • Code Enforcement Services · Emergency & Disaster Management · Municipal Court · Economic Development • Partial subsidies for:

· Public Health Services • Cameron Park Zoo · Heart of Texas Community Health Center

In comparison, the cost of: Preferred Cable TV is $49.99 plus tax per month.

The average cost for electricity is $95.17 11000 kwh per month. An average Natural Gas bill was $45.30 per month for the year ending July 2012.

One night at the movies for a family of four with soft drinks and popcorn is $40 -$50.

Infonnation provided by Grande Communications, powertochoose.org, Atmos Energy, Starple

Cinema and McLennan County Central Appraisal District.

12

Leisure

12%

General Govt

12%

General Fund by Function

General Govt

Leisure Services

Public Safety

Public Srvcs/ Works

Misc

Misc

14%

Total

13

12,069,267

12,330,756

54,932,430

6,361,366

13,297,331

98,991,150

Public Safety

Works

6%

General Fund Revenue Summary

2012-13

Adopted

Sales Tax 27,732,766

Property Tax 45,423,479

Business Taxes 12,603,743

Licenses & Permits 764,322

Intergovernmental 1,477,526

Charges for Services 1,523,752

Fines 1,431,852

Interest on Investments 55,000

Miscellaneous 7,928,710

Other Financing Sources 50,000

Total General Fund Revenues 98,991,150

Ge ne ral Fund Expe nditure Summary

2012-13

Adopted

Salaries & Benefits 67,958,107

Services & Supplies 16,210,334

Other Expenses 643,760

Contracts with Others/Contributions 11,764,847

Transfers & Billings 1,194,164

Capital Outlay 1,219,938

Percent

Total

28.02%

45.89%

12.73%

0.77%

1.49%

1.54%

1.45%

0.06%

8.01%

0.05%

100.00%

Percent

Total

68.65%

16.38%

0.65%

11.89%

1.21%

1.23%

Total General Fund Expenditures 98,991,150 100.00%

14

Property Tax

46%

General Fund Revenues

Sales Tax

28%

Business Taxes

13%

Miscellaneous

8%

General Fund Expenditures

Capital &

Transfers

2%

Operating

Expenses

29%

15

Salaries &

Benefits

69%

Fwtds Summary

2012-13

General Fund

Special Revenue Funds

Health Fund

Public Improvement District # I

Street Reconstruction Fund

Enterprise Funds

Ranger Hall of Fame Fund

Waco Regional Airport Fund

Convention Center & Visitors' Fund

Cameron Park Zoo Fund

Cottonwood Creek Golf Course

Waco Transit Fund

Utility Funds

Water Fund

Wastewater Fund

Solid Waste Fund

WMARRS Fund

lnte rnal Se rvice Funds

Risk Management Fund

Engineering Fund

Fleet Services Fund

Health Insurance Fund

Capital Improvement Fund

Less Interfund Transfers

Total Fund Summary

16

98,991,150

3,791,071

799,173

3,887,027

1,312,704

1,606,534

3,123,712

3,352,005

1,891,394

6,935,380

39,461,411

21,576,455

16,202,547

6,739,060

3,489,324

2,028,950

1,609,458

11,671,871

19,813,018

(29,098,051)

$219,184,193

Capital Improvements Program

Planned Expenditure Summary by Function

2012-13

Airport 2,795,000

City Manager's Office 40,000

Emergency Management 625,000

Facilities 400,000

Fleet Services 1, 177,518

Fire 1, 100,000

Parks & Recrea tion 355,500

Total General Government 6,493,018

Street Improvements 1,200,000

Wastewater Improvements 6,060,000

Water Improvements 6,060,000

Total C I P 19,813,018

17

Personnel Sununary

By Department (Full Time Equivalents)

2011-12 2012-13 2011-12 2012-13

General Fond Health Fond (cont)

City Managers Office 9.00 9.00 S T D Services 5.39 5.39

Budget! Audit 3.00 4.00 HIV/AIDS 2.25 2.25

City Secreta!), 6.00 6.00

Finance 15.50 15.50 Enterprise Fonm

Purchasing 6.00 6.00 Street Reconstruct Fund 30.00 30.00

Infonmtion Technology 15.00 15.00 Ranger Hall ofFarre Fund 15.50 15.50

Legal Services 11.00 11.00 Allport Fund 13.77 13.77

Municipal Court 15.00 15.00 Convention Fund 33.63 33.63

Planning Services 6.05 6.05 Cam:ron Pari< Zoo Fund 51.16 51.16

Hurmn Resources 9.48 9.48 Cottonwood Creek Golf 15.96 15.96

Inspection Selvices 19.30 21.05

Streets & Drainage 26.00 29.00 Utilities

Traffic Services 26.00 22.00 Water Office 23.25 24.25

:Ern;:rgency Management 2.00 5.50 Water Distribution 47.75 32.75

Fire 199.00 199.00 WaterTreat�nt 38.25 38.25

Police 338.35 338.35 Utilities Laborato!), 13.00 13.00

Libra!)' 44.45 44.45 Meter Shop 18.00

Municipal Inforrmtion 9.00 9.00 Wastewater Collection 38.75 38.75

HOlls ing SelVices 1.36 1.36 Environmental Services 6.00 7.00

Facilities 35.80 35.80 Solid Waste Services 103.00 102.00

Parks and Recreation 151.85 141.00 WMARRS 24.00 26.00

Total General Fond 949.14 943.54 Internal Senice Funds

Ris k Managerren t 7.00 7.00

Health Fond Engineering 24.00 24.00

Health Administration 9.50 9.50 Fleet Services 25.00 25.00

Environrrental Health 1.75 1.75 Health Insurance 1.00 1.00

OSSF 4.25 4.25

Public Health Nurs ing 9.50 10.08 GrantFunm 81.48 76.63

Total All Flmm 1,574.28 1,570.41

18

Where to Go For Additional Information

This document, produced by the City of Waco Budget Office, is designed to provide summary infonnation

from the City's 2012-2013 adopted budget. More detailed information on the contents of this book can be found in the 2012-2013 Budget. The Budget, as well as additional information about the City of Waco, can be found on the City's Web Site, http://www.waco-texas.com.

To Find Information on These Topics Look in the Budget Document or on

The City's Web Site

Financial Policies Financial Management Policy

Statements

Taxes, Revenues & Expenditures City Manager's Letter

Budget Message

Tax Structure

Budget Summaries

Program Changes Including New City Manager's Letter Programs, Additional Funding Budget Message

Individual Department Summaries

Staffing and Organizational Structure Organization Chart

and Changes Budget Message

Personnel Summary

Individual Department Summaries

Departmental Plans Budget Message

Individual Department Summaries

Debt Schedule Debt Service Section

Capital Projects Capital Improvements Program Section

Glossary of Terms Appendix A

Fees Appendix B -Fee Schedule

19

If you have any other questions about city services

Call Waco Central

(254) 299-CITY (2489)

Or contact the Budget Office at (254) 750-5694

City of Waco

Budget Office

Post Office Box 2570

Waco, TX 76702-2570

http://waco-texas.com