Budget, Finance & Audit Committee Meeting Record- DRAFT

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3 Budget, Finance & Audit Committee Meeting Record- DRAFT Meeting Date: Convened: 1:00p.m. Adjourned: 2:12p.m. Committee Members Present: Jerry R. Allen, Chair Tennell Atkins, Vice-Chair Monica Alonzo Scott Griggs Staff Present: Jeanne Chipperfield, Jack Ireland, Edward Scott, Lance Sehorn, Jing Xiao, Debra Ojo, Karl Zavitkovsky, Earnest Lloyd AGENDA: 1. Approval of the February 4, 2013 minutes Presenter(s): Information Only: Action Taken/Committee Recommendation(s): A motion was made to approve the February 4, 2013 minutes. Motion passed unanimously. Motion made by: Tennell Atkins Motion seconded by: Monica Alonzo 2. Dallas Central Appraisal District Proposed Budget Presenter(s): Ken Nolan, Executive Director/ Chief Appraiser Information Only: X_ Action Taken/Committee Recommendation(s): N/A 3. Global Economic Overview and Domestic Fiscal Links Presenter(s): Karl Zavitkovsky, Director Information Only: X_ Action Taken/Committee Recommendation(s): N/A 4. Local Government Investment Cooperative (LOGIC) and TexPool Prime-Additions to Authorized Local Government Investment Pools-Memo Presenter(s): Corrine Steeger, Assistant Director Information Only: _X Action Taken/ Committee Recommendation(s): Recommended approval of resolutions on March 27 th agenda to authorize participation in additional investment pools. Motion made by: Tennell Atkins Motion Seconded by: Monica Alonzo

4 Budget, Finance & Audit Committee Meeting Record- DRAFT FYI 5. Quarterly Investment Report-December 31,2012 Presenter(s): Corrine Steeger, Assistant Director Information Only: X_ Action Taken/ Committee Recommendation(s): N/A 6. Excess Workers Compensation Insurance Presenter(s): Debra Ojo, Director Information Only: X Action Taken/ Committee Recommendation(s): 7. January 2013 Financial Forecast Report Presenter(s): Jack Ireland, Director Information Only: X_ Action Taken/ Committee Recommendation(s): N/A Jerry R. Allen, Chair Budget, Finance & Audit Committee

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40 Memorandum CITY OF DALLAS DATE: April 11, 2013 TO: Honorable Members of the Budget, Finance & Audit Committee Jerry R. Allen, Chair; Tennell Atkins, Vice-Chair; Monica Alonzo; Scott Griggs; Ann Margolin SUBJECT: Presentation to the Budget, Finance & Audit Committee: Office of the City Auditor Fiscal Year 2013 Third Quarter Update I will provide a briefing to the members of the Budget, Finance & Audit Committee on Monday, April 15, 2013 regarding: Office of the City Auditor Fiscal Year 2013 Third Quarter Update Sincerely, Craig D. Kinton City Auditor "Dallas, The City That Works: Diverse, Vibrant, and Progressive."

41 Budget, Finance and Audit Committee Office of the City Auditor Fiscal Year 2013 Third Quarter Update City of Dallas Office of the City Auditor April 15, 2013

42 Audit and Attestation Services Reports Issued Second Quarter, Fiscal Year 2013 Audit on the Design of Dallas Central Appraisal District s Internal Control over Total Exemption Processing Audit of MuniServices, LLC Contract Related to the Verification of Sales/Use Tax Receipts and Associated Fees Special Audit of the Accounts of Former Director of the Department of Park and Recreation, Paul Dyer Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 2

43 Audit and Attestation Services Reports Issued Second Quarter, Fiscal Year 2013 Independent Auditor s Reports on Applying Agreed-Upon Procedures Fiscal Year 2013 # 1 Drug Destruction Fiscal Year 2013 # 2 Weapons Destruction Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 3

44 Investigative Services Reports Issued Second Quarter, Fiscal Year 2013 Investigative Review of Misuse of City of Dallas Resources Investigative Report of the Department of Sanitation Services Abuse of Official Capacity Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 4

45 Audit and Attestation Services Anticipated Report Releases Third Quarter, Fiscal Year 2013 City s Self Insurance Programs General Liability Fines / Fees Processing and Effectiveness Selected Permits and Fees Citizen Centric Report Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 5

46 Audit and Attestation Services Projects In-Progress Third Quarter, Fiscal Year 2013 Sales/Use Tax Compliance Review Through MuniServices (Ongoing) Accounts Payable Arts and Cultural Program Funding Business Continuity Plan Contract Compliance Office Depot Software Licensing Agreements Water Customer Billings Payroll Audit Wastewater Collection and Treatment Purchasing / Contracting Processes Franchise Fees Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 6

47 Audit and Attestation Services Anticipated Project Starts Third Quarter, Fiscal Year 2013 Aircraft Rescue and Firefighting (ARFF) Controls over Cash Receipts and Collections Drug Articles and Weapons Destructions (as requested) Single Bid and Sole Source Reviews (as requested) Bond Statements (as requested) Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 7

48 Audit and Attestation Services Cancelled Projects Dallas Police Department Efficiency Study Follow-Up (FY 2012) Monthly Bank Reconciliation (FY 2012) Data Back-Up Services (FY 2013) Capital Programs (FY 2013) 8

49 Audit and Attestation Services Highlights Second Quarter, Fiscal Year 2013 Audit on the Design of Dallas Central Appraisal District s Internal Control over Total Exemption Processing (February 1, 2013) Dallas Central Appraisal District s (DCAD) Property Records/Exemption (PRE) department has designed reasonable controls to ensure that partial and total property tax exemptions are awarded in accordance with the Texas Property Tax Code, Chapter 11. Internal control design includes both manual and automated controls, such as computer application access, processing, and monitoring controls. PRE s Total Exemption policies and procedures were not always reflective of current practices relating to field inspections performed to assist in determining Total Exemption status. Observation was discussed with PRE management which immediately began the process of updating policies and procedures. Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 9

50 Audit and Attestation Services Highlights Second Quarter, Fiscal Year 2013 Audit of MuniServices, LLC Contract Related to the Verification of Sales/Use Tax Receipts and Associated Fees (February 1, 2013) Verified $783,376 in sales/use tax receipts collections that MuniServices, LLC (Consultant) identified as owed to the City from businesses operating in the City. Verified the accuracy of $195,844 in Consultant invoices received since contract inception through September 30, 2012 for payment of the Consultant s percentage of the amount collected under the contingent fee contract arrangement with the City. Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 10

51 Audit and Attestation Services Highlights Second Quarter, Fiscal Year 2013 Special Audit of the Accounts of Former Director of the Department of Park and Recreation, Paul Dyer (February 15, 2013) Former Director, Paul Dyer, resigned on October 30, Accounts were in order. Was timely removed from access to City systems. Does not owe any debt to the City. All City items assigned to the former Director were substantiated. Certain processing control issues noted during the Special Audit. Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 11

52 Audit and Attestation Services Highlights Second Quarter, Fiscal Year 2013 Independent Auditor Reports on Applying Agreed-Upon Procedures Fiscal Year 2013 #1DrugDestruction(February 28, 2013) o 82 drug invoices and associated 222 drug articles totaling 2, pounds destroyed. No exceptions were noted. Fiscal Year 2013 #2Weapons Destruction (March 28, 2013) o 2,207 weapons destroyed. Exceptions Noted: Two weapons had National Integrated Ballistics Information Network (NIBIN) matches for unrelated offenses removed from the destruction. One weapon did not have appropriate authorization for disposal removed from the destruction. Fourteen weapons had incorrect service numbers recorded in Evidence Manager corrections were made and verified prior to the destruction. One weapon had incorrect serial number recorded in Evidence Manager correct serial number was updated and verified prior to the destruction. Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 12

53 Investigative Services Highlights Second Quarter, Fiscal Year 2013 Investigative Review of Misuse of City of Dallas Resources (January 18, 2013) Department of Park and Recreation (PKR) investigation involving two Tension Park Golf Course (Tenison) employees misuse of City resources. Allegations of two employees misuse of time, improper use of City equipment, and theft of property (new and salvaged parts) at Tenison. Evidence supports that the employees violated City Personnel Rules and potentially committed criminal offenses. PKR terminated both employees involved in the misuse of City resources on October 10, 2012 and neither employee appealed the termination. PKR s Superintendent of Special Services has implemented a detailed schedule of equipment and supply inventories; has issued a memorandum stating work on personal vehicles, mowers, and other power equipment will not be permitted to take place on City maintenance facilities; and, PKR maintenance facilities will not be used as storage locations for personal vehicles and/or associated parts. Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 13

54 Investigative Services Highlights Second Quarter, Fiscal Year 2013 Investigative Report of the Department of Sanitation Services Abuse of Official Capacity (March 29, 2013) Allegations involving the use of City equipment and employee services for other than official City business. Department of Sanitation Services (SAN) Management requested Dallas Police Department Public Integrity Unit (DPD-PIU) to conduct City-wide integrity check involving brush and bulk trash collection crews. Undercover operation resulted in DPD-PIU finding three SAN employees who, as crew leaders, were willing to take money to pick up brush and bulk trash at unauthorized locations outside the districts where the crews were assigned. DPD-PIU filed one case of Abuse of Official Capacity, a Class B criminal misdemeanor, against each of the employees, and all are currently awaiting trial dates. Evidence suggests the employees violated the City s Personnel Rules regarding dishonesty, theft, abuse of City property, misconduct, and disregard of the public trust. Two of the employees were terminated and the third employee was issued a 10 day suspension for violations of City Personnel SAN is currently undergoing a review and update of internal control processes. Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 14

55 QUESTIONS? City of Dallas Office of the City Auditor April 15, 2013 Office of the City Auditor / Audit, Attestation and Investigative Services Update Fiscal Year 2013 Third Quarter 15

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57 Budget, Finance and Audit Committee April 15, 2013

58 Overview In September 2012, an audit of selected landfill financial controls was released by the City Auditor reporting eleven findings with recommendations To date, substantial progress has been made for all findings Sanitation Services has strengthened its Financial Management Division and worked closely with the City Manager s Office (CMO) Internal Controls Task Force to implement recommendations, as well as best practices 2

59 Status of Landfill Audit Findings I. Landfill and transfer stations lacked physical safeguards to protect personnel, cash, and equipment Access at all locations is restricted to authorized personnel only and visitors must sign in using a log book Checks are properly stored in a locked file cabinet Cash Handling Procedures have been updated and staff has received cash handling training Safe combinations and door security codes are changed quarterly and when personnel changes occur Ongoing Action Item Camera upgrades for Scale Houses at McCommas Bluff Landfill and Northwest Transfer Station will begin in late Spring 2013 Upgrade will include additional cameras over cashier windows, audio recordings, and six months of data storage 3

60 Status of Landfill Audit Findings II. There were lack of controls over customer vehicle information which could result in lost landfill revenue A. Credit customers Scale House staff checks vehicle information entered into self service kiosks by credit customers Customer Service Representatives (CSRs) have received training to identify company name, truck ID#, and container type/sizes WasteWORKS (billing system) was upgraded to print vehicle information on the Scale House receipts in order for CSRs to verify vehicle information 4

61 Percent of Vehicles Monitored for All Haulers FY Number of Vehicle Corrections for All Haulers FY Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 5

62 Status of Landfill Audit Findings II. There were lack of controls over customer vehicle information which could result in lost landfill revenue (continued) B. Cash customers New Cash Customer Process was implemented on January 2, 2013 Cash customers apply for vehicle identification cards which identify their company, vehicle information and vehicle tare weights (eliminates manual tare weight entry) CSRs input the vehicle number into WasteWORKS to access data needed to process transaction Cash customers without vehicle cards are required to weigh in and out Manual tare entries for cash customers have decreased by 64% since January implementation. 6

63 Status of Landfill Audit Findings II. There were lack of controls over customer vehicle information which could result in lost landfill revenue (continued) Ongoing Action Item Sanitation Services plans to implement a Radio Frequency Identification (RFID) System at McCommas Bluff Landfill and the Northwest Transfer Station Customers will be provided an RFID Tag (i.e. a toll tag) that will interface with the WasteWORKS System The customer s company, vehicle information, and tare weight will automatically populate the CSRs WasteWORKS screen at the Scale House RFID will streamline current processes, reduce manual entry and ensure all customers are charged appropriately. Anticipate completion in FY

64 Status of Landfill Audit Findings III. WasteWORKS (billing system) security was insufficient to prevent unauthorized access A majority of the active users have been reviewed and all changes will be completed by the end of April 2013 to ensure appropriate access A bi annual process has been implemented to review all users in WasteWORKS to validate appropriate user access All changes to user set ups requires the completion of a Security Access Form and approval by an Executive Manager All invalid user ID s have been eliminated Ongoing Action Item By September 2013, WasteWORKS will be upgraded to automatically track changes to specified fields (user access, customer data, vehicle information, etc.) 8

65 Status of Landfill Audit Findings IV. Segregation of duties was not adequate to detect errors and reduce fraud risks As of November 2012, CSRs and supervisory duties are properly segregated at Scale House Operations Ongoing Action Item Segregation of duties for Administrative functions will be implemented as vacancies are filled Additional management review has been put in place until positions are filled 9

66 Status of Landfill Audit Findings V. Written policies and procedures were inadequate or not in accordance with City Administrative Directives Working with the CMO Internal Controls Task Force, Sanitation staff has updated the McCommas Bluff Landfill and Northwest Transfer Station processes for: Daily Deposit Preparation Acceptance of Credit Card Payments Cash Handling Procedures Ongoing Action Item By July 2013, Sanitation Services staff will work with the CMO Internal Controls Task Force to update or create processes for: Accounts receivable adjustments Administrative office segregation of duties Security deposits Credit customer application Monthly reconciliations Bank returned items/non sufficient fund procedures 10

67 Status of Landfill Audit Findings VI. Customer security deposit process did not provide adequate revenue protection for the City Process implemented to complete bi annual security deposit review September 2012 review resulted in the collection of additional security deposits from 22 customers ($1.4m ) New credit customers are required to submit a $1000 deposit and accounts are reviewed after 3 months Ongoing Action Item By July 2013, Sanitation Services staff will work with the CMO Internal Controls Task Force to review and document the customer security deposit process 11

68 Status of Landfill Audit Findings VII. Cash receipts and related activities were not properly reconciled Change funds are reconciled monthly to financial system Ongoing Action Items By July 2013, Sanitation Services staff will work with the CMO Internal Controls Task Force to update and create reconciliation processes for: Accounts Receivable Bank returned items Cash receipts Security Deposits 12

69 Status of Landfill Audit Findings VIII. Accounts receivable balances were not timely updated Monthly Journal Vouchers are completed to update the Accounts Receivable balance in financial system for monthly billing Customer payments are entered into WasteWORKS daily IX. Accounts receivable adjustments were not properly documented and authorized The Executive General Manager reviews and approves all adjustments to customer accounts in WasteWORKS Ongoing Action Item By July 2013, Sanitation Services staff will work with the CMO Internal Controls Task Force to update and create account adjustment processes 13

70 Status of Landfill Audit Finding X. Bank deposits were not timely The City Controller s Office (CCO) has developed a draft request for proposal (RFP) for a new armored car service which is undergoing final review XI. CCO was not timely recording and notifying departments of bank returned items CCO bank returned items was restructured to provide more timely recording and notification 14

71 Questions 15

72 Memorandum DATE April 5, 2013 CITY OF DALLAS TO The Honorable Mayor and Members of the City Council Financial Forecast Report The FY Financial Forecast Report based on information through February 2013 is attached and provided for your information. For FY , General Fund revenues are projected to be $400,000 below budget and expenditures are projected to be $482,000 below budget. This results in forecast revenues being in excess of forecast expenditures by $82,000. We will continue to monitor revenues and expenditures and keep you informed. Mary K. Suhni City Manager Attachment C: AC. Gonzalez, First Assistant City Manager Ryan S. Evans, Assistant City Manager Jill A. Jordan, PE., Assistant City Manager Forest Turner, Assistant City Manager Joey Zapata, Assistant City Mana 9er Jeanne Chipperfield, Chief Financial Officer Jack Ireland, Director, Office of Financial Services Dallas Together, we do t better!

73 GENERAL FUND COMPARISON OF FY REVENUES AND EXPENDITURES AS OF FEBRUARY 28, 2013 (000s) BUDGET VS YEAR-END FORECAST ITEM BUDGET YEAR TO DATE FORECAST VARIANCE Revenues $1,041,303 $637,382 $1,040,903 ($400) Expenditures $1,041,303 $416,053 $1,040,821 ($482) Net Excess of Revenues Over Expenditures/Transfers $0 $221,329 $82 $82 4/5/2013 3:46 PM 1

74 FINANCIAL FORECAST REPORT FY AS OF FEBRUARY 28, 2013 GENERAL FUND Revenues Total General Fund revenues are estimated to be $400,000 below budget. o o o o o Atmos franchise revenues are projected to be $881,000 below budget due to unusually warm winter weather which resulted in significantly less consumption and lower commodity prices. Municipal Court revenues are projected to be $2,157,000 below budget primarily as a result of a decrease in the number of citations being written. Vehicle Towing and Storage fees are projected to be $784,000 below budget primarily due to a decrease in the number of tows resulting from arrests, parking violations, and recovery of stolen vehicles. Parking Fines are projected to be $892,000 below budget due to lower ticket issuance as a result of fewer cars parking downtown because of construction and increased use of alternative public transportation. Miscellaneous revenue is projected to be $725,000 below budget primarily due to a decrease in commodity prices for paper and cardboard recycling. Expenditures Total General Fund expenditures are estimated to be $482,000 below budget. o o o o City Controller s Office is projected to be $241,000 below budget due to salary savings as a result of vacancies. Public Works is projected to be $294,000 below budget primarily due to salary savings as a result of vacancies. Sustainable Development and Construction is projected to be $74,000 below budget primarily due to delays in hiring. Fuel and Fleet costs are projected to be $1,300,000 over budget due to increased costs for fuel and parts, and additional usage of towing and paint and body repairs. PROPRIETARY FUNDS o o o o Convention and Event Services revenues and expenditures are both projected to be $4,975,000 over budget. The overruns are primarily due to three unbudgeted events: Bristol Meyers Squibb Diabetes National Sales Meeting, International Air-conditioning Heating Refrigeration Exposition, and a Keller- Williams nationwide meeting of realtors. WRR Municipal Radio revenues are projected to be $552,000 under budget primarily due to the sale of commercials being less than planned. Expenditures are projected to be $527,000 under budget due to a reduction in the sales commission costs which are driven by advertisement sales. Equipment Services revenues and expenditures are projected to be $2,885,000 and $2,971,000 over budget respectively. The expense overruns are primarily due to increased costs for fuel and parts, and additional usage of towing and paint and body repairs. Increased expenses will be charged back to user departments which accounts for the increased revenue in Equipment Services. CIS 911 System Operations revenues are projected to be $670,000 over budget due to higher than anticipated wireline revenues. 2

75 GENERAL FUND FORECAST OF FY REVENUES AS OF FEBRUARY 28, 2013 (000s) BUDGET VS REVENUES YEAR-END FORECAST BUDGET YEAR TO DATE FORECAST VARIANCE TAXES Ad Valorem Tax $451,489 $437,125 $453,306 $1,817 Sales Tax $231,463 $79,618 $232,869 $1,406 TOTAL TAXES $682,952 $516,743 $686,175 $3,223 FRANCHISE REVENUES Oncor Electric $49,323 $27,368 $49,517 $194 AT&T $14,875 $3,913 $14,923 $48 Atmos Energy $11,174 $2,569 $10,293 ($881) Time Warner Cable $6,170 $1,580 $6,200 $30 Other $18,096 $4,720 $18,496 $400 TOTAL FRANCHISE REVENUES $99,639 $40,150 $99,429 ($210) LICENSES AND PERMITS $9,808 $4,624 $9,596 ($212) INTEREST EARNED $755 $221 $755 $0 INTERGOVERNMENTAL $5,589 $0 $5,589 $0 FINES AND FORFEITURES Municipal Court $16,540 $5,315 $14,383 ($2,157) Vehicle Towing & Storage $7,678 $2,782 $6,894 ($784) Parking Fines $5,962 $957 $5,070 ($892) Red Light Camera Fines $6,867 $0 $6,867 $0 Public Library $603 $211 $553 ($50) TOTAL FINES $37,650 $9,265 $33,768 ($3,883) CHARGES FOR SERVICE Sanitation Service $59,838 $26,122 $60,542 $704 Parks $8,629 $3,657 $8,922 $293 Private Disposal Fees $18,864 $7,057 $18,881 $17 Emergency Ambulance $20,207 $4,352 $20,138 ($69) Security Alarm $4,231 $1,871 $4,300 $69 Street Lighting $1,200 $130 $1,186 ($14) Vital Statistics $1,492 $596 $1,581 $89 Other $17,729 $10,001 $18,047 $318 TOTAL CHARGES $132,190 $53,785 $133,597 $1,407 INTERFUND REVENUE $60,410 $7,687 $60,410 $0 MISCELLANEOUS $12,311 $4,908 $11,586 ($725) TOTAL REVENUE $358,351 $120,639 $354,729 ($3,623) TOTAL REVENUES $1,041,303 $637,382 $1,040,903 ($400) 3

76 GENERAL FUND FORECAST OF FY EXPENDITURES AS OF FEBRUARY 28, 2013 (000s) BUDGET VS EXPENDITURES YEAR-END FORECAST DEPARTMENT BUDGET YEAR TO DATE FORECAST VARIANCE Building Services $22,102 $9,316 $22,102 $0 Business Dev/Procurement Svcs $2,410 $901 $2,410 $0 City Attorney's Office $12,663 $4,848 $12,663 $0 City Auditor's Office $2,180 $778 $2,111 ($69) City Controller's Office $4,176 $1,533 $3,934 ($241) City Manager's Office $1,509 $793 $1,509 $0 City Secretary's Office $1,743 $689 $1,738 ($4) Civil Service $1,804 $641 $1,798 ($6) Code Compliance $30,359 $11,350 $30,446 $87 Court Services $11,519 $3,873 $11,219 ($300) Elections $1,120 $18 $1,118 ($1) Fire $203,346 $89,452 $203,307 ($39) Housing $9,119 $5,829 $9,114 ($4) Human Resources $3,802 $1,766 $3,797 ($6) Independent Audit $803 $0 $803 $0 Jail Contract - Lew Sterrett $8,229 $7,543 $8,229 $0 Judiciary $3,286 $1,289 $3,284 ($2) Library $20,295 $7,818 $20,295 $0 Management Services $4,646 $2,374 $4,426 ($220) Mayor and Council $3,864 $1,410 $3,864 $0 Non-Departmental $36,539 $8,271 $36,507 ($32) Office of Cultural Affairs $16,025 $8,738 $15,894 ($131) Office of Economic Development $760 $737 $760 $0 Office of Financial Services $2,147 $601 $2,137 ($10) Park and Recreation $72,747 $30,197 $72,598 ($149) Police $401,237 $158,975 $401,232 ($5) Public Works and Transportation $5,659 $4,047 $5,365 ($294) Sanitation Services $73,596 $24,195 $73,337 ($259) Street Lighting $19,058 $6,455 $19,058 $0 Street Services $57,262 $20,438 $57,248 ($14) Sustainable Dev/Construction $1,328 $850 $1,254 ($74) Trinity Watershed Management $244 $330 $238 ($6) OTHER Fuel and Fleet Cost (to be allocated) $0 $0 $1,300 $1,300 RESERVES AND TRANSFERS Contingency Reserve $200 $0 $200 $0 Liability Reserve/Claim Fund $1,779 $0 $1,779 $0 Salary and Benefit Reserve $3,748 $0 $3,748 $0 TOTAL EXPENDITURES $1,041,303 $416,053 $1,040,821 ($482) 4

77 PROPRIETARY FUNDS FORECAST OF FY REVENUES AND EXPENDITURES AS OF FEBRUARY 28, 2013 (000s) REVENUES AND BUDGET VS EXPENDITURES YEAR-END FORECAST DEPARTMENT BUDGET YEAR TO DATE FORECAST VARIANCE Aviation Revenues $49,074 $19,379 $48,854 ($220) Expenses $49,074 $10,589 $48,592 ($482) Net Excess of Revenues Over Expenses/Transfer $0 $8,789 $262 $262 Convention Center Revenues $59,332 $23,867 $64,307 $4,975 Expenses $59,332 $21,327 $64,307 $4,975 Net Excess of Revenues Over Expenses/Transfer $0 $2,540 $0 $0 Sustainable Dev. Services Revenues $23,243 $10,202 $24,086 $843 Expenses $23,171 $6,394 $22,378 ($792) Net Excess of Revenues Over Expenses/Transfer $72 $3,808 $1,708 $1,636 Municipal Radio Fund Revenues $2,625 $876 $2,073 ($552) Expenses $2,599 $763 $2,073 ($527) Net Excess of Revenues Over Expenses/Transfer $26 $113 $0 ($25) Water Utilities Revenues $563,964 $219,044 $566,941 $2,977 Expenses $563,964 $177,000 $562,264 ($1,700) Net Excess of Revenues Over Expenses/Transfer $0 $42,044 $4,677 $4,677 Communication & Information Svcs. Revenues $46,172 $17,435 $46,176 $4 Expenses $54,643 $25,515 $54,436 ($208) Net Excess of Revenues Over Expenses/Transfer ($8,471) ($8,080) ($8,260) $211 5

78 PROPRIETARY FUNDS FORECAST OF FY REVENUES AND EXPENDITURES AS OF FEBRUARY 28, 2013 (000s) REVENUES AND BUDGET VS EXPENDITURES YEAR-END FORECAST DEPARTMENT BUDGET YEAR TO DATE FORECAST VARIANCE Equipment Services Revenues $49,529 $15,877 $52,414 $2,885 Expenses $49,443 $18,757 $52,414 $2,971 Net Excess of Revenues Over Expenses/Transfer $86 ($2,880) $0 ($86) Express Business Revenues $4,119 $1,212 $3,993 ($126) Expenses $3,813 $990 $3,813 $0 Net Excess of Revenues Over Expenses/Transfer $307 $222 $180 ($126) 6

79 OTHER FUNDS FORECAST OF FY REVENUES AND EXPENDITURES AS OF FEBRUARY 28, 2013 (000s) REVENUES AND BUDGET VS EXPENDITURES YEAR-END FORECAST DEPARTMENT BUDGET YEAR TO DATE FORECAST VARIANCE Employee Benefits $1,015 $179 $1,015 $0 Risk Management $1,810 $727 $1,810 $ System Operations Revenues $13,170 $5,880 $13,841 $670 Expenses $18,230 $2,262 $18,225 ($5) Net Excess of Revenues Over Expenses/Transfer ($5,060) $3,617 ($4,385) $675 Storm Water Drainage Revenues $49,746 $21,420 $49,746 $0 Expenses $53,846 $10,204 $53,588 ($259) Net Excess of Revenues Over Expenses/Transfer ($4,100) $11,216 ($3,841) $259 7

80 DEBT SERVICE FUND FORECAST OF FY REVENUES AND EXPENDITURES AS OF FEBRUARY 28, 2013 (000s) EXPENDITURES BUDGET VS AND REVENUES YEAR-END FORECAST DEBT SERVICE BUDGET YEAR TO DATE FORECAST VARIANCE Beginning Balance $5,233 $0 $6,362 $1,129 Revenues $233,008 $204,248 $233,375 $368 Expenses $233,285 $174,610 $233,285 $0 Ending Balance $4,955 $29,638 $6,452 $1,497 8

81 CONTINGENCY RESERVE STATUS Beginning Balance October 1, 2012 $5,100,000 Budgeted Transfer In $200,000 Balance as of February 28, 2013 $5,300,000 LIABILITY/CLAIMS FUND Beginning Balance October 1, 2012 $4,295,717 Budgeted Revenue $3,553,463 FY Availalble Funds $7,849,180 Paid October 2012 ($928,543) Paid November 2012 ($711,014) Paid December 2012 ($483,467) Paid January 2013 ($324,095) Paid February 2013 ($386,353) Balance as of February 28, 2013 $5,015,

82 SALES TAX as of January 2013 YTD VARIANCE FY YTD VARIANCE FY ACTUAL BUDGET ACTUAL ACT. VS. FY ACT. ACTUAL VS. BUDGET FY FY FY DOLLARS PERCENT DOLLARS PERCENT OCT $15,401,765 $17,542,004 $18,909,571 $3,507, % $1,367, % NOV 16,931,117 17,495,657 16,954,555 23, % (541,102) -3.1% DEC 24,429,551 26,220,175 25,113, , % (1,106,644) -4.2% JAN 16,540,783 16,954,266 18,640,007 2,099, % 1,685, % FEB 16,195,414 16,418,404 MAR 22,362,792 24,175,756 APR 17,489,176 16,567,636 MAY 17,840,445 17,165,800 JUN 22,383,001 22,804,133 JUL 20,223,678 17,025,086 AUG 18,639,347 17,268,947 SEP 21,140,086 21,825,304 TOTAL $229,577,155 $231,463,168 $79,617,664 $6,314, % $1,405, % $30 MONTHLY SALES TAX REVENUES FY vs. FY COMPARISON $25 $20 REVENUE RECEIVED $ Millions $15 $10 $5 $0 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP FY ACTUAL FY BUDGET FY12-13 ACTUAL 10

83 GENERAL FUND HISTORICAL REVENUE COMPARISON AS OF FEBRUARY (000s) YEAR TO DATE FY FY FY YEAR-END ACTUAL YEAR TO DATE YEAR-END ACTUAL YEAR TO DATE YEAR-END FORECAST TAXES Ad Valorem Tax $419,551 $440,922 $422,083 $439,212 $437,125 $453,306 Sales Tax $53,782 $215,893 $89,499 $229,577 $79,618 $232,869 TOTAL TAXES $473,332 $656,815 $511,582 $668,789 $516,743 $686,175 FRANCHISE REVENUES Oncor Electric $26,417 $50,798 $28,715 $52,466 $27,368 $49,517 AT&T $4,588 $17,777 $4,209 $16,392 $3,913 $14,923 Atmos Energy $3,053 $12,120 $3,068 $10,444 $2,569 $10,293 Time Warner Cable $2,518 $6,059 $1,587 $6,440 $1,580 $6,200 Other $4,139 $16,634 $4,361 $18,345 $4,720 $18,496 TOTAL FRANCHISE REVENUES $40,715 $103,387 $41,941 $104,087 $40,150 $99,429 LICENSES AND PERMITS $4,081 $9,292 $4,576 $9,771 $4,624 $9,596 INTEREST EARNED $156 $1,153 $416 $1,127 $221 $755 INTERGOVERNMENTAL $262 $5,494 $429 $6,427 $0 $5,589 FINES AND FORFEITURES Municipal Court $5,962 $15,640 $5,730 $15,241 $5,315 $14,383 Vehicle Towing & Storage $3,063 $7,384 $3,052 $6,938 $2,782 $6,894 Parking Fines $1,320 $5,569 $1,920 $5,047 $957 $5,070 Red Light Camera Fines $0 $6,868 $0 $7,322 $0 $6,867 Public Library $215 $549 $217 $533 $211 $553 TOTAL FINES $10,561 $36,010 $10,919 $35,081 $9,265 $33,768 CHARGES FOR SERVICE Sanitation Service $24,843 $59,869 $25,041 $60,538 $26,122 $60,542 Parks $2,964 $8,349 $2,960 $8,766 $3,657 $8,922 Private Disposal Fees $6,046 $17,725 $7,409 $19,663 $7,057 $18,881 Emergency Ambulance $3,656 $13,793 $6,793 $16,684 $4,352 $20,138 Security Alarm $1,546 $4,175 $1,736 $4,593 $1,871 $4,300 Street Lighting $253 $1,539 $160 $965 $130 $1,186 Vital Statistics $600 $1,617 $592 $1,563 $596 $1,581 Other $9,303 $16,580 $10,456 $17,376 $10,001 $18,047 TOTAL CHARGES $49,211 $123,647 $55,148 $130,148 $53,785 $133,597 INTERFUND REVENUE $12,061 $44,948 $13,866 $45,572 $7,687 $60,410 MISCELLANEOUS $5,899 $19,477 $4,380 $12,769 $4,908 $11,586 TOTAL REVENUE 122,946 $343,409 $131,675 $344,981 $120,639 $354,729 TOTAL REVENUES $596,278 $1,000,224 $643,257 $1,013,770 $637,382 $1,040,903 11

84 GENERAL FUND HISTORICAL EXPENDITURE COMPARISON AS OF FEBRUARY (000s) FY FY FY YEAR-END YEAR-END YEAR-END DEPARTMENT YEAR TO DATE ACTUAL YEAR TO DATE ACTUAL YEAR TO DATE FORECAST Building Services $9,212 $20,806 $9,185 $18,083 $9,316 $22,102 Business Dev/Procurement Svcs $1,237 $2,035 $885 $2,086 $901 $2,410 City Attorney's Office $3,888 $9,684 $4,093 $10,741 $4,848 $12,663 City Auditor's Office $771 $2,077 $804 $2,030 $778 $2,111 City Controller's Office $1,397 $3,245 $1,523 $3,485 $1,533 $3,934 City Manager's Office $777 $1,567 $826 $1,628 $793 $1,509 City Secretary's Office $606 $1,624 $558 $1,500 $689 $1,738 Civil Service $414 $1,070 $526 $1,374 $641 $1,798 Code Compliance $10,213 $26,325 $10,302 $27,795 $11,350 $30,446 Court Services $3,857 $10,175 $3,853 $10,666 $3,873 $11,219 Elections $970 $2,786 $48 $1,133 $18 $1,118 Fire $82,810 $197,774 $87,365 $206,691 $89,452 $203,307 Housing $5,009 $7,489 $5,239 $8,076 $5,829 $9,114 Human Resources $1,521 $2,935 $1,576 $3,151 $1,766 $3,797 Independent Audit $0 $1,072 $0 $937 $0 $803 Jail Contract - Lew Sterrett $8,116 $8,116 $7,852 $7,852 $7,543 $8,229 Judiciary $1,377 $2,755 $1,304 $3,006 $1,289 $3,284 Library $8,222 $19,485 $8,127 $18,111 $7,818 $20,295 Management Services $1,572 $2,539 $2,138 $3,339 $2,374 $4,426 Mayor and Council $1,315 $3,434 $1,293 $3,527 $1,410 $3,864 Non-Departmental $7,848 $33,763 $8,105 $28,592 $8,271 $36,507 Office of Cultural Affairs $5,183 $12,581 $6,151 $13,083 $8,738 $15,894 Office of Economic Development $495 $555 $685 $647 $737 $760 Office of Financial Services $518 $1,395 $499 $1,521 $601 $2,137 Park and Recreation $27,378 $63,993 $28,383 $66,281 $30,197 $72,598 Police $154,147 $399,297 $158,774 $398,795 $158,975 $401,232 Public Works $8,480 $12,016 $3,534 $4,775 $4,047 $5,365 Sanitation Services $28,782 $70,907 $27,255 $73,537 $24,195 $73,337 Street Lighting $17,246 $17,228 $6,650 $16,979 $6,455 $19,058 Street Services $15,968 $48,862 $18,904 $53,629 $20,438 $57,248 Sustainable Dev/Construction $798 $571 $883 $1,004 $850 $1,254 Trinity Watershed Management $0 $357 $223 $265 $330 $238 OTHER Fuel and Fleet Cost (to be allocated) $0 $0 $0 $0 $0 $1,300 RESERVES AND TRANSFERS Contingency Reserve $0 $3,646 $0 $1,663 $0 $200 Liability Reserve/Claim Fund $0 $6,569 $0 $5,288 $0 $1,779 Salary and Benefit Reserve $0 $0 $0 $0 $0 $3,748 EXPENDITURES $410,127 $998,732 $407,543 $1,001,271 $416,053 $1,040,821 12