Page 13 - City of Arlington FY19 Adopted Operating Budget

Manager’s Message

tax ceilings for Seniors and Disabled Persons by freezing the value of their property. In total, residents have more than $3.8
billion in value exempt from property tax.

Water Utilities Fund

This fund covers the operation of our Water Utilities Department.
Due to capital investment increases at both the Water Utilities’ water treatment infrastructure and Trinity River Authority’s (TRA),
there will be increases in both water and sewer rates. We expect this trend to continue in the coming years as TRA rehabilitates
its collection system and meets more stringent regulations.

Water Utilities has reduced its controllable expenses by a total of $580,534. The reduction consists of $42,482 in salaries and
benefits, $200,000 in Fixed Assets-Motor Vehicles, and $200,000 in Professional Services. Water Utilities also continues to
invest in the City’s infrastructure by prioritizing and targeting water, sewer and treatment plant replacements and aligning these
replacements with street renewals to minimize costs and reduce impact on residents. Water Utilities will also continue to invest
in technology where possible to achieve efficiencies and reduce costs.

The water utility bill also includes the rate for the collection of garbage and drainage utility fees. As outlined in its contract,
Republic Waste Services, the City’s waste contractor, has requested to raise its rates for residential customers by $1.00 a month
on October 1 .
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Convention and Event Services Fund

This fund is for the operation of our Convention Center, the Arlington Convention and Visitors Bureau, and various other efforts
to increase tourism. Revenues to the fund come from Convention Center operating revenues, stadium rent and naming rights
from AT&T Stadium and Hotel Occupancy Tax (HOT). Occupancy tax trends continue to exhibit strong growth; the FY 2019
HOT revenue budget is anticipated to be 5.1% percent above the FY 2018 budget level. The FY 2019 budget includes significant
funding for the improvement of the functionality and appearance of the Convention Center with $950,000 allocated for repairs
and upgrades, including repairs to the air wall in the Grand Hall, replacement of carpet, and concessions equipment. An
additional $870,000 has been budgeted for the Convention and Visitors Bureau for destination marketing, a mobile Visitors’
Information Center display, and additional reserve funding.

Park Performance Fund

This fund accounts for the revenues and expenditures from the City’s golf and tennis operations and other recreational activities.

Recreation program revenues in the fund have been performing better than budgeted over the last several years. However,
golf revenues have experienced less growth, and are affected by weather conditions and competition from other regional
courses. Significant upgrades to Texas Rangers Golf Club (formerly Ditto) are being finalized, and the new course and club
house are expected to be fully operational by the summer of 2019, which will increase golf revenues in the fund.

Storm Water Utility Fund

This fund was established to address the City’s need to manage issues associated with storm water run-off.

In addition to continuing to invest in planned storm water projects, the Storm Water Utility Fund also includes funding for a new
Graduate/Civil Engineer to assist with floodplain management.

2019 Adopted Budget and Business Plan viii City of Arlington, Texas