Page 12 - FY2020Colleyville

• Provides a balanced budget

The fiscal year 2020 proposed budget is a balanced budget, consistent with both
the City’s Charter and state law requirements. Operating expenditures are funded
with operating revenues. Operating funds maintain a fund balance above the 90-
day reserve at all times, as required by the City’s financial policies. The City’s
practice is to a maintain fund balance of at least 100 days, which is accomplished
in the proposed budget.

• Better aligns capital expenditures with capital funds

Staff examined the budget line-by-line in an effort to place expenditures in the
most appropriate fund. This effort led to the identification of two items currently
being funded in the General Fund that should be contained in the capital funds.
These items are the annual concrete contract for $400,000 and the annual street
markings project for $100,000. By aligning with the correct capital fund, we were
able to free up the General Fund to provide for enhanced public safety, absorb
normal cost increases, and continue to invest in our employees with merit
increases and steady health insurance rates.

• Adjusts General Fund revenue to account for legislative changes and
transitioning to nearing residential build-out

The proposed budget accounts for H.B. 3535 which was approved by the Texas
th
Legislature during the 84 Legislative Session by significantly reducing franchise
fee revenue. The bill essentially allows companies that provide
telecommunications and cable or video services to pick whether they want to pay
telecommunications franchise fees or cable/video franchise fees, but not both. The
proposed budget also reflects Colleyville nearing residential build-out and
transitioning to more of a redevelopment and rehabilitation phase by reducing
building permit and associated development fee revenue.

• Demonstrates responsible fiscal management with corporate-like
efficiency

City staff has focused on efficiency and sustainability over the last two years,
saving nearly $1,000,000 in General Fund operating costs. This effort to reduce
expenditures was about more than just limiting labor costs and saving dollars. It
was an effort to bring corporate-like efficiency to the organization. Our strategy
is to only take in the revenue necessary to provide programs and services, rather
than accept the maximum possible revenue and then decide how to spend it. This
effort continues with the fiscal year 2020 proposed budget. The retirement of the
fleet service manager in the summer provided an opportunity to evaluate how the
City conducts its fleet purchasing and maintenance operations. Rather than fill the
position, the City will shift the management oversight to the current field
operations supervisor. Further, the City proposes a new contract with Enterprise
Fleet Management to assist the City staff with fleet purchasing and maintenance

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