BUDGET WORK SESSION
FISCAL YEAR 2017
City of Mustang
General Fund




Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
Charges for Services
Licenses/Permits/Fees
6%
2%
$ 2,100,000
$21,296,875
($21,433,559)
$ 1,963,316
Reserved Carryover
9%
Sales Tax
42%
Interest Income
1%
Transfers In
32%
Other Taxes
3%
Fines
2%
Franchise Taxes
3%
General Fund – Revenue
The General Fund is
the City’s primary
operating fund and
the source of dayto-day operations.
The General Fund is
significantly reliant
on sales tax
revenues for
operations.


Staff has projected sales tax revenue to remain
flat due to the current downturn in the economy
facing all Oklahoma municipalities. The City of
Mustang has been very fortunate over the last
year as general revenues have remained flat.
Sales and use tax are both running alongside with
last year's receipts
Projected Sales Tax Revenue



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

FY 12:$ 7,794,082
FY 13:$ 8,340,520
FY 14:$ 9,160,774
FY 15:$ 9,708,037
FY 16:$ 9,900,000 (projected year to date as of 5/5/2016)
FY 17:$ 9,900,000 (projected budget)
Budget represents 0% increase from projected year-end sales tax for FY17.
$1,000,000
Year-to-Date Sales Tax Totals
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$Jul
Aug
Sep
Oct
FY16
Nov
Dec
Jan
FY15
Feb
Mar
Apr
FY14
May
Jun
General Fund – Expenditures
Streets
1%
Mayor & Council
1%
Animal Control
1%
Community
Development
2%
City Manager
2%
Fire
9%
Library
2%
Parks & Recreation
4%
General Government
7%
Police
13%
Finance
3%
Aquatics
1%
Ball Complex
2%
Town Center
1%
Increase to Fund
Balance 8%
Transfers
43%
General Fund – Expenditure Changes
Financing the
City’s
operations.




Strategies were implemented to reduce
operational department budgets by 5%.
No change - Oklahoma Municipal Retirement Fund
(11.79%), Police (13%), and Fire (14%).
Recommended transfer to Risk Management Fund
from $75,000 to $100,000 to cover annual
excess workers compensation coverage . Shared
costs with the MIA.
The budget does not include merit increases for all
employees. The FY 2016-17 budget includes job
reclassifications for two positions in the ball
complex division.
General Fund – Expenditure Changes
Premium
Healthcare
Rate Increase
of 7.5%

Budget includes a plan premium rate increase
of 7.5% in costs associated with employee
health care. The national average is between
9-19%. Once again, this is the beneficial
result of joining the Oklahoma Public
Employees Health and Welfare Consortium.
When it comes to dental health, staff has
chosen OPEH&W for its plan. This package
has the best balance of value and coverage
with a cost savings of $10,800 to the City.
General Fund Reserve
The General Reserve Fund
was established by
Resolution 06-017.
Original funding was
deposited from other funds
for maintenance of city
facilities, infrastructure, and
other capital purchases.
Ordinance No. 1105 was
approved on July 15, 2015
to levy a tax of (5%) on the
rental of hotel and motel
rooms within the city limits.
All taxes collected shall be
deposited into the City’s
General Fund. The City
Council shall determine on a
yearly basis the use of the
room tax funds.
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Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 9,000
$ 7,100
$(
0)
$ 16,100
Impound Fee Fund
The Impound Fee
Fund was
established by
Ordinance No.
1102 on May 2,
2014 amending
impoundment of
vehicles. An
impound fee of
$100 by the
person to whom
the release is
issued to cover
towing service for
the impoundment
and storage.
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Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$
$
$(
$
20,000
30,100
27,500)
22,600
Park Improvement Fund
The Park
Improvement Fund
is used to account
for the revenue
received from
business licenses
($15 per license)
required by
ordinance; court
costs assessed for
parks; and park
fees from
subdivisions. Funds
are restricted for
improvements to
and development
of the park system.
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Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 39,000
$ 66,200
$( 105,200)
$
0
Park Improvement Fund



Accessible Playground
$ 50,000
Park Signage (3)
10,650
Bleacher Covers for Baseball Complex (11)
44,550
TOTAL $ 105,200
Alcohol Enforcement Fund
The Alcohol
Enforcement Fund
is used to account
for fines and fees
generated as a
result of
intoxicating
substances and
traffic related
offenses.
Ordinance
#1087
established the
fund.
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Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 6,150
$ 8,600
$( 14,750)
$
0
Library Fund
The Library Fund is
used to account for
restricted state
grant agreements
and fines
generated as a
result of overdue
library materials.
Funds are used for
library operations,
local programs,
and capital
purchases.
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
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Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$
0
$ 11,775
$(11,775)
$
0
Traffic Enforcement Fund
The Traffic
Enforcement Fund
is used to account
for fines and fees
restricted for
capital and
training expenses
related to traffic
enforcement.
Ordinance #920
established
legislative
restriction.
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Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 8,000
$ 14,100
$(15,900)
$ 6,200
2012 GO Bonds – Baseball Complex Fund

The City issued
$1,550,000 General
Obligation Bonds,
Series 2012, dated
June 1, 2012 to
provide financing for
the construction of a
baseball complex.
Proceeds must be used
for new baseball
complex purpose only.
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

Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$
$
$(
$
39
1
40)
0
Employee Flex Spending Fund
The City offers its
employees a
Flexible Spending
Program, which is
allowable under
Internal Revenue
Code, Section 125.
The program allows
employees to
deposit a portion of
their pre-tax income
into the account
maintained for
health care
expenditures.
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

Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$
$
$(
$
3,700
3,300
3,700)
3,300
Park & Recreation Donation Fund
The Donation
Fund is used to
account for
specified
donations that
are restricted
for the use of
park and
recreational
events/projects.
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Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 5,000
$
0
$(
0)
$ 5,000
2012 GO Bonds – Town Center Expansion

The City issued $2,050,000
combined purpose General
Obligation Bonds, Series
2012, dated June 1, 2012
for the purpose of
expanding the Town Center
Building-Library. Proceeds
from the bonds provided
financing for the
construction of this project.
Ad valorem revenue is
collected to pay principal
and interest on general
obligation bonds within the
Debt Service Fund.
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

Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 75,000
$
250
$( 75,250)
$
0
Street/Drainage Fund
The Street/Drainage
Improvement Fund is
a special revenue
fund used to account
for the proceeds of
specified revenue
sources that are
restricted or
committed to
expenditures for
street projects and
repair.
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Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$
$
$(
$
730,000
454,000
228,500)
955,500
Debt Service Fund
The City Debt
Service Fund is
used to account for
ad valorem taxes
levied by the city
for use in retiring
general obligation
bonds, courtassessed
judgments, and
their related
interest and fiscal
agent fees. In
State law, this fund
is referred to as
the Sinking Fund.
Current obligations
are the 2012
General
Obligation Bond
Projects (Ball Field
and Town Center
Expansion).
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


Projected Revenues
Projected Beginning Balance
Projected Expenditures
Projected Ending Fund Balance
$ 320,200
$ 220,000
$(306,250)
$ 233,950
Limited Purpose Fund
The Limited Purpose
Fund is a capital
project fund used to
purchase capital
outlay, including the
acquisition or
construction of capital
facilities, or other
capital assets. The
restricted 3rd penny
sales tax collected
(MIA) in excess of
debt payments are
set aside to the
Limited Purpose Fund.
Resolution 15-058
amended 05-027 to
read ‘10% of sales
tax revenue received
in excess of
$800,000 per
month’.
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
Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 840,000
$ 890,000
$(764,036)
$ 965,964
Limited Purpose Fund - Capital Outlay Spending
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Library – RFID (radio frequency identification ($12,000);
Parks and Recreation – accessible playground ($50,000), hammer strength dumbbell set
($5,194), two Wi-Fi connections ($2,600), park video security system ($20,000), sprinkler
covers ($2,000);
General Government – Microsoft upgrade (15) police mobile terminals ($4,151), Elite desk
(14) new computers ($14,886), upgrade Microsoft 2016 Standard (72 units) – ($19,927),
upgrade Microsoft 2016 Pro Plus (23 units) – ($8,689);
Town Center – two new HVA units ($15,132), Christmas lighting ($5,000), window tinting in
Senior Center-game room ($2,439), new switch for computer system ($3,767), banquet kitchen
warming oven ($4,699), new carpet in facility ($21,000), new tile in Senior Center
($14,000);
Ball Complex – field and bunker rake ($16,000), three drop in ceiling ($13,500), walk in
refrigerator ($18,194), five softball scoreboards ($45,000) ;
Aquatic Center – sound system ($5,642), 162 lounge pool chairs ($18,709);
Community Development – Extended cab truck ($32,050), comprehensive plan update
($60,000);
Police – New Vehicles ($45,996), Prior Year Leases – Vehicles ($107,111), diesel generator
($70,905), RTU HVAC unit ($39,445);
Limited Purpose Fund - Capital Outlay Spending
CONT’D


Fire – desktop computer ($2,000)
Street Division – directional signs in City ($25,000), two welcome to Mustang signs ($20,000),
mower ($24,000)

Water Division – Resolution 05-027 infrastructure ($15,000)

Sub-total of Capital Requests ($764,036)

Reserves for fund balance ($965,964)

Total - $1,730,000
2014A Series Bond Fund
The City pledged the 4th
penny of future sales tax
to repay of Series 2006
Revenue Bonds. The sales
tax is legally restricted
by a vote of the citizens
and cannot be spent on
any other items.
Proceeds from the notes
provided financing for
community facilities in
1999. Debt service
payments are received
and paid within this fund.
Taxes collected in excess
of the debt service
payments are set aside
for the early retirement
of debt as serial bonds
become due.
On May 13, 2014 the
2014A Notes refinanced
the Series 2006 Revenue
Bonds for the purpose of
reducing maturity years
by 3.33 years, note
amount of $7,740,000,
interest rate reduced
from 5.0% to 2.1%.
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
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
Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 680,000
$2,478,600
$(2,243,925)
$ 914,675
2014B Series Bond Fund
In December 2014, the
City issued the Series
2014B and pledged the
net utility revenues and
four cents of sales tax.
Interest payments started
June 1, 2015 within the
MIA fund. Payments will
be received and paid
within the 2014B Series
Bond Fund for fiscal year
2017.
Principal payments do
not begin until June 2018
and the note is payable
through June 2026.
The 2014B note of
$7,985,000, with an
interest rate of 2.7%
with Branch Banking and
Trust Company (BB&T).


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Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 18,000
$ 215,265
$( 215,165)
$ 18,100
Mustang Improvement Authority
The Mustang Improvement
Authority (MIA) was
created June 4, 1963 to
finance, develop and
operate the water, sewer
and solid waste activities.
These activities are
financed primarily by user
charges and similar to the
private sector.
This fund accounts for
activities of the public trust
in providing water,
wastewater, sanitation,
and recycling to the
public.
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
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Projected Beginning Balance
2014B Restricted Carryover
Projected Revenues
Projected Expenditures
2014B Construction Projects
Projected Ending Fund Balance
$ 2,150,000
$ 6,942,020
$17,754,020
$(17,932,015)
$( 6,942,020)
$ 1,972,005
Mustang Improvement Authority - Revenues
Transfers In
1%
Restricted C/O (2014B
Projects)
25%
Sales Tax
37%
Carryover
8%
Miscellaneous
1%
Fees & Other Services
3%
Sanitation
7%
Sewer
7%
Water
11%
Mustang Improvement Authority - Expenditures
Sewer
4%
Sanitation
4%
Other Services
1%
Increase to Fund Balance
7%
Debt Service
1%
Water
10%
2014B Construction
Projects
25%
Transfers Out
48%
Risk Management Fund
The Internal
Service Fund
(Worker’s
Compensation
Fund) is used to
account for selfinsured worker’s
compensation
claims.




Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 458,000
$ 107,000
$( 160,000)
$ 405,000
MIA Reserve Fund
The MIA Reserve fund is used for
maintenance, infrastructure, and
capital purchases for the
enterprise funds. On an annual
basis 33 1/3% of the connection
fees will be appropriated for
operating and maintaining utility
systems, and 66 2/3% of
connection fees for expanding
and upgrading water and sewer
utilities.
Ordinance 1106 added $4.50
per month for each utility account
for capital improvements to
water and wastewater facility
and line maintenance and
construction.




Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 405,000
$ 388,700
$(
0)
$ 793,700
MIA Reserve Fund
The MIA
Reserve Fund
projected of
$405,000 for
fiscal year
2016.
- CONT’D

Current Fiscal Year 2016 Projects: $181,493

59th Street Water Line Relocation

Replace Well #1 Pump/Motor

Completion of Meadow Lane Sewer Rehabilitation Project

Repaired Well #3 Pump, Meter, & Install

Rebuilt Discharge Pumps #1, #2, and #3 (WWTP)
Sewer Impact Fund
The Sewer Infrastructure
Impact Fund is used to account
for fees established per house
top to developers. Funds are
used to pay the Series 2009
Clean Water SRF Note to
OWRB dated June 8, 2009
and future indebtedness.




Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$525,000
$ 92,000
$(100,000)
$517,000
2013 Refinancing (1998A|B) Fund
The City has pledged future
net water and sewer revenues
and one cent sales tax to
repay the 1998 Revenue
Bonds Payable. Proceeds
from the bonds provided
financing for utility system
capital assets. The bonds
were defeased in April 2013,
funded by the issuance of a
refunding private placement
note, with the pledged
revenues assumed by note
holder.




Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$ 110,000
$1,130,100
$(1,126,000)
$ 114,100
Depository Fund
Title 11 O.S., 35-107 & 17101 deposits for utility service
shall be refunded or credited
to the customer upon
termination of service.
Refund checks to be issued
within 30 days following
termination of service. No
interest is required to be paid
to customer. Interest earnings
transferred to the Mustang
Improvement Authority at
year-end.




Projected Beginning Balance
Projected Revenues
Projected Expenditures
Projected Ending Fund Balance
$
$
$(
$
3,000
120
3,000)
120