1. SUMMARY OF FY2016 PROPOSED BUDGET July 21, 2015 1

2. General Overview of Proposed Budget The proposed budget is a balanced budget Total Budget for all Funds is $67,509,186 Property Tax Rate is included at the Effective Tax Rate Provides funding to invest in the City’s employees by including the following: Incorporating Options 1 and 2 of the Compensation Plan along with a merit increase component Maintaining the current health insurance coverage with a 10.98% increase including paying 100% of the employees coverage Increasing life insurance for eligible employees from $10,000 to $25,000 of coverage Provides funding for the some of the Budget Requests (11 of 25) and Capital Improvement Projects (23) Maintains reserve balances at or above 20% of operational expenses 2

3. FY2015 Accomplishments Secured a long-term sustainable water supply through a contract. Selected a consultant to prepare an updated Comprehensive Plan for the City. Performed a facilities assessment to improve City facilities and plan for future facility needs. Prepared a master technology plan in-house to examine current technology and assess needs. Performed a Classification and Compensation Study to establish market comparisons and make recommendations regarding job structure, current compensation and market competitiveness. Worked with developers to increase economic development and bring businesses to Rosenberg. Received the Main Street City designation by the Texas Historical Commission in a program designed to assist with downtown revitalization. Received the Platinum award from the Texas State Comptroller of Public Accounts for the highest level of financial transparency. 3

4. Overview of General Fund Revenues GENERAL FUND REVENUES INDICATE A POSITIVE FINANCIAL OUTLOOK Tax Rate is included at the effective tax rate Effective Tax Rate will be reduced from the current $0.49 per $100 valuation Amount of reduction not available until certified values are received from Fort Bend County Increase in Local Sales Tax projected at approximately 5% over FY2014 actual sales tax collections Increase in building related permit fees indicating new development 4

5. Overview of General Fund Expenditures GENERAL FUND EXPENDITURES INDICATE AN OVERALL 5% INCREASE Changes in Personnel and Benefits Addition of 4 positions Compensation Study increases with a merit increase of 2.5% 10.98% increase in health insurance rates Changes in Supplies Cost increase for chemical supplies, street repair supplies, vehicle supplies Changes in Maintenance & Services Increase in maintenance contracts (janitorial, mowing, street sweeping) Increase in Fleet Replacement Funding due to addition of large equipment Increase in Technology Fees due to reallocation of expense to other funds Increase in Street Improvements, Speed Hump Program, Radar Speed Signs 5

6. Budget Requests Proposed Funding FUNDED 11 of 25 REQUESTS Fleet Service Technician (Part-time to Full-time) Shop Heater for Fleet Services Planning Administrator (Including Equipment) Police Officer (including Equipment and Vehicle) Capital Projects Manager Replacement of Firewall Rescue Equipment for the Fire Department Increase in Life Insurance Coverage Tickets Writers for Police Department Body Camera Units for Police Department Officer Self-aid Buddy Kits for Police Department 6

7. Capital Improvement Plan (CIP) Proposed Funding MAJORITY OF CIP PROJECTS HAVE CURRENT OR PROPOSED FUNDING AVAILABLE Recommend issuing Certificates of Obligation Issue Certificates of Obligation – November 2015- $4,800,000 Bryan Road – $2,300,000 Old Richmond Road/Jennetta Street and Avenue F Drainage - $2,500,000 Issue Certificates of Obligation – November 2015 - $5,000,000 WWTP 1A Collection System (Phase Two) - $5,000,000 Issue Certificates of Obligation –March 2016 - $4,915,200 Chloramine Conversion System (GRP) - $376,200 Water Plant No. 8 (GRP) - $4,539,000 Issue Certificates of Obligation – March 2016 - $4,317,000 Spacek Road Sewer Lift Station - $2,617,000 Spacek Road Sewer Line - $1,700,000 7

8. Summary of Proposed Budget The Proposed Budget is a Balanced Budget Tax Rate is set at the Effective Tax Rate which should be a decrease in the tax rate 11 of the 25 Budget Requests are included in the proposed budget All CIP is funded with the issuance of Certificates of Obligation for several projects 8

9. Proposed Budget Calendar July 28, 2015 – Regular Council Workshop Revenue Projections Discusses Tax Rate Review City Debt Service Obligation August 8, 2015 – Budget Workshop Review Proposed Budgets for City Departments Review Proposed Budgets for Special Funds Discuss Effective Tax Rate Set Public Hearing Dates 9

10. Proposed Budget Calendar August 18, 2015 – Regular Council Meeting 1 st Public Hearing on Budget 1 st Public Hearing on Tax Rate, if necessary City Council Discussion on Budget August 25, 2015 – City Council Workshop 2 nd Public Hearing on Budget 2 nd Public Hearing on Tax Rate, if necessary City Council Discussion on Budget September 1, 2015 – Regular Council Meeting Action to Adopt Budget Action to Adopt Tax Rate 10