1. Town Hall Meeting Presented by Mayor Kimberly Fitzpatrick Date: September 6, 2016

2. Agenda City’s Current Financial Situation Sources Of City’s Revenue Mr. Jeff Law Will Speak Regarding City’s Property Values Tarrant County Tax Assessor, Mr. Ron Wright, Will Speak Regarding City’s Tax Rate Councilman Ed Motley Will Speak Regarding Water, Wastewater & Refuse Enterprise Status of Infrastructure Questions?

3. Goals Thru 2018 Stabilize City’s Current Financial Situation Increase Sources Of City’s Revenue Increase Economic Development Improve City’s Infrastructure Improve City Hall Public Improvement District for Ambassador Area

4. 2016-17 Budget Council is working on adopting the 2016-2017 budget Council has significant challenges balancing the budget for the following reasons: Decline in municipal court revenues Decrease in mineral values are off-setting increase in property values Decline in sales tax revenues Decline in oil & gas revenues There has been an overall increase in City’s expenses Water, Wastewater & Refuse Enterprise has operated in the red the last two fiscal years

5. Overview of Financial Situation Sources of Revenue2008-20092009-20102010-20112011-20122012-20132013-20142014-2015 Projected YTD 2015-2016 YTD 2015-2016 Property Tax$798,122$813,946$789,694 $863,466$858,985$842,617$848,431 $894,550 $846,935 Sales Tax$413,884$454,761$694,373 $778,877$614,248$726,602$784,902 $778,000 $649,098 Other Taxes$286,518$171,714$250,401$377,860$372,173$401,536$378,440 $401,456 $391,855 Municipal Court$960,842$960,994$860,907$777,358$944,803$775,168$744,341 $702,300 $438,571 Interest$1,956$1,222$3,404$1,087$668$267$202 $1,000 $970 Other Income$243,269$142,786$85,439$74,934$58,694$86,992$54,051 $55,060 $161,135 Oil & Gas$6,130$266,912$576,735$490,436$348,765$227,154$650,113 $450,000 $433,845

6. Revenues in 2014-2015

7. Revenues in 2013-2014

8. Presentation by Mr. Jeff Law Regarding Appraisals

9. Presentation by Hon. Ron Wright Regarding Tax Rate

10. Increase Tax Rate for 2016-2017 to.273979 from.25367

11. Fort Worth:.86 Arlington:.648 Burleson:.42 Grand Prairie:.71 Mansfield:.71 Southlake:.46 Town of Pantego:.64 Tax Rates for Surrounding Cities

12. Budget Goals for Water, Wastewater & Refuse Provide twice weekly refuse pick-up with recycle for citizens ​ Provide reliable water & wastewater service to citizens ​ Maintain the water and wastewater infrastructure ​ Budget for the systematic replacement of obsolete infrastructure ​ Recover the cost of water, wastewater and refuse services thru monthly water bills to citizens including the cost of: ​ Contracted services for water supply, wastewater disposal, and refuse collection ​ Maintenance and systematic replacement of infrastructure ​ Administration, i.e. billings, collections, etc. ​ Provide services at the lowest possible cost to the citizens

13. Realities of Water, Wastewater & Refuse Enterprise Costs for contracted services have escalated annually ​ Purchase of water from Fort Worth (and Arlington beginning in 2016) ​ Cost of wastewater disposal from TRA and Arlington ​ Cost of refuse collection from Republic Waste ​ Rate increases have not kept pace with cost increases ​ Water, Wastewater & Refuse Enterprise has operated in the red the last two fiscal years

14. What has Council Done to Solve Mitigate Losses? Contracted with the City of Arlington for water supply to augment supplies from Fort Worth: ​ Saves $0.165 for every 1000 gallons purchased from Arlington vs. Fort Worth ​ Saves the cost of pumping every gallon purchased from Arlington vs. Fort Worth ($0.09 for every 1000 gallons purchased from Arlington) ​ Saves cost of fees paid to the Ground Water Conservation District ($56,000 in 2015-16 vs. $10,000 budgeted in 2016-17) ​ Completing a water audit to reduce the volume of unaccounted water (differences between water purchased and sold) ​ Replacing old residential water meters (better accuracy and allows more efficient and accurate reading)

15. Will These Measures be Enough? Unfortunately, no ​. ​ A rate increase will be required to balance the water, wastewater and refuse enterprise fund ​. ​ How Much?

16. Draft Residential Water, Wastewater & Refuse Rates 2015-2016 - Refuse ​ Base Rate – $13.99 ​ - Water ​ Base Rate – $19.25 per month ​ Minimum Volume – 2000 gallons per month ​ Excess Volume Charge – $3.03 per 1000 gallons ​ - Wastewater ​ Base Rate – $14.30 per month ​ Minimum Volume – 2000 gallons per month ​ Excess Volume Charge – $2.32 per 1000 gallons ​ - Minimum Bill – $47.54 per month ​ - Average Bill - $87.12 per month 2016-2017 - Refuse ​ Base Rate – $16.00 ​ - Water ​ Base Rate – $25.00 per month ​ Minimum Volume – 2000 gallons per month ​ Excess Volume Charge – $3.70 per 1000 gallons ​ - Wastewater ​ Base Rate – $20.00 per month ​ Minimum Volume – 2000 gallons per month ​ Excess Volume Charge – $3.30 per 1000 gallons ​ - Minimum Bill - $61.00 per month ​ - Average Bill - $111.20 per month

17. Current Deficiencies – Infrastructure Capital Improvement Plan Conducted by Westra in Summer of 2016 Improvements Recommended in 2016-2017 Only Repairs Needed to Water, Drainage, Paving & Sewer -Roosevelt Drive (California to Bowen) -Roosevelt Drive (Arkansas Lane to Clover Lane) -Roosevelt Drive (Clover Lane to California Lane) -Ambassador Row (Seville Court to Chase Court) -Ambassador Row (Chase Court to Roman Court) -Ambassador Row (Roman Court to Madrid Court) -Seville Court -Chase Court -Roman Court -Madrid Court -Indian Trail (Sieber Drive to Garden Lane) -Sunset Lane (Roosevelt Drive to Sieber Drive) -Sieber Drive (Sunset Lane to City’s Limits) Estimate to Complete Most Pressing Repairs = $5,098,020

18. Current Deficiencies – City Hall -NOT ADA Compliant -Lacking personnel work space -Insufficient storage for records -Antiquated plumbing & utilities -Decades of improper wiring installations -DPS offices/living quarters built into garage (CO2 poisoning) -Flooding issues that affect garage/DPS offices/living quarters -Make-shift storage rooms for DPS armory & evidence -Poor conditions in living quarters -Deficient DPS facilities pose potential threats to officers

19. Current Deficiencies in Photos Warrant Division office & living quarters directly behind firetruck Living quarters for on-duty DPS officers working 12 hour shifts Active files are being stacked along the walls Building wiring is exposed and improperly installed

20. Additional Photos of Building Damage

21. New City Hall – Hopefully in 2017

22. Questions?