2020- 2021Proposed Annual Budget & Program of Services

September 17, 2020

Mark Millar

Mayor

Jason White

Councilmember

Place 2

Cheryl Cohagan

Councilmember

Place 4

David Long

Councilmember

Place 5

Spencer Marks

Councilmember

Place 3

Larry Peters

Mayor Pro-Tem

Place 1

Rick Chaffin………...City ManagerDetra Gaines ………City SecretaryDavid Gallagher…..Fire ChiefDanny Jones………..Police Chief

Vision

Gunter is a unique community exemplified by a commitment to the preservation of its history, a high quality of life,a vibrant business community, and environmental sensitivity.

We are a city steeped in a rich historical past through which we have emerged as a vital, community committed toexcellence, innovation, and sound fiscal policies. Our neighborhoods are safe, healthy, and as unique as theindividuals who inhabit them.

Mission

We believe the City’s greatest asset is our people and we welcome the involvement of all those who live and work inthe City of Gunter to partner with us in making this community one of excellence.

We are committed to preserving the unique character, historical and rural fabric, and environmental beauty thatdefines Gunter to its residents. We will accomplish this through the Values of Service, Fiscally Responsible

Municipal Services, Integrity, Positive Solutions, and Cooperation.

Strategies

Quality of Life – continuous improvement in promoting citizen safety, environmental integrity, economicopportunity and managed growth

Customer Service – serving those who choose to live, work or visit in Gunter with a high quality of services

Equity and Justice – promoting civility, tolerance and celebration of its diversity and demographics

Fiscal Responsibility – fostering wise use of public resources, values for taxes paid and City employeeaccountability

Community Identity – exploiting Gunter’s unique advantages and facilitating the community resources toachieve shared goals

Organizational Development

Community and Economic Development

Communications and Marketing

Downtown Gunter

Strategic Focus Areas

Budget Survey Results

1. Top Three to Five things Gunter does well.

▪ Working together to accomplish goals

▪ On same page – generally same goals

▪ Solve problems

▪ Water and Wastewater services

▪ Police and Fire

▪ Schools/ISD

▪ City Manager and Staff

Budget Survey Results

2. Top three to five things Gunter should improve.▪ Streets/roads

▪ Downtown plan/revitalization

▪ Image and transparency

▪ Infrastructure

▪ Promote/recruit businesses

▪ Invest more in parks, social/special events

▪ City officials meet regularly with citizens, so citizens can get to know elected officials; EX: coffee with Mayor, donuts at dawn, etc

▪ Future planning

▪ New city facilities; city hall, police, fire, library, etc

Budget Survey Results

3. Top three to five things in the upcoming budget.▪ Roads

▪ Downtown plan

▪ Training

▪ Increased park budget

▪ Roadway impact fees

▪ Sewer lines

▪ Parks updated

CITY MANAGER

ADMINISTRATION

City Secretary

Human Resources

Information Technology

Courts

Utility Billing

Purchasing

Communications and Marketing

FINANCE

Strategic Planning and

Budgeting

Risk Management

Revenue Collections

Accounts Payable

COMMUNITY DEVELOPMENT AND

PLANNING

Short Range Planning

Long Range Planning

Permitting

Building Inspections

Engineering

GIS

PUBLIC WORKS

Water/Waste Water

Streets

Parks

Drainage

POLICE

Patrol

Investigations

Animal Control

Code Enforcement

Traffic

FIRE

Volunteer

Operations

EMS

Fire Marshall

Emergency Management

Types of Funds

GOVERNMENTAL FUNDS

▪ General fund ▪ Special revenue funds ▪ Debt service funds▪ Capital project funds

PROPRIETARY FUNDS

▪ Enterprise funds▪ Internal service funds

FIDUCIARY FUNDS

▪ Trust funds (pension and other employee benefit, investment, private purpose) ▪ Agency funds

Governmental Funds

General Fund

Debt Service Fund

TIRZ

Fund

Street Maintenance

Fund

Governmental Funds

Proprietary Funds

Water & Sewer

Fund

Solid Waste Fund

General Fund: The General Fund is the principal fund of the City. The General Fund accounts are for the normal recurring

operating activities of the City (i.e. public safety, fire services, neighborhood and development services, municipal courts and

general government). Principally, these activities are funded by user fees, property, sales, and franchise taxes.

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 as net current assets. Expenditures are generally

recognized under the modified accrual basis of accounting when the related liability is incurred.

Enterprise Fund: The Enterprise Fund is used to account for operations that are financed and operated in a manner similar to a

business. Accounting records for proprietary fund types are maintained on an accrual basis, whereby revenues are recognized when

earned and expenses are recognized when incurred. Budget for the Enterprise Fund is prepared on a modified accrual basis.

Debt Service Funds: Debt Service Funds account for the payment of long-term principal and interest, as well as, the accumulation

of money for the repayment of debt payable in installments. For the General Debt Service Fund, the revenue sources are general

taxes, 4A and 4B contributions, and transfers in from the Tax Increment Financing (TIF) District #1 Fund. Accounting records and

budgeting for the Debt Service Fund is maintained on the modified accrual basis.

Capital Project Funds: The Capital Project Funds are used to account for the construction of major capital projects. The City has

three Capital Project Funds: Transportation Construction Fund, Utility Construction Fund and Park Construction Fund. The City

has undertaken a major prioritization process for its Capital Improvements Program (CIP) projects and this budget reflects that

prioritization. Accounting records and budgeting for the Capital Project Funds are maintained on the modified accrual basis.

Special Revenue Fund:

Fund Descriptions

Balanced Budget: Revenues > = Operating

Expenditures

General Fund Reserves for One Time Capital

Only

Maintain or Enhance Level of Service

Ensure Revenues/Expenditures

are Allocated to Appropriate Fund

Establish Fund Balance Policy for GF and UF

Enterprise Funds are Self-Sustaining

Budget Principles for FY 2021

Cost AllocationJack the Citizen

Jack the TaxpayerJack the Customer

Jack the

Taxpayer

Police

Fire

Administration

ParksJack the

Customer

Water

Solid Waste

Electric

Wastewater

▪ The 2020-2021 DRAFT Proposed Budget totals $2,790,813 or a decrease of $108,961 (3.8%) from last year

▪ General Fund $1,429,173▪ Debt Service Fund 280,763▪ TIRZ Fund TBD▪ Street Maint. Fund 96,750▪ Solid Waste Fund 128,635▪ Water & Sewer Fund 855,492

▪ TOTAL ALL FUNDS $2,790,813

Budget Summary

▪ No Water & Sewer Rate Increase proposed

▪ No Solid Waste Rate Increase proposed

▪ Propose a tax rate increase from .615 to .693

Why is a Property Tax Rate Increase Proposed?

1. ½ cent sales tax no longer offsets property taxes.

▪ By vote of the citizens last fall, the ½ cent sales tax is now dedicated to the Street Maintenance Fund ($129,000)

▪ The ½ cent sales tax generates - $129,000

▪ This is equivalent to 9.08 cents in property tax

Why is a Property Tax Rate Increase Proposed? (continued)

2. Taxable Property Tax Valuation has decreased

▪ 2020 – taxable valuation is $127,763,803▪ 2019 - taxable valuation was $167,165,163

▪ Tax Ceiling for Seniors (65) is $21,963,596 (an increase of $3,891,212 or 21.53% over last year). This is equivalent to 3.7 cents on property tax rate.

▪ Bridges TIRZ values of $56,573,217 was removed from General Fund property value taxable for debt and operations.

▪ 2020 - One cent in property tax rate generates $14,204 in revenue.▪ 2019- One cent in property tax rate generated $18,027 in revenue.

Budget Highlights

▪ Dedicated Street Maintenance Fund - $129,000

▪ Cost allocation from water/sewer fund was NOT achieved. General fund is subsidizing water/sewer fund approximately $150,000.

▪ Maintenance of existing operations

▪ Sales tax revenues have increased from $473,000 to a projected $517,000, a 9.5% increase.

▪ Contract services reduced from $40,000 to $17,000 (contract city manager)

▪ Education and Training increased from $13,000 to $19,300 in the General Fund

▪ A certification pay program is proposed to be implemented in police, fire and city secretary’s office. This is standard for the vast majority of cities.

Budget Highlights (Continued)

▪ The Assistant City Manager position is not funded this year

▪ $30,000 in Community Development for professional services.

▪ A proposed cost of living increase:▪ 3% for police and fire chief▪ 5% for all other employees

▪ $30,000 general fund ▪ $15,084 water/sewer fund

Next Steps

Tuesday, September 29, 2020

▪ Public Hearing on Tax Rate▪ Adopt 2020-2021 Annual Budget