City of Coleman

Budget for Fiscal Year
October 1, 2011 thru September 30, 2012

1. August 31st, 2011; The Preliminary Budget for FY 2011-2012 to be filed with the City Clerk.
   (Must be at least 30 days prior to the time which the city passes the Tax Levy) LGC 102.005
   The preliminary budget shall be published on the City's website. LGC 102.005 (c)
2. September 14, 2011; Notice of a Public Hearing for the proposed budget for FY 2011-2012 to be published in the local paper. LGC 102.006(c)
   (Must be published in a local paper at least 10 days prior to the public hearing and not more than 30 days prior to the public hearing)
3. September 19, 20, and 22, 2011, 6:00 P.M.; Budget Workshops.
4. September 29th, 2011 6:00 P.M.; Public Hearing on the proposed Budget. LGC 102.006
5. September 29, 2011, 6:00 P.M.; The City Council shall pass an ordinance approving the budget for the Fiscal Year 2011-2012. LGC 102.007
6. September 29, 2011, 6:00 P.M.; The City Council shall pass an ordinance approving the Tax Levy for 2011. LGC 102.007 (c)
   (30 days after preliminary budget is presented to the City Clerk)
7. September 29, 2011; The final budget for FY 2011-2012 shall be filed with the City Clerk. LGC 102.009 (d)
8. September 30, 2011. The County Clerk shall be presented a final copy of the approved budget for FY 2011-2012 and same shall be filed with the office the County Clerk. LGC 102.009 (d)
9. September 30, 2011. The City clerk shall post a final copy of the budget on the City's website. LGC 102.008

The City of Coleman shall conduct a public hearing on the proposed budget for the fiscal year for 2011-2012 on September 29, 2011 at 6:00 P.M. at the Coleman City Hall located at 200 W. Liveoak, Coleman, Texas 76834. Coleman citizens interested in making any comments or recommendations regarding the proposed budget are encouraged to attend the meeting and shall be given an opportunity to make public comments. This notice shall be published one time in accordance with the provisions of section 102.006(c) of the local government code.
Signed

Karen Langley
City Secretary
City of Coleman

Please publish this notice in the Coleman Chronicle and Democrat-Voice on September 14, 2011.
Please provide the City of Coleman with a publisher's affidavit on the publication of this Public Notice.

This notice was emailed to the Coleman Chronicle and Democrat-Voice on September 9, 2011.

CITY OF COLEMAN 200 W. LIVE OAK ST. P. O. BOX 592 COLEMAN, TEXAS 76834 325-625-4116 FAX 325-625-5837

• 09-29-11
  
  To: The Honorable Mayor Pro Tem - Tracy Rankin
  
  And Members of the City Council
  
  Re: Presentation of the Annual Budget for FY 2011-2012
  
  Ladies and Gentleman:
  
  In accordance with the Local Government Code Section 102.001, and Section VII of the City Charter, the annual budget is hereby submitted for your consideration and review. This year's proposed budget provides an overview of the anticipated revenues and expenditures in the General Fund and Utility Fund as well as the Airport Fund, Garbage Fund and Special Projects.
  We have interviewed department heads and supervisors in order to estimate the City's financial needs identified within each department. We have also identified all of the Capital Outlay and Capital Improvements outlined within the departmental budgets which are anticipated for the upcoming fiscal year. In order to fiscally reduce the impact on this budget; we have planned for the lease/purchase of a number of the equipment items requested by department heads. Some of the smaller purchases will reflect a 3 year pay out while the larger purchases reflect a 5 year payout period. These capital outlay purchases are not only included in the departmental budgets but they are also broken out in the General Fund and Utility Fund in Special Sections of the budget. Some of the capital outlay purchases are expected to be paid for through current revenues and will not be financed through lease purchase arrangements. Capital Outlay / Capital Improvement request in the General Fund are $171,452.00 while the Capital Outlay / Capital Improvement request in the Utility Fund are estimated at $ 250,737.00. Capital Improvement Request for the Airport is estimated at $25,000.00 for a new hangar access ramp.
  
  The General Fund revenues are anticipated to be $3,357,617.00 and the General Fund Expenditures are expected to be $3,357,617.00 which represents a balanced budget for the General fund. In order to achieve a balanced budget in the General Fund, some $ $658,787.00 will need to be transferred from the Utility Department. The Electric Distribution Department is also transferring some $1,038,473.00 sharing in its obligation to balance the budget in the general fund for the new fiscal year. Twenty percent (20%) of the City's long term debt obligations are being paid out of revenues from the City's I & S fund. The remaining portions of the City's Tax Revenues are applied to maintenance and operations within the general fund. The tax revenues are based on a 97% collection rate.
  
  In accordance with the instructions received from Council Members during the budget workshop, the City staff members have initiated the following adjustments to the preliminary budget into the final budget:
  
  
  • All staff members who have received the 7% TMRS incentive from the City will have that incentive discontinued after October 1st, 2011.
  • All staff members who have had their 7% TMRS incentive removed from their benefits have been provided with a 7% salary increase after October 1st, 2011 to make up for the loss of their previous 7% TMRS benefit.
  • The City staff members have also included the Longevity pay incentive in the upcoming budget as requested by the City Manager and approved by the City Council.
  • I have also reconfigured the outright cost for the purchase of the 3 - OCR main breakers within light distribution to a lease/ purchase over a 5 year period which provides the City with the ability to pay a 5% across the board cost of living increase for all employees who have in fact been negatively impacted by the 5.2% social security benefit loss. (We have also re-checked our final social security figures in the general fund and utility fund which when added to the lease purchase savings of the 3 OCR main breakers provided us with enough combined revenues to re-instate this loss of this income to our employees. I have not released this information to anyone as I believe that this is a Council decision and should not be a political one. The fact is, that with the changes we have made, the funds are available and included within the budget should the Council elect to provide for a 5% across the board salary increase for their employees.
  • I have also re-instated the only figures that we have available for depreciation cost which are supported by reserve funds to balance the utility fund budget. As previously discussed, the depreciation figures are designed to build reserves over the lifetime of the infrastructure to allow the City to replace infrastructure at the time when it needs to be replaced. Under the current arrangement no additional reserves will be retained since they are supported by reserves rather than utility revenues. No depreciation funds will actually be expended and no reserve fund will actually be required to balance the budget.
  The Utility Fund revenues are anticipated to be $9,205,207.00 and the Utility fund expenditures are anticipated to be $9,205,207.00 which represents a balanced budget in the Utility Fund. Eighty per cent (80%) of the City's long term debt service is paid out of current utility fund revenues along with their regular cost of utility fund operations.
  
  Please also be advised that we have added (1) full time maintenance worker to take care of the City Hall, Police Station, Shop-Warehouse, and the Library. We are currently paying two people who come in at will, usually one day or more per week for 2 or 3 hours to clean and we pay them $13,920.00 per year for this service. We can really utilize the services of a full time maintenance person to clean all of these facilities and to be available as needed for special projects. The police department will certainly add a great deal of work in keeping all of our facilities clean and sanitary.
  
  I have also included the airport budget which reflects both revenues and expenditures totaling some $268,766.00. The garbage department revenues and expenditures reflect a balanced budget of $871,580.00. This includes both the 6% increase in cost of revenues and expenditures as per the City Council recently granting a rate increase to Allied Waste effective October 1st, 2011. A separate ordinance will be provided to the City Council in order to increase the City's rates and to prevent any loss to the City as a result of the increase from Allied Waste.
  
  The total budget revenues and expenditures are expected to be some $13,703,170.00 including all funds with the exception of the Texas Water Development Board. As of the end of this current fiscal year, the City has expended some$3,342,137.52 out of this fund and we have $2,244,139.18 remaining in the TWDB Project Fund. It is my hope that this proposed new budget will provide the members of the City Council with a comprehensive overview of the City's anticipated revenues and expenditures for FY 2011-2012 as well as meeting all of the minimum requirements of the State Law. I would also like to add a special word of appreciation to all the staff who have assisted in this process. We look forward to working with the Council as we work together in the next fiscal year to accomplish our common goals for the betterment of the City of Coleman.
  
  Respectfully Submitted,
  
  Paul Catoe
  City Manager
  City of Coleman

• THE CITY WILL LOSE SOME $11,337.26 SHOULD WE ELECT TO RETAIN THE SAME TAX RATE RATHER THAN ELECT THE EFFECTIVE TAX RATE. (ESTIMATED TO BRING IN APPROXIMATELY THE SAME TAX DOLLARS)

• .3334		EFFECTIVE TAX RATE (ESTIMATED TO BRING IN APPROXIMATELY THE SAME TAX DOLLARS)
  .3209		CURRENT TAX RATE
  .0125		INCREASE FROM THE CURRENT TAX RATE TO BRING IN THE ESTIMATED SAME TAX DOLLARS AS THE 2010 TAX REVENUES. (DUE TO LOSS OF SOME 3 MILLION DOLLARS IN PROPERTY VALUES)

• THE CITY MANAGER'S RECOMMENDATION IS TO PASS THE EFFECTIVE TAX RATE ON 09-29-11 IN ORDER TO KEEP THE CITY FROM LOSING APPROXIMATELY $11,337.26 IN TAX REVENUES.

• ESTIMATED DIFFERENCE ON A $25,000.00 HOME.		$3.12 PER YEAR
  ESTIMATED DIFFERENCE ON A $50,000.00 HOME.		$6.25 PER YEAR
  ESTIMATED DIFFERENCE ON A $75,000.00 HOME.		$9.38 PER YEAR
  ESTIMATED DIFFERENCE ON A $100,000.00 HOME		$12.50 PER YEAR