TOWN OF LITTLE ELM, TXANNUAL BUDGET AND FINANCIAL PLAN

FISCAL YEARS 2021-2025

Town of Little Elm

Fiscal Year 2020-2021

Budget Cover Page

This budget will raise more revenue from property taxes

than last year's budget by an amount of $245,051 which is

a 0.91 percent increase from last year's budget. The

property tax revenue to be raised from new property added

to the tax roll this year is $1,699,213.

CITY COUNCIL RECORDED VOTE Member Budget Adoption Tax Rate Adoption

Mayor Hillock Yea Yea Mayor Pro Tem Blais Yea Yea Council Member Singh Yea Yea Council Member Norman Yea Yea Council Member Musteen Yea Yea Council Member Cornelious Absent Yea Council Member McClellan Yea Yea

TAX RATE

ADOPTED FISCAL YEAR 2019 – 2020

PROPOSED FISCAL YEAR 2020 – 2021

ADOPTED FISCAL YEAR 2020 – 2021

Property Tax Rate $ 0.649900 $ 0.649900 $ 0.649702 No-New-Revenue Rate $ 0.630515 $ 0.670588 $ 0.657639 No-New-Revenue M&O Rate $ 0.459830 $ 0.530238 $ 0.520000 Voter Approval Tax Rate $ 0.650647 $ 0.649900 $ 0.649702 Debt Rate $ 0.154026 $ 0.119662 $ 0.129702

The total amount of municipal debt obligation secured by property taxes for the Town of Little Elm is $57,645,000.

The above information is presented on the cover page of the City’s Fiscal Year 2021 Annual Budget to comply with Section 102.005 of the Texas Local Government Code.

In accordance with Section 140.0045 of the Texas Local Government Code expense line items for public notices and lobbying efforts are provided below:

Description Adopted FY 2019 – 2020 Proposed FY 2020 – 2021

Public notices required by law $ 23,900 $ 25,625 Lobbying Services $ 5,600 $ 5,700

ADOPTED BUDGET

TOWN OF LITTLE ELM

TABLE OF CONTENTS PAGE NO.

OVERVIEW Mayor and Town Council…………………………………………………………………………………………………………..1 Principal Officers………………………………………………………………………………………………..........................2 Organizational Chart………………………………………………………………………………………………………………….3 Budget Message…………………………………………………………………………………..………..............................5 FUND SUMMARIES Consolidated Budget Funds Summary………………………………………………………………………………………34 General Fund……………………………………………………………………………………………………………………………37 General Fund Revenue……………………………………………………………………………………..........................40 Parks and Recreation Fund……………………………………………………………………………………………………….43 Paloma Creek Police Equipment Fund………………………………………………………………………………………45 Debt Service Fund…………………………………………………………………………………………………………………….47 Special Revenue Fund………………………………………………………………………………………………………………49 Street Maintenance Fund…………………………………………………………………………………………………………51 Landscape Fund……………………………………………………………………………………………………………………….53 PEG Fund………………………………………………………………………………………………………………………………….55 Traffic Safety Fund……………………………………………………………………………………………………………………57 Donation Fund………………………………………………………………………………………………………………………….59 Forfeiture Fund………………………………………………………………………………………………………………………..61 Drainage Utility Fund………………………………………………………………………………………………………………..63 TIRZ Number Three Fund………………………………………………………………………………………………………….65 Governmental Impact Fees………………………………………………………………………………………………………67 Governmental Capital Improvement Project Fund…………………………………….………..……………………71 Utility Fund………………………………………………………………………………………………………………………………73 Solid Waste Fund……………………………………………………………………………………………………………………..77 Water and Wastewater Impact Fee Funds………………………………………………………………………………..79 Water/Wastewater Capital Improvement Project Fund……………………………………………………………83 Vehicle Equipment Replacement Fund……………………………………………………………………………………..85 Fire Equipment Replacement Fund…………………………………………………………………………………………..87 Community Development Corporation…………………………………………………………………………………….89 Debt Service Obligation Summary…………………………………………………………………………………………….91 APPENDICES Budget Planning Calendar…………………………………………………………………………………………………………94 Budget Process…………………………………………………………………………………………………………………………95 Town-wide Approved Supplements………………………………………………………………..………………………..99 Capital Improvement Project Planning List……………………………………………………………………..………105 Ordinance No. 1573 – Budget Adoption………………………………………………………………………………….107 Ordinance No. 1572 – Tax Rate Adoption……………………………………………………………………...……….109

Adopt ed Budget

Town Of Lit t l e Elm

Town of Little Elm MAYOR AND TOWN COUNCIL

Mayor David Hillock Tony Singh District 2

Nick Musteen District 5

Michael McClellan At Large, Place 6

Curtis Cornelious At Large, Place 1

Lisa Norman District 4

Neil Blais Mayor Pro Tem

District 3

1

ADOPTED BUDGET

TOWN OF LITTLE ELM, TEXAS

Principal Officers Fiscal Year 2020 – 2021

CITY MANAGER

Matt Mueller

DEPUTY TOWN MANAGER

Doug Peach

ASSISTANT TOWN MANAGER / DIR. OF PUBLIC SAFETY

Joe Florentino

CHIEF FINANCIAL OFFICER

Kelly Wilson

TOWN SECRETARY

Kathy Phillips

TOWN OF LITTLE ELM

2

Town of Little Elm Citizens

Mayor and Council

Town Manager

Deputy Town Manager

Development ServicesEngineering

Community IntegrityPlanning/GIS

Building Inspection

Public WorksFleet Services

Water & WastewaterStormwaterSolid Waste

Streets

Parks and RecreationLibraryParks

Senior CenterRecreationMarketingFacilities

Animal Services

Assistant Town Manager/Director of

Public Safety

Police DepartmentPatrolTraffic

CID

Fire DepartmentFire & Emergency Medical Services

Information Technology

IS Management

Emergency Management Services

FinanceUtility Customer

ServicePurchasing

Municipal Court

Budget

Accounting

Human ResourcesPersonnel AdminRisk Management

Town Attorney

Boards and Commissions

Municipal Court Judge and Prosecutor

Economic Development

Corporation (EDC)

Community Development

Corporation (CDC)

Town Secretary

TOWN OF LITTLE ELM, TEXAS

Assistant to the Town Manager

3

ADOPTED BUDGET

TOWN OF LITTLE ELM

PAGE INTENTIONALLY LEFT BLANK

4

ADOPTED BUDGET

TOWN OF LITTLE ELM

BUDGET MESSAGE Fiscal Year 2020 – 2021 Budget

Message from the Town Manager, Matt Mueller

5

ADOPTED BUDGET

TOWN OF LITTLE ELM

Introduction A municipal budget is more than a book of numbers. A budget is a tool for prioritizing, communicating, and allocating resources that go toward the implementation of programs, projects, and services that fit the needs of a community’s residents and businesses. It is the duty of those who are fortunate enough to serve the residents of Little Elm to operate in a transparent, efficient, and ethical manner, and a budget is also a tool that allows us to do just that. Budget Philosophy

Little Elm is still a rapidly growing community, and with that comes a tremendous number of challenges and outstanding opportunities. With this growth, there are new sources and higher amounts of revenue to be allocated in the budget. Still, there is also a mounting list of needs for programs and services to accommodate growth and meet the community's expectations.

Town staff develops the operating and capital budgets so that strategic goals and long-term objectives defined in the Town Council's adopted Strategic Plan are achieved. This Strategic Plan, which was approved in 2013 and updated in 2015, 2017, and 2019, sets the vision and charts the course for the community. It is staff's job to move in that direction through budgeting and project implementation.

The internal value system at the Town of Little Elm stems from the philosophy of Servant Leadership and the belief that as public employees, all actions stem from the obligation to put the needs of the resident first and dedicate our decision making and actions to the idea that Town employees exist to serve others. This is further emphasized in our organization's Core Values of Efficiency, Innovation, Customer Service, and Integrity. These values are the foundation of the organization and are the bedrock on which the departmental budgets are built.

The overall budget philosophy of the Town of Little Elm is to provide the highest level of service at the greatest value. This means that the Town must operate in the most effective and efficient method possible to accomplish this goal. The internal budgeting and review process is very stringent with department heads dissecting each other's budgets in a peer review process that seeks to ensure that every line item is carefully planned and all projects are justified.

As part of the Town's budgeting philosophy and commitment to respect the Taxpayer's money, priorities in the budget process are to maintain a competitive tax rate, realize the long-term impacts of financial decisions, and keep fund balances and reserves at a healthy level.

Multi-Year Approach

Beginning with the 2016-2017 budget, our goal has been to successfully present a five-year balanced budget (technically a one-year budget and a four-year financial plan) to the Council for consideration. The purpose of the approach is to ensure that we are providing sustainable services

6

ADOPTED BUDGET

TOWN OF LITTLE ELM

in Little Elm’s high growth environment. This is particularly important as we continue expanding services in the northern part of the community and extend contractual services to various partners in our region.

Growing municipal services to provide for the needs of our new residents in the northern part of the community has been a big part of our planning operational growth over the past few years this will continue as we now anticipate this growth to not only continue in the northeast part of the community but also to increase in the northwest part of the community. The five-year budget looks at the cost of those services and the revenues coming due to the growth. A multi-year plan is very helpful since the expenses for these services are in the very near future, yet the revenues will be delayed as the area grows, and new taxable values are added to the tax rolls. The multi-year plan is reviewed and revised annually as needed. As we expected, all of the growth and constant change in the area conditions have changed certain needs and assumptions in the planning years, and those were addressed in the new budget. The greatest value in the financial plan is that this multi-year approach lets us see how today spending decisions will impacts the budget in the future and ensure that we can sustain our services. This has proven exceptionally helpful over the past year since we have seen such uncertainty due to the COVID-19-19 pandemic. The five-year budget is one of the big tools that has allowed the Town of Little Elm to address these challenges without dramatic service cuts or changes in community vision.

Town Wide Budget Overview

The total Fiscal Year (FY) 2020-2021 budget, including all funds and transfers, is $96,598,898 compared to $99,197,631 initially budgeted in FY 2019-2020. The budget for all funds will decrease by 2,598,733, or 2.62% over the FY 2019-2020 initial budget. From an operational perspective, the budget will increase by $5,517,247 or 9.94% over FY 2019-2020. FY 2020-2021, total revenue exceed the total expenditure within the town-wide budget by $6,961,616. This is primarily due to debt proceeds. The Capital Project funds located within the General Governmental and Enterprise Utility classifications have budgeted expenditures of $12,433,149, and $6,021,186 is the available beginning fund balance being spent on projects in addition to revenue in FY 2020-2021 of $25,910,879. The following matrix reflects changes in sources and uses of all funds by category (town-wide):

Expenditures Uses of Funds

Amended FY 2019-2020

Proposed FY 2020-2021 % of Total

Change Year Over Year % Change

Operations 55,480,177$ 60,997,424$ 63.15% 5,517,247$ 9.94%Debt 11,745,966 10,076,052 10.43% (1,669,915) -14.22%Capital Equipment 3,579,676 2,350,647 2.43% (1,229,029) -34.33%Capital Projects 19,600,363 12,433,149 12.87% (7,167,214) -36.57%Transfers Out 8,791,449 10,741,626 11.12% 1,950,177 22.18%Total Uses 99,197,631$ 96,598,898$ 100.00% (2,598,733)$ -2.62%

7

ADOPTED BUDGET

TOWN OF LITTLE ELM

During the five year budget period, the town-wide budget (excluding major capital equipment and projects) is expected to grow as represented by the chart below.

Revenue

The Town of Little Elm’s primary source of revenue is property tax. This year, $26,000,524 has been budgeted for all property tax collections, including delinquents, penalties, and payments to the tax increment financing zones and municipal management district. Property tax revenue, including the items above, is expected to grow $657,518 or 2.59% over last year. This is the first year that the new property tax revenue growth cap imposed by SB 2 passed during the 2019 Legislative Session is in effect. Although the declared state of emergency negates this cap, this budget has been prepared by staying under the new revenue growth limit imposed through SB 2 of 3.5%. The Town had some challenges in adopting the property tax rate as planned due to the appraisal district unable to certify properties by July 25 based on the number of protests.. The appraisal district is unable to certify totals until less than 5% is uncontested. At the time of this budget message, the Town is 73.80% certified; therefore, this reflects lower taxable values. The Town was able to get certified totals September 18 and recalculated the property tax rate based on the new data. Council formally adopted the property tax rate September 29 with no changes in the revenue reflected from the ad valorem taxes.

Sales tax has been a concern for most municipalities during the pandemic, as sales tax is generally a source of revenue that is highly volatile and dependent on economic conditions. So far, the Town of Little Elm has not seen a reduction in sales tax collections that has negatively impacted operations. Due to the highly residential nature of the community, many of the Town’s top sales tax producers are either online or provide essential goods that have not seen a decline during the pandemic. Tax collections in the FY 2019-2020 have exceeded expectations, and marginal growth

$84,074,859

$82,210,013

$77,982,055

$77,033,527

$81,815,102

$72,000,000 $76,000,000 $80,000,000 $84,000,000

Planning Year FY 2024-2025

Planning Year FY 2023-2024

Planning Year FY 2022-2023

Planning Year FY 2021-2022

Proposed FY 2020-2021

8

ADOPTED BUDGET

TOWN OF LITTLE ELM

is anticipated in the FY 2020-2021 budget. The total amount of sales tax ($.015) budgeted for FY 2020-2021 is $6,997,666, which is a $1,040,470 or 17.47% increase over what was budgeted last year. The sales tax revenue reported includes revenue receipts, contractual payments attributable to 380 economic development, and performance agreements where the sales tax has been previously pledged.

Other major sources of revenue come from rates, fees, and charges. These sources are for services rendered and user fees charged, such as ambulance, alarm monitoring, municipal court, recreational use fees, and utility-related services. This category is estimated for FY 2020-2021 at $24,636,692 and represents approximately 24% of the Town’s funding of operations. The increase in rates, fees, and charges over FY 2019-2020 is $1,571,282 or about 6.81%. The increase is attributed to the Town’s Parks and Recreations aquatic center and rate increase established this year for Solid Waste services. For FY 2020-2021, a total of $19,162,522 has been budgeted for utility sales and other charges for services. Of this amount, $10,353,000 comes from water sales, $7,022,022 comes from sewer, and $1,587,000 comes from other charges, fees, and wholesale contracts.

Transfers between budgets are part of the total sources of funds and are $10,741,626. This number reflects one time transfers for infrastructure improvements and reimbursement of in-kind services across funds. The licenses, permits, and fees revenue of $6,418,734 includes projected revenues of $2,450,000 in building permits and solid waste service fees of $2,842,658. The remaining revenue is attributable to other types of permitting and registrations required by development services.

Total revenue from all sources is broken down in the following table:

9

ADOPTED BUDGET

TOWN OF LITTLE ELM

The five-year revenue total revenue projections (excluding funding for major capital projects) for the Town of Little Elm are as follows:

Property Values and Tax According to the Denton County Central Appraisal District (DCAD), the certified taxable values after the homesteads with a tax ceiling is estimated with an appraisal review board total of $4.196 billion. This value is 2.77% or $113 million more in assessed valuation than the 2019 tax year adjusted taxable value of $4.083 billion.

The roll does reflect approximately $262 million attributable to new taxable values added to the tax roll, which includes improvements and personal property. This becomes very important because when calculating the no-new-revenue rate and the voter-approval tax rate, new taxable values are deducted from the calculation. The following graph reflects historical growth in taxable property values, including the current year (2020) certified estimate:

10

ADOPTED BUDGET

TOWN OF LITTLE ELM

Adopted Tax Rate For the last several years, it has been the goal to keep the tax rate at a competitive level with other cities and towns while still providing adequate revenue to fund the needs of a rapidly growing community now and into the future. This year, the Town was able to adopt a tax rate of $.649702 and still meet those objectives. The Town was able to maintain the voter-approval tax rate, prepare for its future obligations, and adhere to the Town’s long and short-term operational plan. The proposed tax rate still provides an anticipated revenue in the tax levy for operations and debt service commitments. Of the total tax rate of $0.649702, $0.520000 or 80% is dedicated to general operations and maintenance (O&M) in the General Fund, and $0.129702 or 20% is dedicated to general obligation debt service.

$1.50 $1.57 $1.62$1.78

$2.07

$2.42$2.70

$3.20

$3.66

$4.08 $4.20

$155,372 $159,387 $157,677 $167,857

$185,700

$205,132

$228,631

$254,244

$277,529 $290,494 $293,403

100,000

150,000

200,000

250,000

300,000

350,000

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

In M

illio

nsSource: Denton CAD Certified Totals 2010-2020

Net Assessed Taxable Valuation

Average Homestead Taxable Value

11

ADOPTED BUDGET

TOWN OF LITTLE ELM

The average taxable single-family home value is currently $293,403 compared to $290,494 last year. At the property tax rate of $0.649702, the Town tax paid on the average single-family home will be $1,906. For comparison purposes, a single-family home valued at $100,000 will pay $649.70. The tax bills for senior citizens 65 years and older are frozen in the year that they are eligible for the senior citizen tax bill freeze. The following table is a history of the Town’s property tax levy and collections:

*Total Tax levy is updated annually.

Operating Expenditures

The operating budget is a combination of all costs to do business except for major capital improvement projects (CIP), transfers, and debt service payments. The total of the combined operating budgets for the FY 2020-2021 budget is $62,250,837, compared with $58,189,994 originally budgeted in FY 2019-2020. This is an increase of $4,060,843 or 6.98%.

2016 2017 2018 2019 2020O&M rate 0.495731 0.485188 0.479431 0.496524 0.520000I&S Rate 0.165956 0.172483 0.170469 0.153376 0.129702Total Rate 0.661687 0.657671 0.6499 0.6499 0.649702

00.10.20.30.40.50.60.7

Tax

Rate

TAX RATE HISTORY BY TAX YEAR

Tax YearFiscal Year

Assessed Valuation

Tax RateTotal Tax

Levy*Collected

% Collected

2015 15-16 2,405,877,909 0.661687 15,848,795 15,837,701 99.93%2016 16-17 2,772,644,636 0.661687 18,694,955 18,678,130 99.91%2017 17-18 3,337,320,298 0.65767 21,819,292 21,804,018 99.93%2018 18-19 3,656,504,830 0.649900 24,981,007 24,864,935 100.00%2019 19-20 4,083,213,579 0.649900 26,536,805 26,459,848 99.71%

2020 ARB 20-21 4,195,683,764 0.649702 27,259,465 N/A N/A

TAX LEVY AND COLLECTION HISTORY:

12

ADOPTED BUDGET

TOWN OF LITTLE ELM

Operating costs are broken down in the following chart for the Town’s core operating funds comparing this year to last year:

The following charts reflect the percentage cost of operations by operational function of the Town:

13

ADOPTED BUDGET

TOWN OF LITTLE ELM

The major increase in operations costs over last year’s adopted budget are as follows:

• New Personnel - $296,945 • Compensation and benefit increase - $466,685 (existing personnel) • Public Safety (Police) Market Adjustment - $528,355 • New Aquatic Center Program (including personnel) $1,937,174 • City of Denton Dispatch - $1,221,298 • Dispatch Software - $947,546

One Time Expenses and New Programs

The significant one-time expenses that have been placed in the budget for the current and future years are as follows:

Department Item FY 2020-

2021 FY 2021-

2022 FY 2022-

2023 FY 2023-

2024 FY 2024-

2025

Finance/Court Virtual Court $7,800 $7,800 $7,800 $7,800 $7,800

NCIC/TCIC Implementation $20,000

Development Services

Building Department Accreditation Program

$10,000

West Side Planning Study $50,000

Construction Review $15,000

Outsource Mosquito Testing $30,000 $30,000 $30,000 $30,000 $30,000

US 380 Lighting and Safety Improvements (Impact Fee Funded)

$175,000

Facilities

Brent Siren Relocation and Upgrade

$23,000

Fire Station 3 Permanent Lighting

$4,200

Fire Station 2 Grade Work $25,000

Public Works Lift Truck Replacement F-550 $124,000

14

ADOPTED BUDGET

TOWN OF LITTLE ELM

Department Item FY 2020-

2021 FY 2021-

2022 FY 2022-

2023 FY 2023-

2024 FY 2024-

2025

Public Works and Utilities Continued

WW Collection Generator in Sunset Pointe

$130,000

Cat Backhoe/Loader $106,000

Potential Signal Light Maintenance

$250,000 $250,000 $250,000 $250,000

Contract Sign and Signal Maintenance

$88,044 $88,044 $88,044 $88,044 $88,044

LED Street Light Conversion $40,000 $40,000 $40,000 $40,000 $40,000

Meter Upgrade (only upon Frisco West annexation)

$340,000

Life Station Maintenance $30,000 $27,000

Asset Management Plan $300,000

Upgrade Replacement (Generator and Vacuum Machine)

$122,000 $29,777

Utility Billing (only upon Frisco West annexation)

$80,000 $86,000 $11,000 $11,000 $11,000

Skidsteer for Stormwater $67,901

Wheel Lifts for Trucks $46,290

Tire Machine and Wheel Balancer

$17,047

Impact Fee Study $350,000

West Side Pressure Study $97,500

Wastewater Treatment Plant Step Screen

$496,000

Wastewater Treatment Plant UV Module Replace

$650,000

15

ADOPTED BUDGET

TOWN OF LITTLE ELM

Department Item FY 2020-

2021 FY 2021-

2022 FY 2022-

2023 FY 2023-

2024 FY 2024-

2025

Community Services

Animal Shelter Dog Run $15,000

Animal Truck $48,000

Shade for Outdoor Dog Runs $21,000

Lakeside Field Improvements $80,405 $67,000 $67,000

Help Now Brainfuse Library Tutoring Software (TSLAC Grant Funded)

$4,200

Recreation Center Air Curtain $3,500

Touchless Doors for Recreation Center

$20,000

Buoys for Swim Beach $11,000

Gear Lockers $5,000

Parks Maintenance Academy $5,000 $5,000

Conversion of Rec Center Studio 1 to a Boutique Training Studio

$25,000

Wi-Fi Gym Control System $15,000

Public Safety

Vehicles for New Officers (2) $130,000

Vehicle for New Detective $35,000

Vehicle for New Warrant Officer

$60,585

Vehicle for New Traffic Officer $60,585

Police Tahoes (3) – rollover from FY 2019-2020

$216,787

Outfitting of Offices at FW Substation

$30,100

16

ADOPTED BUDGET

TOWN OF LITTLE ELM

Department Item FY 2020-

2021 FY 2021-

2022 FY 2022-

2023 FY 2023-

2024 FY 2024-

2025

Public Safety (continued)

Fire Record Management System Software

$18,153 $12,998 $12,998 $12,998 $12,998

Video Laryngoscope $10,950

Public Safety Critical Incident Stress Management Service

$12,810 $12,810 $12,810 $12,810 $12,810

Fire Department Cardio Wellness Equipment

$13,100

Hydraulic Tool Replacement $25,185

VES Training $4,200

Radio Charging Stations $3,150

Information Technology

Increased Bandwidth $16,800 $16,800 $16,800 $16,800 $16,800

Town Building Cameras $15,928

Phone System Upgrade $130,000

New Access Control System $120,000

Recreation Center Switch $6,557

Offsite Data Protection $36,026 $36,026

Dual Factor Authentication $18,000 $18,000 $18,000 $18,000 $18,000

Toughbooks (3) $29,600

17

ADOPTED BUDGET

TOWN OF LITTLE ELM

Additional Project Highlights (Many of these projects cover many years, so they may not be limited to one fiscal year’s budget) Aquatic Center - The Cove™

Construction has begun on the Town of Little Elm's aquatic facility. This 42,000 square foot facility will be a vibrant draw to the Lakefront District and an exciting amenity for the Little Elm community. The project will cost approximately $23 million, and funding comes from the 2018 and 2019 certificates of obligation. The project is under construction expected to be completed in early 2021. In addition to the contract amount for this project, we have set aside an additional $125,000 out of the CDC budget for the large video screen, which will be a focal point.

New Dispatch Partnership

One of the Town Council's long-term objectives is to find a long-term solution to dispatch. The Town has traditionally contracted with Denton County for dispatch services. Still, the rapid growth in Little Elm has resulted in increased services needs and a strain on Denton County's system. The Town has been looking at different alternatives for several years, and an opportunity to partner with the City of Denton for dispatch services presented itself last year. After weighing the various options, staff feels that this is an efficient solution that will meet our service needs as we continue to grow. The year one cost is budgeted at $2,168,844, and that includes the purchase of software, equipment and operational start-up. The software costs are anticipated to be $96,376 each through the planning horizon, and operational expenses are budgeted at $686,838, $702,070, $724,759, and $733,489 over the remainder of the five-year budget. These costs will be partially offset by the cancellation of our current agreement, which costs approximately $200,000 per year.

King Road Reconstruction

King Road is located in several jurisdictions, including the Town of Little Elm, the City of Frisco, the City of Hackberry, and Denton County. In 2013, the Town of Little Elm entered into an agreement with the City of Frisco to improve King Road from Witt Road west to the Washington Tract. In return, the City of Frisco contributed money to the Old Witt Road improvement project and committed to cause the connecting street from Old Witt Road to Stonebrook Parkway to be built. The portion of King that Little Elm is obligated to improve is supposed to be complete three years from the beginning of development on the tract of land southwest of the Witt and King intersection. Although the development of this tract has begun, the Town is working to coordinate a project with the different jurisdictions involved to improve the rest of King Road rather than just the portion Little Elm is obligated to construct. The time frame and cost will depend on the participation from others and the ultimate scope of the project. Little Elm has money set aside from various impact fee accounts and developer contributions. If a multi-jurisdictional project does not come to fruition, Little Elm will move forward with its obligations.

18

ADOPTED BUDGET

TOWN OF LITTLE ELM

Financial and Billing Software

Portions of this project were initially budgeted in last year’s budget, but it was put on hold due to the pandemic. A new financial software and utility billing package is a huge undertaking, and it has now been with more accurate total costs. The total cost of implementation is budgeted at $495,000. This number includes the software for general financial management, utility billing, and contract services to implement the software. The annual software costs after implementation are approximately $99,000 annually. This will be partially offset by the reduction of $30,000 paid annually for the current software system. This project is being funded out of the General and Utility Funds. Button Street Reconstruction – Button Street is the last remaining street between Eldorado Parkway and Main Street that has not been upgraded from asphalt to concrete. This project will reconstruct Button Street to 31’ wide curb and gutter concrete street with sidewalks. It is in the early phase of construction and has a cost of $1.165 million.

McCord Park Water Reuse Water Line

This project will install approximately 5,600 feet of 8” reuse water lines, extending from the recently-built 100,000-gallon reuse water tank located at the wastewater treatment plant to the intersection of Witt Road and King Road (near the entrance of the Splash Pad). The estimated cost of construction is $675,000. The plans are at roughly 90% completion and should be ready for bid by the end of the year. Additionally, staff is pursuing a grant through the Bureau of Reclamation that would cover up to 50% of the project cost.

Cottonwood Creek Park

The Town Council adopted the master plan for Cottonwood Creek Park in 2019. $4,000,000 in funding, through the anticipated sale of certificates of obligation, has been set aside in the CDC’s budget to begin the first phase of improvements in this master plan. This phase includes concrete trails, day use and signature pavilions, lawn games, a restaurant building with a deck, a playground with a pavilion, restrooms, parking, lighting, and landscaping.

Lakefront Park

One of the key features of the next phase of Lakefront Development is the park and gathering space that will be developed around Little Elm’s historic water tower. $2,000,000 has been set aside for this project, and it is anticipated to come from a combination of TIRZ #3 debt and developer contributions.

19

ADOPTED BUDGET

TOWN OF LITTLE ELM

Lakefront Parking

In partnership with the Little Elm Economic Development Corporation (EDC), the Town will be constructing a significant amount of the public parking infrastructure located in the Lakefront District. The anticipated cost of this project is $3.3 million and will be funded from TIRZ #3 debt.

TxDOT Green Ribbon Program

There will be a TxDOT grant-funded project for $3.3 million will include median enhancements from approximately Eldorado Parkway to the entrance of Frisco Ranch. Town Hall Office Remodel

Last year’s budget included close to $100,000 for a remodel of the Development Services office area. When staff began to research this project and look at the opportunities and future needs at Town Hall, the project was canceled and rolled into the FY 2020-2021 budget with additional funds for a more extensive solution at Town Hall. This project is budgeted at $765,000 from the General Fund. It includes an expansion of the Town Council workroom, access control to staff areas for safety reasons, a reception area to assist customers, and reorganization of the Development Services and Finance areas to accommodate space needs. Event Facility

The Town of Little Elm recently purchased the large house off of Lakefront Dr. This structure is located in a desirable location due to its proximity to The Cove at the Lakefront™ waterpark and the Lakefront entertainment district. It is anticipated that this property will allow for future expansion of The Cove at the Lakefront™, and the structure will be re-purposed for commercial or public use. Since the purchase has just occurred, all budgets and plans for the facility are tentative.

Wayfinding Signage

A wayfinding study was included in last year’s budget that is nearing completion. This project identified opportunities for coordinated signage around the community to help build the Little Elm and Lakefront brands as well as help residents and visitors navigate to the attractions in Little Elm. It is anticipated that many of the recommendations from the study will be implemented in phases, and $315,000 has been set aside in the Landscape Fund in each of the next two years for this implementation.

20

ADOPTED BUDGET

TOWN OF LITTLE ELM

WWTP Lab Expansion

The current laboratory was built during the initial construction of the wastewater treatment plant in the late 1970s. With several plant expansions and multiple regulatory testing parameter changes, the current facility is not adequate. This project will relocate the existing laboratory to a more suitable location on the treatment grounds and provide for all current and future testing needs. The budgeted amount for the design of this project is $225,000 in the Utility Fund.

Public Safety Growth Contingencies

Over the next couple of years, it appears that growth and development will begin to occur in the northwest part of the community. At a certain point of development, we are planning to construct a fourth fire station and police offices to accommodate population increases in that area. We have set aside a total of $4.7 million out of the General Fund in public safety growth contingencies for operations and equipment to begin implementing services when needed.

West Side Emergency Interconnection

This project will provide an emergency interconnection with Mustang Special Utility District to provide emergency water access in the event there are failures in the line that runs under Lewisville Lake. The estimate for design is $33,000 in FY 2020-2021 and estimate for improvements is $390,910 in FY 2021-2022.

Vehicle Equipment Replacement Fund (VERF)

In FY 2013-2014, the Vehicle Equipment Replacement Fund (VERF) was established. Annual payments are made by user departments to the fund on all pieces of equipment and vehicles so that when the item reaches the end of its useful life, the money is there ready to purchase its replacement. The total transfer to this fund in the FY 2020-2021 budget is $1,618,771.

The Town of Little Elm has recently entered into a fleet management contract with Enterprise. Town staff will still perform the maintenance functions of our vehicles and equipment, but we will be utilizing Enterprise to manage the buying and selling of the Towns vehicles and utilize their expertise on vehicle types, specs, and replacement lifecycles. We anticipate that this relationship will yield significant savings over to the VERF in the coming years.

21

ADOPTED BUDGET

TOWN OF LITTLE ELM

Employees

The total number of budgeted employees or FTEs (full-time equivalents) is 353 for a salary with benefits cost of $32.6 million (includes new positions and market adjustment) in FY 2020-2021.

We will be experiencing cost increases in personnel due to new positions, an increasing cost of insurance premiums, TMRS, and pay increases.

In FY 2020-2021, employees will receive a step increase relevant to their position in the pay plan. In addition to the regular step increases 2.5% cost of living adjustments are planned for FY 2021-2022 and FY 2023-2024. Individual positions are periodically reviewed for market adjustments and re-classifications. This year, a study determined that the Police Department had fallen behind the regional market and had also fallen out of internal equity with the Fire Department. In addition to the step increases, many police department positions were brought up to the market point. The new positions proposed within the five-year budget include the following:

FY 2020-2021 Positions

• Patrol Officers (2), Police Department • Community Service Officers from Part-Time to Full Time (2), Police Department • SRO, Police • Maintenance Worker, Parks • Solid Waste Driver, Public Works • Water Quality Technician, Public Works • Operations Supervisor, Aquatic Center • Programming Supervisor, Aquatic Center • Event Programmer, Aquatic Center • Aquatics Programmer, Aquatic Center • Maintenance Technician, Aquatic Center • Head Lifeguard (2), Aquatic Center • Marketing Specialist, Aquatics/Communications • Part Time Employees, Aquatics

22

ADOPTED BUDGET

TOWN OF LITTLE ELM

FY 2021-2022 Positions

• Court Clerk, Municipal Court • Public Safety Analyst, Fire/Police Department

FY 2022-2023 Positions

• Detective, Police Department

FY 2023-2024 Positions

• Traffic Officer, Police Department • Warrant Officer, Police Department

FY 2024-2025 Positions

• None

Insurance

Little Elm is facing the issue that many employers are facing, which is increasing costs to provide insurance. A 10% increase in premiums ($267,534) has been budgeted. As we move into looking at cost reductions, the health insurance coverage will be reviewed annually. TMRS

Texas Municipal Retirement System (“TMRS”), a statewide administered pension plan, is a “cash balance plan” in which members make regular contributions to individual accounts that are matched with employer contributions and supplemented with investment income. TMRS covers 849 cities, and each city can design a benefit plan to meet its needs and cost structure.

The Town provides pension benefits for all of its full-time employees through TMRS. The Town continues to contribute 100% of its annual required contribution (ARC) at an actuarially determined rate and is solid. Both the employees and the Town make contributions monthly. The Town’s TMRS plan is a 2 to 1 matching ratio with a five-year vesting period. Service eligibility for retirement is age 60 with five years of service or any age with 20 years of service. The Town has updated service credits and COLA all annual repeating.

The Town’s FY 2019-2020 contribution rate is 13.59%, with the FY 2020-2021 rate at 13.53%, which is about a 0.44% decrease. The budgetary impact of the TMRS contribution rate and the Town’s estimated wage and compensation budget for FY 2020-2021 will increase by approximately $121,126. The following table reflects the Town’s historical contribution rates:

23

ADOPTED BUDGET

TOWN OF LITTLE ELM

TMRS 2014 2015 2016 2017 2018 2019 2020 2021

Town Contribution Rate 10.84% 12.95% 13.05% 13.61% 13.54% 13.31% 13.59% 13.53%

Employee Contribution Rate 7% 7% 7% 7% 7% 7% 7% 7%

General Fund

The General Fund is the fund that houses the basic services of municipal government. These services include Police, Fire, Streets, Development Services, Parks and Recreation, Governmental Administration, and all internal services. The total amount of expenditures in this fund is proposed for FY 2020-2021 is $42,710,527. Without transfers to the other funds, the amount is $39,919,497. General Fund revenues and budgeted transfers are estimated at $39,048,323 for FY 2020-2021. This is an increase of 5.36% or $1,989,420 over FY 2019-2020. The sales tax maximum rate is 8.25%, with 1% contributed to the Town of Little Elm’s General Fund. The sales tax is projected to generate revenue of approximately $4.484 million or 14% more than last year’s budget in the General Fund. This growth is a result of continued commercial development and population growth in the area.

Revenue from permitting activity continues to provide sustaining support to general-purpose operations. Single Family Residential dwelling permitting activity has been estimated at 1,060 new construction permits in FY 2019-2020. Building permit revenues annually are estimated at $2.6 million for FY 2019-2020 and include all permit fees for residential, commercial, and multi-family.

The Town is forecasting new construction permits for residential at 1,000 units in FY 2020-2021. With residential and commercial permitting the anticipated revenue for building permits will be approximately $2.450 million. As discussed above, property tax represents 52.8% of the total funding sources of the General Fund at $20.6 million and is approximately $1.5 million or 7% more than FY 2019-2020. The growth is from new construction values and appreciation in property values. The transfers into the General

24

ADOPTED BUDGET

TOWN OF LITTLE ELM

Fund represent 5.4% of total sources of funds and include a payment for General and Administrative services from the Utility Fund. General Fund operating expenditures total $39,919,497 before transfers out. With transfers, the total General Fund budget for FY 2020-2021 is $42,710,527. This budget is a 7.6% increase or $3,028,680 more than FY 2019-2020 budget. This budget without transfers is a 9.8% increase or $3,553,531 more than FY 2019-2020. A comparison of the General Fund budgeted expenses for FY 2019-2020, and FY 2020-2021 is illustrated in the table below:

General Fund

FY 2020 FY 2021 Difference Net

Effect Amended Proposed

Operations $36,365,966 $39,919,497 $3,553,531 Increase

Transfers $ 3,315,881 $ 2,791,030 $ (524,851) Decrease Total $39,681,847 $42,710,527 $3,028,680 Increase

Like most municipal organizations, Public Safety makes up the largest cost center of general-purpose operations with a combined budget of $24.3 million or 57% of the total General Fund Budget. These services include police, fire, municipal court, animal services, and ambulance costs. By category, personnel costs represent about 64% or $27.5 million of General Fund operation costs. The total ending fund balance for the General Fund is projected to be $17.3 million for FY 2020-2021. This estimated and projected ending fund balance is approximately 40.53% of operating expenditures. The Town’s fund balance legal reserve requirement by Town Ordinance is 25% and is equal to approximately $10.677 million, leaving a budgeted amount that will be rolled forward for use in future years while the tax base grows in the northern part of the community.

25

ADOPTED BUDGET

TOWN OF LITTLE ELM

The Town of Little Elm utilizes a conservative strategy when projecting revenues and expenditures. Revenue and expenditure patterns are closely monitored so that adjustments can be made readily. Utility Fund The Water and Sewer Fund (“the utility system”) is 100% self-supporting with rates and charges sufficient to cover operating, debt and various scheduled capital outlay purchases and capital infrastructure projects. The Town operates a full-service utility with water production and distribution, sewer collection, treatment, and meter billing and collection. The Water and Sewer Fund operates as a business enterprise and utilizes full accrual accounting. The Water and Sewer Fund segregates and distinguishes water operations and sewer operations and works toward making each operation self-supporting. The FY 2020-2021 budget for Water and Sewer combined operations anticipates a new multi-year rate package to be approved by the Town Council to replace the previous one adopted on May 17, 2016. The rate plan anticipates a rate freeze for the FY 2020-2021 but includes rate adjustments commencing in October 2021, October 2022, October 2023, and October 2024. The proposed rate plan will be sufficient to fund operating, debt, and capital expenditures to be incurred by the Town over the forecasted time frame and maintain a healthy fund balance. With the Water and Sewer Fund is expected to begin FY 2020-2021 with a $14.50 million working capital balance, the Town is maintaining working capital per policy of a minimum of 60 days reserves. The expected ending working capital balance will be in excess of the required reserve at $11.1 million. A healthy fund balance is necessary to help fund future capital projects and one-time maintenance infrastructure costs planned within the five-year balanced budget. The total Utility Fund revenues from rates, fees, and charges are expected to be $18.9 million, and with interest earnings of $200,000, the total revenues of the system are estimated at $19,162,522. It is expected that total revenues will be 1.46% more than the prior-year budget due to a growth in residential, multi-family and commercial connections to the Town’s utility system. The Town does assess and collect water and sewer developer impact fees to help pay the costs of the infrastructure associated with new development for both commercial and residential development. Other fees and charges are related to services performed in the field for new connections as well as penalties and interest on late payments and disconnects. Other financing sources include impact fees and other developer contributions. The Utility System expenses for operations, debt, transfers, infrastructure improvements, and capital items total $19,341,690. The following graph reflects the uses of funds in the Town’s utility system:

26

ADOPTED BUDGET

TOWN OF LITTLE ELM

The budget includes a pass-through increase for water purchased through the North Texas Municipal Water District (NTMWD). The rate for purchased water remains flat based on the information the Town has received from NTMWD for $3.04 per 1,000 gallons. Wholesale water costs for FY 2019-2020 were $4,647,978 while FY 2020-2021 is projected to be $4,717,131 or a 1.50% increase. Solid Waste Fund This fund is a business-type fund and is utilized to account for the Town’s solid waste activities (refuse, hazardous waste, and recycling materials). The Town contracts for solid waste collection with Community Waste Disposal, Inc. (CWD). Due to the closure of the DFW Landfill in Lewisville in late 2019, CWD requested an amendment to the contract to address the disposal cost increase. The amended agreement was approved effective February 1, 2020 and included an extension of the contract to 2025 and an increase in a residential solid waste cost of $1.25 per month per customer. The residential rates are frozen until September 2022 and can only be allowed to increase for disposal costs if approved by the Town annually. Residents currently pay $18.03 for household refuse collection and disposal. The Town’s commercial accounts are billed directly by CWD. The Town operates its courtesy disposal site with franchise and user fees generated through this fund. The solid waste fund accounts for the Town’s semi-annual clean-up events as well as for the cost of disposal of household hazardous waste collection and disposal. The annual contract for

27

ADOPTED BUDGET

TOWN OF LITTLE ELM

waste collection and disposal is estimated at $2.23 million. With this amount, the FY 2020-2021 budget for the Town’s Solid Waste Fund is $2,405,722 before transfers and is supported with franchise fees, billing, and collection fees and sales of service of $2,971,722. SPECIAL REVENUE FUNDS Street Improvement and Maintenance Fund The budgeted amount out of the ¼ cent Street Maintenance Fund for FY2020-2021 is $1,200,000. The Street Maintenance Fund is budgeted toward neighborhood street repairs and construction annually. The Fund is typically spent down each year to complete as many street maintenance projects as possible. Little Elm voters renewed a ¼ cent sales tax in May 2017 to construct and maintain the Town's streets. The Town issues an annual competitive bid for street maintenance and awards the bid for street repairs based on a comprehensive street maintenance inventory grid maintained by the Town's Engineer. The first election was in 2005. Street Maintenance Project Inventory is updated annually by Public Works and the Town Engineer; projects are prioritized and placed out to bid. The bids are value-engineered and tailored to the Street Maintenance Sales Tax Budget. Parks and Recreation Fund Several years ago, the decision was made to separate the revenue-generating functions of the Parks and Recreation Department into a special revenue fund. This allows staff to take more of a business philosophy towards functions such as the Recreation Center, Special Events, and Athletic Programming. This philosophy has been paying off as we see a considerable increase in membership in the Recreation Center, a much higher level of cost recovery in special events, athletics, athletics and aquatics, and a drastic reduction in the general fund subsidy to the Parks and Recreation Fund. Although the Little Elm Recreation Center has seen continued growth, the COVID-19-19 Pandemic has had a significant impact on operations and membership, and staff will pay careful attention to how that may affect operations in the coming fiscal year. It is anticipated that the recreation center will end FY 2020-2021, with 90% of its costs recovered, and it is the goal next year to cost recover fully. This fund will see a significant change in revenues and expenses due to the opening of Little Elm's new aquatic park, The Cove at the Lakefront™. This new facility is scheduled to open in early 2021 and will have a significant economic impact on the Town. We are continuing to place a great emphasis on special events; however, we are cautious about this programming due to the uncertainty of COVID-19-19 and how long it will affect public gatherings. The planned events include Autumn Fest, Pumpkin Hollow/Haunted Trail, Christmas, Mardi Gras, Brew & Que, and July Jubilee. Although there is a strong chance that many of these

28

ADOPTED BUDGET

TOWN OF LITTLE ELM

events will be altered, we will continue to find innovative ways to bring event programming to the public. The General Fund will subsidize this fund with a $542,000 transfer in FY 2020-2021. This transfer is needed due to a large increase of funds needed to maintain the fund’s 25% reserve requirement due to the budgetary impact of The Cove at the Lakefront™ to the fund. Once this reserve is established, it is anticipated that this fund will move toward the goal of self-reliance, and annual transfers from the General Fund will go away. Landscape Fund The funding for this fund comes predominantly from leases the Town has on its tower facilities and funds that are escrowed by developers for landscape and sidewalks. The revenue from the leases total approximately $145,000, and there is a small amount of $1,000 for tree mitigation. In addition to tower lease proceeds, the fund is supported with a transfer from the Solid Waste Fund for $391,000 and $50,000 from the Community Development Corporation (CDC). This fund will also receive annual payments from various Homeowner Associations (HOAs) as they fulfill contractual agreements to payback their matching portion of the now-expired Neighborhood Integrity Grant program. The Landscape Fund also includes the Town’s right-of-way mowing contract with a budgeted allocation of $434,000. Other budgeted expenses include $2,100 in communication costs, wayfinding project phased over the next two years at $365,000 each year, and maintaining fence quality at the Lakefront parking area of $95,000. The Landscape Fund will begin the year with a balance of $374,016, and is estimated to end the fiscal year with a balance of $159,621.

Drainage Fund

On November 1, 2011, the Town Council adopted Ordinance #1087, implementing the stormwater management program. Beginning in January 2012, Little Elm utility customers were assessed a drainage fee as established and determined by Town staff and a consulting team. The purpose of the fee is to provide more effective stormwater management throughout Little Elm. It will also help protect Lake Lewisville, the community, private property, and the environment from stormwater problems such as pollution, damage to aquatic habitat, creek erosion, and flooding. The stormwater system is a network of structures, channels, and underground pipes that carry stormwater (rainwater) to ponds, lakes, streams, and rivers. The network consists of both public and private systems. It is an integral part of the stormwater management system in the Town that is designed to control the quantity, quality, timing, and distribution of storm runoff. It is not part of the wastewater (sanitary) sewer system, which carries water and waste from drains (sinks,

29

ADOPTED BUDGET

TOWN OF LITTLE ELM

bathtubs, showers, etc.) and toilets to a treatment plant to be treated and filtered. Stormwater does not flow to a treatment plant. The Town’s drainage fee is based on a drainage master plan as approved by the Town Council and is calculated on impervious service areas. There is a standard square footage assessment for each residential property with commercial properties based on square footage plus concrete parking. Residents pay a base fee of $3.35, and commercial accounts pay a calculated rate on their impervious area per their equivalent residential units of $3.35. The total budget for the Storm Drainage Fund for FY 2020-2021 is $1,111,656 and funds vehicles, equipment, and personnel to oversee drainage work. There is also funding of various drainage projects to improve the creeks and channels within the Town including:

• McCord Park Drainage Project Phase III, FY21 - $374,000 • Beach Drainage Project, FY21 - $170,000 • Sunrise Bay Drainage Project, FY21 - $85,000 • Wynfield Farms Outfalls, FY24 - $60,000 • Shell Beach Drainage Project, FY24 - $75,000

PEG Fund

This fund was established by Council in FY 2012-2013 to provide funding for the Town’s future public access and educational channel. The estimated balance at fiscal year ending September 30, 2020, will be approximately $66,275. The annual revenue to support the fund will be approximately $46,000 for FY 2020-2021. In the coming years, the PEG fund will be utilized to make improvements to improve the broadcast and viewing quality of the Council meetings and public information.

Community Development Corporation Fund (CDC)

The CDC is supported by a .25 cent sales tax and is utilized to support parks and recreation improvements and programs in the Town of Little Elm. The CDC typically covers the debt service for portions of parks projects completed in previous years such as Little Elm Park improvements, Beard Park improvements, and Recreation Center improvements. It has also been a critical funding source for many trail and lighting projects. In the coming budget, the major expenses of the CDC are as follows:

• Lightning Detection System, FY21-FY25 - $6,000 • Miscellaneous Park Projects, FY21-FY25 - $50,000 • Design for Cottonwood Lakefront Park, FY21 - $400,000 • Twenty-year debt issuance of $4M for the construction of Cottonwood Lakefront Park, FY

2021-2025 • Aquatic Center enhancement for equipment, FY21-$125,000

30

ADOPTED BUDGET

TOWN OF LITTLE ELM

TIRZ # 3, Lakefront Tax Increment Reinvestment Zone

The TIRZ for the Lakefront District was set up a few years ago to benefit and enhance the development of this unique area in Little Elm. The Town, EDC, CDC, and Denton County all participate in this TIRZ with the contribution of revenues earmarked for improvements in this area. The funding that is supporting the TIRZ is based on the incremental increase of property taxes and sales taxes generated within the boundaries of the TIRZ. For the first couple of years, there was very little revenue, but now that many new projects have occurred in the Lakefront District, revenue sufficient enough to begin going towards improvements is beginning to be generated. The following are the items funded out of the TIRZ #3 Budget in FY 2020-2021:

• Beach Sand, FY21-FY25 - $30,000 • Seasonal Banners, FY21-FY25 - $15,000 • Utility Box Wraps, FY21 - $13,590 • Sponsorship for July Jubilee, FY21-FY25 - $30,000 • Lighting for Remaining Town Buildings in Lakefront, FY21 - $50,000 • Placemaking Monuments, FY21 - $65,000 • Lakefront Programming, FY21-FY25 - $30,000 • Lakefront Marketing, FY21-FY25 - $41,950 • Transfer to General Fund for Marketing Administration, FY21-FY25 - $100,000 • eFrogs, FY21-FY25 - $16,400

Debt

The purpose of this fund is to record property taxes levied and collected to pay annual principal and interest payments on debt obligations with a legally binding pledge to repay with a commitment of an annual tax levy against property values certified by the Denton County Appraisal District. The following is a list of all debt obligations:

31

ADOPTED BUDGET

TOWN OF LITTLE ELM

Conclusion

This completes the highlights of the FY 2020-2021 budgets as well as a balanced financial plan through the FY 2024-2025. We feel that we have done our best to listen to the directives set forth by the Town Council at the beginning of the budgeting process and met all the needs communicated. The Town of Little Elm staff and department heads have put a tremendous amount of effort into building a budget that is conservative and respectful of the taxpayers’ resources while still addressing the needs and challenges that are presented by the unprecedented growth the community is experiencing. I am proud that this is a document put together by a team who all had the best interests of the community at heart. Respectfully submitted, Matt Mueller Town Manager

PRIMARY GOVERNMENT2012 General Obligation Refunding Bonds - $6.95M 8/1/2024 8/1/2021 905,000$ 44,525$ 949,525$ 450,025$

2012A General Obligation Refunding Bonds - $2.735M 8/1/2027 8/1/2022 1,395,000 119,235 1,514,235 214,156 2013 Certificates of Obligations - $6M (CDC) 8/1/2033 8/1/2023 4,270,000 1,029,950 5,299,950 408,000

2013A Certificates of Obligations -$3M 8/1/2033 8/1/2023 2,200,000 604,025 2,804,025 214,700 2014 General Obligations Refunding - $4.550M 8/1/2029 8/1/2024 1,310,000 250,925 1,560,925 175,550 2014 Tax Note - $1.990M 8/1/2021 - 250,000 4,425 254,425 254,425 2015 Certificates of Obligations - $9.655M 2/1/2036 2/1/2025 8,105,000 2,125,244 10,230,244 643,388 2016 General Obligations Refunding - $6.725M 8/1/2027 8/1/2025 4,400,000 462,081 4,862,081 739,869 2018 Certificates of Obligations - $15.460M 2/1/2038 2/1/2028 11,810,000 4,260,928 16,070,928 894,856 2019 General Obligations Refunding - $7.230M 8/1/2029 - 6,795,000 1,146,200 7,941,200 855,800 2019 Certificiates of Obligations - $6.640M 2/1/2039 2/1/2028 6,370,000 2,251,600 8,621,600 455,475 2020 General Obligations Refunding - $5.725M 8/1/2030 - 5,560,000 334,152 5,894,152 615,048 2020 Certificates of Obligations - $4.275M 8/1/2040 8/1/2029 4,275,000 1,190,938 5,465,938 278,813

TOTAL DEBT FOR PRIMARY GOVERNMENT (TAX SUPPORTED) 57,645,000$ 13,824,227$ 71,469,227$ 6,200,104$

SELF-SUPPORTING DEBT OF THE UTILITY2012 General Obligation Refunding Bonds - $6.95M 8/1/2024 8/1/2021 1,150,000$ 86,225$ 1,236,225$ 308,125$ 2012 Certificate of Obligations - $6.0M 8/1/2027 8/1/2022 3,160,000$ 288,784$ 3,448,784$ 477,876$ 2013 General Obligation Refunding Bonds - $3.040M 9/1/2025 9/1/2022 1,460,000 106,556 1,566,556 247,181 2014 General Obligations Refunding - $4.550M 8/1/2029 8/1/2024 1,650,000 307,500 1,957,500 222,125 2016 Certificate of Obligations - $7.640M 8/1/2036 8/1/2025 6,580,000 1,823,738 8,403,738 526,344 2017 Certificate of Obligations - $11.830M 8/1/2037 8/1/2026 10,300,000 3,261,513 13,561,513 796,638 2017 General Obligations - $13.645M 8/1/2034 8/1/2026 12,320,000 3,367,588 15,687,588 1,120,875 2020 General Obligations Refunding - $5.725M 8/1/2030 - 165,000 1,782 166,782 166,782

TOTAL SELF-SUPPORTING DEBT (UTILITY) 36,785,000$ 9,243,685$ 46,028,685$ 3,865,946$

TOTAL DEBT OBLIGATIONS 94,430,000$ 23,067,912$ 117,497,912$ 10,066,049$

Total Outstanding 9/30/2020

P&I Due FY 2020-2021

Bond Series Obligation

Maturity Date

Callable Date Principal Interest

32

ADOPTED BUDGET

TOWN OF LITTLE ELM

PAGE INTENTIONALLY LEFT BLANK

33

ADOPTED BUDGET

TOWN OF LITTLE ELM

CONSOLIDATED BUDGET FUND SUMMARY

FISCAL YEAR 2020 – 2021

3434

GENERAL FUND DEBT SERVICE FUNDSPECIAL REVENUE

FUNDSIMPACT FEE FUNDS

CAPTIAL IMPROVEMENT

FUNDSSUBTOTAL

BEGINNING FUND BALANCE 22,047,860$ 474,841$ 3,129,033$ 1,182,069$ 6,021,186$ 32,854,989$

REVENUES

Ad Valorem Taxes 20,631,503$ 4,959,606$ 409,415$ -$ -$ 26,000,524$

Sales and Use Taxes 4,484,472 - 1,329,576 - - 5,814,048$

Franchise and Other Taxes 2,210,000 - 45,000 - - 2,255,000$

Fines and Forfeitures 670,000 - 9,500 - - 679,500$

Impact Fees - - - 25,000 - 25,000$

Licenses, Permits & Fees 2,838,576 - - - 250,000 3,088,576$

Charges for Services 5,163,330 - 998,340 - - 6,161,670$

Intergovernmental 3,514,272 84,000 4,900 - - 3,603,172$

Interest Earnings 425,000 100,000 47,250 21,000 100,000 693,250$

Debt Proceeds - - - - 5,000,000 5,000,000$

Miscellaneous 56,000 - 11,750 500,000 567,750$

Transfers In 2,679,000 791,975 441,000 - 940,000 4,851,975$

TOTAL REVENUES 42,672,153$ 5,935,581$ 3,296,731$ 46,000$ 6,790,000$ 58,740,465$

TOTAL FUNDS AVAILABLE 64,720,013$ 6,410,422$ 6,425,764$ 1,228,069$ 12,811,186$ 91,595,455$

EXPENDITURES

General Government 6,502,795$ 15,000$ 356,440$ -$ 765,000$ 7,639,235$

Public Safety 24,533,122 - 63,990 - - 24,597,112$

Community Services 3,140,840 - - - - 3,140,840$

Public Works 3,037,720 - 2,096,100 - 4,015,000 9,148,820$

Culture and Recreation 6,403,836 - - - 3,040,000 9,443,836$

Utilities - - 1,083,679 - - 1,083,679$

Debt Service - 6,200,106 - - - 6,200,106$

Transfers Out 2,897,795 - 381,052 175,000 - 3,453,847$

TOTAL EXPENDITURES 46,516,108$ 6,215,106$ 3,981,261$ 175,000$ 7,820,000$ 64,707,475$

NET INCOME/(LOSS) (3,843,955)$ (279,525)$ (684,530)$ (129,000)$ (1,030,000)$ (5,967,009)$

ENDING FUND BALANCE 18,203,905$ 195,317$ 2,444,503$ 1,053,069$ 4,991,186$ 26,887,980$

GOVERNMENTAL FUNDS

CONSOLIDATED BUDGET FUNDS SUMMARYRevenues, Expenditures and Change in Fund Balance

FISCAL YEAR 2020 - 2021

ADOPTED BUDGET

TOWN OF LITTLE ELM

3535

BEGINNING FUND BALANCE

REVENUES

Ad Valorem Taxes

Sales and Use Taxes

Franchise and Other Taxes

Fines and Forfeitures

Impact Fees

Licenses, Permits & Fees

Charges for Services

Intergovernmental

Interest Earnings

Debt Proceeds

Miscellaneous

Transfers In

TOTAL REVENUES

TOTAL FUNDS AVAILABLE

EXPENDITURES

General Government

Public Safety

Community Services

Public Works

Culture and Recreation

Utilities

Debt Service

Transfers Out

TOTAL EXPENDITURES

NET INCOME/(LOSS)

ENDING FUND BALANCE

INTERNAL SERVICE FUND COMPONENT UNIT CONSOLIDATED FUNDS

UTILITY FUNDSIMPACT FEE

FUNDS

CAPTIAL IMPROVEMENT

FUNDREPLACEMENT FUNDS CDC

TOTAL TOWN WIDE BUDGET

14,820,178$ 3,929,256$ -$ 3,777,743$ 742,368$ 56,124,536$

-$ -$ -$ -$ -$ 26,000,524$

- - - - 1,183,618 6,997,666

160,000 - - - - 2,415,000

- - - - - 679,500

- 650,000 - - - 675,000

3,330,158 - - - - 6,418,734

18,475,022 - - - - 24,636,692

- - - - - 3,603,172

207,500 - - 51,000 10,000 961,750

- - 14,850,000 19,850,000

100 - - 13,000 - 580,850

- - 4,270,879 1,618,771 - 10,741,626

22,172,780$ 650,000$ 19,120,879$ 1,682,771$ 1,193,618$ 103,560,514$

36,992,958$ 4,579,256$ 19,120,879$ 5,460,514$ 1,935,986$ 159,685,050$

-$ -$ -$ 30,556$ -$ 7,669,791$

- - - 603,058 - 25,200,170

- - - - 591,100 3,731,940

- - - 166,235 - 9,315,055

- - - 297,385 - 9,741,221

14,426,215 - 4,613,149 - - 20,123,043

3,875,946 - - - - 10,076,052

4,011,251 2,635,628 - - 640,900 10,741,626

22,313,412$ 2,635,628$ 4,613,149$ 1,097,234$ 1,232,000$ 96,598,898$

(140,632)$ (1,985,628)$ 14,507,730$ 585,536$ (38,382)$ 6,961,616$

14,679,546$ 1,943,628$ 14,507,730$ 4,363,280$ 703,986$ 63,086,152$

ENTERPRISE FUNDS

CONSOLIDATED BUDGET FUNDS SUMMARY CONTINUEDRevenues, Expenditures and Change in Fund Balance

FISCAL YEAR 2020 - 2021

ADOPTED BUDGET

TOWN OF LITTLE ELM

3636

ADOPTED BUDGET

TOWN OF LITTLE ELM

GENERAL FUND Fiscal Year 2020 – 2021 Adopted Budget

The General Fund is the fund that houses the basic services of municipal government. These services include the following departments that account for the General Fund Expenditure categories:

COMMUNITY SERVICES DEPARTMENTS BUDGET

Development Services $ 1,023,953 Engineering $ 825,607 Building Inspection / Code $ 1,291,280 Total Community Services $ 3,140,840

GENERAL GOVERNMENT DEPARTMENTS BUDGET

Town Council $ 151,991 Town Manager $ 1,422,097 Town Secretary $ 192,606 Finance Department $ 2,394,886 Information Technology $ 1,590,596 Town Attorney $ 340,000 Marketing & Communications $ 390,619 Total General Government $ 6,502,795

PUBLIC SAFETY DEPARTMENTS BUDGET

Municipal Court $ 591,665 Animal Services $ 408,310 Police Department $ 13,492,829 Fire Department $ 9,810,188 Total Public Safety $ 24,302,992

3737

ADOPTED BUDGET

TOWN OF LITTLE ELM

CULTURE & RECREATION DEPARTMENTS BUDGET

Library $ 606,796 Park Maintenance $ 2,115,543 Park Senior Program $ 212,811 Total Culture & Recreation $ 2,935,150

General Government

15%

Public Safety57%

Community Services

7%

Public Works7%

Culture & Recreation7%

Transfers7%

PUBLIC WORKS DEPARTMENTS BUDGET

Facility Maintenance $ 896,656 Fleet Services $ 542,183 Streets Department $ 1,598,881 Total Public Works $ 3,037,720

3838

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 18,400,539$ 18,178,703$ 18,178,703$ 20,970,811$ 17,308,607$ 16,651,474$ 16,273,442$ 14,057,045$

REVENUES

Ad Valorem Taxes 17,419,781$ 19,073,302$ 19,415,191$ 20,631,503$ 20,296,188$ 21,058,561$ 21,975,594$ 23,293,996$

Sales and Use Taxes 4,085,873 3,831,130 4,334,890 4,484,472 4,732,834 4,874,280 5,043,887 5,200,164

Franchise and Other Taxes 2,225,698 2,265,000 2,180,332 2,210,000 2,210,000 2,235,000 2,230,000 2,230,000

Fines and Forfeitures 817,927 652,430 708,424 670,000 695,000 710,000 725,000 747,500

Licenses and Permits 3,355,768 3,014,000 2,996,578 2,838,576 2,883,076 2,878,076 2,773,076 2,673,076

Charges for Services 2,580,316 2,156,500 2,073,039 2,136,500 2,145,500 2,154,500 2,154,500 2,159,500

Intergovernmental 1,995,331 3,496,751 5,539,958 3,514,272 3,621,344 3,704,759 3,831,758 3,919,184

Interest Earnings 600,821 400,000 400,844 400,000 450,000 475,000 500,000 525,000

Miscellaneous 790,132 92,790 194,506 56,000 56,000 56,000 56,000 56,000

Transfers In 1,981,135 2,077,000 2,072,432 2,107,000 2,107,000 2,122,000 2,132,000 2,132,000

TOTAL REVENUES 35,852,781$ 37,058,903$ 39,916,194$ 39,048,323$ 39,196,942$ 40,268,175$ 41,421,814$ 42,936,421$

TOTAL FUNDS AVAILABLE 54,253,320$ 55,237,606$ 58,094,897$ 60,019,134$ 56,505,549$ 56,919,649$ 57,695,257$ 56,993,466$

EXPENDITURES

General Government 4,170,186$ 6,400,867$ 5,842,101$ 6,502,795$ 5,785,335$ 5,823,780$ 5,961,598$ 6,058,438$

Public Safety 17,488,949 20,795,794 20,366,827 24,302,992 23,027,466 23,595,598 26,091,658 27,758,004

Community Services 2,580,538 3,380,762 2,976,578 3,140,840 3,200,022 3,186,836 3,317,805 3,327,196

Public Works 3,543,974 3,050,447 2,307,441 3,037,720 3,230,569 3,303,980 3,362,369 3,383,297

Culture and Recreation 2,806,843 2,738,096 2,665,258 2,935,150 3,007,619 3,049,262 3,156,195 3,221,587

TOTAL EXPENDITURES 30,590,489$ 36,365,966$ 34,158,205$ 39,919,497$ 38,251,011$ 38,959,456$ 41,889,625$ 43,748,521$

Transfers Out 5,484,129$ 3,315,881$ 2,965,881$ 2,791,030$ 1,603,065$ 1,686,750 1,748,586 1,789,932

TOTAL TRANSFERS 5,484,129$ 3,315,881$ 2,965,881$ 2,791,030$ 1,603,065$ 1,686,750$ 1,748,586$ 1,789,932$

TOTAL EXPENDITURES INCLUDING TRANSFERS 36,074,618$ 39,681,847$ 37,124,086$ 42,710,527$ 39,854,075$ 40,646,206$ 43,638,212$ 45,538,454$

NET INCOME/(LOSS) (221,836)$ (2,622,943)$ $2,792,108 (3,662,204)$ ($657,134) ($378,031) ($2,216,397) ($2,602,033)

ENDING FUND BALANCE 18,178,703$ 15,555,759$ 20,970,811$ 17,308,607$ 16,651,474$ 16,273,442$ 14,057,045$ 11,455,012$

COMMITTED RESERVES 50.39% 39.20% 56.49% 40.53% 41.78% 40.04% 32.21% 25.15%

Planning Years

GENERAL FUNDRevenues, Expenditures and Change in Fund Balance

ADOPTED BUDGET

TOWN OF LITTLE ELM

3939

ADOPTED BUDGET

TOWN OF LITTLE ELM

GENERAL FUND REVENUE Fiscal Year 2020 – 2021 Budget

General Fund revenue is made up of several categories of revenue from across multiple Town departments. These include:

Ad Valorem (Property) Taxes – Property Taxes based on the appraised values provided by Denton County Central Appraisal District.

Sales and Use Tax – One percent of the sales tax collected within the Town. Franchise Fees – Includes fees assessed for private use of public property. Fines and Forfeiture – Includes all court fines and fees, and contractor and

constructions fees, and other Town fees. Licenses and Permits – Includes permits and licenses required by the Town. Charges for Service – Revenues collected for services provided through the

departments funded through the General Fund. Intergovernmental – Two or more governments providing assistance for a program. Miscellaneous – Other Revenue.

Ad Valorem (Property) Taxes

53%

Sales and Use Tax12%

Franchise Fees6%

Fines and Forfeiture2%

Licenses and Permits7%

Charges for Service5%

Intergovernmental Revenue

9%

Misc. Revenue1%

Transfers5%

4040

Actual Amended Budget

Estimated Budget

Proposed Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025AD VALOREM TAXES

Ad Valorem - Current 18,394,305$ 21,010,582$ 21,434,192$ 22,966,506$ 23,037,007$ 24,455,772$ 25,974,727$ 28,072,733$

Contra Property Tax (1,103,561) (2,044,100) (2,050,027) (2,430,003) (2,835,819) (3,492,211) (4,094,133) (4,873,737) Penalty and Interest Earnings on Delinquent 56,148 45,780 45,615 45,000 45,000 45,000 45,000 45,000

Ad Valorem - Prior Year 71,034 61,040 (14,589) 50,000 50,000 50,000 50,000 50,000

Vehicle Inventory Tax 1,856 - - - - - - -

Total Ad Valorem Taxes 17,419,781$ 19,073,302$ 19,415,191$ 20,631,503$ 20,296,188$ 21,058,561$ 21,975,594$ 23,293,996$

SALES AND USE TAX

Town Sales Tax 4,347,702$ 4,316,130$ 4,790,749$ 4,934,472$ 5,057,834$ 5,184,280$ 5,313,887$ 5,420,164$

Contra Sales Tax (343,206) (550,000) (527,020) (525,000) (400,000) (385,000) (350,000) (300,000)

Mixed Drink Tax 81,377 65,000 71,161 75,000 75,000 75,000 80,000 80,000

Total Sales and Use Tax 4,085,873$ 3,831,130$ 4,334,890$ 4,484,472$ 4,732,834$ 4,874,280$ 5,043,887$ 5,200,164$

FRANCHISE FEES

Franchise Fee - Electric 1,759,644$ 1,825,000$ 1,791,365$ 1,825,000$ 1,850,000$ 1,875,000$ 1,875,000$ 1,875,000$

Franchise Fee - Gas 196,521 200,000 190,543 200,000 200,000 200,000 200,000 200,000

Franchise Fee - Cable 226,804 200,000 161,910 150,000 125,000 125,000 125,000 125,000

Franchise Fee - Telephone 42,728 40,000 36,514 35,000 35,000 35,000 30,000 30,000

TOTAL Franchise Fees 2,225,698$ 2,265,000$ 2,180,332$ 2,210,000$ 2,210,000$ 2,235,000$ 2,230,000$ 2,230,000$

FINES AND FORFEITURES

Municipal Court Fines 809,237$ 650,000$ 685,197$ 650,000$ 675,000$ 685,000$ 700,000$ 720,000$

State Court Accident Report Fee 3,811 2,430 - - - - - -

Court Credit Card Fees 4,879 - 23,227 20,000 20,000 25,000 25,000 27,500

TOTAL FINES AND FORFEITURES 817,927$ 652,430$ 708,424$ 670,000$ 695,000$ 710,000$ 725,000$ 747,500$

LICENSES AND PERMITS

Mobile Home Park Licenses 14,076$ 14,000$ 14,076$ 14,076$ 14,076$ 14,076$ 14,076$ 14,076$

Annual Permits 42,650 40,000 38,700 40,000 40,000 40,000 40,000 40,000

Certificate of Occupancy 1,700 2,000 3,050 2,500 2,000 2,000 2,000 2,000

Building Permits 2,899,217 2,600,000 2,600,000 2,450,000 2,500,000 2,500,000 2,400,000 2,300,000

Plumbing Permits 100 - - - - - - -

Contractor Regs and Reinspections 118,925 95,000 112,050 95,000 95,000 95,000 95,000 95,000

Other Permits 5,725 2,000 1,700 2,000 2,000 2,000 2,000 2,000

Irrigation Permits 192,819 185,000 161,334 165,000 160,000 155,000 150,000 150,000

Sign Permits 15,090 16,000 7,430 10,000 10,000 10,000 10,000 10,000

Alarm Permits 65,466 60,000 58,238 60,000 60,000 60,000 60,000 60,000

Total Licenses and Permits 3,355,768$ 3,014,000$ 2,996,578$ 2,838,576$ 2,883,076$ 2,878,076$ 2,773,076$ 2,673,076$

CHARGES FOR SERVICES

Rental Registrations 200,410$ 190,000$ 239,935$ 250,000$ 300,000$ 300,000$ 300,000$ 300,000$

Infrastructure Inspection Fees 346,395 250,000 162,413 250,000 200,000 200,000 200,000 200,000

Fire Code Inspection Fees 17,454 25,000 15,000 15,000 15,000 15,000 15,000 15,000

Platting Fees 47,574 40,000 24,748 25,000 25,000 25,000 25,000 25,000

Planning and Zoning Fees 9,450 7,000 7,750 7,000 6,000 5,000 5,000 5,000

Plan Review Fees 493,727 460,000 411,614 400,000 400,000 400,000 400,000 400,000

Animal Control Revenue 24,279 20,000 15,607 20,000 20,000 20,000 20,000 20,000

Facility Rentals 500 - 450 - - - - -

GENERAL FUND REVENUE SUMMARY

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

4141

Actual Amended Budget

Estimated Budget

Proposed Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

Senior Travel/Entertainment Funds 160,008 10,000 (34,114) - 10,000 10,000 10,000 10,000

Cottonwood Creek Marina - Land 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500

Library Revenue 13,062 12,000 7,338 12,000 12,000 12,000 12,000 12,000

Concession Proceeds 37,210 30,000 23,695 30,000 30,000 30,000 30,000 30,000

Cottonwood Creek Marina - Sales 136,245 85,000 81,987 85,000 85,000 85,000 85,000 85,000

Boat Ramp Fees 83,115 65,000 76,906 65,000 65,000 65,000 65,000 65,000

Ambulance/Fire Runs 928,464 890,000 956,447 900,000 900,000 910,000 910,000 915,000

Fire Runs/Collection 49,924 40,000 50,764 45,000 45,000 45,000 45,000 45,000

Transfer from LEEDC 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

Total Charges for Services 2,580,316$ 2,156,500$ 2,073,039$ 2,136,500$ 2,145,500$ 2,154,500$ 2,154,500$ 2,159,500$

INTERGOVENMENTAL REVENUE

Library Qtr Pledge Denton County 38,800$ 37,000$ 43,600$ 43,600$ 43,600$ 43,600$ 43,600$ 43,600$

Fire Services Pledge DentonCounty 92,296 83,430 59,200 85,000 87,050 90,000 90,000 92,000

Ambulance Pledge Denton County 55,403 48,000 57,022 50,000 52,000 54,000 56,000 58,000

DCFWS-Police Service Agreement 523,831 623,038 623,038 602,008 617,058 629,399 641,987 654,827

Contract Payment / Lakewood Village 31,500 25,000 30,000 15,000 15,000 15,000 15,000 15,000

Contract Payment / City of Hackberry 96,695 96,695 96,695 96,695 96,695 96,695 96,695 96,695

Paloma Creek Police Services - 1,599,987 1,523,988 1,658,917 1,741,863 1,785,409 1,874,680 1,921,547

Other Grants/Reimbursements 75,471 10,376 11,250 - - - - -

SRO Contracts 878,442 908,225 904,967 881,052 903,078 925,655 948,796 972,515

Reimbursement - Other Grants 202,893 65,000 122,928 65,000 65,000 65,000 65,000 65,000

CRF CARES Act Funding 2,067,270 17,000

Total Intergovernmental Revenue 1,995,331$ 3,496,751$ 5,539,958$ 3,514,272$ 3,621,344$ 3,704,759$ 3,831,758$ 3,919,184$

INTEREST EARNINGS 600,821$ 400,000$ 400,844$ 400,000$ 450,000$ 475,000$ 500,000$ 525,000$

MISCELLANEOUS REVENUE

Auction Proceeds 3,700$ -$ 2,952$ -$ -$ -$ -$ -$

Gain/Loss on Sale of Assets 142,943 12,090 - - - - - -

Insurance Reimbursements 426,578 - 82,228 - - - -

Abatement Reimbursements 7,974 5,700 12,200 6,000 6,000 6,000 6,000 6,000

Miscellaneous Revenue 208,937 75,000 97,126 50,000 50,000 50,000 50,000 50,000

Total Miscellaneous Revenue 790,132$ 92,790$ 194,506$ 56,000$ 56,000$ 56,000$ 56,000$ 56,000$

TRANSFERS

Transfer from Water Utility Fund 1,761,150$ 1,800,000$ 1,800,000$ 1,810,000$ 1,810,000$ 1,825,000$ 1,835,000$ 1,835,000$

Transfer from Solid Waste Fund 175,000 175,000 175,000 175,000 175,000 175,000 175,000 175,000

Transfer from CDC 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000

Transfer from Other Funds 9,985 90,000 85,432 110,000 110,000 110,000 110,000 110,000

Transfers In 23,000 - - - - - - -

Total Transfers 1,981,135$ 2,077,000$ 2,072,432$ 2,107,000$ 2,107,000$ 2,122,000$ 2,132,000$ 2,132,000$

TOTAL REVENUE 35,852,781$ 36,313,683$ 39,013,264$ 39,048,323$ 38,445,942$ 39,502,175$ 40,640,814$ 42,132,921$

Planning Years

TOWN OF LITTLE ELM

GENERAL FUND REVENUE SUMMARY CONTINUED

ADOPTED BUDGET

4242

ADOPTED BUDGET

TOWN OF LITTLE ELM

PARKS AND RECREATION FUND Fiscal Year 2020 – 2021 Budget

This fund is the fiscal and accounting entity used to record financial transactions and balances related to the operation of the Town's recreation programs. The Fund has four divisions – Aquatic Facility, Recreation Programming, Special Events and Athletics. The two-story recreation center spans over 26,000 square feet. The facility includes elements such as a large state of the art fitness area, full-size gym, recreation classrooms, multi-purpose room, craft room, outdoor terrace, and spacious men's and women's locker rooms. The facility offers memberships, group exercise, programs and classes of all types, amenities, and facility rentals.

The Cove at the Lakefront aquatic center is scheduled to open in 2021. The new aquatics facility is over 42,000 square foot building with a retractable roof that provides year round entertainment and activities for all ages. The Cove at the Lakefront will have a double FlowRider, splash pad, large play structure, and splash pad, multiple slides, activity pool, entertainment areas, party rooms and cabanas.

4343

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 946,721$ 1,329,588$ 1,329,588$ 1,077,049$ 895,298$ 946,886$ 1,061,320$ 1,173,287$

REVENUES

Events 369,749$ 456,500$ 190,245$ 446,400$ 446,400$ 446,400$ 446,400$ 446,400$

Fees 813,289 905,300 490,814 2,350,300 3,257,300 3,403,300 3,487,300 3,572,800

Interest Earnings 28,229 20,500 20,771 25,000 35,000 35,000 35,000 35,000

Transfers In 575,000 500,000 500,000 572,000 - - - -

TOTAL REVENUES 1,786,267 1,882,300 1,201,829 3,393,700 3,738,700 3,884,700 3,968,700 4,054,200

TOTAL FUNDS AVAILABLE 2,732,988$ 3,211,888$ 2,531,417$ 4,470,749$ 4,633,998$ 4,831,586$ 5,030,020$ 5,227,487$

EXPENDITURES

Aquatic Center -$ -$ 46,862$ 1,937,174$ 2,014,784$ 2,063,284$ 2,102,381$ 2,151,983$

Park Recreation Programming 779,005 816,937 721,006 878,605 869,254 891,743 920,883 942,440

Special Events 461,749 647,964 564,572 490,013 486,531 488,685 499,388 499,758

Athletic Programs 162,646 239,057 121,927 162,894 166,543 169,554 173,082 176,345

TOTAL EXPENDITURES 1,403,400$ 1,703,958$ 1,454,368$ 3,468,686$ 3,537,112$ 3,613,266$ 3,695,734$ 3,770,526$

Transfers Out -$ -$ -$ 106,765$ 150,000$ 157,000$ 161,000$ 165,000$

TOTAL TRANSFER -$ -$ -$ 106,765$ 150,000$ 157,000$ 161,000$ 165,000$

TOTAL EXPENDITURES INCLUDING TRANSFERS 1,403,400$ 1,703,958$ 1,454,368$ 3,575,451$ 3,687,112$ 3,770,266$ 3,856,734$ 3,935,526$

NET INCOME/(LOSS) 382,867$ 178,342$ (252,538)$ (181,751)$ 51,588$ 114,434$ 111,966$ 118,674$

ENDING FUND BALANCE 1,329,588$ 1,507,930$ 1,077,049$ 895,298$ 946,886$ 1,061,320$ 1,173,287$ 1,291,961$

COMMITTED RESERVES 94.74% 88.50% 74.06% 25.04% 25.68% 28.15% 30.42% 32.83%

PARKS AND RECREATION FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

44

ADOPTED BUDGET

TOWN OF LITTLE ELM

PALOMA CREEK POLICE EQUIPMENT Fiscal Year 2020 – 2021 Budget

This fund accounts for an Intergovernmental Agreement (ILA) for the purchase of Police equipment servicing the Paloma Creek area.

45

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE -$ (244,542)$ (244,542)$ -$ -$ -$ -$ -$

REVENUES

Reimbursements - 200,000 717,208 230,130 - - - -

TOTAL REVENUES - 200,000 717,208 230,130 - - - -

TOTAL FUNDS AVAILABLE -$ (44,542)$ 472,666$ 230,130$ -$ -$ -$ -$

EXPENDITURES

Capital Expense 207,052 630,000 396,256 229,702 - - - -

Police Equipment 37,490 75,000 76,409 428 - - - -

TOTAL EXPENDITURES 244,542$ 705,000$ 472,666$ 230,130$ -$ -$ -$ -$

ENDING FUND BALANCE (244,542)$ (749,542)$ -$ -$ -$ -$ -$ -$

PALOMA CREEK POLICE SERVICESRevenue, Expenditures, and Change in Fund Balance

Planning Years

TOWN OF LITTLE ELM

ADOPTED BUDGET

46

ADOPTED BUDGET

TOWN OF LITTLE ELM

DEBT SERVICE FUND Fiscal Year 2020 – 2021 Budget

The purpose of this fund is to record property taxes levied and collected for the purpose of paying annual principal and interest payments on debt obligations with a legally binding pledge to repay with a commitment of an annual tax levy against property values certified by the Denton County Appraisal District.

47

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 1,153,205$ 1,080,534$ 1,080,534$ 474,841$ 676,864$ 822,905$ 724,654$ 613,697$

REVENUES

Ad Valorem Taxes 6,191,509$ 6,269,704$ 6,382,956$ 5,441,153$ 5,197,148$ 5,456,907$ 5,517,394$ 5,886,030$

Intergovernmental 81,006 83,000 64,850 84,000 84,000 85,000 85,000 86,000

New Debt Issuance 7,320,000 - - - - - - -

Interest Earnings Earnings 74,322 50,000 67,500 100,000 100,000 100,000 100,000 100,000

Transfers In 1,134,499 1,091,977 583,611 791,975 788,050 793,900 793,400 791,725

TOTAL REVENUES 14,801,336 7,494,681 7,098,917 6,417,128 6,169,198 6,435,807 6,495,794 6,863,755

TOTAL FUNDS AVAILABLE 15,954,541$ 8,575,215$ 8,179,451$ 6,891,969$ 6,846,062$ 7,258,712$ 7,220,448$ 7,477,451$

EXPENDITURES

Principal Cost 5,001,004$ 5,620,395$ 5,620,395$ 4,465,000$ 4,395,000$ 4,539,700$ 4,497,800$ 4,635,600$

Interest Earnings Cost 1,833,238 2,076,217 2,074,215 1,735,106 1,613,157 1,479,358 1,343,951 1,224,988

Other Debt Services Cost 8,039,765 14,998 10,000 15,000 15,000 15,000 15,000 15,000

Reserve - - - - - 500,000 750,000 1,000,000

TOTAL EXPENDITURES 14,874,007$ 7,711,610$ 7,704,610$ 6,215,106$ 6,023,157$ 6,534,058$ 6,606,751$ 6,875,588$

NET INCOME/(LOSS) (72,671)$ (216,929)$ (605,693)$ 202,023$ 146,041$ (98,251)$ (110,957)$ (11,833)$

ENDING FUND BALANCE 1,080,534$ 863,605$ 474,841$ 676,864$ 822,905$ 724,654$ 613,697$ 601,863$

GENERAL DEBT SERVICE FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

48

ADOPTED BUDGET

TOWN OF LITTLE ELM

SPECIAL REVENUE FUND Fiscal Year 2020 – 2021 Budget

This fund was established to collect funds that must be used for a specific project. Special revenue funds provide an extra level of accountability and transparency to insure funding will go toward an intended purpose. Types of subaccounts included in this fund include the Municipal Court Technology, Court Security, Child Safety, Police Training, Fire Training, and designated parks and recreation funds collected through grants for specific purpose.

49

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 289,281$ 381,820$ 381,820$ 417,826$ 496,736$ 576,446$ 657,156$ 737,766$

REVENUES

Rates, Fees and Charges 169,349$ 121,500$ 87,500$ 122,500$ 123,500$ 124,500$ 124,500$ 124,500$

Intergovernmental Funds 4,506 4,900 4,873 4,900 4,900 4,900 4,900 4,900

Interest Earnings 6,424 1,000 5,000 5,000 5,000 5,000 5,000 5,000

TOTAL REVENUES 180,279 127,400 97,373 132,400 133,400 134,400 134,400 134,400

TOTAL FUNDS AVAILABLE 469,560$ 509,220$ 479,193$ 550,226$ 630,136$ 710,846$ 791,556$ 872,166$

EXPENDITURES

Municipal Court 54,210$ 43,500$ 37,340$ 29,000$ 29,200$ 29,200$ 29,300$ 29,300$

Public Safety 23,545 25,720 24,027 24,490 24,490 24,490 24,490 24,490

TOTAL EXPENDITURES 77,755$ 69,220$ 61,367$ 53,490$ 53,690$ 53,690$ 53,790$ 53,790$

Transfers Out 9,985$ 10,000$ 5,500$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$

TOTAL TRANSFER 9,985$ 10,000$ 5,500$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$

TOTAL EXPENDITURES INCLUDING TRANSFERS 87,740$ 79,220$ 66,867$ 63,490$ 63,690$ 63,690$ 63,790$ 63,790$

NET INCOME/(LOSS) 92,539$ 48,180$ 30,506$ 68,910$ 69,710$ 70,710$ 70,610$ 70,610$

ENDING FUND BALANCE 381,820$ 440,000$ 417,826$ 496,736$ 576,446$ 657,156$ 737,766$ 818,376$

SPECIAL REVENUE FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

50

ADOPTED BUDGET

TOWN OF LITTLE ELM

STREET MAINTENANCE FUND 1/4 CENT SALES TAX

Fiscal Year 2020 – 2021 Budget

The Town voted to continue the 1/4 cent sales tax street maintenance allocation in May 2017. The town issues an annual competitive bid for street maintenance and awards the bid for street repairs based on a comprehensive street maintenance inventory grid maintained by the Town's engineer.

Street Maintenance Project inventory is updated annually by Public Works and the Town Engineer and projects are prioritized and placed out to bid; the bids are value engineered and tailored to the budget resources.

51

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 1,175,642$ 995,780$ 995,780$ 559,855$ 603,473$ 777,932$ 834,002$ 922,473$

REVENUES

Sales Tax 1,086,925 1,079,033 1,197,687 1,233,618 1,264,458 1,296,070 1,328,472 1,355,041

Interest Earnings 28,050 2,000 14,802 10,000 10,000 10,000 10,000 8,000

TOTAL REVENUES 1,114,975 1,081,033 1,212,489 1,243,618 1,274,458 1,306,070 1,338,472 1,363,041

TOTAL FUNDS AVAILABLE 2,290,617$ 2,076,813$ 2,208,269$ 1,803,473$ 1,877,932$ 2,084,002$ 2,172,473$ 2,285,514$

EXPENDITURES

Street Maintenance 1,294,837 1,488,414 1,648,414 1,200,000 1,100,000 1,250,000 1,250,000 1,250,000

TOTAL EXPENDITURES 1,294,837$ 1,488,414$ 1,648,414$ 1,200,000$ 1,100,000$ 1,250,000$ 1,250,000$ 1,250,000$

NET INCOME/(LOSS) (179,862)$ (407,381)$ (435,925)$ 43,618$ 174,458$ 56,070$ 88,472$ 113,041$

ENDING FUND BALANCE 995,780$ 588,399$ 559,855$ 603,473$ 777,932$ 834,002$ 922,473$ 1,035,514$

STREET MAINTENANCE FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

52

ADOPTED BUDGET

TOWN OF LITTLE ELM

LANDSCAPE FUND Fiscal Year 2020 – 2021 Budget

This fund was set up by resolution of Council whereby all funds from lease/rental payments received from broadband and cellular providers is set aside for Streetscape improvements throughout the Town.

53

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 661,367$ 834,080$ 834,080$ 374,016$ 159,621$ 4,334$ 128,947$ 247,560$

REVENUES

Rates, Fees and Charges 169,455$ 151,000$ 150,260$ 146,000$ 146,000$ 146,000$ 146,000$ 146,000$

Reimbursements 25,000 133,900 151,788 84,705 58,913 33,913 33,913 33,913

Interest Earnings 16,748 10,000 13,894 10,000 10,000 10,000 10,000 10,000

Transfer In 441,000 441,000 441,000 441,000 441,000 441,000 441,000 441,000

TOTAL REVENUES 652,203 735,900 756,942 681,705 655,913 630,913 630,913 630,913

TOTAL FUNDS AVAILABLE 1,313,570$ 1,569,980$ 1,591,022$ 1,055,721$ 815,534$ 635,247$ 759,860$ 878,473$

EXPENDITURES

Streetscape/Landscape 479,490 1,248,402 1,217,007 896,100 811,200 506,300 512,300 572,300

TOTAL EXPENDITURES 479,490$ 1,248,402$ 1,217,007$ 896,100$ 811,200$ 506,300$ 512,300$ 572,300$

NET INCOME/(LOSS) 172,713$ (512,502)$ (460,065)$ (214,395)$ (155,287)$ 124,613$ 118,613$ 58,613$

ENDING FUND BALANCE 834,080$ 321,578$ 374,016$ 159,621$ 4,334$ 128,947$ 247,560$ 306,173$

LANDSCAPE FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

54

ADOPTED BUDGET

TOWN OF LITTLE ELM

PEG FUND Fiscal Year 2020 – 2021 Budget

Public Access Television is a form of non-commercial mass media where ordinary people can create content television programming which is cablecast through cable TV specialty channels. Public access television was created between 1969 and 1971 by the Federal Communications Commission (FCC). Public-access television is often grouped with public, educational, and government access television channels, by the acronym PEG.

Texas Statutes 66.009 Public , Educational, and Governmental access channels: Cable and Video companies doing business in a municipality and holding a state-issued certificate of franchise authority shall provide the municipality with capacity in its communications network to allow public, educational, and governmental PEG access channels for noncommercial programming.

55

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 203,648$ 121,181$ 121,181$ 66,275$ 62,275$ 68,275$ 74,275$ 80,275$

REVENUES

Franchise Fees 45,361$ 40,000$ 45,739$ 45,000$ 45,000$ 45,000$ 45,000$ 45,000$

Interest Earnings 3,372 500 2,324 1,000 1,000 1,000 1,000 1,000

TOTAL REVENUES 48,733 40,500 48,063 46,000 46,000 46,000 46,000 46,000

TOTAL FUNDS AVAILABLE 252,381$ 161,681$ 169,245$ 112,275$ 108,275$ 114,275$ 120,275$ 126,275$

EXPENDITURES

PEG Expenditures 131,200 50,000 12,970 50,000 40,000 40,000 40,000 40,000

TOTAL EXPENDITURES 131,200$ 50,000$ 12,970$ 50,000$ 40,000$ 40,000$ 40,000$ 40,000$

Transfers Out -$ 90,000$ 90,000$ -$ -$ -$ -$ -$

TOTAL TRANSFERS -$ 90,000$ 90,000$ -$ -$ -$ -$ -$

TOTAL EXPENDITURES INCLUDING TRANSFERS 131,200$ 140,000$ 102,970$ 50,000$ 40,000$ 40,000$ 40,000$ 40,000$

NET INCOME/(LOSS) (82,467)$ (99,500)$ (54,907)$ (4,000)$ 6,000$ 6,000$ 6,000$ 6,000$

ENDING FUND BALANCE 121,181$ 21,681$ 66,275$ 62,275$ 68,275$ 74,275$ 80,275$ 86,275$

PEG FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

56

ADOPTED BUDGET

TOWN OF LITTLE ELM

TRAFFIC SAFETY FUND Fiscal Year 2020 – 2021 Budget

This fund is classified as a Special Revenue Fund which accounts for revenue generated from the Red Light Camera Enforcement program. The Town leases all equipment from American Traffic Solutions. After expenses 50% of the net revenues are remitted to the State Comptroller within 60 days of the close of the fiscal year. This program was authorized in 10/2009 and commenced in 04/2010.

Per Section 7 of House Bill 1631, 86th Legislature, the State of Texas eliminated this program and the fund is reporting no proposed budget for FY 2020-2021.

57

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 173,062$ 95,844$ 95,844$ -$ -$ -$ -$ -$

REVENUES

Fines and Fees 254,709$ -$ -$ -$ $ - -$ -$

Interest Earnings 4,453 - 1,251 - - - - -

TOTAL REVENUES 259,162 - 1,251 - - - - -

TOTAL FUNDS AVAILABLE 432,224$ 95,844$ 97,095$ -$ -$ -$ -$ -$

EXPENDITURES

Traffic Safety Program 336,380$ -$ -$ -$ -$ -$ -$ -$

Police Equipment - 41,279 41,279 - - - - -

Capital Expenditures - 50,000 49,917 - - - - -

TOTAL EXPENDITURES 336,380$ 91,279$ 91,196$ -$ -$ -$ -$ -$

Transfer Out -$ -$ 5,899$ -$ -$ -$ -$ -$

TOTAL TRANSFERS -$ -$ 5,899$ -$ -$ -$ -$ -$

TOTAL EXPENDITURES INCLUDING TRANSFERS 336,380$ 91,279$ 97,095$ -$ -$ -$ -$ -$

NET INCOME/(LOSS) (77,218)$ (91,279)$ (89,945)$ -$ -$ -$ -$ -$

ENDING FUND BALANCE 95,844$ 4,565$ -$ -$ -$ -$ -$ -$

TRAFFIC SAFETY FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

58

ADOPTED BUDGET

TOWN OF LITTLE ELM

DONATION FUND Fiscal Year 2020 – 2021 Budget

The Donation Funds purpose is to account for the donations made by civic organizations, businesses, and citizens for specific uses which include the Library is to use for the renovation of the public library.

59

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 42,180$ 48,585$ 48,585$ 48,868$ 49,368$ 49,868$ 50,368$ 50,868$

REVENUES

Fire Donations 250$ -$ 250$ 250$ 250$ 250$ 250$ 250$

Police Donations 250 1,000 350 250 250 250 250 250

Senior Center Donations 15,000 - 250 250 250 250 250 250

Animal Shelter Donations 655 1,500 425 1,000 1,000 1,000 1,000 1,000

Library Donations 12,849 20,000 8,892 10,000 15,000 15,000 15,000 15,000

Interest Earnings 1,087 150 556 250 250 250 250 250

TOTAL REVENUES 30,091$ 22,650 10,723 12,000 17,000 17,000 17,000 17,000

TOTAL FUNDS AVAILABLE 72,271$ 71,235$ 59,308$ 60,868$ 66,368$ 66,868$ 67,368$ 67,868$

EXPENDITURES

Fire -$ -$ -$ -$ -$ -$ -$ -$

Police 2,500 950 - 250 250 250 250 250

Senior Center 5,298 - - 250 250 250 250 250

Animal Shelter 78 1,500 690 1,000 1,000 1,000 1,000 1,000

Library 15,811 20,000 9,750 10,000 15,000 15,000 15,000 15,000

TOTAL EXPENDITURES 23,686$ 22,450$ 10,440$ 11,500$ 16,500$ 16,500$ 16,500$ 16,500$

NET INCOME/(LOSS) 6,405$ 200$ 283$ 500$ 500$ 500$ 500$ 500$

ENDING FUND BALANCE 48,585$ 48,785$ 48,868$ 49,368$ 49,868$ 50,368$ 50,868$ 51,368$

DONATION FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

60

ADOPTED BUDGET

TOWN OF LITTLE ELM

FORFEITURE FUND Fiscal Year 2020 – 2021 Budget

To account for fines and forfeitures of property resulting from criminal cases within the boundaries of the Town that have been adjudicated by the State of Texas in District Court; requires annual reporting to the State and Federal Governments.

61

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 55,127$ 94,328$ 94,328$ 96,078$ 96,078$ 96,078$ 96,078$ 96,078$

REVENUES

Forfeitures-Police 72,356$ 36,250$ 35,000$ 9,500$ 9,500$ 9,500$ 9,500$ 9,500$

Interest Earnings 1,671 500 1,750 1,000 1,000 1,000 1,000 1,000

TOTAL REVENUES 74,027 36,750 36,750 10,500 10,500 10,500 10,500 10,500

TOTAL FUNDS AVAILABLE 129,154$ 131,078$ 131,078$ 106,578$ 106,578$ 106,578$ 106,578$ 106,578$

EXPENDITURES

Forfeiture Expenses-Federal 22,256 25,000 25,000 5,000 5,000 5,000 5,000 5,000

Forfeiture Expenses-Seizure Share 12,570 10,000 10,000 5,500 5,500 5,500 5,500 5,500

TOTAL EXPENDITURES 34,826$ 35,000$ 35,000$ 10,500$ 10,500$ 10,500$ 10,500$ 10,500$

NET INCOME/(LOSS) 39,202$ 1,750$ 1,750$ -$ -$ -$ -$ -$

ENDING FUND BALANCE 94,328$ 96,078$ 96,078$ 96,078$ 96,078$ 96,078$ 96,078$ 96,078$

ASSET FORFEITURE FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

62

ADOPTED BUDGET

TOWN OF LITTLE ELM

DRAINAGE UTILITY FUND Fiscal Year 2020 – 2021 Budget

A Municipal Drainage Utility System and consequently the Drainage Utility Fund was created in November 2011 by Council approval of Ordinance 1087. The Drainage Utility Funds purpose is to protect the public health and safety of the Town's residents from the loss of life and property caused by surface water overflows, surface water stagnation, and pollution arising from on point source runoff with boundaries of the Town of Little Elm.

63

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 692,197$ 1,112,918$ 1,112,918$ 660,832$ 204,311$ 432,001$ 669,569$ 772,815$

REVENUES

Rates, Fees, and Charges $598,599 $588,675 $599,811 $645,135 656,130$ 660,000$ 670,000$ 682,600$

Intergovernmental Revenue 85,863 - 52,389 - - - - -

Interest Earnings Earnings 17,345 10,000 15,000 10,000 10,000 10,000 10,000 10,000

Miscellaneous 24,000 - - - - - - -

TOTAL REVENUES 725,807$ 598,675$ 667,199$ 655,135$ 666,130$ 670,000$ 680,000$ 692,600$

TOTAL FUNDS AVAILABLE 1,418,004$ 1,711,593$ 1,780,117$ 1,315,967$ 870,441$ 1,102,001$ 1,349,569$ 1,465,415$

EXPENDITURES

Storm Drainage Operations 249,727$ 384,424$ 270,284$ 442,451$ 393,708$ 387,700$ 397,022$ 401,588$

Storm Drainage Capital Projects 26,624$ 590,190$ 820,266$ 641,228$ 12,228$ 12,228$ 147,228$ 12,228$

TOTAL EXPENDITURES 276,351$ 974,614$ 1,090,550$ 1,083,679$ 405,936$ 399,928$ 544,250$ 413,816$

Transfers Out $ 28,735 $ 28,735 $ 28,735 $ 27,977 $ 32,504 32,504 32,504 32,504

TOTAL TRANSFERS $ 28,735 $ 28,735 $ 28,735 $ 27,977 $ 32,504 $ 32,504 $ 32,504 $ 32,504

TOTAL EXPENDITURES INCLUDING TRANSFERS $ 305,086 $ 1,003,349 $ 1,119,285 $ 1,111,656 $ 438,440 $ 432,432 $ 576,754 $ 446,320

NET INCOME/(LOSS) 420,721$ (404,674)$ (452,086)$ (456,521)$ 227,690$ 237,568$ 103,246$ 246,280$

ENDING FUND BALANCE 1,112,918$ 708,244$ 660,832$ 204,311$ 432,001$ 669,569$ 772,815$ 1,019,095$

Planning Years

DRAINAGE UTILITY FUNDRevenues, Expenditures and Change in Fund Balance

ADOPTED BUDGET

TOWN OF LITTLE ELM

64

ADOPTED BUDGET

TOWN OF LITTLE ELM

TIRZ NUMBER THREE Fiscal Year 2020 – 2021 Budget

In October 2013, the Town Council of the Town of Little Elm approved Ordinance No. 1175 designating a contiguous geographic area within the Town of Little Elm, as a Tax Increment Reinvestment Zone to known as Reinvestment Zone Number Three.

65

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 463,470$ 600,581$ 600,581$ 899,384$ 576,742$ 341,627$ 420,161$ 526,048$

REVENUES

Ad Valorem Taxes $360,764 $392,458 $416,475 $409,415 $419,393 $741,349 $766,278 $791,831

Sales Taxes 102,054 90,000 91,389 95,958 98,837 101,802 109,946 120,941

Interest Earnings 11,536 1,500 9,540 10,000 8,500 8,500 10,000 15,000

Transfers In - - - - - - - -

TOTAL REVENUES $474,355 $483,958 $517,404 $515,373 $526,730 $851,651 $886,224 $927,772

TOTAL FUNDS AVAILABLE 937,825$ 1,084,539$ 1,117,984$ 1,414,757$ 1,103,472$ 1,193,278$ 1,306,385$ 1,453,820$

EXPENDITURES

Economic Development 314,244$ 188,600$ 138,600$ 294,940$ 229,120$ 243,967$ 249,899$ 266,650$

Debt Service -$ 508,366$ -$ 213,075$ 402,725$ 399,150$ 400,438$ 396,588$

TOTAL EXPENDITURES 314,244$ 696,966$ 138,600$ 508,015$ 631,845$ 643,117$ 650,337$ 663,238$

Transfers Out $ 23,000 $ 80,000 $ 80,000 $ 130,000 $ 130,000 $ 130,000 $ 130,000 $ 130,000

TOTAL TRANSFERS $ 23,000 $ 80,000 $ 80,000 $ 130,000 $ 130,000 $ 130,000 $ 130,000 $ 130,000

TOTAL EXPENDITURES INCLUDING TRANSFERS $ 337,244 $ 776,966 $ 218,600 $ 638,015 $ 761,845 $ 773,117 $ 780,337 $ 793,238

NET INCOME/(LOSS) 137,111$ (293,008)$ 298,804$ (122,642)$ (235,115)$ 78,534$ 105,887$ 134,534$

RESTRICTED RESERVE DEBT SERVICE -$ -$ -$ 200,000$ 200,000$ 200,000$ 200,000$ 200,000$

ENDING FUND BALANCE 600,581$ 307,573$ 899,384$ 576,742$ 341,627$ 420,161$ 526,048$ 660,582$

Planning Years

TAX INCREMENT FINANCING NO. 3Revenues, Expenditures and Change in Fund Balance

ADOPTED BUDGET

TOWN OF LITTLE ELM

66

ADOPTED BUDGET

TOWN OF LITTLE ELM

GOVERNMENTAL IMPACT FEES Fiscal Year 2020 – 2021 Budget

Impact Fees were established to assure the availability of funds for major capital projects needed as a result of development. The laws governing the collection and disbursement of impact fees require separate accounting and reporting of these funds. Additionally, an analysis and update of the fee structure is required every five years.

Appropriations from these funds are being utilized to provide supplemental funding for eligible capital improvement projects.

67

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 22,195$ 51,257$ 51,257$ 51,257$ 77,257$ 98,257$ 119,257$ 140,257$

REVENUES

Park Impact Fees 23,058 - 48,500 25,000 20,000 20,000 20,000 20,000

Interest Earnings 6,004 - 900 1,000 1,000 1,000 1,000 1,000

Transfers In - - -

TOTAL REVENUES 29,062 - 49,400 26,000 21,000 21,000 21,000 21,000

TOTAL FUNDS AVAILABLE 51,257 51,257 100,657 77,257 98,257 119,257 140,257 161,257

TRANSFERS

Transfers Out - - 5,158 - - - -

TOTAL EXPENDITURES -$ -$ 5,158$ -$ -$ -$ -$ -$

NET INCOME/(LOSS) 29,062$ -$ 44,242$ 26,000$ 21,000$ 21,000$ 21,000$ 21,000$

ENDING FUND BALANCE 51,257$ 51,257$ 95,499$ 77,257$ 98,257$ 119,257$ 140,257$ 161,257$

PARK DEVELOPMENT FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

68

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 1,071,575$ 1,674,910$ 1,674,910$ 1,130,813$ 975,813$ 995,813$ 1,015,813$ 1,035,813$

REVENUES

North Roadway Impact Fees 143,973$ -$ (47,652)$ -$ -$ -$ -$ -$

South Roadway Impact Fees 594,106 469,436 527,111 - - - - -

Interest Earnings 25,255 - 25,000 20,000 20,000 20,000 20,000 20,000

Transfers In - - 5,158 - - - - -

TOTAL REVENUES 763,334$ 469,436$ 509,617$ 20,000$ 20,000$ 20,000$ 20,000$ 20,000$

TOTAL FUNDS AVAILABLE 1,834,910$ 2,144,346$ 2,184,527$ 1,150,813$ 995,813$ 1,015,813$ 1,035,813$ 1,055,813$

TRANSFERS

Transfers Out 160,000 1,053,714 1,053,714 175,000 - - - -

TOTAL EXPENDITURES 160,000$ 1,053,714$ 1,053,714$ 175,000$ -$ -$ -$ -$

NET INCOME/(LOSS) 603,334$ (584,278)$ (544,097)$ (155,000)$ 20,000$ 20,000$ 20,000$ 20,000$

ENDING FUND BALANCE 1,674,910$ 1,090,632$ 1,130,813$ 975,813$ 995,813$ 1,015,813$ 1,035,813$ 1,055,813$

IMPACT FEE FUND BALANCE

North Roadway Impact Fees 698,195$ 698,195$ 663,043$ 498,043$ 508,043$ 518,043$ 528,043$ 538,043$

South Roadway Impact Fees 976,715$ 392,437$ 467,770$ 477,770$ 487,770$ 497,770$ 507,770$ 517,770$

ROADWAY IMPACT FEE FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

69

ADOPTED BUDGET

TOWN OF LITTLE ELM

PAGE INTENTIONALLY LEFT BLANK

70

ADOPTED BUDGET

TOWN OF LITTLE ELM

CAPITAL IMPROVEMENT

PROJECT FUNDS Fiscal Year 2020 – 2021 Budget

The Capital Improvement Project Fund accounts for the acquisition, construction, or improvement of major capital facilities or projects throughout the Town of Little Elm. This dedicated Fund is used to tract the revenue and expenses during the life of each project. Projects are not necessarily completed during one budget cycle but may be carried over from one budget cycle to the next.

71

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 2,181,788$ 5,024,326$ 5,024,326$ 6,549,197$ 5,519,197$ 6,889,197$ 5,289,197$ 5,489,197$

REVENUES

Bond Proceeds -$ -$ 4,725,000$ 5,000,000$ 6,000,000$ 2,000,000$ -$ -$

Contributions 400,000 - 1,201,958 500,000 - - - -

Intergovernmental 801,772 - - - - - - -

Interest Earnings 115,022 90,000 90,000 100,000 100,000 100,000 100,000 100,000

Licenses and Permits 830,909 800,000 895,000 250,000 100,000 100,000 100,000 100,000

Transfers In 3,250,000 1,398,399 1,409,199 940,000 - - - -

TOTAL REVENUES 5,397,703 2,288,399 8,321,157 6,790,000 6,200,000 2,200,000 200,000 200,000

TOTAL FUNDS AVAILABLE 7,579,491$ 7,312,725$ 13,345,484$ 13,339,197$ 11,719,197$ 9,089,197$ 5,489,197$ 5,689,197$

EXPENDITURES

General Government 508,494$ -$ 3,095,623$ 765,000$ -$ 2,000,000$ -$ -$

Public Safety 46,825 - 517,073 - - - - 3,425,000

Community Services - - 10,800 - - - - -

Public Works Streets/Signs/Signals 144,076 4,000,000 1,982,096 4,015,000 500,000 1,800,000 - -

Culture and Recreation 1,855,770 - 1,190,695 3,040,000 4,330,000 - - -

TOTAL EXPENDITURES 2,555,164$ 4,000,000$ 6,796,287$ 7,820,000$ 4,830,000$ 3,800,000$ -$ 3,425,000$

Transfers Out - - 528,011 - - - - -

TOTAL TRANSFERS -$ -$ 528,011$ -$ -$ -$ -$ -$

TOTAL EXPENDITURES INCLUDING TRANSFERS 2,555,164$ 4,000,000$ 7,324,298$ 7,820,000$ 4,830,000$ 3,800,000$ -$ 3,425,000$

NET INCOME/(LOSS) 2,842,538$ (1,711,601)$ 996,859$ (1,030,000)$ 1,370,000$ (1,600,000)$ 200,000$ (3,225,000)$

ENDING FUND BALANCE 5,024,326$ 3,312,725$ 6,549,197$ 5,519,197$ 6,889,197$ 5,289,197$ 5,489,197$ 2,264,197$

GOVERNMENTAL CAPITAL PROJECT FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

72

ADOPTED BUDGET

TOWN OF LITTLE ELM

UTILITY FUND Fiscal Year 2020 – 2021 Budget

The Utility Fund is used to account for the operations of providing water and sewer (wastewater) services to residential and commercial customers. This is a business-enterprise fund that is self-supporting with rates and charges determined by an annual rate analysis to determine the adequacy of revenue to support operations, capital improvements and debt commitments.

UTILITY FUND REVENUE

Water Services54%

Sewer Services37%

Fees 2%

Charges for Service

6%

Interest Earnings1%

73

ADOPTED BUDGET

TOWN OF LITTLE ELM

UTILITY FUND EXPENDITURES

The following departments make up the Utility Fund

Water Operations – Personnel and water operation expenses Wastewater Collections – Personnel and wastewater operation expenses Wastewater Treatment – Personnel and operational expenses for the Town’s

wastewater treatment plant Utility Administration – Personnel who oversee water and wastewater operations Utility Billing – Personnel and operations that oversee the meter billing and

collection for water and sewer (wastewater) services

Additional Expenditures of the Utility Fund

Capital Improvement Projects – Water and Wastewater infrastructure projects Debt Service – Expenditures supporting bond payments for capital improvement

projects to support new residential and commercial connections Water Purchases – Water purchased from the North Texas Municipal Water

District for distribution by the Town Transfers – Payment in lieu of taxes for services provided by the Town

Water Operations13%

Water Purchases24%

Wastewater Collections4%

Wastewater Treatment

8%

Utility Administration

4%

Utility Billing5%

Capital Improvement Projects

4%

Debt Service20%

Transfers18%

74

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 10,728,917$ 13,329,929$ 13,329,929$ 14,503,146$ 14,323,978$ 14,197,075$ 13,903,598$ 13,105,617$

REVENUES

Water Sales 9,706,786$ 10,200,000$ 10,107,892$ 10,353,000$ 10,560,060$ 10,665,660$ 10,772,317$ 11,175,915$

Sewer Sales 6,751,975 6,952,500 6,978,194 7,022,022 7,092,245 7,163,167 7,234,800 7,379,496

Fees 607,693 564,260 419,940 487,500 452,000 437,000 432,000 427,000

Charges for Service 1,073,458 969,175 1,101,000 1,100,000 1,100,000 1,100,000 1,100,000 1,100,000

Interest Earnings 379,840 200,000 338,047 200,000 200,000 200,000 200,000 200,000

Miscellaneous 187,917 667,700 925,411 - - - - -

TOTAL REVENUES 18,707,669 19,553,635 19,870,483 19,162,522 19,404,305 19,565,827 19,739,117 20,282,411

TOTAL FUNDS AVAILABLE 29,436,586$ 32,883,564$ 33,200,413$ 33,665,668$ 33,728,283$ 33,762,902$ 33,642,715$ 33,388,028$

OPERATION EXPENDITURES

Water Operations 1,779,661$ 2,117,064$ 1,861,068$ 2,504,662$ 2,541,371$ 2,228,668$ 1,867,022$ 1,911,391$

Wastewater Collections 666,165 698,877 790,524 748,766 765,755 770,397 794,060 810,302

Wastewater Treatment 1,332,635 1,498,183 1,437,890 1,595,970 1,630,996 1,675,871 1,754,971 1,778,205

Water Administration 639,269 837,046 768,292 749,557 807,075 812,441 838,138 820,870

Utility Billing 616,897 968,115 648,530 980,174 885,483 842,128 860,669 866,425

TOTAL OPERATION EXPENDITURES 5,034,627$ 6,119,285$ 5,506,304$ 6,579,129$ 6,630,680$ 6,329,505$ 6,114,860$ 6,187,193$

WATER PURCHASES 4,456,580$ 4,865,756$ 4,647,978$ 4,717,131$ 5,084,963$ 5,589,486$ 5,992,400$ 6,052,324$

DEBT SERVICE 4,080,827$ 4,034,356$ 4,035,817$ 3,875,946$ 4,743,264$ 4,732,364$ 5,595,514$ 5,578,114$

CAPITAL 773,472$ 2,243,200$ 1,189,168$ 724,233$ 112,936$ 274,508$ 81,718$ 104,038$

Transfers Out 1,761,150$ 3,387,522$ 3,318,000$ 3,445,251$ 2,959,365$ 2,933,441$ 2,752,606$ 2,761,782$

TOTAL TRANSFER 1,761,150$ 3,387,522$ 3,318,000$ 3,445,251$ 2,959,365$ 2,933,441$ 2,752,606$ 2,761,782$

TOTAL EXPENDITURES 16,106,657$ 20,650,119$ 18,697,267$ 19,341,690$ 19,531,208$ 19,859,304$ 20,537,098$ 20,683,451$

Net Income/(Loss) 2,601,012$ (1,096,484)$ 1,173,217$ (179,168)$ (126,903)$ (293,477)$ (797,981)$ (401,040)$

ENDING FUND BALANCE 13,329,929$ 12,233,445$ 14,503,146$ 14,323,978$ 14,197,075$ 13,903,598$ 13,105,617$ 12,704,577$ AMOUNT OVER (UNDER) IN DAYS OPERATING COST 302 216 283 270 265 256 233 224

DEBT SERVICE RESERVE 3.27 3.03 3.59 3.70 2.99 2.94 2.34 2.28

UTILITY FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

75

ADOPTED BUDGET

TOWN OF LITTLE ELM

PAGE INTENTIONALLY LEFT BLANK

76

ADOPTED BUDGET

TOWN OF LITTLE ELM

SOLID WASTE FUND Fiscal Year 2020 – 2021 Budget

This fund is a business-enterprise fund and is utilities to account for the Town's Solid Waste Activities. The Town contracts Solid Waste Collection with Community Waste Disposal, Inc. CWD. The contract renewed effective February 1, 2020 and included an extension of the contract to 2025. Solid Waste rates are determined by CWD, however the Town has final approval authority.

The Town operates its own courtesy disposal collection site. In addition to these services, the fund also accounts for the Town's semiannual clean-up events as well as pay for household hazardous waste collection and disposal.

77

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 266,679$ 354,896$ 354,896$ 317,032$ 355,568$ 427,472$ 508,593$ 596,035$

REVENUES

Franchise Taxes 150,895$ 145,000$ 164,885$ 160,000$ 165,000$ 165,000$ 170,000$ 170,000$

Service Fees 2,523,443 2,535,000 2,834,597 2,842,658 2,897,661 2,955,615 2,985,171 3,001,059

Interest Earnings 9,937 8,000 6,676 7,500 10,000 10,000 10,000 10,000

Other Revenue 5,163 1,000 10,037 100 100 100 100 100

TOTAL REVENUES 2,689,438 2,689,000 3,016,195 3,010,258 3,072,761 3,130,715 3,165,271 3,181,159

TOTAL FUNDS AVAILABLE 2,956,117$ 3,043,896$ 3,371,091$ 3,327,290$ 3,428,330$ 3,558,186$ 3,673,864$ 3,777,194$

OPERATION EXPENDITURES

Solid Waste Personnel 55,818$ 70,350$ 67,644$ 69,903$ 72,111$ 73,162$ 75,513$ 76,634$

Solid Waste Services 1,933,689 1,956,690 2,187,941 2,291,339 2,315,224 2,361,903 2,386,558 2,411,494 Solid Waste Operations and Maintenance 45,714 60,423 73,531 44,480 47,523 48,528 49,758 50,616

Solid Waste Capital Outlay - 160,000 158,943 - - - - -

TOTAL OPERATION EXPENDITURES 2,035,221$ 2,247,463$ 2,488,059$ 2,405,722$ 2,434,858$ 2,483,593$ 2,511,829$ 2,538,744$

TRANSFERS

Transfers Out to General Fund 175,000$ 175,000$ 175,000$ 175,000$ 175,000$ 175,000$ 175,000$ 175,000$

Transfers Out to Streetscape Fund 391,000$ 391,000$ 391,000$ 391,000$ 391,000$ 391,000$ 391,000$ 391,000$

TOTAL TRANSFER 566,000$ 566,000$ 566,000$ 566,000$ 566,000$ 566,000$ 566,000$ 566,000$

TOTAL EXPENDITURES INCLUDING TRANSFERS 2,601,221$ 2,813,463$ 3,054,059$ 2,971,722$ 3,000,858$ 3,049,593$ 3,077,829$ 3,104,744$

Net Income/(Loss) 88,217$ (124,463)$ (37,863)$ 38,536$ 71,903$ 81,122$ 87,441$ 76,415$

ENDING FUND BALANCE 354,896$ 230,433$ 317,032$ 355,568$ 427,472$ 508,593$ 596,035$ 672,450$

SOLID WASTE FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

78

ADOPTED BUDGET

TOWN OF LITTLE ELM

WATER AND WASTEWATER

IMPACT FEES Fiscal Year 2020 – 2021 Budget

Impact Fees were established to assure the availability of funds for major capital projects needed as a result of development. The laws governing the collection and disbursement of impact fees require separate accounting and reporting of these funds. Additionally, an analysis and update of the fee structure is required every five years. Appropriations from these funds are being utilized to provide supplemental funding for eligible capital improvement projects.

79

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 1,601,420$ 2,108,348$ 2,108,348$ 2,170,786$ 1,350,508$ 1,209,598$ 1,434,598$ 1,609,598$

REVENUES

Water Impact Fees 506,928$ 252,000$ 314,438$ 250,000$ 250,000$ 225,000$ 175,000$ 125,000$

TOTAL REVENUES 506,928 252,000 314,438 250,000 250,000 225,000 175,000 125,000

TOTAL FUNDS AVAILABLE 2,108,348$ 2,360,348$ 2,422,786$ 2,420,786$ 1,600,508$ 1,434,598$ 1,609,598$ 1,734,598$

TRANSFERS

Transfers Out -$ 252,000$ 252,000$ 1,070,278$ 390,910$ -$ -$ -$

TOTAL EXPENDITURES -$ 252,000$ 252,000$ 1,070,278$ 390,910$ -$ -$ -$

Net Income/(Loss) 506,928$ -$ 62,438$ (820,278)$ (140,910)$ 225,000$ 175,000$ 125,000$

ENDING FUND BALANCE 2,108,348$ 2,108,348$ 2,170,786$ 1,350,508$ 1,209,598$ 1,434,598$ 1,609,598$ 1,734,598$

WATER IMPACT FEE FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

80

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 1,165,095$ 1,787,004$ 1,787,004$ 1,758,470$ 593,120$ 943,120$ 1,243,120$ 1,543,120$

REVENUES

Waste Water Impact Fees 621,909 415,700 387,166 400,000 350,000 300,000 300,000 250,000

TOTAL REVENUES 621,909 415,700 387,166 400,000 350,000 300,000 300,000 250,000

TOTAL FUNDS AVAILABLE 1,787,004$ 2,202,704$ 2,174,170$ 2,158,470$ 943,120$ 1,243,120$ 1,543,120$ 1,793,120$

TRANSFERS

Transfers Out - 415,700 415,700 1,565,350 - - - -

TOTAL EXPENDITURES -$ 415,700$ 415,700$ 1,565,350$ -$ -$ -$ -$

Net Income/(Loss) 1,165,095$ 1,371,304$ 1,371,304$ 193,120$ 593,120$ 943,120$ 1,243,120$ 1,543,120$

ENDING FUND BALANCE 1,787,004$ 1,787,004$ 1,758,470$ 593,120$ 943,120$ 1,243,120$ 1,543,120$ 1,793,120$

WASTE WATER IMPACT FEE FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

81

ADOPTED BUDGET

TOWN OF LITTLE ELM

PAGE INTENTIONALLY LEFT BLANK

82

ADOPTED BUDGET

TOWN OF LITTLE ELM

CAPITAL IMPROVEMENT

PROJECT FUNDS Fiscal Year 2020 – 2021 Budget

The Capital Improvement Project Fund accounts for the acquisition, construction, or improvement of major capital facilities or projects throughout the Town of Little Elm. This dedicated Fund is used to tract the revenue and expenses during the life of each project. Projects are not necessarily completed during one budget cycle but may be carried over from one budget cycle to the next.

83

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE -$ -$ -$ -$ 14,507,730$ 7,912,462$ 11,714,365$ 7,202,401$

REVENUES

Debt Proceeds -$ -$ 14,850,000$ -$ 11,700,000$ -$ -$

Transfers In - 1,168,000 1,518,000 4,270,879 501,020 - - -

TOTAL REVENUES - 1,168,000 1,518,000 19,120,879 501,020 11,700,000 - -

TOTAL FUNDS AVAILABLE -$ 1,168,000$ 1,518,000$ 19,120,879$ 15,008,750$ 19,612,462$ 11,714,365$ 7,202,401$

EXPENDITURES

Water Capital Improvement Projects -$ 700,000$ 1,050,000$ 1,651,678$ 3,364,148$ 4,161,911$ 3,366,964$ -$ Wastewater Capital Improvement Projects - 468,000 468,000 2,961,471 3,732,140 3,736,186 1,145,000 6,772,025

TOTAL EXPENDITURES -$ 1,168,000$ 1,518,000$ 4,613,149$ 7,096,288$ 7,898,097$ 4,511,964$ 6,772,025$

Net Income/(Loss) -$ -$ -$ 14,507,730$ (6,595,268)$ 3,801,903$ (4,511,964)$ (6,772,025)$

ENDING FUND BALANCE -$ -$ -$ 14,507,730$ 7,912,462$ 11,714,365$ 7,202,401$ 430,376$

WATER / WASTEWATER CAPITAL IMPROVEMENT FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

84

ADOPTED BUDGET

TOWN OF LITTLE ELM

VEHICLE EQUIPMENT REPLACEMENT FUND

FY 2020-2021 BUDGET

The Vehicle Equipment Replacement Fund (VERF) operates under the principle that the funds are collected and segregated, over a period of time, to cover the replacement cost of existing vehicles and equipment.

85

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 2,500,723$ 3,297,769$ 3,297,769$ 3,584,868$ 4,082,552$ 4,812,176$ 5,023,958$ 4,650,926$

REVENUES

Intergovernmental Transfers 1,546,294$ 2,030,420$ 2,030,420$ 1,415,848$ 1,534,937$ 1,624,373$ 1,689,132$ 1,734,085$

Interest Earnings 65,352 - 49,660 50,000 50,000 50,000 50,000 50,000

Auction Proceeds - - - 13,000 - - - -

TOTAL REVENUES 1,611,646 2,030,420 2,080,080 1,478,848 1,584,937 1,674,373 1,739,132 1,784,085

TOTAL FUNDS AVAILABLE 4,112,369$ 5,328,189$ 5,377,849$ 5,063,716$ 5,667,489$ 6,486,549$ 6,763,090$ 6,435,011$

EXPENDITURES

Capital Expenditures 814,600 1,911,021 1,792,981 981,163 855,313 1,462,591 2,112,164 1,575,232

TOTAL EXPENDITURES 814,600$ 1,911,021$ 1,792,981$ 981,163$ 855,313$ 1,462,591$ 2,112,164$ 1,575,232$

NET INCOME/(LOSS) 797,046$ 119,399$ 287,099$ 497,684$ 729,624$ 211,782$ (373,032)$ 208,853$

ENDING FUND BALANCE 3,297,769$ 3,417,168$ 3,584,868$ 4,082,552$ 4,812,176$ 5,023,958$ 4,650,926$ 4,859,779$

VEHICLE AND EQUIPMENT REPLACEMENT FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

86

ADOPTED BUDGET

TOWN OF LITTLE ELM

FIRE EQUIPMENT REPLACEMENT FUND Fiscal Year 2020 – 2021 Budget

The Fire Equipment Replacement Fund (FERF) operates under the principle that the funds are collected and segregated, over a period of time, to cover the replacement cost of existing fire equipment.

87

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 121,581$ 118,874$ 118,874$ 192,875$ 280,727$ 374,583$ 454,892$ 545,626$

REVENUES

Intergovernmental Transfers 231,570$ 198,834$ 198,834$ 202,923$ 202,712$ 203,961$ 205,038$ 206,034$

Interest Earnings 1,577 700 2,921 1,000 1,000 1,000 1,000 1,000

TOTAL REVENUES 233,147 199,534 201,755 203,923 203,712 204,961 206,038 207,034

TOTAL FUNDS AVAILABLE 354,728$ 318,408$ 320,629$ 396,798$ 484,439$ 579,544$ 660,930$ 752,660$

EXPENDITURES

Fire Equipment 235,854 136,093 127,754 116,071 109,856 124,652 115,304 200,792

TOTAL EXPENDITURES 235,854$ 136,093$ 127,754$ 116,071$ 109,856$ 124,652$ 115,304$ 200,792$

NET INCOME/(LOSS) (2,707)$ 63,441$ 74,001$ 87,852$ 93,856$ 80,309$ 90,734$ 6,242$

ENDING FUND BALANCE 118,874$ 182,315$ 192,875$ 280,727$ 374,583$ 454,892$ 545,626$ 551,868$

FIRE EQUIPMENT REPLACEMENT FUNDRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

88

ADOPTED BUDGET

TOWN OF LITTLE ELM

COMMUNITY DEVELOPMENT CORPORATION

Fiscal Year 2020 – 2021 Budget

The Little Elm Community Development Corporation (CDC) is a 4B Corporation established under the Development Corporation Act of 1979. The corporation is tasked with the promotion and development of new or expanded business enterprises, parks, and other community projects. The CDC derives funding from a one-quarter cent sales tax collected in the Town of Little Elm. The CDC was established in October 2007 and has an independent board appointed by Town Council to govern the corporation.

The CDC's focus is the planning and growth of the parks and recreation system by applying the one-quarter cent sales tax towards capital projects that benefit parks and other related projects.

89

ActualAmended

BudgetEstimated

BudgetProposed

Budget

2018 - 2019 2019 - 2020 2019 - 2020 2020 - 2021 2021 - 2022 2022 - 2023 2023 - 2024 2024 - 2025

BEGINNING FUND BALANCE 298,805$ 1,294,661$ 1,294,661$ 2,302,959$ 2,905,477$ 4,053,836$ 5,213,806$ 6,406,177$

REVENUES

Sales and Use Taxes 1,057,767$ 1,047,033$ 1,162,687$ 1,183,618$ 1,204,458$ 1,226,070$ 1,248,472$ 1,265,041$

Interest Earnings 9,608 3,000 10,722 10,000 10,000 10,000 10,000 10,000

TOTAL REVENUES 1,067,375 1,050,033 1,173,409 1,193,618 1,214,458 1,236,070 1,258,472 1,275,041

TOTAL FUNDS AVAILABLE 1,366,180$ 2,344,694$ 2,468,070$ 3,496,577$ 4,119,936$ 5,289,906$ 6,472,277$ 7,681,218$

EXPENDITURES

Community Services 71,519$ 165,100$ 165,111$ 591,100$ 66,100$ 76,100$ 66,100$ 78,100$

TOTAL EXPENDITURES 71,519$ 165,100$ 165,111$ 591,100$ 66,100$ 76,100$ 66,100$ 78,100$

Transfers Out 914,980 645,611 645,611 640,900 910,800 915,250 913,325 898,200

TOTAL TRANSFERS 914,980$ 645,611$ 645,611$ 640,900$ 910,800$ 915,250$ 913,325$ 898,200$

TOTAL EXPENDITURES INCLUDING TRANSFERS 986,499$ 810,711$ 810,722$ 1,232,000$ 976,900$ 991,350$ 979,425$ 976,300$

Net Income/(Loss) 80,876$ 239,322$ 362,687$ (38,382)$ 237,558$ 244,720$ 279,047$ 298,741$

ENDING FUND BALANCE 1,294,661$ 2,179,594$ 2,302,959$ 2,905,477$ 4,053,836$ 5,213,806$ 6,406,177$ 7,603,118$

COMMUNITY DEVELOPMENT CORPORATIONRevenue, Expenditures, and Change in Fund Balance

Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

90

ADOPTED BUDGET

TOWN OF LITTLE ELM

DEBT SERVICE OBLIGATION SUMMARY Fiscal Year 2020 – 2021 Budget

This summary represents the governmental and utility system supported debt principal and interest.

91

Bond Series Obligation Maturity Date Callable Date Principal InterestTotal Outstanding

9/30/2020P&I Due Fiscal Year

2020-2021

2012 General Obligation Refunding Bonds - $6.95M 8/1/2024 8/1/2021 905,000$ 44,525$ 949,525$ 450,025$

2012A General Obligation Refunding Bonds - $2.735M 8/1/2027 8/1/2022 1,395,000 119,235 1,514,235 214,156

2013 Certificates of Obligations - $6M (CDC) 8/1/2033 8/1/2023 4,270,000 1,029,950 5,299,950 408,000

2013A Certificates of Obligations -$3M 8/1/2033 8/1/2023 2,200,000 604,025 2,804,025 214,700

2014 General Obligations Refunding - $4.550M 8/1/2029 8/1/2024 1,310,000 250,925 1,560,925 175,550

2014 Tax Note - $1.990M 8/1/2021 - 250,000 4,425 254,425 254,425

2015 Certificates of Obligations - $9.655M 2/1/2036 2/1/2025 8,105,000 2,125,244 10,230,244 643,388

2016 General Obligations Refunding - $6.725M 8/1/2027 8/1/2025 4,400,000 462,081 4,862,081 739,869

2018 Certificates of Obligations - $15.460M 2/1/2038 2/1/2028 11,810,000 4,260,928 16,070,928 894,856

2019 General Obligations Refunding - $7.230M 8/1/2029 - 6,795,000 1,146,200 7,941,200 855,800

2019 Certificiates of Obligations - $6.640M 2/1/2039 2/1/2028 6,370,000 2,251,600 8,621,600 455,475

2020 General Obligations Refunding - $5.725M 8/1/2030 - 5,560,000 334,152 5,894,152 615,048

2020 Certificates of Obligations - $4.275M 8/1/2040 8/1/2029 4,275,000 1,190,938 5,465,938 278,813

57,645,000$ 13,824,227$ 71,469,227$ 6,200,104$

2012 General Obligation Refunding Bonds - $6.95M 8/1/2024 8/1/2021 1,150,000$ 86,225$ 1,236,225$ 308,125$

2012 Certificate of Obligations - $6.0M 8/1/2027 8/1/2022 3,160,000$ 288,784$ 3,448,784$ 477,876$

2013 General Obligation Refunding Bonds - $3.040M 9/1/2025 9/1/2022 1,460,000 106,556 1,566,556 247,181

2014 General Obligations Refunding - $4.550M 8/1/2029 8/1/2024 1,650,000 307,500 1,957,500 222,125

2016 Certificate of Obligations - $7.640M 8/1/2036 8/1/2025 6,580,000 1,823,738 8,403,738 526,344

2017 Certificate of Obligations - $11.830M 8/1/2037 8/1/2026 10,300,000 3,261,513 13,561,513 796,638

2017 General Obligations - $13.645M 8/1/2034 8/1/2026 12,320,000 3,367,588 15,687,588 1,120,875

2020 General Obligations Refunding - $5.725M 8/1/2030 - 165,000 1,782 166,782 166,782

36,785,000$ 9,243,685$ 46,028,685$ 3,865,946$

94,430,000$ 23,067,912$ 117,497,912$ 10,066,049$ TOTAL DEBT OBLIGATIONS

TOTAL DEBT FOR PRIMARY GOVERNMENT (TAX SUPPORTED)

OUTSTANDING DEBT OBLIGATIONS

PRIMARY GOVERNMENT

SELF-SUPPORTING DEBT OF THE UTILITY

TOTAL SELF-SUPPORTING DEBT (UTILITY)

ADOPTED BUDGET

TOWN OF LITTLE ELM

92

ADOPTED BUDGET

TOWN OF LITTLE ELM

APPENDICES Fiscal Year 2020 – 2021 Budget

Budget Planning Calendar

Budget Process

Town-wide Approved Supplements

Capital Improvement Project Planning List

Ordinance 1573 - Budget Adoption

Ordinance 1572 - Tax Rate Adoption

93

ADOPTED BUDGET

TOWN OF LITTLE ELM

Budget Planning Calendar Fiscal Year 2020 – 2021

Date Activity January 28 Town Council Budget Kickoff Workshop

January 28 Town Council Budget Kickoff Workshop

February 4 VERF – Finance provides replacement list to fleet committee

February 18 Budget Kickoff Meeting – All Departments March 2 M budget opened for Directors to update FY2021-2025 budgets and FY 2019-2020 estimates.

March 3 Staffing Requests submitted, reviewed and approved by Town Manager by this date

March 30 Fleet Replacement Committee Meeting – Overview/ Update Fleet Schedule (VERF), review/recommend Supplemental requests for FY2021-2025 Budgets

April 10 All Budget Data (FYE estimates and 5 year proposed) to be completed by Directors in M budget.

May 2 Council Election – 2 open seats

June 15-19 Town Manager and Directors – Management Team Open Discussion on Budgeted Priorities and Plans (all directors and managers) – Public Safety EOC

June 23 5-Year CIP Project Planning Meeting

July 8 CDC Budget Meeting

July 25 Received Certified Appraisal Rolls from Chief Appraiser – received Certified Estimates

July 30 - August 3 Finance Department calculates Tax Rates/ Levy

August 4 Regular Council Meeting – Present Town Manager’s Proposed Budget - Council determine tax rate; accepts certified tax rolls; schedule public hearings; discuss budget and tax rates

August 5 Town Manager and Finance – Present Budget to Council in Work Session

August 14 Last day to File Budget with Town Secretary and post on Town’s website. Publish Notices of public hearings for tax rate and budget on website.

August 18

Council Meeting • TIRZ 4, and TIRZ 6 budget authorization• Take Valencia PID Assessment update and Roll, Rudman PID Assessment update and Roll,Lakeside Estates PID Assessment and Roll, and Hillstone Pointe PID Assessment and Roll

September 1 Council Meeting • TIRZ 3 budget authorization

September 2 Publish Notice of Budget Hearing LGC102.0065 not later than 10 days before or earlier prior to the hearing.

September 9 Publish Notice of Proposed Tax Rate one –quarter page notice with 24 point or larger type with Denton Chronicle (Completed by 30 days after certified received.) Also place on website until Town adopts Tax rate. Must be published 7 days before hearing.

September 15 Council Meeting • Public Hearing Budget• Adopt Budget and Tax Rate

September 29 Council Meeting • Public Hearing Tax Rate• Adopt Tax Rate

94

Comprehensive Financial Management Policy Updated July 2020

ADOPTED BUDGET

TOWN OF LITTLE ELM

II. General Budget Policies

The Town of Little Elm, Texas financial policies set forth the basic framework for the fiscal management of the Town. These policies were developed within the parameters established by applicable provisions of the Texas Local Government Code and the Town of Little Elm Town Charter. The policies are to be reviewed on an annual basis and modified to accommodate changing circumstances or conditions.

A. Annual Budget

1. The fiscal year of the Town shall begin on the first day of October each year and shall end onthe thirtieth day of September of each year.

2. On or before the fifteenth day of August of each year, the Town Manager shall submit to theTown Council a balanced budget of the revenues of the Town and the expense of conductingthe affairs thereof for the ensuing fiscal year. The Town is committed to a balanced operatingbudget under normal circumstances. Any deviations from a balanced budget are to bepresented with full disclosure and justification. Fund Balance (reserves) can be used tobalance the budget (see section on Fund Balance). The Budget as submitted by the TownManager shall be legally adopted for all governmental fund types of the Town by Ordinance.

3. The Town Manager leads the Budget Process with the Mayor and Town Council, ChiefFinance Officer, Town Departments, and the public participating during various stages of thebudget process. Throughout the process, the Town Manager provides the Town’s DepartmentHeads with policy direction in formulating the budget and discusses areas of concern withTown Council.

4. Role of Department Heads and Directors. Each Department Head and Director is responsiblefor the effective, efficient, and economical use of all resources made available to his or herdepartment or division. After direction from the Town Manager, all department and divisionmanagers are given formal budget packets to complete electronically. Once packets andbudgets are submitted electronically to the Finance Department, the Chief Finance Officerand Town Manager reviews the Department baseline requests and will determine whetherchanges are required based on funds availability and priorities. Interviews with DepartmentHeads and Directors are conducted with the Town Manager and Finance to review budgetrequests and justifications for new programs or expansion of programs. Department Headsand Directors must present with their budget submissions base budget justifications alongwith supplemental request explanations for operational expenses as well as requests foradditional personnel. These requests are weighed against financial constraints.

5. Town Manager’s Proposed Budget. Once the budget reviews are completed and revisionsare made to the requested budget, the result becomes the Town Manager’s proposed budgetof programs and services. The Town Manager’s proposed budget is filed with the TownSecretary and distributed to Town Council to set in motion work sessions, public hearings andultimate approval.

The Town Manager’s proposed budget must be an itemized estimate (by line-item) of theexpense of conducting each department, division, office and/or fund. The Town Manager’sproposed budget must be submitted to Town Council with a concise summary of the budgetsummarizing major changes in priorities or service levels from current years and the factorsleading to those changes. Additionally, the Proposed Budget must include:

95

Comprehensive Financial Management Policy Updated July 2020

ADOPTED BUDGET

TOWN OF LITTLE ELM

a. Priorities and key issues for the new budget periodb. Major financial factors and trends affecting the budgetc. Significant changes in revenue functions including property taxesd. Current and future debt obligationse. Rate changes for Utilities as well as other fees and charges summarizedf. Significant use of or increase in unreserved fund balances.g. Provide for financial summary at the Fund level that reflects at least a three-year

period, including prior year actual, current year budget and/or estimated current yearactual, and proposed budget.

6. Final Budget. The budget for all funds shall be balanced in that the appropriations from eachfund shall not exceed the resources available for the fiscal year. These resources includeestimated revenues and the unreserved balance in the fund at the beginning of the year. Thereshall be a least one public hearing on the operating budget prior to adoption of the budget byordinance. The Town Council can amend the Town Manager’s proposed budget prior toadoption by ordinance. The Budget shall be approved by ordinance prior to the last day of thefiscal year with or without amendment.

7. Tax Levy. The proposed budget shall contain a suggested tax rate to be levied to support theoperational plan of expenditures and debt requirements for the ensuing fiscal year. Allapplicable laws pertaining to the adoption of the tax rate must be complied with including theadherence to the Truth-in-Taxation time table and events as outlined by the State Comptrollerin the Truth-in-Taxation Handbook.

a. The applied property tax rate will not exceed the no-new-revenue tax rate by morethan 3.5% or more commonly referred to as the “voter-approval” tax rate unless publichearings and notices are done in compliance with Property Tax Codes.

b. The Town will strive to maintain the percentage of the tax rate allocated to the generalfund at a minimum of 65%. Conversely, the allocation of the tax rate for debt purposeswill be no more than 35%.

B. Budget Administration

1. All expenses of the Town shall be made in accordance with the adopted annual budget oras legally amended.

2. The legal level of budgetary control is at the fund level. The Town Manager is authorizedto transfer budgeted amounts between departments within any fund. Any revision(s) thatincreases the total expenditures of any fund greater than the original budget must beapproved by ordinance of Town Council.

3. Transfers between expenditure accounts (line-items) in one department or division mayoccur with the approval of the Chief Finance Officer. Transfers between operatingdepartments may occur with the approval of the Town Manager and Chief Finance Officerprovided that a department’s total budget is not changed. Transfers between funds mustbe accomplished by budget amendment approved by ordinance of the Town Council.However, budgeted operating transfers are authorized within the authority given in theannual budget ordinance.

4. Budget Delivery and Execution. After the budget and tax levy are adopted by TownCouncil by ordinances, the Finance Department distributes the adopted budget, capital

96

Comprehensive Financial Management Policy Updated July 2020

ADOPTED BUDGET

TOWN OF LITTLE ELM

outlay schedules and personnel schedules denoting the expenditure and staffing authority that each department has in order to carry out its mission and provide services to the Town. The Finance Department monitors revenues and expenditures through the fiscal year for reportable conditions of major fluctuations in revenues and/or expenditures.

No money shall be drawn from the Town Depository, nor shall any obligation for the expenditure of money be incurred, except in pursuance of appropriations made by the Town Council. At the close of each fiscal year, the unencumbered balance of each appropriation shall revert to the fund from which it was appropriated and shall be subject to future appropriations.

5. Budget Reports. The Finance Department will generate reports to the Town Manager andDepartments on a routine basis or upon request. The Finance Department will preparequarterly budget reports to Town Council identifying and highlighting sources and uses offunds in a summary format with narrative explanations of significant changes andfluctuations.

C. Other Budget Initiatives

1. The Town shall establish and maintain a Capital Reserve Fund to be used to renovate,repair and replace fixed assets of the Town, including public buildings, streets, stormsewers, park facilities and water and wastewater improvements. The Town shall establishand maintain an Equipment Replacement and Reserve Fund to be used to replacemovable fixed assets of the Town, including vehicles, off road equipment, and otherequipment with an average life of more than three years and valued over $10,000. Thereshall be established and maintained, within the Capital Reserve Fund and EquipmentReplacement and Reserve Fund such accounts as shall be deemed appropriate by theTown Manager as evidenced in the Town’s annual budget. The Capital Reserve Fund andEquipment Replacement and Reserve Fund shall be funded with contributions made fromnonrecurring revenues as available and other revenues detailed in the budget submittedto the Town Council by the Town Manager.

2. The Capital Budget or Capital Improvement Plan (CIP) is a separate and distinct processof planning and budgeting but connects to the operating budget for future potential ofadding operational expenditures (see section below on Capital Project Expenditures). Theannual budget will be developed to fund services of benefit for just one or two years andexpenditures with long-term benefits will be put into a Capital Budget which takes a multi-year perspective. The Town Manager will submit as an appendix to the Town’s operationalbudget a Capital Budget outlining capital improvement projects. The Town’s CapitalImprovement Plan is developed as a five-year plan for both Utility and GeneralGovernmental purposes.

III. Revenue Policies

1. The Town will strive to obtain franchise agreements that incorporate a franchise or rentalfee with all public utilities (including municipally owned utilities). The fee structure will besimilar to other cities in the area and allowed by the Public Utility Commission. In additionthe Town will seek the “most favored nations’ clause” in its franchise agreements withpublic utilities operating within the Town.

2. The Town will strive to maintain revenue diversification in order to improve the ability t o

97

Comprehensive Financial Management Policy Updated July 2020

ADOPTED BUDGET

TOWN OF LITTLE ELM

handle fluctuations in individual sources such as property taxes, sales and other taxes. Fees and Charges for services will be reviewed annually to the extent to which they cover the cost of the service being provided.

3. The Town will pursue an aggressive policy of collecting all moneys due to the Town.

4. The Town will continue an aggressive program to reduce the level of delinquent taxes.The minimum collection rate objective is 98%.

5. The Town will strive to maintain total delinquent taxes outstanding at an aggregate levelnot to exceed 10% of the current tax levy.

6. Tax exemptions presently allowed by the Town will be monitored to include the Senior TaxCeiling and the 65 year old and disabled person’s homestead exemption. Additionalresidential or non-profit property exemptions must be approved by the Town Council.

98

Department Supplemental Package One-Time Request

Costs Recurring Request

Cost Revenue / Off-

Sets Total Cost FY 2022 FY 2023 FY 2024 FY 2025 FTEs

NCIC/TCIC Implementation - - - - 20,000 - - -

Virtual Court - 7,800 - 7,800 7,800 7,800 7,800 7,800

Town Hall Remodel 765,000 - - 765,000 - - - -

Financial Software 272,825 61,000 - 333,825 61,000 61,000 61,000 61,000

Implementation Consultant 75,000 - - 75,000 - - - -

Library Services Help Now Brainfuse Online Tutoring Software - 4,200 4,200 - 4,200 4,200 4,200 4,200

Development Services Special Planning Areas 50,000 - - 50,000 - - - -

Engineering Construction Review 15,000 - - 15,000 - - - -

Code Mosquito Testing Outsourcing - 30,000 - 30,000 30,000 30,000 30,000 30,000

Grande Internet and TLS Connection Upgrade - 16,800 - 16,800 16,800 16,800 16,800 16,800

Secondary Internet 4,000 - - 4,000 500 500 500 500

Phone System Upgrade 130,000 - - 130,000 2,000 2,000 2,000 2,000

Datto Offsite Backup & Ransomware Protection 36,026 - - 36,026 36,026 800 800 800

Dual Factor Authentication - 18,000 - 18,000 18,000 18,000 18,000 18,000

Recreation Center Switch 6,557 - - 6,557 - - - -

Upgrade Access Control for Town Buildings 120,000 - - 120,000 5,000 5,000 5,000 5,000

Town Building Cameras 15,928 - - 15,928 400 400 400 400

Frisco ISD SRO Officer 18,300 88,868 88,868 18,300 - - - - 1

Two Full-Time Detention Officers 1,845 104,992 - 106,837 110,241 115,753 121,541 127,618 2

Dispatch Software 947,546 - - 947,546 96,376 96,376 96,376 96,376

City of Denton Dispatch - 1,221,298 - 1,221,298 686,838 702,070 724,759 733,489

Market Adjustment Police Pay 528,355 - - 528,355 344,711 165,522 354,764 162,317

Patrol Radio Charging Stations 3,150 - - 3,150 - - - -

Three Tahoes (Previously Budgeted in FY 2020) 216,787 - - 216,787 43,357 43,537 43,537 43,537

Outfitting of PD Offices at Frisco Ranch 30,100 - - 30,100 - - - -

Northwest Personnel Expansion Contingency - - - - - 200,000 400,000 600,000

Northwest Police Equipment Expansion Contingency - - - - - - - 250,000

Animal Truck 48,000 - - 48,000 6,100 6,100 6,100 6,100

Shade Structure for Outdoor Dog Runs 21,000 - - 21,000 - - - -

Wheel Lifts for Medium and Heavy Duty Trucks 46,290 - - 46,290 5,000 5,000 5,000 5,000

Tire Machine and Wheel Balancer - - - - - 17,047 1,705 1,705

Animal Shelter Dog Run for Quarantined Dogs 15,000 - - 15,000 - - - -

Brent Warning Siren Relocation and Upgrade 23,000 - - 23,000 - - - -

Fire Station 3 Permanent Lighting 4,200 - - 4,200 - - -

Fire Station 2 Grade Work 25,000 - - 25,000 - - - -

Recreation Center Air Curtain 3,500 - - 3,500 - - - -

Touchless doors for Rec Center 20,000 - - 20,000 - - - -

Finance

Fiscal Year 2020-2021 Budget Approved Supplementals

Proposed General Fund Supplemental FundingFiscal Year 2021 Planning Years

Municipal Court

IT Services

Animal Services

Fleet Services

Facility Maintenance

Police Department

ADOPTED BUDGET

TOWN OF LITTLE ELM

99

Fiscal Year 2020-2021 Budget Approved Supplementals

Department Supplemental Package One-Time Request

Costs Recurring Request

Cost Revenue / Off-

Sets Total Cost FY 2022 FY 2023 FY 2024 FY 2025 FTEs

Street Light Maintenance (Future Census Population) - - - - 250,000 250,000 250,000 250,000

Contract Signs and Signals Maintenance - 88,044 - 88,044 88,044 88,044 88,044 88,044

Updating Street Lights to LED Lights - 40,000 - 40,000 40,000 40,000 40,000 40,000

Buoys for Swim Beach 11,000 - - 11,000 - - - -

Gear Lockers 6,000 - - 6,000 - - - -

Park Maintenance Academy 5,000 - - 5,000 5,000 - - -

Record Management System Software 5,155 20,351 7,353 18,153 12,998 12,998 12,998 12,998

Video Laryngoscope 10,950 - - 10,950 2,080 2,080 2,080 2,080

Full-Time Public Safety Analyst - - - - 81,609 81,965 86,013 90,264 1

Critical Incident Stress Management Services - 12,810 - 12,810 12,810 12,810 12,810 12,810

Cardio Workout Equipment 13,100 - - 13,100 - - - -

VES Training 4,200 - - 4,200 - - - -

Hydraulic Tool Replacement 25,185 - - 25,185 1,700 1,700 1,700 1,700

Northwest Personnel Expansion Contingency - - - - - - 1,000,000 2,000,000

Northwest Fire Equipment Expansion Contingency - - - - - - - 250,000

Conversion of Studio 1 to boutique Training Studio 25,000 - - 25,000 - - - -

WI-FI Gym Control System 15,000 - - 15,000 - - - -

3,562,999 1,714,163 100,421 5,176,741 1,988,590 1,987,502 3,393,927 4,920,538 4

Rec Programming

Public Works / Streets

Parks

Proposed General Fund Supplemental Funding ContinuedFiscal Year 2021 Planning Years

Fire Department

General Fund Total

ADOPTED BUDGET

TOWN OF LITTLE ELM

100

Fiscal Year 2020-2021 Budget Approved Supplementals

Department Supplemental Package One-Time Request

Costs Recurring Request

Cost Revenue / Off-

Sets Total Cost FY 2022 FY 2023 FY 2024 FY 2025 FTEs

Water Quality Technician 35,140 55,192 - 90,332 59,141 62,039 65,081 68,276 1

Meter Upgrade (FW Annexation) 340,500 - - 340,500 346,000 11,000 11,000 11,000

Waste Water Treatment Solid Waste Driver/Attendant 800 52,993 - 53,793 55,612 58,363 61,251 64,284 1

Waste Water Lift Station Maintenance 30,000 - - 30,000 27,000 - - -

Upgrade Replacement (Generator & Vacuum Machine) 122,000 - - 122,000 29,777 - - -

Utility Access Management Plan 300,000 - 300,000 - - - -

Financial / Billing Software 148,555 32,500 - 181,055 32,500 32,500 32,500 32,500

Billing (FW Annexation) - 80,500 - 80,500 86,000 11,000 11,000 11,000

976,995 221,185 - 1,198,180 636,030 174,902 180,832 187,060 2

Department Supplemental Package One-Time Request

Costs Recurring Request

Cost Revenue / Off-

Sets Total Cost FY 2022 FY 2023 FY 2024 FY 2025 FTEs

Storm Drainage Operations Skidsteer CAT 259D3 Wide Tracks 67,901 - - 67,901 4,527 4,527 4,527 4,527

67,901 - - 67,901 4,527 4,527 4,527 4,527 0

Department Supplemental Package One-Time Request

Costs Recurring Request

Cost Revenue / Off-

Sets Total Cost FY 2022 FY 2023 FY 2024 FY 2025 FTEs

Replacement of Seasonal Banners 7,500 - 7,500 7,500 7,500 7,500 7,500

Utility Box Wraps 13,590 - - 13,590 - - - -

Sponsorship of July Jubilee - 30,000 30,000 30,000 30,000 30,000 30,000

Placemaking Monuments 65,000 - - 65,000 - - - -

Lakefront Lighting (Stage 4) 50,000 - - 50,000 - - - -

128,590 37,500 - 166,090 37,500 37,500 37,500 37,500 0Lakefront TIRZ 3 Total

Lakefront District (TIRZ 3)

Proposed Utility Fund Supplemental FundingFiscal Year 2021 Planning Years

Water Operations

Capital Outlay

Utility Billing

Utility Fund Total

Proposed TIRZ 3 Fund Supplemental FundingFiscal Year 2021 Planning Years

Storm Drainage Fund Supplemental FundingFiscal Year 2021 Planning Years

Storm Drainage Fund

ADOPTED BUDGET

TOWN OF LITTLE ELM

101

Fiscal Year 2020-2021 Budget Approved Supplementals

Department Supplemental Package One-Time Request

Costs Recurring Request

Cost Revenue / Off-

Sets Total Cost FY 2022 FY 2023 FY 2024 FY 2025 FTEs

West Side Interconnection Improvements - - - - 390,910

West Side Interconnection Design/Agreements 33,000 - - 33,000 - - - -

CIP Westside Pressure Study 97,500 - - 97,500 - - - -

Impact Fee Update 350,000 - - 350,000 - - - -

King Road Utility Work 589,778 - - 589,778 - - - -

1,070,278 - - 1,070,278 390,910 - - - 0

Department Supplemental Package One-Time Request

Costs Recurring Request

Cost Revenue / Off-

Sets Total Cost FY 2022 FY 2023 FY 2024 FY 2025 FTEs

King Road Utility Work 194,350 - - 194,350 - - - -

WWTP Lab Building Expansion 225,000 - - 225,000 - - - -

Step Screen 496,000 - - 496,000 - - - -

WWTP UV Module Replacement 650,000 - - 650,000 - - - -

1,565,350 - - 1,565,350 - - - - 0

Department Supplemental Package One-Time Request

Costs Recurring Request

Cost Revenue / Off-

Sets Total Cost FY 2022 FY 2023 FY 2024 FY 2025 FTEs

Landscape Fund Wayfinding Signage Project 315,000 - - 315,000 315,000 - - -

315,000 - - 315,000 315,000 - - - 0

Department Supplemental Package One-Time Request

Costs Recurring Request

Cost Revenue / Off-

Sets Total Cost FY 2022 FY 2023 FY 2024 FY 2025 FTEs

CDC Fund Aquatic Center Enhancement 125,000 - - 125,000 - - - -

125,000 - - 125,000 - - - - 0

7,744,212 1,972,848 100,421 9,616,639 3,368,030 2,199,904 3,612,259 5,145,098 6

Proposed Landscape Fund Supplemental Funding

Proposed Water Impact Fee Fund Supplemental FundingFiscal Year 2021 Planning Years

Water Impact Fee Fund Total

Proposed Waste Water Impact Fee Fund Supplemental FundingFiscal Year 2021 Planning Years

Waste Water Impact Fees

Waste Water Impace Fee Fund Total

Water Impact Fees

Water Impact Fees

Fiscal Year 2021 Planning Years

Landscape Fund Total

Proposed Community Corporation Supplemental Funding

Fiscal Year 2021 Planning Years

CDC Fund Total

Proposed Supplemental Total

ADOPTED BUDGET

TOWN OF LITTLE ELM

102

Fiscal Year 2020-2021 Budget Approved Supplementals

Department Supplemental Package One-Time Request

Costs Recurring Request

Cost Revenue / Off-

Sets Total Cost FY 2022 FY 2023 FY 2024 FY 2025 FTEs

Parks Pet Waste Removal at Dog Park - 18,720 - 18,720 18,720 18,720 18,720 18,720

Fire Department Command Vehicle 655,793 - - 655,793 50,446 50,446 50,446 50,446

655,793 18,720 - 674,513 69,166 69,166 69,166 69,166 0Total Cut Proposed Supplemental Funding

Cut Proposed Supplemental RequestsFiscal Year 2021 Planning Years

ADOPTED BUDGET

TOWN OF LITTLE ELM

103

ADOPTED BUDGET

TOWN OF LITTLE ELM

PAGE INTENTIONALLY LEFT BLANK

104

PROJECT Prior Years FY 2019-2020 FY 2020-2021 FY 2021-2022 FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2026 - 2031 PLANNING YEARS

TOTAL PROJECT

King Road 3,238 - 1,000,000 800,000 1,803,238

Button Street 59,113 1,108,399 1,167,512

French Settlement 191,753 2,834,326 3,026,078

Contract Street Maintenance (Fund 715 & 112-50) 1,482,079 1,648,414 1,085,000 1,500,000 1,650,000 1,650,000 1,650,000 8,250,000 18,915,493

2931 Connector (FM 720 to FM 2931 Ext.) 6,618,110 6,618,110

Fishtrap 1,294,030 1,294,030

North Oak Grove Parkway 1,501,966 1,501,966

Gammon Road 2,394,079 2,394,079

Woodrow Circle 515,000 515,000

TIRZ 3 Parking Lot 3,330,000 3,330,000

Town Hall Parking Lot Expansion/Shade Structure 175,099 175,000 350,099 Subtotal 1,736,183 5,766,237 6,105,000 2,300,000 1,650,000 1,650,000 1,650,000 20,058,185 40,915,605

Signalization Projects 332,379 14,300 346,670 693,349

US 380 Lighting 175,000 175,000

US 380 Plan Revisions 60,000 60,000

423 Traffic Signal 450,000 450,000

Oakgrove Parkway North Lighting 1,000,000 1,000,000

TIRZ 5 Traffic Signals 500,000 500,000

Dickson Lane Signal 415,000 415,000 Subtotal 332,379 429,300 685,000 500,000 1,346,670 3,293,349

Lakefront Trails 3,631,781 3,631,781

McCord Park Splash Pad 2,485,631 14,479 2,500,110

McCord Park Dog Park 1,009,358 807,206 1,816,564

McCord Park Dog Park Playground Expansion 150,000 150,000

McCord Park Trail 9,626 1,596 11,222

Hartsbranch Trail 2,463,509 198,593 2,662,102

Brent Elementary Trail 469,825 469,825

Cottonwood Park Improvements 400,000 4,000,000 17,600,000 22,000,000

Little Elm Park Camping Plan 11,264,458 11,264,458

Little Elm Park Kayak/Surf Structure 50,000 50,000

Little Elm Park Parking Expansion 540,000 540,000

Little Elm Park Trash Management System 80,000 80,000

Little Elm Pedestrian Bridge 50,000 250,000 300,000

Trails Regional Connections 1,000,000 1,000,000

Lakefront Park 2,000,000 2,000,000

TxDOT Green Ribbon 3,300,000 3,300,000 Subtotal 10,069,729 1,021,874 2,990,000 7,630,000 30,064,458 51,776,061

Recreation Center Expansion 5,821,708 5,821,708

Aquatics Center 4,790,902 18,690,701 125,000 23,606,603

Firestation Settlement 46,825 434,856 481,681

Town Hall Remodel - 36,200 765,000 801,200

Event Center 2,850,000 - 2,000,000 4,850,000

Public Safety Buildouts 90,000 90,000

Marketing Department Buildouts 90,000 90,000

Wayfinding Project 315,000 315,000 630,000

Fire Station # 4 7,000,000 7,000,000 Subtotal 4,837,726 22,191,758 1,205,000 2,315,000 7,000,000 43,371,192

Radio Communications 2,250,000 2,250,000

Fire Station # 4 3,425,000 3,425,000 Subtotal 3,425,000 2,250,000 5,675,000

Wynfield Farms Outfalls 60,000 60,000

Street Sweeping 14,266 12,228 12,228 12,228 12,228 12,228 61,140 136,546

Canyon Lake Retaining Walls 295,000 295,000

Crescant Lake Retaining Walls 400,000 400,000

Shell Beach Drainage 75,000 75,000

Sunrise Bay Drainage - sediment removal 85,000 85,000

Beach Drainage 16,000 170,000 186,000

McCord Park Trail Drainage 95,000 374,000 469,000 Subtotal 820,266 641,228 12,228 12,228 147,228 12,228 61,140 1,706,546

Prior Years FY 2019-2020 FY 2020-2021 FY 2021-2022 FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2026 - 2031 PLANNING YEARS

TOTAL PROJECT

16,976,018 30,229,435 11,626,228 12,757,228 1,662,228 1,797,228 5,087,228 60,780,453 146,737,754

Capital Improvement Project Planning List

Street Projects

Traffic Projects

Park Projects

Facility Projects

Equipment Projects

Drainage Projects

Total Governmental Projects

ADOPTED BUDGET

TOWN OF LITTLE ELM

105

PROJECT Prior Years FY 2019-2020 FY 2020-2021 FY 2021-2022 FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2026 - 2031 PLANNING YEARS

TOTAL PROJECT

French Settlement - 676,187 676,187

Meters 1,501,937 1,501,937

FM 423 Repaint/Mansell Tank/Pro 1,461,308 11,222 1,472,531

McCord Park Reuse 53,480 13,370 66,850

West Side Lift Station No. 2 1,860,582 212,195 2,072,777

Waste Water Treatment Plant 10,807,634 273,094 11,080,728

Service Center Expansion 2,021,495 - 1,322,500 3,343,995

Impact Fee Study 350,000 350,000

King Road Utility Work 589,778 589,778

West Side Water Pressure Study 97,500 97,500

West Side Interconnection Design/Agreements 33,000 33,000

West Side Water Emergency Interconnect 390,910 390,910

12-Inch Water Along West Eldorado Parkway 1,717,755 1,717,755

Mansell Pump Station Improvements Phase II 1,649,209 1,649,209

Mansell 24-Inch Transmission Lines 370,000 2,463,835 2,833,835

Mansell Tank Rehabilitation 260,000 1,698,076 1,958,076

West Side Water Pressure Improvements 900,738 900,738

Woodrow Circle Water 120,000 120,000

TX AWIA Resiliency Plan & Implementation 312,000 312,000

Retrofit Meter Vaults - Greenwood, Lobo, Main Street 119,400 119,400 Utility Asset Management Plan (Water) 150,000 150,000

Total Water Projects 17,706,437 1,498,068 1,339,678 3,364,148 4,161,911 3,366,964 - - 31,437,206

PROJECT Prior Years FY 2019-2020 FY 2020-2021 FY 2021-2022 FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2026 - 2031 PLANNING YEARS

TOTAL PROJECT

WWTP Lab Building Expansion 225,000 225,000

WWTP Step Screen 495,732 495,732

King Road Utility Work 194,350 194,350

WWTP UV Module Replacement 650,000 650,000

WWTP Lab Building Expansion 1,494,250 1,494,250

WWTP Clarifier Rehabilitation 350,000 2,278,061 2,628,061

WWTP Lift Station Upgrade 995,000 6,622,025 7,617,025

I&I Evaluation - PACP and Cleaning 1,612,780 1,612,780

Stardust Lift Station Rehabilitation 538,200 538,200

Garza Lift Station 5,079,263 5,079,263

Lakewood Lift Station Rehabilitation 538,200 538,200

WWTP Generator Upgrades 1,308,125 1,308,125

McCord Park Brent Elementary Reuse Improvements 726,389 726,389

Sunset Pointe Lift Station Improvements 650,325 650,325

Woodrow Circle Sewer 165,000 165,000

Repairs per I&I Evaluation (150k per year) 150,000 150,000 150,000 600,000 1,050,000

Hillside Beach Sewer 20,000 20,000

I&I Evaluation - Smoke Testing & Metering 110,110 110,110

WWTP Re-Rating Study and TPDES Permit Amendment 80,000 80,000

Cottonwood Manhole Rehabilitation 80,000 80,000

Utility Asset Management Plan (Wastewater) 150,000 150,000

TPDES Permit Renewal 19,822 19,822 Cottonwood Creek Improvements (Kings Crossing) 500,000 500,000

Total Wastewater Projects - 100,000 2,961,293 3,732,140 3,736,186 1,145,000 6,772,025 7,485,988 25,932,632

Prior Years FY 2019 - 2020 FY 2020-2021 FY 2021-2022 FY 2022-2023 FY 2023-2024 FY 2024-2025 FY 2026 - 2031 PLANNING YEARS

TOTAL PROJECT

34,682,455 31,827,503 15,927,199 19,853,516 9,560,325 6,309,192 11,859,253 68,266,440 204,107,591

Capital Improvement Project Planning List

Total for All Projects

Water Projects

Wastewater Projects

ADOPTED BUDGET

TOWN OF LITTLE ELM

106

107

108

ORDINANCE NO. 1572

AN ORDINANCE FIXING THE TAX RATE AND LEVY FOR THE TOWN OF LITTLE ELM, TEXAS, FOR THE PURPOSE OF PAYING THE CURRENT EXPENSES OF THE TOWN FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2021, AND FOR THE FURTHER PURPOSE OF CREATING A SINKING FUND TO RETIRE THE PRINCIPAL AND INTEREST OF THE BOND INDEBTEDNESS OF THE TOWN; PROVIDING FOR A LIEN ON ALL REAL AND PERSONAL PROPERTY TO SECURE PAYMENT OF TAXES DUE THEREON; CONTAINING A SEVERABILITY CLAUSE; REPEALING ALL ORDINANCES AND PARTS THEREOF IN CONFLICT HEREWITH; AND PROVIDING FOR AN EFFECTIVE DATE.

________________________________________________________________________

WHEREAS, the Town Council of Little Elm, Texas has on this date, by way of separate Ordinance, duly approved and adopted a Budget for the operation for the Town for fiscal year 2020-2021 (FY 2020-2021); and

WHEREAS, the aforesaid Ordinance anticipates and requires the levy of an ad valorem tax on all taxable property in the Town of Little Elm; and

WHEREAS, the Chief Appraiser of Denton County Tax Appraisal District has prepared and certified the appraisal roll for the Town of Little Elm, Texas, that roll being that portion of the approved appraisal roll of the Denton County Tax Appraisal District which lists property taxable by the Town of Little Elm, Texas; and

WHEREAS, it is necessary to levy such an ad valorem tax at a given rate to generate revenues sufficient to meet the projected expenses of the Town for FY 2020-2021; and

WHEREAS, the Town has fully and timely complied with all notice and other requirements relative to the adoption of a tax rate for FY 2020-2021. NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF LITTLE ELM, TEXAS, THAT:

Section 1. There is hereby levied for the FY 2020-2021 upon all real property situated within the corporate limits of the Town of Little Elm, Texas, and upon all personal property which was owned within the corporate limits of the Town of Little Elm, Texas, on January 1, 2020, except so much thereof as may be exempt by the Constitution or laws of the State of Texas, a total tax of $0.649702 on each $100 of assessed valuation on all taxable property, which total tax herein so levied shall consist and be comprised of the following components:

a) An ad valorem tax rate of $0.520000 on each $100 of assessed valuation of all taxable property is hereby levied for general Town purposes and to pay the current operating expenses of the Town of Little Elm, Texas, for the fiscal year

DocuSign Envelope ID: 43285165-54BB-4799-B460-3DB7DED7850C

109

ending September 30, 2021, which tax, when collected shall be appropriated to and for the credit of the General Fund of the Town of Little Elm, Texas.

b) An ad valorem tax rate of $0.129702 on each $100 of assessed valuation

of taxable property is hereby levied for the purpose of creating an Interest and Sinking Fund with which to pay the interest and principal of the valid bonded indebtedness, and related fees of the Town of Little Elm, now outstanding and such tax, when collected, shall be appropriated and deposited in and to the credit of the General Debt Service Fund of the Town of Little Elm, Texas, for the fiscal year ending September 30, 2021.

Section 2. The Town of Little Elm shall have lien on all taxable property located in the Town of Little Elm to secure the payment of taxes, penalty, and interest, and all costs of collection, assessed and levied hereby.

Section 3. Taxes are payable in Little Elm, Texas at the Office of the Tax Assessor

Collector of Denton County. The Town shall have available all the rights and remedies provided by law for the enforcement of the collection of taxes levied under this Ordinance.

Section 4. The tax roll presented to the Town Council, together with any supplements thereto, are hereby accepted and approved.

Section 5. Should any paragraph, sentence, provision, clause, phrase or section of this Ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance, as a whole or any part or provision thereof, other than the part or parts adjudged to be invalid, illegal, or unconstitutional.

Section 6. This ordinance shall be in full force and effect from and after its adoption by the Town Council and publication of its caption as the law and the Town Charter provide in such cases.

Section 7. All other ordinances and Code provisions in conflict herewith are hereby repealed, but only to the extent of any such conflict or inconsistency and all other provisions of the Little Elm Town Code not in conflict herewith shall remain in full force and effect.

Section 8. The repeal of any ordinance or parts thereof by the enactment of this Ordinance, shall not be construed as abandoning any action now pending under or by virtue of such ordinance; nor shall it have the effect of discontinuing, abating, modifying or altering any penalty accruing or to accrue, nor as affecting any rights of the Town under any section or provision of any ordinances at the time of passage of this Ordinance.

Section 6. The Town Council of the Town of Little Elm, Texas met in a public

meeting on September 29, 2020, and adopted this ordinance with a majority vote as follows:

DocuSign Envelope ID: 43285165-54BB-4799-B460-3DB7DED7850C

110

Mayor David Hillock YEA ____ NAY____ ABSTAIN____ ABSENT____

Mayor Pro Tem Neil Blais YEA____ NAY____ ABSTAIN____ ABSENT____

Council Member Tony Singh YEA____ NAY____ ABSTAIN____ ABSENT____

Council Member Lisa Norman YEA____ NAY____ ABSTAIN____ ABSENT____

Council Member Nick Musteen YEA____ NAY____ ABSTAIN____ ABSENT____ Council Member Curtis J. Cornelious YEA____ NAY____ ABSTAIN____ ABSENT____

Council Member Michael McClellan YEA____ NAY____ ABSTAIN____ ABSENT____ THE TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEARS TAX RATE. THE TAX RATE WILL EFFECTIVELY BE RAISED BY 0.91 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $2.17. The Town’s website shall reflect the foregoing statements, pursuant to applicable provisions of the Texas Tax Code, as amended. READ and ADOPTED on the 29th day of September 2020.

APPROVED:

______________________________ David Hillock, Mayor

ATTEST: _______________________________ Kathy Phillips, Town Secretary

DocuSign Envelope ID: 43285165-54BB-4799-B460-3DB7DED7850C

X

X

X

X

X

X

X

111

ADOPTED BUDGET

TOWN OF LITTLE ELM

BROUGHT TO YOU BY…..

THE TOWN OF LITTLE ELM FINANCE TEAM