“This budget will raise more total property taxes than last year’s · 2019. 9. 27. · 1 “This budget will raise more total property taxes than last year’s budget by $54,143

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“This budget will raise more total property taxes than last year’s budget by $54,143 or 3.2%. The property tax revenue to be raised from new property added to the tax roll this year is $1,632,639.”

The proposed tax rate is $0.583 per $100 of valuation and is the current tax rate—the same rate adopted last year.

On August 26, 2019, the members of the governing body approved the fiscal year 2019-20 budget as follows:

FOR: Lamar Gillian, Stephen Laura, Miguel Valverde, John Halpin AGAINST: Jesse Pacheco PRESENT AND NOT VOTING: None

ABSENT: None

City Council proposes to use the increase in revenue for the purpose of maintaining City services, economic development, and addressing

long-term infrastructure needs.

Property Tax Rate Comparison FY 2018-19 FY 2019-20

Adopted Tax Rate 0.583000 0.583000 Effective Tax Rate 0.569201 0.579032 Effective Maintenance & Operations 0.542121 0.551496 Rollback Tax Rate 0.611955 0.619426 Debt Tax Rate 0.027710 0.023162

Total debt obligation secured by property taxes is $137,564. On August 26, 2019, the members of the governing body adopted the City’s property tax rate of

$0.583 per $100 of valuation for tax year 2019 as follows:

FOR: Lamar Gillian, Stephen Lara, Miguel Valverde, John Halpin AGAINST: Jesse Pacheco

PRESENT AND NOT VOTING: None ABSENT: None

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BALCONES HEIGHTS, TEXAS Council & Senior Staff

CITY COUNCIL

SUZANNE DE LEON

Mayor

STEPHEN LARA Councilmember, Place 1

JESSE PACHECO

Councilmember, Place 2

JOHN HALPIN Councilmember, Place 3

LAMAR GILLIAN

Councilmember, Place 4 Mayor Pro-Tempore

MIGUEL VALVERDE

Councilmember, Place 5

SENIOR STAFF

DAVID J. HARRIS, CITY ADMINISTRATOR DELIA SANCHEZ, CITY SECRETARY

BROCK WARD, FIRE CHIEF JOHN JAHANARA, POLICE CHIEF

LORENZO NASTASI, ECONOMIC DEVELOPMENT & PUBLIC AFFAIRS JANET THELEN, COMMUNITY DEVELOPMENT DIRECTOR

FLOYD MESSICK, FINANCE DIRECTOR

THANK YOU FOR YOUR HELP!

The City Administrator and Finance Director express their appreciation to all the Staff for their assistance and cooperation

in completing the annual budget.

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Introductory Transmittal Letter ………………………………………………………………………………………………. 5 Strategic Plan ..…………………………………………………………………………………………….…… 10 Organization Chart ………………………………………………………………………………………….. 11 Personnel Complement …………………………………………………………………….………..…… 12 Budget Policies ………………………………………………………………………………………………… 15 Budget Process …….…………………………………………………………………………….…………… 17 Budget Timeline………………………………………………………………………………………..…….. 20

Summaries

Budget Overview ……..………………………………………………………………..…………….…….. 23 Sales Taxes ………………………………………………………………………………………………………. 28 Property Taxes …………………………………………………………………………………………………. 30 Combined Budget …..……………………………………………………………………………………….. 35

General Fund

General Fund Overview …………..………………………………………………………………………. 38 Departments ……………………………………………………………………………………………………. 43 City Council ………………………….……………………………………………………………………. 43 Administration ………………………………………………………………………………………..…. 44 Information Technology ……….….……………………………………………………………….. 50 Municipal Court ……………..……………………………………………..…………………….……. 52 Police Department …….………………………………………………………………………………. 54 Communications ….……..………………………………………………………………………….…. 57 Fire Department …………………………….………………………………………………………….. 59 Community Development ..…..…………………………………………………………………... 62 Public Works ………………………………………………………………………..….………………... 65 Economic Development & Public Affairs ……………...….……………..…………………. 68 Non-departmental …………………………………………………………………………………….. 71

Special Revenue Funds

Special Revenue Funds Overview ………………..…………………………………….………….... 75 Capital Projects Fund ……………………………………………………………………………………….. 77 Capital Improvement Plan ……………………………………………………………………………….. 78 Federal Forfeitures Fund …..…………………………………………………………………………….. 85

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Special Revenue Funds continued State Forfeitures Fund ……………………………………………….…………..………………….…… 87 Streets Maintenance Fund ...………………………………………………..…………………………. 89 Traffic Safety Fund ..………………………………………………………………………………………… 91 Balcones Heights Crime Control District Fund …..………………………….……………..…. 96 Seized Assets Fund …..……………………………………………………….…..……………………….. 98 Hotel Occupancy Tax Fund ………………….………………………………………………………….. 99 Child Safety Fund ..………………………………………………………………………………………… 102 Impound Fund ……..……………………………………………………………………………………….. 103 Auction Fund ……..……………………………………………………………………………………...…. 105 Court Security & Technology Fund .………….……………………………………………………. 107 Grants Fund ………………………………………………………………………………………………….. 109 Parks Fund ..………………………………………………………………………………………………….. 111 Economic Development Fund .....………………………………………………………………….. 112 PEG Fund .……………………………………………………………………………………………………… 114 Debt Service Fund .….……………………………………………………………………………………. 115

Proprietary Funds

Proprietary Funds Overview ..……………………………………………………………………….. 118 Sewer Fund ..……..………………………………………………………………………………………….. 119 Storm Water Fund .……………………………………………………………………………………….. 121

General Information

General Information ………..……………………………………………………………………………. 124 Salary Schedule ..…………………………………………………………………………………………… 127 Holiday Schedule ……………………………………………………………………….….……………… 128

Glossary of Terms

Glossary of Terms .………………………………………………………………………………………… 130

Attachments Ordinances ..….………………………………………………………………………………………………. 136

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CITY OF BALCONES HEIGHTS 3300 HILLCREST DR.

BALCONES HEIGHTS, TEXAS 78201 (210) 957-3300

August 26, 2019

Dear Honorable Mayor, Members of the City Council, and Citizens of Balcones Heights:

It is our pleasure to present the City of Balcones Heights FY 2019-20 approved budget.

The Budget is fiscally conservative and utilizes City resources to maintain economic development, sustain City service levels, and address long-term infrastructure needs. This is accomplished by maintaining the same tax rate as last year.

Staff conducted two workshops on the proposed budget and tax rate on July 15, 2019 and July 29, 2019. The City Council held two public hearings on the proposed budget and tax rate on August 12, 2019 and August 19, 2019.

The City took out advertisements in the newspaper, posted the budget and public hearings on the City’s website, and provided copies of the budget to anyone that requested it. The final tax rate and budget was adopted at the regular City Council meeting on August 26, 2019.

Legislative Hurdles Each budget has its unique obstacles and this one was no exception. The Texas Legislature proposed numerous bills this past session that impacted Texas cities.

The City partnered with the Texas Municipal League and other municipalities to voice our concerns to many of these proposals. The Mayor, City Administrator, and department heads also testified against specific bills at the Capitol. In the end, lawmakers passed four bills that affect City finances to various degrees.

Senate Bill 2 lowers the City’s ability to raise its property tax rate in fiscal year 2020 from 8% to 3.5% before triggering an automatic rollback election. As there is a small city exemption of $500,000 included in the final bill, the fiscal impact to the City is negligible.

House Bill 1631 eliminates Red-light Camera Programs. However, there is a provision in the bill that allows programs to ride out their existing contracts. The City’s contract with its Red-light Camera provider expires in 2034.

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Additionally, HB 1631 eliminates the Scofflaw provision which is the key enforcement component of the Red-light Camera Program. Without it, violators have diminished incentive to pay their fines. It is still too early to judge the impact of this program change. Staff will continue to monitor the situation.

Senate Bill 1152 reduces the fees that cable and telecommunication companies pay to use City right-of-ways. Companies that pay both cable and telephone fees no longer have to pay the lesser of the two fees. The approved budget has less revenue in this category.

House Bill 852 prevents the City from using the project value or cost of construction to calculate building permit and inspection fees for residential structures. Council approved Staff’s recalculation of the fee based on square footage. As such, there was little impact to the approved budget.

Strategic Plan Guidance for the budget comes from the City Council’s Strategic Plan along with inputs from departments and the City’s elected officials.

The goals of the City’s Strategic Plan are: 1. Long-term Funding Sustainability 2. Establish a Positive Image in the Broader Community 3. Increase Public Safety 4. Improve City Infrastructure

The FY 2019-20 approved budget funds economic development incentives, City services, and a Capital Improvement Plan (CIP) to advance our strategic goals.

Economic Development The City partnered with developers and provided incentives to businesses to sustain economic development in FY 2018-19 and that growth continues into the new fiscal year.

Chick-fil-A opened its doors in June 2018 boosting sales tax collections and increasing the City’s property tax base. As part of an agreement with the developers that brought in the restaurant, plans are moving forward for the construction of six town homes on Gentleman Road.

The City provided Wonder Plaza with a $22,482 economic development grant to assist in a $300,000 renovation which included a new façade and new individual channel signs. Additionally, the Santikos Bijou Cinema Bistro underwent a $250,000 renovation in 2019 for new seating, a new HVAC system, and an expanded kitchen.

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Methodist Texsan Hospital continues renovation projects into FY 2019-20. Expected completion for expansion of the emergency room is December 2019. Other projects planned in 2020 include numerous building expansions and construction of a parking garage.

Services There are no changes to City service levels with the FY 2019-20 approved budget. City services are the core functions that citizens expect from their city such as public safety, municipal court, street maintenance, parks, health services, and animal control.

Cost for personnel services in the FY 2019-20 approved budget are $4,251,485 and include scheduled merit increases and a 1.4% Cost of Living Adjustment (COLA) for all personnel.

The City switched healthcare providers for FY 2019-20 providing lower deductibles and expanded plan options to employees. The switch also lowered City healthcare cost by 0.8% over FY 2018-19 estimated final expenses.

The adopted budget reclassified the Community Relations Coordinator and the Finance and Administration Clerk positions from hourly to salaried. Additionally, new certification incentives for Fire and Communications personnel were approved. Other salary adjustments for certain positions may be considered after the Collective Bargaining Agreement is negotiated with the Balcones Heights Police Officers Association.

Capital Improvement Plan In the FY 2018-19 budget, council voted to discontinue the COLA for retirees in the Texas Municipal Retirement System (TMRS). This eliminated an unfunded retirement liability of $2.3M and lowered the City’s annual TMRS contribution costs going forward.

Cost savings from discontinuing the retiree COLA were used to help fund a $300,000 transfer into the Capital Fund in FY 2018-19. The transfer is increased to $400,000 in the FY 2019-20 approved budget. This recurring transfer will help fund equipment and infrastructure needs in accordance with the Capital Improvement Plan (CIP).

The CIP is included within this budget document. It is a multi-year plan that details how the City could possibly use the recurring transfer into the Capital Fund to finance infrastructure improvements, major equipment purchases, park improvements, and facility renovations.

FY 2019-20 total capital expenditures are $490,000: $36,000 to paint the Justice Center exterior; $50,000 to replace one police vehicle; and $404,000 for the Vivian Lane street project.

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Streets Initial costs for the Vivian Lane street reconstruction project is $704,000 and is scheduled to begin in 2020. Bexar County approved a $300,000 contribution towards the project in the form of a Community Development Block Grant (CDBG). The City’s match of $404,000 is funded in the FY 2019-20 adopted budget.

In FY 2018-19 the City partnered with the Texas Department of Transportation (TxDOT) to install new street signage at the IH-10 Crossroads intersection. Additionally, repairs to sections of Babcock Road and Hillcrest Drive were initiated along with filling numerous potholes and crack sealing city wide.

In June 2019, the City approved the construction agreement for Glenarm Drive Phase 2 and work has since started. Completion is slated for November 2019; City cost is $422,045 in the current fiscal year budget.

Staff continues to lock down costs for new bus pads in support of the Hillcrest Drive project. Initial estimate for pavement rehabilitation is $500,000. Some preliminary costs may be incurred in FY 2019-20 in the Capital Fund, however revenues and expenses for this project will be reflected in the next fiscal year’s budget.

The FY 2019-20 approved budget also reflects the recurring transfer of $120,000 from the General Fund into the Streets Fund which pays for ongoing maintenance and repairs of streets, drainage, curbs, sidewalks, signs, and pavement markings. Repairs to sections of Balcones North and crack sealing on various roads are planned for 2020.

Debt Current City long-term debt is $137,564 for repayment on a general obligation bond for the 2006 fire ladder truck purchase. The final payment on the bond is scheduled for FY 2020-21.

The FY 2019-20 approved budget reflects the annual principle and interest payment of $68,666. The debt is paid in the Debt Service Fund using the Interest and Sinking (I&S) portion of property tax collections.

The City can purchase a tax note in FY 2019-20 to finance the Vivian Lane street reconstruction project. Purchase would be made at such a time to ensure that the repayment on the note would reflect in the FY 2020-21 budget.

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Deliberation Each budget is a juggling act between services, infrastructure and the tax rate. The FY 2019-20 approved budget strikes a balance between services and infrastructure without raising the property tax rate. However, with an aging City infrastructure, the balance between service levels and street reconstructions is the primary point of deliberation for the upcoming fiscal year.

The document that follows goes into greater detail on the City’s budget to include its funds, revenues, expenses, and departments. The budget processes, descriptions, and other relevant information is given to assist readers of the document.

Should you have any questions, please do not hesitate to contact Finance Director Floyd Messick or this Administrator.

Respectfully submitted,

David J. Harris City Administrator

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Vision Statement Balcones Heights strives to create a vibrant, inclusive, and healthy environment that contributes to a high quality of life and opportunities. This is achieved through a prosperous economy, quality housing choices, a thriving business corridor, well-maintained infrastructure, and excellent municipal services.

Mission Statement Our mission is to provide a safe environment through efficient and quality services for our community.

Core Values

Commitment We are committed to transforming our City. We are committed to providing essential core services to our citizens.

Responsive We are eager to serve our citizens in a timely, respectful, and professional manner.

Inclusion We will make decisions with respect to the diverse community we serve.

Collaboration We will collaborate with the community, business leaders, and developers to achieve transformation.

Accountability We will conduct business in an open and transparent manner.

Strategic Goals

1. Long-term Funding Sustainability

2. Establish a Positive Image in the Broader Community

3. Increase Public Safety

4. Improve City Infrastructure

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Citizens of Balcones Heights

Mayor and City Council

City Administrator

Boards & Committees

Audit/Budget Committee BHPOA Negotiations Board of Adjustments Code Enforcement Parks & Facility Infrastructure Planning & Zoning

Fire Chief

Police Chief

City Secretary

Economic Development

Director

Finance Director

Finance Admin Asst

Code Enforcement

Community Relations

Senior Deputy Court Clerk

Fire Captains

Community Development

Director

Deputy Court Clerks

Fire Fighters

Fire Lieutenants Public Works

Patrol Lieutenant

Investigations Lieutenant

Investigators Traffic Safety

Police Sergeants

Police Officers

Police Corporals Dispatchers

Dispatch Supervisor

Contracted Services

Auditor Building Inspector City Attorney City Engineer City Prosecutor Health Inspector Municipal Judge Warrant Officer

Street Maintenance

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FY15-16 FY16-17 FY17-18 FY18-19 FY 19-20

General Fund

Administration City Administrator 1 1 1 1 1City Secretary 1 1 1 1 1Finance Director 1 1 1 1 1Finance/Administrative Asst. 1 1 1 1 1

Totals 4 4 4 4 4

Municipal CourtCourt Administrator 1 1 1 1 1Senior Deputy Court Clerk 1 1 1 1 1Deputy Court Clerk 2 2 2 2 2

Totals 4 4 4 4 4

Community DevelopmentDirector of Community Development 1 1 1 1 1Code Enforcement Officer 1 1 1 1 1Part-time Projects Coordinator - - - 1 1Part-time Janitorial 1 1 1 1 1

Totals 3 3 3 4 4

Public Works Public Works Supervisor - - 1 1 1

Maintenance Worker 1 1 1 1 1Totals 1 1 2 2 2

Fire DepartmentFire Chief 1 1 1 1 1Fire Captain 3 3 3 3 3Fire Lieutenant 3 3 3 3 3Fire Fighter 9 9 9 9 9Part-time Fire Fighter 5 5 5 5 5

Totals 21 21 21 21 21

CommunicationsDispatch Supervisor 1 1 1 1 1Dispatcher 4 4 4 4 4Part-time Dispatcher 4 4 4 4 4

Totals 9 9 9 9 9

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FY15-16 FY16-17 FY17-18 FY18-19 FY 19-20

General Fund

PolicePolice Chief 1 1 1 1 1Lieutenant 1 1 1 1 1Police Sergeant 1 1 3 2 2Police Corporal - 3 3 2 2Police Officer 5 2 2 2 1Part-time Police Officer 1 1 1 1 1

Totals 9 9 11 9 8

Crime Control Fund

Lieutenant 1 1 1 1 1Police Sergeant 4 4 3 2 2Police Corporal - - - 2 3Police Officer 3 3 4 3 3

Totals 8 8 8 8 9

Traffic Safety Fund

Police Sergeant 1 1 - - -Police Corporal - 2 2 1 -Police Officer 3 1 1 2 3Administrative Assistant 1 1 1 1 1Part-time Officer 1 1 1 1 1

Totals 6 6 5 5 5

Court Security & Tech Fund

Part-time Bailiffs 2 2 2 2 2Totals 2 2 2 2 2

Hotel/Motel Fund

Director of Economic Development 1 1 1 1 1Community Relations Coordinator 1 1 1 1 1

Totals 2 2 2 2 2

Storm Water Fund

Public Works Supervisor 1 1 - - -Totals 1 1 - - -

Total Full Time Positions Authorized 56 56 57 55 55Total Part-Time Positions Authorized 14 14 14 15 15

Total Authorized Personnel 70 70 71 70 70

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In FY 2017-18, the Maintenance Supervisor position was moved from the Storm Water Fund to the General Fund’s Public Works department.

A part-time position was added in Community Development in FY 2018-19 to assist with the workload in the department. This position carries forward and was funded for half the year in the FY 2019-20 approved budget.

Frozen full-time positions going into FY 2019-20 include: Court Administrator in the General Fund, and Administrative Assistant position in the Traffic Safety Fund.

Police Personnel Police personnel are funded in the General Fund, Balcones Heights Crime Control District (BHCCD) Fund, and the Traffic Safety Fund. Personnel are moved among these funds each fiscal year as budget needs warrant. The Personnel Complement above reflects the distribution of police personnel by funds.

A reorganization of police personnel occurred in FY 2016-17. Five Officer positions were converted to the newly created Corporal positions with no change to the overall complement.

In FY 2017-18 one Officer position was added to the police complement in lieu of filling the part-time officer and Administrative Assistant positions which were vacated the Traffic Safety Fund.

In FY 2018-19, council voted to end the City’s participation in the DEA program. The officer dedicated to the program was returned to patrol duties and one Officer position was cut.

Additionally, one Sergeant position was eliminated and a second Sergeant position was converted to an Officer position as part of a reorganization of the Investigation’s unit.

Total police complement from all funds, not including civilian positions, are grouped by position below:

FY15-16 FY16-17 FY17-18 FY18-19 FY 19-20Police Positions Authorized

Police Chief 1 1 1 1 1Lieutenants 2 2 2 2 2

Sergeants 6 6 6 4 4Corporals 0 5 5 5 5

Officers 11 6 7 7 7Total Full-time Police 20 20 21 19 19

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Fiscal Year The fiscal year of the City begins on October 1 and ends on September 30.

Submission of Budget Each department will submit its budget requirements to the City Administrator for review and approval.

On or before August 1 of each year, the City Administrator will submit to the City Council, and file with the City Secretary, a budget for the ensuing fiscal year.

The City Administrator will include a budget message as a part of the annual budget which will outline the proposed financial plan of the City, describe the important features of the budget, indicate any major changes from the current year in programs, and include such other material as the City Administrator deems desirable.

Budget Composition The budget will provide a complete financial plan of all City funds. It will show in detail all estimated income, the proposed property tax levy, and all proposed expenditures including debt service.

Budgetary accounting is maintained on a line-item basis. The budget is controlled at the department level. Capital projects are controlled at the project level.

The budget will be arranged to show comparative figures for actual and estimated income and expenditures of the current fiscal year and actual income and expenditures of the preceding fiscal year.

The total of the proposed expenditures will not exceed the total of estimated income.

Notice and Hearing After the proposed budget is filed with the City Secretary, the City Council will have published in one or more newspapers of general circulation in the City, a general summary of the budget and a notice stating:

• The time and place where copies of the budget are available for inspection by the public. • The time and place, not less than 15 days after such publication, for a public hearing

before the City Council on the budget.

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After the public hearing, City Council may adopt the budget with or without amendment. In amending the budget before adoption, it may add or decrease programs or amounts, and may delete or decrease any programs or amounts, provided that no amendment to the budget will increase the authorized expenditures to an amount greater than the total of estimated income.

City Council Adoption of the budget will constitute appropriations from the funds indicated and will constitute a levy of the property tax adopted.

The City Council will, by ordinance, adopt the budget on or before the twentieth day of the last month of the fiscal year currently ending.

If Council fails to adopt the budget by this date, amounts appropriated for current operations for the current fiscal year will be deemed adopted for the ensuing fiscal year on a month-to-month basis, with all items in it prorated accordingly, until Council adopts a budget for the ensuing fiscal year.

Budget Revisions At any time during the fiscal year the City Administrator may transfer, without budget amendment, part or all of any unencumbered appropriation balance among line items or programs within a department and, upon written request by the City Administrator, the City Council may transfer, without budget amendment, part or all of any unencumbered appropriation balance within any City fund from one department to another.

For more information on the City’s financial policies and ordinances, see the Code of Ordinances link at https://bhtx.gov/departments/city-secretary.

https://bhtx.gov/departments/city-secretary

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Background The budget is the financial plan for the City. It is also a policy device for the Council, an operations guide for the staff, and a communications tool to the public. The City prepares a budget of all of its funds based on a fiscal year starting on October 1 and ending on September 30 each year.

The budget is prepared using Generally Accepted Accounting Principles. The budget differs from the Comprehensive Annual Financial Report (CAFR) as the budget does not show the City’s liabilities, or depreciation expenses.

Each fund in the budget shows the FY 2017-18 actual audited revenues, expenses, and ending fund balance. That ending balance becomes the beginning fund balance for the FY 2018-19 budget.

Final calculations are then made for all revenues and expenses in the FY 2018-19 budget and an estimated final ending fund balance—total revenues minus total expenses—is calculated. This amount becomes the estimated beginning fund balance for the FY 2019-20 budget.

Revenues and expenses are calculated based on prior years’ history, trend analysis, economic forecasting, and any shifts in policy or strategic goals as laid out by Council.

Both revenues and expenditures are constantly being adjusted throughout the final months and are subject to change up to the night the City Council officially adopts the budget.

Structure The accounts of the City are organized and operated on the basis of funds. Funds are established according to governmental accounting standards and are used to aid management in demonstrating compliance with finance-related legal and contractual provisions.

The City’s budget has three specific fund groups: The General Fund, Special Revenue Funds, and Proprietary (or Enterprise) Funds.

The General Fund is the primary operating fund for the City and it accounts for the normal recurring operating activities of the City such as police and fire protection, emergency medical services, economic development, visitor initiatives, maintenance of streets and parks, planning and zoning, and general administrative services. These activities are typically funded by user fees, or property, sales, and franchise taxes.

Special Revenue Funds are used to account for proceeds of specific sources that are legally restricted to expenditures for specific purposes. The City has seventeen of these funds.

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Proprietary Funds are used to account for any activity where users are charged a fee for goods and services similar to a private business. The City’s two Proprietary Funds are Sewer and Storm Water.

Basis of Accounting & Budgeting Accounting records and budgets for governmental fund types are accounted for using the modified accrual basis of accounting. That is, revenues are recognized when they become measurable and available. Expenditures are generally recognized when the related liability is incurred.

The level of control—the level at which expenditures may not exceed the budget—is the fund level. The City Administrator is authorized to approve a transfer of budgeted amounts within departments; however, any revisions that alter the total of any fund must be approved by the City Council. Budgetary accounting is maintained on a line-item basis.

Guidelines In addition to the financial policies the City has adopted, the following assumptions, or guidelines, are used in crafting the budget each year:

• We are mindful of the City’s limited resources and the budget will balance the needs for services, economic development, and infrastructure while maintaining the lowest possible property tax rate.

• The City will aggressively investigate and pursue federal, state, and foundation grants to address City needs and lower budget expenses.

• The budget is conservatively crafted; we initially use the lower of revenue estimates and the higher of expense estimates until the actual amounts are reasonable known.

• The staff will submit a balanced budget each year, which means that expenditures will not exceed current year revenues plus available fund balance, reserves, and transfers.

• In certain funds, when revenues exceed expenses, we may increase the contingency expense amount to show the fund as balanced to zero.

• The budget will maintain at least three months of reserves in the General Fund.

Closeout The City’s current fiscal year budget is often amended during the year and as part of the approval process for the next budget. Amendments can be made anytime during the fiscal year, but are typically made in March and September.

Along with estimating revenues and expenses for the upcoming fiscal year, staff projects final estimates for the current budget as well. These projections are reviewed by the City

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Administrator, approved by Council, and then set as the final budget for the current fiscal year in the September amendment.

After the current fiscal year budget is closed, the City receives an annual audit of the books, accounts, financial records, and transactions of all funds of the City by independent certified public accountants selected by the City Council.

Budget Calendar Presenting a budget is a time-consuming process that requires involvement from each of the City’s departments and City leaders. A budget requires strategic vision and goals, conservative allocation of limited resources, compromise, and often times difficult decisions.

Budget preparatory work starts in January when departments review and update their portions of the Implementation Plan. City Council is also requested to provide direction to the staff regarding its priorities at this time.

Running concurrently with the budget process is calculating the City’s property tax rate. In late-July each year, the County Appraisal District assesses the value of properties in the county and releases the values to the cities and other taxing jurisdictions—allowing the City to compute its proposed property tax rate.

The budget calendar serves as an approximate timeline for the budget and tax rate processes, but it is subject to change as circumstances warrant.

Involvement from City leaders and citizens is crucial to the process; the staff and City Administrator take great efforts to keep both informed throughout the budget cycle.

Special meetings, workshops and public hearings are conducted across the spring and summer months prior to presenting the proposed budget. Public hearings on the budget and tax rate are held prior to adopting the budget and tax rate in late August.

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Jan — Mar Budget Kick Off Review Strategic & Implementation Plans Distribute budget forms to departments Meet with Mayor & Council to discuss budget vision and direction

April Develop Staff Budget Review department budgets and capital requirements

Present staff budget to the City Administrator for review Verify preliminary certified property values from the County Tax Assessor-Collector’s office

May Present Staff Budget

Present Staff budget to Council for deliberation Incorporate any changes

June Present Draft Budget Present Proposed Budget to Council Post the budget with City Secretary and on the website Provide estimate of City tax roll to Assessor-Collector’s office July Budget Workshops

Council deliberates the budget in Budget Workshops Certify City tax roll and verify effective & rollback tax rates

August Public Hearings & Adoption Hold public hearings for the budget and tax rate Council votes to adopt the budget

September Notifications Notify Tax-Assessor of adopted tax rate Post approved budget with City Secretary and on website Distribute budget document October Adopted Budget and Tax Rate go into Effect

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Balcones Heights FY 2019-20 Budget & Tax Rate Calendar

Date Activity Responsible Party Monday March 4

Monday March 11 Monday March 25

Distribute budget forms to departments

Meet with Finance Committee to discuss budget vision and direction

Staff returns budget forms to Finance

Finance

Staff

Staff

Monday April 1

Monday April 29

Review department budgets and capital requirements

Verify preliminary certified property values from Bexar County Tax Assessor-Collector’s office

City Administrator

Finance

Wednesday May 1

Monday May 13

Present Staff budget to the City Administrator for review

Staff meets with City Administrator to finalize staff budget

Staff

Staff

Monday June 10

Monday June 10

Monday June 10

Monday June 17

Present proposed budget to Finance Committee

Staff briefs capital requirements

Post the budget with City Secretary and on the website

Provide estimate of City tax roll to Assessor-Collector

Staff

Staff

Finance

Finance

Wednesday July 3

Monday July 8

Monday July 15

Wednesday July 17

Thursday July 18

Monday July 29

Wednesday July 31

Post notification of Budget Workshop #1 on July 15th

Present draft budget to Council

Conduct Budget Workshop #1

Post notification of Budget Workshop #2 on July 29th

Certify City tax roll and verify effective & rollback tax rates

Conduct Budget Workshop #2

Publish notification of Public Hearing #1 on August 12th

City Secretary

Finance

Finance

City Secretary

Finance

Finance

City Secretary

Wednesday August 7

Monday August 12

Monday August 19

Monday August 26

Publish notification of Public Hearing #2 on August 19th

Hold Public Hearing #1 for the proposed budget & tax rate

Hold Public Hearing #2 for the proposed budget & tax rate

Council votes to adopt the budget and tax rate

City Secretary

Finance

Finance

Council

Tuesday September 3

Tuesday September 3

Wednesday September 4

Monday September 9

Notify Tax-Assessor of adopted tax rate

Post adopted budget - City Secretary and City website

Publish Notice of Availability

Distribute budget document

Finance

Finance City Secretary

Finance

Tuesday October 1 Adopted budget and tax rate goes into effect

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BUDGET OVERVIEW

Authorized Fulltime Positions: 55 Fulltime Police: 19 Fulltime Fire: 16 Total Payroll Cost: $4,251,485 Total City Debt: $137,564 Approved Tax Rate: $0.583/$100

The approved budget focuses on services, economic development, and infrastructure with no increase to the City’s property tax rate.

GENERAL FUND REVENUES

The City’s largest fund is the General Fund (GF). It is the primary fund used by a government entity.

The activities paid for in the GF constitute the core operational and administrative tasks of the City.

The two single largest revenue sources to the fund are sales taxes (36%) and property taxes (35%).

GF reserved fund balance is over three months—$1,603,781.

GENERAL FUND EXPENSES

City services are the core services citizens expect from their city such as public safety, municipal court, streets, parks, health & animal control.

City service costs are 66% of GF expenses. Public safety services for Police, Fire, & Communications are nearly 50%.

GF Contingency is $153,712

Budget Revenues

Total Revenues $9,320,301

Total Expenses $8,904,901

GF Revenues

GF Revenues $4,805,560

GF Expenses

GF Expenses $4,805,560

Fines & Forfeitures Franchise Taxes Transfers In Permits & Fees Other Revenues

Proprietary Funds $909K

Special Revenue Funds $3.6M

General Fund $4.8M

Other Expenses $1.62M

City Services $3.18M

Property Taxes $1.67M

Sales Taxes $1.73M

Other $1.4M

Non-department Administration Information- Technology

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Overview The Budget is fiscally conservative and utilizes City resources to sustain City service levels, maintain economic development, and address long-term infrastructure needs. This is accomplished by maintaining the same tax rate as last year.

Total budget revenues for the FY 2019-20 approved budget are $9,320,301 and total expenses are $8,904,901. All funds are balanced with no planned deficit spending projected in any fund.

Total Budget

FY 2017-18 Actual

FY 2018-19 Estimated

FY 2019-20 Approved Budget

Total Budget Revenues 9,505,285 9,856,267 9,320,301 Total Budget Expenses 9,473,361 9,151,212 8,904,901

Revenue/Expenses 31,924 705,055 415,400

FY 2019-20 approved total budget revenues are down 5.4% and total expenses are down 2.7% over FY 2018-19 estimated final numbers.

General Fund General Fund revenues total $4,805,560 for the FY 2019-20 approved budget, which is a 2.5% increase over FY 2018-19 estimated final collections. The increase is attributed largely to increases in sales and property tax collections in the approved budget.

General Fund expenses are $4,805,560 and reflect a 4.6% increase over our FY 2018-19 estimated final expenses. This change is due to increasing the transfer amount out to the Capital Fund and increasing the contingency amount in the General Fund.

Special Revenue Funds The City’s seventeen Special Revenue Funds combined see a 15.5% decrease in total revenues in the FY 2019-20 approved budget. Notable revenue decreases are accounted for in six funds:

• $302K in the Economic Development Fund as the $300K bridge loan (revenue side) completed in FY 2018-19;

• $139K in the Grants Fund as there is only one street project recorded in the 2019-20 approved budget;

• $114K in the Seized Assets Fund as there was a large seizure of cash recorded in FY 2018-19;

• $100K in the two Forfeiture Funds as we recognized $60K of grant funds in FY 2018-19 and equitable share funds are decreased in the FY 2019-20 approved budget; and,

• $51K in the Impound Fund due to a decrease in towing revenue in the FY 2019-20 approved budget.

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The City’s seventeen Special Revenue Funds combined see a 13.2% decrease in total expenses in the FY 2019-20 approved budget. Notable expense decreases are accounted for in five funds:

• $218K in the Economic Development Fund as the $300K bridge loan (expense side) completed in FY 2018-19;

• $139K in the Grants Fund as there is only one street project recorded in the FY 2019-20 approved budget;

• $160K in the two Forfeiture Funds as we recognized grant expenses and the purchase of one patrol vehicle in FY 2018-19 but not in the FY 2019-20 approved budget; and,

• $132K in the Impound Fund due to decreased towing expenses and the annual transfer out to the General Fund in the FY 2019-20 approved budget.

Proprietary Funds Combined Proprietary Funds revenue increases 0.8% in the FY 2019-20 approved budget due to higher estimated final revenues in FY 2018-19. Total expenses increased 5.4% as we increased the sewer maintenance expense line in the FY 2019-20 approved budget.

More detailed accounting of fund changes shows in this document under each fund’s particular section.

Services There are no changes to City service levels with the FY 2019-20 approved budget. City services are the core functions that citizens expect from their city such as public safety, municipal court, street maintenance, parks, health services, and animal control.

Cost for personnel services in the FY 2019-20 approved budget are $4,251,485 and include scheduled merit increases and a 1.4% Cost of Living Adjustment (COLA) for all personnel.

The City switched healthcare providers for FY 2019-20 providing lower deductibles and expanded plan options to employees. The switch also lowered City healthcare cost by 0.8% over FY 2018-19 estimated final expenses.

The adopted budget reclassified the Community Relations Coordinator and the Finance and Administration Clerk positions from hourly to salaried. Additionally, new certification incentives for Fire and Communications personnel were approved. Other salary adjustments for certain positions may be considered after the Collective Bargaining Agreement is negotiated with the Balcones Heights Police Officers Association.

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Capital Improvement Plan In the FY 2018-19 budget, council voted to discontinue the COLA for retirees in the Texas Municipal Retirement System (TMRS). This eliminated an unfunded retirement liability of $2.3M and lowered the City’s annual TMRS contribution costs going forward.

Cost savings from discontinuing the retiree COLA were used to help fund a $300,000 transfer into the Capital Fund in FY 2018-19. The transfer is increased to $400,000 in the FY 2019-20 approved budget. This recurring transfer will help fund equipment and infrastructure needs in accordance with the Capital Improvement Plan (CIP).

The CIP is included within this budget document. It is a multi-year plan that details how the City could possibly use the recurring transfer into the Capital Fund to finance major equipment purchases, park improvements, and minor facility renovations.


Streets Initial costs for the Vivian Lane street reconstruction project is $704,000 and it is scheduled to begin in 2020. Bexar County approved a $300,000 contribution towards the project in the form of a Community Development Block Grant (CDBG). The City’s match of $400,000 is funded in the FY 2019-20 adopted budget.

The approved budget records the revenue and expenses for the Vivian Lane street reconstruction project in the Capital Fund. The $300,000 CDBG contribution is recorded in the Grants Fund.

Revenue for the City’s portion of the Vivian Lane reconstruction project can come from issuing debt in the form of a tax note. Repayment on the tax note would reflect in the Debt Service Fund in the FY 2020-21 budget.

Staff continues to work with the VIA Metropolitan District to lock down costs for new bus pads in support of the Hillcrest Drive project. Initial estimate for pavement rehabilitation is $500,000.

Some costs for the Hillcrest Drive project, such as preliminary engineering fees, could be incurred in the Capital Fund in FY 2019-20, however revenues and expenses for this project will reflect in next fiscal year’s budget.

The FY 2019-20 approved budget also reflects the recurring transfer of $120,000 from the General Fund into the Streets Fund which pays for ongoing maintenance and repairs of streets, drainage, curbs, sidewalks, signs, and pavement markings.

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Tax Rate The FY 2019-20 approved budget maintains the same tax rate as last year which is $0.583/$100 of property valuation. Based on the $296M property valuation from the County, we record $1,716,666 of total property tax collections for the 2019 tax year, which is 3.2% ($54,143) increase over 2018 tax year collections.

Of the total 2019 tax year collections, $1,659,719 is the Maintenance and Operations (M&O) portion which goes to the General Fund to sustain operations, provide essential City services, make capital purchases, and finance street repairs and reconstructions.

The remaining $68,666 is the Interest and Sinking (I&S) portion which goes to the Debt Service Fund to pay down the City’s long-term debt.

Debt The City’s debt limit is 10% of its assessed property tax value. For the 2019 tax year, that amount is $29,664,623. The City’s current percentage of debt to assessed value is 0.004%.

The City’s outstanding debt is $137,564 for repayment on a general obligation bond for the 2006 fire ladder truck purchase. The final payment on the bond is scheduled for FY 2020-21.

The FY 2019-20 approved budget reflects the annual principle and interest payment of $68,666. The debt is paid in the Debt Service Fund using the I&S portion of property tax collections.

The City can purchase tax notes in FY 2019-20 to finance the Vivian Lane street reconstruction project. Purchase would be made at a time to ensure that the repayment on the note would reflect in the FY 2020-21 budget. A five-year repayment on $404,000 of debt, based on current interest rates, would be approximately $86,492 per year.

Next, we showcase the City’s two largest revenue sources—Sales and Property Taxes.

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State of Texas6.25%

General Fund1.0%

BHCCD0.5%

VIA0.5%

Retail58%

Food17% General

Services12%

Professional Services

11%Other 2%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20

2.14 2.23 2.18 2.15 2.292.47 2.56

Mill

ions

GF BHCCD

SALES TAXES

Budgeted Increase: 4% Total City Portion: $2,558,000 City Sales Tax Rate: 8.25%

Aggregate historical City tax data and economic forecasting are used to project future sales tax revenues.

A conservative approach is taken with estimating sales taxes due to their volatile nature; they are highly dependent on economic conditions.

SALES TAX COMPOSITION

The state of Texas imposes a 6.25% state sales tax on commodities and services that are purchased within the City at the point of sale.

City’s may also impose up to 2% for a maximum combined sales tax rate of 8.25%.

76% of the sales taxes collected in the City goes to the State; 18% goes to the City; and 6% goes to VIA.

SALES TAX CONCENTRATION

Businesses anchored to or residing in the Wonderland of Americas Mall generated 64% of City sales tax collections last year.

Retail is the largest industry sector and accounts for 58% of City sales tax collections.

75% of taxes collected come from the Retail and Food sectors which are the most volatile.

Historic Collections

Sales Tax Distributions

Sales Taxes by Sector

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Background Sales tax revenues are generated when goods are sold in the City. The State of Texas is the collecting agency for these taxes and remits the amount due to the City. The current sales tax rate in Balcones Heights is 8.25%, which is comprised of 6.25% for the State, 1% for the City, 0.5% for the Balcones Heights Crime Control District; and 0.5% for the San Antonio Metropolitan Transit Authority (VIA).

With nearly 200 businesses within its borders, the City’s largest source of revenue to all funds comes from sales tax collections. Sales taxes are unpredictable as they fluctuate with the economy, making it difficult to estimate the exact amount of revenue the City will receive.

The City estimates $2,558,000 in sales tax collections in FY 2019-20—a conservative 4% increase over FY 2018-19 estimated final collections. Two-thirds of the City’s portion of sales taxes goes to the General Fund to maintain operations; one-third goes into the Balcones Heights Crime Control and Prevention District (BHCCD) Fund for crime prevention efforts.

For more information on Sales and Use Tax including the monthly amount distributed to the City, see https://window.state.tx.us/taxinfo/sales/index.html.

Concentration The largest concentration of businesses in the City is anchored to or reside in the Wonderland of Americas Mall. The mall and its businesses generated 64% of total sales tax collections last fiscal year.

The Methodist Texsan Hospital continues to expand affording the City an opportunity to develop an alternative concentration of businesses in that area.

Industry Sectors 75% of taxes collected comes from the Retail and Food sectors which are highly susceptible to economic changes.

Retail is by far the largest industry sector in the City and it accounts for 58% of the sales taxes collected. The collections from other sectors include Food (17%), General Services (12%), Professional Services (11%), and Other sectors (2%).

VIA VIA uses its portion of the revenue it receives from the state to enhance local public transportation services and for improving streets, highways, and related transportation infrastructure. For more information concerning VIA, see https://www.viainfo.net/.

https://window.state.tx.us/taxinfo/sales/index.html

https://www.viainfo.net/

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0.46

0.48

0.50

0.52

0.54

0.56

0.58

0.60

FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20

0.57219 0.57219

0.5393 0.551

0.583 0.583 0.583

M&O I&S

Businesses$1.26M

Apartments$287K

Homeowners$170K

Schools$4.72M

City$1.76M

PROPERTY TAXES

2019 Taxable Value: $296,646,232 Budget Collections: $1,728,386 Residential Exemptions: $10,130,909 Tax Freeze Savings: $7,176,150 2019 Average Home Value: $120,975

Council approved the Current Tax Rate for tax year 2019 which is $0.583 per $100 of property valuation.

Multiplying the taxable value of $296M by the adopted tax rate generates $1.73M of revenue for the City.

WHO PAYS THE TAXES?

Businesses and apartments picked up 90% of the total tax bill in 2018 while homeowners paid 10%.

The City provided over $8M in tax relief to homeowners through various exemptions in tax year 2018.

The owner of an “average home” will see an approximate increase of $66 to their 2019 tax bill for the City’s portion of total taxes.

WHO GETS THE TAXES?

Six taxing districts received nearly 80% of taxes levied in tax year 2018. The City’s portion was only about 20%.

The largest portion of property taxes collected (53%) went to the City’s school districts.

City school districts include SAISD and NEISD.

Historic Tax Rates

2018 Tax Collections

Estimate 2018 City collections are $1.67M

2018 Tax Distributions

Total Taxes Distributed were $8.73M

Bexar County Hospital ACC SARA Flood District

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The total taxable value for the City for the 2019 tax year is $296,464,232. Council approved a property tax rate of $0.583 per $100 of valuation for tax year 2019 in its FY 2019-20 approved budget, which is the same rate adopted last year.

Multiplying the total taxable value by the approved tax rate of $0.5830 per $100 of valuation generates $1,728,386 of City revenue for tax year 2019. This is a 3.2% ($54,143) increase over 2018 tax year collections.

Tax Rates In late-July each year, the County Appraisal District appraises the value of properties in the county and releases the values to the cities and other taxing districts for verification.

Once the property values have been appraised, the Tax Assessor-Collector’s Office certifies the values to establish an effective tax rate and a rollback tax rate. The City uses these numbers as a guide to help determine an acceptable tax rate for the upcoming year.

The effective tax rate enables the public to evaluate the relationship between taxes for the preceding year and for the current year. It is the tax rate that would produce about the same amount of taxes if applied to the same properties taxed in both years.

The rollback tax rate is set in order to allow citizens to limit the governing body’s ability to significantly increase the tax rate. Presently, the rollback rate is 8% over the previous year’s M&O rate. However, recent legislation lowers the rollback rate to 3.5% in the 2020 tax year.

Tax Rate Components The tax rate is comprised of two components: Maintenance and Operations (M&O) and Interest and Sinking (I&S). The two added together make up the overall City tax rate.

The City estimates $1,659,720 for the M&O portion in its FY 2019-20 approved budget and $68,666 for the I&S portion, which equals the total collections of $1,728,386.

The M&O portion goes to the General Fund allowing the City to sustain operations, provide essential City services, fund capital purchases, and finance street repairs and reconstructions. The I&S portion pays down long-term City debt such as bonds and is accounted for in the City’s Debt Service Fund.

The two tax components are indirectly proportional to each other; if one goes up, the other must go down—assuming you wish to keep the same overall tax rate.

For instance, if the City incurs more debt, the I&S rate would increase to bring in more dollars into the Debt Service Fund to repay the loan. The M&O rate would decrease bringing in less dollars to the General Fund. Overall, total collections would remain the same.

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Collections An abundance of apartments and businesses along with a mature housing stock in the residential areas mean that businesses and apartment owners pay the majority of the taxes. Of the $1.67M in property taxes the City expects to collect in tax year 2018, businesses and apartments pick up approximately 90% of the tax bill.

Business owners pay $1.26M of the levy, apartment owners pay $287K, and homeowners pay $170K—which is about 10% of the total collections. Historic tax collections show below:

Tax Year

Paid Accounts

Taxable Value

Tax Rate

Tax Levy

Collections

2007 755 208,704,886 0.498356 1,040,807 1,036,119 2008 736 223,308,806 0.490729 1,096,650 1,093,231 2009 717 220,898,895 0.510481 1,128,064 1,112,179 2010 707 206,553,899 0.558843 1,154,886 1,150,015 2011 754 205,581,203 0.572199 1,177,004 1,168,540 2012 742 210,591,466 0.572199 1,205,669 1,195,311 2013 750 208,935,074 0.572199 1,196,649 1,188,604 2014 746 215,673,292 0.572199 1,234,756 1,228,574 2015 765 246,832,731 0.539300 1,331,847 1,323,255 2016 769 261,009,113 0.551000 1,439,206 1,431,703 2017 740 274,396,335 0.583000 1,601,032 1,603,149

Source: 2018 Bexar County Tax Assessor-Collector TC168 Report

Distributions The largest portion of all City taxes collected in the 2018 tax year (53%) goes to school districts; the City’s portion of the collections is only 20%. The remaining amount is distributed to six other tax districts. The breakout of 2018 tax distributions show below:

Taxing Jurisdiction

Tax Rate

% of Taxes

Total Taxes

San Antonio River Authority .018580 .6 56,112 Bexar County Road & Flood .023668 .8 71,477 Alamo Community College .149150 5.2 450,433 University Health System .276235 9.5 834,230 Bexar County .277429 9.6 837,836 City of Balcones Heights .583000 20.2 1,760,660 SA Independent School District 1.56260 54.1 4,719,052

Totals $2.890662 100% $8,729,800 Source: Tax Assessor-Collector

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Exemptions Council voted in 2018 to implement a tax freeze for residents that are disabled and over 65 years of age. The freeze takes effect in the 2019 tax year. Savings for this exemption is $7,176,150. 2019 tax year residential exemptions total $10.1M and show below:

Exemption

Count

Dollar Amount

Over 65 81 4,947,720 Homestead 149 2,907,315 Disabled Person 25 1,396,920 EX-XV 41 491,680 LVE 6 381,590 House Bill 366 26 5,684

Total Dollar 10,130,909 Source: Bexar Appraisal District; 2019 Certified Totals Report City Tax Rate Balcones Heights is unique in that it is home to over 3,000 residents, has a large business corridor, the Wonderland of Americas Mall, residential neighborhoods, thirteen multi-family complexes, three hotels, two churches, a hospital, and more—within an area of less than one square mile!

Although the City’s tax rate is one of the highest in the county at $0.583/$100 of property valuation, it allows us to provide a full suite of public safety services to our residents, visitors and businessess such as fully staffed police and fire departments along with a dispatch center, all operating around-the-clock. These are services that many smaller cities do not offer.

2018 tax rates for municipalities in Bexar County show on the next page.

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0.7293760.683852

0.5830000.5617520.558270

0.5458770.514600

0.5100810.501345

0.4850000.4400000.437087

0.4243630.396690

0.3864390.366780

0.3500000.347673

0.3274690.287742

0.2383670.201600

0.1450000.120000

0.088441

KirbySomerset

Balcones HeightsUniversal City

San AntonioLeon Valley

SchertzHollywood Park

Castle HillsConverse

ElmendorfLive Oak

Olmos ParkSt. Hedwig

Alamo HeightsFair Oaks Ranch

HelotesTerrell HillsWindcrest

Shavano ParkSandy Oaks

SelmaHill Country…China GroveGrey Forest

PROPERTY TAX RATES

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Fund

Beginning Balance

Estimated Revenues

Estimated Expenses

Ending Balance

General 1,603,781 4,805,560 4,805,560 1,603,781 Capital 741,223 804,000 490,000 1,055,223

Federal Forfeitures 30,984 1,250 — 32,234 State Forfeitures 6,069 1,250 — 7,319

Streets 232,220 120,000 120,000 232,220 Traffic Safety 170,467 841,225 841,225 170,467

BHCCD 350,190 853,000 853,000 350,190 Seized Assets 124,535 200 200 124,535

HOT 465,683 296,000 296,000 465,683 Child Safety 29,954 3,750 3,750 29,954

Impound 37,924 127,100 127,100 37,924 Auction 22,488 51,400 51,400 22,488

Court Security 83,765 24,300 24,300 83,765 Grants — 300,000 300,000 —

Parks (104) 1,450 1,450 (104) Economic

Development

460,985

105,500

105,500

460,985 PEG 48,918 6,500 — 55,418

Debt Service 64,756 68,666 68,666 64,756 Sewer 371,251 812,250 812,250 371,251

Storm Water 98,216 96,900 4,500 190,616 Totals 4,943,305 9,320,301 8,904,901 5,358,705

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General Fund

Capital Fund

Debt Service

BHCCD Fund

Other Funds

Proprietary Funds

Total Budget

Beginning Fund Balance 1,603,781 741,223 64,756 350,190 1,713,888 469,467 4,943,305 Revenue

Sales Taxes 1,735,000 — — 853,000 — — 2,588,000 Property Taxes 1,660,000 — 68,666 — — — 1,728,666 Fines & Forfeitures 653,000 — — — 773,475 — 1,426,475 Franchise Taxes 305,700 — — — 112,000 — 417,700 Licenses, Permits & Fees 165,050 — — — 226,550 — 391,600 Beverage Tax 34,000 — — — — — 34,000 Charges for Services — — — — — 905,400 905,400 Intergovernmental — — — — 300,000 — 300,000 Occupancy Taxes — — — — 290,000 — 290,000 Interest Income 47,500 — — — 8,350 3,750 59,600 Other Revenues 65,310 404,000 — — 49,550 — 518,860

Total Revenue 4,665,560 404,000 68,666 853,000 1,759,925 909,150 8,660,301 Expenditures

Personnel Costs 3,162,631 — — 724,328 364,526 — 4,251,485 Maintenance & Repairs 85,850 — — 50,000 107,700 50,000 293,550 Contractual 212,547 — — — 502,350 — 714,897 Services 487,420 — — 78,200 202,100 675,700 1,443,420 Operational 183,400 — — — 140,253 2,600 326,253 Debt Service — — 68,666 — — — 68,666 Capital Outlay — 490,000 — — 300,000 — 790,000 Contingency 153,712 — — 472 113,996 88,450 356,630

Total Expenditures 4,285,560 490,000 68,666 853,000 1,730,925 816,750 8,244,901 Other Sources

Transfers In 140,000 400,000 — — 120,000 — 660,000 Transfers Out (520,000) — — — (140,000) — (660,000)

Total Other Sources (380,000) 400,000 — — (20,000) — —

Net Fund Change — 314,000 — — 9,000 92,400 415,400

Ending Fund Balance 1,603,781 1,055,223 64,756 350,190 1,722,888 561,867 5,358,705

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General Fund

FY 2017-18 Actual



Revenues 4,655,599 4,689,145 4,805,560 Expenses 4,214,773 4,596,422 4,805,560 Revenues/Expenses 440,826 92,724 —


Revenue Categories

FY 2017-18 Actual



Property Taxes 1,504,382 1,600,000 1,660,000 Sales Taxes 1,531,856 1,667,000 1,735,000

Beverage Taxes 32,222 33,000 34,000 Franchise Taxes 304,125 305,144 305,700 Permits & Fees 326,390 168,510 165,050

Fines & Forfeitures 632,773 646,000 653,000 Other Revenues 153,851 99,491 112,810

Transfers In 170,000 170,000 140,000 Total GF Revenues 4,655,599 4,689,145 4,805,560

General Fund revenues total $4,805,560 for the FY 2019-20 approved budget, which is a 2.5% increase over FY 2018-19 estimated final collections. The increase is attributed largely to increases in sales and property tax collections in the approved budget.

Sales Taxes Economic indicators for FY 2019-20 call for continued strength, but with slowing possible towards the last half of the year. The FY 2019-20 approved budget shows a conservative 4% increase over our FY 2018-19 estimated final sales taxes collections.

Property Taxes The Appraisal District appraised the value of City properties at $296.6M for tax year 2019. At the adopted tax rate of $0.583/$100 of valuation, the City records $1.73M of total tax collections. $1.66M is the M&O portion that is recorded to the General Fund in the FY 2019-20 approved budget. This is a 3.6% increase over FY 2018-19 estimated final collections in the General Fund.

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Franchise Taxes Franchise taxes come from utility providers, telephone and cable providers, billboards, and garbage collections.

Taxes from utility providers and garbage collections are slightly higher over the FY 2018-19 estimated final amount.

Senate Bill 1152 reduces the fees that telephone and cable providers pay to use City right-of-ways. Companies that pay both cable and telephone fees no longer have to pay the lesser of the two fees.

In light of SB 1152, Telephone revenue is lowered but we record about the same amount for overall Franchise Taxes in our FY 2019-20 approved budget over FY 2018-19 final estimates.

Permits & Fees Permit and Fee collections depend largely on commercial renovations and new constructions in the City. With the completion of the Chick-fil-A restaurant and large renovation projects at the Methodist Hospital, collections were $326,390 in FY 2017-18.

FY 2018-19 budgeted expenses were reduced to $156,200 and actual collections are estimated to be $168,510 for FY 2018-19. We budget nearly the same amount for the FY 2019-20 approved budget due to continued renovations at Methodist and movement on the new townhomes project slated for 2020.

House Bill 852 prevents the City from using project value or cost of construction to calculate building permit and inspection fees for residential structures. Staff recalculated the fee based on square footage. As such, there is no impact to these revenues in the City’s budget.

Fines & Forfeitures The City contracted with a Warrant Officer in 2016 to help reduce the number of outstanding warrant payments. Collections continue to be stable and we project a slight increase in our approved budget.

Other Revenues Bank interest earnings from certain Special Revenue Funds, where primary revenues come from the General Fund, were moved into the General Fund in the approve budget. As such, other revenues increase 13% in our FY 2019-20 approved budget.

Transfers Transfers in to the General Fund are $140,000 and come from the Impound and Auction Funds. This is down $30,000 from FY 2018-19 and is attributed to declining fund balance in the Impound Fund.

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Revenue Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated

2019-20 Approved $ Change

Taxes10-310-110 AD VALOREM TAX 1,504,382 1,600,000 1,600,000 1,660,000 60,000 10-318-300 SALES TAX 1,531,856 1,560,000 1,667,000 1,735,000 68,000 10-334-100 STATE MIXED DRINK TAX 32,222 29,000 33,000 34,000 1,000

Total Taxes 3,068,460 3,189,000 3,300,000 3,429,000 129,000

Franchise Taxes 10-318-410 CPS FRANCHISE 192,277 188,750 194,000 196,000 2,000 10-318-430 TELEPHONE FRANCHISE 20,036 21,000 20,000 17,600 (2,400) 10-318-440 SAWS FRANCHISE 8,044 7,300 7,044 7,000 (44) 10-318-460 CABLE FRANCHISE 32,214 32,000 32,000 32,000 - 10-318-465 CELLULAR NETWORK NODES - 100 100 100 - 10-318-470 BILLBOARDS 21,000 21,000 21,000 21,000 - 10-318-480 GARBAGE FRANCHISE 30,553 31,000 31,000 32,000 1,000

Total Franchise Taxes 304,125 301,150 305,144 305,700 556

Permits & Fees10-320-200 FOOD ESTABLISHMENT LICENSE 19,990 18,000 19,000 20,000 1,000 10-320-300 COIN OPERATED MACHINE 3,675 3,300 3,360 3,400 40 10-321-100 OCCUPANCY PERMIT 5,550 4,000 5,000 5,000 - 10-321-110 BUILDING PERMIT 115,598 65,000 60,000 60,000 - 10-321-120 ELECTRICAL PERMIT 43,519 10,000 17,000 10,000 (7,000) 10-321-130 PLUMBING PERMIT 40,200 10,000 10,000 10,000 - 10-321-140 A/C & HEATING PERMIT 43,276 10,000 10,000 10,000 - 10-321-150 LANDSCAPING PERMIT 181 100 1,400 500 (900) 10-321-160 YARD SALE PERMIT 200 250 250 250 - 10-321-170 PEDDLERS PERMIT - 100 - 100 100 10-321-180 LIQUOR LICENSE FEES 1,935 1,500 1,500 1,600 100 10-321-190 NOTARY FEES 29 100 10 100 90 10-321-200 OPEN RECORDS REQUEST 143 500 5 100 95 10-321-210 SHOPPING CART RECOVERY FEES 2,325 2,000 2,000 2,000 - 10-321-290 MASSAGE THERAPY LICENSE - 100 310 300 (10) 10-321-300 ANIMAL LICENSE 70 250 175 200 25 10-321-350 CONTRACTOR'S LICENSE 10,406 7,000 7,000 7,500 500 10-321-360 HOME OCCUPATION REGS 3,708 500 500 500 - 10-321-400 ALARM PERMITS 4,695 6,000 6,000 6,000 - 10-321-500 SWIMMING POOL PERMIT 300 500 500 500 - 10-340-300 ZONING & SUBDIVISION FEES 1,075 2,000 2,500 2,000 (500) 10-340-400 PLAN CHECKING FEES 29,517 15,000 22,000 25,000 3,000

Total Permits, Licenses & Fees 326,390 156,200 168,510 165,050 (3,460)


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2017-18 Actual

2018-19 Budget

2018-19 Estimated


Taxes10-310-110 AD VALOREM TAX 1,504,382 1,600,000 1,600,000 1,660,000 60,000 10-318-300 SALES TAX 1,531,856 1,560,000 1,667,000 1,735,000 68,000 10-334-100 STATE MIXED DRINK TAX 32,222 29,000 33,000 34,000 1,000

Total Taxes 3,068,460 3,189,000 3,300,000 3,429,000 129,000

Franchise Taxes 10-318-410 CPS FRANCHISE 192,277 188,750 194,000 196,000 2,000 10-318-430 TELEPHONE FRANCHISE 20,036 21,000 20,000 17,600 (2,400) 10-318-440 SAWS FRANCHISE 8,044 7,300 7,044 7,000 (44) 10-318-460 CABLE FRANCHISE 32,214 32,000 32,000 32,000 - 10-318-465 CELLULAR NETWORK NODES - 100 100 100 - 10-318-470 BILLBOARDS 21,000 21,000 21,000 21,000 - 10-318-480 GARBAGE FRANCHISE 30,553 31,000 31,000 32,000 1,000

Total Franchise Taxes 304,125 301,150 305,144 305,700 556

Fines & Forfeitures10-334-200 STATE COURT COSTS 17,889 20,000 18,000 19,000 1,000 10-340-100 COURT FEES & CHARGES 59,912 65,000 58,000 59,000 1,000 10-350-100 COURT FINES 466,580 500,000 470,000 475,000 5,000 10-350-150 WARRANT FEES 88,392 100,000 100,000 100,000 -

Total Fines & Forfeitures 632,773 685,000 646,000 653,000 7,000

Other Revenues 10-334-300 STATE LEOSE TRAINING FUNDS 2,076 2,100 1,881 2,000 119 10-340-600 RETURN CHECK FEE 155 250 250 250 - 10-342-100 SPECIAL POLICE SERVICES 1,118 1,000 1,000 1,000 - 10-342-200 FIRE DEPT SERVICES 1,250 100 100 100 - 10-344-500 WEED CLEANING & REMOVAL 269 500 500 500 - 10-345-600 WONDERLAND OFFICE RENT 40,260 40,260 40,260 40,260 - 10-345-700 GENTLEMAN LOT3C SALE 48,457 - - - - 10-349-000 OTHER CHARGES 100 500 500 100 (400) 10-360-000 INTEREST EARNINGS 29,543 25,000 33,000 47,500 14,500 10-364-000 SALE OF ASSETS 11,500 5,000 5,000 5,000 - 10-370-000 OTHER REVENUES 19,093 12,000 17,000 16,000 (1,000) 10-375-100 OVER/SHORT ACCOUNT 31 500 - 100 100

Total Other Revenues 153,851 87,210 99,491 112,810 13,319

Transfers In10-370-022 TRANSFER FROM IMPOUND FUND 120,000 120,000 120,000 90,000 (30,000) 10-370-023 TRANSFER FROM AUCTION FUND 50,000 50,000 50,000 50,000 -

Total Transfers In 170,000 170,000 170,000 140,000 (30,000)

General Fund Total Revenue 4,655,599 4,588,560 4,689,145 4,805,560 116,415


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GENERAL FUND EXPENSES

By Department

FY 2017-18 Actual



City Council 5,236 8,258 7,100 Administration 447,366 447,217 456,641

Information Technology 187,399 242,937 242,800 Municipal Court 336,577 330,395 348,803

Police Department 911,386 817,625 740,866 Communications 309,483 311,437 309,483 Fire Department 1,279,195 1,309,476 1,323,856

Community Development 188,869 189,636 206,839 Public Works 109,728 113,087 115,075

Animal Control 2,141 2,639 3,450 Health Services 12,000 12,000 12,000

Economic Development & Public Affairs

119,179

115,791

119,585

Non-departmental 306,214 695,923 919,062 Total GF Expenses 4,214,773 4,596,422 4,805,560

The cost for City services makes up over 70% of General Fund expenses in the FY 2019-20 approved budget. Public safety services alone—Police, Fire, and Communications—are nearly 50% of the fund’s expenses. Other City services are 17%; Non-departmental expenses are 19%; Administration is less than 10%; and IT is 5%.

Expense Highlights Approved General Fund expenses reflect a 4.6% increase over FY 2018-19 estimated final expenses. This change comes from increasing the transfer out to the Capital Fund and increasing the contingency amount in the FY 2019-20 approved budget.

Estimated final expenses for FY 2018-19 are 9.1% higher than FY 2017-18 actual expenses as the City initiated a $300,000 transfer out to the Capital Fund, and increased the transfer to the Streets Fund to $120,000 in FY 2018-19. These transfers reflect in the Non-departmental accounts.

Departments A breakout of the General Fund departments continues on the following pages. Each major department includes a description, personnel complement if applicable, accomplishments and goals, and its itemized budget.

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The Council is the City’s governing body. The City of Balcones Heights is a General Law city with a Council-Administrator form of government.

The primary duty of Council is policy making which includes identifying needs of the residents, formulating programs to meet the changing requirements of the community, and measuring the effectiveness of ongoing City services. Council is also responsible for establishing and advancing the City’s strategic vision and goals.

Budget Overview

Expenditures

FY 2017-18 Actual



Personnel Costs — — — Operational Costs 5,236 8,258 7,100

Total Budget 5,236 8,258 7,100

FY 2018-19 estimated final expenses for the department are 58% higher than FY 2017-18 actual, and we record a 14% decrease of those expenses in the FY 2019-20 approved budget.

Travel costs drove up expenses in FY 2018-19 as the Mayor and Council stepped up trips to the State Capitol to advocate for City interests against various legislative proposals, as well as attendance at Texas Municipal League (TML) conferences and training sessions.

For the FY 2019-20 approved budget, travel costs decrease as the TML conference will be held in the local area in 2019. Additionally, Workers Compensation costs were removed and added to personnel costs in the Administration department.

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


10-405-240 WORKERS COMPENSATION 142 158 158 - (158) 10-405-312 COUNCIL EVENTS - - - 500 500 10-405-325 OPERATING SUPPLIES 533 500 500 500 - 10-405-490 TRAINING 1,268 500 500 500 - 10-405-492 TRAVEL 708 500 5,000 3,500 (1,500) 10-405-494 MEMBERSHIP DUES 1,547 1,500 1,600 1,600 - 10-405-498 OTHER EXPENSE 1,039 1,000 500 500 -

Total Council 5,236 4,158 8,258 7,100 (1,158)

COUNCIL

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Administration provides overall direction and management of the City’s daily operations. The Administration department consists of the functions and activities of the City Administrator, City Secretary, and Finance.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 City Administrator 1 1 1 City Secretary 1 1 1 Finance Director 1 1 1 Finance/Admin. Asst. 1 1 1 Total Authorized 4 4 4

Budget Overview

Expenditures

FY 2017-18 Actual



Personnel Costs 419,161 412,897 424,241 Operational Costs 28,204 34,320 32,400

Total Budget 447,365 447,217 456,641

Estimated final expenses for FY 2018-19 are slightly lower than FY 2017-18 actual expenses. In FY 2018-19, we moved a percentage of payroll costs for the Finance/Administrative Clerk over to the Traffic Safety Fund to reflect assistance provided to the red-light camera program.

We project a 2.1% increase in department expenses in the FY 2019-20 approved budget over FY 2018-19 estimated final numbers; operational savings were offset by higher personnel costs.

Personnel costs increase 2.8% due to reclassification of the Finance and Administrative Clerk position from non-exempt to exempt, schedule merit increases, and the COLA increase.

On the following pages, we breakout the Administration functions in greater detail. We include job descriptions along with accomplishments and goals for administrative functions. An itemized budget for Administration follows after that.

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The City Administrator is the primary point of contact between the City’s departments and the City Council. The position’s function is to lead, guide, and provide coordination to the departments as they implement City policies, and to advise the City Council on policy decisions. The administrator communicates the City’s strategic vision and goals to all employees, and provides leadership in the implementation of the City’s programs and services.

Accomplishments

• Partnered with City leaders and the Texas Municipal League (TML) making numerous trips to the Capitol to vigorously defend and advocate for City interests.

• Methodist Texsan Hospital is undertaking a major renovation of its Emergency Room operations and has begun parking expansion in anticipation of future facility upgrades.

• Wonder Plaza underwent a $300,000 renovation to give it a clean and contemporary look. Improvements included a new façade, and new individual channel signs for each of the center’s stores. The new signage was made possible by a $22,482 development grant from the City’s Economic Development Fund.

• Santikos Bijou Cinema Bistro undertook a $250,000 renovation in 2019 for new seating, online reservations, a new HVAC system, and an expanded kitchen.

• The City and VIA Metropolitan Transit Authority continue discussions regarding options for transit-oriented development within the city—leveraging the existing Park and Ride and BRT Primo services.

• Completion of Leisure Drive & Glenarm Drive Phase 1 street reconstruction projects. • Partnered with Bexar County to acquire a Community Development Block Grants to

defray costs for Glenarm Drive Phase 2 and Vivian Lane street reconstructions. • Engaged VIA Metropolitan Transit to acquire financing for new bus pads in conjunction

with the Hillcrest Drive street project. • Oversaw development of a ten-year Capital Improvement Program (CIP). • Established a Geographic Information System (GIS) to capture, manage, and analyze City

infrastructure data—allowing web access to zoning map. • Spearheaded numerous renovations to City facilities: a $500,000 air conditioning

replacement project at the Justice Center; and a $20,000 Fire Station renovation. • Implemented IT security training to reduce the threat of malware, viruses, and spam. • Continuing education to maintain professional certifications: Texas City Management

Association (TCMA)—served as immediate past board president; and Texas Municipal League Intergovernmental Risk Pool (TML-IRP)—elected to the board.

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Goals

• Explore long-term funding solutions to sustain reconstruction of City streets. • Initiate an Apartment Inspection Program. • Update the City’s ten-year old Master Plan. • Development and construction of a six-unit town homes project on Gentleman Road. • Enhance the economic development pages of the City’s website to reflect ongoing

construction and renovations, highlight incentive possibilities, and advertise available properties and retail spaces using pictures and video.

• Leverage the City’s membership in the West San Antonio Chamber of Commerce into opportunities for local businesses.

• Manage the Branding Component of the City Council’s Strategic Plan. • Completion of street projects—Vivian Lane and Hillcrest Drive. • Implement a Special Traffic Enforcement Program (STEP) traffic unit. • Upgrade and/or replace all computer systems running on Windows 7 platform. • Complete Phase 2 of the City’s website redesign. • Continue professional development.

Expenses for the City Administrator are included in the Administration budget detail.

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The City Secretary position is a statutory position required by state law and the City charter. The position is responsible for a broad range of administrative and clerical duties including recording and maintaining the minutes of the proceedings of all City Council meetings. The position also directs the Records Management Program for the City and maintains ordinances, resolutions, and all other official records of the City. All municipal elections are conducted through this office. The City Secretary also attends all council meetings, staff meetings, various other committee meetings, and supervises the Municipal Court.

Accomplishments

• Professional development through Texas Municipal League (TML), Texas Municipal Retirement System (TMRS), and Texas Municipal Clerks Certification Program (TMCCP).

• Maintained Records Management Program as required by Texas Library Destruction Schedules.

• Updated Code of Ordinances Book Supplement. • Flawless management and completion of the May 4, 2019 Election. • Efficiently prepared and processed all meetings for City Council, Board of Adjustments,

and Planning and Zoning. o Processed all Ordinances, Resolutions, and other Council actions o Transcribed minutes of all meetings o Published legal notices

• Distributed permit notices to businesses and residents.

Goals

• Give Court administrators the tools and assistance needed to make Municipal Court as efficient as possible.

• Efficiently manage food, alarm, liquor, pool, coin operated, yard, peddlers, and animal permits for businesses and residents.

• Process all Open Records Requests in the allotted time. • Create calendar and timelines to facilitate department efficiency. • Records Management—Shred It Bins for proper disposal of records. • Maintain outstanding communications with Mayor, Council, and Board members. • Continuing Professional Development—TML, TMRS, TMCCP. • Membership in the Alamo Chapter of Texas Municipal Clerks Association (TMCA).

Expenses for the City Secretary are included in the Administration budget detail.

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The Finance functions ensure City’s compliance with federal, state, and local laws and regulations, and adheres to Generally Accepted Accounting Principles and Governmental Accounting Standards. The department is responsible for all financial transactions, the preparation of reports, the development of the City’s annual operating budget, and the Capital Improvement Program. This department is also responsible for cash management, revenue collection, debt management, payment disbursements, coordinating all purchases, and the investment of City funds. The Finance department also ensures the timely and accurate payment of City employees and related Human Resource functions.

Accomplishments

• Received the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended September 30, 2017.

• Developed a ten-year Capital Improvement Program (CIP). • Incorporated an Affordable Care Act reporting compliance module in the payroll system. • Professional Development:

o Completed Institute of Governmental Finance program at Texas Tech University. o Attended Government Treasurers’ Organization of Texas (GTOT) Conference. o Attended monthly Finance Director’s meetings with Government Finance

Officers Association of Texas (GFOAT) Region 7. o Attended Texas Municipal League Conference. o Attended Texas Municipal Human Resources Association (TMHRA) Conference. o Completed Texas Municipal Court Education Center’s (TMCEC) Municipal Budget

Cycle Seminar.

Goals

• Receive the Government Finance Officers Association (GFOA) Distinguished Budget Presentation Award for the FY 2019-20 budget and each year going forward.

• Implement long-term funding sustainability for reconstruction of all City streets in accordance with the City’s strategic plan.

• Enroll Finance and Administration Clerk into the Texas Municipal Clerks Association (TMCA) City Secretary Certification Program.

Expenses for Finance are included in the Administration budget detail below.

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Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


10-410-150 SALARIES 310,515 317,572 317,572 337,183 19,611 10-410-160 OVERTIME 2,569 2,400 2,400 - (2,400) 10-410-205 SSI 23,221 24,478 24,478 25,794 1,316 10-410-210 MEDICAL 28,187 32,760 32,760 31,964 (796) 10-410-230 TMRS 53,625 34,501 34,501 27,961 (6,540) 10-410-240 WORKERS COMPENSATION 1,044 1,186 1,186 1,339 153

Personnel Expense 419,161 412,897 412,897 424,241 11,344

10-410-310 OFFICE SUPPLIES 2,074 2,500 3,495 3,500 5 10-410-312 MEETING COSTS 1,195 1,000 653 750 97 10-410-325 OPERATING SUPPLIES 1,092 1,000 1,420 1,500 80 10-410-450 POSTAGE 5,015 3,500 4,576 4,500 (76) 10-410-488 PRINTING 304 250 750 750 - 10-410-490 TRAINING 3,735 3,000 5,200 5,000 (200) 10-410-492 TRAVEL 8,385 5,000 11,214 10,000 (1,214) 10-410-494 MEMBERSHIP DUES 2,242 2,500 2,598 2,600 2 10-410-498 OTHER EXPENSE 4,163 2,500 3,914 3,800 (114) 10-410-580 CAPITAL OUTLAY-EQUIPMENT - 500 500 - (500)

Operating Expenses 28,204 21,750 34,320 32,400 (1,920)

Total Administration 447,365 434,647 447,217 456,641 9,424

ADMINISTRATION

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Information Technology (IT) provides the technology-based services that support the City’s functions by maintaining network connectivity to three City facilities, ensuring around-the-clock dispatch services, website access, phone support, and the timely replacement of computers, servers, and associated equipment and software.

The City’s IT functions are outsourced; there are no personnel assigned to this department.

Accomplishments

• Replaced outdated servers and software with a new cloud based virtual server. • Replaced power backups with a more robust system to protect data during outages. • Enhanced the “block list” to reduce the threat of malware, viruses and spam. • Implemented security training to reduce the threat of malware, viruses, and spam.

Goals

• Upgrade/Replace all systems running on Windows 7 platform to Windows 10. • Replace switching hardware to increase security and facilitate faster access. • Implement emergency backup hardware capabilities at an alternate City facility.

Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 187,399 242,937 242,800 FY 2018-19 estimated final expenses are 30% higher than FY 2017-18 actual numbers and we budget a slight decrease of those expenses in the FY 2019-20 approved budget.

Estimated final IT costs are higher in FY 2018-19 because of scheduled server replacements and associated software along with upgrading the City’s telephone system.

The City changed IT providers in FY 2018-19. The contract with the new provider includes many of the costs that were previously billed separately, thus the slight reduction of costs recorded to the FY 2019-20 approved budget.

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Budget Detail

INFORMATION TECHNOLOGY 2017-18

Actual 2018-19 Budget

2018-19 Estimated

2019-20 Proposed $ Change

10-415-345 HARDWARE & PERIPHERALS 10,570 30,000 32,000 40,000 8,000 10-415-346 SOFTWARE & LICENSES 16,678 15,000 14,212 15,000 788 10-415-408 IT SERVICES 66,189 57,000 79,700 80,000 300 10-415-422 CONTRACTED SERVICES 57,280 63,250 60,000 50,000 (10,000) 10-415-471 INTERNET & CABLE 3,185 15,500 - - - 10-415-472 TELEPHONES 16,885 16,250 31,500 32,000 31,500 10-415-473 CELL PHONES & TABLETS 10,635 8,400 18,725 19,000 275 10-415-474 PHONE REIMBURSEMENTS 5,400 6,720 6,300 6,300 - 10-415-498 OTHER EXPENSES 576 500 500 500 -

Operating Expenses 187,399 212,620 242,937 242,800 (137)

Total Information Technology 187,399 212,620 242,937 242,800 (137)

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The Municipal Court is responsible for the processing of misdemeanor charges and collection of fines in a prompt, accurate, and a customer service-oriented manner. The Court prepares warrants for unpaid fines and maintains an efficient docket of cases for adjudication. Court is typically held each Wednesday.

The City Secretary is responsible for oversight of the Court and its budget.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Court Administrator 1 1 1 Senior Deputy Court Clerk 1 1 1 Deputy Court Clerks 2 2 2 Total Authorized 4 4 4

Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 336,578 330,395 348,803

FY 2018-19 estimated final expenses are 1.8% lower than FY 2017-18 actual expenses and we budget a 4.3% increase of those expenses in the FY 2019-20 approved budget.

Personnel costs decreased in FY 2018-19 as we moved a percentage of payroll costs for Court personnel over to the Traffic Safety Fund to reflect assistance provided to the Red-light Camera program and turn over in the department.

Personnel costs increase 8.8% in our FY 2019-20 approved budget as the percentage of Court payroll charged to the Traffic Safety Fund to assist the red-light camera program is returned, and merit increases, and COLA are included.

The City also contracts with a Warrant Officer to ensure fines are paid in a timely manner. Expenses associated with the Warrant Officer Program are included in the Court budget. Revenues associated with the program are included as a line item in the General Fund under Fines & Forfeitures.

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Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


10-420-150 SALARIES 108,331 107,136 107,136 120,400 13,264 10-420-160 OVERTIME 8 1,000 1,000 1,000 - 10-420-205 SSI 7,372 8,272 8,272 9,287 1,015 10-420-210 MEDICAL 20,646 23,940 23,940 24,588 648 10-420-230 TMRS 18,556 11,660 11,660 10,067 (1,593) 10-420-240 WORKERS COMPENSATION 341 361 361 361 -


10-420-310 OFFICE SUPPLIES 926 1,000 1,221 1,250 29 10-420-418 LEGAL SERVICES - JUDICIAL 49,681 50,000 49,960 50,000 40 10-420-420 WARRANT OFFICER SERVICES 129,905 140,000 125,800 130,000 4,200 10-420-424 PROFESSIONAL SERVICES 33 250 100 100 - 10-420-488 PRINTING 433 500 500 500 - 10-420-490 TRAINING - 250 100 200 100 10-420-492 TRAVEL - 250 - 200 200 10-420-494 MEMBERSHIP DUES 345 250 345 350 5 10-420-498 OTHER EXPENSES - - - 500 500 10-420-580 CAPITAL OUTLAY EQUIPMENT - 500 - - -

Operating Expenses 181,323 193,000 178,026 183,100 5,074

Total Court 336,578 345,369 330,395 348,803 18,408

MUNICIPAL COURT

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The Police department protects and serves those who live, work in, and visit the City of Balcones Heights.

Police personnel are assigned to the General Fund, Balcones Heights Crime Control District (BHCCD) Fund, and the Traffic Safety Fund. The personnel complement below reflects only the positions in the General Fund. Additionally, the City moves police personnel among these funds each fiscal year as budget needs warrant.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Police Chief 1 1 1 Patrol Lieutenant 1 1 1 Patrol Sergeants 3 2 2 Patrol Corporals 3 2 2 Patrol Officers 2 2 1 Part-time Officer 1 1 1 Total Authorized 11 9 8

Accomplishments

• Saved taxpayer dollars by acquiring numerous grants: o $150,000 for security fencing around the Justice Center o $65,000 for Body Worn Cameras for each police officer o $50,000 for Mobile Data Terminals (Toughbooks) o $10,000 for 3a Bullet Resistant Vests

• Received grant funds from Target department store to fund “Shop with a Cop.” • Conducted Active Shooter training for City staff and business. • Partnered with a neighboring municipality to conduct impound lot auctions. • Incorporate Texas Police Chiefs Association recognition program (Best Practices). • Sponsored various events to increase public safety and promote a positive City image;

Coffee with Cops, National Night Out and Blue Santa program.

Goals

• Implement a Special Traffic Enforcement Program (STEP) traffic unit. • Create Next Door App for Balcones Heights. • Convert K-9 Tahoe to “stealth” traffic patrol. • Sell seized firearms to help finance new/upgraded police rifles and shotguns.

55

• Acquire grant funds to upgrade taser equipment for all officers. • Boost Reserve Officer recruitment through seminars at Alamo Area Council of

Governments (AACOG).

Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 911,386 817,625 740,866

FY 2018-19 estimated final expenses are 10.3% lower than FY 2017-18 actual expenses and we record a 9.4% decrease of total expenses in the FY 2019-20 approved budget.

As the City shuffled police personnel among the General Fund, BHCCD Fund, and Traffic Safety Fund in prior years, personnel costs are lower in this General Fund department in FY 2018-19 compared to FY 2017-18.

The personnel cost for our FY 2019-20 approved budget reflect cost savings through transferring one patrol officer out of this General Fund department into the BHCCD Fund.

56

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


10-510-150 SALARIES 574,561 520,277 520,277 467,503 (52,774) 10-510-155 PART TIME 17,475 20,050 20,050 20,050 - 10-510-160 OVERTIME 15,711 20,000 20,000 20,000 - 10-510-205 SSI 45,748 42,865 42,865 38,828 (4,037) 10-510-210 MEDICAL 54,131 67,200 67,200 57,372 (9,828) 10-510-230 TMRS 101,325 58,255 58,255 40,426 (17,829) 10-510-240 WORKERS COMPENSATION 15,775 16,999 16,999 15,087 (1,912) 10-510-280 UNIFORM ALLOWANCE 9,388 7,400 7,400 6,600 (800)

Personnel Expense 834,114 753,046 753,046 665,866 (87,180)

10-510-290 EMPLOYEE SAFETY EQUIPMENT 10,094 5,000 5,000 10,000 5,000 10-510-310 OFFICE SUPPLIES 1,681 1,000 2,081 2,100 19 10-510-325 OPERATING SUPPLIES 639 1,500 1,862 1,900 38 10-510-335 FLEET FUEL 34,042 24,200 24,000 24,000 - 10-510-350 AMMUNITION & EXPLOSIVES 2,212 2,500 2,500 5,000 2,500 10-510-432 CORRECTION/DETENTION SVCS - 500 - 100 100 10-510-438 LABORATORY SERVICES 334 1,000 - 500 500 10-510-440 MEDICAL SERVICES 361 500 500 500 - 10-510-442 FLEET MAINTENANCE 16,634 22,000 18,000 20,000 2,000 10-510-444 TCOLE PROCESSING 680 700 705 700 (5) 10-510-488 PRINTING 319 250 500 500 - 10-510-490 TRAINING 962 1,000 1,000 1,000 - 10-510-491 STATE LEOSE TRAINING 1,324 2,000 1,381 1,450 69 10-510-492 TRAVEL 3,968 3,000 3,800 4,000 200 10-510-494 MEMBERSHIP DUES 258 300 250 250 - 10-510-498 OTHER EXPENSE 1,464 2,000 3,000 3,000 - 10-510-580 CAPITAL OUTLAY EQUIPMENT 2,300 1,000 - - -


Total Police Department 911,386 821,496 817,625 740,866 (76,759)

POLICE DEPARTMENT

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The Dispatch function provides around-the-clock emergency and non-emergency support and assistance to the citizens, visitors and first responders.

The Police department is responsible for oversight of Communications and its budget.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Dispatch Supervisor 1 1 1 Full-time Dispatchers 4 4 4 Part-time Dispatchers 4 4 4 Total Authorized 9 9 9

Accomplishments

• Implemented the Public Safety Answering Point Emergency Services Mutual Aid Agreement with a neighboring municipality. This agreement includes the rerouting of 911 calls, landlines, and secure information in the event of an outage, emergency, or natural disaster.

• Implemented various policies to ensure full compliance with the rules and regulations of the Texas Crime Information Center (TCIC), National Crime Information Center (NCIC), and Criminal Justice Information Services (CJIS).

• Passed TCIC, NCIC, and CJIS Audits. • Ensured all dispatchers are up to date on licensing and training hours through Texas

Commission on Law Enforcement (TCOLE)—approximately 800 total training hours received.

• Revamped auction procedures by hosting our auctions with a neighboring municipality which lowered expenses and increased revenues.

• Spearheaded two National Night out events as well as the Blue Santa event & parade.

Goals

• Continued compliance of TCIC, NCIC, and CJIS procedures to ensure successful audits. • Continue TCOLE licensing and training of all employees. • Explore initiatives to reduce turnover in the department. • Continued support for City events.

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Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 309,483 311,437 309,483

FY 2018-19 estimated final expenses are less than 1% higher than FY 2017-18 actual expenses and we record a slight decrease of those expenses in the FY 2019-20 approved budget.

Higher operational costs are offset by slightly lower payroll costs attributed to personnel turnover in the department.

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


10-520-150 SALARIES 177,603 186,365 186,365 189,417 3,052 10-520-155 PART TIME 27,527 25,400 25,400 25,200 (200) 10-520-160 OVERTIME 17,797 15,000 15,000 15,000 - 10-520-205 SSI 16,862 17,348 17,348 17,566 218 10-520-210 MEDICAL 33,483 42,000 42,000 40,980 (1,020) 10-520-230 TMRS 33,509 21,712 21,712 16,951 (4,761) 10-520-240 WORKERS COMPENSATION 726 769 769 769 -


10-520-310 OFFICE SUPPLIES 788 1,000 986 1,000 14 10-520-325 GENERAL OPERATING SUPPLIES 484 1,000 500 500 - 10-520-345 MINOR TOOLS AND EQUIPMENT - 250 250 250 - 10-520-390 MISCELLANEOUS SUPPLIES 200 250 250 250 - 10-520-440 MEDICAL SERVICES 504 500 500 500 - 10-520-490 TRAINING - 250 - 200 200 10-520-492 TRAVEL - 250 357 400 43 10-520-498 OTHER EXPENSE - - - 500 500 10-520-580 CAPITAL OUTLAY EQUIPMENT - 500 - - -

Operating Expenses 1,975 4,000 2,843 3,600 757

Total Communications 309,483 312,594 311,437 309,483 (1,954)

COMMUNICATIONS

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The Fire department is a customer service-oriented organization that provides around-the-clock services to the citizens, businesses, and visitors of Balcones Heights. First response services include fire suppression, emergency response, emergency medical services, fire and arson investigation, hazardous materials response and mitigation, special rescues, and emergency management. Fire prevention activities include inspection and code enforcement, plan reviews for construction projects, and public fire safety education.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Fire Chief 1 1 1 Fire Captains 3 3 3 Fire Lieutenants 3 3 3 Fire Fighters 9 9 9 Part-time Fire Fighters 5 5 5 Total Authorized 21 21 21

Accomplishments

• Responded to 888 calls for service including 27 for fire and 670 for rescue and EMS. • Incorporated Naloxone injectors for heroin overdose victims—saved six lives. • Completed a $20,000 Fire Station renovation for ceilings, walls, flooring, kitchen,

bathroom, and new furniture. • Certifications acquired for Driver Operator, Aerial Operator, Building Inspector,

Emergency Medical Technician (EMT) Basic, and Texas Commission on Fire Protection for Fire Officers I - IV.

• Installed 25 donated smoke detectors—at no cost—in residential homes. • Conducted pre-planning and walk-through inspections of City businesses. • Attended safety fairs at local area schools and the Wonderland of the Americas mall.

Goals

• Replace one fire engine. • Explore grant options to replace needed equipment such as a rescue tool, self-contained

breathing apparatus (SCBA), and chemical sniffers. • Continued training and certifications for all firefighters. • Repave back ramp driveway and parking lot. • Replace kitchen cabinets and paint motor room walls.

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Budget Overview

Expenditures

FY 2017-18 Actual



Personnel Costs 1,178,689 1,243,131 1,254,456 Operational Costs 100,506 66,345 69,400

Total Budget 1,279,195 1,309,476 1,323,856

FY 2018-19 estimated final expenses are 2.4% higher than FY 2017-18 actual expenses due to renovation costs for the fire station. We record a 1.1% increase of total expenses in the FY 2019-20 approved budget driven largely by personnel cost increases.

Personnel costs increase 0.9% in our FY 2019-20 approved budget; personnel savings from turnover in FY 2018-19 were offset by scheduled merit increases and increases in certification pays.

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Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


10-530-150 SALARIES 806,636 877,436 877,436 911,509 34,073 10-530-155 PART TIME - 6,100 6,100 6,000 (100) 10-530-160 OVERTIME 26,199 22,500 22,500 22,500 - 10-530-205 SSI 61,725 69,312 69,312 71,911 2,599 10-530-210 MEDICAL 108,198 134,400 134,400 131,136 (3,264) 10-530-230 TMRS 142,272 97,036 97,036 77,453 (19,583) 10-530-240 WORKERS COMPENSATION 19,979 21,147 21,147 21,147 - 10-530-280 UNIFORM ALLOWANCE 13,682 15,200 15,200 12,800 (2,400)

Personnel Expense 1,178,689 1,243,131 1,243,131 1,254,456 11,325

10-530-290 SAFETY EQUIPMENT 10,748 6,000 6,000 9,000 3,000 10-530-295 BUNKER GEAR - - - 9,500 9,500 10-530-310 OFFICE SUPPLIES 445 750 978 1,000 22 10-530-325 OPERATING SUPPLIES 2,587 4,000 4,000 4,000 - 10-530-335 FLEET FUEL 4,157 6,000 6,000 6,000 - 10-530-409 SAFETY GEAR CLEANING - 2,000 2,000 2,000 - 10-530-412 EMS CONTRACT 24,000 - 2,000 - (2,000) 10-530-440 MEDICAL SERVICES 7,335 7,500 6,886 7,000 114 10-530-442 FLEET MAINTENANCE 12,130 14,000 14,000 14,000 - 10-530-485 EQUIPMENT MAINTENANCE - 1,000 78 100 22 10-530-487 EMERGENCY MANAGEMENT 132 5,000 - 2,000 2,000 10-530-488 PRINTING 196 250 500 500 - 10-530-489 COPIER LEASE - - - 500 500 10-530-490 TRAINING 3,948 4,000 4,816 5,000 184 10-530-492 TRAVEL 561 2,000 1,432 1,500 68 10-530-494 MEMBERSHIP DUES 1,739 2,000 1,707 1,800 93 10-530-496 CERTIFICATIONS 408 1,000 1,564 1,500 (64) 10-530-498 OTHER EXPENSES 4,689 1,500 789 1,000 211 10-530-500 FACILITY MAINTENANCE 27,431 2,500 4,307 3,000 (1,307) 10-530-580 CAPITAL OUTLAY EQUIPMENT - 5,000 9,288 - (9,288)


Total Fire Department 1,279,195 1,307,631 1,309,476 1,323,856 14,380

FIRE DEPARTMENT

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The department serves as a one-stop center to better serve customers and facilitate the development process. It combines the functions necessary to review, approve, and monitor development applications from start to finish. The department manages and coordinates planning, design and construction of land development and capital improvement projects, as well as residential improvements. Services include development planning, long range planning, building and infrastructure inspection, infrastructure improvements, and permitting and building fee administration. The department also has managerial oversight of Public Works, Health Services, Animal Control, and Code Compliance.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Director of Community Development 1 1 1 Code Enforcement Officer 1 1 1 Part-time Community Development — 1 1 Part-time Janitorial 1 1 1 Total Authorized 3 4 4

Accomplishments

• Methodist Texsan Hospital is undertaking a major renovation of its Emergency Room operations and has begun parking expansion in anticipation of future facility upgrades.

• Completion of Leisure Drive & Glenarm Drive Phase 1 street reconstruction projects. • Partnered with Bexar County and acquired Community Development Block Grants for

Glenarm Drive Phase 2 and Vivian Lane street reconstruction projects. • Established a Geographic Information System (GIS) to capture, manage, and analyze City

infrastructure data—allowing web access to zoning map. • Expanded Zoning Sign Code. • Established commercial exterior color standards for City businesses.

Goals

• Development and construction of a six-unit town homes project on Gentleman Road. • Partner with VIA Metropolitan Transit to acquire financing for new bus pads in

conjunction with the Hillcrest Drive street project. • Completion of Glenarm Drive Phase 2 and Vivian Lane street projects. • Renovation projects supporting Methodist Texsan Hospital’s Master Plan. • Develop chip and crack seal programs for City streets.

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Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 188,869 189,636 206,839

FY 2018-19 estimated final expenses are slightly higher than FY 2017-18 actual expenses, and we record a 9% increase of those expenses in the FY 2019-20 approved budget.

Personnel costs increase 10.7% in the FY 2019-20 approved budget as a part-time position was created in FY 2018-19 to assist with the increased workload in the department. This position was approved to carry over for six months in the FY 2019-20 approved budget.

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


10-610-150 SALARIES 99,995 102,900 102,900 103,407 507 10-610-155 PART TIME 12,877 12,860 12,860 30,769 17,909 10-610-160 OVERTIME - 500 500 500 - 10-610-205 SSI 8,551 8,894 8,894 10,303 1,409 10-610-210 MEDICAL 6,924 14,280 14,280 13,114 (1,166) 10-610-230 TMRS 17,118 11,149 11,149 8,617 (2,532) 10-610-240 WORKERS COMPENSATION 1,120 399 399 399 - 10-610-280 UNIFORM ALLOWANCE 200 680 680 880 200


10-610-310 OFFICE SUPPLIES 877 750 324 500 176 10-610-335 FLEET FUEL 1,474 1,300 1,229 1,500 271 10-610-416 CITY ENGINEERING SERVICES 19,074 17,000 17,000 17,000 - 10-610-436 INSPECTION SERVICES 15,885 12,000 14,873 15,000 127 10-610-442 FLEET MAINTENANCE 3,369 2,000 500 1,000 500 10-610-488 PRINTING 92 250 250 250 - 10-610-490 TRAINING 641 1,000 1,000 1,000 - 10-610-492 TRAVEL 115 1,000 1,833 2,000 167 10-610-494 MEMBERSHIP DUES - 300 - 100 100 10-610-498 OTHER EXPENSES 557 250 465 500 35 10-610-580 CAPITAL OUTLAY EQUIPMENT - 500 500 - (500)

Operating Expenses 42,084 36,350 37,974 38,850 876

Total Community Development 188,869 188,012 189,636 206,839 17,203

COMMUNITY DEVELOPMENT

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Health services ensure protection in food sanitation and environmental health. It also approves plans for food establishment facilities, issues licenses, and inspects all food establishments according to the local health code and state regulations for the City.

As the City’s health inspection services are outsourced, there are no personnel assigned to this function.

Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 12,000 12,000 12,000

Regardless of the number of health inspections conducted and licenses issued, the City pays a flat fee of $1,000/month for services. This amount carries over unchanged into the FY 2019-20 approved budget.

Budget Detail

HEALTH SERVICES 2017-18


2018-19 Estimated


10-710-436 HEALTH INSPECTION SERVICES 12,000 12,000 12,000 12,000 - Total Health Services 12,000 12,000 12,000 12,000 -

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Public Works is responsible for the maintenance and operation of all City parks, facilities, and special events. Median and right-of-way maintenance, stormwater drainage, and animal control are also administered by this department.

The Director of Community Development is responsible for oversight of Public Works and its budget.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Public Works Supervisor 1 1 1 Maintenance Worker 1 1 1 Total Authorized 2 2 2

Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 109,728 113,087 115,075

FY 2018-19 estimated final expenses are 3% higher than FY 2017-18 actual expenses due primarily to higher fuel usage. We record a 1.8% increase of those expenses in the FY 2019-20 approved budget.

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Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


10-630-150 SALARIES 67,709 70,917 70,917 73,315 2,398 10-630-160 OVERTIME 344 1,000 1,000 1,000 - 10-630-205 SSI 5,061 5,502 5,502 5,685 183 10-630-210 MEDICAL 13,614 16,800 16,800 16,392 (408) 10-630-230 TMRS 11,657 7,755 7,755 6,163 (1,592) 10-630-240 WORKERS COMPENSATION 3,969 4,120 4,120 4,120 - 10-630-280 UNIFORM ALLOWANCE 1,000 1,000 1,000 1,000 -

Personnel Expense 103,355 107,094 107,094 107,675 581

10-630-325 OPERATING SUPPLIES 474 750 500 500 - 10-630-335 FLEET FUEL 1,749 1,750 1,949 2,000 51 10-630-345 MINOR TOOLS & EQUIPMENT 68 250 100 100 - 10-630-355 MAINTENANCE & REPAIRS 288 500 150 250 100 10-630-424 PROFESSIONAL SERVICES 20 250 - 100 100 10-630-442 FLEET MAINTENANCE 1,579 1,500 862 1,500 638 10-630-490 TRAINING 330 100 - 100 100 10-630-492 TRAVEL - 100 - 100 100 10-630-580 CAPITAL OUTLAY EQUIPMENT - 500 - - - 10-820-390 MISCELLANEOUS SUPPLIES 288 250 332 500 168 10-820-442 FACILITY MAINTENANCE 56 500 500 500 - 10-820-476 UTILITIES - WATER & SEWER 675 800 700 750 50 10-820-478 UTILITIES - ELECTRIC 845 1,300 900 1,000 100


Total Public Works 109,728 115,644 113,087 115,075 1,988

PUBLIC WORKS

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Animal control provides humane animal control for the City supporting the strategic goals of increasing public safety and establishing a positive image in the community.

In 2017, we contracted with other municipalities to shelter stray dogs picked up in the City. Additionally, we initiated a program to reduce the number of feral cats in the City.

As Public works personnel transport the animals as needed, there are no personnel costs associated with animal control services.

Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 2,141 2,639 3,450

FY 2019-20 approved budget expenses are the same as what was budgeted for FY 2018-19.

Budget Detail

ANIMAL CONTROL 2017-18


2018-19 Estimated


10-650-325 OPERATING SUPPLIES 23 100 100 100 - 10-650-345 MINOR TOOLS AND EQUIPMENT - 100 - 100 100 10-650-420 VETERINARY SERVICES - 500 - 500 500 10-650-425 ANIMAL SERVICES CONTRACT 342 1,000 789 1,000 211 10-650-430 FERAL CAT PROGRAM 1,776 1,500 1,500 1,500 - 10-650-440 EMPLOYEE MEDICAL SERVICES - 250 250 250 -

Total Animal Control 2,141 3,450 2,639 3,450 811

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The department is responsible for the City’s programs to attract, retain, and grow businesses within the City, facilitating a strong economic foundation to support sustained economic growth. It assists with the recruitment, retention, and expansion of business in the City by developing and administering strategic communications programs that define, enhance, and convey the City’s values, vision, and strategic goals.

This department manages the City’s signature event—the annual Balcones Heights Jazz Festival. It also is responsible for the City’s Public Information functions, including media relations, social media, the City’s website, newsletter, and other related functions. As an adjunct to economic development initiatives and public affairs functions, the Community Relations Manager is an integral part of this department and is responsible for new business ribbon-cuttings which fosters participation by local commercial entities in community-based events such as the Balcones Heights Jazz Festival, National Night Out, Blue Santa, Mayor for A Day, and other activities.

The personnel in the Hotel Occupancy Tax (HOT) Fund also administer the budget for this department. As such, forty percent of personnel costs for this department are assigned to the General Fund. Sixty percent of personnel costs are reflected in the HOT Fund. Additionally, the personnel complement lists both employees for this department in the HOT Fund.

Accomplishments

• Methodist Texsan Hospital is undertaking a major renovation of its Emergency Room operations and has begun construction of a new parking garage in anticipation of future facility expansion.

• Santikos Bijou Cinema Bistro, the region’s most popular art cinema—and San Antonio’s first dine-in theater—has undergone a $250,000 renovation to include new seating, online reservations, a new HVAC system, and a completely new and expanded kitchen.

• Wonder Plaza has undergone a $300,000 renovation to give it a clean and contemporary look. Improvements included a new exterior façade, and new individual channel signs for each of the center’s stores. The new signage was made possible by an economic development grant from the City of Balcones Heights.

• The City and VIA Metropolitan Transit continue discussions regarding options for transit-oriented development within the City, leveraging the existing Park and Ride, and BRT Primo services.

• The 25th Annual Balcones Heights Jazz Festival celebrated a special milestone in 2018 with expanded audio/visual enhancements, including drone footage of performers on giant video walls strategically placed throughout the venue.

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• The Department of Veterans Affairs is adding 12,000 square feet of space in the area formerly occupied by National American University at Wonderland Mall. This addition, set to begin construction in early 2019, will bring VA’s footprint to 32,000 square feet.

• Bandera Family Clinic, and the Center for Orthopedic Surgery & Sports Medicine opened at the Heart Plaza One office tower on the Methodist Texsan campus.

• New businesses opening in Balcones Heights this past year include: Abba Father’s Christian Book Store, Bedoy’s Bakery, CBD American Shaman, Crafthouse Studios, Jumping for Joy, and Lion’s Sports Bar.

• The Balcones Lofts mixed-use development continues to meet expectations. The residential component continues at full occupancy, and has a considerable waiting list.

• The City held its most successful National Night Out and Blue Santa Children’s Toy Drive ever. Additionally, the hospital partnered with the City in presenting its Second Annual Monster Dash 5K Fun Run/Walk as part of the City’s Halloween festivities.

Goals

• Keep the momentum moving forward! • Enhance the Economic Development pages of the City’s Web site to reflect ongoing new

construction and renovations in the City, incentive possibilities, and highlight properties/retail space for sale or lease with photos, video, and specific details.

• Manage the Branding Component of the City Council’s Strategic Plan. • Complete Phase 2 of the City’s Web site redesign. • Leverage the City’s membership in the West San Antonio Chamber of Commerce into

opportunities for local businesses, such as Active Shooter training, and others. • Complete the migration of the hotel/visitor Web site to the redesigned City Web site.

Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 119,179 115,791 119,585

FY 2018-19 estimated final expenses are 2.8% lower than FY 2017-18 actual expenses and FY 2019-20 approved budget expenses are 3.3% higher due to increased operational costs.

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Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


10-900-150 SALARIES 52,528 51,642 51,642 55,237 3,595 10-900-160 OVERTIME 2,353 2,418 2,418 - (2,418) 10-900-205 SSI 4,176 4,136 4,136 4,226 90 10-900-210 MEDICAL 5,795 6,720 6,720 6,557 (163) 10-900-230 TMRS 9,400 5,829 5,829 4,581 (1,248) 10-900-240 WORKERS COMPENSATION 187 217 217 217 -

Personnel Expense 74,439 70,962 70,962 70,818 (144)

10-900-310 OFFICE SUPPLIES 25 945 945 900 (45) 10-900-312 COMMUNITY RELATIONS 7,924 7,500 6,600 7,000 400 10-900-325 OPERATING SUPPLIES - 210 210 200 (10) 10-900-418 LEGAL SERVICES - 147 - 200 200 10-900-450 OFFICE RENT 24,347 24,347 24,347 24,347 - 10-900-452 NEWSLETTER 3,954 6,000 3,900 3,900 - 10-900-455 WEBSITE MAINT & UPDATES 2,160 1,050 - 1,000 1,000 10-900-471 INTERNET & CABLE 346 1,386 - - - 10-900-472 OFFICE TELEPHONE 1,436 924 1,681 1,700 19 10-900-474 SECURITY ALARM SERVICE 187 336 336 320 (16) 10-900-478 UTILITIES - ELECTRIC 1,145 2,100 1,145 1,200 55 10-900-487 RESOURCE & RESEARCH 102 840 840 400 (440) 10-900-488 PRINTING - - - 200 200 10-900-489 COPIER - - - 800 800 10-900-491 TRAINING 505 840 840 800 (40) 10-900-492 TRAVEL 1,658 1,050 1,888 2,000 112 10-900-494 MEMBERSHIP DUES 525 1,050 585 800 215 10-900-499 GRACKLE ABATEMENT - - - 1,600 1,600 10-900-501 PROMOTIONS - 630 630 600 (30) 10-900-502 MEETING COSTS 427 420 420 400 (20) 10-920-491 MEDIA/PUBLIC RELATIONS - 420 420 400 (20)


Total Economic Dev & Public Affairs 119,179 121,199 115,791 119,585 3,794

ECONOMIC DEV. & PUBLIC AFFAIRS

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The Non-departmental accounts serve as an interdepartmental resource to fund activities and purchases that benefit the entire organization and community. The accounts reflect expenses for items such as insurances, professional services, appraisal district, utilities for the Justice Center, and transfers out.

No personnel costs are associated with this department.

Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 306,214 695,923 919,062

FY 2018-19 estimated final expenses are 127% higher than FY 2017-18 actual expenses and we record a 32% increase of those expenses in the FY 2019-20 approved budget due to higher transfers out and contingency expense.

Non-department Costs Breakout

Non-department

FY 2017-18 Actual



Services 146,957 159,967 176,750 Justice Center 17,771 17,640 18,200 Ad Valorem 3,707 — — Insurances 47,776 48,316 50,400 Contingency 10,003 50,000 153,712 Transfers Out 80,000 420,000 520,000

Total Budget 306,214 695,923 919,062

In the FY 2018-19 budget, transfers out of the General Fund increased from $80,000 to $420,000:

• $300,000 to the Capital Fund; and, • $120,000 to the Streets Fund.

The contingency amount also increased, all of which drove the 127% cost increase from FY2017-18 to FY 2018-19.

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For the FY 2019-20 approved budget, Services costs increased by 10.5% due to the addition of an HVAC preventative maintenance agreement for the Justice Center, increased legal services, and the addition of County Appraisal Services cost previously allocated to the Debt Service Fund.

Justice Center and Insurances costs reflect a slight increase.

Ad Valorem expenses are zero as we now recognize net ad valorem revenues.

Transfers out increased in the FY 2019-20 approved budget as we increased the transfer out to the Capital Fund from $300,000 to $400,000.

Contingency expense is the excess of General Fund revenues over expenses and is used to balance the fund’s budget to zero. It increases to $153,712 in the FY 2019-20 approved budget, reflecting payroll cost savings in the General Fund.

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Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Services10-405-418 LEGAL SERVICES 57,299 55,000 55,000 57,500 2,500 10-410-422 CONTRACTED SERVICES 2,910 1,200 1,200 - (1,200) 10-410-424 PROFESSIONAL SERVICES 36,732 52,100 48,000 50,000 2,000 10-410-444 AUDIT SERVICES 10,600 8,000 9,350 10,000 650 10-410-482 LEGAL NOTICES/NEWSPAPER ADS 2,363 3,800 2,900 3,000 100 10-410-484 ELECTION SERVICES 1,799 2,000 2,517 2,750 233 10-430-425 MAINTENANCE AGREEMENTS 35,255 40,750 41,000 45,500 4,500 10-490-402 BEXAR APPRAISAL SERVICES - - - 8,000 8,000

Total Services 146,957 162,850 159,967 176,750 16,783

Justice Center10-430-320 JANITORIAL SUPPLIES 2,223 2,000 2,000 2,000 - 10-430-476 UTILITIES - WATER & SEWER 5,203 5,000 5,000 5,200 200 10-430-478 UTILITIES - ELECTRIC 10,346 11,000 10,640 11,000 360

Total Justice Center 17,771 18,000 17,640 18,200 560

Ad Valorem10-490-404 AD VALOREM TAX SERVICE 1,336 1,500 - - - 10-490-405 AD VALOREM ATTORNEY FEES 2,371 1,500 - - -

Total Ad Valorem 3,707 3,000 - - -

Insurances10-490-460 INSURANCE - PHYSICAL PROPERTY 6,292 9,000 8,880 9,000 120 10-490-462 INSURANCE - GENERAL LIABILITY 40,340 45,000 38,000 40,000 2,000 10-490-464 INSURANCE - EMPLOYEE BONDS 1,144 1,000 1,336 1,400 64 10-490-466 INSURANCE - DEDUCTIBLE RES - 100 100 - (100)

Total Insurances 47,776 55,100 48,316 50,400 2,084

Contingency - 10-490-470 GENERAL CONTINGENCY 10,003 50,288 50,000 153,712 103,712

Total Contingency 10,003 50,288 50,000 153,712 103,712

Transfers Out10-490-495 TRANSFERS OUT 80,000 420,000 420,000 520,000 100,000

Total Transfers Out 80,000 420,000 420,000 520,000 100,000

Total Non Departmental 306,214 709,238 695,923 919,062 223,139

General Fund Total Expenses 4,214,773 4,588,058 4,596,421 4,805,560 209,139

NON-DEPARTMENTAL

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75

All Funds

FY 2017-18 Actual



Revenues 4,003,948 4,264,722 3,605,591 Expenses 4,583,772 3,779,800 3,282,591 Revenues/Expenses (579,824) 484,922 323,000

Special Revenue Funds are used to account for proceeds of specific sources that are legally restricted to expenditures for specific purposes. The City has seventeen of these funds.

SPECIAL FUNDS REVENUES

Fund

FY 2017-18 Actual



Capital Projects 13,772 768,451 804,000 Federal Forfeitures 18,908 70,250 1,250

State Forfeitures 117 32,630 1,250 Streets Maintenance 482,837 122,500 120,000

Traffic Safety 1,124,252 849,750 841,225 BHCCD 756,406 823,500 853,000

Seized Assets 58 114,557 200 Hotel Occupancy Tax 290,280 297,000 296,000

Child Safety 3,916 3,750 3,750 Impound 124,310 177,850 127,100

Auction 48,898 50,050 51,400 Court Security & Tech. 25,381 24,164 24,300

Grants 594,190 439,050 300,000 Parks 1,830 1,450 1,450

Economic Development 435,391 407,500 105,500 PEG 6,449 6,300 6,500

Debt Service 76,953 75,970 68,666 Total Revenues 4,003,948 4,264,722 3,605,591

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SPECIAL FUND EXPENSES

Funds

FY 2017-18 Actual



Capital Projects 855,032 517,715 490,000 Federal Forfeitures 66,475 110,000 —

State Forfeitures 10,454 49,798 — Streets Maintenance 354,004 122,500 120,000

Traffic Safety 1,040,463 839,737 841,225 BHCCD 745,226 719,793 853,000

Seized Assets — 2,000 200 Hotel Occupancy Tax 310,566 253,640 296,000

Child Safety 808 1,500 3,750 Impound 163,481 259,571 127,100

Auction 61,115 57,140 51,400 Court Security & Tech. 6,916 6,732 24,300

Grants 594,190 439,050 300,000 Parks 27 1,100 1,450

Economic Development 300,000 323,557 105,500 PEG — — —

Debt Service 75,015 75,970 68,666 Total Expenses 4,583,772 3,779,800 3,282,591

We breakout the Special Revenue Funds on the following pages to include a description, personnel complement if applicable, its budget, and any major changes in revenues and expenses.

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The Capital Fund accounts for the Capital expenditures that are detailed in the Capital Improvement Plan (CIP). Capital expenditures are financed either by the issuing of debt or annual budget allocations. Capital assets are items costing over $5,000 with a lifespan of over one year.

The Capital budget does not conclude at the end of each fiscal year as the operating budget does as some projects may remain in progress over multiple years. As economic conditions and needs of the community change, it is often necessary to re-prioritize which projects receive funding.

Budget Overview

Capital Fund

FY 2017-18 Actual



Revenue 13,772 768,451 804,000 Expenses 855,032 517,712 490,000

Revenue/Expenses (841,260) 250,739 314,000

In FY 2017-18, the fund paid for one police vehicle and $407,784 for the HVAC replacement at the Justice Center. Additionally, the fund transferred out $400,000 to the Streets Fund to pay for the City’s portion of the Glenarm Drive Phase 1 road reconstruction project.

In FY 2018-19, $753,451 was transferred into the Capital Fund: $300,000 from the General Fund along with $100,000 from the Sewer Fund to help pay for the City’s portion of the Glenarm Drive Phase 2 street reconstruction; $53,451 from the Impound Fund to help pay for the HVAC replacement at the Justice Center; and an additional $300,000 was swept in from the General Fund for future use.

FY 2018-19 estimated final expenditures are $517,712: $45,667 for the final payment of the HVAC replacement; $50,000 for one patrol vehicle for the police department; and $422,045 for Glenarm Drive Phase 2 street reconstruction. Contingency costs from Glenarm Drive Phase 1 may also be recorded in the current fiscal year should they be incurred.

Revenues for the FY 2019-20 approved budget are $804,000: $400,000 from the General Fund in accordance with the CIP for equipment purchases; and a possible $404,000 in tax note proceeds for Vivian Lane street reconstruction.


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CAPITAL IMPROVEMENT PLAN

The Capital Improvement Program (CIP) is a multi-year recurring plan that details how the City could possibly use the recurring transfer into the Capital Fund to finance major equipment purchases, park improvements, and minor facility renovations.

The transfer does not cover the costs of road renovation projects or major facility renovations. Revenues for street reconstruction projects come from other sources such as tax notes, CDBG block grants, and/or transfers from other funds. However, revenue and expenses for street projects are recorded in the Capital Fund.

The CIP, as currently presented, reflects only two street projects every five years that are financed with tax notes. This was done in keeping with the Council’s desire to address City infrastructure needs using available resources, without raising the tax rate, and without decreasing service levels.

The CIP that is presented focuses on long-term equipment sustainability. It is based on known equipment costs in today’s dollars and the following replacement cycles:

Replacement

Cycle

Police Vehicles 5 Years/85,000 Miles Self-Contained Breathing Apparatus (SCBA) 10 Years Utility/Public Works Vehicles 10—15 Years Road Renovations 10—15 Years Fire Engines 20—25 Years Traffic Signals 20—25 Years Road Reconstructions 40—50 Years

Priorities may change and the plan will be reviewed and adjusted accordingly during each budget cycle.

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FIVE YEAR OUTLOOK

The five-year outlook reflects a near-term view of the CIP. It shows estimated costs, the year in which the purchase or project begins, and the funding source.

Street Reconstructions

Street Funding FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Vivian Lane Tax Note $404K Hillcrest Drive Tax Note $500K Sidewalks Capital $50K Total Requirements $404K $500K $50K — —

Equipment Purchases

Equipment Funding FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Police Vehicles Capital $100K $100K $100K $100K $100K Fire Engine Capital $600K Traffic Signal Hillcrest Capital $250K Public Works Vehicle Capital $30K FD SCBA Gear Capital $50K FD Utility Vehicle Capital $50K Total Requirements $100K $130K $700K $350K $200K

Facilities

Facility Funding FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 Park Renovations Capital $50K $50K Justice Center Roof BHCCD $50K Court Renovation CST & PEG $150K Total Requirements — — $50K $200K $50K

The ten-year CIP that follows reflect the same information, but it shows out to ten years. Both plans are subject to change each year.

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81

ANNUAL CIP EXPENDITURES

FY 2019-20 Revenues for the FY 2019-20 approved budget are $804,000: $400,000 transfer in from the General Fund; and a possible $404,000 in tax note proceeds for the Vivian Lane street reconstruction.

FY 2019-20 programmed expenditures are $490,000: $36,000 to paint the Justice Center exterior; $50,000 to replace one police vehicle; and $404,000 for the Vivian Lane street project. $314,000 of unused revenue would carry over into the Capital Fund’s fund balance for future purchases in accordance with the CIP.

The City typically replaces two police vehicles each year under the CIP when they reach five years of duty and 85,000 miles. This is a recurring purchase reflected each year in the Capital Fund. For the FY 2019-20 approved budget, we replace only one vehicle.

Initial costs for the Vivian Lane Street Reconstruction Project is $704,000 and is scheduled to begin in 2020. Bexar County approved a $300,000 contribution towards the project in the form of a Community Development Block Grant (CDBG). City cost recorded in the FY 2019-20 approved budget is $404,000.

FY 2020-21 Estimated revenues for FY 2020-21 are $800,000: $300,000 transfer from the General Fund; and a possible $500,000 in tax note proceeds for the Hillcrest Drive street renovation.

Estimated expenditures are $630,000: $30,000 for a Public Works vehicle; $100,000 for two police vehicles; and $500,000 for the Hillcrest Drive street renovation project. $170,000 of unused revenue would carry over into fund balance.

The large Public Works vehicle, purchased in 2008 will be at the end of its life cycle at this point and is schedule for replacement under the CIP every ten to fifteen years.

The Hillcrest Drive street renovation is planned for FY 2020-21 and we estimate $500,000 as the cost. Preliminary engineering costs could be incurred in FY 2019-20, however revenue and expenses for the project would reflect in the FY 2020-21 budget.

FY 2021-22 Estimated revenues for FY 2020-21 are $350,000; $50,000 from the BHCCD Fund; and $300,000 from the General Fund.

82

Estimated expenditures are $800,000: $50,000 for roof renovations at the Justice Center; $50,000 for residential sidewalks; $100,000 for two patrol vehicles; and $600,000 for a fire engine. Deficit spending of $450,000 would come from the Capital Fund balance.

The City has two fire engines and one ladder truck. We plan to purchase our first replacement engine in FY 2021-22. Both engines were purchased in 1995 and the ladder in 2006. Under the CIP, $600,000 is available every five years to replace fire vehicles. This works out to replacing each vehicle every 20 years.

The City has a good working relationship with the county in the form on CDBG funds to defray the costs of residential street reconstruction projects. However, the CIP reflects just two residential street projects every five years.

To “stay in the loop” for CDBG funds, we reflect minor and less costly residential projects in the years that we are not engaged in a street reconstruction project. Such projects could include residential sidewalk reconstructions and public park renovations.

FY 2021-22 would be the first such project and we recognize $50,000 of City cost for possible sidewalk renovations along residential streets.

The Justice Center roof renovation is recognized as a future requirement in the CIP that would be paid for using fund balances in the BHCCD Fund. Although it is initially recorded to FY 2021-22, the actual renovation would be done on an “as needed” basis.

FY 2022-23 Estimated revenues for FY 2020-21 are $400,000; $100,000 from the Traffic Safety Fund; and $300,000 from the General Fund.

Estimated expenditures are $550,000: $50,000 for park renovations; $100,000 for two patrol vehicles; $150,000 for the Court/Council renovation project; and $250,000 to replace the traffic signal at Hillcrest Drive and Babcock Road. Deficit spending of $150,000 would come from Capital Fund balances.

As we did in the previous year, we partner with the County and schedule a second minor CDBG project for $50,000. This project would be “as needed” for such things as bathroom renovations at the park, pavilion replacement, expanded parking, or trails construction.

The Court/Council renovation project would expand the existing Court and allow it to also serve as a Council Chamber. This project is also a future “as needed” requirement that is initially funded in FY 2021-22. Costs for this would be paid using fund balances in the PEG and Court Security Funds.

83

The traffic signal at Hillcrest Drive and Babcock Road will be beyond its life-cycle at this point and is scheduled for replacement using fund balances in the Capital and Traffic Safety Funds.

FY 2023-24 Estimated revenues for FY 2020-21 are $300,000 from the General Fund.

Estimated expenditures are $250,000; $50,000 for a minor CDBG project; $50,000 for a fire utility vehicle; and $50,000 to replace Self Contained Breathing Apparatus (SCBA) equipment for the Fire department; and $100,000 for two police vehicles. $50,000 of unused revenue would carry over to increase the fund balance.

SCBA equipment for the Fire department would be at the end of its life-cycle at this point and slated for replacement every ten years under the CIP.

As was done in the previous years, we partner with the county for a third minor CDBG project for $50,000. Project to be determined.

FY 2024 + At this point, the previous five-year plan is repeated in perpetuity.

Residential street reconstructions would begin again with Pleasant Phases 1 & 2 slated for fiscal years 2024-2026, followed with three years of minor CDBG projects. Equipment purchases would continue according to its replacement cycle.

for FY 2020-21 are $350,000; $50,000 from the BHCCD Fund; and $300,000 from the General Fund.

84

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance

Beginning Fund Balance 490,484 490,484 741,223

Revenues 305,000 768,451 804,000 Expenses (978,200) (517,712) (490,000)

Revenue/Expense (673,200) 250,739 314,000

Ending Fund Balance (182,716) 741,223 1,055,223

Revenues

11-360-000 INTEREST EARNINGS 13,772 5,000 15,000 - (15,000) 11-350-100 TAX NOTE PROCEEDS - VIVIAN - - - 404,000 404,000 11-371-222 TRANSFER IN - IMPOUND FUND - - 53,451 - (53,451) 11-371-225 TRANSFER IN - SEWER FUND - - 100,000 - (100,000) 11-371-400 TRANSFER IN - 300,000 600,000 400,000 (200,000)

Total Revenue 13,772 305,000 768,451 804,000 35,549

Expenses

11-400-414 TRANSFER OUT - STREETS FUND 400,000 - - - - 11-410-498 OTHER EXPENSE - 5,000 - - - 11-430-530 CAPITAL OUTLAY - BUILDINGS 407,784 - 45,667 36,000 (9,667) 11-510-570 CAPITAL OUTLAY VEHICLES 47,249 50,000 50,000 50,000 - 11-820-100 ENGINEER SERVICES GLENARM 1 - 117,000 - - - 11-820-101 ENGINEER SERVICES GLENARM 2 - 124,000 124,000 - (124,000) 11-820-102 ENGINEER SERVICES VIVIAN LN - - - 124,000 124,000 11-820-200 ST CONSTRUCTION GLENARM 1 - 364,200 - - - 11-820-201 ST CONSTRUCTION GLENARM 2 - 318,000 298,045 - (298,045) 11-820-202 ST CONSTRUCTION VIVIAN LN - - - 280,000 280,000

Total Expense 855,032 978,200 517,712 490,000 (27,712)

CAPITAL PROJECTS FUND

85

The Federal Forfeitures Fund was created to record transactions related to the City’s participation in the Federal Asset Forfeiture Program (AFP).

The mission of AFP is to use asset forfeitures to disrupt and dismantle criminal enterprises, deprive wrongdoers of the profits of criminal activity, deter crime, and restore property to victims of crime while protecting individual rights.

Participating agencies dedicate personnel to the program through joint task forces in exchange for a percentage of the forfeitures collected in a process known as Equitable Sharing. Equitable Sharing revenues are specifically allocated for program use and fall under control of the Police department.

Budget Overview

Federal Forfeitures Fund

FY 2017-18 Actual



Revenue 18,908 70,250 1,250 Expenses 66,475 110,000 —

Revenue/Expenses (47,567) (39,750) 1,250

In FY 2017-18 the fund purchased $65,000 of Watchguard video equipment for police vehicles.

In FY 2018-19, council voted to end the City’s participation in the program and the officer dedicated to the program returned to patrol duties.

Nevertheless, asset forfeitures from previous years remain tied up in the court system and the City expects to receive equitable sharing payments from these over the next few years.

FY 2018-19 estimated final expenses include the purchase of one police vehicle, bullet proof rifle vests, and Toughbooks to replace existing laptops in patrol vehicles. Grant revenues of $60,000 are recorded for the purchase of the vests and Toughbooks.

Although participation in the program has ended, the fund remains open—probably for many years to come—to capture any equitable sharing revenues that remain. We estimate a conservative revenue amount of $1,250 in the FY 2019-20 approved budget as we cannot accurately predict these payments.

No expenses are allocated to the fund in FY 2019-20.

86

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance

Beginning Fund Balance 70,734 70,734 30,984 Revenues 90,250 70,250 1,250 Expenses (112,000) (110,000) -

Revenue/Expense (21,750) (39,750) 1,250 Ending Fund Balance 48,984 30,984 32,234

Revenues

12-352-200 TREASURY DEPT FORFEITURE 18,650 30,000 10,000 1,000 (9,000) 12-355-100 GRANT REVENUE - 60,000 60,000 - (60,000) 12-360-300 INTEREST 259 250 250 250 -

Total Revenue 18,908 90,250 70,250 1,250 (69,000)

Expenses

12-510-345 MINOR TOOLS & EQUIPMENT - 100 - - - 12-510-420 K-9 COSTS 1,410 1,800 - - - 12-510-498 OTHER EXPENSE - 100 - - - 12-510-580 CAPITAL OUTLAY EQUIPMENT 65,065 110,000 110,000 - (110,000)

Total Expense 66,475 112,000 110,000 - (110,000)

FEDERAL FORFEITURES FUND

87

The State Forfeitures Fund was created to record transactions related to the City’s previous participation in the State Asset Forfeiture Program.

The state program is similar to the federal except that it is managed at the state level.

Budget Overview

State Forfeitures Fund

FY 2017-18 Actual



Revenue 117 32,630 1,250 Expenses 10,454 45,798 —

Revenue/Expenses (10,337) (17,168) 1,250

FY 2017-18 expenses include $10,454 to pay for the Police departments portion of the City’s telephone upgrade.

FY 2018-19 revenues reflect federal grant funds to purchase body worn cameras for all police officers. Likewise, expenses reflect actual equipment costs related to the grant.

The FY 2019-20 approved budget records a conservative revenue amount; much like the federal program, timing of any remaining payments is unknown.

The City has not participated in the state program for many years; however, the fund remains open to capture any equitable sharing payments that may come to the City.

88

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance

Beginning Fund Balance 23,237 23,237 6,069 Revenues 33,630 32,630 1,250 Expenses (47,750) (49,798) -

Revenue/Expense (14,120) (17,168) 1,250 Ending Fund Balance 9,117 6,069 7,319

Revenues

13-352-400 STATE COURT FORFEITURE - 1,000 - 1,000 1,000 13-355-400 GRANT REVENUE - 32,530 32,530 - (32,530) 13-360-400 INTEREST 117 100 100 250 150

Total Revenue 117 33,630 32,630 1,250 (31,380)

Expenses

13-510-498 OTHER EXPENSES - 100 2,148 - (2,148) 13-510-580 CAPITAL OUTLAY EQUIPMENT 10,454 47,650 47,650 - (47,650)

Total Expense 10,454 47,750 49,798 - (49,798)

STATE FORFEITURES FUND

89

The Streets Fund provides for the maintenance of the City’s infrastructure including streets, drainage, curbs, sidewalks, signs, and pavement markings on public roads and right-of-ways.

Funding typically comes from a transfer in from the General Fund. In the FY 2019-20 approved budget, the City transfers $120,000 into the fund from the General Fund.

Budget Overview

Streets Fund

FY 2017-18 Actual




Revenue/Expenses 128,833 — —

In the fall of 2015, the City conducted a Pavement Condition Improvement (PCI) Report of all City streets. The study assessed the conditions of all streets and recommended a maintenance schedule to preserve them.

In FY 2017-18 the City increased the transfer to the Streets Fund to $80,000 and then to $120,000 in FY 2018-19, and each year hereafter, as recommended in the PCI.

In FY 2017-18 the City transferred $400,000 in from the Capital Fund to pay for the City’s portion of the Glenarm Drive Phase 1 street reconstruction project.

In FY 2018-19 and beyond, the City recognizes its portion of street reconstruction costs in the Capital Fund, allowing the Streets Fund to reflect true street maintenance costs. However, as Glenarm Drive Phase 1 crosses fiscal years, residual expenses for the project may carry over into FY 2018-19.

In FY 2018-19 the City partnered with the Texas Department of Transportation (TxDOT) to install new street signage along the IH-10 Crossroads intersection. Additionally, repairs to sections of Babcock Road were made along with filling numerous potholes.

The FY 2019-20 approved budget reflects the amount needed in the Streets Fund to keep-up the City’s streets through crack sealing and partial reconstructions. Repairs to sections of Balcones North and crack sealing on various roads are planned.

90

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance

Beginning Fund Balance 232,220 232,220 232,220 Revenues 122,500 122,500 120,000 Expenses (122,500) (122,500) (120,000)

Revenue/Expense - - - Ending Fund Balance 232,220 232,220 232,220

Revenues

14-360-000 INTEREST EARNINGS 2,837 2,500 2,500 - (2,500) 14-370-100 TRANSFER IN GENERAL FUND 80,000 120,000 120,000 120,000 - 14-370-110 TRANSFER IN CAPITAL FUND 400,000 - - - -

Total Revenue 482,837 122,500 122,500 120,000 (2,500)

Expenses

14-640-355 REPAIR/MAINTENANCE SUPPLIES 775 5,000 5,000 5,000 - 14-640-360 STREET SIGNS & SUPPLIES 1,065 5,000 5,000 5,000 - 14-640-416 ENGINEERING SERVICES 1,845 5,000 5,000 5,000 - 14-640-424 PROFESSIONAL SERVICES 313,084 5,000 5,000 5,000 - 14-640-442 REPAIR/MAINTENANCE EXPENSE 37,234 100,000 100,000 100,000 - 14-640-470 CONTINGENCY - 1,500 1,500 - (1,500) 14-640-498 OTHER CHARGES - 1,000 1,000 - (1,000)

Total Expense 354,004 122,500 122,500 120,000 (2,500)

STREETS MAINTENANCE FUND

91

The Traffic Safety Fund is a restricted fund that records all revenue and expenses for the City’s Red-Light Camera Program. Red-Light cameras are authorized by Texas Transportation Code Chapter 707 for reducing the number of red-light violations and improve intersection safety.

The Code also dictates exactly how the program is to be managed and the amount of the fines. Moreover, the City must pay half of the revenue it collects with this program—after deducting administrative expenses—to the state’s Regional Trauma Fund each year.

Senate Bill 1631 eliminated Red-light Camera Programs effective May 2019. However, there is a provision in the bill that allows programs to ride out their existing contracts. City Council recently approved an extension of the red-light camera contract through 2034.

Additionally, the bill eliminated the Scofflaw provision which is the key enforcement component of the program. Without it, violators have diminished incentive to pay their fines. It is still too early to judge the impact of this program change. Staff is monitoring the situation and will make changes should expenses exceed income.

The City has twelve red-light cameras at six City intersections. Since its inception, the Red-Light Camera Program has seen nearly a 70% reduction in intersection accidents. For more information pertaining to the Red-Light Cameras program, see https://www.txdot.gov/driver/laws/red-light/faqs.html

Budget Overview

Traffic Safety Fund

FY 2017-18 Actual



Revenue 1,124,250 849,750 841,225 Expenses 1,040,463 839,737 841,225

Revenue/Expenses 83,787 10,013 —

As possible proof of the program’s success, violations are tracking downward.

FY 2018-19 estimated final revenues are down 24% over FY 2017-18 actual revenues. Revenues for the FY 2019-20 approved budget reflect a 1% decrease over FY 2018-19 estimated final collections.

The Traffic Safety Fund has two departments: Administration and Traffic Safety.

https://www.txdot.gov/driver/laws/red-light/faqs.html

92

The Administration department captures all costs associated with administering the Red-light Camera Program. Allowable expenses include payroll costs and certain operational costs.

Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 823,748 633,982 609,455

In FY 2018-19, payroll costs increased 58% due to moving a portion of General Fund payroll costs into the Traffic Safety Fund; the Administrative Assistant position was vacated in FY 2017-18 and remains unfilled. As other personnel—paid in the General Fund—were used to assist the program, a portion of Court, Police, and Administrative payroll costs were moved into the Traffic Safety Fund’s Administration department.

These percentages were adjusted for FY 2019-20 to accurately reflect the amount of assistance provided to the program. As such there is a 27% reduction in payroll costs in the FY 2019-20 approved budget.

American Traffic Solutions (ATS) is responsible for maintaining red light cameras and processing violations. As such, 64% of the revenue the City collects is paid out in expenses to them.

FY 2018-19 estimated final operational costs are down 39% from FY 2017-18 as payments the City makes to ATS decreases proportionally as the number of violations decrease.

FY 2019-20 approved budget expenses are up 12.3% over FY 2018-19 estimated final expenses as we expect higher collections cost next year in light of House Bill 1631.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Police Corporal 1 1 — Police Officer — — 1 Administrative Assistant 1 1 1 Part-time Police Officer 1 1 1 Total 3 3 3

The Administrative Assistant and part-time officer positions are currently vacant.

93

After administrative costs are deducted from the revenue the Red-light Camera Program receives, the City splits the remaining revenues with the state. Texas Transportation Code highly restricts what cities can use their portion of the revenue for. The City uses its portion of revenues to fund two traffic safety officers and to pay for street and expressway lighting.

Budget Overview

Expenditures

FY 2017-18 Actual




Total Budget 216,715 205,755 231,770

In FY 2017-18, payroll costs reflected one police corporal and one police officer assigned to the department. In FY 2018-19 we moved out the corporal and added a second police officer, thus the reduction in payroll costs. In the FY 2019-20 approved budget, we continue with two police officers in the department.

FY 2019-20 operational costs increase by 43% due to a slight increase in Street & Expressway Lights plus $25,212 assigned as contingency expense used to balance the fund.

Police personnel are assigned to the General Fund, Balcones Heights Crime Control District (BHCCD) Fund, and the Traffic Safety Fund. The personnel complement below, and on the previous page, reflects only the positions in the Traffic Safety Fund.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Police Corporal 1 — — Police Officer 1 2 2 Total 2 2 2

The Administrative Assistant and part-time officer positions are currently vacant.

94

TRAFFIC SAFETY FUND 2017-18


2018-19 Estimated


Fund Balance

Beginning Fund Balance 160,454 160,454 170,467 Revenues 1,164,569 849,750 841,225 Expenses (1,164,572) (839,737) (841,225)

Revenue/Expense (3) 10,013 - Ending Fund Balance 160,451 170,467 170,467

Revenues

15-351-100 FINES & FEES 173,488 1,247,607 890,000 925,950 35,950 15-351-200 LATE FEES 123,925 84,000 81,000 68,000 (13,000) 15-351-300 PORTION DUE TO STATE - (167,788) (123,500) (154,475) (30,975) 15-352-100 CIVIL FINES 824,639 - - - - 15-360-000 INTEREST 1,948 500 2,250 1,500 (750) 15-375-100 OVER/SHORT ACCOUNT 250 250 - 250 250

Total Revenue 1,124,250 1,164,569 849,750 841,225 (8,525)

Expenses

Traffic Safety 15-511-150 SALARIES 103,757 100,862 100,862 104,129 3,267 15-511-160 OVERTIME 3,083 2,500 2,500 2,500 - 15-511-205 SSI 8,091 7,907 7,907 8,157 250 15-511-210 MEDICAL 15,324 16,800 16,800 16,392 (408) 15-511-230 TMRS 18,286 11,145 11,145 8,842 (2,303) 15-511-240 WORKERS COMPENSATION 4,422 4,941 4,941 4,938 (3) 15-511-280 UNIFORM ALLOWANCE 1,600 1,600 1,600 1,600 -


15-511-470 CONTINGENCY - 39,742 - 25,212 25,212 15-511-478 STREET & EXPRESSWAY LIGHTS 62,151 62,000 60,000 60,000 -


Total Traffic Safety Expense 216,715 247,497 205,755 231,770 26,015

95

TRAFFIC SAFETY FUND 2017-18


2018-19 Estimated


Expenses

Administration15-515-150 SALARIES 64,815 106,204 106,204 77,237 (28,967) 15-515-160 OVERTIME 993 1,000 1,000 1,000 - 15-515-205 SSI 4,890 8,201 8,201 5,985 (2,216) 15-515-210 MEDICAL 7,608 15,540 15,540 12,294 (3,246) 15-515-230 TMRS 11,422 11,559 11,559 6,488 (5,071) 15-515-240 WORKERS COMPENSATION 1,640 1,831 1,831 1,831 - 15-515-280 UNIFORM ALLOWANCE 815 1,240 1,240 1,120 (120)


15-515-310 OFFICE SUPPLIES 631 2,000 500 500 - 15-515-408 IT SERVICES 1,000 500 - 500 500 15-515-418 LEGAL SERVICES 2,257 500 647 1,000 353 15-515-444 AUDIT SERVICES 2,000 1,000 1,000 1,000 - 15-515-455 SCOFFLAW 2,000 1,000 - - - 15-515-492 TRAVEL - 500 500 - (500) 15-515-458 VENDOR PAYMENT COLLECTIONS 95,050 125,000 42,000 80,000 38,000 15-515-459 VENDOR PAYMENT CITATIONS 626,800 640,000 443,760 420,000 (23,760) 15-515-498 OTHER EXPENSES 1,828 1,000 - 500 500


Total Administration Expense 823,748 917,075 633,982 609,455 (24,527)

Total Traffic Safety Fund Expense 1,040,463 1,164,572 839,737 841,225 1,488

96

The Balcones Heights Crime Control District (BHCCD) Fund is a restricted fund that records all revenue and expenses for the City’s Crime Control District.

Crime Control Districts are authorized by Texas Local Government Code for the purpose of reducing crime and increasing public safety.

Revenue to the BHCCD comes from a one-half cent sales and usage tax. The fund pays for nine police officers, maintenance costs for the Justice Center, and associated insurance costs.

Budget Overview

BHCCD Fund

FY 2017-18 Actual





Revenue increases reflect the current upward trend in sales taxes collections. The FY 2019-20 approved budget reflects a 3.6% increase in sales tax revenues.

Expenses for the FY 2019-20 approved budget reflect a 18.5% increase due to higher payroll costs; we also transferred one police officer into the fund from the General Fund.

The fund may also be used to transfer monies to the Capital Fund to assist with police related capital renovations, projects, and equipment purchases. No such transfers are reflected in the approved budget.

Police personnel are assigned to the General Fund, Balcones Heights Crime Control District (BHCCD) Fund, and the Traffic Safety Fund. The personnel complement below reflects only the positions in the BHCCD Fund.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Police Lieutenant 1 1 1 Police Sergeant 3 2 2 Police Corporal — 2 3 Police Officer 4 3 3 Total 8 8 9

97

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance


Revenue/Expense 500 103,707 - Ending Fund Balance 246,983 350,190 350,190

Revenues

18-318-300 SALES TAX 753,315 771,000 821,000 853,000 32,000 18-360-000 INTEREST EARNINGS 3,091 2,500 2,500 - (2,500) 18-365-100 GRANT REVENUE - 50,000 - - -

Total Revenue 756,406 823,500 823,500 853,000 29,500

Expenses

18-513-150 SALARIES 441,408 444,633 444,633 530,376 85,743 18-513-160 OVERTIME 6,066 10,000 10,000 10,000 - 18-513-205 SSI 33,885 34,779 34,779 41,339 6,560 18-513-210 MEDICAL 53,767 64,680 64,680 73,764 9,084 18-513-230 TMRS 78,050 49,021 49,021 44,811 (4,210) 18-513-240 WORKERS COMPENSATION 13,369 14,926 14,926 16,838 1,912 18-513-280 UNIFORM ALLOWANCE 6,400 6,280 6,280 7,200 920


18-513-444 AUDIT SERVICES - 4,000 4,000 5,000 1,000 18-513-460 INSURANCE - PROPERTY 5,398 5,500 6,009 6,000 (9) 18-513-462 INSURANCE - GENERAL LIABILITY 965 1,000 965 1,000 35 18-513-470 GENERAL CONTINGENCY - 22,181 - 472 472 18-513-476 UTILITIES - WATER & SEWER 5,770 6,000 6,000 6,200 200 18-513-478 UTILITIES - ELECTRIC 57,025 55,000 58,000 60,000 2,000 18-513-500 FACILITY MAINTENANCE 38,124 55,000 20,000 50,000 30,000 18-513-580 CAPITAL OUTLAY-EQUIPMENT 5,000 50,000 500 - (500)


Total Expense 745,226 823,000 719,793 853,000 133,207

BHCCD FUND

98

The fund provides for the accounting of seized and unclaimed assets. Assets that remain unclaimed are typically turned over to the City after a specific period of time.

Budget Overview

Seized Assets Fund

FY 2017-18 Actual



Revenue 58 114,557 200 Expenses — 2,000 200

Revenue/Expenses 58 112,557 —

In FY 2018-19, the City deposited $113,557 of seized cash into an interest free account as part of an ongoing criminal investigation from 2017. It is not known if the City will retain any of the deposit.

A conservative $200 is assigned as revenue and expenses in the FY 2019-20 approved budget.

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance

Beginning Fund Balance 11,978 11,978 124,535 Revenues 2,000 114,557 200 Expenses (2,000) (2,000) (200)

Revenue/Expense - 112,557 - Ending Fund Balance 11,978 124,535 124,535

Revenues

19-335-100 SEIZED CASH - 1,000 113,557 100 (113,457) 19-335-200 UNCLAIMED SECURITIES 58 1,000 1,000 100 (900)

Total Revenue 58 2,000 114,557 200 (114,357)

Expenses

19-490-498 OTHER EXPENSES - 1,000 1,000 100 (900) 19-490-500 CLAIM PAYMENTS - 1,000 1,000 100 (900)

Total Expense - 2,000 2,000 200 (1,800)

SEIZED ASSETS FUND

99

The Hotel Occupancy Tax (HOT) Fund is used to record revenue and expenses related to the receipts of Occupancy Taxes collected by the City. The use of this tax is restricted by Texas Local Government Code for the purpose of directly enhancing and promoting tourism.

The current Hotel Occupancy Tax rate for the City of Balcones Heights is 14.75%. It is levied on every room night charge and is distributed as follows: 7% to City of Balcones Heights; 6% to the State of Texas; and 1.75% to Bexar County. For more information on Hotel Occupancy Taxes, including the monthly amount distributed to the City, see https://comptroller.texas.gov/taxes/hotel/

Budget Overview

HOT Fund

FY 2017-18 Actual




Revenue/Expenses (20,286) 43,360 —

FY 2019-20 revenues show nearly the same as our estimated final collections for FY 2018-19 as Hotel Occupancy Taxes have leveled off.

Estimated final expenses for FY 2018-19 are 18.3% lower than FY 2017-18 actual expenses due to higher costs for the City’s 25th annual Jazz Festival held in FY 2017-18.

Costs increase by 16.7% in the approved budget due to higher payroll costs, a $9,000 increase for sponsorships, and $6,270 assigned as contingency expense used to balance the fund.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Director of Economic Development 1 1 1 Community Relations Coordinator 1 1 1 Total 2 2 2

https://comptroller.texas.gov/taxes/hotel/

100

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance


Revenue/Expense 10,001 43,360 - Ending Fund Balance 432,324 465,683 465,683

Revenues

20-318-300 HOTEL/MOTEL TAX 283,269 312,500 290,000 290,000 - 20-360-000 INTEREST EARNINGS 7,012 7,000 7,000 6,000 (1,000) 20-365-100 GRANT REVENUE - 10,000 - - -

Total Revenue 290,280 329,500 297,000 296,000 (1,000)

Expenses 20-900-150 SALARIES 72,539 77,462 77,462 82,856 5,394 20-900-160 OVERTIME 3,249 3,626 3,626 - (3,626) 20-900-205 SSI 5,767 6,203 6,203 6,339 136 20-900-210 MEDICAL 8,003 10,080 10,080 9,835 (245) 20-900-230 TMRS 12,980 8,743 8,743 6,871 (1,872) 20-900-240 WORKERS COMPENSATION 239 326 326 326 -

Personnel Expense 102,778 106,440 106,440 106,227 (213)

20-900-310 OFFICE SUPPLIES 2,534 1,305 1,429 1,350 (79) 20-900-325 OPERATING SUPPLIES 35 290 200 300 100 20-900-418 LEGAL SERVICES - 203 - 300 300 20-900-444 AUDIT SERVICES - 3,000 3,000 1,000 (2,000) 20-900-450 OFFICE RENT 33,623 33,623 33,623 33,623 - 20-900-455 POSTAGE 812 100 100 500 400 20-900-470 GENERAL CONTINGENCY - 13,106 - 6,270 6,270 20-900-471 INTERNET & CABLE 479 1,914 - - - 20-900-472 OFFICE TELEPHONE 1,555 1,276 1,939 2,000 61 20-900-474 SECURITY ALARM SERVICE 583 464 464 480 16 20-900-478 UTILITIES - ELECTRIC 1,240 2,900 1,902 2,000 98 20-900-487 RESEARCH & RESOURCES 160 1,160 200 600 400 20-900-488 PRINTING 3,016 500 - 250 250 20-900-489 COPIER LEASE 1,738 1,700 1,564 1,600 36 20-900-491 TRAINING 547 1,160 2,000 2,000 - 20-900-492 TRAVEL 1,796 1,450 3,356 3,500 144 20-900-494 MEMBERSHIP DUES 567 1,450 275 500 225 20-900-499 GRACKLE ABATEMENT - 2,900 2,900 2,400 (500) 20-900-580 CAPITAL OUTLAY - EQUIPMENT 11,379 500 - - - 20-900-605 WEBSITE REDESIGN - 25,000 - 10,000 10,000

HOTEL OCCUPANCY TAX FUND

101

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Expenses 20-920-455 WEBSITE MAINT & UPDATES - 1,450 1,450 1,500 50 20-920-480 BROCHURE/RACK CARDS - 1,000 - 500 500 20-920-484 WEB-BASED ADVERTISING 5,740 10,000 10,000 10,000 - 20-920-486 MAGAZINE ADVERTISING 7,250 16,000 16,000 16,000 - 20-920-487 GOVERNMENT RELATIONS 20,660 20,520 1,710 5,000 3,290 20-920-489 PROMOTIONS 8,920 870 870 900 30 20-920-491 MEDIA/PUBLIC RELATIONS (1,300) 580 580 600 20 20-920-502 MEETING COSTS 462 580 580 600 20 20-920-503 PROMOTIONAL MERCHANDISE 1,908 2,000 2,000 5,000 3,000 20-930-915 JAZZ FESTIVAL 104,084 60,000 60,000 70,000 10,000 20-930-916 HISPANIC TRAILS CULTURE EVENTS - 5,000 - 1,000 1,000 20-930-917 SPONSORSHIP FUND - 1,000 1,000 10,000 9,000


Total Expense 310,566 319,499 253,640 296,000 42,360

HOTEL OCCUPANCY TAX FUND

102

The fund accounts for revenues and expenses associated with the Child Safety Program. Revenues come from vehicle registrations, parking tickets, and school zone violation fines. Allowable expenses are for crossing guards, safety education initiatives, and school infrastructure projects such as cross walks.

Budget Overview

Child Safety Fund

FY 2017-18 Actual



Revenue 3,916 3,750 3,750 Expenses 808 1,500 3,750


Recorded expenses have been for safety education initiatives during the City’s annual National Night Out and Blue Santa programs. Fund balance is retained for possible future school infrastructure improvements.

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance



Revenues

21-334-400 SCHOOL CROSSING FEES 3,766 3,600 3,600 3,600 - 21-360-000 INTEREST EARNINGS 149 150 150 150 -

Total Revenue 3,916 3,750 3,750 3,750 -

Expenses

21-514-325 OPERATING SUPPLIES 808 1,500 1,500 1,500 - 21-514-442 REPAIR/MAINTENANCE EXPENSE - 1,500 - 2,250 2,250 21-514-470 GENERAL CONTINGENCY - 250 - - - 21-514-498 OTHER EXPENSE - 500 - - -

Total Expense 808 3,750 1,500 3,750 2,250

CHILD SAFETY FUND

103

The Impound Fund was created to record transactions related to the City’s impound function.

The fund also serves to supplement the General Fund via an annual transfer out and provide funding for minor capital projects.

Budget Overview

Impound Fund

FY 2017-18 Actual




Revenue/Expenses (39,171) (81,721) —

The fund recorded more expenses than revenue in FY 2017-18 as it contributed $53,451 to the Capital Fund to help defray costs for the HVAC replacement. The fund also made its budgeted $120,000 transfer to the General Fund.

FY 2018-19 estimated final expenses reflect the budgeted transfer of $120,000 to the General Fund and $50,000 to install security cameras at the Impound Lot.

Revenue projections will likely fall short of the budgeted mark in FY 2018-19 by nearly $30,000 as the number of impounds are trending downward. Fortunately, expenses are proportional to revenues, so they also reflect a decrease in the FY 2019-20 approved budget.

In the FY 2019-20 approved budget, the City reduces the transfer out amount to the General Fund to $90,000 allowing the fund to preserve its remaining fund balance. Additionally, there are no transfers out to the Capital Fund in the approved budget.

104

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance


Revenue/Expense (53,991) (81,721) - Ending Fund Balance 65,654 37,924 37,924

Revenues

22-340-100 IMPOUND FEES 70,800 94,000 71,000 71,000 - 22-340-110 TOWING FEES 33,915 42,000 35,000 35,000 - 22-340-120 DAILY FEES 16,420 18,000 19,000 19,000 - 22-340-140 ADMIN/POSTAGE FEES 2,544 2,700 2,000 2,000 - 22-350-100 GRANT REVENUE - 50,000 50,000 - (50,000) 22-360-000 INTEREST EARNINGS 641 750 750 - (750) 22-375-100 OVER/SHORT ACCOUNT (10) 100 100 100 -

Total Revenue 124,310 207,550 177,850 127,100 (50,750)

Expenses

22-415-315 OFFICE SUPPLIES - 100 - 100 100 22-415-450 POSTAGE 1,756 1,250 1,200 1,250 50 22-415-460 TOWING 41,670 36,000 34,360 35,000 640 22-415-474 SECURITY MONITORING - 540 360 750 390 22-415-488 PRINTING - 100 100 - (100) 22-415-498 OTHER EXPENSES 55 100 100 - (100) 22-415-499 TRANSFER TO CAPITAL FUND - 53,451 53,451 - (53,451) 22-415-510 TRANSFER TO GENERAL FUND 120,000 120,000 120,000 90,000 (30,000) 22-415-580 CAPITAL OUTLAY EQUIPMENT - 50,000 50,000 - (50,000)

Total Expense 163,481 261,541 259,571 127,100 (132,471)

IMPOUND FUND

105

The Auction Fund was created to record transactions related to the City’s auctioning off unclaimed impounds.

It also serves to supplement the General Fund via an annual transfer out and provide funding for minor capital projects.

Budget Overview

Auction Fund

FY 2017-18 Actual




Revenue/Expenses (12,217) (7,090) —

The fund recorded more expenses than revenue in FY 2017-18 as it contributed $7,272 to the Capital Fund to help defray costs for the City telephone upgrade. The fund also made its planned $50,000 transfer to the General Fund.

In FY 2018-19, the City partnered with a neighboring municipality to hold joint auctions. This has reduced towing and vehicle preparation expenses and increased profit margins.

We estimate a $7,090 decrease to the fund balance in FY 2018-19 as auction revenues are down.

Auction revenues are tied directly to the number of impounds the City records. As Impound revenues are projected to fall short of the mark in FY 2018-19, so do auction revenues.

The FY 2019-20 approved budget shows the fund to be in balance even as we continue the annual transfer from the fund into the General Fund. Additionally, there are no transfers out to the Capital Fund in the approved budget.

106

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance


Revenue/Expense 3,000 (7,090) - Ending Fund Balance 32,578 22,488 22,488

Revenues

23-340-130 VEHICLE AUCTIONS 47,602 60,000 47,500 49,000 1,500 23-340-140 ADMINISTRATION FEES 1,056 3,000 2,300 2,400 100 23-360-000 INTEREST EARNINGS 240 250 250 - (250)

Total Revenue 48,898 63,250 50,050 51,400 1,350

Expenses

23-415-424 PROFESSIONAL SERVICES 1,848 4,000 890 1,000 110 23-415-460 TOWING 1,995 6,000 6,000 400 (5,600) 23-415-498 OTHER EXPENSES - 250 250 - (250) 23-415-510 TRANSFER TO GENERAL FUND 50,000 50,000 50,000 50,000 - 23-415-550 CAPITAL OUTLAY EQUIPMENT 7,272 - - - -

Total Expense 61,115 60,250 57,140 51,400 (5,740)

AUCTION FUND

107

Court Security and Technology fees are collected when a defendant is convicted of a criminal offense in a district court. Texas Code of Criminal Procedure regulates this fund and dictates what the fees may be used for.

Budget Overview

Court Security & Tech. Fund

FY 2017-18 Actual





True expenses in the FY 2019-20 approved budget are $8,286 with $16,014 assigned as contingency expense used to balance the fund to zero.

The contingency amount likely will not be used and at the end of the fiscal year, so it will be folded into fund balance. Ending fund balance would then be nearly $100,000 which would be available for future court security and technology renovations.

Complement

Authorized Personnel FY 2017-18 FY 2018-19 FY 2019-20 Part-time Bailiffs 2 2 2 Total 2 2 2

108

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance



Revenues

24-340-125 COURT TECHNOLOGY FEE 13,812 16,000 13,590 13,600 10 24-340-150 COURT SECURITY FEE 11,354 12,000 10,374 10,500 126 24-360-000 INTEREST EARNINGS 215 200 200 200 -

Total Revenue 25,381 28,200 24,164 24,300 136

Expenses

24-420-150 SALARIES 4,076 4,555 4,555 4,605 50 24-420-210 SSI 311 348 348 352 4 24-420-240 WORKERS COMPENSATION 283 629 629 629 - 24-420-280 UNIFORMS 100 200 200 200 -


24-420-430 COURT TECHNOLOGY 2,046 2,500 1,000 2,000 1,000 24-420-470 CONTINGENCY - 16,968 - 16,014 16,014 24-420-498 OTHER EXPENSE 100 1,000 - 500 500 24-420-500 COURT TECHNOLOGY CAPITAL - 1,000 - - - 24-420-501 COURT SECURITY CAPITAL - 1,000 - - -


Total Expense 6,916 28,200 6,732 24,300 17,568

COURT SECURITY & TECHNOLOGY FUND

109

The Grants Fund records transactions related to Community Development Block Grants. The City has long partnered with the County using grant contributions for residential street reconstruction projects.

Revenues—County reimbursements—are recorded as they are received. The matching amount the County provides varies according to the project and number of requests received in any given year.

Expenses are initially recorded in the Capital Fund. Near the end of the fiscal year, expense amounts matching revenue amounts received from each grant are transferred into the Grants Fund. Therefore, expenses will match revenues received each year for each grant.

The remaining expenses reflect the City’s cost for each project and remain in the Capital Fund. Street projects often span across multiple fiscal years.

Budget Overview

Grants Fund

FY 2017-18 Actual




Revenue/Expenses — — —

In FY 2017-18 the City received reimbursements for Leisure Drive Phase 2 street reconstruction which finished in 2017. Additionally, funds were received for the majority of the work for Glenarm Drive Phase 1 which began in 2017.

In FY 2018-19 the City received the final reimbursements for Glenarm Drive Phase 1 street reconstruction which finished in 2018.

We estimate receiving $277,000 for Glenarm Drive Phase 2 reconstruction in FY 2018-19. In June 2019, the City approved the construction agreement for Phase 2 and work has begun. Completion is slated for November—City cost is $422,045 in the current fiscal year.

However, as completion of the project is not guaranteed in this fiscal year, reimbursements may also extend into FY 2019-20.

The FY 2019-20 approved budget reflects the $300,000 contribution from the County for the Vivian Lane project. Reconstruction of Vivian Lane is schedule to begin in 2020.

110

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance

Beginning Fund Balance - - - Revenues 277,000 439,050 300,000 Expenses (277,000) (439,050) (300,000)

Revenue/Expense - - - Ending Fund Balance - - -

Revenues

27-330-100 CDBG GRANTS 594,190 - 162,050 - (162,050) 27-330-102 GLENARM PHASE 2 - 277,000 277,000 - (277,000) 27-330-104 VIVIAN LANE - - - 300,000

Total Revenue 594,190 277,000 439,050 300,000 (139,050)

Expenses

27-640-550 CAPITAL OUTLAY-O/BLDGS 594,190 - 162,050 - (162,050) 27-640-552 GLENARM PHASE 2 - 277,000 277,000 - (277,000) 27-640-554 VIVIAN LANE - - - 300,000 -

Total Expense 594,190 277,000 439,050 300,000 (139,050)

GRANTS FUND

111

The fund is relatively new and it accounts for revenues and expenses for City parks. Revenue comes from park pavilion rentals at Rogiers Park.

Budget Overview

Parks Fund

FY 2017-18 Actual



Revenue 1,830 1,450 1,450 Expenses 27 1,100 1,450

Revenue/Expenses 1,803 350 —

Excess revenues are retained to fund balance for possible future park renovations such as bathrooms, curbs, and pavilion projects.

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance

Beginning Fund Balance (454) (454) (104) Revenues 2,000 1,450 1,450 Expenses (2,000) (1,100) (1,450)

Revenue/Expense - 350 - Ending Fund Balance (454) (104) (104)

Revenues

29-346-100 ROGIERS PARK PAVILION RENTAL 1,830 2,000 1,450 1,450 - Total Revenue 1,830 2,000 1,450 1,450 -

Expenses

29-810-325 OPERATING SUPPLIES 23 1,000 900 1,000 100 29-810-442 PARK MAINTENANCE 4 1,000 200 450 250

Total Expense 27 2,000 1,100 1,450 350

PARKS FUND

112

The fund records transactions related to advancing economic development and directly supports the City’s strategic goal of long-term funding sustainability.

Contributions to the fund are crucial to finance projects and programs that create or retain jobs, improve the tax base, or otherwise enhance the quality of life in the community.

Revenue comes from CPS Franchise Taxes; one-third of the tax goes to the Economic Development Fund and the remaining goes to the General Fund.

Budget Overview

Economic Development Fund

FY 2017-18 Actual





In 2014, the City entered into a Chapter 380 agreement with the County and Community Housing Resource Partners, Inc. (CHR) to develop the Balcones Lofts—an 84-unit multifamily housing with retail project.

Under the agreement, the City established a bridge loan between the County and CHR where the City was to passthrough five annual payments of $300,000 beginning in FY 2014-15.

The City finished the final passthrough payments in FY 2018-19. Thus, the decrease in revenues and expenses allocated in the FY 2019-20 approved budget.

Additionally, the City paid $22,482 in Development Grants for the 380 agreement with Wonder Plaza to help pay for signage improvements in FY 2018-19.

In the FY 2019-20 approved budget, we add $12,500 to a new expense line for the City’s Branding Campaign. True expenses for FY 2019-20 are $39,000 with $66,500 assigned as contingency expense used to balance the fund to zero.

Any expense or contingency amount that is not used at the end of the fiscal year will be folded into fund balance which would be available for future economic development projects. As such, the bigger the fund balance is, the better.

113

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance



Revenues

30-320-000 CPS FRANCHISE 1.5% 103,535 100,000 104,500 105,500 1,000 30-360-000 INTEREST EARNINGS 2,671 3,000 3,000 - (3,000) 30-370-000 OTHER REVENUES 329,186 300,000 300,000 - (300,000)

Total Revenue 435,391 403,000 407,500 105,500 (302,000)

Expenses

30-410-422 ECONOMIC DEVEL. CONTRACT 300,000 300,000 300,000 - (300,000) 30-410-424 PROFESSIONAL SERVICES - 1,000 - 1,000 1,000 30-410-426 DEVELOPMENT GRANTS - 15,000 22,482 20,000 (2,482) 30-490-470 CONTINGENCY - 80,000 - 66,500 66,500 30-600-100 DEVELOPMENT COSTS - 1,000 - 1,000 1,000 30-600-150 CHAMBER MEMBERSHIP FEES - 5,000 1,075 2,000 925 30-600-200 CITY BRANDING - - - 12,500 12,500 30-600-300 ADVERTISING & PROMOTIONS - 1,000 - 2,500 2,500

Total Expense 300,000 403,000 323,557 105,500 (218,057)

ECONOMIC DEVELOPMENT FUND

114

The fund records transactions related to Public, Educational, and Governmental (PEG) access. Under the program, fees are provided by cable franchise providers for the purpose of deferring capital costs incurred for PEG access programs.

Budget Overview

PEG Fund

FY 2017-18 Actual



Revenue 6,449 6,300 6,500 Expenses — — —


Fund balance is retained for possible future council chamber renovations that could allow live streaming of council events.

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance

Beginning Fund Balance 42,618 42,618 48,918 Revenues 6,300 6,300 6,500 Expenses (6,300) - -

Revenue/Expense - 6,300 6,500 Ending Fund Balance 42,618 48,918 55,418

Revenues

33-318-461 1% FRANCHISE PEG 6,449 6,300 6,300 6,500 200 Total Revenue 6,449 6,300 6,300 6,500 200

Expenses

33-410-470 GENERAL CONTINGENCY - 6,300 - - - Total Expense - 6,300 - - -

PEG FUND

115

The Debt Service Fund accounts for the payment of the City’s property tax supported debt principal and interest. Revenue comes from the I&S portion of property tax collections.

Debt Service Fund

FY 2017-18 Actual




Revenue/Expenses 1,938 — —

The City’s debt limit is 10% of its assessed property tax value. For the 2019 tax year, that amount is $29,664,623. The City’s current percentage of debt to assessed value is 0.004%.

The City’s outstanding debt is $137,564 for repayment on a general obligation bond for the 2006 fire ladder truck purchase. The final payment on the bond is scheduled for FY 2020-21.

The FY 2019-20 approved budget reflects the annual principle and interest payment of $68,666. Additionally, the annual payment to the Bexar County Appraisal District for tax appraisal services—$8,600—was reallocated to the General Fund in the approved budget.

The City can purchase tax notes in FY 2019-20 to finance the Vivian Lane street reconstruction project. Purchase would be made at a time to ensure that the repayment on the note would reflect in the FY 2020-21 budget. A five-year repayment on $404,000 of debt, based on current interest rates, would be approximately $86,492 per year.

* Principle amount Source: Balcones Heights FY 2017-18 Comprehensive Annual Financial Report

116

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance


Revenue/Expense - - - Ending Fund Balance 64,756 64,756 64,756

Revenues

36-310-110 AD VALOREM TAX 76,019 75,670 75,670 68,666 (7,004) 36-360-000 INTEREST EARNINGS 934 300 300 - (300)

Total Revenue 76,953 75,970 75,970 68,666 (7,304)

Expenses

36-490-650 PRINCIPAL-06 FIRETRUCK LEASE 61,000 63,000 63,000 66,000 3,000 36-490-651 INTEREST-06 FIRETRUCK LEASE 6,006 4,370 4,370 2,666 (1,704) 36-490-690 BCAD BUDGET LEVY 8,009 8,600 8,600 - (8,600)

Total Expense 75,015 75,970 75,970 68,666 (7,304)

DEBT SERVICE FUND

117

118

The Proprietary Funds were created to account for the operations of the City’s sewer and storm water functions. The City has two Proprietary Funds: Sewer and Storm Water.

All Proprietary Funds

FY 2017-18 Actual



Revenues 845,737 902,400 909,150 Expenses 674,816 774,991 816,750

Revenues/Expenses 170,921 127,409 92,400

Sewer and storm water services are provided to the City by the San Antonio Water System (SAWS). However, the City is responsible for infrastructure upkeep. Therefore, the City created two proprietary funds to account for revenues and expenses related to these functions.

119

The Sewer Fund is used to account for the receipt of sewer utility fees and other financial resources for construction, operations, and maintenance of the City’s sewer system.

Budget Overview

Sewer Fund

FY 2017-18 Actual





Charges for waste water disposal are collected by SAWS and the City imposes a 10% fee on top of each bill that they provide to the customer. SAWS then remits the City’s portion of collections on a monthly basis.

Similarly, SAWS charges the City on a monthly basis for waste water disposal.

Beginning in FY 2015-16, the City went from a set fee that it charges for disposal to a percentage-based fee. Since that time, the City has ramped up the fee from 3% to 10% where it stands today. There are no fee increases were recorded in the FY 2019-20 budget.

Fee collections are used to support infrastructure maintenance; sewer line repairs can be costly as much of the City’s infrastructure is over fifty years old. It may also be used to fund infrastructure improvements that are related to road reconstruction projects.

In FY 2018-19 the City transferred $100,000 to the Capital Fund to help pay for the City’s portion of the Glenarm Drive Phase 2 street reconstruction. Thus, the 15% increase in our FY 2018-19 estimated final expenses over FY 2017-18 actual expenses.

True expenses for the FY 2019-20 approved budget are $723,800 with $88,450 assigned as contingency expense used to balance the fund to zero.

Any expense or contingency amount that is not used at the end of the fiscal year will be folded into fund balance which would be available for sewer line repairs or sewer related projects. Much like the Economic Development Fund, the larger the fund balance is in the Sewer Fund, the better.

120

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance



Revenues

56-360-000 INTEREST EARNINGS 2,824 2,250 2,250 2,250 - 56-381-300 WASTEWATER USER FEES 757,036 705,000 750,000 757,000 7,000 56-381-301 BILLING ADJUSTMENTS (9,038) (10,000) (10,000) (12,000) (2,000) 56-381-305 CAPITAL REPLACEMENT 25,268 50,000 64,000 65,000 1,000

Total Revenue 776,090 747,250 806,250 812,250 6,000

Expenses 56-490-345 STORM WATER FEES 38,531 32,500 32,500 35,000 2,500 56-490-406 BILLING SERVICES 2,426 2,500 2,500 3,200 700 56-490-416 ENGINEERING SERVICES 3,733 1,000 4,527 5,000 473 56-490-422 CONTRACT MAINTENANCE SVCS - 100 - - - 56-490-442 SEWER MAINTENANCE 21,869 50,000 1,864 50,000 48,136 56-490-444 AUDIT SERVICES 7,000 2,000 2,000 2,000 - 56-490-446 TRANSPORT & TREATMENT SVCS 597,875 605,775 624,000 626,000 2,000 56-490-470 CONTINGENCY - 50,275 - 88,450 88,450 56-495-495 TRANSFERS OUT - - 100,000 - (100,000) 56-490-498 OTHER CHARGES - 100 100 100 - 56-490-499 DEPRECIATION 2,382 3,000 3,000 2,500 (500)

Total Expense 673,815 747,250 770,491 812,250 41,759

SEWER FUND

121

The Storm Water Fund is used to account for the receipt of storm water utility fees and other financial resources for construction, operations and maintenance of the City's storm water drainage system.

Budget Overview

Storm Water Fund

FY 2017-18 Actual





Services for storm water disposal are provided by SAWS.

Up until 2017, the City did not charge residents and business owners a storm water fee as most municipalities do. In FY 2017-18 the City implemented a fee structure based on impervious cover.

As is the case with waste water disposal, SAWS bills the customers for storm water disposal and remits the collections, less their billing fee, to the City on a monthly basis.

As this is a relatively new fee, no increases are recorded in the FY 2019-20 approved budget. A possible recalculation of the fees could be considered in the FY 2020-21 budget.

Fee collections are used to support storm water runoff projects which, like sewer line repairs, can be costly. It may also be used to finance infrastructure improvements that are related to road reconstruction projects.

True expenses for the FY 2019-20 approved budget are $4,500. Any excess amount that is not used at the end of the fiscal year will be folded into fund balance which would be available for storm water related projects.

122

Budget Detail

2017-18 Actual

2018-19 Budget

2018-19 Estimated


Fund Balance


Revenue/Expense - 91,650 92,400 Ending Fund Balance 6,566 98,216 190,616

Revenues

57-360-000 INTEREST EARNINGS 1,253 1,500 2,000 1,500 (500) 57-381-300 STORM WATER USER FEES 82,630 120,000 97,750 99,000 1,250 57-381-301 BILLING ADJUSTMENTS (14,236) (8,500) (3,600) (3,600) -

Total Revenue 69,647 113,000 96,150 96,900 750

Expenses

57-490-406 BILLING SERVICES 1,001 2,500 2,500 2,500 - 57-490-444 AUDIT SERVICES - 2,000 2,000 2,000 - 57-490-470 CONTINGENCY - 108,500 - - -

Total Expenses 1,001 113,000 4,500 4,500 -

STORM WATER FUND

123

124

CITY

Established 1948

Form of Government Council/Manager

Area in Square Miles .7 square miles

DEMOGRAPHICS

Population: 3,277

Hispanic 77%

White 15%

Black 7%

Native 1%

Other <1%

Population by Gender:

Male 49%

Female 51%

Median Age 33.7

Median Income $30,883

Below Poverty Line 22.3%

Education Attained:

No Degree 16%

High School 39%

Some College 34%

Bachelor’s or Higher 8%

Number of Households 1,395

Median Housing Value $105,100

Number of Multi-family Units 1,581

Number of Businesses 365

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ECONOMICS

Principle Property Taxpayers for tax year 2018 show below: Taxpayer

Assessed Value

Methodist Healthcare System $63,266,952 Crossroads Mall Partners $26,362,222 Target Corporation $16,881,020 Brixton Santa Fe $9,700,000 NCT Shepard $8,703,044 Boston Woods $6,900,000 Brundage Mini Storages $6,017,510 Leon Springs Associates $5,970,000 Brookhollow Middletown $5,938,858 Furrh Lorena Dodson Duke $4,432,090

Source: Bexar Appraisal District

Historic Ad Valorem Collections show below:

Year

Paid Accounts

Taxable Value

Tax Rate

Tax Levy

Taxes Paid

2007 755 208,704,886 0.498356 1,040,807 1,036,119 2008 736 223,308,806 0.490729 1,096,650 1,093,231 2009 717 220,898,895 0.510481 1,128,064 1,112,179 2010 707 206,553,899 0.558843 1,154,886 1,150,015 2011 754 205,581,203 0.572199 1,177,004 1,168,540 2012 742 210,591,466 0.572199 1,205,669 1,195,311 2013 750 208,935,074 0.572199 1,196,649 1,188,604 2014 746 215,673,292 0.572199 1,234,756 1,228,574 2015 765 246,832,731 0.539300 1,331,847 1,323,255 2016 769 261,009,113 0.551000 1,439,206 1,431,703 2017 740 274,396,335 0.583000 1,601,032 1,603,149

Source: 2018 Bexar County Tax Assessor-Collector TC168 Report

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Principle Employers in 2018 show below: Employer

Employees

% of City employed

Lackland Air Force Base 37,000 3.24% Fort Sam Houston 32,000 2.80% HEB Food Stores 20,000 1.75% USAA 18,305 1.60% Northside ISD 12,751 1.12% Randolph Air Force Base 11,000 .96% North East ISD 10,052 .88% Methodist Healthcare System 9,620 .84% City of San Antonio 9,145 .80% San Antonio ISD 7,000 .61%

Source: San Antonio Economic Development Foundation

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128

CITY of BALCONES HEIGHTS HOLIDAY SCHEDULE Fiscal Year 2018-19

October 1, 2018 – September 30, 2019 APPROVED

VETERAN’S DAY November 12, 2018 Monday

THANKSGIVING November 22, 2018 Thursday

FRIDAY AFTER November 23, 2018 Friday

CHRISTMAS EVE December 24, 2018 Monday

CHRISTMAS DAY December 25, 2018 Tuesday

NEW YEARS EVE December 31, 2018 Monday

NEW YEARS January 1, 2019 Tuesday

MARTIN LUTHER KING DAY January 21, 2019 Monday

PRESIDENT’S DAY February 18, 2019 Monday

BATTLE OF FLOWERS PARADE April 26, 2019 Friday

MEMORIAL DAY May 27, 2019 Monday

INDEPENDENCE DAY July 4 & 5, 2019 Thursday and Friday

LABOR DAY September 2, 2019 Monday

City Council Meeting Date Changes: 4th Monday, November 26th – Change to 3rd Monday, November 19th 4th Monday, December 24th – Change to 3rd Monday, December 17th

4th Monday, May 27th – Change to 3rd Monday, May 20th 4th Monday, April 22nd – Change to 3rd Monday, April 15th

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130

Account: A range of numbers used in the general ledger by the City to indicate the fund, department, and activity. All budgetary transactions, whether revenue or expenditure, are recorded in accounts.

Accrual Basis: The basis of accounting under which transactions are recognized when they occur, regardless of the timing of related cash flows.

Ad Valorem Tax: Also called property taxes are a tax computed from the assessed evaluation of land and improvements.

Adopted Budget: The final budget adopted by ordinance by the City Council.

Appraised Value: An evaluation of a property’s value based on a given point in time that is performed by the county appraiser.

Assessed Valuation: Total gross valuation, assigned by the county’s taxing authority, to property for ad valorem taxation purposes.

Assets: Resources owned or held by the city, which have monetary value.

Audit: A systematic collection of the sufficient, competent, evidential matter needed to attest to the fairness of management’s assertions in the financial statements or to evaluate whether management has efficiently and effectively carried out its responsibilities. The auditor obtains the evidential matter through inspection, observation, inquires and confirmations with third parties.

Balanced Budget: A balanced budget occurs when the total sum of money a government collects in a year is equal to the amount it spends on goods, services, and debt interest.

Basis of Accounting: A term used to describe when & how revenues, expenditures, expenses and transfers are recognized in the budget and reported in the financial statements. Specifically, it relates to the timing of the measurements made, regardless of the nature of the measurement, on either the cash or the accrual method.

Bonds: A debt security issued by a state, municipality or county to finance its capital expenditures. Municipal bonds are exempt from federal taxes and from most state and local taxes, especially if you live in the state in which the bond is issued.

Budget: The city’s financial plan for a specific fiscal year that contains both the estimated revenue to be received during the year and the estimated expenditures to be incurred to achieve related objectives.

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Budget Amendment: The budget may be formally amended after it has been approved. Amendments may be required, for example, with the incorporation of a new labor contract or if revenues fall or grow beyond projections.

Capital Assets: Things the city owns, such as buildings, land, roads, bridges, and equipment. Capital assets have a value of $5,000 or more, have an anticipated life of more than one year, and can be readily identified and tracked as an individual asset.

Capital Expenditures: Funds spent by the City to acquire or maintain fixed assets such as land, roads, buildings, or equipment.

Capital Improvement Program (CIP): A plan for capital expenditures to be incurred each year over a fixed period of several future years setting forth each capital project and the amount and the method of financing.

Capital Projects Fund: Established to account for and report financial resources that are restricted, committed and assigned to expenditure for capital expenditures including the acquisition or construction of capital facilities and other capital assets.

Certificates of Obligations: Similar to general obligations bonds except the certificates requires no voter approval.

City Council: The Mayor and council members collectively acting as the legislative and policymaking body of the City.

Comprehensive Annual Financial Report (CAFR): A set of financial statements for a city or municipality that comply with accounting requirements established by the Governmental Accounting Standards Board (GASB).

Contingency: A budgeted account set aside to meet unforeseen circumstances.

Cost of Living Adjustment (COLA): A wage or benefit increase that is designed to you keep pace with increased living costs that result from inflation. COLAs are usually pegged to increases in the consumer price index (CPI).

Debt Limit: The maximum amount of debt which an issuer of municipal securities is permitted to incur under constitutional, statutory or charter provisions.

Debt Ratio: A financial ratio of total debt to total assets, expressed in a percentage, and can be interpreted as the proportion of a city’s assets that are financed by debt.

Debt Service Fund: A fund used to account for the monies set aside for the payment of interest and principal on the city’s general obligation and revenue bonds.

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Deficit: When expenses exceed revenues.

Department: A functional unit of the city containing one or more divisions or activities.

Depreciation: Loss of value. The City allocates the cost of an asset over its useful life to account for declining value. Depreciation is not a budgeted item.

Effective Tax Rate: Calculation as required by the State Property Tax Code. The Effective Tax Rate applied to the year’s tax base would generate the same amount of taxes levied last year.

Expenditures: A decrease in the net financial resources of the City due to the acquisition of goods and services.

Expenses: Decreases in net financial resources. Expenses include current operating expenses which require the current or future use of net current assets, debt service, and capital outlays.

Fiscal Year: A 12-month period to which the annual operating budget applies. The City of Balcones Heights has established October 1 through September 30 as its fiscal year.

Franchise Fee: The fee paid by public service businesses for use of City streets, alleys and property in providing their services to the citizens of a community. Services requiring franchises include electricity, telephone, natural gas and cable television.

Fund: A fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objective in accordance with special regulations, restrictions, or limitations.

Fund Balance: The excess of a fund’s revenues over its expenses; sometimes called working capital in enterprise funds. A negative fund balance is often referred to as a deficit.

Fund Type: Any one of seven categories, which all funds are classified in governmental accounting. The seven fund types are: general, special revenue, debt service, capital projects, enterprise, internal service, and trust and agency

General Fund: The fund used to account for all financial resources except those required to be accounted for in another fund. Most basic functions, such as police, fire, and streets are usually located in the general fund.

General Obligation Bonds: A form of debt used to raise funds. In issuing general obligation bonds, the City pledges to levy whatever property tax is needed to repay the bonds for any particular year. Bonds cannot be issued without voter approval and are usually issued with maturities of 15 to 30 years.

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Generally Accepted Accounting Principles (GAAP): Uniform minimum standards and guidelines for financial accounting and reporting. They govern the form and content of the financial statements of an entity. They include not only broad guidelines of general application, but also detailed practices and procedure.

Governmental Accounting Standards Board (GASB): The authoritative accounting and financial reporting standard-setting body for governmental entities.

Grants: A payment of money from one governmental unit to another or from a government to a not for profit. Grants are often earmarked for a specific purpose or program.

Infrastructure: Basic public investments such as streets, storm drainage, water and sewer lines, street lighting, and sidewalks.

Interest & Sinking (I&S): The portion of the overall tax rate that goes to the Debt Service Fund to provide funds for payments on the City’s debt.

Levy: To imposed taxes, special assessments, or service charges for the support of City services.

Liabilities: Debt or other legal obligations arising out of transactions in the past which must be liquidated, renewed, or refunded at some future date.

Line Item Budget: A format for budgeting in which departmental outlays are grouped according the items that will be purchased, one item or groups of items on each line of the budget.

Maintenance & Operations (M&O): The portion of the overall tax rate that goes to the General Fund to sustain City operations.

Modified Accrual Basis: One method of accounting for revenues and expenses. Under this basis, revenues are recognized when they become measurable and available to finance expenditures within the current period. Expenditures are recognized when the related fund liability is incurred.

Operating Budget: Plans of current expenditures and the proposed means of financing them. The annual operating budget is the primary means by which most of the financing, acquisition, spending, and service delivery activities of the city are controlled.

Operating Expenses: The cost of personnel, materials and equipment required for a department to function.

Ordinance: A formal legislative enactment by the governing body of municipality. Revenue-raising measures, such as the imposition of taxes, special assessments and service charge, universally require ordinances.

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Position: A full-time employee working at least 40 hours per week. For example, an activity requiring three full-time and one part-time employees would have 3.5 positions.

Proprietary Fund: A fund used to account for business-type activities such as activities supported, at least in part, by fees or charges.

Public Hearing: The portions of open meetings held to present evidence and provide information on both sides of an issue.

Reserved Fund Balance: That portion of a fund’s fund balance that is not available for appropriation because they have been legally committed to some future use.

Revenues: All amounts of money received by a government from external sources.

Rollback Tax Rate: The rollback rate is determined by multiplying last year’s maintenance and operations rate by 1.035 (3.5%). Exceeding the rollback rate allows citizens to petition the City to hold an election that would roll back the tax rate back down to the rollback rate.

Special Revenue Fund: A fund used to account for the proceeds of specific revenue sources that are legally restricted to specified purposes.

Strategic Plan: A document used to communicate the goals on an organization and the actions needed to achieve them.

Taxes: Compulsory charges levied by a government for the purpose of financing services performed for the common benefit.

Tax Levy. Total revenues to be raised by ad valorem taxes for expenditures of general operating expenditures and debt service payments.

Tax Rate: A percentage applied to all taxable property to raise general revenues. It is derived by dividing the total tax levy by the taxable net property valuation.

Tax Roll: The official list showing the amount of taxes levied against each taxpayer or parcel of property, prepared and authenticated in proper form to warrant the collecting officers to proceed with the enforcement of the tax.

Texas Municipal Retirement System (TMRS): A statewide retirement system that provides retirement, disability and death benefits for employees of participating Texas cities.

Transfer: The movement of monies from one activity, department, or account to another. This includes budgetary funds or movement of assets. Also known as interfund transfers.

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136

ATTACHMENTS

Documents

“This budget will raise more total property taxes than last year’s · 2019. 9. 27. · 1 “This budget will raise more total property taxes than last year’s budget by $54,143