Page 12 - Microsoft Word - FY 2020 Adopted Budget Document

Manager’s Message

level. The FY 2020 budget includes funding for the improvement of the functionality and appearance of the Convention Center,
with $150,000 allocated for the replacement of HVAC air handling units in meeting rooms, as well as $30,000 for painting in the
Exhibit Hall area to give the space a more up-to-date appearance. An additional $350,000 has been budgeted for destination
marketing efforts by the Convention and Visitors Bureau.

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 relatively stable over the last several years. However, growth in golf
revenues has been challenging; these are affected by weather conditions and competition from other regional courses. It is
anticipated that both the new Mosaic recreation center and the new Alpha recreation center and library will open during the
summer of 2020. The FY 2020 budget includes $255,611 for staffing and operating costs at these centers. The budget also
includes $48,372 in funding in order to fully staff Natatorium facilities used jointly by AISD and City of Arlington to allow for a
variety of year-round aquatics programs.

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
Storm Water Engineering Technician to assist with floodplain management.

Street Maintenance Fund

Voters have approved spending one-quarter cent of sales tax receipts for the maintenance, rehabilitation and repair of Arlington’s
streets. Annual sales tax revenue has shown steady growth during the last few years, and we continue to see increasing
resources that provide support for the maintenance of our street infrastructure. The FY 2020 budget includes $616,000,
assuming support from the Arlington Tomorrow Foundation, for the first year of a four-year project in which City crews will
convert the City’s existing streetlights to more energy-efficient LED streetlights. The budget also includes $100,000 for the first
year of a five-year project to have the City’s streetlight posts repainted to prevent rust and deterioration and improve the aesthetic
appearance of the posts.

Debt Service Fund

The City incurs debt for the acquisition and construction of capital projects and must make annual payments to repay bonds
previously issued. General Obligation bonds are funded wholly through a designated portion of the City’s property tax rate,
while Certificates of Obligation incorporate other funding sources as well as ad valorem taxes. The portion of the 62.40 cent tax
rate per $100 of property value included in this budget for debt service is 17.73 cents.

With the most recent debt issuances in June 2019, the City is also meeting all Financial Policies established by the Council with
regards to debt per capita, debt to total taxable assessed value, and debt expenditures to total expenditures. By meeting these
policies, the credit rating agencies have upgraded the ratings for the City, Water Utilities, and Stormwater. Currently, the City
has the highest credit ratings in its history. The City, Water Utilities, and Stormwater are rated AAA by Fitch and Standard &
Poor’s, and Aa1 by Moody’s.

2020 Adopted Budget and Business Plan ix City of Arlington, Texas