Public Hearing 2020 Proposed Budget 2019 Proposed Tax Rate - PowerPoint PPT Presentation

Public Hearing 2020 Proposed Budget 2019 Proposed Tax Rate September 27, 2019 9/27/2019 1

City of Hedwig Village Taxable Values Taxable Values 2013 $729,109,159 7.96% 2014 $803,791,113 10.24% 2015 $927,369,374 15.37% 2016 $985,120,836 6.23% 2017 $1,033,346,655 4.90% 2018 $1,021,473,308 -1.15% 2019 $1,066,267,763 4.39% 2012 2013 2014 2015 2016 2017 2018 2019 Tax Year 2019 - Exemptions 27% - Over 65 75% - Homestead 9/27/2019 2

City of Hedwig Village General Fund Revenue Summary Projected 2019 Budget vs. 2019 Full-Year Preliminary 2020 Prelim Budget Budget 12/31/2019 2020 Budget Net Difference General Fund @6/30/19 Proposed Tax Rate = $0.323478/$100 REVENUES Property Taxes - Rollback Rate 2,314,851 2,283,687 2,603,000 288,149 12% 36% 36% 39% Sales Tax 1,895,000 1,895,000 1,895,000 0 0% 29% 30% 29% Franchise Fees 345,000 340,000 400,000 55,000 16% 5% 5% 6% Permits 225,000 500,000 350,000 125,000 56% 3% 8% 5% Unrestricted Revenue 186,000 102,667 103,000 (83,000) -45% 3% 2% 2% Restricted Revenue - Metro & Others 1,222,600 969,700 973,600 (249,000) -20% 19% 15% 15% Municipal Court 286,000 216,100 250,000 (36,000) -13% 4% 3% 4% Interest 2,500 0% 32,000 1% 32,000 0% 29,500 1180% TOTAL REVENUES 6,476,951 100% 6,339,154 100% 6,606,600 100% 129,649 2% 2019 Budget vs. 2020 Preliminary Budget 129,649 9/27/2019 3

City of Hedwig Village Departmental* Expense Summary Projected 2019 Budget vs. 2019 Full-Year Preliminary 2020 Prelim Budget Budget 12/31/2019 2020 Budget Net Difference General Fund @6/30/19 Proposed Tax Rate = $0.323478/$100 EXPENDITURES General Operations 425,300 426,460 440,900 15,600 4% 7% 7% 7% Fire Department 1,146,000 1,146,000 1,207,300 61,300 5% 18% 18% 18% Police Department 2,943,050 45% 2,874,622 46% 3,124,950 47% 181,900 6% Municipal Court 254,150 4% 229,481 4% 215,750 3% (38,400) -15% Blding/Grnds/Parks/PW(Garbage) 1,208,450 19% 1,038,636 17% 1,108,600 17% (99,850) -8% Prof Srv/Community 331,000 5% 440,800 7% 429,000 6% 98,000 30% Reserve (Change) 169,000 3% 90,854 1% 80,100 1% (88,900) -53% TOTAL EXPENDITURES 6,476,951 6,246,853 6,606,600 129,649 2% 100% 100% 100% 2019 Budget vs. 2020 Preliminary Budget 129,649 $ 30,149 – Initial Increase - Rollback Rate $ 37,600 – Health Insurance Increase $ 3,000 – Operating Exp. (HCAD & O365 increased) $ 5,900 – Reserve Schedule Increase $ 53,000 – Street Infrastructure $ 99,500 – $.01 cent over Rollback Rate $129,649 – Total Increase from 2019 *For presentation purposes, restricted revenue have been assigned to the department within which they are spent. 4 9/27/2019

City of Hedwig Village Summary of General Fund Expenditures Expense Summary by Classification 2020 Preliminary 2019 Budget Difference Budget Personnel Expenditures $4,190,273 65% $4,263,932 65% $73,659 (Includes VFD Personnel) Operating/Maint. 1,480,152 23% $1,626,853 25% $146,701 Expenditures (Includes VFD ops) Capital $637,525 10% $635,715 10% ($1,810) Expenditures (Includes VFD Capital) Designated 195,000 3% $180,100 3% ($14,900) Reserves Use of Designated ($26,000) 0% ($100,000) (2%) ($74,000) Funds TOTAL $6,476,951 $6,606,600 $129,649 5 9/27/2019

City of Hedwig Village Detail on 2019 vs 2020 Expenditure Variances 2019 Budget vs 2020 Prel. Budget Personnel Employer Retirement Benefit Plans $3,100 Health Insurance and Taxes $10,700 Salary Increases ($8,450) VFD Personnel Increases $68,309 Total Personnel $73,659 Operating/Maint. Misc. Operation Increases (includes VFD ops) 146,701 Total Operating $146,701 Capital HV Capital (Computers and Misc.) ($75,900) Street/Drainage/Flood Infrastructure $53,000 PD License Plate Reader $12,000 1 PD Unmarked Vehicle $25,000 VFD Capital Misc. ($15,910) Total Capital ($1,810) Designated Reserves ($14,900) Use of Designated Funds ($74,000) TOTAL $129,649 9/27/2019 6

City of Hedwig Village Reserves Schedule Estimated Funds Over / Estimated TOTAL Useful Replacement Reserved Under Proposed Life RESERVED @ Year Life Cost Prior Yrs Reserve 2020 Budget Remaining 12/31/2020 73,376 Computer System - Software/Hardware 7 4 185,000 36,076 148,924 37,300 Building/Roof/Mechanical Equipment 2008 14 2 115,000 0 115,000 57,500 57,500 Total G&A Reserves 300,000 36,076 263,924 94,800 130,876 119,878 Computer System - Software/Hardware 7 4 215,000 88,478 126,522 31,400 10,500 Building/Roof/Mechanical Equipment 2017 14 11 115,000 0 115,000 10,500 10,205 PD - 250KW Generator 2017 20 17 75,000 6,105 68,895 4,100 405,000 94,583 310,417 46,000 140,583 Total Police Department Reserves 14,229 Park Equipment 15 5 45,000 6,429 38,571 7,800 7,800 14,229 45,000 6,429 38,571 Total Police Department Reserves 15,167 City Hall - 150KW Generator 2008 20 8 60,000 8,667 51,333 6,500 Total Public Works Reserves 6,500 15,167 60,000 8,667 51,333 Concrete Streets 0 50 32,799,540 0 32,799,540 0 Asphalts Streets 0 25 13,364,888 0 13,364,888 0 Total Traffic & Mitigation Reserves 46,164,428 0 46,164,428 0 0 Emergency Preparedness 0 25,000 500,000 0 500,000 25,000 GRAND TOTAL FOR RESERVES 47,474,428 145,754 47,328,673 180,100 325,855 Needed Annually 9/27/2019 7

City of Hedwig Village Estimated EOY Balances Proposed 2020 Budget ESTIMATED CASH BALANCES: @ 12/31/2019 @ 12/31/2020 w/tax rate .323478 GENERAL FUND: $503,497 $503,497 CAPITAL - TAX NOTE $340,781 $71,281 POLICE SEIZURE $1,779 $1,779 DEBT SERVICE $91,622 $97,122 CONGESTION/MITIGATION $399,625 $399,625 ESTIMATED TOTAL $1,337,304 $1,073,304 RESERVES: OPERATING $95,439 $95,439 STREET AND DRAINAGE $495,990 $395,990 EQUIPMENT REPLACEMENT (Schedule) $145,754 $300,854 EMERGENCY $0 $25,000 $737,183 $817,283 2020 PROPOSED BUDGET - REVENUE OVER / (UNDER) EXP. 0 9/27/2019 8

City of Hedwig Village Debt Service Fund Opportunity to Issue Debt for Infrastructure – Street / Drainage Improvements without a big increase in the tax rate. Debt per capita is $1,754 9/27/2019 9

City Comparisons Taxable Debt 2018 Tax 2018 City Value @ 4/5/19 EOY NOMINAL Exemption Sales Tax 2018 Tax Rate Revenue Homestead = 20% Bellaire (16,855) $4,794,786,822 129M .431 Over 65 = $135K $2,387,124 Disability = $135K No Homestead Bunker Hill (3,759) $2,203,483,895 9M .277 $164,869 Over 65 = $15K Homestead = 20% Hedwig (2,667) $1,021,312,214 5M .307 $1,956,338 Over 65 = $20K Homestead = 20% Hilshire (761) $234,900,869 2.1M .568 Over 65 = $40K $52,674 Disability = $40K No Homestead Hunters Creek (4,374) $2,902,006,213 0 .184 $493,890 Over 65 = $10K Homestead = 14% Jersey Village (7,636) $1,080,532,017 12.1M .743 Over 65 = $50K $4,689,565 Disability = $75K No Homestead Piney Point (3,125) $2,658,354,937 1.5M .255 Over 65 = $21K $202,988 Disability = $21K Homestead = 20% Spring Valley (3,715) $1,232,443,822 12M .430 Over 65 = $20K $1,411,205 Disability = $20K No Homestead West Univ. (14,787) $6,168,681,873 42M .317 Over 65 = $185K $1,174,770 Disability = $185K 9/27/2019 10

Effective* Tax Rate Comparisons BELLAIRE Tax Rate $0.431 Tax Rate $0.277 BHV HEDWIG Tax Rate $0.307 Tax Rate $0.568 HILSHIRE HOUSTON Tax Rate $0.583 HUNTERS CRK Tax Rate $0.184 Tax Rate $0.743 JV Tax Rate $0.255 PPV 2015 TAX RATE Tax Rate $0.430 2016 TAX RATE SV 2017 TAX RATE 2018 TAX RATE WEST U Tax Rate $0.317 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 9/27/2019 11

City of Hedwig Village 2018 Property Tax Bill $0.027463 $0.011550 $0.081780 $0.224874 Spring Branch ISD 59% Harris County 26% $0.623620 Hedwig Village Operations 10% $1.394500 Hedwig Village Debt 3% Memorial Villages Water Authority 1% Port of Houston <1% 9/27/2019 12

City of Hedwig Village Estimated Revenues from 2019 Tax Rates Addt'l Rev M&O Rate I&S Rate TOTAL Above Tax Rate Revenue Tax Rate Revenue TAX RATE Revenue Rollback Rate CURRENT TAX RATE: 2018 Tax Rate: 0.224874 $2,297,028 0.081780 $835,361 0.306654 $3,132,389 TAX RATE: 2019 Tax Rate Effective Rate (E) 0.224703 $2,395,000 0.076609 $816,000 0.301312 $3,211,000 Rollback (R) 0.236869 $2,525,000 0.076609 $816,000 0.313478 $3,341,000 Rollback + .05 ¢ (+.05) 0.241869 $2,578,000 0.076609 $816,000 0.318478 $3,394,000 $53,000 Rollback + 1 ¢ (+1) 0.246869 $2,632,000 0.076609 $816,000 0.323478 $3,448,000 $107,000 Rollback + 2 ¢ (+2) 0.256869 $2,738,000 0.076609 $816,000 0.333478 $3,554,000 $213,000 9/27/2019 13

City of Hedwig Village Tax Bill Impact 2019 Tax Rates HOME VALUE COMPARISON - 1 Million Dollar Home w/Homestead Exemption Current Tax Rate Effective Tax Rate Rollback Rollback Rollback + 1¢ Rollback + 2¢ 2018 Rate 2019 Rate (E) 2019 Rate (R) 2019 Rate (+.05) 2019 Rate (+1) 2019 Rate (+2) Residential appraised value $800,000 $800,000 $800,000 $800,000 $800,000 $800,000 Tax rate (per $100) 0.306654 0.301312 0.313478 0.318478 0.323478 0.333478 Tax $2,453 $2,410 $2,508 $2,548 $2,588 $2,668 Tax bill would increase over the Effective Rate $97 $137 $177 $257 9/27/2019 14