HomeMy WebLinkAbout15-ReferenceReference
Reference Table of Contents
Fiscal and Budgetary Policy................................................................................................................209
Personnel Summary by Division .........................................................................................................228
Personnel Summary 2003/04..............................................................................................................229
Program Summary by Fund for 2003/2004.........................................................................................230
Contingency Reserve Requirements Worksheet ................................................................................232
Transfers Between Funds...................................................................................................................233
Internal Service Premiums..................................................................................................................234
Utility Rate Schedule...........................................................................................................................236
Ordinances..........................................................................................................................................239
GTEC Budget – A Component Unit of the City of Georgetown for Reference Only............................248
Advisory Boards & Commissions........................................................................................................250
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City of Georgetown
Fiscal and Budgetary Policy
(Revised July 22, 2003)
I. PURPOSE
The City of Georgetown is committed to financial management through integrity, prudent
stewardship, planning, accountability, full disclosure and communication. The broad
purpose of the Fiscal and Budgetary Policies is to enable the City to achieve and maintain a
long-term stable and positive financial condition, and provide guidelines for the day-to-day
planning and operations of the City’s financial affairs.
Policy scope generally spans areas of accounting and financial reporting, internal controls,
both operating and capital budgeting, revenue management, investment and asset
management, debt management and forecasting. This is done in order to:
A. Demonstrate to the citizens of Georgetown, the investment community, and the bond
rating agencies that the City is committed to a strong fiscal operation;
B. Provide precedents for future policy-makers and financial managers on common
financial goals and strategies;
C. Fairly present and fully disclose the financial position of the City in conformity to
generally accepted accounting principals (GAAP); and
D. Demonstrate compliance with finance-related legal and contractual issues in accordance
with the Texas Local Government Code and other legal mandates.
These policies will be reviewed and updated annually as part of the budget preparation
process.
The City’s accounts and budgets for all general government funds using the modified
accrual basis. This method recognizes revenues when they are measurable and available
and expenditures when goods and services are received, except for principal and interest on
long-term debt, which is recognized when paid. General government funds include the
general fund, special revenue funds, debt service fund and general capital project funds.
Proprietary funds, which include the enterprise and internal service funds are accounted and
budgeted using the accrual basis of accounting. Under this method, revenues are
recognized when they are earned and expenses when they are incurred. The budgeted
funds for the City of Georgetown include:
Governmental Funds:General Fund which accounts for all financial resources except
those required to be accounted for in another fund, and include
basic governmental services, such as Police, Fire and Parks
functions among others.
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Special Revenue Funds (SRF) account for specific revenues that
are legally restricted for specified purposes. The City currently
budgets 12 SRF Funds and includes Tourism, Parkland
Dedication and Library Donations.
Debt Service Fund is used to account for the payment of general
long-term debt principal and interest.
Capital Project Funds are used to account for the acquisition or
construction of major capital facilities other than those financed by
enterprise activities.
Proprietary Funds:Internal Service Funds account for good or services provided by
one internal department to another. The City uses this system to
recognize full cost for fleet replacement and maintenance, facility
maintenance and computer replacement and maintenance.
Enterprise Funds include the City’s “business like” activities
including all the utility funds and the airport.
II. OPERATING BUDGET
Budgeting is an essential element of the financial planning, control and evaluation process
of municipal government. The “operating budget” is the City’s annual financial operating
plan. The annual budget includes all of the operating departments of the general fund,
proprietary funds, debt service funds, special revenue funds, and capital improvement funds
of the City.
A. Comprehensive Plan – The Georgetown Century Plan is the City’s comprehensive plan
as required by the City of Georgetown Charter (Section 1.08) to preserve, promote and
protect public health and general welfare, prevent overcrowding, ensure adequate
transportation, availability of necessary utilities and services, and conserve and protect
the City’s natural resources. The Century Plan is the City’s master plan. To date, eight
functional elements have been adopted. The City’s budget is the Annual Operating Plan
Element of the Georgetown Century Plan.
The Century Plan is founded on strategic objectives or "policy areas" that are reviewed
annually, and updated at least every five years. Funding of City programs shall be
based upon these objectives set forth in the Century Plan. Currently, there are 17 policy
areas included in the Plan.
The Century Plan utilizes the budget process as an integral planning tool, requiring the
City to plan for five, two and one year time horizons. Therefore, the budget is focused on
these areas and is in compliance with the goals outlined in the comprehensive plan.
B. Preparation – The Charter (Section 6.02) requires “a proposed budget prepared by the
City Manager and submitted to the City Council at least thirty days prior to the end of the
fiscal year. The budget shall be adopted not later than the twenty-seventh day of the
last month of the fiscal year. No budget will be adopted or appropriations made unless
the total estimated revenues, income and funds available shall be equal to or in excess
of such budget or appropriations, except otherwise provided”. Therefore, the budget will
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E. Reporting – Summary financial reports will be presented to the City Council quarterly.
These reports will be in a format appropriate to enable the City Council to understand
the overall budget and financial status. The City Manager will also present a mid-year
report to the City Council with 60 days following the end of the second fiscal quarter
which updates the status of projects and related financial goals set forth in the budget.
F. Control and Accountability – Each Division Director, appointed by the City Manager,
will be responsible for the administration of his/her departmental budget. This includes
accomplishing the Goals and Objectives adopted as part of the budget and monitoring
each department budget for compliance with spending limitations. Division Directors
may transfer funds up to $20,000 within the line items within a departmental budget
category (personnel costs, operations and maintenance or capital) without additional
approval. All other transfers of appropriation or budget amendments require either City
Council or City Manager approval as outlined in Section IV.B.
G. Contingency Appropriations – The budget may include contingency appropriations
within designated operating department budgets. These funds are used to offset
expenditures for unexpected maintenance or other unanticipated expenses that might
occur during the year. Currently, the City maintains contingency appropriations for
insurance deductibles, unexpected legal expenses and equipment repairs.
H. Council Contingency Account – The budget may contain appropriated funds to be
used at the discretion of the City Council. Actual expenditure of these funds is
specifically approved by the City Council on an item by item basis. The Council
Contingency Account for 2003/04 is $60,000, included in the General Fund.
III. REVENUE MANAGEMENT
A. Characteristics – The City will strive for the following optimum characteristics in its
revenue system:
1. Simplicity – The City, where possible and with out sacrificing accuracy, will strive
to keep the revenue system simple in order to reduce compliance costs for the
taxpayer or service recipient.
2. Certainty – A knowledge and understanding of revenue sources increases the
reliability of the revenue system. The City will understand its revenue sources
and enact consistent collection policies to provide assurances that the revenue
base will materialize according to budget.
3. Equity – The City shall make every effort to maintain equity in its revenue
system; i.e., the City should seek to minimize or eliminate all forms of
subsidization between entities, funds, services, utilities, and customer classes,
and ensure an on-going return on investment for the City.
4. Revenue Adequacy – The City should require there be a balance in the revenue
system; i.e., the revenue base will have the characteristics of fairness and
neutrality as it applies to cost of service, willingness to pay, and ability to pay.
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be presented to the City Council no later than the 1st day of August to provide the City
Council time to adopt the budget in the required time frame.
1. Proposed Budget – A proposed budget shall be prepared by the City Manager with
participation of all the City’s Division Directors within the provision of the Charter and
the Century Plan.
a) The budget shall include four basic segments for review and evaluation:
• Revenues
• Personnel Costs
• Operations and Maintenance
• Capital and other non project costs
b) The budget review process will include City Council participation in the
development of each segment and allow for citizen participation in the process,
and will allow for sufficient time to address policy and fiscal issues by the City
Council.
c) A copy of the proposed budget will be filed with the City Secretary when it is
submitted to the City Council. A copy will also be available at the Georgetown
Public Library for citizen review.
2. Adoption – Upon finalization of the budget appropriations, the City Council will hold
a public hearing, and subsequently adopt by Ordinance the final budget as
amended. The budget will be effective for the fiscal year beginning October 1st.
The Annual Operating Plan document will be submitted annually to the Government
Finance Officers Association (GFOA) for evaluation and consideration for the
Distinguished Budget Presentation Award.
C. Balanced Budget – The goal of the City is to balance the operating budget with current
revenues, whereby, current revenues would match and fund on-going
expenditures/expenses. Excess balances in the operating funds from previous years
would then be used for non-recurring expenditures/expenses or as capital funds. This
policy was adopted in fiscal year 2002, and is fully implemented in fiscal year 2004 as
planned.
The Charter (Section 6.04) requires that an operating deficit created in any fiscal year
shall be paid off and discharged during the following year. In practice, deficit has been
interpreted to mean City funds as a whole. The City Council may choose from time to
time to allow individual funds to have a negative balance as long as Operating Reserve
requirements for the City as a whole are maintained.
D. Planning – The budget process will be coordinated so that major policy issues are
identified prior to the budget approval date. This will allow City Council adequate time
for consideration of appropriate decisions and analysis of financial impacts.
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5. Realistic and Conservative Estimates - Revenues will be estimated realistically,
and conservatively, taking into account the volatile nature of various revenue
streams.
6. Administration – The benefits of a revenue source should exceed the cost of
levying and collecting that revenue.
7. Diversification and Stability – A diversified revenue system with a stable source
of income shall be maintained. This will help avoid instabilities in two particular
revenue sources due to factors such as fluctuations in the economy and
variations in the weather.
B. Other Considerations – The following considerations and issues will guide the City in
its revenue policies concerning specific sources of funds:
1. Cost/Benefit of Incentives for Economic Development – The City will use due
caution in the analysis of any incentives that are used to encourage
development. A cost/benefit (fiscal impact) analysis will be performed as part of
the evaluation.
2. Non-Recurring Revenues – One-time or non-recurring revenues should not be
used to finance current ongoing operations. Non-recurring revenues should be
used only for non-recurring expenditures and not for budget balancing purposes.
3. Property Tax Revenues – All real and business personal property located within
the City will be valued at 100% of the fair market value for any given year based
on the current appraisal supplied by the Williamson County Appraisal District.
Conservative budgeted revenue estimates result in a projected ninety-eight
percent (98%) budgeted collection rate for current ad valorem taxes. Two
percent (2%) of the current ad valorem taxes will be projected as the budget for
delinquent ad valorem tax collection. For budgeting purposes, the City will
forecast the current year’s effective tax rate at the current collection rate of 98%,
unless directed otherwise.
4. Interest Income – Interest earned from investments will be distributed to the
funds in accordance with the equity balance of the fund from which the monies
were provided to be invested.
5. User-Based Fees and Service Charges – For services associated with a user fee
or charge, the direct or indirect costs of that service will be offset by a fee where
possible. The City will review fees and charges no less than once every three
years to ensure that fees provide adequate coverage for the cost of services.
The City Council will determine how much of the cost of a service should be
recovered by fees and charges.
6. Enterprise Fund Rates – The City will review and adopt utility rates as needed to
generate revenues required to fully cover operating expenses, meet the legal
requirements of all applicable bond covenants, and provide for an adequate level
of working capital.
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Revenue Bonds - Bonds of the City which are supported by the revenue generating capacity of the electric, water
and wastewater system.
Service Improvement Program (SIP) Fees - Charges paid, on a per unit cost basis, by a developer for a portion
of the cost of infrastructure improvements such as fire protection, road improvements, electric, wastewater and water
system improvements needed to service a development. Fees are set as part of a Council approved development
agreement.
Special Revenue Fund (SRF) - A fund used to account for the proceeds of specific revenue sources (other than
special assessments, expendable trusts, or for major capital projects) that are legally restricted to expenditure for
specified purposes.
Special Utility District - A legally separate political subdivision under Texas law to provide utility services.
Sun City Texas - Del E. Webb Corporation (Del Webb) broke ground in May 1995 on a 9,500 home, 5,300 acre
active retirement community called Sun City Texas. The City’s development agreement with Del Webb provides for
fire protection, wastewater, water and electric services, and collector and arterial street improvements, as well as
annexation as each phase is started. The City is providing the off-site improvements with the construction and
carrying costs offset by special impact fees, paid by Del Webb, without cash shortfalls or increases in overall service
rates for water and wastewater. The scope of the project was amended in 2003 to include only 5,000 units.
Surplus - The excess of the assets of a fund over its liabilities; or if the fund has other resources and obligations; the
excess of resources over the obligations. The term should not be used without a properly descriptive adjective unless
its meaning is apparent from the context. See also Fund Balance.
Tax Base - The total value of all real, personal and mineral property in the City as of January 1st of each year, as
certified by the County Appraisal Board. The tax base represents net value after all exemptions.
Tax Levy - The resultant product when the tax rate per one hundred dollars is multiplied by the tax base.
Tax Rate - Total tax rate is set by Council and is made up of two components: debt service and operations rates.
It is the amount levied for each $100 of assessed valuation.
Tax Roll - The official list showing the amount of taxes levied against each taxpayer or property.
Times Coverage Ratio - A calculation of the revenue available divided by the combined debt payment requirement
of the utilities,. This ratio is one indication of the City’s ability to pay its revenue debt obligations.
Transfers In/Out - Amounts transferred from one fund to another to assist in financing the services or programs for
the recipient fund.
Unencumbered Fund Balance - For budget purposes, the unencumbered fund balance is the amount of
undesignated fund balance of a fund available for allocation.
Urban Design - The unique character of Georgetown formed primarily by its man made physical features.
User Charges - The payment of a fee for direct receipt of a public service by the party benefiting from the service.
Working Capital - For enterprise funds, the excess of current assets over current liabilities. Working capital of a fund
is important because budgeted expenditures of the fund must be provided for from cash receipts during the year
supplemented by working capital carried over from prior years, if any.
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Additionally, enterprise activity rates will include transfers to and receive credits
from other funds as follows:
a) General and Administrative Charges – Administrative costs should be
charged to all funds for services of general overhead, such as administration,
finance, customer billing, legal and other costs as appropriate. These chares
will be determined through an indirect cost allocation following accepted
practices and procedures.
b) Payment for Return on Investment – The intent of this transfer is to provide a
benefit to the citizens for the ownership of the various utility operations they
own.
• In-Lieu-of-Franchise-Fee. This transfer, currently 2% of operating
revenues, is consistent with the franchise rates charged to investor
owned utilities franchised to operate within the City.
• Return on Investment. The return on investment (ROI) transfer is
currently calculated at 8% of operating revenues.
7. Intergovernmental Revenues – All potential grants will be examined for matching
requirements and must be approved by the City Council prior to making
application of the grant. It must be clearly understood that operational
requirements (on-going costs) set up as a result of a grant program could be
discontinued once the term and conditions of the program have been completed.
8. Revenue Monitoring – Revenues as they are received will be regularly compared
to budgeted revenues and variances will be investigated, and any abnormalities
will be included in the quarterly report to the City Council.
IV. EXPENDITURE POLICIES
A. Appropriations – The point of budget control is at the department level budget for all
funds. The Charter (Section 6.03) provides that any transfer of appropriation between
funds must be approved by the City Council and that the City Manager, without City
Council approval, is authorized to transfer appropriations between departments, within
the same operational division and fund. The City Manager may also authorize transfer
of salary adjustment monies between funds that are budgeted in a citywide account.
B. Budget Amendments – The Charter (Section 6.04) provides a method to amend for
budget amendments and emergency appropriations. The City Council may authorize
with a majority plus one vote, an emergency expenditure as an amendment to the
original budget. This may be done in cases of grave public necessity to meet an
unusual and unforeseen condition that was not known at the time the budget was
adopted. In practice, this has been interpreted to include revenue-related expenses
within the enterprise funds and timing differences on capital improvement projects. The
following criteria will be used in evaluation of budget amendments:
• Is the request necessary?
• Why was the item not budgeted in the normal budget process?
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• Why can't a transfer be done within the Division to remedy the condition?
The Director of Finance and Administration must certify availability of revenues or
funding sources prior to adoption.
C. Purchasing – All City purchases of goods or services will be made in accordance with
the City’s current Purchasing Procedures and with State law. The following shows a
summary of approval requirements for purchases.
APPROVAL REQUIREMENTS FOR PURCHASES
Dollar Figure
Supervisor or
Director
Designee
Department
Director
Purchasing
Agent
City
Manager
City
Council
Less than $1,000
(Purchase Order or Credit Card)
$1,000 to less than $5,000
(Bid Form)
$5,000 to $10,000
$10,000 to less than $15,000
$15,000 or more
(Formal Bids – State
required over $25,000)
Denotes signature approval
Council authorization
D. Prompt Payment – All invoices approved for payment by the proper City authorities
shall be paid within thirty (30) calendar days of receipt of goods or services or invoice
date, whichever is later in accordance with State law. The City will take advantage of all
purchase discounts, when possible.
E. Risk Management – The City will pursue every opportunity to provide for the Public’s
and City employees’ safety and to manage its risks. The goal shall be to minimize the
risk of loss of resources through liability claims with an emphasis on safety programs.
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V. BUDGET CONTINGENCY PLAN
This policy is designed to establish general guidelines for managing revenue shortfalls
resulting from local and national economic downturns that adversely effect the City's
revenue streams.
A. Immediate Action - Once a budgetary shortfall is projected, the City Manager will take
the necessary actions to offset any revenue shortfall with a reduction in current
expenses. The City Manager may:
• Freeze all new hire and vacant positions except those deemed to be a necessity
• Review all planned capital expenditures.
• Delay all "non-essential" spending or equipment replacement purchases.
B. Further Action - If the above actions are insufficient to offset the revenue deficit and the
shortfall continues to increase, the City Manager will further reduce operating expenses
to balance the variance.
• Any resulting service level reductions, including workforce reductions, will be
addressed by the City Council.
VI. CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET
The City’s goal is to maintain City facilities and infrastructure in order to provide excellent
services to the customers within the community, meet growth related needs, and comply
with all state and federal regulations.
A. Preparation – The City annually updates and adopts a five-year Capital Improvement
Program (CIP) schedule as part of the operating budget adoption process. The plan is
reviewed and adjusted annually as needed, and year one is adopted as the current year
capital budget. The capital budget will include all capital projects, capital resources, and
estimated operational impacts
• Needed capital improvements are identified through system models, repair and
maintenance records and growth demands.
• A team approach will be used to prioritize CIP projects, whereby City staff from all
operational areas provide input and ideas relating to each project and its effect on
operations.
• Citizen involvement and participation will be solicited in formulating the capital
budget through neighborhood meetings, public hearings and other forums.
• Georgetown Utility Systems (GUS) Advisory Board will review the plan prior to
Council adoption.
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B. Control – All capital project expenditures must be appropriated in the capital budget.
Availability of resources must be identified, then reviewed by the Finance Division before
any CIP contract is presented to the City Council for approval.
• All contracts and other expenditures greater than $50,000 are reviewed by the
Georgetown Utility Systems (GUS) Advisory Board prior to presentation to Council.
C. Financing Programs – Where applicable, assessments, impact fees, pro rata charges,
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 equal or exceeding the
average life of the debt issue.
VII. CAPITAL MAINTENANCE AND REPLACEMENT
The City recognizes that deferred maintenance increases future capital costs. Therefore, a
portion of all individual funds with infrastructure should be budgeted each year to maintain
the quality within each system.
A. Infrastructure Maintenance - On-going maintenance and major repair costs are
included as capital expense within the departmental operating budgets. These costs are
generally considered system repairs and are not capitalized for accounting purposes.
They include such items as street seal coat, water line repairs and other general system
maintenance.
B. Internal Service funds – The City currently utilizes internal service funds to maintain
and replace existing assets. Assessments are made to the using funds for the use of
equipment currently in use and to be purchased during the year. In this way, suitable
funds are available for the purchase of operational assets without the issuance of debt.
1. Fleet Maintenance and Replacement - The City has a major investment in its fleet of
cars, trucks, tractors, and other equipment. The City will anticipate replacing existing
equipment, as necessary and will establish charges that are assigned to the using
departments to account for the cost of that replacement. Vehicle maintenance is
also allocated in this manner.
2. Technology – It is the policy of the City to plan and fund the maintenance and
replacement of its computer network and other technology systems. The City
currently uses a three-year replacement cycle for all desktop computers.
3. Facilities Maintenance – The City has established an on-going maintenance
program, which include major repairs, equipment, as well as contracts for
maintaining City facilities. The City has anticipated a useful life of such equipment
and established a means of charging those costs to the various departments in order
to recognize the City’s continuing costs of maintaining its facilities.
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VIII. ACCOUNTING, AUDITING AND FINANCIAL REPORTING
A. Accounting – The City is solely responsible for the recording and reporting of its
financial affairs, both internally and externally. The Director of Finance and
Administration is the City’s Chief Financial Officer and is responsible for establishing the
structure for the City’s Chart of Accounts and for assuring that procedures are in place to
properly record financial transactions and report the City’s financial position.
B. Audit of Accounts – In accordance with the Charter, an independent audit of the City
accounts will be performed every year. The auditor is retained by and is accountable
directly to the City Council.
C. External Reporting – Upon completion and acceptance of the annual audit by the City’s
auditors, the City shall prepare a written Comprehensive Annual Financial Report
(CAFR) which shall be presented to the City Council within 180 calendar days of the
City’s fiscal year end. The CAFR shall be prepared in accordance with Generally
Accepted Accounting Principals (GAAP) and shall be presented annually to the
Government Finance Officer Association (GFOA) for evaluation and consideration for
the Certificate of Achievement in Financial Reporting.
D. Internal Reporting – The Finance Department will prepare internal financial reports,
sufficient to plan, monitor and control the City’s financial affairs.
IX. ASSET MANAGEMENT
A. Cash Management and Investments – The City Council has formally approved a
separate Investment Policy for the City of Georgetown that meets the requirements of
the Public Funds Investment Act (PFIA), Section 2256 of the Texas Local Government
Code. This policy is reviewed annually by the City Council and applies to all financial
assets held by the City.
1. Statement of Cash Management Philosophy - The City shall maintain a
comprehensive cash management program to include the effective collection of all
accounts receivable, the prompt deposit of receipts to the City’s depository, the
payment of obligations, and the prudent investment of idle funds in accordance with
this policy.
2. Objectives – The City’s investment program will be conducted as to accomplish the
following listed in priority order:
• Safety of the principal invested
• Liquidity and availability of cash to pay obligations when due
• Receive the highest possible rate of return (yield) consistent with the City’s
investment policy.
3. Safekeeping and Custody – Investments may only be purchased through
brokers/dealers who meet the criteria detailed in the investment policy, which also
addresses internal controls related to investments.
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4. Standard of Care and Reporting – Investment will be made with judgement and
care, always considering the safety of principal to be invested and the probable
income to be derived. The Director of Finance and Administration is responsible for
the overall management of the City’s investment program and ensures all
investments are made in compliance with the investment policy. An investment
report, providing both summary and detailed information, will be presented to the
City Council quarterly.
5. Authorized Investments – The City can currently invest in the following:
• Certificates of Deposit
• U.S. Treasury and Agency securities
• Investment Pools that meet the requirements of the PFIA
• No-load Money Market Mutual Funds
• Fully collateralized Repurchase Agreements
• Other investments as approved by City Council and not prohibited by law
B. Fixed Assets – These assets will be reasonably safeguarded and properly accounted
for, and prudently insured.
1. Capitalization Criteria - For purposes of budgeting and accounting classification, the
following criteria must be capitalized:
• The asset owned by the City.
• The expected useful life of the asset must be longer than one year, or extend the
life of 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.
2. New Purchases – All costs associated with bringing the asset into working order will
be capitalized as part of the asset cost. This will include 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.
3. Improvements and Replacement – Improvements 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 expensed
unless they are a significant nature and meet all the capitalization criteria
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4. Contributed Capital - Infrastructure assets received from developers or as a result of
annexation will be recorded as equity contributions when they are received.
5. Distributions Systems - All costs associated with public domain assets, such as
streets and utility distribution lines will be capitalized in accordance with the
capitalization policy. Costs should include engineering, construction and other
related costs including right of way acquisition.
6. Reporting and Inventory – The Finance Division will maintain the permanent records
of the City’s fixed assets, including description, cost, department of responsibility,
date of acquisition, depreciation and expected useful life. Periodically, random
sampling at the department level will be performed to inventory fixed assets assigned
to that department. Responsibility for safeguarding the City’s fixed assets lies with
the department supervisor or manager whose department has been assigned the
asset.
X. DEBT MANAGEMENT
The City of Georgetown recognizes the primary purpose of capital facilities is to provide
services to the community. Using debt financing to meet the capital needs of the
community must be evaluated according to efficiency and equity. Efficiency must be
evaluated to determine the highest rate of return for a given investment of resources.
Equity is resolved by determining who should pay for the cost of capital improvements.
In meeting demand for additional services, the City will strive to balance the needs
between debt financing and “pay as you go” methods. The City realizes that failure to
meet the demands of growth may inhibit its continued economic viability, but also
realizes that too much debt may have detrimental effects on the City’s long-range
financial condition.
The City will issue debt only for the purpose of acquiring or constructing capital assets
for the general benefit of its citizens and to allow it to fulfill its various purposes as a city.
A. Usage of Debt - Debt financing will be considered for non-continuous capital
improvements of which future citizens will be benefited. Alternatives for financing will
be explored prior to debt issuance and include, but not limited to:
• Grants
• Use of Reserve Funds
• Use of Current Revenues
• Contributions from developers and others
• Leases
• Impact Fees
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When the City utilizes long-term financing, it will ensure that the debt is soundly
financed by conservatively projecting revenue sources that will be used to pay the
debt. It will not finance the improvement over a period greater than the useful life of
the improvement and it will determine that the cost benefit of the improvement,
including interest costs, is positive to the community.
B. Types of Debt –
1. General Obligation Bonds (GO’s) – General obligation bonds must be authorized
by a vote of the citizens of Georgetown. They are used only to fund capital
assets of the general government and are not to be used to fund operating needs
of the City. The full faith and credit of the City as well as the City’s ad valorem
taxing authority back general obligation bonds. Conditions for issuance of
general obligation debt include:
• When the project will have a significant impact on the tax rate;
• When the project may be controversial even through it is routine in nature; or
• When the project falls outside the normal bounds of projects the City has
typically done.
2. Revenue Bonds – Revenue bonds will be issued to provide for the capital needs
of any activities where the capital requirements are necessary for the
continuation or expansion of a service. The improved activity shall produce a
revenue stream to fund the debt service requirements of the necessary
improvement to provide service expansion. The average life of the obligation
should not exceed the useful life of the asset(s) to be funded by the bond issue
and will generally be limited to no more than twenty (20) years.
3. Certificates of Obligation, Contract Obligations (CO’s) – Certificates of obligation
or contract obligations may be used to fund capital requirements that are not
otherwise covered either by general obligation or revenue bonds. Debt service
for CO’s may be either from general revenues (tax-supported) or supported by a
specific revenue stream(s) or a combination of both. Typically, the City may
issue CO’s when the following conditions are met:
• When the proposed debt will have minimal impact on future effective property
tax rates;
• When the projects to be funded are within the normal bounds of city capital
requirements, such as for roads, parks, various infrastructure and City
facilities; and
• When the average life of the obligation does not exceed the useful life of the
asset(s) to be funded by the issue.
Certificates of obligation will be the least preferred method of financing and will
be used with prudent care and judgement by the City Council. Every effort will
be made to ensure public participation in decisions relating to debt financing.
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4. Self-supporting General Obligation Debt – Refers to general obligation debt
issued for a specific purpose and repaid through dedicated revenues other than
ad valorem taxes. The annual debt requirements are not included in the property
tax calculation. Both Airport and Stormwater Drainage fund issue this type of
debt.
5. Internal borrowing between City funds – The City can authorize use of existing
long-term reserves as “loans” between funds. The borrowing fund will repay the
loan at a rate consistent with current market conditions. The loan will be repaid
within ten (10) years. The loan will be considered an investment of working
capital reserves by the lending fund.
6. Short-term borrowing - The City may authorize the issuance of Public Property
Finance Contractual Obligations (PPFCO) which are short-term obligations for
the acquisition of personal public property, such as equipment. PPFCOs are
payable from either ad valorem taxes or another dedicated revenue stream.
Each issuance will be assessed to ensure cost effectiveness and the repayment
schedule will not exceed the useful life of the asset. Multiple equipment
acquisitions can be grouped in a single PPFCO issue in order to develop
economies of scale.
C. Method of Sale – The City will use a competitive bidding process in the sale of
bonds unless conditions in the bond market or the nature of the issue warrants a
negotiated bid. In such situations, the City will publicly present the reasons for the
negotiated sale. The City will rely on the recommendation of the financial advisor in
the selection of the underwriter or direct purchaser.
D. Disclosure – Full disclosure of operating costs along with capital costs will be made
to the bond rating agencies and other users of financial information. The City staff,
with assistance of the financial advisor and bond counsel, will prepare the necessary
materials for presentation to the rating agencies and will aid in the production of the
Preliminary Official Statements. The City will take responsibility for the accuracy of
all financial information released.
E. Federal Requirements – The City will maintain procedures to comply with arbitrage
rebate and other Federal requirements.
F. Debt Structuring – The City will issue bonds with an average life of twenty (20)
years or less, not to exceed the useful life of the asset acquired. The structure
should approximate level debt service unless operational matters dictate otherwise.
Market factors, such as the effects of tax-exempt designations, the cost of early
redemption options and the like, will be given consideration during the structuring of
long term debt instruments.
G. Debt Coverage Ratio – Refers to the number of times the current combined debt
service requirements or payments would be covered by the current operating
revenues net of on-going operating expenses of the City’s combined utilities
(Electric, Water, and Wastewater). The City will maintain a minimum debt service
coverage ratio of 1.5 times for these utilities as a whole. The current bond
ordinances for outstanding utility debt require a combined minimum 1.25 times
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coverage ratio. The bond ordinances allow the City to forego a debt reserve fund for
its utility debt if the coverage is maintained at 1.35 times or better. Debt coverage for
2003/04 is budgeted at 3.67 times coverage. A coverage ratio of 1.5 times will also
be required for all funds issuing self-supporting debt.
H. Bond Reimbursement Resolutions – The City may utilize bond reimbursements as
a tool to manage its debt issues, due to arbitrage requirements and project timing.
In so doing, the City uses its capital reserves "cash" to delay bond issues until such
time when issuance is favorable and beneficial to the City.
The City Council may authorize a bond reimbursement resolution for General Capital
projects that have a direct impact on the City's ad valorem tax rate when the bonds
will be issued within the term of the existing City Council.
The City Council may also authorize revenue bond reimbursements for approved
utility and other self-supporting capital projects within legislative limits. Currently
revenue bonds must be issued within 18 months after an eligible bond funded project
is begun.
XI. OTHER FUNDING ALTERNATIVES:
When at all possible, the City will research alternative funding opportunities prior to
issuing debt or increasing user-related fees.
A. Grants - All potential grants will be examined for any matching requirements and the
source of those requirements identified. A grant funding worksheet, reviewed by
Finance, that clearly identifies funding sources, outcomes and other relevant
information will be presented and approved by the City Council prior to any grant
application being submitted. It must be clearly understood that any resulting
operation requirements of the grant could be discontinued once the term and
conditions of the project have been terminated. The City Council must authorize
acceptance of any grant funding.
B. Use of Reserve Funds - The City may authorize the use of reserve funds to
potentially delay or eliminate a proposed bond issue. This may occur due to higher
than anticipated fund balances in prior years, thus eliminating or reducing the need
for debt proceeds, or postpone a bond issue until market conditions are more
beneficial or timing of the related capital improvements does not correspond with the
planned bond issue. Reserve funds used in this manner are replenished upon
issuance of the proposed debt.
C. Developer Contributions - The City will require developers who negatively impact
the City's utility capital plans offset those impacts. These policies are further defined
within the City's utility line extension policy and other development regulations.
D. Leases - The City may authorize the use of lease financing for certain operating
equipment when it is determined that the cost benefit of such an arrangement is
advantageous to the City.
E. Impact Fees - The City will impose impact fees as allowable under state law for both
water and wastewater services. These fees will be calculated in accordance with
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statute and reviewed at least every three years. All fees collected will fund projects
identified within the Fee study and as required by state laws.
XII. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS
The City of Georgetown will maintain budgeted minimum reserves in the ending working
capital/fund balances to provide a secure, healthy financial base for the City in the event
of a natural disaster or other emergency, allow stability of City operations should
revenues fall short of budgeted projections and provide available resources to implement
budgeted expenditures without regard to actual timing of cash flows into the City.
A. Operational Coverage – The City’s goal is to maintain operations coverage of 1.00,
such that operating revenues will at least equal or exceed current operating
expenditures. Deferrals, short-term loans, or one-time sources will be avoided as
budget balancing techniques. This policy was introduced in fiscal year 2002, and fully
implemented in fiscal year 2004.
B. Operating Reserves – The City will maintain reserves at a minimum of seventy-five
(75) days (20.83%) of net budgeted operating expenditures. Net budgeted operating
expenditure is defined as total budgeted expenditures less interfund transfers and
charges, general debt service (tax supported), direct cost for purchased power and
payments from third party grant monies. See reserve calculation worksheet for the
2003/04 budget.
1. General Fund – The unobligated fund balance in the General Fund should equal
at least sixty (60) days or 16.67% of annual budgeted General Fund
expenditures.
2. Tourism Fund – A minimum sixty days (60) or 16.67% of operating expenditures
will be reserved within the fund balance.
3. Water and Wastewater Funds – Working capital reserves in these funds should
be 25% or ninety (90) days.
4. Other Funds –
• Stormwater Drainage Fund - $150,000
• Airport Fund – As funds are available, up to ninety (90) days or 25% of
operating expenses (less fuel costs)
5. Electric Fund – The remaining balance to meet the citywide requirement of
seventy-five (75) days of reserve funds will be maintained within this fund.
For all other non-enterprise funds, the fund balance is an indication of the balance of
each particular fund at a specific time. The ultimate goal of each such fund is to
have expended the fund balance at the conclusion of the activity for which the fund
was established.
Reserve requirements will be calculated as part of the annual budget process and
any additional required funds to be added to the reserve balances will be
appropriated within the budget. Funds in excess of the minimum reserves may be
225
expended for City purposes at the will of the City Council once it has been
determined that use of the excess will not endanger reserve requirements in future
years.
C. Liabilities and Receivables - Procedures will be followed to maximize discounts
and reduce penalties offered by creditors. Current liabilities will be paid within 30
days of receiving the invoice. Accounts Receivable procedures will target collection
for a maximum of 30 days of service. Receivables aging past 120 days will be sent
to a collection agency. The Director of Finance and Administration is authorized to
write-off non-collectible accounts that are delinquent for more than
180 days, provided proper delinquency procedures have been followed, and include
this information in the annual report to the City Council.
D. Capital Project Funds – Every effort will be made for all monies within the Capital
Project Funds to be expended within thirty-six (36) months of receipt. The fund
balance will be invested and income generated will offset increases in construction
costs or other costs associated with the project. Capital project funds are intended to
be expended totally, with any unexpected excess to be transferred to the Debt
Service fund to service project-related debt service.
E. General Debt Service Funds – Revenues within this fund are stable, based on
property tax revenues. Balances are maintained to meet contingencies and to make
certain that the next year’s debt service payments may be met in a timely manner
The fund balance should not fall below one month or 1/12th annual debt service
requirements, in accordance with IRS guidelines.
F. Investment of Reserve Funds – The reserve funds will be invested in accordance
with the City’s investment policy. Existing non-cash investment would be exempt
through retirement of the investment.
226
G. Ratios/Trend Analysis - Ratios and significant balances will be incorporated into
both the mid-year and annual reports to the City Council. This information will
provide users with meaningful data to identify major trends of the City's financial
condition through analytical procedures. The following ratios/balances will be used
as key financial indicators:
• Fund Balance/Equity: Assets - liabilities
FB/E AL (Acceptable level) minimum reserve
requirement
• Working Capital: Current assets less current liabilities
CA - CL AL minimum reserve requirement
• Current Ratio: Current assets divided by current liabilities
CA/CL AL > 1.00
• Quick Ratio: "Liquid" current assets divided by current
liabilities
Liquid CA/CL AL > 1.00
• Debt/Assessed AV Taxes Debt divided by assessed Ad Valorem value
D/AV AL < 5
• Debt Ratio: Current liabilities plus long-term liabilities
divided by total assets
CL +LTL/TA AL < 1
• Enterprise Oper Coverage: Operating rev divided by operating expense
OR/OE AL > 1.25
• Times Coverage Ratio: Operating revenue less operating expense
divided by annual debt service
(OR-OE)/DSV AL > 1.5
The City will be to develop minimum/maximum levels for the above ratios/balances
through analyzing of City historical trends and future projections. These ratios will
also be compared to other similar or regional municipalities for further analysis.
XIII. INTERNAL CONTROLS
A. Written Procedures – Wherever possible, written procedures will be established
and maintained by the Director of Finance and Administration for all functions
involving cash handling and/or accounting throughout the City. These procedures
will embrace the general concepts of fiscal responsibility set forth in this policy
statement.
227
B. Division Directors Responsibility – Each division Director is responsible for
ensuring that good internal controls are followed throughout their department, that all
Finance Division directives are implemented and that all independent auditor internal
control recommendations are addressed. Departments will develop and periodically
update written internal control procedures.
XIV. STAFFING
The City’s goal as an employer is to attract and retain quality employees who provide
excellent, friendly services to our community in an effective and efficient manner.
A. Adequate Staffing – Staffing levels will be adequate for the fiscal functions of the
City to operate effectively. Workload allocation alternatives will be explored before
adding additional staff.
B. Cost of Living Adjustment (COLA) - In order to sustain employee compensation
levels within the competitive job market, the City may fund an annual COLA for all
regular employees not included in a defined pay plan. The COLA will be based on
the previous annual average Consumer Price Index (CPI) for the Texas Region.
C. Pay for Performance – The City Council may fund a one-time bonus incentive
program to aid in retaining quality employees and reward employees for productivity
and job performance.
This program will be funded with one-time available resources and paid as a lump-
sum distribution for performance that exceeds expectations during the review period.
228
01/02 02/03 02/03 03/04 04/05
PERSONNEL SUMMARY ACTUAL BUDGET ACTUAL ADOPTED PROJECTED
FINANCE & ADMINISTRATION
Accounting 6.75 7.75 7.75 7.75 7.75
Administration 2 2 2 2 2
Facilities Maintenance 1 1 1 2 2
Vehicle Service Center 4/.5 4/.5 4/.5 4/.5 4/.5
Municipal Court 3 3 3 3 3
Purchasing and Properties 6 6 6 6 6
Utility Office 10 11 11 13 13
Total (FT/PT) 32.75/.5 34.75/.5 34.75/.5 37.75/.5 37.75/.5
FIRE SERVICES
Fire Administration 4 4 4 4 4
Fire Operations 43 46 46 46 46
Fire Prevention and
Community Analysis 5/.5 5/.5 5/.5 5/.5 5/.5
Total (FT/PT) 52/.5 55/.5 55/.5 55/.5 55/.5
GEORGETOWN UTILITY SYSTEMS
Administration 7 8 8 9 9
Electric 16 16 16 19 19
AMR 6 6 6 6 6
Systems Engineering 7 8 8 8 8
Stormwater Drainage 5/.5 5/.5 5/.5 5/.5 5/.5
Streets 11/.75 11/.75 11/.75 14/.75 14/.75
Water Distribution 13 13 13 13 13
Wastewater Collection 10/.25 10/.25 10 10 10
Total (FT/PT) 75/1.5 77/1.5 77/1.25 84/1.25 84/1.25
MANAGEMENT SERVICES
City Council 1 1 1 1 1
City Manager's Office 5/.5 5/.5 5/.5 5/.5 5/.5
Airport 2/3.5 2/3.5 2/3.5 2/3.5 2/3.5
Human Resources 4 4 4 4 4
Economic Development 2 3 3 3 3
CVB/Main Street 2 3 3 3 3
Information Technology 8 8 8 8 8
Library 11/4.5 11/4.5 11/4.5 11/4.5 11/4.5
Total (FT/PT) 35/8.5 37/8.5 37/8.5 37/8.5 37/8.5
PARKS & RECREATION
Parks 18/1.5 18/1.5 18/1.5 18/1.5 18/1.5
Recreation 10/14.25 11/13 11/13 11/13 11/13
Total (FT/PT) 28/15.75 29/14.5 29/14.5 29/14.5 29/14.5
PLANNING & DEVELOPMENT
Administration 4/.5 3/.5 3/.5 5/.5 5/.5
Current Planning 7 7 7 6 6
Long Range Planning 2 2 2 2 3
Building Inpections 8 10 10 9 9
Total (FT/PT) 21/.5 22/.5 22/.5 22/.5 22/.5
POLICE SERVICES
Administration Services Bureau 3 3 3 3 3
Field Operations Bureau 38 42 42 36 36
Support Services Bureau 29 30 30 36 36
Animal Services 6.5 6.75 6.75 6.75 6.75
Total (FT/PT) 76.5 81.75 81.75 81.75 81.75
TOTAL CITY OF GEORGETOWN
(FT/PT) 320.25/27.25 336.5/26 336.5/25.75 346.5/25.75 346.5/25.75
Personnel Summary by Division
2002 - 2005
229
02/03 FTE
(Full Time
Equivalents)
Budget
Reclassified
Positions(1) Reductions
Mid-yr
Additions
Adopted
Program
Additions
Total
Proposed
FTEs
Economic Development 4- 4 0
Finance & Administration 35.25 3 38.25
Fire Services 55.5 55.5
Georgetown Utility Systems 78.5 -0.25 7 85.25
Information Technology 8- 8 0
Management Services 38.25 5.25 2 45.5
Parks & Recreation 43.5 43.5
Planning & Development 22.5 22.5
Police Services 73 6.75 2 81.75
Total 358.5 0 -0.25 4.00 10 372.25
(1) Moved Economic Development Division and Information Technology to Management Services and Animal Services Department to Police
Personnel Summary 2003/04
EMPLOYEES - Full Time / Part Time
(Full Time Equivalents)
320.25
318.25
304.5
286.25
266
247
25.75
27.25
32.25
31.75
35
32.5
32.25
336.5
346.5
26
0 50 100 150 200 250 300 350 400
2003/04
2002/03
2001/02
2000/01
1999/00
1998/99
1997/98
1996/97
Position Summary
2002-2005
0
10
20
30
40
50
60
70
80
90
F & A Fire GUS Mgmt Svcs Parks & Rec Planning Police
FT
E
s
01/02 Actual 02/03 Actual 03/04 Budget 04/05 Projected
230
Program Summary by Fund
Description Department Total 1-time Ongoing
03/04 FB 04/05
General Fund
Gfund Revenue Allocation Revenues (20,686) (21,979)
2.5% COLA Program Various 160,000 160,000
Bonus Program Transfer to Joint Services City Wide 75,000 75,000
Facilities Masterplan Architect Management Services - City Manager 90,000 45,000
Facilities Masterplan Architect Transfer from Joint Services Fund Balance (45,000)
City Manager Special Program Management Services - City Manager 25,000 25,000
Downtown Master Plan Imp Management Services - City Manager 240,000 240,000
Gateway Signage Management Services - City Manager 12,000
Security Cameras at City Hall Management Services - City Manager 5,000 5,000
Public Information Program Management Services - City Manager 10,000 25,000
Joint Svc Allocation Management Services - Contracts 22,169 30,834
GIS program - funding for Contract Planning & Development - Long Range Planning 15,000 15,000
San Gabriel Park Improvements Parks Maintenance 80,000 80,000
Restoration of Log Cabin Parks Maintenance 25,000 25,000 1,500
Police Public Safety Comp
Increase plan to 2.5% Police - Support Services Bureau 83,741 117,448
Step plan maintenance Police - Support Services Bureau 33,707 35,392
Incentive Pay Police - Support Services Bureau 0 51,600
Portion already in BASE Police - Support Services Bureau (46,885) (47,823)
Laser Radars for Police Police - Support Services Bureau 6,600 6,600
Bullet Proof Vest Replacement Police - Field Operations Burueau 5,000 5,000
Animal Services Software Police - Animal Services 20,000 20,000 4,800
Shotgun replacement in Police Police - Field Operations Burueau 4,400 4,400
Public Education Program for Police Police - Administration 5,000 5,000
Fire Public Safety Comp
Increase plan to 2.25% Fire Operations 31,921 62,458
Step plan maintenance Fire Operations 30,537 32,063
Incentive Pay Fire Operations 04 9 , 3 8 0
Portion already in BASE Fire Operations (21,682) (22,116)
Fire Training Facility Fire Operations 5,000 10,200
Streets Patching Crew GUS - Streets 101,272 98,468
Patching crew-reduction in maint. GUS - Streets (101,272) (98,468)
Total Program Request - General Fund 850,822 531,000 508,757
Tourism Fund
Destination Marketing CVB 22,000 22,000
Downtown Master plan impl CVB 30,000 30,000
2.5% COLA Program Main Street/CVB 2,800 2,800
Total Program Request - Tourism/CVB Fund 54,800 52,000 2,800
Mapping SRF
GIS Program Implementation Planning & Development - Long Range Planning 29,750 11,450
Total Program Request - Mapping SRF 29,750 11,450
Court Fee SRF
Courts Record Management F & A - Municipal Court 27,338 2,400
Total Program Request - Court Fee SRF 27,338 2,400
Facilities ISF
2.5% COLA Program Facilities - Administrative 1,200 1,200
Adding Grace Episcopal Church Facilities - Contracts 4,555 4,555
Facility Maintenance Worker Facilities - Administrative 39,900 39,900
Total Program Request - Facilities ISF 45,655 0 45,655
Fleet ISF
Fleet Allocation Revenue New Program allocation revenue (5,830) (5,830)
2.5% COLA Program Fleet - Administrative 5,000 5,000
Facility Maintenance Vehicle Lease Revenue (4,790) (4,790)
Field Cust. Svc Rep Maintenance Revenue (1,040) (1,040)
Vehicle - Field Cust. Svc Rep Fleet - Capital 19,700
Vehicle - Field Cust. Svc Rep Transfer in Joint Services (19,700)
Chipper/Chipper Truck Fleet - Capital 67,000
Chipper/Chipper Truck Transfer in Electric (67,000)
Ford F-150 - Electric Dist. Crew Fleet - Capital 20,000
Ford F-150 - Electric Dist. Crew Transfer in Electric (20,000)
Total Program Request - Fleet ISF (830) (830)
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Program Summary by Fund
Description Department Total 1-time Ongoing
03/04 FB 04/05
Joint Services ISF
Collection Agent F & A - Utility Office 34,330 33,880
Collection Agent Computer Transfer to IR 1,979
Joint Service Allocation Revenue New Program allocation revenue (153,453) (154,798)
Field Customer Svc/Collections F & A - Customer Service 35,690 34,140
Vehicle for Customer Svc Rep Transfer to Fleet 19,700 19,700
Finance Citizen Survey F & A - Administration 19,500 19,500
Secretary/Records Mgmt GUS - Administration 21,453 19,210
2.5% COLA Program Various 60,000 60,000
Bonus Program Management Services - City Wide Human Resources 300,000 75,000
Bonus Program Transfer from General Fund (75,000)
Bonus Program Transfer from Electric Fund (75,000)
Bonus Program Transfer from Water Fund (75,000)
Facilities Masterplan Architect Transfer to General Fund 45,000 45,000
Total Program Request - Joint Services ISF 159,199 159,200 (7,568)
Information Resources ISF
2.5% COLA Program Management Services - IT Administrative 12,400 12,400
Contracted Network Support Management Services - IT Contracts 20,000 20,000
Collection Agent Computer Management Services - IT Capital 1,979
Collection Agent Computer Transfer in Joint Services (1,979)
Streets Patching Crew Computer Management Services - IT Capital 1,579
Streets Patching Crew Computer Transfer in General Fund (1,579)
Total Program Request - Information Resources ISF 32,400 20,000 12,400
Airport
2.5% COLA Program Airport Administrative 4,800 4,800
Gfund Allocation Airport Administrative 86 (207)
Joint Svc Allocation Airport Administrative 368 749
Total Program Request - Airport 5,254 5,342
Electric Operations
Electric meter test equipment GUS - AMR 32,200 32,200
Chipper truck/Chipper Transfer to Fleet 67,000 67,000 8,780
2.5% COLA Program GUS - Electric Operations 26,300 26,300
Bonus Program Transfer to Joint Services City Wide 75,000 75,000
Gfund Allocation GUS - Electric Contracts 11,378 18,084
Joint Svc Allocation GUS - Electric Contracts 51,805 67,508
Electric Distribution Crew GUS - Electric Operations 137,920 139,060
Ford F-150 for Electric Dist Crew Transfer to Fleet 20,000 20,000
Total Program Request - Electric Fund 421,603 194,200 259,732
Sanitation Operations
Gfund Allocation GUS - Sanitation Operations 954 831
Joint Svc Allocation GUS - Sanitation Operations 8,874 8,546
Total Program Request - Sanitation Fund 9,828 9,377
Stormwater Operations
2.5% COLA Program GUS - Stormwater Operations 5,000 5,000
Gfund Allocation GUS - Stormwater Operations 862 302
Joint Svc Allocation GUS - Stormwater Operations 10,566 10,065
Total Program Request - Stormwater Fund 16,428 15,367
Water Services Operations
2.5% COLA Program GUS - Water Services Operations 21,000 21,000
Bonus Program Transfer to Joint Services City Wide 75,000 75,000
Gfund Allocation GUS - Water Services Contracts 7,406 2,969
Joint Svc Allocation GUS - Water Services Contracts 59,671 37,096
Tank Rehabilitation GUS - Water Services Contracts 207,500 300,200
Total Program Request - Water Services 370,577 75,000 361,265
TOTAL PROGRAM REQUESTS 2,022,824 1,031,400 1,226,147
*Does not include GTEC charges
232
Contingency Reserve Requirements Worksheet
(per Section XII.B of Fiscal and Budgetary Policy)
-------------------- B Y F U N D --------------------
CITY WIDE General Electric Water Services
Total budgeted expenditures 104,181,474 19,366,090 32,074,894 28,338,721
Less:
Purchased Power- Electric (18,600,000)(18,600,000)
Capital Improvements - Electric, WW, Water (18,381,750)(4,967,500) (13,414,250)
Capital Improvements - Other Enterprise Funds (400,900)
Capital Improvements - GCP, Streets & SRF (2,104,000)
Capital Maintenance - General (724,928)(724,928)
Capital Improvements - Special Revenue Funds (2,120,515)
Airport Fuel Charge (890,000)
Debt Service - General (2,435,595)
One-Time Only Expenses (800,200)(531,000) (194,200) (75,000)
Interfund Transfers (5,729,614)(131,661) (2,471,900) (1,586,100)
Interfund Charges (8,971,533)(3,324,709) (2,063,389) (2,305,871)
Budgeted operating expenditures 43,022,439 14,653,792 3,777,905 10,957,500
Percentage reserve requirements:
60 days - 16.67%7,170,407 2,442,299 629,651 1,826,250
75 days - 20.83% 8,963,008 3,052,873 787,064 2,282,813
90 days - 25%10,755,610 3,663,448 944,476 2,739,375
09/30/03 RESERVE BALANCES:
Minimum Minimum
Days Amount Amount
Fund Required Required Included
Electric Fund N/A 787,064 3,250,000
General Fund 60 days 2,442,299 2,450,000
Sanitation Fund N/A N/A N/A
Stormwater Drainage Fund N/A 50,000 150,000
Water Services Fund 90 days 2,739,375 2,925,000
Airport Fund N/A N/A 150,000
Convention & Visitors Bureau SRF 75 days 56,830 75,000
All other City Funds expenditures N/A* 2,887,441 N/A (held in other operating funds)
Totals for all expenditures 75 days 8,963,008 9,000,000
* Note:The city-wide contingency reserve requirement is 75 days of operating expenses. Only the General, Stormwater Drainage,
Water Services, and Convention and Visitors Bureau SRF have a specific minimum fund reserve requirement. All excess
reserves for City expenditures in funds that do not have a specific fund requirement are held in other operating funds.
233
Transfers Between Funds
Interfund transfers include:
Dividend to General Fund:
4 Utility operations have traditionally transferred to the General Fund eight percent of its gross billings for
utility services and is viewed as a payment of the profits of the fund or a return on investment. The total
return on investment transfer to the General Fund is $3,999,800 in 2003/04.
Other Transfers:
4 Other transfers include grant matching, fire hydrant testing, and equipment purchases to other funds.
General Fund SRF Fleet Fund Joint Services Information
Technology Total Out:
T General Fund 55,082 75,000 1,579 131,661
R Public Safety
A Gen Cap Projects 1,085,600 1,085,600
N
S Vehicle Services 48,874 48,874
F
E Joint Services 45,000 19,700 1,979 66,679
R
S Electric 2,309,900 87,000 75,000 2,471,900
F Water Services 1,511,100 75,000 1,586,100
R Stormwater
O Drainage 107,500 107,500
M
Sanitation 231,300 231,300
Total In: 4,204,800 103,956 1,192,300 225,000 3,558 5,729,614
T R A N S F E R T O
234
Internal Service Premiums
Department
Facilities
Maintenance Fleet
Information
Services Joint Services General
General Fund
General Government 4,945 1,397,833
City Council 14,524 4,270
City Manager's Office 33,064 3,848 24,508
Municipal Court 5,443 8,446 19,257
Planning Admin 37,031 4,004 17,438
Current Planning 17,438
Long Range Planning 34,875
Inspection Services 25,114 47,953
Animal Services 5,700 18,609 18,196
Parks 23,480 106,876 33,959
Recreation 130,821 12,886 56,597
Library 57,909 125,099
Fire Services Administration 60,904 14,971
Fire Prevention 68,658 164,678
Fire Suppression 22,609 26,199
Police Administration 66,070 325 12,561
Support Services 6,922 125,609
Field Operations 114,023 154,917
Streets 177,897 18,243
Ecomonic Development & Tourism SRF
Convention & Visitors Bureau 5,446 5,527 8,258
Facilities Maintenance Fund
Facilities Maintenance 10,198
Fleet Management Fund
Vehicle Service Center 21,188 4,138
Joint Services Fund
Economic Development Administration 5,446 16,513
GUS Administration 66,100 3,815 22,804
Systems Engineering 28,054 22,804
Pump Maintenance
Finance Administration 22,396 14,443
Accounting 33,700
Purchasing 22,623 7,501 24,828
Utility Office 8,976 12,857 49,655
Human Resources 14,831 21,019
235
Internal Service Fund premiums include:
Facilities Maintenance
4 Contracts and repairs for buildings and grounds are charged to departments based on actual usage and charges.
Fleet
4 Vehicle lease fees are charged to departments based on actual replacement costs. Maintenance fees are
charged based on each department’s prior year actual usage.
Information Technology
4 Computer and software lease fees are charged to departments based on replacement costs and estimated
usage.
Joint Services and General (nondepartment)
4 Fees are charged to funds receiving administrative services from another fund based on a reasonable, rational
basis. The following factors are used as applicable.
4 relative revenues
4 relative personnel
4 number of utility accounts
4 number of work orders
4 number of requisitions
Department
Facilities
Maintenance Fleet
Information
Services Joint Services General
Information Services Fund
Information Technology 28,989 4,213 46,813
Electric Fund
Electric Operations 124,224 50,168
AMR 27,140 27,365
Electric Contracts 1,390,558 443,934
Water Services Fund
Distribution & Collection 150,695 54,729
Plant Management 78,785
Contracts 1,732,686 288,976
Sanitation Fund
Sanitation Contracts 167,843 37,234
Stormwater Drainage Fund
Stormwater Drainage 76,168 9,122 266,394 33,634
Airport Fund
Airport Operations 3,553 16,925 7,278 36,680 5,798
Total 618,251 1,137,507 1,330,405 4,991,994 * 809,576
* Excludes intergovernmental charges to GTEC of $83,800.
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Utility Rate Schedule
Electric Rates (effective 06/01/03)
All Customers
Power Cost Adjustment Variable
Residential Sales Tax Inside City Limits: 1.75% of total electric charges
Outside City Limits: None
Commercial Sales Tax Inside City Limits: 8.0% of total electric charges
Outside City Limits: 6.25% of total electric charges
Residential Service
Customer Charge: $6.00 per month
Energy Charge: $0.0678 per kWh
Small General Service
Customer Charge: $12.00 per month
Energy Charge: $0.0654 per kWh
School Service
Customer Charge: $12.00 per month
Energy Charge: $0.0760 per kWh
Municipal Water & Wastewater Pumping Service
Customer Charge: $12.00 per month
Energy Charge: $0.0574 per kWh
Large General Service
Customer Charge: $20.00 per month
Demand Charge: $7.30 per kW, but not less than $365.00
Energy Charge: $0.0370 per kWh
Load Factor Credit: $0.008 per kWh for all kWh in excess of 400 kWh per kW
Curtailable Power Credit
Available to customers with demand exceeding 50 kW; contact the Energy Services Manager for details
Guard Light Service
Customer Charge: $7.50 per lamp
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Water Rates (effective 10/01/03)
Customer Charge
Inside City Outside City
3/4 inch meter $16.50 per month $21.80 per month
1 inch meter $23.00 per month $27.00 per month
1 1/2 inch meter $29.50 per month $35.00 per month
2 inch meter $48.00 per month $56.00 per month
3 inch meter $181.50 per month $211.50 per month
4 inch meter $231.00 per month $269.50 per month
6 inch meter $346.50 per month $404.50 per month
8 inch meter $462.00 per month $539.00 per month
Cost per 1,000 gallons: $2.25 $2.60
Conservation Water Rates (effective 06/01/02)
Residential Only - Effective on Billings June 1 – October 31
Inside City Outside City
Per 1,000 gallons Per 1,000 gallons
0 to 19,000 gallons $2.25 $2.60
20,000 through 29,000 gallons $3.00 $3.35
30,000 through 39,000 gallons $4.50 $4.85
40,000 gallons and up $6.00 $6.35
Wastewater Rates (effective 10/01/03)
Customer Charge: $11.75 per month
Cost per 1,000 gallons: $3.10
Residential based on winter average water use
Commercial charges are actual usage
Garbage Rates (effective 11/04/02)
All customers inside City limits must pay garbage. All customers outside City limits who receive City utilities and live
on a City garbage route may select City garbage pickup.
Sales Tax on Garbage Service: Residential and Commercial
Inside City Limits: 8.0%
Outside City Limits: 6.25%
Residential Rate: Inside City Limits - $12.50 (includes recycling)
Outside City Limits - $14.90
Non-Residential Rate: Varies - Rates will be set by type, amount and frequency of service.
Stormwater Drainage Fees (effective 12/01/02)
All residential water customers within the city limits must pay a monthly charge of $3.75. Non-residential water
customers within the city limits must pay $3.75 per unit (2,088 square feet) which is calculated on the total square
footage of impervious cover on the property.
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Utility Deposit Requirements and Service Charges
⌧ Residential Deposit - $150.00 (cash, check or credit card); Will be waived with qualifying letter of credit
⌧ Non-Residential Deposit - 1/6 Estimated Annual Bill (Cash, Check, Credit Card, Letter of Credit from a bank, or
surety bond)
⌧ Late Payment - 10%
⌧ Insufficient Check Charge - $25.00
⌧ Disconnect Service Charge for Delinquent Bill or Insufficient Check - $30.00
⌧ After Hours Reconnect Fee - $50.00
⌧ Meter Reread Charge at Customer's Request - $10.00
⌧ Temporary Service (5 days) - $35.00
⌧ New or Transfer Account Charge - $30.00 plus $30.00 during non-business hours or same day connections
⌧ Meter Test - At Cost
⌧ Credit Cards: Discover, VISA and MasterCard accepted
250
Advisory Boards and Commissions
In addition to the permanent advisory boards and commissions listed, the Council also appoints temporary advisory
committees from time to time to address specific, short-term issues. The 2003 Membership of Advisory Boards &
Commissions include:
Airport Board Advisory. Studies and makes recommendations to the City Council regarding operations and facility
improvements of the municipal airport. Ensures that the municipal airport is efficiently and adequately meeting the
needs of the City and the air transportation industry.
Mark Dietz, Chair
Jeff Gilbert
Arnold Wieder
John Bader
Don Pfiester
Howard Fomby
Tim Sullivan
Animal Shelter Advisory Board. Ensures that the City of Georgetown Animal Shelter complies with all City and
State laws governing its operation.
Leo Prather, Chair Denise Askea Joanne Crossland
Ken Finn Dr. Susan Hopper, DVM Gabe Sansing
Joan Stanley
Building Standards Commission. Hears appeals and renders decisions on rulings by City building inspectors or
officials in regard to code interpretation, enforcement, and substandard housing or structures within the City.
Jim Schiller, Chair
Richard Lenning
Sidney Smithson
Edward Baxter
Edward Martin
Billy Strickland
Cornelius Daly
Lloyd Potts
Convention & Visitors Board. Develops and advises the City Council on plans to promote convention business
and tourism in Georgetown.
Kent Huntsman, Chair Scherry Chapman Rosemary “Posey” Duncan
Martha Lawlor W.P. (Bill) Lipscomb Carolyn Martin
Michael Martin Jennifer Stephens James Timmons
Ellen Weimer John Wiley
Economic Development Commission. Makes recommendations to the City Council regarding the economic
development goals, strategies and policies for the City of Georgetown.
Dr. Ronald L. Swain, Chair
Henry Carr
Ralph Nayman
Joe Pondrom
Henry Boecker
Tom Crawford
Edward O’Rourke
Richard (Rick) Smith
Davidica Blum
Kathryn Heidemann
Russell Peterman
Georgetown Housing Authority. Establishes policy and reviews operations of subsidized housing in Georgetown.
Five members are citizens at-large and two members must be a housing authority resident.
Bob Horick, Chair
Sissy Lego
Fran Carlson
Ann Lockhart
Amber Hardin
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Georgetown Transportation Enhancement Corporation. The purpose of this Corporation is to promote economic
and community development within the City and the State of Texas through the payment of costs for streets, roads,
drainage, and other related transportation system improvements, including the payment of maintenance and operating
expenses associated with such authorized projects.
Jack Noble, President
Ken Evans
Doug Smith
Henry Carr, Vice President
Bill Masterson
Mary Louise Poquette, Secretary
Gabe Sansing
Georgetown Utility System Advisory Board. Makes recommendations to the City Council regarding staff
presentations related to capital improvement projects and priorities, utility services, resource supplies and other
Council-assigned projects.
Doug Smith, Chair
Ken Evans
Kendall Young
Stanley Bland
John Gavurnik
Larry Brown
Jack Hunnicutt
Georgetown Youth Advisory Board. Advise the City Council on youth related issues. Members, ranging in age
from thirteen to eighteen years old, work to develop future leaders, promote positive adult/youth cooperation and
dialogue, and encourage youth participation in solving community concerns. This board can have up to 24 members.
Jonathan Easley, Chair
Rebecca Counts
Lisa Foster
Jake Maspero
Amanda Patterson
Jonathan Ross Soape
Wes Varner
Candice Butler
Jennifer Daleiden
Sarah Hilliard
Ashleigh McCord
Lauren Senchack
Emma Strobell
Tara Walker
Lindsey Cockerell
Jillian Daleiden
Sarah Marriott
Philip May
Steffanie Sikes
Melody Varner
Historic & Architectural Review Commission. Makes recommendations to the City Council on the designation
of historic sites or districts, acts and assists the City Council in formulating design guidelines and other supplemental
materials relevant to the historic preservation or design review, approves or disapproves Certificates of Design
Compliance, renders advice and guidance, upon request of property owners or occupants on new construction or the
restoration, alteration or maintenance of any historic resource or other building within the District, and performs any
other functions requested by the City Council.
Joe Burke, Chair
John Chapman
Len Lester
Mike Sparks
Virgil Buell
Clare Easley
Jim Keys
John Truehardt
Kelly Burris
Beebe Gray
Karalei Nunn
Library Advisory Board. Makes recommendations regarding the development of the book collection, programming,
and other services provided by the Georgetown Public Library.
Judy Parks, Chair
Zora Evans
Georgene Richaud
Gerald Carson
Ema Fielder
Gerald Sensabaugh
Jackie Cuozzo
Judy Griffith
Nancy Varljen
Main Street Advisory Board. Makes recommendations to the City Council regarding the promotion, maintenance,
and encouragement of the civic, social, commercial, tourist and economic welfare of the historic downtown central
business district of Georgetown.
Bryant Boyd, Chair
Glenda Overfelt
Liz Atherton
Ellie Skross
Joshua McClure
Robert Weimer
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Parks and Recreation Board. Recommends, to the City Council, uses of parkland and parks/recreational facilities
and improvements in programs, activities, and facilities to meet community recreation needs and interests.
John Houck, Chair
Lilya Crystal
Jeff Gambino
Mark Ramsey, Vice Chair
Phil Davis
Mitchell Knauth
Douglas Blackard, Secretary
Ron Doernbach
James Watson
Planning & Zoning Commission. Studies and reviews plans and recommends to City Council action to be taken
in regard to City growth and development and comprehensive community planning. Also, makes recommendations
and acts as a hearing board on zoning requests. Drafts new development regulations and conducts periodic review
of plans and regulations.
Christopher Aadnesen, Chair
Harry Gibbs
William Moore
Linda Turner
Johnny Anderson
Audrey McDonald
Brian Ortego
Michelle Gambino
Marlene McMichael
Jennifer Shield
Public Safety Advisory Board. The seven-member Public Safety Advisory Board was created by the City Council
in April, 2002, to work with staff and Council to establish a new compensation package for safety personnel; to work
with staff to determine the appropriate process for citizen complaint resolution and recommendation to the Council;
to develop a long-range Public Safety Strategic Plan; and to work with staff and Council on major public safety
projects that arise.
Paul Webster, Chair
Bob Phillips
Norma Clark
Bill Shanhouse
Robert Maier
Greg Zavala
Williamson County & Cities Health District. Advises state, county and local elected officials on the status of public
health matters in Williamson County.
Lettie Lee, Georgetown
(remaining members appointed by County Commissioners Court)
Margaret Fink, Round Rock
Katherine Galloway, Cedar Park
Scholley Bubenik, Taylor
Vernon O’Rourke, Commissioners Court
Mary Faith Sterk, Commissioners Court
Karen Wilson, Director of Health District
Zoning Board of Adjustment. Hears and decides appeals that allege that there was an error in any order,
requirement, decision, or determination made by a City administrative officer, department, or board. Also acts on
applications that are submitted for a variance or a special exception to City zoning regulations.
Tom Nichols, Chair
Don Mabray
Ken Fuller
William Sattler
Audrey McDonald