Town Hall Meeting May 6, 2017 Bond Election Presented by Mayor Kimberly Fitzpatrick Date: March 30, 2017

Agenda Mayor & Council’s Vision for DWG Condition of DWG’s Infrastructure City Hall Streets, Water/Sewer, Drainage Proposed Bond Election DWG’s Sources of Revenue To support debt To fund operations DWG Current Financial Situation Funding Operations

Mayor & Council’s Vision for DWG November 2016 Strategic Visioning Workshop Pillars of the Future Vision 1) Financial stability-We are closing the gap but still need more revenue 2) Improve the appearance of City of DWG 3) Operations Excellence 4) Infrastructure upgrades and improvements-Bond Election/Capital Improvement Plan 5) Responsibly planned economic development which will drive much needed sales tax and property tax into our City 6) Educational Excellence 7) Build a positive image reputation as a destination to live, work and shop

Condition of DWG’s Infrastructure

City Hall Left: City Council Chambers Right: Front Desk Back Office Left: Server Room Right: Sargent’s Office

Water Damage

Exterior

Storage Above Court Room: Records Fire Bay Above Court Room: Records

Streets, Water/Sewer, Drainage Infrastructure assessment by Westra on evaluation of streets, water/sewer, drainage. $4 million of projects identified to be funded with bond.

Mayor & Council Proposed Bond Election to Address Critical Infrastructure Needs Citizens will Decide: Yes or No

Mayor & Council’s Bond Proposal Proposition 1 – Issuance of $4 Million in Bonds for Infrastructure Improvements Proposition 2 – Issuance of $2 Million in Bonds for City Hall Improvements

Phased Debt Issuance Strategy

DWG’s Sources of Revenue To Fund Debt: Property Tax (I&S) To Fund Operations Property Tax (M&O) Franchise fees from utilities Sales Tax Court Fees (Fines) Water, sewer & solid waste (dedicated to support water, sewer & solid waste services) Oil & Gas Royalties (potentially at risk)

Overview of Financial Situation

Alternatives to Stabilize General Fund Operations Alternative 1 – Reduce Cost Staff is approximately 70% of city’s budget Staff reductions would result in: Fewer public safety officers Fewer public works staff to maintain our streets, parks, water & sewer Less investment to maintain our streets, water/sewer & parks Alternative 2 – Raise Property Tax Rate (M&O) Funds current operations Progresses toward not relying on gas royalties for operations (save for investments in our infrastructure and capital assets) For 2018 will require a $.05 increase in M&O tax Council will consider these alternative during budget deliberations this summer Will involve citizen via town hall meetings Ultimately citizens can call for an election to roll back the rate to the current rate

Overall Impact on Tax Rate (with Increased M&O Tax) 2017 2018 2019 2020 I&S Property Tax Rate $0.0362 $0.0803 $0.0981 $0.1186 M&O Property Tax Rate $0.2378 $0.2878 $0.3050 $0.3233 Total Tax Rate $0.2740 $0.03681 $0.4031 $0.4419

DWG vs. Other Cities DWG = .27 Pantego = .42 Arlington = .64 Grand Prairie = .67 Mansfield = .71 Midlothian = .71 Kennedale = .77 Fort Worth = .84

Questions?