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2022-2023 Adopted BudgetOFFICIAL BUDGET FISCAL YEAR – Local Government Code Sec. 102.007 requires that the following information be included as a cover page for the City’s annual budget: This budget will raise more total property taxes than last year's budget by $689,440 (12.13%), and of that amount $192,373 is tax revenue to be raised from new property added to the tax roll this year. Total debt obligation for the City of Sanger secured by property taxes: $1,726,995 (principal and scheduled interest payments) CITY OF SANGER, TEXAS ANNUAL BUDGET OCTOBER 1, 2022 – SEPTEMBER 30, 2023 SUBMITTED TO THE MAYOR AND CITY COUNCIL SEPTEMBER 19, 2022 THOMAS MUIR Mayor MARISSA BARRETT Council Member, Place 1 GARY BILYEU Council Member, Place 2 DENNIS DILLON Council Member, Place 3 ALLEN CHICK Council Member, Place 4 VICTOR GANN Council Member, Place 5 JOHN NOBLITT City Manager CLAYTON GRAY Finance Director The City of Sanger, Texas Page 1 Official Budget 2022-23 DISTINGUISHED BUDGET PRESENTATION AWARD Government Finance Officers Association of the United States and Canada (GFOA) presented the Distinguished Budget Presentation Award to the City of Sanger, Texas, for its Annual Budget for the fiscal year beginning October 1, 2021. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. The City of Sanger, Texas Page 2 Official Budget 2022-23 TABLE OF CONTENTS INTRODUCTION Budget Message ................................................................................................................ 8 Strategic Planning for Results .......................................................................................... 18 Strategic Goals ................................................................................................................. 19 Sanger 2040 Comprehensive Plan ................................................................................... 20 Organization Chart ........................................................................................................... 21 Authorized Personnel ....................................................................................................... 22 Budget Calendar .............................................................................................................. 23 The Budget Process ......................................................................................................... 24 List of Funds ..................................................................................................................... 26 Fund Relationship with Functional Areas ......................................................................... 27 About Sanger ................................................................................................................... 26 BUDGET SUMMARY 2022-2023 Budget at a Glance ......................................................................................... 34 2022-2023 Budget by Fund .............................................................................................. 36 Revenues, Expenditures & Changes in Fund Balance ..................................................... 38 Combined Funds Budget Summary (Detailed) ................................................................. 42 Combined Funds Budget Summary.................................................................................. 44 FUNDS IN DETAIL GENERAL FUND Overview .......................................................................................................................... 46 Budget Summary .............................................................................................................. 47 Revenues ......................................................................................................................... 49 Departmental Budgets Police .................................................................................................................... 54 Animal Control ..................................................................................................... 56 Fire ........................................................................................................................ 58 Municipal Court ..................................................................................................... 60 Development Services .......................................................................................... 62 Streets .................................................................................................................. 64 Parks ..................................................................................................................... 66 Library ................................................................................................................... 68 Solid Waste ........................................................................................................... 70 Transfers to Other Funds ...................................................................................... 72 DEBT SERVICE FUND Overview .......................................................................................................................... 74 Budget Summary .............................................................................................................. 75 Expenditures .................................................................................................................... 77 Debt Service Requirements .............................................................................................. 78 The City of Sanger, Texas Page 3 Official Budget 2022-23 TABLE OF CONTENTS (continued) ENTERPRISE FUND Overview .......................................................................................................................... 80 Budget Summary .............................................................................................................. 81 Revenues ......................................................................................................................... 83 Departmental Budgets Water .................................................................................................................... 84 Waste Water ......................................................................................................... 86 Electric .................................................................................................................. 88 Transfers to Other Funds ...................................................................................... 90 ENTERPRISE DEBT SERVICE FUND Overview .......................................................................................................................... 92 Budget Summary .............................................................................................................. 93 Expenditures .................................................................................................................... 95 Debt Service Requirements .............................................................................................. 96 INTERNAL SERVICE FUND Overview .......................................................................................................................... 96 Budget Summary .............................................................................................................. 97 Departmental Budgets City Council ......................................................................................................... 102 Administration ..................................................................................................... 104 City Secretary ..................................................................................................... 106 Legal ................................................................................................................... 108 Public Works Administration ............................................................................... 110 Finance ............................................................................................................... 112 Human Resources .............................................................................................. 114 Engineering ......................................................................................................... 116 Marketing ............................................................................................................ 118 Fleet Services ..................................................................................................... 120 Facilities .............................................................................................................. 121 Non-Departmental ............................................................................................... 124 4A CORPORATION FUND Overview ........................................................................................................................ 126 Budget Summary ............................................................................................................ 127 Revenues ....................................................................................................................... 129 Departmental Budget Economic Development ...................................................................................... 130 4B CORPORATION FUND Overview ........................................................................................................................ 132 Budget Summary ............................................................................................................ 133 The City of Sanger, Texas Page 4 Official Budget 2022-23 TABLE OF CONTENTS (continued) 4B CORPORATION FUND Revenues ....................................................................................................................... 135 Departmental Budget Economic Development Expenditures ................................................................ 136 SPECIAL REVENUE FUNDS Overview ........................................................................................................................ 138 Budget Summary ............................................................................................................ 139 Combined Schedule of Special Revenue Funds ............................................................ 140 Hotel Occupancy Tax Fund ............................................................................................ 141 General Storm Recovery Fund ....................................................................................... 141 Electric Storm Recovery Fund ........................................................................................ 142 Beautification Fund ......................................................................................................... 142 Library Restricted Fund .................................................................................................. 143 Parkland Dedication Fund .............................................................................................. 143 Roadway Impact Fee Fund ............................................................................................ 144 Court Security Fund........................................................................................................ 144 Court Technology Fund .................................................................................................. 145 Child Safety Fund ........................................................................................................... 145 Police Donations Fund ................................................................................................... 146 Fire Donations Fund ....................................................................................................... 146 Park Donations Fund ...................................................................................................... 147 Library Donations Fund .................................................................................................. 147 CAPITAL PROJECTS AND CAPITAL IMPROVEMENT PLAN Overview ........................................................................................................................ 150 Budget Summary ............................................................................................................ 151 Capital Projects Fund ..................................................................................................... 152 Enterprise Capital Projects Fund .................................................................................... 153 Capital Improvement Plan .............................................................................................. 154 Capital Projects Fund Five Year Summary ..................................................................... 158 Enterprise Capital Projects Five Year Summary ............................................................ 160 APPENDIX General Fund Five Year Financial Projection ................................................................. 164 Approved Departmental Capital Equipment Requests ................................................... 166 Financial Management Policy ......................................................................................... 188 Investment Policy ........................................................................................................... 195 Debt Service Schedules ................................................................................................. 200 S&P Global Rating Report .............................................................................................. 204 2021 Tax Rate Calculation Worksheet ........................................................................... 212 Glossary of Terms .......................................................................................................... 223 The City of Sanger, Texas Page 5 Official Budget 2022-23 The City of Sanger, Texas Page 6 Official Budget 2022-23 IN T R O D UC T I O N The City of Sanger, Texas Page 7 Official Budget 2022-23 BUDGET MESSAGE September 19, 2022 Introduction We are pleased to present the FY 2022-2023 Budget for the City of Sanger. The city’s budget is the most important working policy and planning tool used by the City Council and staff to provide quality services to the residents of Sanger as established by City Council. Municipal budgets are always challenging. Resources are limited and it makes it difficult to address every problem and every concern. The strength of the economy is reflected in our General Fund revenues. However, budget planning should always be prudent to take into account current market conditions and future challenges during the process. The City of Sanger is still experiencing a period of accelerated growth. Permit numbers for new residential and commercial projects continue to increase at a consistent pace. Additionally, the City has experienced a record number of requests for large residential subdivisions and mixed-use projects. The City will continue to balance this growth with the quality and levels of service our residents expect; while ensuring the sustainability of our community and addressing future needs. The staff has prioritized that all of this be achieved within the framework of fiscal responsibility. The intent of this budget message is to explain both the structure of the budget and the atmosphere in which it was created. Following the same format as previous years, the budget message outlines the highlights of this year’s budget. It also discusses the city’s Strengths, Weaknesses, Opportunities, and Threats (SWOT analysis) for the upcoming year. Finally, it discusses the structure of the budget, where revenues come from, and where the money goes. The budget message should provide the reader insight into municipal government finances and make the raw numbers more understandable. Current Conditions During the past 12 months, the city has had to adapt and adjust to changes in management, inflation rates, and supply chain shortages. Inflation rates continue to rise to historic levels and are projected to remain high at least through the first quarter of 2023. This tends to not only impact the City’s purchasing power but also affect lending rates. Supply chain issues will continue to impact project timelines and costs through 2023. The housing market is still strong, and demand continues to be high due to the area’s housing shortage. Additional residents add to several revenue streams but also increase the need for services, which is often times offsetting, negating any revenue gains. Sales tax in FY 2021-2022 should end the year above projections. For FY 2022-2023 we are projecting General Fund Sales Tax Revenues of $1,500,000. The City of Sanger, Texas Page 8 Official Budget 2022-23 New residential and commercial construction and increased valuations are reflected in an anticipated increase in the property tax base. As always, we take a conservative approach to budgeting revenues. We continue to work on the Capital projects scheduled for this year, and some of these will carry over into next year. In FY 2018-19 we started the engineering work as it relates to relocating utilities due to the widening of FM 455 (TxDOT project) and this project still continues in FY 2022 - 2023. The IH-35 Expansion project has entered the engineering phase and the relocation of utilities will begin in FY 2022-2023. An advanced metering system installation will also be complete in the upcoming fiscal cycle. FY 2021- 2022 Budget Highlights Capital Equipment To request departmental capital expenditures, city department directors will complete a request form for each requested expenditure. During individual and group budget meetings, these requests are reviewed along with supporting documentation and options to the request. All capital requests are reviewed to determine if they are in sync with City Council goals and the city’s strategic plan. The departmental capital request forms for these items are included in the Appendix of this document. The City of Sanger, Texas Page 9 Official Budget 2022-23 The proposed budget includes the following Capital Equipment. Internal Service Fund Some departments have responsibilities in both the General Fund and Enterprise Fund. To both increase transparency and assist operational efficiency, we have placed those departments in an Internal Service Fund (ISF). This allows us to present a single budget for each department better reflecting that department’s true budget. It also streamlines the purchasing process. For accounting purposes, these departments are allocated to the funds at year end so that each fund’s true cost can be reflected in the audit. Personnel Due to the City’s challenges with recruitment and retention, I am proposing a substantial change in our compensation package. First, we are adjusting pay bands for all staff based on market research of wages in comparable communities. The staff below the department head level will be moved to the new base wage for their band or 5% if they are already within the band. Second, I am proposing a move from the 6% deposit rate on retirement be increased to 7% in line with most of our market cities’ rates. Lastly, I am recommending that 6% be allocated for employee merit increases this year. The new review system uses a weighted measure in which this percentage will be awarded at 2%. 4%, and 6% levels depending upon performance. In the current economic climate, it is imperative that we stay competitive on wages and benefits to keep from continually losing good employees to other cities. This fiscal year we are proposing to add several new positions that are important to our operations as the city continues to grow: one (1) Police Officer and one (1) Clerk/Property Room Technician in the Police Department; one (1) Assistant Fire Chief and three (3) Full-Time Firefighter/Paramedics in the Fire Department; one (1) Maintenance Worker in the Department Category Description Amount Police Capital Improvements Facilities Renovation 11,500$ Police Computer Hardware Laserfiche 12,916$ Police Equipment Electronic Ticket Writers 90,103$ Police Public Safety Equipment JTC Claw Go Slings 6,175$ Police Public Safety Equipment Evidence Lockers 6,742$ Police Vehicles New Patrol Vehicle 67,695$ Fire Equipment Generator 34,164$ Fire Equipment Battery Operated Extraction Equipment 42,500$ Fire Vehicles Ambulance 300,000$ Fire Vehicles Type I Fire Engine 925,000$ Streets Equipment Trailer 11,000$ Streets Equipment Combination Drum Loader 52,886$ Streets Equipment Tractor Loader 80,118$ Streets Vehicles Pickup Truck 49,131$ Parks Capital Improvements New Park Plan 18,000$ Water Vehicles Pickup 49,132$ Electric Equipment SCADA System 200,000$ Facilities Capital Improvements Public Works Conference Room Remodel 15,390$ Facilities Capital Improvements Exterior Painting 22,000$ Facilities Capital Improvements City Hall Conference Room Remodel 22,815$ Facilities Capital Improvements Public Works Building New Roof 26,640$ The City of Sanger, Texas Page 10 Official Budget 2022-23 Street Department; one (1) Grounds Maintenance Worker in the Parks Department; and two (2) Utility Workers in the Water Department. Operating Expenses We do not directly control many of our operating expenses like health care costs and the price of fuel. Absorbing these costs can leave very little extra money left for the expansion of services. Any proposed increases in operating costs must be accompanied by written justification from the department head. All of the department heads have done a good job in their proposed budgets of keeping operating expenses in check. Capital Projects This year capital projects continuing include work related to the relocation of utilities along FM 455, work related to the relocation of utilities along I-35, the rehabilitation of several streets in the city as well as determining the feasibility of the stream restoration project. New projects slated to begin during the year include design of a lift station at Railroad Avenue; replacement of a waste water line on Keaton Road, and improvements to the electrical distribution system. A five-year Capital Projects Summary is included in this document. Reserve In 2014 the City reached its goal of increasing emergency reserves to $2,000,000. In addition to these reserves, the city has two funds that account for reserves earmarked specifically for recovery from storm damage. The Electric Storm Recovery Fund has approximately $1.2M in reserves set aside to repair electric system damage from storms. The General Storm Recovery was established in the 2020-2021 year to set aside designated monies for storm recovery expenses of the General Fund, such as repairing damages to streets or parks. This Fund currently has a balance of $700,000 For 2022-2023, an additional $300,000 will be transferred to the General Storm Recovery Fund. SWOT Analysis A SWOT analysis is a look at the city’s Strengths, Weaknesses, Opportunities and Threats (SWOT). It is intended to give the reader a strategic perspective of current and future issues. These issues have an effect on both revenues and expenditures. $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 2017 2018 2019 2020 2021 Contingency Reserve Funds Five Year History General Fund Enterprise Fund Electric Storm Recovery General Storm Recovery The City of Sanger, Texas Page 11 Official Budget 2022-23 Strengths The local economy remains strong as indicated by the steady increase in construction. The unemployment rate has adjusted in Denton County and remains lower than the state average. The area continues to see a large influx of new residents each year and this trend is expected to continue for the foreseeable future. Sanger’s location is one of its greatest strengths and something we continue to aggressively market. Rail and Interstate access and developable industrial land also top the list of Sanger’s strengths. Commercial interest in the industrial property has picked up in the last year. We continue to proactively recruit retailers and other business. Another asset is the quality of life enjoyed by the citizens of Sanger. Sanger residents have access to all of the amenities of the metroplex while enjoying life in a quiet, small-town atmosphere. Access to Lake Ray Roberts is also a quality- of-life asset and an economic boost for Sanger. The sports park has been a tremendous quality of life improvement for our citizens as well. It is well used and has been well received by the citizens. It has also been a tremendous advertising tool for Sanger. In 2014, we added a splash park to replace our obsolete swimming pool, another quality- of-life improvement for our citizens to enjoy. In 2018 the 4B board funding allowed the installation of shade structures to cover the bleachers at Porter Park. In 2019 the Board provided grant funding for a community project that involved building an event pavilion at Porter Park. Sanger Electric is another strength enjoyed by the City of Sanger. This revenue not only supports the Enterprise Fund but the Storm Recovery Fund as well. Sanger also enjoys having both a 4A and 4B economic development board. Each of these boards generates approximately $500,000 annually in revenue. These monies have allowed Sanger to compete economically and make the quality-of-life improvements as mentioned above. 4B funds are currently being used to pay for the debt service on the Porter Sports Complex and other projects. Emergency reserve funds are also a strength. Eventually, every city faces some type of disaster. Be it a tornado, flood, ice storm or another disaster, two things are certain: the city will need money for the recovery efforts, and traditional revenue sources will be negatively impacted at the same time. Having these funds on hand will help us recover as quickly as possible without destroying us financially. Weaknesses To a large extent, cities in Texas are dependent on property taxes to fund their general revenue operations. In Sanger, approximately 50% of general fund operating revenues come from property tax. The weakness here is that over half of the market value of property in Sanger comes from residential improvements. Demand for service is much higher from residential properties than from commercial properties. This means that, when averaged out, residences rarely pay the full amount in property tax for the services they receive from the city. Commercial properties, however, typically generate more property tax than they require in services. Growing our commercial property tax base is essential to providing quality service to our customers while limiting the property tax burden on our residents. Recruiting more industrial and commercial development continues to be a priority. Another weakness is median home prices in Sanger. High demand for homes and a short supply of available properties continue raising average home prices across the state. The most recent report supplied by the Denton County Appraisal District reveals that the average home value in Denton County is $458,262. The same report values the average home in Sanger at $256,487. The lower values result in a much lower tax income per property than in other areas. We need to diversify our housing mix to include houses in higher price ranges that generate higher property taxes. This will also help alleviate the tax burden on families with lower incomes and those with fixed incomes. The The City of Sanger, Texas Page 12 Official Budget 2022-23 Council has established benchmarks that are helping to alleviate this weakness. As a result, we are seeing our average valuation increase. We will continue to proactively encourage this trend at the staff and Council levels to eliminate this weakness. Another weakness that stifles growth is the fact that as the city limit has expanded, we added areas that are not in our water supply CCN. Because the water supply corporation that serves these areas does not provide fire protection, development is severely limited. In recent years, legislation has alleviated this to some extent by providing a mechanism to transfer the CCN. However, the issue still remains a hindrance to growth due to the costs associated with the transfer. The increase in requests for special districts, such as Municipal Utility Districts (MUDs), continues to flood our region. The ease at which these districts can be created has reduced the City’s leverage for mutually beneficial development agreements that would bring many of these districts into the City’s taxing jurisdiction. Instead, these districts tend to fall outside our municipal boundaries but require high expenditure services, primarily fire and emergency medical services, subsidized by Sanger’s General Fund. Opportunities Industrial Development Sanger is uniquely located to service both North Texas and Southern Oklahoma and has hundreds of acres of developable land with both interstate highway and rail access. Sanger must capitalize on these industrial prospects and aggressively market its strengths. To do this will require additional investment in infrastructure to ensure that industrial sites are “shovel ready” when companies are ready to move. To that end, the city has extended water and wastewater lines to potential industrial sites along I-35 to entice industrial development. Residential Development The city has issued 30 single-family residential permits so far this year. Several new phases of existing developments are underway or have residential lots that have just been released for construction. Staff and Council continue to encourage a greater mix in housing and we are still seeing those efforts pay off. Homes in higher price ranges generate higher property taxes but typically require the same amount of services as homes of lesser appraised value. This allows the city to provide services at a lower tax rate, saving everyone on their property taxes. The average home value in Sanger is approximately $256,487. At that value, a home will generate approximately $1,625 in city property tax each year. In comparison, a $350,000 home generates approximately $2,218 at the same tax rate. Simply put, higher-priced homes translate into lower property taxes and increased services for everyone. Commercial Development Commercial development continues to progress at a steady pace. Sanger is experiencing some commercial growth and should see more as the IH-35 and 455 expansion projects begin and work towards final completion. The good news is that Sanger has plenty of developable commercial property. We have invested heavily in bringing utilities to these sites so that they are ready for development. The city must continue to promote commercial development, especially development that generates both property and sales tax. Threats High inflation rates and continued supply chain shortages will be our biggest threat this fiscal year. At this time, it is very difficult to project the long-term impacts on the economy. It is imperative that we monitor it closely and stay ahead of any economic downturn. The City of Sanger, Texas Page 13 Official Budget 2022-23 One threat that bears close watch is the increased cost of health insurance. We typically do not know until late in the budget process if we will face an increase this year or not but an increase is likely. Another significant threat is Senate Bill 2, which makes numerous changes to the process for adopting property tax rates. The bill lowered the city property tax rollback rate from 8.0% to 3.5% with an automatic election required to exceed that percentage. The bill does provide for some concessions such as a $500,000 levy increase threshold for cities under 30,000 population. The provisions of this Bill will continue to impact revenues in the future. Understanding the Municipal Budget This section is intended to give the reader an overview of how the budget works. Municipal budgets are governed by Federal and State Statutes and local regulations. The intent here is not to explain every requirement for municipal budgeting but to discuss generally how the budget works. The city operates six major funds. They are the General Fund, Enterprise Fund, 4A Economic Development Fund, 4B Economic Development Fund, Debt Service Funds and Capital Improvement Funds. These funds are explained in detail below. The city’s fiscal year runs from October 1st through September 30th each year. The budget process begins in the spring of each year internally. Budget workshops are held during the summer of each year with the city Council and economic development boards. Public hearings are also held on the budget. The budget must be approved and next year’s property tax rate set before October 1st each year. One important point to make is that revenue numbers in the budget are estimates of what we think will be collected next year. Projected revenues are not sitting in the city’s bank account on October 1st waiting to be used. If revenues do not meet projections, then expenditures must be curtailed to meet those shortfalls. If revenues exceed projections, then excess fund balances at the end of the year can be used to build up reserves, do capital projects or supplant next year’s revenues. General Fund The General Fund is the fund used to finance the operations of general government. The General Fund includes Public Safety, a portion of Public Works, Community Services, Sanitation, and a portion of Administrative and Support Services. Public Safety includes Police, Municipal Court, Animal Control, Code Enforcement, Fire and Ambulance departments. Sanitation is solid waste, which is contracted out to a third-party operator. Community Services include Development Services and the Library. The Park and Recreation and Street departments are shown on their own to more clearly show the portion of the general fund spent on these departments. Transfer to Other Funds include transfer to the Internal Service Fund as well as the Capital Improvement Projects Fund. General Fund revenues come from a myriad of sources Including property tax, sales tax, court fees, Fire and EMS revenues and franchise fees. By far, the largest revenue stream is property tax. Due to growth and appreciation of property values, Sanger has enjoyed increasing property taxes over the last twelve years. The City of Sanger, Texas Page 14 Official Budget 2022-23 Enterprise Fund The Enterprise Fund is made up of utility departments including Water, Wastewater, and Electric. Expenditures include daily operations of the utilities, capital improvements, debt service on bonds for capital improvements as well as transfers to the Internal Service Fund and the Electric Storm Recovery Fund. One increase we have to absorb in the electric utility is the increase in transmission and congestion costs we pay. These costs are regulated by the Electric Reliability Council of Texas (ERCOT) and are used partially to help pay for new transmission lines from West Texas to other parts of the State. The city engaged NewGen Strategies & Solutions, an independent consulting firm, several years ago to make recommendations for rates for the next five years. On May 21, 2018, NewGen presented their findings and recommendations to City Council. Council responded to the recommendations by making adjustments to utility billing rates and plans to follow NewGen’s recommendations. For the budget year, an increase was made to waste water rates in accordance with the recommendations. This year’s budget includes funding to have the rate study updated. Internal Service Fund The Internal Service Fund includes departments with responsibilities in both the General and Enterprise Funds. The Internal Service Fund allows us to show the department's entire budget in one place, making it more transparent and easier to manage. The departments include Non-Departmental costs, Mayor and Council, Administration, Public Works, Engineering, Finance, Facilities Maintenance and Fleet Services. Instead of each department having a separate budget for each fund, those departments have a single budget in the Internal Service Fund. This makes it easier for the reader to see the true cost of the department without having to look in two different places. It also streamlines cost allocation internally. Economic Development Funds Under Texas Law, certain municipal governments can establish Economic Development Corporations for the purposes of attracting economic development and other limited purposes. These corporations are overseen by boards appointed by the City Council. Sanger is one of the few Cities that has both a 4A and 4B Economic Development Corporation. The City of Sanger, Texas Page 15 Official Budget 2022-23 Both of these corporations receive revenues from a separate ½ cent sales tax. This sales tax generates around $500,000 each year for each of the corporations. Thanks to these two boards the City of Sanger has been able to provide economic development incentives and make park and recreation improvements that it simply could not afford otherwise. While these funds can only be used for limited purposes, having them frees up revenues for other purposes. Debt Service Funds and Capital Projects Funds Long term, property tax funded debt is paid from the Debt Service Fund. Likewise, the Enterprise Debt Service Fund accounts for long term debut supported by utility operations. The Capital Projects Funds are where expenditures on Capital Projects are paid. (There are separate funds for General Capital Projects and Enterprise Capital Projects.) Both debt service and capital projects funds serve as internal service funds used for accounting purposes. Hotel/Motel Tax Fund The expenditure of hotel occupancy tax (HOT) funds tightly regulated by state law. To ensure that these funds are spent appropriately, they are placed in a separate fund and not commingled with the General Fund. The city also provides up to $14,000 a year in HOT taxes to the Sanger Chamber of Commerce for marketing. Strategic Planning The City’s Comprehensive Plan contains several strategic goals that guide budgeting through a program of strategically planning for results. Each year, these goals help determine items included in the annual budget. Each Department identified in this budget references the specific comprehensive plan goals that are supported by the operations of that department. A few of these are discussed below for the current year. Street Network - Several years ago, the City developed a multi-year plan to improve aged streets in the City. Phase V of this plan is included in the budget, providing $340,000 for street improvements. Park System – The 4B Fund budget includes $349,000 for renovations to Porter Park, $65,000 for concept plans for a new downtown park, and $65,000 for a miracle field. In the General Fund, the Parks Department includes $18,000 for concept plans for future park expansion. Country Atmosphere – The budgets of several departments, including Police, Animal Control, Fire, Parks and Administration incorporate the goal of maintaining and improving upon the existing county living atmosphere of Sanger. Looking Toward the Future The Dallas-Fort Worth area continues to add new residents each year. According to the U.S. Census Bureau population estimates, six of the US counties with the largest population growth are located in Texas. We believe this makes Sanger a prime candidate for growth as the DFW area continues to attract new businesses and residents. The northern cities of the DFW area continue to see much growth, and many people are choosing to live in a northern suburb and drive south for work. Easy access via I-35 make Sanger an excellent choice for people looking to live in a smaller community. Sanger has grown from a railroad stop established in the 1880’s into a thriving community that offers residents the best of both worlds: big city opportunities combined with small-town charm. Sanger’s population has doubled in the past 20 years, growing from 4,534 in 2000 to an estimated 9,470 in 2021. The City of Sanger, Texas Page 16 Official Budget 2022-23 A new Holiday Inn Express opened in 2020 and is seeing business grow as travel in the US picks up after the slump induced by COVID-19. Sanger continues to be an attracting destination for residential and commercial developers alike. The combination of the population growth of the DFW area, Sanger’s ideal position for commuters who want to live in a smaller community, and new business ventures in Sanger point to a bright future for our city. Conclusion The fiscal condition of the City is strong. The commitment to conservative financial policies has positioned Sanger well for the future. This budget again demonstrates a conservative approach to assist us in remaining financially stable. It reflects our commitment to improving the community where we can by utilizing outlays for additions and improvements to amenities and infrastructure, as well as the maintenance of existing assets. Information on the City’s current and past year budgets, as well as other financial information, is available on the City’s website at https://www.sangertexas.org/page/finance_transparency. I would like to thank Clayton Gray for the work he has done in the preparation of this budget, and for providing the historical data on the funds presented. I would like to thank our department heads. They have done a tremendous job of managing their departments through the immense challenges of the past several years by working as a team to provide our community with the highest level of service. I also want to thank the Mayor and Council for their support and leadership. Staff looks forward to working with you all during the implementation of this budget. Respectfully submitted, John Noblitt City Manager The City of Sanger, Texas Page 17 Official Budget 2022-23 STRATEGIC PLANNING FOR RESULTS STRATEGIC GOALS SANGER 2040 COMPREHENSIVE PLAN CAPITAL IMPROVEMENT PLAN ANNUAL BUDGET GOALS & OBJECTIVES ACTIVITY INDICATORS CITIZEN RELATIONSHIPS INFRASTRUCTURE CITY SERVICES MONTHLY REPORTING GUIDING PURPOSE P U R P O S E The guiding purpose of the municipal government of the City of Sanger is to preserve, protect and enhance the quality of life for our citizens. V I S I O N To give vision to the guiding purpose, the Sanger City Council has adopted strategic goals a (page 21) and the Sanger 2040 Comprehensive Plan (page 22) to guide City operations. P L A N To implement this vision for the city, the Annual Budget and Capital Improvement Plan are developed each year as strategic planning documents. The City’s 2022-2023 Annual Budget and Capital Improvement Plan continue with this strategy. R E S U L T S The effectiveness of any plan is measured by results. The City of Sanger’s desired results are to provide quality services to residents, maintain and improve our infrastructure, and develop positive relationships with our citizens. Departments report activity on performance monthly to assure operations are in step with the City’s organizational goals. The City prepares a Monthly Report, which provides a wealth of detailed and useful information from all City departments to the citizens of Sanger. These reports are posted on the City’s website for 24/7 access. The Report for the month of September 2021 is included in this document. The City of Sanger, Texas Page 18 Official Budget 2022-23 STRATEGIC GOALS Several years ago, the Sanger City Council adopted a plan to provide guidance for the future which included a specific set of goals, which are tangible directives raised by citizens to guide the development of the City. These eight goals are general statements of the community’s desired ultimate physical, social, economic, and environmental status. These strategic goals and strategies set the standard with respect to the community’s desired quality of life. COUNTRY ATMOSPHERE Maintain and improve upon the existing country living atmosphere of Sanger ENCOURAGE BUSINESS Encourage the establishment of new commercial business and the expansion of existing businesses in Sanger PRESERVE HISTORY LAND USE STREET NETWORK JOB DEVELOPMENT QUALITY NEIGHBORHOODS PARK SYSTEM Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities Encourage development and preservation of the Historic Sanger Downtown area Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger Improve Sanger’s street network Encourage job development in Sanger Encourage development of quality single family residential neighborhoods in Sanger The City of Sanger, Texas Page 19 Official Budget 2022-23 SANGER 2040 COMPREHENSIVE PLAN The City worked with a third-party consultant to prepare a comprehensive plan tailored to meet Sanger’s vision and goals over the next 20 to 30 years. Visit https://www.sanger2040plan.com for more details on the Plan. Land Use & Pattern of Development Community Character Economic Development Housing & Neighborhoods Infrastructure Parks & Environment Transportation /Mobility Downtown City Government Community Health Education Resilience & Flexibility The City of Sanger, Texas Page 20 Official Budget 2022-23 ORGANIZATIONAL CHART The City of Sanger, Texas Page 21 Official Budget 2022-23 AUTHORIZED PERSONNEL 2020-2021 2021-2022 2022-23 Police 16.0 18.0 20.0 Animal Control 1.0 1.0 1.0 Fire 34.0 35.0 39.0 Municipal Court 4.0 4.0 4.0 Development Services 6.0 6.0 6.0 Streets 4.0 4.0 5.0 Parks 4.5 4.5 6.4 Recreation 1.0 1.0 0.0 Library 6.0 6.0 6.0 General Fund Totals 76.5 79.5 87.4 Water 6.0 7.0 9.0 Waste Water 3.0 3.0 3.0 Electric 8.0 8.0 8.0 Enterprise Fund Totals 17.0 18.0 20.0 Administration 3.0 5.0 2.0 Public Works Administration 1.0 1.0 2.0 City Secretary 0.0 0.0 1.0 Legal 0.0 0.0 1.0 Finance 6.0 6.0 6.0 Human Resources 0.0 0.0 1.0 Engineering 2.5 0.0 0.0 Marketing 0.0 1.0 1.0 Fleet Services 1.0 0.0 0.0 Facilities 0.0 0.0 0.6 Internal Service Fund Totals 13.5 13.0 14.6 4A Economic Development 1.0 0.5 0.5 4A Fund Totals 1.0 0.5 0.5 4B Economic Development 0.0 0.5 0.5 4B Fund Totals 0.0 0.5 0.5 Total Authorized Personnel 108.0 111.5 123.0 NOTE: Throughout the Budget, detailed position information is presented with each Department Ge n e r a l En t e r p r i s e F u n d T o t a l s In t e r n a l S e r v i c e Fund & Department The following ten positions are new this year:  Police Department – One Police Officer & one Clerk/Property Room Tech  Fire Department – One Assistant Fire Chief and Three Full-Time Firefighter/Paramedics  Streets – One Maintenance Worker  Parks Department – One Grounds Maintenance Worker  Water Department – Two Utility Workers The City of Sanger, Texas Page 22 Official Budget 2022-23 BUDGET CALENDAR Action Monday, March 28, 2022 - Wednesday, March 30, 2022 City Manager and Finance Director meet individually with Directors for mid-year budget review Budget Materials Distributed to Departments, which begin working on a requested budget, goals, and long- range plans. Monday, April 5, 2021 - Thursday, June 30, 2022 Preliminary Budget is Prepared. City Manager works with Directors on goal-setting and long-rand planning for departments and the City as a whole. City Manager, Finance Director and Directors meet to review individual departmental requested budget, discuss long-range financial plans and goal-setting. Preliminary Budget Completed City Council Budget Workshop City Council Budget Workshop Chief Appraiser Certifies Tax Roll Proposed budget submitted to City Council Budget Filed with the City Secretary and Posted on the City's Website Submit No-New-Revenue and Voter-Approval Tax Rates to City Council Publish Notice of Public Hearing on Budget Publish Notice of Public Hearing on Tax Rate Public Hearing on Budget Public Hearing on Tax Rate City Council Vote on Approval of Tax Roll City Council Vote on Adoption of Budget City Council Vote on Levying a Tax Rate Tuesday, September 6, 2022 Tuesday, July 5, 2022 Monday, July 18, 2022 Monday, July 25, 2022 Monday, August 1, 2022 Monday, August 15, 2022 Saturday, August 27, 2022 Sunday, August 28, 2022- Thursday, June 30, 2022 THE CITY OF SANGER, TEXAS BUDGET CALENDAR FY 2022-2023 Date(s) Tuesday, April 5, 2022 Tuesday, May 10, 2022 Departmenl Mid-Year Budget Review Meeting Review of Department Requests for new Budget Preliminary Budget Completed Tax Roll is Certified Proposed Budget Presented to City Council Public Hearings on Budget & Tax Rate Budget and Tax Rate are Adopted The City of Sanger, Texas Page 23 Official Budget 2022-23 THE BUDGET PROCESS The fiscal year of the City of Sanger begins on October 1st and ends on September 30th of the following calendar year. This fiscal year establishes both the budget year and the accounting year. The budget is developed at a departmental level. In March, the Finance Director develops worksheets that detail expenditures for the past four years, year to date balances as of March 31st, and projected totals through the end of the current fiscal year. These worksheets are distributed to individual departments for review and completion. Each department prepares an estimate for their projected totals through the end of the fiscal year and estimates for the upcoming year. For any increases or addition of new items to the budget, departments will document the justification for the requested increases. Once the departments have completed the worksheets, they are returned along with any supporting documentation to the Finance Director. The City Manager and the Finance Director meet with each Department Director individually to review the budget worksheets. The City Manager and all City Directors meet an entire day to review each department’s budget requests for the coming year. During both the individual and group meetings, Directors work with the City Manager to identify long-range planning and goal -setting. As the budget process progresses, the City Manager works with departments to focus these goals and plans to ensure they are in line with the City’s overall goals. Revenues are projected based on historical trends, the current economic climate and expected future trends. Personnel expenses are prepared based upon the current year, adjusted as necessary for staffing changes or changes in the cost of benefits. Utility expenses are projected based on the current and prior years, modified where applicable due to utility rate changes or changes to City facilities. It is important during the budget process to consider not only the present but also the past and the future. Current conditions considered for this budget include the number of utility customers the City serves; the staffing level required to provide services to citizens; and how COVID-19 and inflation have affected the City’s operating costs. The past holds valuable information including items such as historical trends of sales tax revenues and the rate of change in property values for property tax projections. Future considerations to be considered include: the number of new houses expected to be built in the next twelve months; the number and size of businesses scheduled to open in the near future; and planned development along the I-35 corridor that runs through Sanger. To help plan for the future, this budget contains a five-year projected budget for the General Fund. The departmental budget worksheets are combined with revenues, personnel and utility expenses to prepare a working budget, which is reviewed by the City Manager. The City Manager and the Finance Director meet with each department to review and discuss the requested budget in detail. These meetings assist the City Manager in determining priorities for the budget. The Denton County Chief Appraiser will certify the tax roll during July, allowing the City to propose a tax rate and estimate property tax revenues. A series of public budget workshops are held with the City Council, allowing for citizen input for the budget process. These workshops allow the City Council to formulate its priorities for the proposed budget. Following these workshops, the proposed budget is formulated. This proposed budget is filed with the City Secretary before the end of August and is published on the City’s website for citizen review. Public hearings on the proposed budget and property tax rate are scheduled to allow for citizen input. Following the public hearings, the budget may be adopted. The budget may be adopted at any regular or special meeting of the City council prior to the beginning of the fiscal year. On final adoption, the budget is in effect for the budget year. During the year, the City Council may amend or The City of Sanger, Texas Page 24 Official Budget 2022-23 change the budget to provide for any additional expense. Section 9.05 of the City’s Charter states “Under conditions which may arise and which could not reasonably have been foreseen in the normal process of planning the budget, the Council may, by a majority vote of the full membership, amend or change the budget to provide for any additional expenses in which the general welfare of the citizenry is involved. These amendments shall be by ordinance, and shall become an attachment to the original budget.” In February and August, the City Manager and the Finance Director meet individually with each Department Director to compare operations year to date with the annual budget. The City of Sanger, Texas Page 25 Official Budget 2022-23 LIST OF FUNDS GENERAL FUND: This is the general operating fund for the City, utilized to account for all resources not required to be accounted for in another fund. The basis of accounting for financial reporting and budgeting is the modified accrual basis. DEBT SERVICE FUNDS: This governmental fund type is used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. Debt Service Funds of the City include the General Debt Service Fund and the Enterprise Debt Service Fund. The basis of accounting for financial reporting and budgeting is the modified accrual basis. CAPITAL PROJECTS FUNDS: These funds were established to account for resources used for the acquisition and construction of capital facilities by the City. Capital Projects Funds of the City include Capital Projects Fund and Enterprise Capital Projects Fund. The basis of accounting for financial reporting and budgeting is the modified accrual basis. SPECIAL REVENUE FUNDS: These funds are used to account for the revenue derived from specific taxes or other earmarked revenue sources (other than for major capital projects) that are restricted by law or administrative action to expenditures for specified purposes. Special Revenue funds of the City include Hotel/Motel Tax Fund; General Storm Recovery Fund; Enterprise Storm Recovery Fund; Beautification Fund; Library Restricted Fund; Parkland Dedication Fund; Roadway Impact Fee Fund; Court Security Fund; Court Technology Fund; Child Safety Fund; Police Donations Fund; Fire Donations Fund; Park Donations Fund, and Library Donations Fund. The basis of accounting for financial reporting and budgeting is the modified accrual basis. GO V E R N M EN T A L FU N D S ENTERPRISE FUND: This fund accounts for the operations and financing of self-supporting activities of a governmental unit that renders services on a user charge basis to the general public, similar to private business enterprises. The basis of accounting for financial reporting and budgeting is the accrual basis. INTERNAL SERVICE FUND: This fund accounts for the financing of centralized services to different funds and City departments on a cost reimbursement basis. The basis of accounting for financial reporting and budgeting is the modified accrual basis. 4A CORPORATION FUND: This fund accounts for the operations and financing of self- supporting activities of the Sanger Texas Industrial Development Corporation. Funded by a ½ cent sales tax, this fund is used to help new and existing businesses expand in Sanger with a primary goal of bringing jobs to Sanger. The basis of accounting for financial reporting and budgeting is the modified accrual basis. 4B CORPORATION FUND: This fund accounts for the operations and financing of self- supporting activities of the Sanger Texas Economic Development Industrial Corporation. Funded by a ½ cent sales tax, this fund is used to enhance the local economy by improving the quality of life in Sanger. The basis of accounting for financial reporting and budgeting is the modified accrual basis. PRO P R I E T A R Y FU N D S FI DU C I A R Y FU N D S The City of Sanger, Texas Page 26 Official Budget 2022-23 FUND RELATIONSHIPS WITH FUNCTIONAL AREAS Administration Public Safety Community Development Public Works Culture & Recreation General Police, Animal Control, Fire, Municipal Court Development Services Streets, Solid Waste Parks & Recreation, Library Debt Service Debt Service Enterprise Water, Waste Water, Electric Enterprise Debt Service Debt Service Internal Service City Council, Administration, City Secretary, Legal, Finance, Human Resources, Facilities Public Works Administration 4A 4A 4B 4B Capital Projects Administration Public Works Administration Enterprise Capital Projects Administration Public Works Administration Hotel/Motel Administration General Storm Recovery Administration Electric Storm Recovery Administration Beautification Administration Library Restricted Library Parkland Dedication Administration Roadway Impact Fee Administration Court Security Court Court Technology Court Child Safety Police Forfeited Property Police Police Donations Police Fire Donations Fire Park Donatoins Parks Library Donations Library F U N C T I O N A L A R E A F U N D The City of Sanger, Texas Page 27 Official Budget 2022-23 ABOUT SANGER OVERVIEW The City of Sanger, Texas was incorporated in 1886 and operates under a Council-Manager form of government. The City provides general government, public safety, public works, culture and recreation, water, sewer and electricity operations to citizens. LOCATION Sanger is strategically located along in Northern Denton County and occupies 10.9 square miles along Interstate 35. The city’s location, services and amenities make it a wonderful place to live. Uniquely situated 50 miles from both Dallas and Fort Worth, Sanger offers residents the amenities of a major metropolitan area while retaining a small-town quality of life. In addition, the Dallas/Fort Worth International Airport is 38 miles away. Sanger is located minutes from the shores of Lake Ray Roberts, the 6th largest lake in Texas. Sanger is also located in “horse country”, as Denton County has more working horse ranches than any other county in the United States. The City of Sanger, Texas Page 28 Official Budget 2022-23 HISTORY During the rapid expansion of railroads following the Civil War, the Gulf, Colorado & Santa Fe Railway grew from South Texas northward, through the area that is today known as Sanger. The railroad selected a spot between Fort Worth and Gainesville for a new stop. The railroad had two reasons for selecting this particular spot. First, the steam locomotives of the day required frequent stops to replenish the engine’s water supply. Second, this spot was close to the Chisholm Trail. Cattle drives were a major economic activity at the time and the Chisholm Trail was the most important route for cattle drives leaving Fort Worth. In a relatively short time, the railroad would replace the Chisholm Trail as the means for moving cattle north out of Texas. In 1886, the railroad purchased land from Mrs. Elizabeth Huling of Lampasas, Texas and built a one-room depot, cattle pens and loading chute on the site. Mrs. Huling hired two surveyors to lay out a town around the railroad stop, and she donated land for a wagon yard, water well, school, town square, cemetery, and a church. Lots were laid out for stores and homes, and lots were given to anyone who would build a house costing at least $500. The city was originally named Huling in her honor. The community’s name was changed to New Bolivar for a short time. The railroad officially named the town Sanger in 1887 in honor of railroad customers Lehman, Isaac, Alex, Sam and Philp Sanger. Pioneers in the dry goods wholesale and resale industry in Texas, the Sanger Brothers built a chain of stores in railroad towns to utilize the trains to move merchandise. Although the city was named in their honor, the Sanger Brothers never lived in the city or operated a store here. Rail service began when the first trains came through in 1887. Cattle began loading the trains as soon as service to Kansas City was established. The first residents of the area were Francis and Melissa Ready and their daughter Molly. In the spring of 1887, the family sought refuge from a snow storm in the depot as they were passing through, and decided to stay. The family built a one-room cabin, and Mrs. Ready cooked meals for the cowboys who drove the cattle to the pens. Mr. Ready later built a hotel near the pens, and operated a post office in the lobby after he was commissioned postmaster. The City of Sanger was incorporated in 1892 and William E. Partlow was elected the first Mayor of Sanger. Business thrived in the following years and led to the growth of the City. Thanks to a large mill and grain elevator, Sanger became a large farming community. At some point, a fire destroyed the depot and the railroad built a new station that included a larger depot building, waiting rooms, a Western Union telegraph office, and a Wells Fargo freight office. The depot operated 24 hours a day, 6 days a week. Around 1900, ranchers began trucking cattle to Fort Worth instead of shipping them to Kansas City. At the time when the trains stopped shipping cattle, resourceful individuals began using the railroad to ship dairy cream to Fort Worth and Ardmore, Oklahoma. Texas State Highway 40 ran through the area and became a portion of US Route 77 in 1929. Interstate 35 was built along the route in the early 1960’s. As the railroad replaced the cattle trail, the highway system replaced the railway as the conduit that brought visitors and business to Sanger. The years following World War II saw the decline of railroads nationwide, and the Sanger depot eventually closed. Interstate 35 serves the heartland of America, running from South Texas to Minnesota. According to the Texas Department of Transportation, more than 50,000 vehicles pass through Sanger on I-35 daily. The City of Sanger, Texas Page 29 Official Budget 2022-23 QUICK FACTS LOCATION Sanger is located along Interstate 35 in northern Denton County in north Texas. Sanger is located less than an hour from both Dallas and Fort Worth. AREA 10.9 square miles FORM OF GOVERNMENT Council-Manager INCORPORATION 1892 POPULATION 9,470 (01/01/2022 estimate) TRANSPORTATION Interstate 35 DFW Airport - 39 miles Love Field - 48 miles BNSF Railway CLIMATE Köppen Climate Classification “Cfa” (Humid Subtropical Climate) Average temperature 64º Average Precipitation 14.9” SALES TAX RATE 6.25% State of Texas 1.00% City of Sanger 0.50% 4A Corporation 0.50% 4B Corporation BOND RATING AA (Standard & Poor’s) TOP 10 PROPERTY TAXPAYERS Wal-Mart Stores East, L.P. US06068 Wal-Mart Stores East, L.P. Trails of Sanger Apartments LLC Ramar Land Corporation Maccamp LTD Sanger Lodging, LLC Paccar Financial LGI Homes-Texas LLC Williamsburg Construction Services Springer Properties LLC The City of Sanger, Texas Page 30 Official Budget 2022-23 LOCAL EVENTS Sanger takes pride in the small-town charm it offers. Although many events were cancelled as a result of the COVID-19 pandemic, the City began offering more regular events during the past year. Here are some of the events that usually happen each year in Sanger. FEBRUARY Mother-Son Valentine Dance MARCH Spring Clean Up Day APRIL City-wide Easter Egg Hunt JUNE Summer Reading Program JULY Freedom Fest SEPTEMBER Sanger “Sellabration” Market Adult Kickball league Fishing Derby OCTOBER Halloween Trick or Treat DECEMBER Four Days of Christmas Christmas Parade Santa Around Town ONGOING Yoga Classes Baseball & Softball Leagues Concerts in the Park Preschool Story Time Movies in the Park The City of Sanger, Texas Page 31 Official Budget 2022-23 STATISTICS 2317 25 35 157 133 132 0% 20% 40% 60% 80% 100% Housing Units 1 1 Unit 2 Units 3 or 4 Units 5 to 9 Units 10+ Units Mobile Home/Other 1, 2 0 4 1, 1 1 9 1, 0 0 0 1, 1 7 0 1, 1 9 0 1, 6 0 3 2, 5 7 4 3, 5 0 8 4, 5 3 4 6, 9 1 6 8, 8 3 9 9, 4 7 0 0 2,000 4,000 6,000 8,000 10,000 19 2 0 19 3 0 19 4 0 19 5 0 19 6 0 19 7 0 19 8 0 19 9 0 20 0 0 20 1 0 20 2 0 20 2 2 Population Growth 1,2 11% Under 5 13% 5 to 14 12% 15 to 24 15% 25 to 34 16% 35 to 44 11% 45 to 54 10% 55 to 64 6% 65 to 74 6% Over 75 Population Age Distribution 1 MAJOR EMPLOYERS 1,000+ Employees: • Wal-Mart Distribution Center 200 – 499 Employees: • R & L Carriers • Sanger Independent School District • Sam’s Distribution Center 50-100 Employees: • City of Sanger • A&W Productions • Eikon Engineering • Babe’s Chicken 20-50 Employees: • Holiday Inn Express • Hollingsworth Manufacturing • McClain’s RV Super Store • Miguelito’s Mexican Restaurant • North Texas Plastics • Sanger Bank SCHOOLS 2 Butterfield Elementary School Chisholm Trail Elementary School Clear Creek Intermediate School Sixth Grade Campus Sanger Middle School Linda Tutt High School Sanger High School University of North Texas (Denton) Texas Women’s University (Denton) North Central Texas College (Gainesville) 1 factfinder.census.gov 2 North Central Texas Council of Governments 3 Sanger Economic Development Corporation The City of Sanger, Texas Page 32 Official Budget 2022-23 BU D G E T S U M M A R Y The City of Sanger, Texas Page 33 Official Budget 2022-23 2022-2023 BUDGET AT A GLANCE WHERE DOES THE MONEY COME FROM? Charges for Services $14,004,406 51% Property Taxes $6,242,940 23% Fines, Fees, Licenses & Permits $2,267,286 8% Sales & Mixed Drink Taxes $3,111,000 11% Franchise Fees $1,009,895 4% Other $856,150 3% TOTAL REVENUES = $27.5 MILLION (EXCLUDES OTHER SOURCES) The City of Sanger, Texas Page 34 Official Budget 2022-23 HOW IS THE MONEY USED? Capital Assets / Infrastructure $19,243,680 42% Public Works/Utilities $11,257,342 25% Public Safety $6,467,582 14% General Government $3,522,860 8% Debt Service $2,469,315 5% Economic & Community Development $1,566,600 3% Culture & Recreation $1,258,476 3% Total Expenditures = $45.8 Million (Excludes Inter-Fund Transfers) The City of Sanger, Texas Page 35 Official Budget 2022-23 2022-2023 BUDGET BY FUND REVENUES BY FUND Enterprise Fund $13,121,406 48% General Fund $11,274,081 41% Enterprise Capital Projects Fund $900,000 3% 4A Fund $822,000 3% 4B Fund $830,000 3% Special Revenue Funds $301,250 1%Debt Service Fund $159,158 1% Capital Projects Fund $45,000 0% Total Revenues = $27.5 Million (EXCLUDES OTHER SOURCES) The City of Sanger, Texas Page 36 Official Budget 2022-23 EXPENDITURES BY FUND Enterprise Capital Project Fund $16,177,910 35% Enterprise Fund $10,107,342 22% General Fund $10,560,328 23% Internal Service Fund $3,483,760 8% Enterprise Debt Service Fund $2,132,761 5% Capital Projects Fund $2,165,000 5% 4B Fund $644,050 1% Debt Service Fund $336,554 1% 4A Fund $139,050 0% Special Revenue Funds $39,100 0% Total Expenditures = $45.8 Million (Excludes Inter-Fund Transfers) The City of Sanger, Texas Page 37 Official Budget 2022-23 REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE OVERVIEW OF MAJOR REVENUE SOURCES The City has numerous sources of income, including taxes, franchise fees, charges for services, fees, and licenses and permits. For the 2022-2023 budget, three revenue sources account for 85% of all revenues: Charges for Services, Property Taxes, and Sales/Mixed Drink Taxes. Charges for Services Charges for Services includes the billing of Water, Waste Water and Electric utilities in the Enterprise Fund and Solid Waste Collections in the General Fund. Total Charges for services are $14,004,406, which is 51% of the City’s total projected revenues. Enterprise Fund Charges for Services The primary revenue stream of the Enterprise Fund is the billing and collection of Water, Waste Water and Electric utilities. Totaling $12,742,406, these combined charges for services accounts for 46% of the City’s projected revenues.  Water revenues of $2,334,878 are an increase of $92,128 (4%) over last year’s projection of $2,242,750. Revenues have steadily grown through the years, the result of both increasing population and occasional changes in the rate structure. Water revenues are expected to rise in future years, the result of continued growth.  Waste Water revenues of $2,715,028 are an increase of $211,715 (8%) over last year’s projection of $2,503,313. Revenues have steadily grown through the years, the result of both increasing population and occasional changes in the rate structure. Waste Water revenues are expected to rise in future years, the result of continued growth.  Electric revenues of $7,692,500 are a slight decrease of $48,830 (1%) from last year’s projection of $7,741,330. The City has reevaluated projections for Electric revenues over the past several years and has adjusted revenue estimates as necessary. Electric revenues are expected to rise in future years, the result of continued growth. $- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Enterprise Fund Charges for Services Past 10 Years Water Revenues Waste Water Revenues Electric Revenues The City of Sanger, Texas Page 38 Official Budget 2022-23 Water, Waste Water and Electric rates are set by City ordinance and have historically been set using trend analysis and a cost-of-service model. The City engaged NewGen Strategies & Solutions, an independent consulting firm to make recommendations for rates for the next five years. On May 21, 2018, NewGen presented their findings and recommendations to City Council. Council responded to the recommendations by making adjustments to utility billing rates and plans to follow NewGen’s recommendations for the coming years. This budget includes funding to have the rate study updated and projected for the next five years. General Fund Charges for Services General Fund Charges for services includes billing for Sanitation and Recycling Services. These charges total $1,262,000 and account for 5% of total revenues. This amount is an increase of 16% over last year’s projection of $1,086,644, the result of new residential and commercial properties utilizing services. Property Taxes The collection of Property Taxes accounts for a total of $6,204,158 or 23% of the City’s projected revenues. Property within Sanger is appraised annually by the Denton Central Appraisal District. Property Tax revenue is calculated using the appraised values of properties and the property tax rate. Property Taxes are reported in the General Fund and the Debt Service Fund. Projected Property Tax collections are an increase of $598,172 (11%) over the prior year projection of $5,605,986. Property Tax revenues are expected to continue to rise in future years, the result of continued growth. The Sanger City Council approved Ordinance 09-21-21 on September 7, 2021, setting the property tax rate at $0.633711 per $100 valuation for the 2021-22 budget year. For 2022-23, a lowered tax rate of $0.589497 is proposed. Sales Taxes The collection of Sales Taxes accounts for a total of $3,100,000 (11%) of the City’s projected revenues. Sales subject to sales tax are taxed at a total of 8.25% (6.25% to the State of Texas) and 2.0% to the City of Sanger. Projected Sales Taxes for 2022-23 are an increase of 17% over those projected for 2021-22 at $2,658,672. Sales Tax revenues are expected to rise in future years, the result of continued growth. $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2021-22 Property Tax Revenues Past 10 Years The City of Sanger, Texas Page 39 Official Budget 2022-23 OVERVIEW OF MAJOR EXPENDITURE CATEGORIES Numerous expenditures are necessary to operate a municipality. Primary categories of expenditures include Salaries & Benefits, Maintenance & Operations, and Capital Expenses. For the 2022-2023 budget, these three categories combined total 83% of all expenditures. Maintenance and Operations With a total of $7,907,008, Maintenance and Operations expenditures account for 17% of total expenditures. The bulk of this amount ($7,254,795) is budgeted in the Enterprise Fund. Major components of this amount are: Electric Wholesale Utility Purchases & Transmission Costs; Electric Franchise Fees; Water Purchases and Utility Demand Charges; Systems Maintenance for Water, Waste Water & Electric. Salaries and Benefits With a total of $9,334,800, Salaries and Benefits account for 20% of total expenditures. The General Fund accounts for $5,659,7000 of this amount. The General Fund includes 87.4 (71%) of the City’s 123 budgeted positions. The category of Salaries and Benefits encompasses employee compensation and the City’s portion of Social Security and Medicare taxes, Texas Municipal Retirement System, health insurance and worker’s compensation. Capital Expenses During the budget process, capital items are identified and considered for inclusion in the budget. These items may be identified by individual City departments, the City Manager, or by the City Council. Capital projects must be clearly defined and the need explained in order to make it into the budget. Through meetings between the City Manager and Directors and in City Council workshops, these projects are discussed. Those projects identified as necessary are then places on a timeline – which will determine in they are included in the current budget or in a future budget. The Capital Projects section of this document explains this in more detail and includes a five-year future schedule of currently planned projects. With a total of $20,915,417, Capital Expenditures account for 46% of total expenditures. The bulk of this amount ($16,227,510) is budgeted in the Enterprise Capital Projects Fund. The major components of this amount are $9.972.510 for the relocation of City utilities along Interstate 35, $3,200,000 for a new water and electric meter reading system, and $1,200,000 for water system improvements. The City of Sanger, Texas Page 40 Official Budget 2022-23 OVERVIEW OF CHANGES IN FUND BALANCE City funds often will not see a great increase or decrease in Fund Balance in a single year. There are circumstances, however, where a larger increase or decrease in Fund Balance may occur as the result of strategic planning. Changes in Fund Balance are projected to be as follows: 4A Fund For the budget year, the 4A Fund is projected to have an increase in Fund Balance of $652,950 (19%). The 4A Corporation is managed by a Board of Directors made up of area residents appointed by the City Council. Type A funds come from a ½ cent sales tax and can only be used for specific economic development activities. 4A is minimizing expenditures in the current year to allow for use of the funds for major projects in future years. Capital Projects Fund The Capital Projects Fund is projecting a 73% decrease ($2,120,000) in Fund Balance this year. The funds balance has grown over the past years, and will be utilized in this and future years on projects. During 2022-23, these projects include a street rehabilitation program, utility program, improvements to Marion Road, improvements to the downtown Sanger area, and the starting the process of constructing a joint public safety facility. Enterprise Capital Projects Fund The Enterprise Capital Projects Fund is projecting a decrease in Fund Balance of $1,327,510 (-35%). Major projects include the relocation of utilities along I-35, a new water and electric metering system, and water system improvements. Special Revenue Funds The Special Revenue Funds are projecting an overall increase in Fund Balance of $562,150 (15%). The majority of this increase is a $300,000 projected increase in the General Storm Recovery Fund and a $200,000 increase in the Roadway Impact Fee Fund. The monies in the General Storm Recovery Fund will be used for repairs to City-owned property from damage caused by future storms. The monies in the Roadway Impact Fee Fund will be used for future neighborhood development projects. Fund Projected Fund Balance, 10/01/2021 Revenues & Other Sources Expenditures & Other Uses Projected Fund Balance, 10/01/2022 Percent Change General Fund 11,257,737 12,241,832 12,241,832 11,257,737 0.0% Debt Service Fund 797,291 371,985 388,089 781,187 -2.0% Enterprise Fund 21,021,290 14,432,598 14,432,598 21,021,290 0.0% Enterprise Debt Service Fund (23,755) 2,158,000 2,132,761 1,484 0.0% Internal Service Fund 431,207 3,483,760 3,483,760 431,207 0.0% 4A Fund 3,411,016 822,000 154,050 4,078,966 19.6% 4B Fund 2,258,648 830,000 871,550 2,217,098 -1.8% Capital Projects Funds 2,895,095 45,000 2,165,000 775,095 -73.2% Enterprise Capital Project Fund 3,843,353 14,900,000 16,177,910 2,565,443 -33.2% Special Revenue Funds 3,737,729 601,250 39,100 4,299,879 15.0% Total 49,629,611 49,886,425 52,086,650 47,429,386 -4.4% The City of Sanger, Texas Page 41 Official Budget 2022-23 COMBINED FUNDS SUMMARY (DETAILED) COMBINED SUMMARY OF REVENUES, EXPENDITURES AND CHANGES TO FUND BALANCE FOR ALL FUNDS SUBJECT TO APPROPRIATION General Fund Debt Service Fund Enterprise Fund Enterprise Debt Service Internal Service Fund Beginning Fund Balance 11,257,737 797,291 21,021,290 (23,755) 431,207 Revenues Property Tax 6,088,455 154,485 - - - Sales & Mixed Drink Tax 1,511,000 - - - - Franchise Fees 1,009,895 - - - - Charges for Services 1,262,000 - 12,742,406 - - Fees 574,431 - 200,000 - - Licenses & Permits 363,500 - - - - Fines 155,755 - - - - Interest Income 225,000 5,000 60,000 - - Miscellaneous 122,500 - 119,000 - - Total Revenues 11,312,536 159,485 13,121,406 - - Other Sources Transfers In 146,535 212,500 - 2,158,000 3,483,760 Use of Bond Proceeds - - - - - Use of Fund Balance 782,761 - 1,311,192 - - Total Other Sources 929,296 212,500 1,311,192 2,158,000 3,483,760 Total Revenues/Sources 12,241,832 371,985 14,432,598 2,158,000 3,483,760 Expenditures Salaries & Benefits 5,724,000 - 1,714,900 - 1,773,900 Supplies & Materials 459,421 - 122,170 - 549,965 Maintenance & Operations 553,413 - 7,254,795 - 92,200 Contract Services 1,848,759 - 455,245 - 837,850 Utilities 90,400 - 309,100 - 143,000 Capital Expenses 1,707,930 - 249,132 - 86,845 Debt Service 51,535 336,554 2,000 2,132,761 - Court Costs 68,870 - - - - Grant Expenses 56,000 - - - - Total Expenditures 10,560,328 336,554 10,107,342 2,132,761 3,483,760 Other Uses Transfers Out 1,681,504 51,535 4,325,256 - - Total Other Uses 1,681,504 51,535 4,325,256 - - Total Expenses/Uses 12,241,832 388,089 14,432,598 2,132,761 3,483,760 Excess of Revenues/Sources - (16,104) - 25,239 - over Expenditures/Uses Ending Fund Balance 11,257,737 781,187 21,021,290 1,484 431,207 The City of Sanger, Texas Page 42 Official Budget 2022-23 4A Fund 4B Fund Capital Projects Fund Enterprise Capital Projects Special Revenue Funds Total Beginning Fund Balance 3,411,016 2,258,648 2,895,095 3,843,353 3,737,729 49,629,611 Revenues Property Tax - - - - - 6,242,940 Sales & Mixed Drink Tax 800,000 800,000 - - - 3,111,000 Franchise Fees - - - - - 1,009,895 Charges for Services - - - - - 14,004,406 Fees - - - 750,000 210,000 1,734,431 Licenses & Permits - - - - - 363,500 Fines - - - - 13,600 169,355 Interest Income 22,000 30,000 45,000 150,000 20,150 557,150 Miscellaneous - - - - 57,500 299,000 Total Revenues 822,000 830,000 45,000 900,000 301,250 27,491,677 Other Sources Transfers In - - - - 300,000 6,300,795 Use of Bond Proceeds - - - 14,000,000 - 14,000,000 Use of Fund Balance - - - - - 2,093,953 Total Other Sources - - - 14,000,000 300,000 22,394,748 Total Revenues/Sources 822,000 830,000 45,000 14,900,000 601,250 49,886,425 Expenditures Salaries & Benefits 60,500 60,500 - - 1,000 9,334,800 Supplies & Materials 47,750 38,750 - - 13,000 1,231,056 Maintenance & Operations 5,800 800 - - - 7,907,008 Contract Services 25,000 15,000 - - 25,100 3,206,954 Utilities - - - - - 542,500 Capital Expenses - 479,000 2,165,000 16,177,910 - 20,865,817 Debt Service - - - - - 2,522,850 Court Costs - - - - - 68,870 Grant Expenses - 50,000 - - - 106,000 Total Expenditures 139,050 644,050 2,165,000 16,177,910 39,100 45,785,855 Other Uses Transfers Out 15,000 227,500 - - - 6,300,795 Total Other Uses 15,000 227,500 - - - 6,300,795 Total Expenses/Uses 154,050 871,550 2,165,000 16,177,910 39,100 52,086,650 Excess of Revenues/Sources 667,950 (41,550) (2,120,000) (1,277,910) 562,150 (2,200,225) over Expenditures/Uses Ending Fund Balance 4,078,966 2,217,098 775,095 2,565,443 4,299,879 47,429,386 The City of Sanger, Texas Page 43 Official Budget 2022-23 COMBINED FUNDS BUDGET SUMMARY COMBINED BUDGET SUMMARY FOR ALL FUNDS SUBJECT TO APPROPRIATION Beginning Fund Balance 36,741,880 45,693,095 45,693,095 49,629,611 Revenues Property Tax 5,243,765 5,548,157 5,605,986 6,242,940 Sales & Mixed Drink Tax 2,575,201 2,407,000 2,668,472 3,111,000 Franchise Fees 910,840 971,463 981,054 1,009,895 Charges for Services 13,017,322 13,701,517 13,574,037 14,004,406 Fees 2,087,985 1,901,625 710,108 1,734,431 Licenses & Permits 466,076 424,000 228,957 363,500 Fines 162,132 167,550 158,026 169,355 Interest Income 489,788 402,850 501,787 557,150 Miscellaneous 1,345,822 231,500 201,169 299,000 Total Revenues 26,298,931 25,755,662 24,629,596 27,491,677 Other Sources Transfers In 8,680,064 20,111,503 7,111,503 6,300,795 Use of Bond Proceeds 339,600 13,000,000 6,000,000 14,000,000 Use of Fund Balance - - - 2,093,953 Total Other Sources 9,019,664 33,111,503 13,111,503 22,394,748 Total Revenues/Sources 35,318,595 58,867,165 37,741,099 49,886,425 Expenditures Salaries & Benefits 5,976,657 7,635,901 6,637,979 9,334,800 Supplies & Materials 602,261 1,144,480 696,671 1,231,056 Maintenance & Operations 6,551,627 7,963,906 6,457,735 7,907,008 Contract Services 2,205,312 2,856,256 2,180,009 3,206,954 Utilities 466,022 515,325 453,640 542,500 Capital Expenses 1,520,061 15,292,011 7,825,134 20,865,817 Debt Service 2,669,790 2,277,252 2,278,033 2,522,850 Court Costs 56,198 61,800 53,879 68,870 Grant Expenses - 106,000 15,000 106,000 Total Expenditures 20,047,928 37,852,931 26,598,080 45,785,855 Other Uses Transfers Out 6,319,452 7,106,503 7,206,503 6,300,795 Total Other Uses 6,319,452 7,106,503 7,206,503 6,300,795 Total Expenses/Uses 26,367,380 44,959,434 33,804,583 52,086,650 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 45,693,095 59,600,826 49,629,611 47,429,386 8,951,215 13,907,731 3,936,516 (2,200,225) 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 44 Official Budget 2022-23 FU N D S I N D E T A I L The City of Sanger, Texas Page 45 Official Budget 2022-23 GENERAL FUND OVERVIEW The General Fund is the principle operating fund for resources (revenues) and uses of resources (expenditures) for what are generally recognized as governmental functions and services. In general, all activities are recorded in this fund unless there is a managerial or legal reason for it to be recorded in another fund. The General Fund receives revenues from property taxes, sales taxes, franchise fees, fines, fees for service, interest income and other miscellaneous general revenue sources. The General Fund includes these departments: o Police o Animal Control o Fire o Municipal Court o Development Services o Streets o Parks & Recreation o Library o Solid Waste The basis of accounting for the General Fund for both financial reporting and budgeting is the modified accrual basis. The City of Sanger, Texas Page 46 Official Budget 2022-23 GENERAL FUND BUDGET SUMMARY Salaries & Benefits 54% Supplies & Materials 4% Maintenance & Operations 5% Contract Services 18% Utilities 1% Capital Expenses 16% Debt Service 0% Court Costs 1% Grant Expenses 1% GENERAL FUND EXPENDITURES The City of Sanger, Texas Page 47 Official Budget 2022-23 GENERAL FUND BUDGET SUMMARY Beginning Fund Balance 7,201,005 10,922,485 10,922,485 11,257,737 Revenues Taxes 5,962,103 6,600,999 6,756,786 7,599,455 Franchise Fees 910,840 971,463 981,054 1,009,895 Solid Waste 1,073,060 1,096,000 1,086,644 1,262,000 Licenses & Permits 466,076 424,000 228,957 363,500 Fines 147,322 153,300 143,552 155,755 Fire & EMS 806,077 635,000 2,138 466,890 Police & Animal Control 62,599 61,450 80,653 70,621 Parks & Recreation 10,510 21,100 18,631 14,000 Library 18,241 24,075 20,048 22,920 Interest Income 15,160 100,000 175,000 225,000 Miscellaneous 1,187,172 87,500 69,814 122,500 Total General Fund Revenues 10,659,160 10,174,887 9,563,277 11,312,536 Other Sources Transfers In 461,535 151,535 151,535 146,535 Use of Fund Balance - - - 782,761 Total Other Sources 461,535 151,535 151,535 929,296 Total Revenues/Sources 11,120,695 10,326,422 9,714,812 12,241,832 Expenditures Salaries & Benefits 3,498,576 4,407,400 3,641,186 5,724,000 Supplies & Materials 297,575 476,598 347,456 459,421 Maintenance & Operations 253,210 469,467 454,461 553,413 Contract Services 1,334,408 1,586,661 1,337,074 1,848,759 Utilities 77,325 93,275 85,172 90,400 Capital Expenses 54,189 323,989 430,131 1,707,930 Debt Service 51,535 51,535 51,535 51,535 Court Costs 56,198 61,800 53,879 68,870 Grant Expenses - 56,000 - 56,000 Total Expenditures 5,623,016 7,526,725 6,400,894 10,560,328 Other Uses Transfers Out 1,776,199 2,878,666 2,978,666 1,681,504 Total Other Uses 1,776,199 2,878,666 2,978,666 1,681,504 Total Expenses/Uses 7,399,215 10,405,391 9,379,560 12,241,832 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 10,922,485 10,843,516 11,257,737 11,257,737 3,721,480 (78,969) 335,252 - 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 48 Official Budget 2022-23 GENERAL FUND REVENUES Taxes Property Tax 4,631,947 5,318,999 5,382,619 6,038,455 Delinquent Prop. Tax 13,607 25,000 38,274 25,000 Penalty & Interest Prop. Tax 24,224 50,000 26,093 25,000 Sales Tax 1,282,875 1,200,000 1,300,000 1,500,000 Mixed Drink Tax 9,450 7,000 9,800 11,000 Total Taxes 5,962,103 6,600,999 6,756,786 7,599,455 Franchise Fees Century Link 0 5,500 5,500 0 ATMOS 47,931 48,000 63,021 67,000 Suddenlink 28,729 42,000 42,000 26,000 Nortex 2,978 2,200 3,200 3,000 COSERV 112,493 120,000 130,000 144,000 City of Sanger Water 115,048 119,134 119,134 123,383 City of Sanger Sewer 114,004 140,229 140,229 146,612 City of Sanger Electric 410,400 410,400 410,400 410,400 Progressive 55,679 55,000 57,000 62,000 Roll-offs 16,864 17,000 1,800 20,000 ROW fees 6,714 12,000 8,770 7,500 Total Franchise Fees 910,840 971,463 981,054 1,009,895 Solid Waste Sanitation Billing 1,063,277 1,085,000 1,075,000 1,250,000 Sanitation Penalties 9,783 11,000 11,644 12,000 Total Solid Waste 1,073,060 1,096,000 1,086,644 1,262,000 Licenses & Permits Building Permits 341,588 325,000 125,036 300,000 Zoning and Plats 9,409 20,000 47,969 20,000 Engineering Inspection Fee 52,455 30,000 0 1,000 Civil Plan Review Fees 35,304 20,000 14,745 1,000 Street Cut Permit 120 1,000 0 1,000 Health Permits 14,513 17,500 18,000 17,500 Fire Alarm/Sprinkler 10,587 7,500 14,287 15,000 Solicitor Permits 550 0 4,675 5,000 RV Park Annual Permit 1,550 1,500 2,000 1,500 Beer & Wine Permit 0 1,500 2,245 1,500 Total Licenses & Permits 466,076 424,000 228,957 363,500 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 49 Official Budget 2022-23 GENERAL FUND REVENUES Fines Default/Court 605 600 758 750 Judicial Fee- County-JFCT 219 300 87 150 Judicial Fee-City 24 100 10 50 Local Municipal Jury 59 100 57 150 State Traffic Fee 15,750 17,800 11,228 17,900 Consolidated Court Fee 37,969 38,800 35,733 39,800 State Jury Fee - SJRF 160 200 65 100 Child Safety Court Cost 1,417 2,000 613 2,000 Administrative Fee $20 160 200 225 300 Special Expense Fee 18,332 20,900 17,850 21,100 Truancy Prevention Fund 3,012 3,100 2,854 3,200 Fines 52,744 51,200 57,403 52,500 Impound Fees 0 0 181 0 Warrant Fees - FTA 4,397 4,500 5,175 4,500 Arrest Fees 2,695 2,800 2,501 3,000 Traffic Code 953 0 677 1,100 Civil Justice Fee 7 100 1 5 Defensive Driving Fee 650 800 360 1,000 Time Payment Local 558 0 821 700 Municipal Service Bureau 5,881 6,100 6,033 6,000 Time Payment State 150 200 108 200 Truancy Defensive Fund 80 100 32 50 TLFTA1 900 900 330 700 TLFTA2 360 400 270 300 TLFTA3 240 300 180 200 Total Fines 147,322 153,300 143,552 155,755 Fire & EMS Fire Denton Co. Interlocal 10,000 10,000 15,000 10,000 EMS Denton Co. Interlocal 193,800 250,000 203,925 161,390 Emergicon Revenue 418,622 325,000 306,111 295,500 Texas Supplemental Amb 183,655 50,000 179,590 0 Total Fire & EMS 806,077 635,000 2,138 466,890 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 50 Official Budget 2022-23 GENERAL FUND REVENUES Police and Animal Control Animal Control Fees 1,025 1,250 1,125 1,250 Mowing Fees 13,941 10,000 4,908 10,000 Police Fees 2,961 3,000 2,115 3,000 Sanger ISD Resource Officer 44,672 46,000 72,505 56,371 State Reimbursements 0 1,200 0 0 Total Police and Animal Control 62,599 61,450 80,653 70,621 Parks & Recreation Community Center Fees 5,715 10,000 9,000 7,500 Park & Ballfield Revenues 4,175 6,700 1,823 2,500 Tournament Fees 0 1,200 750 1,500 Special Events 0 2,000 3,180 0 Church Rental Fees 620 1,200 3,878 2,500 Total Parks and Recreation 10,510 21,100 18,631 14,000 Library Library Misc. 284 200 353 200 Library Fines 4 0 93 60 Library Copies 872 3,000 1,670 3,000 Inter Library loan 3 1,500 47 50 Library Cards 17 75 38 60 Lost Books 161 400 334 350 Yoga Class Charges 0 2,000 113 1,800 Denton Co Interlocal Agreement 16,900 16,900 17,400 17,400 Total Library 18,241 24,075 20,048 22,920 Interest Income 15,160 100,000 175,000 225,000 Interest Income 15,160 100,000 175,000 225,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 51 Official Budget 2022-23 GENERAL FUND REVENUES Miscellaneous Income Rental Income 19,620 22,500 24,533 22,500 Misc. Income GF 56,969 15,000 37,781 50,000 Donations - Freedom Fest 0 0 7,000 0 Proceeds from Sale of Assets 6 25,000 0 25,000 Insurance Damage Reimbursement 28,744 25,000 500 25,000 COVID-19 Funding 1,081,833 0 0 0 Total Miscellaneous 1,187,172 87,500 69,814 122,500 Total General Fund Revenues 10,659,160 10,174,887 9,563,277 11,312,536 Other Sources PILOT from EF 85,000 95,000 95,000 95,000 From DSF 51,535 51,535 51,535 51,535 From CIP Fund 325,000 0 0 0 From Police Donations Fund 0 5,000 5,000 0 Use of Fund Balance 0 0 0 782,761 Total Transfers 461,535 151,535 151,535 929,296 Total General Fund Revenues/Sources 11,120,695 10,326,422 9,714,812 12,241,832 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 52 Official Budget 2022-23 The City of Sanger, Texas Page 53 Official Budget 2022-23 POLICE The City of Sanger Police Department provides law enforcement services for the City. It is tasked with upholding and protecting the safety and security of citizens and visitors to the City of Sanger. Mission Statement To enhance the quality of life in the City through a proactive and professional level of police service; to maintain a strong commitment to excellence; to ensure safety through integrity, trust, and accountability; to treat all persons with respect, dignity, and equality; and to build partnerships with the community to meet current and future challenges. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. PERFORMANCE INDICATORS Indicator 2020-21 2019-20 2018-19 Ordinances Passed by Council 26 37 33 Resolutions Approved by Council 11 12 12 Proclamations Approved by Council 4 5 5 Plats Approved by Council 11 21 26 BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Police Chief 1 1 1 Assistant Police Chief 0 1 1 Lieutenant 1 1 1 Sergeant 2 2 2 Detective 1 2 2 Police Officer 10 10 11 Administrative Assistant 1 1 1 Clerk / Property Room Technician 0 0 1 Total Budgeted Positions 16 18 20 The City of Sanger, Texas Page 54 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 1,254,831 1,517,800 1,327,407 1,946,400 428,600 28.24% Supplies & Materials 55,220 98,000 91,611 91,042 (6,958) -7.10% Maintenance & Operations 70,466 85,500 90,000 91,000 5,500 6.43% Contract Services 112,039 97,943 67,239 123,273 25,330 25.86% Utilities 8,051 9,000 8,523 10,200 1,200 13.33% Capital Expenses - 226,205 226,205 195,131 (31,074) -13.74% Total Department Budget 1,500,607 2,034,448 1,810,985 2,457,046 422,598 20.77% EXPENDITURE BY CATEGORY EXPENDITURE ALLOCATION 77.2% Salaries & Benefits 3.7% Supplies & Materials 4.5% Maintenance & Operations 7.9% Contract Services 0.3% Utilities 6.4% Capital Expenses - 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses The City of Sanger, Texas Page 55 Official Budget 2022-23 ANIMAL CONTROL The City of Sanger Animal Control provides for the safety of the public through the control of wild and domesticated animals. It is also charged with providing for the welfare of animals within the City. Animal control is responsible for the adoption of abandoned and surrendered animals. Animal control operates under the supervision of the Police Chief. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Animal Control Officer 1 1 1 Total Budgeted Positions 1 1 1 The City of Sanger, Texas Page 56 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 53,870 66,800 57,198 73,200 6,400 9.58% Supplies & Materials 57,521 69,900 55,097 70,900 1,000 1.43% Maintenance & Operations 2,897 5,500 2,648 5,500 - 0.00% Capital Outlay - 60,740 - - (60,740) -100.00% Total 114,288 202,940 114,943 149,600 (53,340) -26.28% EXPENDITURE BY CATEGORY - 20,000 40,000 60,000 80,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Capital Outlay EXPENDITURE ALLOCATION 48.9% Salaries & Benefits 47.4% Supplies & Materials 3.7% Maintenance & Operations The City of Sanger, Texas Page 57 Official Budget 2022-23 FIRE The City of Sanger Fire Department is responsible for all facets of fire suppression and prevention within the City and surrounding area of the county. It is a combination department made up of paid staff and volunteers. The fire station is staffed around the clock for rapid response to emergencies. Other duties include rescue, emergency medical services and public education. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. PERFORMANCE INDICATORS Indicator 2020-21 2019-20 2018-19 False Alarms 74 76 55 Good Intent 132 132 295 Service Calls 483 366 305 Service Class 25 7 26 Emergency Medical Incidents 1,128 1,041 993 Explosion 3 0 1 Fires 108 44 76 *More activity details are provided in the September 2021 Monthly Report located in the Appendix of this document. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Fire Chief (Part-time)1 1 1 Assistant Fire Chief 0 0 1 Fire Marshall/Inspector 1 1 1 Lieutenant 2 3 3 Firefighter/Paramedic 7 9 12 Firefighter/Paramedic (Part-time)23 21 21 Total Budgeted Positions 34 35 39 The City of Sanger, Texas Page 58 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 912,992 1,260,800 990,000 1,892,100 631,300 50.07% Supplies & Materials 83,253 121,850 102,345 154,596 32,746 26.87% Maintenance & Operations 67,691 83,200 91,121 106,500 23,300 28.00% Contract Services 96,493 73,114 70,521 81,586 8,472 11.59% Utilities 1,094 4,200 4,000 6,000 1,800 42.86% Capital Expenses - - 203,926 1,301,664 1,301,664 - Grant Expenses - 56,000 - 56,000 - 0.00% Total 1,161,523 1,599,164 1,461,913 3,598,446 1,999,282 125.02% EXPENDITURE BY CATEGORY - 250,000 500,000 750,000 1,000,000 1,250,000 1,500,000 1,750,000 2,000,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses Grant Expenses EXPENDITURE ALLOCATION 52.6% Salaries & Benefits 4.3% Supplies & Materials 3.0% Maintenance & Operations 2.3% Contract Services 0.2% Utilities 36.2% Capital Expenses 1.6% Grant Expenses The City of Sanger, Texas Page 59 Official Budget 2022-23 MUNICIPAL COURT The City of Sanger Municipal Court is responsible for the adjudication of criminal matters arising from events occurring within the City. The Municipal Court tracks and collects fines and warrants, holds court to adjudicate cases and renders fines to the appropriate state agency. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger. PERFORMANCE INDICATORS Indicator 2020-21 2019-20 2018-19 Citations Filed 1,032 516 635 Deferred Disposition Requests 144 41 161 Driver Safety Course Requests 56 17 38 Deferred Dispositions 150 41 113 Cases Closed by Driver Safety Courses 58 17 32 Full Payment/Time Served 443 219 267 BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Court Clerk 1 1 1 Deputy Court Clerk 1 1 1 Municipal Judge (Part-Time) 2 2 2 Total Budgeted Positions 4 4 4 The City of Sanger, Texas Page 60 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 139,619 159,000 142,924 174,000 $15,000 9.43% Supplies & Materials 3,933 11,800 4,329 13,700 $1,900 16.10% Maintenance & Operations 840 900 840 920 $20 2.22% Contract Services 10,853 5,900 2,397 5,000 ($900) -15.25% Court Costs 56,198 61,800 53,879 68,870 $7,070 11.44% Total 211,443 239,400 204,369 262,490 23,090 9.64% EXPENDITURE BY CATEGORY - 25,000 50,000 75,000 100,000 125,000 150,000 175,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Court Costs EXPENDITURE ALLOCATION 66.3%, Salaries & Benefits 5.2%, Supplies & Materials 0.4%, Maintenance & Operations 1.9%, Contract Services 26.2%, Court Costs The City of Sanger, Texas Page 61 Official Budget 2022-23 DEVELOPMENT SERVICES The City of Sanger Development Services Department issues business related permits and provides inspection services for both new and existing construction. Development Services also reviews and approves construction plans and documents and works with builders and property owners on development issues. Development Services is also responsible for planning and zoning and provides support for the planning and zoning commission. Development Services maintains the comprehensive master plan, zoning maps and city limits maps and files the necessary documents with the County. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Encourage the establishment of new businesses and the expansion of existing businesses in Sanger.  Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger. PERFORMANCE INDICATORS Indicator 2020-21 2019-20 2018-19 Residential Permits Issued 182 235 118 Residential Inspections Performed 3,107 3,035 1,664 Commercial Permits Issued 23 23 12 Commercial Inspections Performed 536 467 476 Miscellaneous Permits Issued 473 389 362 Miscellaneous Inspections Performed 779 782 602 BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Development Service Director 1 1 1 Building Inspector 1 1 1 Community Enhancement Officer 1 1 1 Chief Building Official 0 0 1 Planning Technician 0 0 1 Administrative Assistant I 0 0 1 Planner 1 1 0 Plans Examiner 1 1 0 Permit Technician 1 1 0 Total Budgeted Positions 6 6 6 The City of Sanger, Texas Page 62 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 372,135 485,300 370,000 498,800 $13,500 2.78% Supplies & Materials 31,186 38,000 31,039 43,500 $5,500 14.47% Maintenance & Operations 1,848 5,300 2,666 5,300 $0 0.00% Contract Services 47,830 158,454 85,265 235,300 $76,846 48.50% Utilities 152 475 452 600 $125 26.32% Total 453,151 687,529 489,422 783,500 95,971 13.96% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities EXPENDITURE ALLOCATION 60.4% Salaries & Benefits 6.0% Supplies & Materials 0.7% Maintenance & Operations 32.7% Contract Services 0.1% Utilities The City of Sanger, Texas Page 63 Official Budget 2022-23 STREETS The City of Sanger Street Department is responsible for maintaining the roads, streets, alleys, sidewalks and right of ways in the City of Sanger. They also maintain street signs. The Street Department serves as the liaison with contractors building new streets or rehabilitating old streets. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Improve Sanger’s street network. PERFORMANCE INDICATORS Indicator 2020-21 2019-20 2018-19 Road Hazards Assessed & Corrected 76 116 166 Traffic & Street Signs Installed or Repaired 35 108 58 Miscellaneous Items 69 31 86 BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Streets Superintendent 1 1 1 Utility Worker 3 3 4 Total Budgeted Positions 4 4 5 The City of Sanger, Texas Page 64 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 212,316 255,500 195,539 352,800 97,300 38.08% Supplies & Materials 4,834 14,269 3,530 15,300 1,031 7.23% Maintenance & Operations 45,892 203,500 184,966 233,000 29,500 14.50% Contract Services 774 - - - - - Utilities 48,704 55,000 50,302 55,000 - 0.00% Capital Expenses 38,968 37,044 - 193,135 156,091 421.37% Debt Service 51,535 51,535 51,535 51,535 - 0.00% Total 403,023 616,848 485,872 900,770 283,922 46.03% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses Debt Service EXPENDITURE ALLOCATION 49.9% Salaries & Benefits 2.2% Supplies & Materials 32.9% Maintenance & Operations 0.0% Contract Services 7.8% Utilities 7.3% Debt Service The City of Sanger, Texas Page 65 Official Budget 2022-23 PARKS & RECREATION The City of Sanger Parks Department is responsible for the maintenance operations associated with all City Park and Facilities. The Parks department is also responsible for all building maintenance operations throughout the organization. The Parks Department is responsible for the brush removal program and vector control operations. For several years, the functions of Parks and Recreation were accounted for in two separate departments. These functions have been combined into a single Parks & Recreation Department in the current year, the result of reorganization and shifting of public events to the Marketing Department. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Encourage development and preservation of the Historic Sanger Downtown area.  Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities. PERFORMANCE INDICATORS Indicator 2020-21 2019-20 2018-19 Acres Mowed 2,030 2,030 1,505 Brush Orders Completed 760 760 1,470 BUDGETED PERSONNEL SCHEDULE Functions of the Facilities Department are handled by personnel in the Parks Department. Although there are no employees working solely in Facilities, beginning this year, ten percent of salaries and benefits from Parks Department personnel are being allocated to Facilities. Position Title 2020-21 2021-22 2022-23 Parks & Recreation Director 0 0 0.9 Public Works Director 0.5 0.5 0 Recreation Coordinator 1 1 1 Crew Leader 1 1 0.9 Grounds Maintenance Worker 2 2 3.6 Total Budgeted Positions 4.5 4.5 6.4 The City of Sanger, Texas Page 66 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 305,560 362,400 291,028 450,200 87,800 24.23% Supplies & Materials 37,015 56,800 15,926 23,700 (33,100) -58.27% Maintenance & Operations 58,326 78,792 77,174 105,550 26,758 33.96% Contract Services 130,299 241,700 103,770 247,000 5,300 2.19% Utilities 19,324 24,600 21,895 18,600 (6,000) -24.39% Capital Expenses 15,221 - - 18,000 18,000 - Total 565,745 764,292 509,793 863,050 98,758 12.92% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses EXPENDITURE ALLOCATION 52.2% Salaries & Benefits 2.7% Supplies & Materials 12.2% Maintenance & Operations 28.6% Contract Services 2.2% Utilities 2.1% Capital Expenses The City of Sanger, Texas Page 67 Official Budget 2022-23 LIBRARY The City of Sanger Library provides written, audio and video materials for loan to the public. The library also provides computer and internet access free of charge. Librarians assist customers with researching a wide range of subjects. The Library also provides a wide range of educational programs to both adults and children. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities. PERFORMANCE INDICATORS Indicator 2020-21 2019-20 2018-19 Physical Items Checked Out 15,356 15,356 27,302 eBooks Checked Out 1,244 1,244 123 Patron Library Visits 13,893 13,893 35,147 BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Library Director 1 1 1 Librarian / Social Media 1 1 1 Children's Library Assistant 0 1 1 Library Aide 1 1 1 Library Aide (Part-Time) 3 2 2 Total Budgeted Positions 6 6 6 The City of Sanger, Texas Page 68 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 247,253 299,800 267,090 336,500 36,700 12.24% Supplies & Materials 24,613 65,979 43,579 46,683 (19,296) -29.25% Maintenance & Operations 5,250 6,775 5,046 5,643 (1,132) -16.71% Contract Services 8,229 4,550 6,364 6,600 2,050 45.05% Total 285,345 377,104 322,079 395,426 18,322 4.86% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services EXPENDITURE ALLOCATION 85.1% Salaries & Benefits 11.8% Supplies & Materials 1.4% Maintenance & Operations 1.7% Contract Services The City of Sanger, Texas Page 69 Official Budget 2022-23 SOLID WASTE The City contracts with Progressive Waste Management for solid waste services in the City of Sanger. Progressive is responsible for providing residential and commercial waste management services to the businesses, schools, and residents of Sanger. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger. No personnel are budgeted in this department. The City of Sanger, Texas Page 70 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Contract Services 927,891 1,005,000 1,001,518 1,150,000 145,000 14.43% Total Solid Waste 927,891 1,005,000 1,001,518 1,150,000 145,000 14.43% EXPENDITURE BY CATEGORY - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget EXPENDITURE ALLOCATION 100.0% Contract Services The City of Sanger, Texas Page 71 Official Budget 2022-23 TRANSFERS The City transfers between funds in order to properly account for revenues and expenses. No personnel are budgeted in this department. The City of Sanger, Texas Page 72 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Transfer to CIP Fund 520,725 1,318,511 1,318,511 - (1,318,511) -100.00% Transfer to Storm Recovery 400,000 300,000 400,000 300,000 - 0.00% Transfer to Internal Service 855,474 1,260,155 1,260,155 1,381,504 121,349 9.63% Total 1,776,199 2,878,666 2,978,666 1,681,504 (1,197,162) -41.59% EXPENDITURE BY CATEGORY - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Transfer to CIP Fund Transfer to Storm Recovery Transfer to Internal Service EXPENDITURE ALLOCATION 17.8% Transfer to Storm Recovery 82.2% Transfer to Internal Service The City of Sanger, Texas Page 73 Official Budget 2022-23 DEBT SERVICE FUND OVERVIEW The Debt Service Fund accounts for the receipt of funds from a tax levy and other sources for the accumulation of funds to meet the principal and interest obligations on General Fund Obligations. The City Charter of the City of Sanger, Texas, does not provide a debt limit. Under the provision of State law (Article XI, Section 5, of the State of Texas Constitution), the maximum tax rate is limited to $2.50 per $100 assessed valuation. For 2021-22, the City’s adopted tax rate for 2021-22 was $0.616576 per $100 assessed valuation for maintenance and operations plus $0.017135 per $100 assessed valuation for debt service, equaling $0.633711, which is well below the maximum rates allowed by law. For 2022-23, a lowered tax rate of $0.589497 is proposed. The basis of accounting for the Debt Service Fund for both financial reporting and budgeting is the modified accrual basis. The City of Sanger, Texas Page 74 Official Budget 2022-23 DEBT SERVICE FUND BUDGET SUMMARY Property Tax 100% DEBT SERVICE FUND REVENUES Debt Service 87% Transfers Out 13% DEBT SERVICE FUND EXPENDITURES The City of Sanger, Texas Page 75 Official Budget 2022-23 DEBT SERVICE FUND BUDGET SUMMARY Beginning Fund Balance 476,285 803,402 803,402 797,291 Revenues Property Taxes 573,987 154,158 159,000 154,485 Interest Income 1,003 5,000 8,250 5,000 Bond Proceeds 339,600 - - - Total General Fund Revenues 914,590 159,158 167,250 159,485 Other Sources Transfers In 212,500 212,500 212,500 212,500 Total Other Sources 212,500 212,500 212,500 212,500 Total Revenues/Sources 1,127,090 371,658 379,750 371,985 Expenditures Debt Service 739,585 334,326 334,326 336,554 Total Expenditures 739,585 334,326 334,326 336,554 Other Uses Transfers Out 60,388 51,535 51,535 51,535 Total Other Uses 60,388 51,535 51,535 51,535 Total Expenses/Uses 799,973 385,861 385,861 388,089 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 803,402 789,199 797,291 781,187 327,117 (14,203) (6,111) (16,104) 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 76 Official Budget 2022-23 DEBT SERVICE FUND EXPENDITURES Co 2007 Principal 34,000 35,700 35,700 37,400 Co 2007 Interest 11,894 10,398 10,398 8,826 Refunding 2012 Principal 145,200 - - - Refunding 2012 Interest 3,994 - - - Co 2013 Principal 22,200 22,800 22,800 24,000 Co 2013 Interest 13,004 1,404 1,404 720 Refunding 2016 Principal 248,400 - - - Refunding 2016 Interest 9,936 - - - Refunding 2019 Principal 200,000 210,000 210,000 220,000 Refunding 2019 Interest 48,500 40,500 40,500 32,100 2021 GO Refunding Principal - 6,600 6,600 6,600 2021 GO Refunding Interest 1,207 5,174 5,174 5,158 Bond Administration Fees 1,250 1,750 1,750 1,750 Total Debt Payments 739,585$ 334,326$ 334,326$ 336,554$ 74-Transfers Transfer To General Fund 60,388 51,535 51,535 51,535 Total 74-Transfers 60,388 51,535 51,535 51,535 Total Debt Service 799,973 385,861 385,861 388,089 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 77 Official Budget 2022-23 DEBT SERVICE FUND REQUIREMENTS BY YEAR Fiscal Year Principal Interest Total 2023 336,252 50,086 386,338 2024 343,467 37,282 380,749 2025 304,700 24,792 329,492 2026 318,700 13,404 332,104 2027 76,000 6,285 82,285 2028 31,800 3,889 35,689 2029 33,000 3,390 36,390 2030 33,000 2,786 35,786 2031 34,200 2,149 36,349 2032 34,800 1,472 36,272 2033 34,800 741 35,541 Total 1,580,719 146,276 1,726,995 The City of Sanger, Texas Page 78 Official Budget 2022-23 The City of Sanger, Texas Page 79 Official Budget 2022-23 ENTERPRISE FUND OVERVIEW The Enterprise Fund is the financial structure used for the accounting of providing water, sanitary sewer, and electric services to the residents of the City and for the billing and collection of charges to customers for these services. The Enterprise Fund receives revenues from the billing of water, wastewater, and electric, interest income and other miscellaneous revenue sources. The Enterprise Fund includes these departments: o Water o Waste Water o Electric The basis of accounting for the Enterprise Fund for both financial reporting and budgeting is the accrual basis. The City of Sanger, Texas Page 80 Official Budget 2022-23 ENTERPRISE FUND BUDGET SUMMARY Charges for Services 46% Fees 1% Interest Income 0% Miscellaneous 48% Use of Fund Balance 5% Enterprise Fund Revenues Salaries & Benefits 12% Supplies & Materials 1% Maintenance & Operations 50% Contract Services 3% Utilities 2% Capital Expenses 2% Debt Service 0% Transfers Out 30% Enterprise Fund Expenditures The City of Sanger, Texas Page 81 Official Budget 2022-23 ENTERPRISE FUND BUDGET SUMMARY Beginning Fund Balance 16,728,529 20,015,603 20,015,603 21,021,290 Revenues Water 2,177,059 2,256,187 2,242,750 2,334,878 Waste Water 2,135,174 2,596,830 2,503,313 2,715,028 Electric 7,632,029 7,752,500 7,741,330 7,692,500 Penalties and Fees 178,222 220,000 178,638 200,000 Interest Income 347,087 200,000 52,079 60,000 Miscellaneous 99,600 101,500 73,140 119,000 Total Enterprise Fund Revenues 12,569,171 13,127,017 12,791,250 13,121,406 Other Sources Transfers In 2,459,294 - - - Use of Fund Balance - - - 1,311,192 Total Other Sources 2,459,294 - - 1,311,192 Total Revenues/Sources 15,028,465 13,127,017 12,791,250 14,432,598 Expenditures Salaries & Benefits 1,161,850 1,454,500 1,339,473 1,714,900 Supplies & Materials 92,642 119,700 91,905 122,170 Maintenance & Operations 6,229,088 7,391,185 5,938,688 7,254,795 Contract Services 155,587 419,545 134,621 455,245 Utilities 281,163 308,300 266,066 309,100 Capital Expenses - 46,227 46,227 249,132 Debt Service 29,378 4,000 4,781 2,000 Total Expenditures 7,949,708 9,743,457 7,821,761 10,107,342 Other Uses Transfers Out 3,791,683 3,963,802 3,963,802 4,325,256 Total Other Uses 3,791,683 3,963,802 3,963,802 4,325,256 Total Expenses/Uses 11,741,391 13,707,259 11,785,563 14,432,598 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 20,015,603 19,435,361 21,021,290 21,021,290 3,287,074 (580,242) 1,005,687 - 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 82 Official Budget 2022-23 ENTERPRISE FUND REVENUES Water Water Billing 2,136,896 2,206,187 2,232,750 2,284,878 Water Meter Revenue 40,163 50,000 10,000 50,000 Total Water 2,177,059 2,256,187 2,242,750 2,334,878 Total Sewer 2,135,174 2,596,830 2,503,313 2,715,028 Electric Electric Income 7,541,647 7,600,000 7,650,000 7,600,000 Security Lights 54,937 65,000 55,000 55,000 Construction Income 6,515 60,000 8,134 10,000 Pole Contact Fee 19,565 20,000 26,086 20,000 Saw Set Pole Fees 8,990 7,500 1,360 7,500 Meter Bases 375 - 750 - Total Electric 7,632,029 7,752,500 7,741,330 7,692,500 Penalties & Fees Penalties 107,212 150,000 125,119 130,000 Service Fees 71,010 70,000 53,519 70,000 Total Penalties and Fees 178,222 220,000 178,638 200,000 Total Interest 347,087 200,000 52,079 60,000 Miscellaneous Income Miscellaneous Income 22,508 25,000 2,495 25,000 Credit Card Fees 64,325 65,000 69,280 82,500 Returned Check Fees 34 1,500 1,365 1,500 Sale of Capital Assets 1,085 10,000 - 10,000 Insurance Damage Reimbursement 11,648 - - - Total Miscellaneous 99,600 101,500 73,140 119,000 Total Revenues 12,569,171 13,127,017 12,791,250 13,121,406 Transfers Transfer from Electric Storm Fund 2,459,294 - - - Use of Fund Balance - - - 1,311,192 Total Transfers 2,459,294 - - 1,311,192 Total Enterprise Fund Revenues & Transfers15,028,465 13,127,017 12,791,250 14,432,598 2019-20 Actual 2020-21 Budget 2020-21 Estimated 2021-22 Budget The City of Sanger, Texas Page 83 Official Budget 2022-23 WATER The City of Sanger Water Department is responsible for providing safe drinking water to the citizens of Sanger by operating and maintaining the city's potable water system providing service to over 2000 customers. The Department maintains approximately 44 miles of city water mains and 2,750 water meters. The City of Sanger’s public water system received a "Superior" rating from the TCEQ and extensively test the water to assure that the system maintains this rating. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. PERFORMANCE INDICATORS Indicator 2018-19 2019-20 2020-21 Water Meters Read Manually 8,434 12,174 13,818 Service Orders Completed 1,159 1,404 4,621 BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Water Superintendent 1 1 1 Utility Worker 4 5 7 AMR Technician 1 1 1 Total Budgeted Positions 6 7 9 The City of Sanger, Texas Page 84 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 316,158 462,000 361,596 595,000 133,000 28.79% Supplies & Materials 22,534 22,300 25,192 30,050 7,750 34.75% Maintenance & Operations 662,215 723,369 700,000 881,983 158,614 21.93% Contract Services 71,136 120,750 52,786 136,750 16,000 13.25% Utilities 131,636 156,000 117,172 156,400 400 0.26% Capital Expenses - 46,227 46,227 49,132 2,905 6.28% Total 1,203,679 1,530,646 1,302,973 1,849,315 318,669 20.82% EXPENDITURE BY CATEGORY - 150,000 300,000 450,000 600,000 750,000 900,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses EXPENDITURE ALLOCATION 32.2% Salaries & Benefits 1.6% Supplies & Materials 47.7% Maintenance & Operations 7.4% Contract Services 8.5% Utilities 2.7% Capital Expenses The City of Sanger, Texas Page 85 Official Budget 2022-23 WASTE WATER The City of Sanger Waste Water Department is responsible for collection of all wastewater and its transmission to the wastewater treatment plant. This service includes the operation, maintenance, and repair of all sewer lines, manholes, and lift stations connected to the wastewater collection system. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 WWTP Superintendent 1 1 1 Plant Operator 2 2 2 Total Budgeted Positions 3 3 3 The City of Sanger, Texas Page 86 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 218,463 225,900 225,000 253,100 27,200 12.04% Supplies & Materials 28,060 40,700 31,961 38,500 (2,200) -5.41% Maintenance & Operations 289,503 326,729 336,751 411,612 84,883 25.98% Contract Services 9,789 3,000 3,000 6,000 3,000 100.00% Utilities 148,089 150,000 147,346 150,000 - 0.00% Total 693,904 746,329 744,058 859,212 112,883 15.13% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities EXPENDITURE ALLOCATION 29.5% Salaries & Benefits 4.5% Supplies & Materials 47.9% Maintenance & Operations 0.7% Contract Services 17.5% Utilities The City of Sanger, Texas Page 87 Official Budget 2022-23 ELECTRIC The City of Sanger Electric Department provides service to over 2000 customers and maintains the electrical distribution system with the City's Electric service area. Sanger Electric is dedicated to providing fast, reliable and professional service at the lowest cost possible. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Director of Electric Utilities 1 1 1 Foreman 1 1 1 Crew Leader 1 1 1 Line Tech 3 3 3 Electric Tech/Groundman 1 1 1 Administrative Assistant 1 1 1 Total Budgeted Positions 8 8 8 The City of Sanger, Texas Page 88 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 627,229 766,600 752,877 866,800 100,200 13.07% Supplies & Materials 42,048 56,700 34,752 53,620 (3,080) -5.43% Maintenance & Operations 5,277,370 6,341,087 4,901,937 5,961,200 (379,887) -5.99% Contract Services 74,662 295,795 78,835 312,495 16,700 5.65% Utilities 1,438 2,300 1,548 2,700 400 17.39% Capital Expenses - - - 200,000 200,000 - Debt Service 29,378 4,000 4,781 2,000 (2,000) -50.00% Total 6,052,125 7,466,482 5,774,730 7,398,815 (67,667) -0.91% EXPENDITURE BY CATEGORY - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Expenses Debt Service EXPENDITURE ALLOCATION 11.7% Salaries & Benefits 0.7% Supplies & Materials 80.6% Maintenance & Operations 4.2% Contract Services 0.0% Utilities Capital Expenses 3% Debt Service 0% The City of Sanger, Texas Page 89 Official Budget 2022-23 TRANSFERS The City transfers between funds in order to properly account for revenues and expenses. No personnel are budgeted in this department. The City of Sanger, Texas Page 90 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Transfer to Debt Servioce 1,800,000 1,900,000 1,900,000 2,158,000 258,000 13.58% Transfer - PILOT 85,000 95,000 95,000 95,000 - 0.00% Transfer to Internal Service 1,307,541 1,890,231 1,890,231 2,072,256 182,025 9.63% Transfer to Enterprise CIP 447,142 78,571 78,571 - (78,571) -100.00% Transfer to Electric Storm Recovery 152,000 - - - - - Total 3,791,683 3,963,802 3,963,802 4,325,256 361,454 9.12% EXPENDITURE BY CATEGORY - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Transfer to Debt Servioce Transfer to Enterprise CIP Transfer to Electric Storm Recovery Transfer - PILOT Transfer to Internal Service EXPENDITURE ALLOCATION 49.9% Transfer to Debt Servioce 2.2% Transfer - PILOT 47.9% Transfer to Internal Service The City of Sanger, Texas Page 91 Official Budget 2022-23 ENTERPRISE DEBT SERVICE FUND OVERVIEW The Enterprise Debt Service Fund accounts for the accumulation of funds to meet the principal and interest obligations on Enterprise Fund Obligations. The Enterprise Debt Service Fund was established for the 2020-2021 year. In prior years, debt service was accounted for in the Enterprise Fund itself. The basis of accounting for the Enterprise Debt Service Fund for both financial reporting and budgeting is the accrual basis. The City of Sanger, Texas Page 92 Official Budget 2022-23 ENTERPRISE DEBT SERVICE FUND BUDGET SUMMARY Transfers In 100% ENTERPRISE DEBT SERVICE FUND REVENUES Debt Service 100% ENTERPRISE DEBT SERVICE FUND EXPENDITURES The City of Sanger, Texas Page 93 Official Budget 2022-23 ENTERPRISE DEBT SERVICE FUND BUDGET SUMMARY Beginning Fund Balance - (36,364) (36,364) (23,755) Other Sources Transfers In 1,808,853 1,900,000 1,900,000 2,158,000 Total Other Sources 1,808,853 1,900,000 1,900,000 2,158,000 Expenditures Debt Service 1,845,217 1,887,391 1,887,391 2,132,761 Total Expenditures 1,845,217 1,887,391 1,887,391 2,132,761 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance (36,364) (23,755) (23,755) 1,484 (36,364) 12,609 12,609 25,239 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 94 Official Budget 2022-23 ENTERPRISE DEBT SERVICE FUND EXPENDITURES Co 2007 Principal 66,000 69,300 69,300 72,600 Co 2007 Interest 23,086 20,182 20,182 17,134 Refunding 2012 Principal 184,800 - - - Refunding 2012 Interest 5,082 - - - Co 2013 Principal 162,800 167,200 167,200 176,000 Co 2013 Interest 95,364 10,296 10,296 5,280 2015 CO Principal 180,000 295,000 295,000 285,000 2015 CO Interest 185,200 178,075 178,075 169,375 2016 CO Principal 291,600 - - - 2016 CO Interest 11,664 - - - 2017 CO Principal - 85,000 85,000 100,000 2017 CO Interest 366,600 366,600 366,600 364,050 2021 GO Refunding Principal - 48,400 48,400 48,400 2021 GO Refunding Interest - 37,942 37,942 37,822 2021 CO Principal - 55,000 55,000 295,000 2021 CO Interest 271,271 551,896 551,896 559,600 Bond Administration Fees 1,750 2,500 2,500 2,500 Total Debt Service 1,845,217 1,887,391 1,887,391 2,132,761 2019-20 Actual 2020-21 Budget 2020-21 Estimated 2021-22 Budget The City of Sanger, Texas Page 95 Official Budget 2022-23 ENTERPRISE DEBT SERVICE FUND REQUIREMENTS BY YEAR Fiscal Year Principal Interest Total 2023 977,000 1,153,260 2,130,260 2024 1,026,400 1,124,142 2,150,542 2025 1,060,300 1,097,742 2,158,042 2026 1,131,300 1,071,801 2,203,101 2027 1,169,000 1,043,259 2,212,259 2028 1,243,200 1,006,796 2,249,996 2029 1,302,000 965,560 2,267,560 2030 1,342,000 921,325 2,263,325 2031 1,410,800 874,861 2,285,661 2032 1,525,200 826,082 2,351,282 2033 1,600,200 770,592 2,370,792 2034 1,710,000 712,063 2,422,063 2035 1,795,000 644,406 2,439,406 2036 1,905,000 573,294 2,478,294 2037 1,980,000 510,250 2,490,250 2038 1,620,000 435,000 2,055,000 2039 1,665,000 386,400 2,051,400 2040 1,715,000 336,450 2,051,450 2041 1,765,000 285,000 2,050,000 2042 1,820,000 232,050 2,052,050 2043 1,875,000 177,450 2,052,450 2044 1,930,000 121,200 2,051,200 2045 1,990,000 63,300 2,053,300 2046 120,000 3,600 123,600 Total 35,677,400 15,335,882 51,013,282 The City of Sanger, Texas Page 96 Official Budget 2022-23 The City of Sanger, Texas Page 97 Official Budget 2022-23 INTERNAL SERVICE FUND OVERVIEW Revenues and expenses related to services provided to organizations inside the City on a cost reimbursement basis are accounted for in an Internal Service Fund. The City’s Internal Service Fund was set up to provide administrative support services to other Funds of the City. The Internal Service Fund receives revenues from transfers from the General Fund and the Enterprise Fund. The Internal Service Fund includes these departments: o Mayor and Council o Administration o City Secretary o Legal o Public Works Administration o Finance o Human Resources o Facilities o Non-Departmental The basis of accounting for the Internal Service Fund for both financial reporting and budgeting is the modified accrual basis. The City of Sanger, Texas Page 98 Official Budget 2022-23 INTERNAL SERVICE FUND BUDGET SUMMARY Transfers In 100% Internal Service Fund Revenues Salaries & Benefits 52% Supplies & Materials 16% Maintenance & Operations 3%Contract Services 25% Utilities 4% Internal Service Fund Expenditures The City of Sanger, Texas Page 99 Official Budget 2022-23 INTERNAL SERVICE FUND BUDGET SUMMARY Beginning Fund Balance (85,854) (99,782) (99,782) 431,207 Revenues Transfers from Enterprise Fund 1,307,541 1,890,231 1,890,231 2,072,256 Transfers from General Fund 855,474 1,260,155 1,260,155 1,381,504 Transfers from 4A - - - 15,000 Transfers from 4B - - - 15,000 Total Internal Service Fund Revenues 2,163,015 3,150,386 3,150,386 3,483,760 Expenditures Salaries & Benefits 1,207,815 1,659,601 1,547,068 1,773,900 Supplies & Materials 187,896 478,032 226,263 549,965 Maintenance & Operations 68,439 97,053 63,136 92,200 Contract Services 601,184 764,950 659,094 837,850 Utilities 107,534 113,750 102,402 143,000 Capital Expenses - 37,000 21,434 86,845 Debt Service 4,075 - - - Total Expenditures 2,176,943 3,150,386 2,619,397 3,483,760 Excess of Revenues over Expenditures (13,928) - 530,989 - Ending Fund Balance (99,782) (99,782) 431,207 431,207 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 100 Official Budget 2022-23 The City of Sanger, Texas Page 101 Official Budget 2022-23 CITY COUNCIL The City of Sanger City Council is elected by the people and is responsible for setting general policy and direction for city government. The Council's budget is split between the General fund and Enterprise fund. The Council's budget includes funds to pay for legal services, audit services and elections. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Encourage the establishment of new commercial business and the expansion of existing businesses in Sanger.  Encourage development and preservation of the Historic Sanger Downtown area.  Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger.  Improve Sanger’s street network.  Encourage job development in Sanger.  Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities. PERFORMANCE INDICATORS Indicator 2018-19 2019-20 2020-21 Ordinances Passed by Council 33 37 26 Resolutions Approved by Council 12 12 11 Proclamations Approved by Council 5 5 4 Plats Approved by Council 26 21 No personnel are budgeted in this department. The City of Sanger, Texas Page 102 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Supplies & Materials 15,108 14,800 14,000 16,800 2,000 13.51% Contract Services 211,177 179,000 175,000 44,000 (135,000) -75.42% Total 226,285 193,800 189,000 60,800 (133,000) -68.63% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Supplies & Materials Contract Services EXPENDITURE ALLOCATION 27.6% Supplies & Materials 72.4% Contract Services The City of Sanger, Texas Page 103 Official Budget 2022-23 ADMINISTRATION The City of Sanger Administration Department is responsible for the daily operations of all aspects of city government. Administration includes the offices of City Manager and Assistant City Manager. Administration is responsible for the day-to-day general governmental administration of the City including directing, coordinating, and reviewing operations in the implementation of policy directive provided by Sanger’s Mayor and City Council. In prior years, City Secretary, Human Resources, and Legal functions were included in the department. For the 2022- 23 year, these functions are being moved to separate departments. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Encourage the establishment of new commercial business and the expansion of existing businesses in Sanger.  Encourage development and preservation of the Historic Sanger Downtown area.  Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger.  Improve Sanger’s street network.  Encourage job development in Sanger.  Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 City Manager 1 1 1 Assistant City Manager 0 1 1 City Secretary 1 1 0 Human Resources/Special Projects Director 0 1 0 City Attorney 0 1 0 HR Coordinator 1 0 0 Total Budgeted Positions 3 5 2 The City of Sanger, Texas Page 104 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 358,043 740,800 712,312 382,800 (358,000) -48.33% Supplies & Materials 30,410 17,650 22,116 20,000 2,350 13.31% Maintenance & Operations - 10,000 - 10,000 - 0.00% Contract Services 8,424 15,200 510 10,000 (5,200) -34.21% Utilities 211 750 474 1,000 250 33.33% Total 397,088 784,400 735,412 423,800 (360,600) -45.97% EXPENDITURE BY CATEGORY - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities EXPENDITURE ALLOCATION 90.3% Salaries & Benefits 4.7% Supplies & Materials 2.4% Maintenance & Operations 2.4% Contract Services 0.2% Utilities The City of Sanger, Texas Page 105 Official Budget 2022-23 CITY SECRETARY The City of Sanger City Secretary Department is responsible for implementing policies and procedures for the dissemination of information to the Sanger City Council, City staff, voters, and citizens of Sanger. For the 2022- 23 budget year, the functions of the City Secretary are being split off from Administration to a separate stand-alone department. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger. PERFORMANCE INDICATORS Indicator 2018-19 2019-20 2020-21 Open Records Requests Completed 155 179 213 BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 City Secretary 0 0 1 Total Budgeted Positions 0 0 1 The City of Sanger, Texas Page 106 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits - - - 119,400 119,400 - Supplies & Materials - - - 42,200 42,200 - Contract Services - - - 10,000 10,000 - Total - - - 171,600 171,600 - EXPENDITURE BY CATEGORY - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Contract Services EXPENDITURE ALLOCATION 69.6% Salaries & Benefits 24.6% Supplies & Materials 5.8% Contract Services The City of Sanger, Texas Page 107 Official Budget 2022-23 LEGAL The City of Sanger Legal Department is responsible for providing legal support for operations of the city on matters including litigation support, contract negotiation, and municipal court. For the 2022-23 budget year, legal functions are being split off from Administration to a separate stand-alone department. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 City Attorney 0 0 1 Total Budgeted Positions 0 0 1 The City of Sanger, Texas Page 108 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits - - - 198,300 198,300 - Supplies & Materials - - - 10,905 10,905 - Contract Services - - - 101,000 101,000 - Total - - - 310,205 310,205 - EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Contract Services EXPENDITURE ALLOCATION 48.2% Salaries & Benefits 2.7% Supplies & Materials 24.6% Contract Services 24.6% Contract Services The City of Sanger, Texas Page 109 Official Budget 2022-23 PUBLIC WORKS The City of Sanger Public Works Administration Department oversees the street, park and recreation, fleet maintenance, water and wastewater departments. It is also responsible for engineering services and liaison with outside engineers and contractors. Public Works Administration oversees most capital improvement projects. Engineering also reviews new subdivision plans and serves as the flood plain coordinator. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage development of quality single family residential neighborhoods in Sanger.  Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger.  Improve Sanger’s street network. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Public Works Director 0.5 0.5 1 Administrative Assistant 0.5 0.5 1 Total Budgeted Positions 1 1 2 The City of Sanger, Texas Page 110 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 87,125 230,900 189,046 230,600 (300) -0.13% Supplies & Materials 13,849 17,050 3,194 17,800 750 4.40% Maintenance & Operations 890 3,250 4,058 4,200 950 29.23% Contract Services 8,638 6,250 4,193 86,250 80,000 1280.00% Total 110,502 257,450 200,491 338,850 81,400 31.62% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services EXPENDITURE ALLOCATION 68.1% Salaries & Benefits 5.3% Supplies & Materials 1.2% Maintenance & Operations 25.5% Contract Services The City of Sanger, Texas Page 111 Official Budget 2022-23 FINANCE The Finance Department is responsible for all financial, accounting and utility billing operations of the City. The department is charged with managing the City’s resources through budgeting, purchasing, and reporting. Operations of the department include billing and collecting for all utilities, handling all accounts receivable and payable, preparing payroll for all City employees, paying all City obligations, and preparing the City’s annual budget document. Finance assists Administration with budget monitoring and provides reports to the City Manager and City Council on current revenues and expenditures. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger. PERFORMANCE INDICATORS # $ # $ # $ Vendor Invoices Processed 6,672 20,189,174$ 6,560 20,025,263$ 7,211 17,822,882$ Purchase Orders Issued 277 3,375,961$ 1,979 6,225,121$ 201 3,459,354$ Employee Payroll Items Processed 2,400 3,118,675$ 2,342 3,221,366$ 2,328 3,378,891$ Utility Bills Generated 43,086 12,903,975$ 45,385 12,948,464$ 46,807 13,232,590$ Utility Payments Processed 42,185 12,939,452$ 42,942 12,858,831$ 45,137 13,054,979$ 2018-19 Indicator 2020-212019-20 BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Finance Director 1 1 1 Accountant 1 1 1 Accounting Technician 1 1 1 Customer Service Manager 1 1 1 Customer Service Representative 2 2 2 Total Budgeted Positions 6 6 6 The City of Sanger, Texas Page 112 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 436,971 494,600 460,916 525,500 30,900 6.25% Supplies & Materials 52,208 62,500 19,728 97,000 34,500 55.20% Contract Services 79,631 77,500 66,472 94,500 17,000 21.94% Capital Outlay - - 21,434 - - - Debt Service 4,075 - - - - - Total 572,885 634,600 568,550 717,000 82,400 12.98% EXPENDITURE BY CATEGORY - 100,000 200,000 300,000 400,000 500,000 600,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Contract Services Capital Outlay Debt Service EXPENDITURE ALLOCATION 73.3% Salaries & Benefits 13.5% Supplies & Materials 13.2% Contract Services The City of Sanger, Texas Page 113 Official Budget 2022-23 HUMAN RESOURCES The City of Sanger Human Resources Department is responsible for providing support to City departments, current employees, and job applicants and providing expertise on salaries, benefits, training, and employee relations. For the 2022-23 budget year, the human resources functions are being split off from Administration to a separate stand-alone department. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Human Resources Director 0 0 1 Total Budgeted Positions 0 0 1 The City of Sanger, Texas Page 114 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits - - - 132,100 132,100 - Supplies & Materials - - - 6,600 6,600 - Contract Services - - - 39,000 39,000 - Total - - - 177,700 177,700 - EXPENDITURE BY CATEGORY - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Contract Services EXPENDITURE ALLOCATION 74.3%, Salaries & Benefits 3.7%, Supplies & Materials 21.9%, Contract Services The City of Sanger, Texas Page 115 Official Budget 2022-23 ENGINEERING ***During the 2021-22 year, the Engineering Department was closed down. Engineering functions have been either outsourced or reassigned to other City departments. Prior year budget information is presented here to maintain a historical perspective. *** BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Engineer 1 0 0 Inspector 1 0 0 Administrative Assistant 0.5 0 0 Total Budgeted Positions 2.5 0 0 The City of Sanger, Texas Page 116 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 237,175 58,395 58,395 - (58,395) -100.00% Supplies & Materials 16,518 11,205 1,949 - (11,205) -100.00% Maintenance & Operations 3,632 449 449 - (449) -100.00% Contract Services 41,431 60,000 35,851 - (60,000) -100.00% Total 298,756 130,049 96,644 - (130,049) -100.00% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services The City of Sanger, Texas Page 117 Official Budget 2022-23 MARKETING The City of Sanger Marketing Department is responsible for promoting and marketing the City of Sanger and informing citizens about the City’s services, programs, and special events. The department was created during the 2021-22 budget year to support the needs of our growing city. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage the establishment of new commercial business and the expansion of existing businesses in Sanger.  Encourage development and preservation of the Historic Sanger Downtown area. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Marketing Director 0 1 1 Total Budgeted Positions 0 1 1 The City of Sanger, Texas Page 118 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits - 97,250 92,500 118,000 20,750 21.34% Supplies & Materials - 300,750 114,372 282,260 (18,490) -6.15% Maintenance & Operations - 500 500 500 - 0.00% Contract Services - 30,000 35,226 35,000 5,000 16.67% Capital Outlay - 37,000 - - (37,000) -100.00% Total - 465,500 242,598 435,760 (29,740) -6.39% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Capital Outlay EXPENDITURE ALLOCATION 27.1%, Salaries & Benefits 64.8%, Supplies & Materials 0.1%, Maintenance & Operations 8.0%, Contract Services The City of Sanger, Texas Page 119 Official Budget 2022-23 FLEET SERVICES ***During the 2021-22 year, the Fleet Services Department was closed down. Functions of the department have been either outsourced or reassigned to other City departments. Prior year budget information is presented here to maintain a historical perspective.*** BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Mechanic 1 0 0 Total Budgeted Positions 1 0 0 The City of Sanger, Texas Page 120 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 61,527 1,456 1,456 - (1,456) -100.00% Supplies & Materials 6,277 177 177 - (177) -100.00% Maintenance & Operations 9,542 1,854 1,854 - (1,854) -100.00% Contract Services 3,999 - - - - - Total 81,345 3,487 3,487 - (3,487) -100.00% EXPENDITURE BY CATEGORY - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services The City of Sanger, Texas Page 121 Official Budget 2022-23 FACILITIES The City of Sanger Facilities Department provides for the maintenance and operations of City-owned buildings. This includes repairs, janitorial services and utilities. The Facilities Department has been created for the 2016-2017 budget and assumes the cost of facility maintenance that has previously been accounted for in individual departments. BUDGETED PERSONNEL SCHEDULE Functions of the Facilities Department are handled by personnel in the Parks Department. Although there are no employees working solely in Facilities, beginning this year, ten percent of salaries and benefits from Parks Department personnel are being allocated to Facilities. Position Title 2020-21 2021-22 2022-23 Parks & Recreation Director 0 0 0.1 Crew Leader 0 0 0.1 Grounds Maintenance Worker 0 0 0.4 Total Budgeted Positions 0 0 0.6 The City of Sanger, Texas Page 122 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits - - - 41,900 41,900 - Supplies & Materials 14,356 15,900 10,241 18,400 0.00% Maintenance & Operations 45,768 75,000 50,101 68,000 (7,000) -9.33% Contract Services 39,626 50,000 40,626 56,500 6,500 13.00% Utilities 107,323 113,000 101,928 142,000 29,000 25.66% Capital Outlay - - - 86,845 86,845 - Total 207,073 253,900 202,896 413,645 157,245 61.93% EXPENDITURE BY CATEGORY - 25,000 50,000 75,000 100,000 125,000 150,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Utilities Capital Outlay EXPENDITURE ALLOCATION 5.2% Salaries & Benefits 8.4% Maintenance & Operations 7.0% Contract Services 17.6% Utilities 10.7% Capital Outlay The City of Sanger, Texas Page 123 Official Budget 2022-23 NON-DEPARTMENTAL The City of Sanger Non-Departmental Department budget accounts for expenses that cannot easily be attributed to any specific department. This includes postage, property and liability insurance and tax collection fees. No personnel are budgeted in this department. The City of Sanger, Texas Page 124 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 26,974 36,200 32,443 25,300 (10,900) -30.11% Supplies & Materials 39,170 38,000 40,486 38,000 - 0.00% Maintenance & Operations 8,607 6,000 6,174 9,500 3,500 58.33% Contract Services 208,258 347,000 301,216 361,600 14,600 4.21% Total 283,009 427,200 380,319 434,400 7,200 1.69% EXPENDITURE BY CATEGORY - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services EXPENDITURE ALLOCATION 5.8% Salaries & Benefits 8.7% Supplies & Materials 2.2% Maintenance & Operations 83.2% Contract Services The City of Sanger, Texas Page 125 Official Budget 2022-23 4A CORPORATION FUND OVERVIEW The Sanger Texas Industrial Development Corporation (4A Fund) is funded by a 1/2 cent sales tax. It is used to help new and existing businesses expand in Sanger with a primary goal of bringing jobs to the Sanger community. Primary jobs include manufacturing and distribution jobs that increase income and enhance the local economy. The mission of the Sanger Economic Development Corporation is to continually expand our property and sales tax base, encourage creation of jobs, promote tourism, improve the quality of life, and facilitate a self-sustaining local economy for the City by attracting, assisting, and retaining businesses, as well as investing in our community needs to foster growth and encourage tourism. The Sanger Texas Industrial Development Corporation is governed by a board of five directors, all of whom are appointed by the City Council of the City of Sanger. The 4A Fund was incorporated in the state of Texas as a non- profit industrial development corporation under section 4A of the Development Corporation Act of 1979. The basis of accounting for the 4A Corporation Fund for both financial reporting and budgeting is the modified accrual basis. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Encourage the establishment of new commercial business and the expansion of existing businesses in Sanger.  Encourage development and preservation of the Historic Sanger Downtown area.  Improve the relationship of mixed land uses and provide optimum opportunity to live and work in Sanger.  Encourage job development in Sanger. The City of Sanger, Texas Page 126 Official Budget 2022-23 4A CORPORATION FUND BUDGET SUMMARY Taxes 100% Interest Income 0% 4A Fund Revenues Salaries & Benefits 44% Supplies & Materials 34% Maintenance & Operations 4% Contract Services 18% 4A Fund Expenditures The City of Sanger, Texas Page 127 Official Budget 2022-23 4A CORPORATION FUND BUDGET SUMMARY Beginning Fund Balance 2,337,944 2,800,442 2,800,442 3,411,016 Revenues Taxes 641,438 600,000 679,336 800,000 Grant Revenue 5,000 - - - Interest Income 881 10,000 22,617 22,000 Total Revenues 647,319 610,000 701,953 822,000 Other Sources Transfers In 25,000 - - - Total Other Sources 25,000 - - - Total Revenues/Sources 672,319 610,000 701,953 822,000 Expenditures Salaries & Benefits 107,002 56,700 55,212 60,500 Supplies & Materials 22,807 36,375 14,047 47,750 Maintenance & Operations 890 5,601 1,000 5,800 Contract Services 49,122 34,800 21,120 25,000 Total Expenditures 179,821 133,476 91,379 139,050 Other Uses Transfers Out 30,000 - - 15,000 Total Other Uses 30,000 - - 15,000 Total Expenses/Uses 209,821 133,476 91,379 154,050 Excess of Revenues/Sources 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 128 Official Budget 2022-23 4A CORPORATION FUND REVENUES Taxes Sales Tax 641,438 600,000 679,336 800,000 Total Taxes 641,438 600,000 679,336 800,000 Miscellaneous Income Grant Revenue 5,000 - - - Interest Income 881 10,000 22,617 22,000 Total Miscellaneous 5,881 10,000 22,617 22,000 Transfers Transfers from 4B Fund 25,000 - - - Total Transfers 25,000 - - - Total Revenues 672,319 610,000 701,953 822,000 2019-20 Actual 2020-21 Budget 2020-21 Estimated 2021-22 Budget The City of Sanger, Texas Page 129 Official Budget 2022-23 ECONOMIC DEVELOPMENT The mission of the Economic Development Department is to retain, strengthen and diversity our local economy while capitalizing on our location in north central Texas. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Director of Economic Development 1 0.5 0.5 Total Budgeted Positions 1 0.5 0.5 The City of Sanger, Texas Page 130 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 107,002 56,700 55,212 60,500 3,800 6.70% Supplies & Materials 22,807 36,375 14,047 47,750 11,375 31.27% Maintenance & Operations 890 5,601 1,000 5,800 199 3.55% Contract Services 49,122 34,800 21,120 25,000 (9,800) -28.16% Transfers 30,000 - - 15,000 15,000 - Total 209,821 133,476 91,379 154,050 20,574 15.41% EXPENDITURE BY CATEGORY - 20,000 40,000 60,000 80,000 100,000 120,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Transfers EXPENDITURE ALLOCATION 39.3% Salaries & Benefits 31.0% Supplies & Materials 3.8% Maintenance & Operations 16.2% Contract Services 9.7% Transfers The City of Sanger, Texas Page 131 Official Budget 2022-23 4B CORPORATION FUND OVERVIEW The Sanger Texas Economic Development Corporation (4B Fund) is funded by a 1/2 cent sales tax. It is used to enhance the local economy by improving the quality of life. This includes park improvements, downtown streetscaping and other projects that make living in Sanger enjoyable. The Sanger Texas Economic Development Corporation is governed by a board of seven directors, all of whom are appointed by the City Council of the City of Sanger. The 4B Fund was incorporated in the state of Texas as a nonprofit industrial development corporation under Section 4B of the Development Corporation Act of 1979. The basis of accounting for the 4B Corporation Fund for both financial reporting and budgeting is the modified accrual basis. SANGER COMPREHENSIVE PLAN GOALS SUPPORTED THROUGH OPERATIONS  Maintain and improve upon the existing country living atmosphere of Sanger.  Develop, expand, and maintain the Sanger Park System with a variety of parks, open spaces and recreational facilities. The City of Sanger, Texas Page 132 Official Budget 2022-23 4B CORPORATION FUND BUDGET SUMMARY Taxes 100% Interest Income 0% 4B Fund Revenues Salaries & Benefits 7% Supplies & Materials 4% Maintenance & Operations …Contract Services 2% Capital Outlay 55% Grant Expenses 6% Transfers 26% 4B Fund Expenditures The City of Sanger, Texas Page 133 Official Budget 2022-23 4B CORPORATION FUND BUDGET SUMMARY Beginning Fund Balance 1,535,134 1,890,161 1,890,161 2,258,648 Revenues Taxes 641,438 600,000 679,336 800,000 Interest Income 3,918 10,000 25,691 30,000 Total Revenues 645,356 610,000 705,027 830,000 Expenditures Salaries & Benefits 1,341 56,700 54,590 60,500 Supplies & Materials 1,341 20,775 12,000 38,750 Maintenance & Operations - 600 450 800 Contract Services 50,147 24,800 12,000 15,000 Grant Expenses - 50,000 15,000 50,000 Capital Outlay - 200,000 30,000 479,000 Total Expenditures 52,829 352,875 124,040 644,050 Other Uses Transfers Out 237,500 212,500 212,500 227,500 Total Other Uses 237,500 212,500 212,500 227,500 Total Expenses/Uses 290,329 565,375 336,540 871,550 Excess of Revenues/Sources over Expenditures/Uses 355,027 44,625 368,487 (41,550) Ending Fund Balance 1,890,161 1,934,786 2,258,648 2,217,098 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 134 Official Budget 2022-23 4B CORPORATION REVENUES Taxes Sales Tax 641,438 600,000 679,336 800,000 Total Taxes 641,438 600,000 679,336 800,000 Miscellaneous Income Interest Income 3,918 10,000 25,691 30,000 Total Miscellaneous 3,918 10,000 25,691 30,000 Total Revenues 645,356 610,000 705,027 830,000 2019-20 Actual 2020-21 Budget 2020-21 Estimated 2021-22 Budget The City of Sanger, Texas Page 135 Official Budget 2022-23 ECONOMIC DEVELOPMENT The mission of the Economic Development Department is to retain, strengthen and diversity our local economy while capitalizing on our location in north central Texas. BUDGETED PERSONNEL SCHEDULE Position Title 2020-21 2021-22 2022-23 Director of Economic Development 0 0.5 0.5 Total Budgeted Positions 0 0.5 0.5 The City of Sanger, Texas Page 136 Official Budget 2022-23 DEPARTMENTAL EXPENDITURES Category 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Difference Percent Change Salaries & Benefits 1,341 56,700 54,590 60,500 3,800 6.70% Supplies & Materials 7,408 20,775 12,000 38,750 17,975 86.52% Maintenance & Operations - 600 450 800 200 33.33% Contract Services 50,147 24,800 12,000 15,000 (9,800) -39.52% Grant Expenses - 50,000 15,000 50,000 - 0.00% Capital Outlay - 200,000 100,000 479,000 279,000 139.50% Transfers 237,500 212,500 212,500 227,500 15,000 7.06% Total 296,396 565,375 406,540 871,550 306,175 54.15% EXPENDITURE BY CATEGORY - 100,000 200,000 300,000 400,000 500,000 600,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget Salaries & Benefits Supplies & Materials Maintenance & Operations Contract Services Grant Expenses Capital Outlay Transfers EXPENDITURE ALLOCATION 6.9% Salaries & Benefits 4.4% Supplies & Materials 0.1% Maintenance & Operations 1.7% Contract Services 5.7% Grant Expenses 55.0% Capital Outlay 26.1% Transfers The City of Sanger, Texas Page 137 Official Budget 2022-23 SPECIAL REVENUE FUNDS OVERVIEW The City utilizes Special Revenue Funds to account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes. The City utilizes the following Special Revenue Funds: o Hotel Occupancy Tax Fund o General Storm Recovery Fund o Electric Storm Recovery Fund o Beautification Fund o Library Restricted Fund o Parkland Dedication Fund o Roadway Impact Fee Fund o Court Security Fund o Court Technology Fund o Child Safety Fee Fund o Police Donations Fund o Fire Donations Fund o Parks Donations Fund o Library Donations Fund The basis of accounting for the Special Revenue Funds for both financial reporting and budgeting is the modified accrual basis. The City of Sanger, Texas Page 138 Official Budget 2022-23 SPECIAL REVENUE FUNDS BUDGET SUMMARY Fees 36% Fines 2% Interest Income 10% Miscellaneous 52% Transfers 0% Special Revenue Funds Revenues Salaries & Benefits 3%Supplies & Materials 33% Contract Services 64% Special Revenue Funds Expenditures The City of Sanger, Texas Page 139 Official Budget 2022-23 COMBINED SCHEDULE OF ALL SPECIAL REVENUE FUNDS Beginning Fund Balance 2,267,313 3,156,440 3,156,440 3,737,729 Revenues Taxes 52,115 35,000 52,765 50,000 Fees 263,986 260,000 210,000 210,000 Fines 14,810 14,250 14,474 13,600 Interest Income 19,218 17,850 20,150 20,150 Miscellaneous 1,935 7,500 5,450 7,500 Total Special Revenue Fund Revenues 352,064 334,600 302,839 301,250 Other Sources Transfers 552,000 300,000 300,000 300,000 Total Other Sources 552,000 300,000 300,000 300,000 Total Revenues/Sources 904,064 634,600 602,839 601,250 Expenditures Salaries & Benefits 73 1,000 450 1,000 Supplies & Materials - 13,000 5,000 13,000 Contract Services 14,864 25,500 16,100 25,100 Total Special Revenue Fund Expenditures 14,937 39,500 21,550 39,100 Excess of Revenues/Sources over Expenditures/Uses Ending Fund Balance 3,156,440 3,751,540 3,737,729 4,299,879 889,127 595,100 581,289 562,150 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 140 Official Budget 2022-23 HOTEL OCCUPANCY TAX FUND The Hotel Occupancy Tax Fund is used to account for revenues from the Hotel Occupancy Tax. Beginning Fund Balance 59,175 99,290 99,290 138,055 Revenues Hotel Occupancy Tax 133,453 35,000 148,289 50,000 Tax Abatements (81,338) (95,524) Total Hotel Tax Fund Revenues 52,115 35,000 52,765 50,000 Expenditures Contract Services 12,000 14,000 14,000 14,000 Total Hotel Tax Fund Expenditures 12,000 14,000 14,000 14,000 Excess of Revenues/Sources 40,115 21,000 38,765 36,000 over Expenditures/Uses Ending Fund Balance 99,290 120,290 138,055 174,055 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget GENERAL STORM RECOVERY FUND The General Storm Recovery Fund is used to account for monies set aside to repair damage of General Fund assets caused by storms and other weather events. This fund is new for the 2020-2021 budget year Beginning Fund Balance - 400,000 400,000 700,000 Revenues/Other Sources Transfer from General Fund 400,000 300,000 300,000 300,000 Total General Storm Recovery Fund Revenues/Sources400,000 300,000 300,000 300,000 Excess of Revenues/Sources 400,000 300,000 300,000 300,000 over Expenditures/Uses Ending Fund Balance 400,000 700,000 700,000 1,000,000 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 141 Official Budget 2022-23 ELECTRIC STORM RECOVERY FUND The Electric Storm Recovery Fund is utilized to account for funds to repair the City’s electric system following storms and other weather events. Prior to the 2020-2021 budget, these funds were accounted for in the Enterprise Fund. For 2020-2021, a separate fund is established to account for these monies. Beginning Fund Balance 1,042,953 1,213,988 1,213,988 1,233,988 Revenues/Other Sources Interest 19,035 17,500 20,000 20,000 Transfer from Enterprise Fund 152,000 - - - Total General Storm Recovery Fund Revenues/Sources171,035 17,500 20,000 20,000 Excess of Revenues/Sources 171,035 17,500 20,000 20,000 over Expenditures/Uses Ending Fund Balance 1,213,988 1,231,488 1,233,988 1,253,988 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget BEAUTIFICATION FUND The Beautification Fund is utilized to account for revenue sources dedicated to beautification of City-owned parks by the Parks Department. Beginning Fund Balance 5,526 5,526 5,526 5,526 Revenues Miscellaneous - 500 - 500 Total Beautification Fund Revenues - 500 - 500 Expenditures Supplies & Materials - 6,000 - 6,000 Total Beautification Fund Expenditures - 6,000 - 6,000 Excess of Revenues/Sources - (5,500) - (5,500) over Expenditures/Uses Ending Fund Balance 5,526 26 5,526 26 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 142 Official Budget 2022-23 LIBRARY RESTRICTED FUND The Library Restricted Fund is utilized to account for specific revenues set aside for future Library expenditures. Beginning Fund Balance 98,329 98,512 98,512 98,662 Revenues Interest Income 183 350 150 150 Total Library Restricted Fund Revenues 183 350 150 150 Ending Fund Balance 98,512 98,862 98,662 98,812 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget PARKLAND DEDICATION FUND The Parkland Dedication Fund is utilized to account for the collection and expenditure of Parkland Dedication Fees. City Ordinances requires new residential developments to provide for community parks and open spaces. Beginning Fund Balance 104,428 104,428 104,428 114,428 Revenues Parkland Dedication Fee - 10,000 10,000 10,000 Total Parkland Dedication Fund Revenues - 10,000 10,000 10,000 Ending Fund Balance 104,428 114,428 114,428 124,428 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 143 Official Budget 2022-23 ROADWAY IMPACT FEE FUND The Roadway Impact Fee Fund is utilized to account for the collection and expenditure of Roadway Impact Fee. City Ordinances requires each development to pay a share of the cost of such capital improvements or roadway expenditures attributable to such new development. Beginning Fund Balance 882,093 1,146,079 1,146,079 1,346,079 Revenues Roadway Impact Fee 263,986 250,000 200,000 200,000 Total Roadway Impact Fee Fund Revenues 263,986 250,000 200,000 200,000 Ending Fund Balance 1,146,079 1,396,079 1,346,079 1,546,079 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget COURT SECURITY FUND The Court Security Fund is utilized to account for Court Security Fees imposed on convictions by the Sanger Municipal Court. Beginning Fund Balance 11,034 13,972 13,972 16,022 Revenues Fines 3,011 2,750 2,500 2,500 Total Court Security Fund Revenues 3,011 2,750 2,500 2,500 Expenditures Salaries & Benefits 73 1,000 450 1,000 Total Court Security Fund Expenditures 73 1,000 450 1,000 Excess of Revenues/Sources 2,938 1,750 2,050 1,500 over Expenditures/Uses Ending Fund Balance 13,972 15,722 16,022 17,522 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 144 Official Budget 2022-23 COURT TECHNOLOGY FUND The Court Technology Fund is utilized to account for Court Technology Fees imposed on convictions by the Sanger Municipal Court. Beginning Fund Balance 435 92 92 92 Revenues Fines 2,521 2,500 2,100 2,100 Total Court Technology Fund Revenues 2,521 2,500 2,100 2,100 Expenditures Contract Services 2,864 2,500 2,100 2,100 Total Court Technology Fund Expenditures 2,864 2,500 2,100 2,100 Excess of Revenues/Sources (343) - - - over Expenditures/Uses Ending Fund Balance 92 92 92 92 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget CHILD SAFETY FUND The Child Safety Fund is utilized to account for Child Safety Fees collected by the Sanger Municipal Court. Beginning Fund Balance 45,292 54,570 54,570 64,444 Revenues Fines 9,278 9,000 9,874 9,000 Total Child Safety Fee Fund Revenues 9,278 9,000 9,874 9,000 Expenditures Contract Services - 9,000 - 9,000 Total Child Safety Fee Fund Expenditures - 9,000 - 9,000 Excess of Revenues/Sources 9,278 - 9,874 - over Expenditures/Uses Ending Fund Balance 54,570 54,570 64,444 64,444 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 145 Official Budget 2022-23 POLICE DONATIONS FUND The Police Donations Fund is utilized to account for specific funds donated for the exclusive use of the Sanger Police Department. Beginning Fund Balance 78 78 78 78 Revenues Miscellaneous - 5,000 5,000 5,000 Total Police Donations Fund Revenues - 5,000 5,000 5,000 Expenditures Supplies & Materials - 5,000 5,000 5,000 Total Police Donations Fund Expenditures - 5,000 5,000 5,000 Excess of Revenues/Sources - - - - over Expenditures/Uses Ending Fund Balance 78 78 78 78 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget FIRE DONATIONS FUND The Fire Donations Fund is utilized to account for specific funds donated for the exclusive use of the Sanger Fire Department. Beginning Fund Balance 6,150 6,775 6,775 7,075 Revenues Miscellaneous 625 1,000 300 1,000 Total Fire Donations Fund Revenues 625 1,000 300 1,000 Expenditures Supplies & Materials - 1,000 - 1,000 Total Fire Donations Fund Expenditures - 1,000 - 1,000 Excess of Revenues/Sources 625 - 300 - over Expenditures/Uses Ending Fund Balance 6,775 6,775 7,075 7,075 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 146 Official Budget 2022-23 PARK DONATIONS FUND The Park Donations Fund is utilized to account for specific funds donated for the exclusive use of the Parks Department. Beginning Fund Balance 5,561 6,311 6,311 6,311 Revenues Miscellaneous 750 500 - 500 Total Park Donations Fund Revenues 750 500 - 500 Expenditures Supplies & Materials - 500 - 500 Total Court Security Fund Expenditures - 500 - 500 Excess of Revenues/Sources 750 - - - over Expenditures/Uses Ending Fund Balance 6,311 6,311 6,311 6,311 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget LIBRARY DONATIONS FUND The Library Donations Fund accounts for specific funds donated for the exclusive use of the Sanger Public Library. Beginning Fund Balance 6,259 6,819 6,819 6,969 Revenues Miscellaneous 560 500 150 500 Total Library Donations Fund Revenues 560 500 150 500 Expenditures Supplies & Materials - 500 - 500 Total Library Donations Fund Expenditures - 500 - 500 Excess of Revenues/Sources 560 - 150 - over Expenditures/Uses Ending Fund Balance 6,819 6,819 6,969 6,969 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 147 Official Budget 2022-23 The City of Sanger, Texas Page 148 Official Budget 2022-23 CA P I T A L P R O J E C T S F U N DS The City of Sanger, Texas Page 149 Official Budget 2022-23 CAPITAL PROJECTS FUNDS OVERVIEW The City maintains two separate funds for capital projects. The Capital Projects Fund was established to account for general capital projects and the Enterprise Projects Fund was established to account for those capital projects specifically related to the water, wastewater and electric utility. The basis of accounting for the Capital Projects Funds for both financial reporting and budgeting is the modified accrual basis. The City of Sanger, Texas Page 150 Official Budget 2022-23 COMBINED CAPITAL PROJECTS FUNDS BUDGET SUMMARY Fees & Services 5% Use of Bond Proceeds 94% Interest Income 1% Combined Capital Projects Funds Revenues Capital Projects 100% Combined Capital Projects Funds Expenditures The City of Sanger, Texas Page 151 Official Budget 2022-23 CAPITAL PROJECTS FUND Beginning Fund Balance 1,997,068 2,276,284 2,276,284 2,895,095 Revenues Interest Income - 10,000 48,000 45,000 Total Capital Projects Fund Revenues - 10,000 48,000 45,000 Other Sources Transfers From General Fund 520,725 1,318,511 1,318,511 - Transfers From Enterprise CIP - - - - Total Other Sources 520,725 1,318,511 1,318,511 - Total Revenues/Sources 520,725 1,328,511 1,366,511 45,000 Expenditures 2020-2021 Street Rehab Program 241,509 27,700 27,700 - 2021-2022 Street Rehab Program - 270,000 270,000 - Technology Upgrade Program - 500,000 250,000 - Building Improvements - 200,000 200,000 - 2022-2023 Street Rehab Program - - - 340,000 Street Maintenance/Utility Program - - - 425,000 Marion Road - Arterial - - - 750,000 Downtown Improvements - - - 350,000 Joint Public Safety Facility - - - 300,000 Total Expenditures 241,509 997,700 747,700 2,165,000 Excess of Revenues over Expenditures 279,216 330,811 618,811 (2,120,000) Ending Fund Balance 2,276,284 2,607,095 2,895,095 775,095 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 152 Official Budget 2022-23 ENTERPRISE CAPITAL PROJECTS FUND Beginning Fund Balance 4,284,456 3,964,424 3,964,424 3,843,353 Revenues Water Tap Fees 320,350 300,000 100,000 350,000 Sewer Tap Fees 428,000 380,000 100,000 400,000 Interest Income 102,521 50,000 150,000 150,000 Total Revenues 850,871 730,000 350,000 900,000 Other Sources Transfer from Enterprise Fund 447,142 78,571 78,571 - Transfer from 4A 30,000 - - - Use of Bond Funds - 13,000,000 6,000,000 14,000,000 Total Other Sources 477,142 13,078,571 6,078,571 14,000,000 Total Revenues/Sources 1,328,013 13,808,571 6,428,571 14,900,000 Expenditures Wastewater Treatment Plant 183,549$ - 10,571 - Outfall Pipeline/Stream Restoration 249,250 - - - Cowling Water Ground Storage Rehab 69,668 - - - Acker Water Ground Storage Rehab 53,132 2,600,000 35,000 - Relocation of Utilities along FM 455 622,113 6,000,000 6,000,000 - Railroad Lift Station 2,871 500,000 - 500,000 Relocation of Utilities along I-35 - 4,100,000 200,000 9,922,910 WWTP Bar Screen Repair 41,096 - 44,300 - WWTP Phase 2 TPDES 2,684 - 12,000 - Water Line Bolivar to Cherry - 167,095 167,095 - Elm Street Sewer Repair - - 55,676 - FM 455 Sewer Extension - - 25,000 - Keaton Road Sewer Line - 320,000 - 320,000 Fifth Street Sewer Rehabilitation - - - 350,000 Metering System - - - 3,200,000 Water System Improvements - - - 1,200,000 Wastewater System Improvements - - - 335,000 Electric System Improvements - - - 350,000 Total Expenditures 1,224,363 13,687,095 6,549,642 16,177,910 Other Uses Transfers Out 423,682 - - - Total Other Uses 423,682 - - - Total Expenses/Uses 1,648,045 13,687,095 6,549,642 16,177,910 Excess of Revenues over Expenditures (320,032) 121,476 (121,071) (1,277,910) Ending Fund Balance 3,964,424 4,085,900 3,843,353 2,565,443 2020-21 Actual 2021-22 Budget 2021-22 Estimated 2022-23 Budget The City of Sanger, Texas Page 153 Official Budget 2022-23 CAPITAL IMPROVEMENT PLAN INTRODUCTION This plan addresses capital improvement needs in the City of Sanger over the next five years and funding sources for projects expected in FY 2022--23. As in any city with older infrastructure, maintenance and rehabilitation of existing infrastructure is an ongoing and never- ending process. It is easy to get behind and hard to catch up. Over the past several years more and more resources have been dedicated to infrastructure maintenance and replacement and several projects have been completed. Several years ago, City staff and Council identified streets within the city in need of rehabilitation. The rehabilitation of these streets was divided into five separate phases. Phase I through IV of the program have been completed in the past four years. Phase V is slated for 2021-22, and Phases VI through VIII are slated for each succeeding year. This trend of rehabilitating our infrastructure is a trend that needs to continue as we try to catch up with our aging and ailing infrastructure. As Sanger continues to experience growth, the City’s focus remains on improving the infrastructure needed to support development. In 2021, Council approved the issuance of $18,615,000 to be used for: the relocation of utilities along both FM-455 and I-35, the WWTP outfall stream restoration, and the purchase of a new automated meter reading system for water and electric meters. PROJECTS FM 455 Expansion: The City is currently in the process of relocating the utilities (water, wastewater, electric) along FM 455 in preparation for TXDOT widening the road. The project is on track and it is expected to be completed within the next 24 months. IH-35 Expansion TXDOT is planning to expand IH-35 through Sanger. As a result, the City will have to relocate utilities (water, sewer, electric). The City has already initiated the design engineering work and anticipates starting construction in FY 2022- 23. While designing the project, the City will take into consideration betterment options that would accommodate future growth in the area. Enterprise Capital Projects The City Council recently approved a contract to replace the current water and electric meter system with a new AMI system. The new metering infrastructure will provide greater accuracy, increased efficiency, and will enhance the overall customer service experience. The project is expected to be implemented in the next 9 to 12 months. At the recommendation of Alan Plummer and Associates, Council decided to refurbish the existing wastewater treatment plant rather than build a new one in January 2014. Construction began in May of 2017 and has now been completed. Recently, the City engaged KSA Engineering to assist with site validation for a new wastewater treatment plant in an effort to prepare for future growth. Several other system improvements (water, wastewater, and electric) are scheduled for FY 2022-23 such as rehabilitating several water storage tanks, replacing several sewer lines, and installing additional bays at the electric substation. Streets and Thoroughfares: Many streets in Sanger are in dire need of rehabilitation. In the last few years, we have concentrated our efforts on improving the thoroughfares that carry the most traffic. This does not mean that there are no residential streets that are in as bad or worse condition. In 2019, we outlined a Street Improvement Plan and already implemented Phases I The City of Sanger, Texas Page 154 Official Budget 2022-23 through IV. This year we are proposing to move forward with Phase V as outlined in the Project Status section of this report. However, focusing on thoroughfares as our priority gives us the greatest positive impact for most people. If funding can be secured in the future, Marion Rd., Bolivar from 5th to the Service Road, Belz Road, and Duck Creek will also be candidates for improvement. In addition, the City has also allocated funding toward establishing a Street Utility Maintenance Program (SUMP). In FY 2022-23, the City will engage with an engineering firm to outline the program. Parks and Facilities: The Sanger 2040 Comprehensive Plan has identified a new park to be constructed in Downtown. In FY 2022-23, the City will initiate the concept design and begin the acquisition of property needed for the development of the park. The City will also begin evaluating Phase II of Porter Park located on the east side of IH-35. Funds are also being allocated towards a new Joint Public Safety facility. The design engineering is scheduled for FY 2023-24. Facility needs that are farther out on the horizon include the expansion of the library and building a new municipal complex as identified in the Sanger 2040 Comprehensive Plan. A remodel of the community center also needs to be considered as it is becoming worn and dated. PROJECT STATUS Projects in progress continuing in FY 2021-22 Anticipated Funding Source  Railroad Lift Station Easement Acquisition Enterprise CIP/Bond Funds  I-35 Expansion - Relocation of Utilities (engineering only) Enterprise CIP/Reimbursed by TxDOT New Projects in 2021-22 Anticipated Funding Source  Rehabilitation of Several Streets (Phase V): Capital Projects Fund  Keaton Road Sewer Line Enterprise CIP  Fifth Street Sewer Rehabilitation Enterprise CIP  AMI Metering System Enterprise CIP/Bond Funds  Water System Improvements Enterprise CIP/Bond Funds  Wastewater System Improvements Enterprise CIP/Bond Funds  Electric System Improvements Enterprise CIP Funds Future Projects Anticipated Funding Source  Phase V through VIII – Street Rehabilitation Capital Projects Fund  Rebuild & Expand Marion Road TBD  Utility Road Ground Storage TBD The City of Sanger, Texas Page 155 Official Budget 2022-23 CONCLUSION As you can see, a myriad of projects is planned over the next ten years and they will keep us very busy. Many of these projects will go unseen to most citizens but they all directly impact the quality of life in the community by ensuring reliable utilities, safe streets and sidewalks, and adequate public facilities. It is important to note again that even after all of this work is complete, there will still be other needs arise as our infrastructure continues to age. Like every City, we will continue the struggle of balancing needs and resources to maintain current facilities and infrastructure, prepare for growth, and improve the quality of life in our community. The City of Sanger, Texas Page 156 Official Budget 2022-23 The City of Sanger, Texas Page 157 Official Budget 2022-23 CAPITAL PROJECTS FIVE YEAR SUMMARY 2020-2026 General Capital Projects 2020-2021 2021-2022 2022-2023 Actual Estimate Budget Capital Projects Fund Balance 1,997,068 2,276,284 2,895,095 Project Funding Interest Income - 48,000 45,000 Transfers from General Fund 520,725 1,318,511 - Bond Funds - - - Total Funding Sources 520,725 1,366,511 45,000 Expenditures Street Rehab - Phase III 241,509 27,700 - Street Rehab - Phase IV - 270,000 - Technology Updates - 250,000 - Building Improvements - 200,000 - Street Rehab - Phase V - - 340,000 Street/Utility Maintenance Program - - 425,000 Downtown Improvements - - 350,000 Marion Road - Arterial (city only) - - 750,000 Joint Public Safety Facility - - 300,000 Street Rehab - Phase VI - - - Porter Park Phase II - - - Street Rehab - Phase VII - - - Belz Rd/Jennifer Cir - - - Street Rehab - Phase VIII - - - Duck Creek Rd. - - - Municipal Complex - - - Total Expenditures 241,509 747,700 2,165,000 Funding Sources less Expenditures 279,216 618,811 (2,120,000) Capital Projects Fund Balance 2,276,284 2,895,095 775,095 The City of Sanger, Texas Page 158 Official Budget 2022-23 2023-2024 2024-2025 2025-2026 2026-2027 Projected Projected Projected Projected 775,095 7,205,095 505,095 3,045,095 50,000 50,000 50,000 50,000 500,000 600,000 600,000 600,000 10,000,000 - 11,000,000 - 10,550,000 650,000 11,650,000 650,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,600,000 2,600,000 - - 800,000 4,000,000 4,000,000 - 420,000 - - - 300,000 - - - - 250,000 - - - 500,000 4,200,000 - - - 675,000 - - - 235,000 2,100,000 - - - 1,000,000 4,120,000 7,350,000 9,110,000 3,100,000 6,430,000 (6,700,000) 2,540,000 (2,450,000) 7,205,095 505,095 3,045,095 595,095 The City of Sanger, Texas Page 159 Official Budget 2022-23 CAPITAL PROJECTS FIVE YEAR SUMMARY 2020-2026 Enterprise Capital Projects 2020-2021 2021-2022 2022-2023 Actual Estimate Budget Capital Projects Fund Balance 4,284,456 3,964,424 3,843,353 Project Funding Water Tap Fees 320,350 100,000 350,000 Sewer Tap Fees 428,000 100,000 400,000 Use of Bond Funds - 6,000,000 14,000,000 Interest Income 102,521 150,000 150,000 Intergovernmental Income - - - Transfers from Enterprise Fund 447,142 78,571 - Transfers from 4A Fund 30,000 - - Total Funding Sources 1,328,013 6,428,571 14,900,000 Expenditures Wastewater Treatment Plant 183,549$ 10,571$ -$ Outfall Pipeline/Stream Restoration 249,250 - - Cowling Water Ground Storage Rehabilitation 69,668 - - Acker Water Ground Storage Rehabilitation 53,132 35,000 - Relocation of Utilities along FM 455 622,113 6,000,000 - Railroad Lift Station 2,871 - 500,000 Relocation of Utilities along I-35 - 200,000 9,922,910 WWTP Bar Screen Repair 41,096 44,300 - WWTP Phase 2 TPDES 2,684 12,000 - Water Line Bolivar to Cherry - 167,095 Elm Street Sewer Repair - 55,676 FM 455 Sewer Extension - 25,000 Keaton Road Sewer Line - - 320,000 Fifth Street Sewer Rehabilitation - - 350,000 Metering System - - 3,200,000 Water System Improvements - - 1,200,000 Wastewater System Improvements - - 335,000 Electric System Improvements - - 350,000 Utility Road Ground Storage - - - Transfers Out 423,682 - - Total Expenditures 1,648,045 6,549,642 16,177,910 Funding Sources less Expenditures (320,032) (121,071) (1,277,910) Capital Projects Fund Balance 3,964,424 3,843,353 2,565,443 The City of Sanger, Texas Page 160 Official Budget 2022-23 2023-2024 2024-2025 2025-2026 2026-2027 Projected Projected Projected Projected 2,565,443 8,915,443 8,265,443 8,365,443 350,000 350,000 350,000 350,000 400,000 400,000 400,000 400,000 - - - - 50,000 50,000 50,000 50,000 7,000,000 - - - 300,000 300,000 300,000 300,000 - - - - 8,100,000 1,100,000 1,100,000 1,100,000 -$ -$ -$ -$ - - - - - - - - - - - - - - - - 1,750,000 1,750,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,000,000 - - - 0 0 1,750,000 1,750,000 1,000,000 - 6,350,000 (650,000) 100,000 1,100,000 8,915,443 8,265,443 8,365,443 9,465,443 The City of Sanger, Texas Page 161 Official Budget 2022-23 The City of Sanger, Texas Page 162 Official Budget 2022-23 AP P E N DI X The City of Sanger, Texas Page 163 Official Budget 2022-23 GENERAL FUND 5-YEAR FINANCIAL PROJECTION Beginning Fund Balance 7,201,005 10,922,485 Revenues Taxes 5,962,103 6,756,786 Franchise Fees 910,840 981,054 Solid Waste 1,073,060 1,086,644 Licenses & Permits 466,076 228,957 Fines 147,322 143,552 Fire & EMS 806,077 2,138 Police & Animal Control 62,599 80,653 Parks & Recreation 10,510 18,631 Library 18,241 20,048 Interest Income 15,160 175,000 Miscellaneous 1,187,172 69,814 Total General Fund Revenues 10,659,160 9,563,277 Other Sources Transfers In 461,535 151,535 Use of Fund Balance - - Total Other Sources 461,535 151,535 Total Revenues/Sources 11,120,695 9,714,812 Expenditures Salaries & Benefits 3,498,576 3,641,186 Supplies & Materials 297,575 347,456 Maintenance & Operations 253,210 454,461 Contract Services 1,334,408 1,337,074 Utilities 77,325 85,172 Capital Expenses 54,189 430,131 Debt Service 51,535 51,535 Court Costs 56,198 53,879 Other - - Total Expenditures 5,623,016 6,400,894 Other Uses Transfers Out 1,776,199 2,978,666 Total Other Uses 1,776,199 2,978,666 Total Expenses/Uses 7,399,215 9,379,560 Ending Fund Balance 10,922,485 11,257,737 2020-21 Actual 2021-22 Estimated The City of Sanger’s Annual Budget is prepared matching available revenue sources and operational expenditures. This General Ledger Five-Year Financial Projection provides a broader perspective than the budget of any single year is able to provide. This projection includes the results of operations for the 2020-21 year as well as projected results for the 2021-22 year. Also included (as Year 1) is the current 2022-23 budget. Years 2-5 are projected based on a set percentage increase per each revenue or expenditure category. These percentages have been developed reviewing 3-year and 10-year trends for each category, while considering the current economy and growth projection for the City. While not a crystal ball, this projection is a useful planning tool. Future year budgets will obviously be developed considering the resources, needs and economy of that time period. The City of Sanger, Texas Page 164 Official Budget 2022-23 Projection Year 2 Year 3 Year 4 Year 5 Percentage 2023-2024 2024-2025 2025-2026 2026-27 Beginning Fund Balance 11,257,737 11,257,737 10,746,743 10,509,632 10,576,743 Revenues Taxes 7,561,000 7% 8,090,270 8,656,589 9,262,550 9,910,929 Franchise Fees 1,009,895 7% 1,080,588 1,156,229 1,237,165 1,323,767 Solid Waste 1,262,000 5% 1,325,100 1,391,355 1,460,923 1,533,969 Licenses & Permits 363,500 5% 381,675 400,759 420,797 441,837 Fines 155,755 8% 168,215 181,672 196,206 211,902 Fire & EMS 466,890 5% 490,235 514,747 540,484 567,508 Police & Animal Control 70,621 5% 74,152 77,860 81,753 85,841 Parks & Recreation 14,000 3% 14,420 14,853 15,299 15,758 Library 22,920 3% 23,608 24,316 25,045 25,796 Interest Income 225,000 5% 236,250 248,063 260,466 273,489 Miscellaneous 122,500 5% 128,625 135,056 141,809 148,899 Total General Fund Revenues 11,274,081 12,013,138 12,801,499 13,642,497 14,539,695 Other Sources Transfers In 146,535 2% 149,466 152,455 155,504 158,614 Use of Fund Balance 756,916 0.00% - - - - Total Other Sources 903,451 149,466 152,455 155,504 158,614 Total Revenues/Sources 12,177,532 12,162,604 12,953,954 13,798,001 14,698,309 Expenditures Salaries & Benefits 5,659,700 4% 5,886,088 6,121,532 6,366,393 6,621,049 Supplies & Materials 459,421 5% 482,392 506,512 531,838 558,430 Maintenance & Operations 553,413 5% 581,084 610,138 640,645 672,677 Contract Services 1,848,759 5% 1,941,197 2,038,257 2,140,170 2,247,179 Utilities 90,400 2% 92,208 94,052 95,933 97,852 Capital Expenses 1,707,930 5% 1,793,327 1,882,993 1,977,143 2,076,000 Debt Service 51,535 5% 54,112 56,818 59,659 62,642 Court Costs 68,870 3% 70,936 73,064 75,256 77,514 Other 56,000 2% 57,120 58,262 59,427 60,616 Total Expenditures 10,496,028 10,958,464 11,441,628 11,946,464 12,473,959 Other Uses Transfers Out 1,681,504 2% 1,715,134 1,749,437 1,784,426 1,820,115 Total Other Uses 1,681,504 1,715,134 1,749,437 1,784,426 1,820,115 Total Expenses/Uses 12,177,532 12,673,598 13,191,065 13,730,890 14,294,074 Ending Fund Balance 11,257,737 10,746,743 10,509,632 10,576,743 10,980,978 Projected 2022-23 Budget The City of Sanger, Texas Page 165 Official Budget 2022-23 DEPARTMENTAL CAPITAL REQUESTS To request departmental capital expenditures, City Department Directors complete a request form for each requested expenditure. These requests and supporting documentation are reviewed during individual and group budget planning meetings. Review of the items includes discussion of any available alternatives to the requested items. All capital requests are reviewed to determine if they are in sync with City Council goals and the City’s strategic plan. The following are the original requests submitted which are included in the current budget that have been approved. Some requests have been approved as submitted, some have been approved with modifications, and some were not approved for the current year. The City of Sanger, Texas Page 166 Official Budget 2022-23 The City of Sanger, Texas Page 167 Official Budget 2022-23 The City of Sanger, Texas Page 168 Official Budget 2022-23 The City of Sanger, Texas Page 169 Official Budget 2022-23 The City of Sanger, Texas Page 170 Official Budget 2022-23 The City of Sanger, Texas Page 171 Official Budget 2022-23 The City of Sanger, Texas Page 172 Official Budget 2022-23 The City of Sanger, Texas Page 173 Official Budget 2022-23 The City of Sanger, Texas Page 174 Official Budget 2022-23 The City of Sanger, Texas Page 175 Official Budget 2022-23 The City of Sanger, Texas Page 176 Official Budget 2022-23 The City of Sanger, Texas Page 177 Official Budget 2022-23 The City of Sanger, Texas Page 178 Official Budget 2022-23 The City of Sanger, Texas Page 179 Official Budget 2022-23 The City of Sanger, Texas Page 180 Official Budget 2022-23 The City of Sanger, Texas Page 181 Official Budget 2022-23 The City of Sanger, Texas Page 182 Official Budget 2022-23 The City of Sanger, Texas Page 183 Official Budget 2022-23 The City of Sanger, Texas Page 184 Official Budget 2022-23 The City of Sanger, Texas Page 185 Official Budget 2022-23 The City of Sanger, Texas Page 186 Official Budget 2022-23 The City of Sanger, Texas Page 187 Official Budget 2022-23 FINANCIAL MANAGEMENT POLICY *The Sanger City Council approved the City’s Financial Management Policy on September 19, 2022 Introduction The City of Sanger, Texas financial policies set forth the basic framework for the fiscal management of the City. These policies were developed within the parameters established by applicable provisions of the Texas Local Government Code and the Sanger City Charter. The policies are intended to assist the City Council and city staff in evaluating current activities and proposals for future programs. The policies are to be reviewed on an annual basis and modified to accommodate changing circumstances or conditions. The scope of these policies generally spans accounting, auditing, financial reporting, internal controls, operating and capital budgeting, revenue management, expenditure control and debt management, all to make it possible both: (a) to present fairly and with full disclosure the financial position and results of financial operations of the City in conformity to generally accepted accounting principles (GAAP), and (b) to determine and demonstrate compliance with finance- related legal and contractual provisions. It is the goal of the Statement of Financial Management Policies to enable the City to adhere to the principles of sound municipal finance and to continue its long-term stable and positive financial condition. Annual Budget 1. The fiscal year of the City of Sanger shall begin on October 1 of each calendar year and will end on September 30 of the following calendar year. The fiscal year will also be established as the accounting and budget year. 2. The City Manager, prior to August first of each year, shall prepare and submit to the City Secretary the annual budget covering the next fiscal year. The budget shall provide a complete financial plan of all city funds and activities and, except as required by law or the City Charter, shall be in such form as the Council may require. The budget shall contain the following information: a. The City Manager’s budget message outlining the proposed financial policies for the next fiscal year with an explanation of any changes in expenditures from the previous year, any major changes in policies, and a complete statement regarding the financial condition of the City. (Proposition 1 approved at an election held November 7, 2006 and certified by Resolution 11-19-06 adopted November 20, 2006.) b. An estimate of all revenues from taxes and other sources, including the present tax structure, rates, and property valuations for the ensuing year; c. A carefully itemized list of proposed expenses and revenues by fund, service type, and project for the budget year, as compared to actual expenditures and revenues of the last ended fiscal year and the projected final expenditures and revenues for the current fiscal year; d. A description of all outstanding bond indebtedness, showing amount, date of issue, rate of interest, and maturity date; also, any other indebtedness which the City has incurred and which has not been paid; e. A statement proposing any capital expenditures deemed necessary for undertaking during the next budget year and the recommended provision for financing; and f. Such other information as is required by City Council or deemed desirable by the City Manager. The City of Sanger, Texas Page 188 Official Budget 2022-23 3. The City Manager’s budget should assume, for each fund, operating revenues that are equal to or exceed operating expenditures (i.e., a balanced budget). The City Manager’s budget message shall explain the reasons for any fund that reflects operating expenditures exceeding operating revenues. 4. The City Council shall hold a public hearing on the budget, as submitted, at the time and place so advertised in the official newspaper, which will be no less than seven (7) days or more than fifteen (15) days after the date of notice. All interested persons shall be given the opportunity to be heard, either for or against, any item of the proposed budget. 5. The budget and tax rate may be adopted at any regular or special meeting of the Council prior to the beginning of the budgeted fiscal year by a majority vote of two thirds (2/3) quorum. The Council may amend the proposed budget by increasing, decreasing, or removing any programs or amounts, except for expenditures required by law, for debt service, or for estimated cash deficit. No amendment to the budget shall increase the authorized expenditures to an amount greater than the total of estimated income plus funds available from prior years. 6. If the Council fails to adopt a budget by the beginning of the fiscal year, the budget currently in place for the preceding year shall remain in place on a month-to-month basis until such time as a new budget has been adopted. 7. On final adoption, the budget shall be in effect for the budget year. Final adoption of the budget by the City Council shall constitute the official appropriations for the current year and shall constitute the basis of the official levy of the property tax. Under conditions which may arise, the City Council may amend or change the budget to provide for any additional expense. Capital Program 1. The City Manager shall submit a five-year capital improvement program (CIP) as an attachment to the annual budget. The CIP shall induce the following: a. A clear, general summary of its contents; b. A list of all capital improvements which are proposed for the five (5) fiscal years including the budget year, with appropriate supporting information as to the necessity for such improvements; c. Cost estimates, method of financing and recommended time schedules for each improvement; and d. The estimated annual cost of operating and maintaining the facilities to be constructed or acquired. Basis of Accounting and Budgeting 1. The City’s finances shall be accounted for in accordance with generally accepted accounting principles (GAAP) as established by the Governmental Accounting Standards Board (GASB). a. The accounts of the City are organized and operated on the basis of funds and account groups. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the governmental funds not recorded directly in those funds. b. Governmental fund types use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they are “measurable and available”). “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to pay liabilities of the current period. Substantially all revenues are considered to be susceptible to accrual. Ad valorem, sales, hotel, franchise and tax The City of Sanger, Texas Page 189 Official Budget 2022-23 revenues recorded in the General Fund and ad valorem tax revenues recorded in the Debt Service Fund are recognized under the susceptible to accrual concept. Licenses and permits, charges for services, fines and forfeitures, and miscellaneous revenues (except earnings on investments) are recorded as revenues when received in cash because they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and available. Expenditures are recognized when the related fund liability is incurred, if measurable, except for principal and interest on general long-term debt, which are recorded when due, and compensated absences, which are recorded when payable from currently available financial resources. c. The City utilizes encumbrance accounting for its governmental fund types, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. d. The City’s proprietary fund types are accounted for on a flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned, and expenses are recorded at the time liabilities are incurred. 2. The City’s annual budgets shall be prepared and adopted on a basis consistent with generally accepted accounting principles for all governmental and proprietary funds 3. The issuance of Statement 34 by GASB has influenced the creation and reporting of individual funds. GASB 34 essentially mandates dual accounting systems: one for government-wide (i.e. the government as a single entity) reporting and another for individual fund reporting. Under GASB 34 for individual funds, the City will continue utilizing the accounting and budgeting processes as described in paragraphs (1) and (2) of this section. However, because GASB 34 mandates the flow of economic resources measurement focus and accrual basis of accounting for the government-wide reporting, extensive reconciliation must be performed to present aggregated fund information in the government-wide reporting model. Therefore, individual operating funds will be created with the objective of reducing fund to government-wide reconciliation as much as possible. When appropriate, individual funds will be examined as to whether it will be appropriate to account for them as proprietary fund types. Also, the City will limit the use of internal service funds and incorporate the financial transactions of those funds into other governmental funds. Budget Administration 1. All expenses of the City shall be made in accordance with the adopted annual budget. Budgetary control is maintained at the individual expenditure account level by the review of all requisitions of estimated purchase amounts prior to the release of purchase orders to vendors. 2. The following represents the City’s budget amendment policy delineating responsibility and authority for the amendment process. Transfers between expenditure accounts in one department may occur with the approval of the City Manager and Finance Director Transfers between operating departments may occur with the approval of the City manager and Finance Director provided that a department’s total budget is not changed by more than $50,000. Transfers between funds must be accomplished by budget amendment approved by the City Council. Budget amendments calling for new fund appropriations must also be approved by the City Council. Financial Reporting 1. At the close of each fiscal year, and at such other times as it may be deemed necessary, the Council shall direct that an independent audit be made on all accounts of the City by a certified public accountant. The certified public accountant shall have no personal interest directly or indirectly, in the financial affairs of the City The City of Sanger, Texas Page 190 Official Budget 2022-23 or any of its officers and shall report directly to the Council. Upon completion of the audit, a summary of the results thereof shall be placed on file in the City Secretary's office for public record. A copy of the comprehensive financial annual report shall be available at City Hall. 2. The City Manager shall submit to the Council a monthly report of the financial condition of the City by department for the fiscal year-to-date. The financial records of the City will be maintained on a modified accrual basis to support this type of financial management. The City Manager shall make available to the Council the monthly cash disbursements journal of the City of all funds and accounts. Revenues 1. To protect the City’s financial integrity, the City will maintain a diversified and stable revenue system to shelter it from fluctuations in any one revenue source. Recognizing that sales tax is a volatile, unpredictable source of revenue, the City will attempt to reduce its dependence on sales tax revenue. 2. For every annual budget, the City shall levy two property tax rates: operation/ maintenance and debt service. The debt service levy shall be sufficient for meeting all principal and interest payments associated with the City’s outstanding general obligation debt for that budget year. The debt service levy and related debt service expenditures shall be accounted for in the Debt Service Fund. The operation and maintenance levy shall be accounted for in the General Fund. City Council will consider exceeding the rollback rate only after options have been presented by staff to avoid the rollback by increasing revenue from other sources or reducing expenditures. 3. The City will maintain a policy of levying the lowest tax rate on the broadest tax base. Minimal exemptions may be provided to homeowners, senior citizens, and disabled veterans. The City may consider providing tax abatements or other incentives to encourage development. 4. The City will establish user charges and fees at a level that attempts to recover the full cost of providing the service. a. User fees, particularly utility rates, should identify the relative costs of serving different classes of customers. b. Where possible, utility rates should be designed to reduce peak (hour and day) demands on the utility systems. c. The City will make every reasonable attempt to ensure accurate measurement of variables impacting taxes and fees (e.g., verification of business sales tax payments, verification of appraisal district property values, and accuracy of water meters). 5. The City will attempt to maximize the application of its financial resources by obtaining supplementary funding through agreements with other public and private agencies for the provision of public services or the construction of capital improvements. 6. The City will consider market rates and charges levied by other public and private organizations for similar services in establishing tax rates, fees and charges. 7. When developing the annual budget, the City Manager shall project revenues from every source based on actual collections from the preceding year and estimated collections of the current fiscal year, while taking into account known circumstances which will impact revenues for the new fiscal year. The revenue projections for each fund should be made conservatively so that total actual fund revenues exceed budgeted projections. Operating Expenditures 1. Operating expenditures shall be accounted, reported, and budgeted for in the following major categories: a. Operating, Recurring Expenditures The City of Sanger, Texas Page 191 Official Budget 2022-23 i. Salaries and Benefits ii. Supplies and Materials iii. Maintenance and Operations iv. Contractual Services v. Utilities vi. Capital Replacement vii. Other Expenses b. Operating, Non-Recurring Expenditures i. Capital Equipment 2. The annual budget shall appropriate sufficient funds for operating, recurring expenditures necessary to maintain established (i.e., status quo) quality and scope of city services. 3. The City will constantly examine the methods for providing public services in order to reduce operating, recurring expenditures and/or enhance quality and scope of public services with no increase to cost. 4. Salaries and benefits expenditures will reflect the minimum staffing needed to provide established quality and scope of city services. To attract and retain employees necessary for providing high-quality service, the City shall maintain a compensation and benefit package competitive with the public and, when quantifiable, private service industries. 5. Supplies and materials expenditures shall be sufficient for ensuring the optimal productivity of City employees. 6. Maintenance and operations expenditures shall be sufficient for addressing the deterioration of the City’s capital assets to ensure the optimal productivity of the capital assets. Maintenance should be conducted to ensure a relatively stable level of maintenance expenditures for every budget year. 7. Utility expenditure providers shall, when options are available, be selected on the basis of the provider’s competitive pricing and service. 8. The City will utilize contractual services for the provision of city services whenever private contractors can perform the established level of service at less expense to the City. The City will regularly evaluate its agreements with private contractors to ensure the established levels of service are performed at the least expense to the City. 9. Capital equipment is defined as equipment that exceeds $5,000 and has a useful life of at least one year. Bulk purchases of smaller equipment with a useful life of at least one year will be capitalized if the total amount of the purchase exceeds $25,000. Existing capital equipment shall be replaced when needed to ensure the optimal productivity of City employees. 10. Expenditures for additional capital equipment shall be made only to enhance employee productivity, improve quality of service, or expand scope of service. 11. Expenditures for other expenses not included in the categories above shall be made strictly on the basis of economic and business merit, ensuring the best possible return on each dollar spent. 12. To assist in controlling the growth of operating expenditures, operating departments will submit their annual budgets to the City Manager during the budget preparation process. Departments shall provide justification where projected expenditures exceed prior year budgeted amounts. Fund Balance 1. The annual budget shall be presented to City Council with each fund reflecting an ending fund balance which is no less than 25 percent of that fund’s annual operating expenditures. To satisfy the particular needs of individual funds, ending fund balances may be established which exceed the 25 percent minimum. The City of Sanger, Texas Page 192 Official Budget 2022-23 2. Fund balance that exceeds the minimum level established for each fund may be appropriated for non-recurring capital projects or programs, reserves or as the Council directs. 3. The City will exercise diligence in avoiding the appropriation of fund balance for recurring operating expenditures. In the event fund balance is appropriated for recurring operating expenditures to meet the needs of the Sanger community, the budget document shall include an explanation of the circumstances requiring the appropriation and the methods to be used to arrest the future use of fund balance for operating expenditures. Fund Transfers 1. With the exceptions noted below, there will be no operating transfers between funds. Any costs incurred by one fund to support the operations of another shall be charged directly to the fund. 2. Fund transfers may occur when surplus fund balances are used to support non-recurring capital expenses or when needed to satisfy debt service obligations. 3. Transfers are permitted between funds to support economic development programs. 4. Transfers are permitted from the Enterprise Fund to other funds to cover the cost of operations. Debt Expenditures 1. The City shall have the right and power, except as prohibited by law or the City Charter, to borrow money by whatever method it may deem to be in the public interest. 2. The City shall have the power to borrow money on the credit of the City and to issue general obligation bonds for permanent public improvements or for any other public purpose not prohibited by law and the City Charter and to issue refunding bonds to refinance outstanding bonds previously issued. All such bonds or certificates of obligation shall be issued in conformity with the laws of the State of Texas and shall be used only for purposes for which they were issued. General obligation bonds shall not be issued without an election. In all cases when the City Council shall order an election for the issuance of bonds of the City, it shall, at the same time, state whether or not a tax rate increase is anticipated for the purpose of paying the principal and interest on the bonds and to create a sinking fund for their redemption. 3. The City shall have the power to borrow money for the purpose of constructing, purchasing, improving, extending or repairing public utilities, recreational facilities, or any other self-liquidating municipal function not prohibited by the Constitution and the laws of the State of Texas, and to issue revenue bonds to evidence the obligation created thereby. Such shall be a charge upon and payable from the properties, or interest therein pledged, or the income therefrom, or both. The holders of the revenue bonds shall never have the right to demand payment thereof out of moneys raised or to be raised by taxation. All such bonds shall be issued in conformity with the laws of the State of Texas and shall be used only for the purpose for which they were issued. 4. When needed to minimize annual debt payments, the City will obtain insurance for new debt issues. Capital Project Expenditures 1. The City will develop a multi-year plan for capital projects, which identifies all projects likely to be constructed within a five-year horizon. The multi-year plan will reflect for each project the likely source of funding and attempt to quantify the project’s impact to future operating expenditures. 2. Capital projects will be constructed to: a. Protect or improve the community’s quality of life. b. Protect or enhance the community’s economic vitality. The City of Sanger, Texas Page 193 Official Budget 2022-23 c. Support and service new development. 3. To minimize the issuance of debt, the City will attempt to support capital projects with appropriations from operating revenues or excess fund balances (i.e., “pay-as-you-go”). Purchasing 1. All purchases and contracts over $3,000 shall conform to Chapter 252, Subchapter B of the Local Government Code of Texas, as amended. Purchases of goods or services over $50,000 shall be submitted to the City Council for approval. The adoption of the annual budget gives the City Manger the authority to approve all other purchases for goods or services in accordance with each department’s approved budget. 2. Purchases of goods or services at a total cost of $1,000 or more must be made through the City’s purchase order system. Written purchase orders shall also be used for vendors requiring formal City authorization regardless of dollar amount. 3. Purchases of goods or services at a total cost of less than $1,000 may be made via a written Accounts Payable Voucher, signed and submitted by the applicable Department Director to the Finance Department. 4. All invoices approved for payment by the proper City authorities shall be paid by the Finance Department within thirty (30) calendar days of receipt in accordance with provisions of Article 601f, Section 2 of the State of Texas Civil Statutes. The City of Sanger, Texas Page 194 Official Budget 2022-23 INVESTMENT POLICY *The Sanger City Council approved the City’s Investment Policy on September 19, 2022 POLICY STATEMENT It is the objective of the City of Sanger, Texas (“City”) that the administration of its funds and the investment of those funds shall be handled in the highest public trust. Investments shall be made in a manner which will provide the maximum security of principle invested through limitations and diversification while meeting the daily cash flow needs of the city and conforming to all applicable federal, state, and local statutes, rules and regulations governing the investment of public funds. The receipt of a market rate return will be secondary to the requirements for safety and liquidity. The earning from investments shall be used in a manner that best serves the public trust and interest of the City. This policy serves to satisfy the statutory requirements of defining and adopting a formal investment policy and shall be reviewed annually for modifications. It is the intent of the City to be in compliance with local law and the provisions of Public Funds Investment Act of the Texas Government Code Chapter 2256. SCOPE This Investment Policy applies to the investment activities, all financial assets and funds held by the City of Sanger, Texas. Funds covered and managed by this Investment Policy include: A. General Fund – Used to account for resources traditionally associated with government, which are not required to be accounted for in another fund. B. Debt Service Fund – Used to account for resources to be used for the payment of principle, interest and related costs on debt. C. Enterprise Fund – Used to account for operations that are financed and operated in a manner similar to private business enterprises. D. Capital Improvement Fund – Used to account for resources to enable the acquisition or construction of major capital facilities which are not financed by enterprise funds, internal service funds, or trust funds. E. Special Revenue Funds – Used to account for proceeds from specific revenue sources which are restricted to expenditures for specific purposes. 1. 4A Fund 2. 4B Fund 3. Employee Benefits Fund INVESTMENT OBJECTIVES AND STRATEGY It is the policy of the City that all funds shall be invested in conformance with state and federal regulations, applicable bond ordinance requirements, and adopted Investment Policy. In accordance with the Public Funds Investment Act, the following prioritized primary objectives, in accordance with the Texas Government Code Section 2256.005(d) apply to the City’s investment strategy. Listed in order of their priority, these objectives encompass: A. Suitability – Understanding the suitability of the investment to the financial requirement of the City is important. Any investment eligible in the Investment Policy is suitable for all City funds. B. Safety – Preservation and safety of principal are the primary objectives of the Investment Policy. Investments of the City shall be undertaken in a manner that seeks to insure the preservation of capital in the overall portfolio. To obtain this goal, diversification is required in the portfolio’s composition. The City of Sanger, Texas Page 195 Official Budget 2022-23 The suitability of each investment decision will be made on the basis of these objectives. The City prefers to invest in money market accounts, certificates of deposits, and United States government backed agency discount notes. C. Liquidity – The City’s investment portfolio will remain sufficiently liquid to meet operating requirements that might be reasonably anticipated. The City’s investment portfolio will remain sufficiently liquid and enable it to meet all operating requirements which might be reasonably anticipated. D. Diversification – Investment maturities shall be staggered throughout the budget cycle to provide cash flow based on the anticipated needs of the City. Diversifying the appropriate maturity structure will reduce market cycle risk. Diversification of the portfolio will include diversification by maturity and market sector and will include the use of a number of brokers/dealers for diversification and market coverage. Competitive bidding will be used on each sale and purchase. E. Yield – Attaining a competitive market yield, commensurate with the City’s investment risk constraints and cash flow characteristic of the portfolio, is the desired objective. The City’s investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints and the cash flow of the portfolio. “Market rate of return” may be defined as the average yield of the current three-month U.S. Treasury Bill or such other index that most closely matches the average maturity of the portfolio. The City’s objective shall be a reasonably safe yield rate in accordance with payment schedules and other investment goals. Effective cash management is recognized as essential to good fiscal management. Cash management is defined as the process of managing monies in order to ensure maximum cash availability. The City shall maintain a comprehensive cash management program which includes collection of accounts receivable, prudent investment of its available cash, disbursement of payments in accordance with invoice terms and the management of banking services. The City staff will follow the “Prudent Person” statement relating to the standard of care that must be exercised when investing public funds as expressed in the Texas Government Code Section 2256.006(a-b). The Investment Officers shall avoid any transactions that might impair public confidence in the City’s ability to govern effectively. The governing body recognizes that in diversifying the portfolio, occasional measured unrealized losses due to market volatility are inevitable, and must be considered within the context of the overall portfolio’s investment return, provided that adequate diversification has been implemented. The prudence of the investment decision shall be measured in accordance with the tests set forth in the Texas Government Code Section 2256.006(b). It shall be the policy of the City not to invest in speculative instruments such as derivatives. LEGAL LIMITATIONS, RESPONSIBILITIES AND AUTHORITY Direct specific investment parameters for the investment of public funds in Texas are found in the Public Funds Investment Act of the Texas Government Code Section 2256. The Interlocal Cooperation Contracts, Section 791, of the Texas Government Code authorizes local governments to participate in public funds investments in conjunction with other local governments and agencies of the state of Texas. Section 791 along with Section 2256 of the Texas Government Code provides authorization for participation in investment pools to invest public funds jointly with objectives of preservation and safety of principal, liquidity, and yield. The City of Sanger, Texas Page 196 Official Budget 2022-23 DELEGATION OF INVESTMENT AUTHORITY The City Manager and the Finance Director acting on behalf of the City Council are designated as the Investment Officers of the City and are responsible for investment management decisions and activities. The Council is responsible for considering the quality and capability of staff, investment advisors, and consultants involved in investment management and procedures. All participants in the investment process shall seek to act responsibly as custodians of the public trust. The Investment Officers shall develop and maintain written administrative procedures for the operation of the investment program which are consistent with the investment policy. Procedures will include reference to safekeeping, wire transfers, certificates of deposit, and fund accounts. Additional procedures will be documented for the performance of wire transfer agreements; banking services contracts, and other investment related activities. The Investment Officers shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials and staff. The Investment Officers shall designate a staff person as a liaison/deputy in the event circumstances require timely action and the Investment Officers are not available. No officer or designee may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officers and approved by the City Council. PRUDENCE – STANDARD OF CARE The standard of prudence to be used in the investment function shall be the “prudent person” standard and shall be applied in the context of managing the overall portfolio. The Texas Government Code Section 2256.006(a) states Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Limitation of Personal Liability The Investment Officers and those delegated investment authority under this policy, when acting in accordance with the written procedures and this policy and in accordance with the written procedures and this policy and in accord with the Prudent Person Rule, shall be relieved of personal responsibility and liability in the management of the portfolio provided that deviations from expectations for a specific security’s credit risk or market price change or portfolio shifts are reported in a timely manner and that appropriate action is taken to control adverse market effects. INTERNAL CONTROLS The Investment Officers shall establish a system of written internal controls which will be reviewed annually with the independent auditor of the City. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officers of the City. The City of Sanger, Texas Page 197 Official Budget 2022-23 Cash Flow Forecasting Cash flow forecasting is designated to protect and sustain cash flow requirements of the City. Supplemental to the financial and budgetary systems, the Investment Officers will maintain a cash flow forecasting process designed to monitor and forecast cash positions for investment purposes. Cash flow will include the historical researching and monitoring of specific cash flow items, payables, and receivables as well as overall cash position and patters. AUTHORIZED INVESTMENTS Acceptable investments under this policy shall be limited to the instruments listed below. The investments shall be selected in a manner which promotes diversity of the market sector and maturity. The selection of high-grade government investments and high-grade money market instruments is designed to assure the marketability of those investments should the need for liquidity arise. A. Obligations of the United States Government, its agencies and instrumentalities, and government sponsoring enterprises, not to exceed two years to stated maturity; B. Fully insured or collateralized certificates of deposit from a bank doing business in the State of Texas and under the terms of a written depository agreement with that bank, not to exceed three years to the stated maturity; C. Money market funds authorized by the Public Funds Investment Act of the Texas Government Code Chapter 2256. D. Texas Local Government Investment Pools authorized by the Public Funds Investment Act of the Texas Government Code Chapter 2256. Additional types of securities approved for investment of public funds by Texas state statutes are not eligible for investment by the City until this Investment Policy has been amended and the amended version approved by the City Council authorizing investment of these additional types of securities. Competitive Bidding Requirements All securities, excluding certificates of deposit, will be purchased or sold after three (3) offers/bids are taken to verify that the City is receiving fair market value/price for the investment. Delivery versus Payment All security transactions, including collateral for repurchase agreements, entered into by the City, shall be conducted on a delivery versus payment (DVP) basis. SAFEKEEPING AND COLLATERALIZATION The laws of the State and prudent treasury management require that all purchased securities be bought on a delivery versus payment basis and be held in safekeeping by either the City, an independent third-party financial institution, or the City’s designated depository. All safekeeping arrangements shall be designed by the Investment Officers and an agreement of the terms executed in writing. The third-party custodian shall be required to issue safekeeping receipts to the City listing each specific security, rate, description, maturity, cusip number, and other pertinent information. Each safekeeping receipt will be clearly marked that the security is held for the City or pledged to the City. The City of Sanger, Texas Page 198 Official Budget 2022-23 All securities pledged to the City for certificates of deposit or demand deposits shall be held by an independent third-party bank domiciled in Texas. The safekeeping bank may be written within the same holding company as the bank, from which the securities are pledged. Collateralization Collateralization shall be required on all public funds of the City over the FDIC insurance coverage limit, and in order to anticipate market changes and provide a level of additional security for all funds, the collateralized level required will be 102% of the market value of the principal accrued interest. PERFORMANCE EVALUATION AND REPORTING The Investment Officers shall submit quarterly and annual reports to the City Council containing a written report of investment transactions and investment positions as of the date of report. The report will be prepared jointly by all involved in the investment activity and be signed by the Investment Officer(s). DEPOSITORIES The City will designate one banking institution through a competitive process as its central banking service provider. This institution will be used for normal banking services including disbursements, deposits, and lockbox. As a matter of ensuring liquidity and security should the funds deposited with the designated bank be temporarily unavailable, the City will maintain an emergency reserve in another qualified bank. INVESTMENT POLICY ADOPTION BY CITY COUNCIL The City’s Investment Policy shall be formally approved and adopted by resolution of the City Council and reviewed annually in accordance with the provisions of the Public Funds Investment Act of the Texas Government Code Chapter 2256. AMENDMENT In the event Texas state law changes and the City cannot invest in the investments described by this policy, this policy shall automatically be conforming to existing law. The City of Sanger, Texas Page 199 Official Budget 2022-23 DEBT SERVICE SCHEDULES Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2023 37,400 8,826 46,226 72,600 17,134 89,734 110,000 25,960 135,960 2024 37,400 7,180 44,580 72,600 13,940 86,540 110,000 21,120 131,120 2025 39,100 5,536 44,636 75,900 10,744 86,644 115,000 16,280 131,280 2026 42,500 3,814 46,314 82,500 7,406 89,906 125,000 11,220 136,220 2027 44,200 1,944 46,144 85,800 3,776 89,576 130,000 5,720 135,720 Total 200,600 27,300 227,900 389,400 53,000 442,400 590,000 80,300 670,300 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2023 24,000 720 24,720 176,000 5,280 181,280 200,000 6,000 206,000 Total 24,000 720 24,720 176,000 5,280 181,280 200,000 6,000 206,000 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2023 - - - 285,000 169,375 454,375 285,000 169,375 454,375 2024 - - - 290,000 160,750 450,750 290,000 160,750 450,750 2025 - - - 300,000 151,900 451,900 300,000 151,900 451,900 2026 - - - 310,000 142,750 452,750 310,000 142,750 452,750 2027 - - - 320,000 132,900 452,900 320,000 132,900 452,900 2028 - - - 330,000 121,925 451,925 330,000 121,925 451,925 2029 - - - 340,000 110,200 450,200 340,000 110,200 450,200 2030 - - - 355,000 97,594 452,594 355,000 97,594 452,594 2031 - - - 370,000 84,000 454,000 370,000 84,000 454,000 2032 - - - 380,000 69,937 449,937 380,000 69,937 449,937 2033 - - - 395,000 55,406 450,406 395,000 55,406 450,406 2034 - - - 410,000 40,313 450,313 410,000 40,313 450,313 2035 - - - 425,000 24,656 449,656 425,000 24,656 449,656 2036 - - - 445,000 8,344 453,344 445,000 8,344 453,344 Total - - - 4,955,000 1,370,050 6,325,050 4,955,000 1,370,050 6,325,050 Certificates of Obligation, Series 2015 Enterprise Fund: 100%Total Certificates of Obligation, Series 2007 General Fund: 0% General Fund 12% Purpose: to acquire and renovate a building and parking area to be used by the City’s public works department; to purchase phone, alarm and computer equipment and office furniture for such building; and professional services rendered in connection with this project. Purpose: to pay for water and sewer system repairs and improvements, street repairs, drainage repairs and improvements, and park repairs and improvements, and for professional services related to this project Purpose: to pay for rehabilitation, reconstruction, addition and expansion of the waste water treatment plant; rehabilitation and construction of wastewater lift stations and wastewater lines; construction of water lines and associated equipment and facilities rehabilitation, reconstruction and construction of streets and drainage; rehabilitation of municipal facilities; and professional services rendered in connection with this project. Enterprise Fund: 88% Total Certificates of Obligation, Series 2013 General Fund 34%Enterprise Fund: 66%Total The City of Sanger, Texas Page 200 Official Budget 2022-23 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2023 - - - 100,000 364,050 464,050 100,000 364,050 464,050 2024 - - - 115,000 361,050 476,050 115,000 361,050 476,050 2025 - - - 115,000 357,600 472,600 115,000 357,600 472,600 2026 - - - 115,000 353,000 468,000 115,000 353,000 468,000 2027 - - - 390,000 348,400 738,400 390,000 348,400 738,400 2028 - - - 545,000 332,800 877,800 545,000 332,800 877,800 2029 - - - 560,000 311,000 871,000 560,000 311,000 871,000 2030 - - - 585,000 288,600 873,600 585,000 288,600 873,600 2031 - - - 605,000 265,200 870,200 605,000 265,200 870,200 2032 - - - 630,000 241,000 871,000 630,000 241,000 871,000 2033 - - - 660,000 215,800 875,800 660,000 215,800 875,800 2034 - - - 1,010,000 189,400 1,199,400 1,010,000 189,400 1,199,400 2035 - - - 1,050,000 149,000 1,199,000 1,050,000 149,000 1,199,000 2036 - - - 1,090,000 107,000 1,197,000 1,090,000 107,000 1,197,000 2037 - - - 1,585,000 63,400 1,648,400 1,585,000 63,400 1,648,400 Total - - - 9,155,000 3,947,300 13,102,300 9,155,000 3,947,300 13,102,300 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2023 220,000 32,100 252,100 - - - 220,000 32,100 252,100 2024 225,000 23,300 248,300 - - - 225,000 23,300 248,300 2025 235,000 14,300 249,300 - - - 235,000 14,300 249,300 2026 245,000 4,900 249,900 - - - 245,000 4,900 249,900 Total 925,000 74,600 999,600 - - - 925,000 74,600 999,600 General Fund 100% Enterprise Fund: 0% Total Certificates of Obligation, Series 2017 General Obligation Refunding Bonds, Series 2019 Enterprise Fund: 100% TotalGeneral Fund: 0% Purpose: to refund certain obligations (Combination Tax & Revenue Certificates of Obligations, Series 2009) of the City, and professional services related thereto. Purpose: to pay for the restoration, replacement, rehabilitation, and expansion of the wastewater and water systems, including the treatment plant; street and drainable improvements; and professional services related thereto. The City of Sanger, Texas Page 201 Official Budget 2022-23 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2023 - - - 295,000 559,600 854,600 295,000 559,600 854,600 2024 - - - 320,000 550,750 870,750 320,000 550,750 870,750 2025 - - - 345,000 541,150 886,150 345,000 541,150 886,150 2026 - - - 395,000 534,250 929,250 395,000 534,250 929,250 2027 - - - 140,000 526,350 666,350 140,000 526,350 666,350 2028 - - - 135,000 523,550 658,550 135,000 523,550 658,550 2029 - - - 160,000 519,500 679,500 160,000 519,500 679,500 2030 - - - 160,000 514,700 674,700 160,000 514,700 674,700 2031 - - - 185,000 509,900 694,900 185,000 509,900 694,900 2032 - - - 260,000 504,350 764,350 260,000 504,350 764,350 2033 - - - 290,000 493,950 783,950 290,000 493,950 783,950 2034 - - - 290,000 482,350 772,350 290,000 482,350 772,350 2035 - - - 320,000 470,750 790,750 320,000 470,750 790,750 2036 - - - 370,000 457,950 827,950 370,000 457,950 827,950 2037 - - - 395,000 446,850 841,850 395,000 446,850 841,850 2038 - - - 1,620,000 435,000 2,055,000 1,620,000 435,000 2,055,000 2039 - - - 1,665,000 386,400 2,051,400 1,665,000 386,400 2,051,400 2040 - - - 1,715,000 336,450 2,051,450 1,715,000 336,450 2,051,450 2041 - - - 1,765,000 285,000 2,050,000 1,765,000 285,000 2,050,000 2042 - - - 1,820,000 232,050 2,052,050 1,820,000 232,050 2,052,050 2043 - - - 1,875,000 177,450 2,052,450 1,875,000 177,450 2,052,450 2044 - - - 1,930,000 121,200 2,051,200 1,930,000 121,200 2,051,200 2045 - - - 1,990,000 63,300 2,053,300 1,990,000 63,300 2,053,300 2046 - - - 120,000 3,600 123,600 120,000 3,600 123,600 Total - - - 18,560,000 9,676,400 28,236,400 18,560,000 9,676,400 28,236,400 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2023 6,600 5,157 11,757 48,400 37,821 86,221 55,000 42,978 97,978 2024 31,200 5,134 36,334 228,800 37,652 266,452 260,000 42,786 302,786 2025 30,600 4,956 35,556 224,400 36,348 260,748 255,000 41,304 296,304 2026 31,200 4,690 35,890 228,800 34,395 263,195 260,000 39,085 299,085 2027 31,800 4,341 36,141 233,200 31,833 265,033 265,000 36,174 301,174 2028 31,800 3,889 35,689 233,200 28,521 261,721 265,000 32,410 297,410 2029 33,000 3,390 36,390 242,000 24,860 266,860 275,000 28,250 303,250 2030 33,000 2,786 35,786 242,000 20,431 262,431 275,000 23,217 298,217 2031 34,200 2,149 36,349 250,800 15,761 266,561 285,000 17,910 302,910 2032 34,800 1,472 36,272 255,200 10,795 265,995 290,000 12,267 302,267 2033 34,800 741 35,541 255,200 5,436 260,636 290,000 6,177 296,177 Total 333,000 38,705 371,705 2,442,000 283,852 2,725,852 2,775,000 322,557 3,097,557 General Fund: 0% Enterprise Fund: 100% Total Certificates of Obligation, Series 2021B Certificates of Obligation, Series 2021A General Fund: 0% Enterprise Fund: 100% Total Purpose: to refund certain obligations (Combination Tax & Revenue Certificates of Obligations, Series 2013) of the City, and professional services related thereto. Purpose: to pay for the expansion and improvements to the City’s waster and sewer system; system renovations and line relocations to the City’s electric utility system; city-wide street repairs and improvements; and professional services related thereto. The City of Sanger, Texas Page 202 Official Budget 2022-23 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2023 48,252 3,283 51,535 - - - 48,252 3,283 51,535 2024 49,867 1,668 51,535 - - - 49,867 1,668 51,535 Total 98,119 4,951 103,070 - - - 98,119 4,951 103,070 Fiscal Year Principal Interest Total Principal Interest Total Principal Interest Total 2023 336,252 50,086 386,338 977,000 1,153,260 2,130,260 1,313,252 1,203,346 2,516,598 2024 343,467 37,282 380,749 1,026,400 1,124,142 2,150,542 1,369,867 1,161,424 2,531,291 2025 304,700 24,792 329,492 1,060,300 1,097,742 2,158,042 1,365,000 1,122,534 2,487,534 2026 318,700 13,404 332,104 1,131,300 1,071,801 2,203,101 1,450,000 1,085,205 2,535,205 2027 76,000 6,285 82,285 1,169,000 1,043,259 2,212,259 1,245,000 1,049,544 2,294,544 2028 31,800 3,889 35,689 1,243,200 1,006,796 2,249,996 1,275,000 1,010,685 2,285,685 2029 33,000 3,390 36,390 1,302,000 965,560 2,267,560 1,335,000 968,950 2,303,950 2030 33,000 2,786 35,786 1,342,000 921,325 2,263,325 1,375,000 924,111 2,299,111 2031 34,200 2,149 36,349 1,410,800 874,861 2,285,661 1,445,000 877,010 2,322,010 2032 34,800 1,472 36,272 1,525,200 826,082 2,351,282 1,560,000 827,554 2,387,554 2033 34,800 741 35,541 1,600,200 770,592 2,370,792 1,635,000 771,333 2,406,333 2034 - - - 1,710,000 712,063 2,422,063 1,710,000 712,063 2,422,063 2035 - - - 1,795,000 644,406 2,439,406 1,795,000 644,406 2,439,406 2036 - - - 1,905,000 573,294 2,478,294 1,905,000 573,294 2,478,294 2037 - - - 1,980,000 510,250 2,490,250 1,980,000 510,250 2,490,250 2038 - - - 1,620,000 435,000 2,055,000 1,620,000 435,000 2,055,000 2039 - - - 1,665,000 386,400 2,051,400 1,665,000 386,400 2,051,400 2040 - - - 1,715,000 336,450 2,051,450 1,715,000 336,450 2,051,450 2041 - - - 1,765,000 285,000 2,050,000 1,765,000 285,000 2,050,000 2042 - - - 1,820,000 232,050 2,052,050 1,820,000 232,050 2,052,050 2043 - - - 1,875,000 177,450 2,052,450 1,875,000 177,450 2,052,450 2044 - - - 1,930,000 121,200 2,051,200 1,930,000 121,200 2,051,200 2045 - - - 1,990,000 63,300 2,053,300 1,990,000 63,300 2,053,300 2046 - - - 120,000 3,600 123,600 120,000 3,600 123,600 Total 1,580,719 146,276 1,726,995 35,677,400 15,335,882 51,013,282 37,258,119 15,482,158 52,740,277 Total General Fund: 100% General Fund Enterprise Fund Enterprise Fund: 0% Total Spirit of Texas Street Equipment Total Debt Purpose: to purchase rolling stock and heavy equipment to be used in the City’s street department. The City of Sanger, Texas Page 203 Official Budget 2022-23 STANDARD & POORS RATING REPORT The City of Sanger was assigned an “AA” long-term rating upon the issuance of the series 2021 bonds. The City of Sanger, Texas Page 204 Official Budget 2022-23 The City of Sanger, Texas Page 205 Official Budget 2022-23 The City of Sanger, Texas Page 206 Official Budget 2022-23 The City of Sanger, Texas Page 207 Official Budget 2022-23 The City of Sanger, Texas Page 208 Official Budget 2022-23 The City of Sanger, Texas Page 209 Official Budget 2022-23 The City of Sanger, Texas Page 210 Official Budget 2022-23 The City of Sanger, Texas Page 211 Official Budget 2022-23 2022 TAX RATE CALCULATION WORKSHEET Texas Tax Code §26.04(c) requires the calculation of the no-new-revenue (NNR) tax rate and voter-approval tax rate for the taxing unit. These tax rates are expressed in dollars per $100 of taxable value calculated. The calculation process starts after the chief appraiser delivers to the taxing unit the certified appraisal roll and the estimated values of properties under protest. Texas Tax Code § 26.04(e-5) requires this calculation form be included in the annual budget document. The City of Sanger, Texas Page 212 Official Budget 2022-23 The City of Sanger, Texas Page 213 Official Budget 2022-23 The City of Sanger, Texas Page 214 Official Budget 2022-23 The City of Sanger, Texas Page 215 Official Budget 2022-23 The City of Sanger, Texas Page 216 Official Budget 2022-23 The City of Sanger, Texas Page 217 Official Budget 2022-23 The City of Sanger, Texas Page 218 Official Budget 2022-23 The City of Sanger, Texas Page 219 Official Budget 2022-23 The City of Sanger, Texas Page 220 Official Budget 2022-23 The City of Sanger, Texas Page 221 Official Budget 2022-23 The City of Sanger, Texas Page 222 Official Budget 2022-23 GLOSSARY OF TERMS Accrual Basis of Accounting The basis of accounting whereby revenue projections are developed recognizing revenues expected to be earned in the period, and expenditure estimates are developed for all expenses anticipated to be incurred during the last fiscal year. Ad Valorem Latin for “according to the value of.” Refers to the tax assessed against real (land and building) and personal (equipment and furniture) property. Appropriation A legal authorization granted by a legislative body to make expenditures and to incur obligations for specific purposes. An appropriation is usually limited in the amount and as to the time when it may be expended. Assessed Valuation A valuation set upon real estate and certain personal property by the appraisal district as a basis for levying property taxes. Assets Resources owned or held by a government which has monetary value. Audit The annual formal examination of the City’s financial statement by an independent third-party accounting firm. Balanced Budget A budget that is resources (revenues, fund balance) that equals, or is greater than, uses (expenditures/expenses, capital outlay). Basis of Accounting The timing method used in the recognition of revenues and expenditures for financial reporting purposes. Bond A written promise to pay a specified sum of money at a specified date or dates in the future, called the maturity date(s), together with periodic interest at a specified rate. Budget A plan of financial operation embodying an estimate of proposed expenditures for any given period and the proposed means of financing them. Capital Expenditures/ Outlays Expenditures which result in the acquisition of or addition of fixed assets. Capital Projects Funds Funds created to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds and trust funds). Cash Basis of Accounting The method of accounting under which revenues are recorded when received and expenditures are recorded when paid. CIP Acronym for Capital Improvement Plan. CCN A Certificate of Convenience and Necessity (CCN) gives a public utility the exclusive right to provide retail utility service to an identified geographic area, referred to as the certified service area. DATCU Acronym for Denton Area Teachers Credit Union. Debt Service Payment of interest and repayment of principle to holders of a government’s debt instruments. Debt Service Fund A fund established to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. The Town has no debt; therefore, no debt service fund budget is presented. The City of Sanger, Texas Page 223 Official Budget 2022-23 DFW Acronym for The Dallas - Fort Worth area. EMS Acronym for Emergency Medical Services. Encumbrances Commitments related to unperformed (executory) contracts for goods and services. Enterprise Fund A proprietary fund type used to report activity for which a fee is charged to external users for goods or services. ERCOT Acronym for Electric Reliability Council of Texas. Expenditures Decreases in net financial resources. Expenditures include current operating expenses which require the current or future use of net current assets, debt service, and capital outlays. FM Designation for Farm to Market road. Fiduciary Fund A fund type used to report assets held in a trustee or agency position for other entities. Fund An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. Fund Balance (Equity) The difference between fund assets and fund liabilities reported in the Town’s governmental funds. For Budget presentation purposes, Fund Balance shall be defined as Unassigned Fund Balance for governmental funds and as Net Working Capital for proprietary funds. FY Acronym for Fiscal Year. GAAP Acronym for Generally Accepted Accounting Principles, which are a collection of rules and procedures that set the basis for the fair presentation of financial statements. The accounting and reporting policies of the Town conform to the GAAP applicable to state and local governments. GASB Acronym for Government Accounting Standards Board, an independent, non-profit agency responsible for the promulgation of accounting and financial reporting procedures for governmental entities. General Fund General Operating Fund of the Town, accounting for the resources and expenditures related to the generally recognized governmental services provided. Governmental Funds Funds generally used to account for tax-supported activities. There are five (5) types of governmental funds; the general fund, special revenue funds, debt services funds, capital projects funds and permanent funds. HOT Acronym for Hotel Occupancy Tax. I&I Acronym for Inflow & Infiltration. Inflow happens when groundwater and stormwater seep into sanitary sewer systems through private and public defects within the collection system. Infiltration is when groundwater enters the sanitary sewer system through faulty pipes or manholes. I&S Acronym for Interest & Sinking. Infrastructure Public domain fixed assets such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems and similar assets that are immovable and of value only to the government unit. The City of Sanger, Texas Page 224 Official Budget 2022-23 Internal Service Fund A fund used to account for the financing of goods or services provided by one department or agency to other departments or agencies of a government, or to other governments, on a cost-reimbursement basis. The Town’s Equipment Replacement, Technology Replacement and Building Maintenance & Investment Funds are internal service funds. MICU Acronym for Mobile Intensive Care Unit. M&O Acronym for Maintenance & Operations Major Fund A fund whose revenues, expenditures, assets or liabilities are greater than ten percent of corresponding totals and at least five percent of the aggregate amount for all governmental and enterprise funds. Modified Accrual A combination of cash basis and accrual basis. Revenues are recognized when they are (1) measurable and (2) available. Expenditures are fully accrued as they are measurable when they are incurred. No-New-Revenue (NNR) Tax Rate The no-new-revenue tax rate enables the public to evaluate the relationship between taxes for the prior year and for the current year, based on a tax rate that would produce the same amount of taxes if applied to the same properties taxed in both years. Ordinance A formal legislative enactment by the governing body of a municipality. If it is not in conflict with any higher form of law, such as a state statute or constitutional provision, it has the full force and effect of law within the boundaries of the municipality to which it applies. The difference between an ordinance and a resolution is that the latter requires less legal formality and has a lower legal status. Revenue raising measures, such as the imposition of taxes, special assessments and service charges, usually require ordinances. P&Z Acronym for Planning & Zoning. Proprietary Fund A fund type used to account for activities that involve business-like operations. R&M Acronym for Repairs & Maintenance. Revenues Increases in net financial resources. Revenues include the receipt of assets for goods sold or services provided in the current reporting period, intergovernmental grants, and interest income. SCBA Self-contained Breathing Apparatus Special Revenue Fund A fund used to account for the proceeds of specific revenue sources (other than expendable trusts or major capital projects) that are legally restricted to expenditure for specifies purposes. GAAP only require the use of special revenue funds when legally mandated. These include the Court Technology and Court Security Funds. SWOT Acronym for an analysis of the City’s Strengths, Weaknesses, Opportunities and Threats. Tax Levy The total amount of taxes imposed by the Town of taxable property within in its boundaries. Tax Rate The dollar rate for taxes levied for each $100 of assessed valuation. TBD Acronym for To Be Determined. TXDOT Acronym for Texas Department of Transportation. Transfer The movement of monies from one fund, activity, department, or account to another. This includes budgetary and/or movement of assets. The City of Sanger, Texas Page 225 Official Budget 2022-23 Voter-Approval Tax Rate The voter-approval tax rate is a calculated maximum rate allowed by law without voter approval. The calculation splits the voter-approval tax rate into two separate components - a no-new-revenue maintenance and operations (M&O) rate and a debt service rate. WW Acronym for Waste Water. WWTP Abbreviation for Waste Water Treatment Plant. The City of Sanger, Texas Page 226 Official Budget 2022-23