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City of San Marcos Compile Budget

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					                                 CITY OF SAN MARCOS
                                             2006-07 ANNUAL BUDGET


                                                      CITY COUNCIL

SUSAN NARVAIZ ........................................................................................................... MAYOR

ED MIHALKANIN. .......................................................................................................... PLACE 1

GAYLORD BOSE ............................................................................................................ PLACE 2

DANIEL GUERRERO ..................................................................................................... PLACE 3

CHRIS JONES …............................................................................................................... PLACE 4

JOHN DIAZ …….............................................................................................................. PLACE 5

JOHN THOMAIDES ………............................................................................................ PLACE 6



                                                APPOINTED OFFICIALS

DAN O’LEARY ................................................................................................. CITY MANAGER

MARK B. TAYLOR ........................................................................................ CITY ATTORNEY

JOHN P. BURKE, Jr. .................................................................... MUNICIPAL COURT JUDGE



                                      BUDGET DOCUMENT PREPARATION

COLLETTE JAMISON .......................................................... INTERIM FINANCE DIRECTOR




                                                                 1
2
The Government Finance Officers Association of the United States and Canada (GFOA) presented
an award for Distinguished Budget Presentation to the City of San Marcos, Texas for its annual
budget for the fiscal year beginning October 1, 2005.

In order to receive this award, a governmental unit must publish a budget document that meets
program criteria as a policy document, as an operations guide, as a financial plan and as a
communications device.

The award is valid for a period of one year only. We believe our current budget continues to
conform to program requirements, and we are submitting it to GFOA to determine its eligibility for
another award.


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                     CITY OF SAN MARCOS
                             2006-07 ANNUAL BUDGET

                                TABLE OF CONTENTS


INTRODUCTION

     Mission Statement                                          7
     Transmittal Letter                                         9
     Executive Summary                                         11
     Budget Policy Statement                                   44
     City of San Marcos Financial Policy                       51
     Reader’s Guide                                            71
     Organization Chart                                        82


BUDGET SUMMARY

     Consolidated Fund Balance Statement                       89
     Consolidated Summary of Major Revenues and Expenditures   90
     Consolidated Summary of Operating Transfers               92
     Consolidated Revenue Comparison                           94
     Consolidated Expense Comparison                           95
     Consolidated Fund Balance Comparison                      96
     Property Tax Valuation and Revenue                        97


GENERAL FUND

     General Fund                                               99


DEBT SERVICE FUND

     Debt Service Fund                                         225




                                           5
SPECIAL REVENUE FUNDS

      Hotel Occupancy Tax Fund                         236
      Municipal Court Technology Fund                  243
      Municipal Court Security Fee Fund                245
      Seized Assets Fund                               247
      Community Development Block Grant Program Fund   249
      Women, Infant And Children Program Fund          251
      Cemetery Operations Fund                         261


ENTERPRISE FUNDS

   Water/Wastewater Utility Fund                       267
   Drainage Utility Fund                               293
   Electric Utility Fund                               297
   Municipal Airport Fund                              327
   Solid Waste Collection Utility Fund                 333


PERMANENT FUNDS

   Cemetery Perpetual Care Trust Fund                  335


CAPITAL IMPROVEMENTS PROGRAM

  Executive Summary                                    337
  Project List                                         340


MISCELLANEOUS AND STATISTICAL

  Miscellaneous and Statistical                        349



GLOSSARY

  List of Acronyms                                     401
  Glossary of Terms                                    402



                                         6
  The Mission of the City of San Marcos

    The goals of the City Government are to create a strong
community, foster a high quality of life, promote neighborhood
integrity, support sound community and economic development,
conserve and protect the City’s natural resources and the
environment, and safeguard the health, safety and welfare of the
City’s residents.

                      – San Marcos City Charter




                               7
October 1, 2006


                  8
The Honorable Susan Narvaiz, Mayor
And Members of the City Council
San Marcos, Texas

Dear Mayor Narvaiz and Council Members:

I am pleased to submit the adopted budget of $117,511,498 for fiscal year 2007 for the City of San Marcos. The budget
offers a sound financial plan that provides the requested level of services and needed infrastructure projects for our
growing community.

In 2007, we will focus on economic development, infrastructure, and public service. We have exciting opportunities as
the hotel/conference center develops, as well as increased tourism, a downtown master plan, and new facilities at our
airport. Infrastructure projects are important priorities for San Marcos to support our expanding network of roads and
utilities. The Wonder World Drive extension, neighborhood improvements, drainage projects, water/wastewater and
electric projects are among investments we are making.

The City of San Marcos will also emphasize public service in areas of public safety, customer service, and quality of life
programs represented by parks, recreation, social services, animal services, and housing rehabilitation programs. We
propose implementing a market study on employee pay and step increases for civil service personnel.

The adopted 2007 budget maintains the property tax rate at $0.4702 per $100 valuation and keeps electric and water/
wastewater rates at the same level. The only rate increase in this budget is a 23.5% increase in the monthly drainage
utility fee. Revenue generated by this increase will fund badly needed drainage maintenance projects in San Marcos.

All of our operations have experienced dramatic increases in the costs of fuel and power generation caused by the
increasing price of oil internationally. This impacts operations of our vehicle fleet in all areas, and significantly increased
the projected cost of wholesale power we purchase from the Lower Colorado River Authority from $23.36 million to
$34.4 million, or 47.0%. The cost of purchased power is passed through to the customers; however it has a significant
impact on the total municipal budget and our fund balance requirements for the Electric Utility Fund.

Gains in our taxable property base and sales tax revenue are the result of an expanding local, state and national economy.
This budget approaches the renewed economic strength with prudence and conservatism. We have made careful revenue
estimates and maintain the budget well within our financial capacity.

Council has established economic development as a top priority and shown willingness to provide incentives for projects
that fit the community and generate needed jobs. Your commitment in using hotel/motel revenue to support the new
conference center project encourages tourism and promotion of San Marcos’ many retail and attraction venues. You
and the community stand together in your resolve to fund capital improvement and maintenance projects, as well as to
solve transportation issues today and in the future.

Through your guidance in the 2007 Budget Policy Statement, I, along with our dedicated staff, stand ready to implement
this budget which emphasizes thoughtful community development, improved infrastructure and excellent public service
for our residents.


Sincerely,



Daniel J. O’Leary
City Manager




                                                              9
                                            Summary of Changes to FY 2007 Budget Proposed on August 1, 2006

                                                                                                     Debt        Water/ WW      Cemetery        WIC                          Hotel
                                                                                                    Service        Utility      Operations    Program       Drainage      Occupancy
                                                                       Change No. General Fund       Fund           Fund          Fund          Fund       Utility Fund    Tax Fund
Original Proposed Fund Balance as of August 1, 2006                                  10,352,205      2,070,398     12,017,297           -            -               -          97,022

FY 2007 Expenditure Increases
Early Voting Locations                                                      1             29,000
Envision Central Texas                                                      2              5,000
Emergency Medical Services                                                  3             10,000
Central Fire Station (Debt Service Payment)                                 4                           81,068
LBJ Sidewalks / Hutchison Street Reconstruction (Debt Service Payment)      5                           77,581
Bundled Bike and Pedestrian Improvements (Debt Service Payment)             6                            8,717
Aquarena Springs Drive / IH-35 Turn Lane Improvements (Debt Service Paym    7                            3,487
River Ridge Entrance / Exit Ramps (Debt Service Payment)                    8                           21,793
Yarrington Road Improvements (Debt Service Payment)                         9                              872
McCarty Lane Improvements (Debt Service Payment)                           10                           18,306
Rio Vista Tennis Courts (Debt Service Payment)                             11                           20,049
Skate Park (Debt Service Payment)                                          12                           25,279
Cemetery Matching Funds                                                    13            15,000                                      15,000
Hopkins Street Sidewalk (Walgreens to H.E.B.)                              14            38,000
Animal Shelter Improvements (City Portion - 37.5%)                         15           350,000
Facility for One-Stop Shop                                                 16           300,000
Reserve for Economic Development Board                                     17           500,000
Sales Tax Rebate - Prime Visitor's Center                                  18                                                                                                  10,000
State Softball Tournaments                                                 19                                                                                                  10,000
Outlet Mall Advertising Program                                            20                                                                                                   6,863
Sights and Sounds                                                          21                                                                                                  24,100
Arts Resource Team                                                         22                                                                                                   4,000
Community Action                                                           23              5,000
Performing Arts Center Partnership                                         26                                                                                                  25,000
LBJ Museum Waterline                                                       27                                          30,000
Nutritionist Position                                                      28                                                                     49,749
Raw Water Delivery Charge Increase (10 cents to 11.5 cents)                29                                          28,755
Easter Seal Contract Agreement                                             30                                                                                    16,093

FY 2007 Expenditure Decreases
State Softball Tournaments                                                 19            (10,000)
Change Legal Department Overtime Expenses                                  25               (309)


FY 2007 Revenue Increases
Central Fire Station (Debt Service Payment)                                 4                           81,068
LBJ Sidewalks / Hutchison Street Reconstruction (Debt Service Payment)      5                           77,581
Bundled Bike and Pedestrian Improvements (Debt Service Payment)             6                            8,717
Aquarena Springs Drive / IH-35 Turn Lane Improvements (Debt Service Paym    7                            3,487
River Ridge Entrance / Exit Ramps (Debt Service Payment)                    8                           21,793
Yarrington Road Improvements (Debt Service Payment)                         9                              872
McCarty Lane Improvements (Debt Service Payment)                           10                           18,306
Rio Vista Tennis Courts (Debt Service Payment)                             11                           20,049
Skate Park (Debt Service Payment)                                          12                           25,279
Cemetery Matching Funds                                                    13                                                        15,000
Sales Tax Rebate - Prime Visitor's Center                                  18             10,000
Tax Roll Adjustment                                                        24             66,624
Nutrionist Position (State Reimbursement)                                  28              5,488                                                  49,749


FY 2007 Revenue Decreases
Central Fire Station (Debt Service Payment)                                 4            (81,068)
LBJ Sidewalks / Hutchison Street Reconstruction (Debt Service Payment)      5            (77,581)
Bundled Bike and Pedestrian Improvements (Debt Service Payment)             6             (8,717)
Aquarena Springs Drive / IH-35 Turn Lane Improvements (Debt Service Paym    7             (3,487)
River Ridge Entrance / Exit Ramps (Debt Service Payment)                    8            (21,793)
Yarrington Road Improvements (Debt Service Payment)                         9               (872)
McCarty Lane Improvements (Debt Service Payment)                           10            (18,306)
Rio Vista Tennis Courts (Debt Service Payment)                             11            (20,049)
Skate Park (Debt Service Payment)                                          12            (25,279)




Revised Fund Balance as of August 15, 2006                                             8,935,475     2,070,398     11,958,542           -            -           16,093        17,059



                                                                                     10
Executive Summary
The fiscal year 2007 adopted budget totals $117,511,498 and meets the highest standards in
budgeting as expected by the community and City Council. The budget represents a partnership
between City Council and staff responding to the Council’s vision for the community. The budget
contains financial summaries, missions, objectives, accomplishments, plans for achievement, and
program outlines that invoke our commitment to using best business practices in providing quality
services to our citizenry.

Staff used the City Council’s Budget Policy Statement as a guide for developing the adopted budget.
The Executive Summary explains the key choices and decisions made during the budget process to
meet the priorities and guidelines established by City Council.



Financial Policy
Property Tax Rate

We are pleased to report that the taxable property base increased by 9% to $2.04 billion. At the
recommendation of City Council, this budget maintains the tax rate at its current level of 47.02 cents
to support debt payments and operational costs in the General Fund. This tax rate also includes debt
repayments for voter-approved bond projects.

The increased taxable property base generates new property tax revenues that will finance the debt
payments for $11.2 million in certificates of obligation and general obligation bonds for various
projects in the coming fiscal year. These activities include the Wonder World Drive Extension,
Central Fire Station, North LBJ Street reconstruction project, various transportation projects and
repayment of the Rio Vista Falls costs to the Electric Utility.

Capital Outlay

During the City Council Budget Policy Workshop, Council directed staff to commit $900,000 in the
General Fund for replacement of vehicles and equipment. A portion ($400,000) is being funded
through issuance of C of Os. In the past, the City has cash funded the entire capital outlay amount.
However, in FY 2006, Council authorized a loan to John Q. Hammons (JQH) and utilized General
Fund (GF) monies to acquire 15 acres for the hotel/conference center project. The amount of
$500,000 was funded from the GF fund balance and the loan of $1.5 million is currently being
repaid by JQH.

The remaining $500,000 for equipment and vehicles will be cash financed. We are proposing to use
$111,000 in fund balance from the General Fund to purchase new Library books – this is an annual
on-going capital expenditure.

We are also proposing to use $281,000 of fund balance from the Water & Wastewater Utility and

                                                 11
$185,000 in the Electric Utility funds to replace aging equipment and vehicles in concert with your
Budget Policy Statement.

Capital Improvements Program – Certificate of Obligation Projects

In 2006, the City Council committed to funding $13.1 million in specific capital projects by selling
certificates of obligation over four fiscal years. The projects we have completed through this
program include purchase of a fire truck, parkland improvements, and transportation projects.

In the FY 2007 budget, we enter the second year of this program with the following projects slated
for $7.9 million in the sale of certificates of obligation. The unscheduled repair of Rio Vista Dam in
the last fiscal year was paid for on an emergency basis from utility fund balances. The sale of
certificates of obligation will reimburse the Electric Utility; as well as redirected funds used to fund
the Post Road Improvement Project.



                                     Certificate of Obligation Projects

           Project List                        FY 2007      FY 2008       FY 2009       Total

           Parks and Public Buildings
            ADA Building Renovations             440,000                                440,000
            Parkland Improvements                200,000       24,000      200,000      424,000
            Habitat Conservation Plan
            Implementation                       210,000                   210,000       420,000
            Rio Vista Dam repair refunding     1,102,966                              1,102,966

           Public Safety
            Replace Engine at Academy
            Station                                           440,000                   440,000

           Streets
            Transportation Improvement
            Participation                        250,000      250,000      250,000       750,000
            North LBJ (Sessom to Holland)        250,000                                 250,000
            Wonder World Drive Widening          900,000                                 900,000
            Wonder World Drive Extension       4,150,000                               4,150,000
            Craddock Avenue Extension                         300,000     1,812,000    2,112,000

           Capital Outlay                        400,000                                 400,000
           Total Projects                      7,902,966    1,014,000     2,472,000   11,388,966




                                                    12
Capital Improvements Program – General Obligation Projects

In November 2005, San Marcos voters approved $11.2 million in General Obligation Bond projects.
In the Budget Policy Statement, Council asked staff to strive to absorb the new debt payments within
anticipated revenues without a property tax increase. This budget achieves this directive. The
following table shows the dollar value of the projects approved by voters and the potential tax
increase associated with debt repayments.


                                       General Obligation Projects
                                                                                 Estimated
                                                                                 Tax Rate
            Project List                                      Project Cost        Increase

            Parks and Public Buildings
             Greenspace Acquisition                                  2,000,000        0.0094

            Public Safety
             Central Fire Station Relocation                         2,965,000        0.0140

            Streets
              Sessom Drive Reconstruction                              775,000        0.0037
              Thorpe & Hopkins Improvements                          1,325,000        0.0062
              Loop 82 Railroad Overpass & Post Road
              Realignment                                             880,000         0.0042
              Miscellaneous Intersection Improvements                 150,000         0.0007
              Donaldson Street/ Transit Center U-Turn
              Improvements                                            200,000         0.0009
              Victory Gardens Street Reconstruction                   820,000         0.0039
              LBJ Sidewalk & Hutchison Street
              Reconstruction                                           880,000        0.0042
              Bundled Bike and Pedestrian Improvements               1,185,000        0.0056

            Total Projects                                       11,180,000           0.0528



City Council approved $1.9 million of GO bond projects for the 2007 fiscal year. They include
$915,000 for Central Fire Station relocation, $880,000 for street and sidewalk improvements at LBJ
and Hutchison, and $100,000 for bike and pedestrian improvements.

In addition, Council approved the Planning & Zoning Commission recommended projects totaling
$497,950 for specific road improvements, including $37,950 for Aquarena Springs-IH 35 turn-
around; $250,000 for River Ridge exit/entry ramps; $10,000 for Yarrington Road improvements, and
$200,000 for McCarty Lane improvements.

Debt Service in the General Fund including Council-Committed Certificates of Obligation, voter-
approved General Obligation, P&Z recommended CIP projects, as well as $350,000 for the
expansion of the Animal Shelter totaling $ 11.2 million.

Fund Balances

                                                   13
In the Budget Policy Statement, the City Council requested that all three major funds (General Fund,
Water/ Wastewater Utility and Electric Utility) meet a fund balance level of 25% as specified by the
City of San Marcos’s Financial Policy adopted by the Council. This goal was established to provide
a minimum of three months operating capital for each of the major funds. Staff has met this goal in
the adopted budget.

Water/ Wastewater Fund

In the past three fiscal years, the City Council adopted water and wastewater utility rate increases of
15%, 10%, and 10% respectively. No rate increases are recommended in the 2007 fiscal year
adopted budget.

We propose to undertake $ 46.9 million in system improvement projects through cash and debt
financing over the next five fiscal years. We anticipate more rate increases will be needed in the
future to fund the construction of a new wastewater treatment plant. This budget includes $ 10.4
million of the $ 46.9 million in projects this year. As recommended Council funded $1.0 million of
fund balance and plans to issue revenue bonds for the remaining $9.4 million. The financial strength
of the Water/ Wastewater Utility Fund is evident as this is the second time that we are able to “cash
fund” system improvement projects of this magnitude.

Staff is proposing to increase the cost allocation reimbursement from the Water/ Wastewater Utility
Fund to the Electric Utility Fund. The cost allocation reimbursement will increase from $350,000 to
$750,000 in fiscal year 2007. The cost allocation reimbursement is used to recoup a proportional
amount of the cost for the Meter Reading and Utility Billing Departments which are expensed within
the Electric Utility Fund. The fiscal year 2007 cost for both departments is $1,513,949.

Staff is planning to implement winter averaging for wastewater customers in Spring 2007.

Electric Utility Fund

In the last two fiscal years, Council approved two rate increases of 10% and 2% respectively. Prior
to February 2005, electric utility rates had not been increased since 1993. No rate increase was
adopted for FY 2007.

The Electric Utility has been impacted by the significant increase in the cost of fuel for power
generation from our wholesale power provider, the Lower Colorado River Authority. In the past, the
franchise fee paid by the Electric Utility to the General Fund for use of rights-of-way was assessed
on all electric sales revenues, as well as the pass-through costs of purchased power. In 2006, Council
directed that the 9% franchise fee on power costs will not be assessed to the utility. In 2005,
Council decreased the Electric Utility franchise fee paid to the General Fund from 10% to 9%. Staff
recommends continuing the franchise fee amount at this level.


In Council’s Budget Policy Statement you asked staff to allocate $200,000 in capital outlay for the
replacement of equipment and vehicles. This budget contains $185,000 for capital outlay.

                                                  14
Drainage Utility Fund

The proposed 2007 budget contains an overall 23.5% increase in drainage utility fees for all rate
classifications to support an expanded maintenance program, as directed by City Council in the
Budget Policy Statement. Drainage projects for the 2007 fiscal year total $1.9 million in the CIP.

The following chart shows the increase in drainage utility fees proposed for each customer class.

Customer Class                                  Current Monthly          Proposed Monthly           Proposed Monthly Increase
                                                    Charge                    Charge
Residential-Small Lot                                            2.00                       2.47                             0.47
(0-6,000 Sq Ft)
Residential-Average Lot                                          3.21                       3.96                             0.75
(6,001-12,000 Sq Ft)
Residential-Large Lot                                            3.67                       4.53                             0.86
(Greater than 12,000 Sq Ft)
Multi-family-Small Lot*                                2.00 per Unit               2.47 per Unit                     0.47 per Unit
 Average Monthly Charge (Based on 40 units)        40 units x 2.00 =     40 units x 2.47 = 98.80    Average Monthly Increase 18.80
                                                               80.00
Multi-family -Average Lot*                             3.21 per Unit               3.96 per Unit                     0.75 per Unit
 Average Monthly Charge (Based on 19 units)   19 units x 3.21= 60.99     19 units x 3.96 = 75.32    Average Monthly Increase 14.33
Multi-family -Large Lot*                                3.67 per Unit              4.53 per Unit                     0.86 per Unit
 Average Monthly Charge (Based on 2 units)    2 units ft x 3.67 = 7.34      2 units x 4.53 = 9.06   Average Monthly Increase 1.72
Commercial                                             3.21 per ERU               3.96 per ERU                      0.75 per ERU


*Based on average Multi-Family charge.
    •     Most apartment complexes fall within the multi-family -Small Lot category and are billed for an average of 40 Units.
         Only two apartments are categorized as multi-family Large Lot and have an average of two unit
    •    Multi-Family Charge Calculation: Total square footage of the lot divided by the number of apartments (unit) equals
         the square footage of the complex. Square footage is multiplied by the appropriate charge per unit (rate based on the
         square footage) equals the monthly charge.
    •    2,250 sq. ft. = 1 Equivalent Residential Unit (ERU)



Sales Tax Revenue Estimate

The City’s adopted Financial Policy utilizes conservative forecast guidelines for projecting
budgetary sales tax estimates. The following illustration shows the actual percentage increase for the
most recently completed fiscal year (2005).

                                        FY 2004               FY 2005         Percentage
                                         Actual                Actual          Increase
                                       $13,392,833           $14,037,501              4.8 %

The 4.8% increase from fiscal year 2004 to fiscal year 2005 is the highest percentage estimate that
staff is allowed to use for fiscal year 2007 in accordance with the Financial Policy.

In keeping with our conservative budgeting approach, we use the lower estimate (3.0%) designated
by the Council Budget Policy based on the estimated (not actual) sales tax revenue from the
previous fiscal year, as illustrated below.

                                                                 15
                              FY 2006         FY 2007        Percentage
                              Estimated       Estimated       Increase
                              $13,932,564     $14,350,540          3.0 %


During FY 2006, City Council approved an incentive agreement with San Marcos Factory Shops,
Ltd. to rebate a total of $ 3 million in sales taxes over a period of seven years. We anticipate the
rebate for the 2006 calendar year will be approximately $ 720,000.

Sales taxes represent 44.8% of the total General Fund revenues, the greatest single source of revenue
for the General Fund. Any excess collection above the fiscal year 2006 estimate will go directly into
General Fund balance.

Major Policy Issues
Compensation Program

In the Budget Policy Statement, the City Council directed staff to conduct a biennial market study to
survey selected civil service and non-civil service positions in approximately 50 Texas cities
comparable to San Marcos in size or competitive market. As a result of the study, this budget
includes adjustments in pay grades, a merit program and step increases.

For Civil Service employees, Council adopted a market adjustment of 4% plus step increases for
eligible police and fire employees. The study found that our Civil Service positions are highly
competitive in the market.

For non-Civil Service personnel, Council adopted a 3.5% across-the-board pay increase, plus a merit
program based on performance appraisal ratings. The study found that 57% of our non-Civil Service
positions are below market. The plan contains provisions to reclassify some positions to better align
them in the market and pay increases for long-term employees whose salaries are below market.




The following chart shows the cost of the compensation program by fund.

                                 COMPENSATION COST BY FUND



                                                 16
                        General Fund                               $ 1,275,617
                        Water/ Wastewater                              194,736
                        Electric Utility                               197,748
                        WIC                                             83,063
                        TOTAL                                      $ 1,751,164

New Personnel

In the proposed 2007 budget, staff is requesting new personnel to address service level issues. The
new positions and related salary and benefit costs are as follows:

                                         Position                       Salary & Benefit Cost
                GENERAL FUND
                Animal Shelter Technician                                         $ 26,514
                Animal Shelter Technician                                           26,514
                Animal Shelter Technician (part-time)                                8,877
                Senior Engineer                                                     86,723
                Engineering Inspector II                                            68,773
                Public Works Receptionist/ Clerk (part-time)                        16,957
                Park Ranger Supervisor                                              51,632
                                                               TOTAL             $ 285,990
                WATER/WASTEWATER
                Utility Crew Leader                                               $ 46,033
                I/C Technician                                                      50,551
                Equipment Operator I                                                33,101
                Equipment Operator I                                                33,101
                                                               TOTAL             $ 162,786
                SPECIAL REVENUE FUNDS
                WIC Certification Specialist                                      $ 32,670
                WIC Lactation Peer Counselor                                        28,601
                                                               TOTAL              $ 61,271


Greenspace

In response to City Council’s request during the budget policy statement workshop, the proposed
budget contains a $5,000 appropriation for acquiring and developing greenspace.
External Programs
Hotel Occupancy Tax Fund

                                                    17
The City Council discussed the Hotel Occupancy Tax Fund during the Budget Policy workshop. The
Council reduced the percentage allocation for each program to increase funding for the future
conference center line item. In order to increase the percentage for the conference center project, we
have capped the allocation at 10% over the 2007 anticipated revenue for each program funded by the
Hotel/ Motel Fund.

The proposed change to the hotel occupancy tax revenue distribution is as follows:

                                                                       Distribution
                                                                  Current       Proposed
         Convention & Visitors Bureau                              55.0 %          45.0%
         Arts Commission                                            5.5 %           4.5%
         Main Street Program                                       18.5 %          15.5%
         Hispanic Chamber of Commerce                               6.0 %           5.5%
         Outlet Mall Cooperative Advertising Program                3.5 %           3.5%
         Council Tourism Account                                    1.0 %           1.0%
         Future Conference Center                                   7.0 %          21.5%
         Branding/ Marketing San Marcos                             3.5%            3.5%

         Total                                                    100.0 %         100.0 %

Social Services

City Council adopted social service program funding for fiscal year 2007 at $400,000. City Council
also approved the funding of $ 5,000 towards the future construction of a youth center.

The Human Services Advisory Board (HSAB) is tasked with the developing a recommendation for
distributing the social service program allotment to the various social service agencies operating
within San Marcos.

Community Development Block Grant (CDBG) Funding

The City Council previously discussed allocating the CDBG allocation at a special workshop in
April. The allocation for the $531,284 grant is shown within the CDBG Program Fund section of the
adopted budget.

Miscellaneous Issues

The adopted budget continues a $49,500 allocation for participating in the Commuter Rail Program
for the second year. It also contains an allocation of $250,000, for the Hays County – San Marcos
Emergency Medical Service, an increase of $10,000.

The Council requested that staff continue to fund Economic Development from the Electric Utility.
Last year, Council amended the contract with Global Marketeering Group to include benefits for the
Economic Development Director. The contract is funded in this budget at $244,795. Council also

                                                 18
dedicated $500,000 for economic development incentives as recommended by the Economic
Development Board.

Budget Overview
The proposed budget of $ 117,511,498 is an increase of $ 15,640,609 (15.4%) above the previously
approved FY 2006 budget. The increase is largely attributed to a dramatic—47%—increase in the
cost of purchased power in the Electric Utility Fund. This expense rose by $10.9 million due to sharp
increases in the cost of fuel for power generation. Power costs are passed through to the customers
through the fuel cost adjustment. A corresponding increase in electric revenues is shown in the
proposed budget.


                     Proposed 2006-07 Budget Expense Comparison
                                      2006              2007
                                     Original         Proposed                     Percent
                                     Budget            Budget      Dollar Change   Change
          General Fund              29,816,854        34,019,699    4,202,845      14.10     %
          Debt Service Fund          5,274,729         6,009,197      734,468      13.92
          Special Revenue Funds      3,169,721         3,654,971      485,250      15.31
          Enterprise Funds              26,400            43,800       17,400      65.91
          Permanent Funds           63,583,185        73,783,830   10,200,645      16.04
          Total                    101,870,889    117,511,498      15,640,609      15.35     %




Significant new expenses within the proposed budget include:


   Increased Purchased Power Costs over 2006 - Electric Utility                    $10,998,839


                                                 19
   General Fund Market/Merit/Step/ COLA adjustment                                $ 1,275,617
   Water/ Wastewater Market/Merit/Step/ COLA adjustment                             $194,736
   Electric Utility Market/Merit/Step/ COLA adjustment                              $197,748
   WIC Market/Merit/Step/ COLA adjustment                                            $ 83,063
   New General Fund positions                                                       $ 285,990
   New Water/ Wastewater positions                                                  $ 162,786
   Water/ Wastewater Utility cash funded system improvements                      $ 1,030,000
   Water/ Wastewater Utility Fund capital outlay spending                           $ 281,000
   Electric Utility Fund capital outlay spending                                     $185,000
   Debt service payments related to General Fund CIP                                $ 987,636
   Debt service payments related to Water/ Wastewater System projects              $ 832,474
   Drainage Utility system improvements debt service                                    $ 97,630



Fund Balances
A healthy fund balance represents sound fiscal management and measures our capacity to sustain
current and future operations. Overall, the proposed budget will bring our fund balances to a total
$36.3 million, or 30.9% of total expenses. The proposed budget continues our commitment of
maintaining appropriate fund balances while meeting City Council priorities. These fund balances
can be used toward:

   -   One-time emergency expenses
   -   Counter-cyclical reserves to minimize the effects of an economic downturn
   -   Ensuring financial security in the event of a disaster
   -   Bond rating and creditworthy assessments
   -   Other one-time expenses such as economic development incentives




              2006/2007 Annual Budget Fund Balance Summary

                                Actual        Approved        Revised        Proposed
                               2004-05        2005-06         2005-06        2006-07
 Beginning Fund Balance       31,513,370      39,676,574     37,488,797     36,294,082


                                                20
 Total Revenues               103,447,243       93,646,146      107,348,786        117,551,028
 Total Funds Available        134,960,613      133,322,719      144,837,583        153,845,110
 Total Expenses                97,471,817      101,870,889      108,543,501        117,511,498
 Ending Fund Balance           37,488,797       31,451,830        36,294,082         36,333,612
 Percentage                         38.46%           30.87%             33.44%              30.92%




The General Fund
The General Fund is the primary operating fund for the City. It is viewed as the general government
fund and accounts for a vast number of financial resources, except for resources required to be
accounted for in other funds.

Revenues
Revenue forecasting is a complex and difficult task that involves collecting historical data,
researching economic data, and formulating forecasting assumptions. At a minimum, ten years of
historical data are compiled and analyzed as part of the forecasting procedure. Qualitative and
quantitative forecasting techniques such as naive revenue forecasting, consensus forecasting, expert
forecasting and trend analysis are utilized when preparing revenue estimates. In some cases, more
than one technique is used to predict revenues for the next fiscal year. Expert forecasting is perhaps
the most useful technique because it relies on extensive technical knowledge of the economic
activity that generates the revenue and is sensitive to changes in the national, regional, and local
economies. This method is quite useful for the City because a majority of our sales tax base is
generated through retail sales from the Prime and Tanger Outlet Malls. The General Fund receives
revenues from a variety of sources, including taxes, licenses and permits, fines and penalties,
revenues from cash and properties, other agencies, service fees, and transfers for indirect costs.
Revenue projections are based on a variety of factors such as the economy, historical collections,
known changes that will occur, and growth factors. In all events, conservative estimates are used.




              2006/2007 Annual Budget General Fund Revenue Summary

                                               Actual         Revised           Proposed       Percent
                                              2004-05         2005-06           2006-07        of Total
 Ad Valorem Tax                               3,775,462       3,521,372         3,581,162       11.18%
 Sales Tax                                   14,037,501      13,932,564        14,350,541       44.80%

                                                   21
 Franchise Fees - City                       5,426,082     5,302,769      5,373,390      16.77%
 Franchise Fees - Other                       683,984        717,085        729,427       2.28%
 Other Taxes                                  305,187        313,778        329,600       1.03%
 Licenses and Permits                         854,818        825,051        830,836       2.59%
 Fines and Penalties                         1,197,796     1,245,900      1,211,363       3.78%
 Interest Income                              334,514        447,696        490,152       1.53%
 Cultural and Recreational                    690,366        664,301        672,914       2.10%
 Other Agencies                               127,234        151,736        229,777       0.72%
 Current Services                             124,550        134,690        167,740       0.52%
 Other Revenue                                211,781      1,240,385        141,418       0.44%
 Prior Period Adjustment                        6,603             -              -        0.00%
 Reimbursements from Other Funds             3,708,291     3,824,143      3,924,071      12.25%
 Total                                     31,484,168     32,321,470     32,032,391     100.00%



Ad Valorem Tax

In the proposed budget, property taxes represent 11.2% of total General Fund revenue. Property
taxes are based on the assessed value of land, buildings and structures in the City as appraised by the
Hays County Appraisal District. Certified assessed values in San Marcos are reported at
$2,039,634,021 an increase of 9.0% above the previous tax year assessed values. A 98.0% current
tax collection rate and a 2.0% delinquent tax collection rate are assumed for the proposed budget.
Revenue forecasting techniques are not used with the ad valorem tax, as the revenue is relatively
simple to calculate. The calculation for ad valorem tax revenue is based on the certified assessed
value using the proposed tax rate.

The property tax rate for 2007 was adopted at the same rate as FY 2006 at $0.4702 per $100 of
assessed value. The operations and maintenance tax rate, $0.1756, will pay operations and
maintenance (O&M) costs in the General Fund, producing revenues of $3,581,162. The O&M rate is
0.012 cents lower than last year’s O&M rate. The debt service rate, $0.2946, is allocated to repay
general obligation debt in the Debt Service Fund. The debt service will generate $6,009,197 to pay
long-term debt. One-cent of the property tax rate will generate $203,963 in revenue.

Property taxes represent a relatively stable source of revenue for the City. In general, property tax
revenues tend to increase and are not subject to dramatic shifts in the economy. The City’s property
tax base has grown consistently for fifteen years.

         10-Year Appraisal Roll History (Property Tax Year)

                    2,000
                    1,800
                    1,600
                    1,400
                    1,200
         Millions




                                                  22
                    1,000
                     800
                     600
Sales Taxes

Sales taxes represent 44.80% of total General Fund revenue projected for fiscal year 2007. Sales tax
receipts are the largest single revenue source supporting general governmental services in San
Marcos.

Consistent retail sales have kept this revenue stream steady for the past several years. It is important
to note that sales tax revenues are a volatile funding source and are subject to shifts in local, state
and national economies. Our reliance on this revenue source is approached with caution.

We have taken a very conservative approach and have estimated a 3% increase in sales tax revenue
for the next fiscal year. Although sales taxes have increased by 4.8% for fiscal year 2005 and will
likely exceed our fiscal year 2006 estimates also, we are adamant in using a much lower estimate.
Any collections in excess of our estimate will go directly into fund balance.
The City of San Marcos collects one and one-half cents on every dollar spent on taxable goods and
services within the City limits. The State of Texas allows home rule cities like San Marcos to adopt
a one-cent sales tax to support general governmental services. Local voters authorized another half-
cent in 1987 dedicated solely to the reduction of property taxes. The one and one half cents
collected by the City represents the maximum we may adopt.




                            10-Year Sales Tax Collection History
                                                  Annual        Percentage
                               Fiscal Year       Collection      Increase
                                  1998              9,209,609     16.6    %
                                  1999              9,647,177       4.8
                                  2000             11,185,219     15.9
                                  2001             12,117,880       8.3
                                  2002             12,106,868     - 0.1
                                  2003             12,423,794       2.6

                                                  23
                                 2004             13,392,833       7.8
                                 2005             14,037,500       4.8
                            2006 (estimated)      13,932,564       3.0
                            2007 (estimated)      14,350,541       3.0   %



The half-cent sales tax alone is expected to generate $5,176,194 in the next fiscal year, a sum that is
equivalent to 25.38 cents on the property tax rate. Without the half-cent sales tax dedicated to
property tax reduction, the City’s ad valorem tax rate would have to be 25.38 cents more, or 72.40
cents per $100 of assessed value, to support the programs and services provided to San Marcos
residents. Sales tax revenues, much of it generated by tourists and non-residents, represent
significant savings to property taxpayers in San Marcos. Sales taxes are a primary source of funds
for many vital services ranging from police and fire protection, to parks and recreation, library,
environmental services, planning, and much more. The reliance on sales tax revenues requires
vigilant monitoring of our revenue sources to assure they will keep pace with the demands and the
rising costs of operating a complex municipal government.

Another important consideration for sales tax revenues is the Chapter 380 economic development
agreement with San Marcos Factory Stores Ltd. for the expansion at Prime Outlets. The City has
agreed to rebate up to $3 million in sales taxes over seven years to San Marcos Factory Shops for
their renovation and expansion. For the 2007 Fiscal Year, this rebate is expected to be $720,000.
Any future sales tax revenue projections should take into account this agreement.

Franchise Fees

The General Fund receives revenues from franchise fees paid by public and private utilities which
use City streets, alleys and rights-of-way for their utility lines and mains. Franchise revenues are
budgeted at $6.10 million, or 19.05% of total General Fund revenues. The majority of this revenue
source, $5.4 million, is generated through electric, water and wastewater utility franchise fees paid
from City-owned utilities. The City of San Marcos assesses a 9% franchise fee on gross water and
wastewater utility and electric utility revenues billed.

The remaining portion of franchise fees, $729,427, is collected from telephone, cable and gas utility
companies operating within the jurisdictional limits of the City. These smaller franchise fees are
estimated through the naive forecasting technique. This conventional technique assumes that historic
collections will remain constant and that the revenue source is stable.
Licenses and Permits

Licenses and permits represent the various fees collected for such activities as construction,
plumbing, electrical, development and food service operation. Various permits such as building,
mechanical, plumbing, zoning, site development, food handler, moving and alarm permits are
required for business operation. These monies are used to fund the operating costs of functions
associated with enforcing codes and building regulations.

The following table depicts building permit growth over the last ten years. It should be noted that
fiscal year 1999 contained a one-time $350 million market value building permit for the construction

                                                  24
of an electric power generating facility.

                           10-Year Building Permit History
                                              Building
                                            Permit Market       Percentage
                           Fiscal Year         Value        Increase/Decrease

                           1996                39,870,255       - 22.10    %
                           1997                72,620,722         82.14
                           1998                47,044,284       - 35.22
                           1999               406,214,136       863.47
                           2000               117,803,867       - 71.00
                           2001                54,655,091        -53.61
                           2002               132,093,418       241.69
                           2003                58,754,322        -55.50
                           2004                68,357,560          16.3    %
                           2005               129,492,718          89.4



The fiscal year 2007 estimated revenue from licenses and permits is $830,836, or 2.59% of total
General Fund revenues. This amount represents a slight increase from the previous proposed budget
and reflects a conservative estimate of the commercial and residential development occurring within
the City. Projections are based on expert judgment of development trends in the area.

Fines and Penalties

Revenues from fines and penalties for fiscal year 2007 are estimated at $1,211,363, or 3.78% of total
General Fund revenues. We have started to aggressively pursue outstanding fines owed to the City.
In the 2006 Fiscal Year, the municipal judge, directors and staff are reviewing window fines to
determine their adequacy. We have updated our database of defendant addresses and have initiated
mailing notices of outstanding warrants. In addition, we again participated in the regional warrant
round-up in March. Eighteen regional courts participate in the warrant round-up which gains
tremendous media coverage leading to the actual round-up. In 2006, a Deputy Marshal position was
added to improve the professionalism of the court operations and to further increase our collection
rate.
Interest Income

Total revenues from interest for fiscal year 2007 are estimated at $490,152 or 1.53% of total General
Fund revenues. Anticipated interest earnings are based on the consecutive increases to the overnight
funds rate over the last 12 months. The current rate of return is approximately 4.5% - up from 3.0%
last fiscal year.

Cultural and Recreational

Total revenues from cultural and recreational services for fiscal year 2007 are estimated at $672,914
or 2.10% of total General Fund revenues. Cultural and recreational revenue sources include library

                                                    25
fees, and other various fees and service charges from Parks and Recreation programs and Activity
Center usage fees. The program fees and service charges are dependent upon usage of City facilities
and program attendance. The City operates a wide variety of recreational programs throughout the
year. The City has entered into revenue participation contracts with fitness service providers that
give the City 30% of gross revenues from various fitness courses taught at the Activity Center.

Revenue from Other Agencies

Revenue from other agencies includes reimbursements from other governmental agencies for various
services performed by the City. These services include providing security officers at the local school
district and habitat conservation research. Total revenue for fiscal year 2007 is estimated at
$229,777, or 0.72% of total General Fund revenues. The City and the school district are parties to a
contract that calls for the school district to reimburse the City for 50% of the annual salaries and
benefit costs for providing four uniformed officers within the school system. Another significant
portion of this revenue source is a reimbursement received from Texas State University-San Marcos.
The university reimburses the City 50% of the cost of salary and benefits for our Habitat
Conservation position.

Charges for Current Services

Total revenue from current services is estimated at $167,740 for fiscal year 2007. Revenues within
this category include animal shelter charges, birth and death certificate fees, passport fees, and
various fees assessed through the Police Department such as accident report fees. Revenue
projections are based on historical collection data. The data indicate a general increasing trend for
current service revenues.

Other Revenues

The General Fund receives revenues from a variety of other sources that do not meet the
classification requirements of other categories. These revenues include sales of maps and ordinance
copies, insufficient funds service charges, and sales tax discounts. These revenue sources are
projected at $141,418 for the next fiscal year. Revenue assumptions for this category are based on
historical collection data.

Reimbursements from Other Funds and Operating Transfers

The General Fund bears the costs for administrative services such as legal, human resources,
purchasing, finance, administration, computer services, clerical and building and equipment usage.
These costs are reviewed and calculated annually by an independent firm, which then recommends
the reimbursements assigned to each fund. Reimbursements from other funds represent $3.92
million, or 12.254% of total General Fund revenues.

Expenditures
The General Fund is the primary operating fund for city government. Thirteen of 16 departments


                                                 26
receive funding from the General Fund. Several internal service departments, including
Administration, Legal, City Clerk, Environment & Engineering, Finance, Human Resources, and
Information Technology, have costs allocated among the General Fund, Enterprise Funds and
Special Revenue Funds, reflecting the cost of providing these services. Total General Fund
expenditures for fiscal year 2007 are budgeted at $34,019,699, a 14.10% increase from previously
adopted budget. General Fund departments include:

   -   General Government (Administration, City Clerk, and Legal)
   -   Human Resources
   -   Finance (Finance Administration and Municipal Court)
   -   Planning and Development (Planning and Building Inspections)
   -   Environment and Engineering
   -   Fire Services
   -   Police Services (Administration and Operations)
   -   Community Services (Code Enforcement, Environmental Health, Animal Services, Library,
       Parks and Recreation, Activity Center, Grounds and Maintenance, PARD Contracts and Park
       Rangers)
   -   Public Works (Administration, Traffic Control, Streets, and Equipment Services)
   -   General Services (Information Technology, Social Services, and Special Services)




                Proposed 2006-07 General Fund Expenditure Summary
                                       Actual         Revised      Proposed     Percent of
                                      2004-05         2005-06      2006-07        Total
       General Government            1,675,921        2,104,500   2,178,698       6.40   %
       Human Resources                 745,160          748,872     737,698       2.17
       Finance                       2,318,437        2,903,089   2,911,758       8.56
       Planning                        823,188        1,023,744   1,022,382       3.01
       Engineering                     912,773          936,982   1,201,550       3.53
       Fire                          3,526,776        3,586,684   3,668,627      10.78
       Police                        8,359,615        8,438,344   8,658,879      25.45
       Public Works                  2,450,821        2,095,291   2,281,667       6.71
       Community Services            4,890,695        5,190,764   5,508,921      16.19
       General Services              5,799,268        4,349,718   5,849,519      17.19

                                                 27
       Total                          31,502,655        31,377,987   34,019,699     100.00   %




                Proposed 2006-07 General Fund Expenditure Summary
                                         Actual          Revised      Proposed      Percent of
                                        2004-05          2005-06      2006-07         Total
       Personnel Services             20,324,851        22,051,233   23,963,813      70.44   %
       Contracted Services             3,172,538         3,779,447    3,788,665      11.14
       Materials and Supplies          2,086,645         1,781,332    2,122,489       6.24
       Other Charges                     877,017         1,281,508    1,341,623       3.94
       Social Services                   381,186           400,000      405,000       1.19
       Operating Transfers               215,775           341,354      388,770       1.14
       Capital Outlay                  1,062,197           111,000      790,000       2.32
       One-Time Operating Transfers    1,207,245         1,632,113    1,219,340       3.58
       Econ. Development Incentives    2,175,200                -            -        0.00
       Prior Period Adjustments               -                 -            -        0.00
       Total                          31,502,655        31,377,987   34,019,699     100.00   %



Fund Balance
Each fund maintains a fund balance that is available to cover operating expenses in the event of
revenue shortfalls or other unforeseen events. The anticipated General Fund balance at the end of
fiscal year 2007 is $8,904,965 or 27.80% of expenditures. This large fund balance represents our
commitment to using best business practices and conservative revenue estimates.




The Debt Service Fund
The Debt Service Fund is used to account for the debt service portion of property tax revenues
received. Debt service taxes are specifically assessed for the payment of general long-term debt
principal and interest. The use of a separate fund ensures that debt service tax revenues are not
commingled with other revenues and not used for any purpose other than debt repayment. Debt
limits regarding general obligation debt can be found within the City’s Financial Policy.

Revenues and Expenditures

Ad valorem (property) taxes provide the main revenue source for the Debt Service Fund. Of the
total anticipated property tax collections, 62.65% of the revenue is allocated to debt service, while
the remaining portion of 37.34% pays for O&M. Notably, a greater percentage of property tax

                                                   28
revenue is spent on debt payments than on O&M.

In the new fiscal year, $0.2946 of the $0.4702 property tax rate is dedicated to debt repayment.
Principal and interest payments are budgeted at $6,009,197. The City’s total General Obligation
outstanding principal debt is $40,415,000 as of September 30, 2006, including voter-authorized bond
programs in elections held in 1998, and bond refinancing in 1995. Maturity dates for individual bond
issues are scheduled annually through 2025.

       20-Year Principal and Interest Payment Schedule

                    20
                    18
                    16
                    14
         Millions




                    12
                    10
                     8
                     6
                     4
                     2
                     0
                         FY 2007-10   FY 2011-15        FY 2016-20      FY 2021-25

                                          Principal     Interest




The types of projects financed through long-term general obligation debt include major street, public
safety facilities and equipment, library, parks and recreational facilities. Debt payments for revenue
bonds which finance water, wastewater, electric and drainage projects are repaid separately through
those respective enterprise funds.
Special Revenue Funds
Special revenue funds are used to account for the proceeds of certain specific revenue sources that
are legally restricted to expenditures for specified purposes. The City utilizes this type of fund to
account for revenues such as hotel occupancy tax, grants, special fines authorized by the State, and
forfeiture revenue from seized assets.

Hotel Occupancy Tax Fund
The Hotel Occupancy Tax Fund is used to account for a local bed tax of 7%. Tax monies collected
are used for tourist development activities in accordance with State law.

Revenues

                                                   29
A 7% occupancy tax is charged to occupants of rooms rented from hotels, motels and inns located in
the City. The tax is collected by owners of each facility and is remitted to the City at the end of each
fiscal quarter. Anticipated occupancy tax revenues are budgeted at $1,232,491, a 1.0% increase
compared to revised fiscal year 2006 estimates. Revenue projections are based on historical
collection data and assume that tourism and hotel occupancy within the City will increase slightly
next year.

        10-Year Hotel Occupancy Tax Collection History (Fiscal Year)
          1,400,000

          1,200,000

          1,000,000

            800,000

            600,000

            400,000

            200,000

                   0
                       1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
                                                                             Estimates




Expenditures

The Hotel Occupancy Tax Fund supports tourist development activities, downtown revitalization
and the arts. The following table depicts the revenue distribution made from hotel occupancy taxes.
The budgets for the Main Street Program and the Council Tourism Account are not adjusted for
increases in Hotel Occupancy Tax revenues as are other categories.

                                                  Fiscal Year 2006             Fiscal Year 2007
                   Program                     Percentage Revenue           Percentage Revenue
 Convention & Visitors Bureau                      55.0 %         510,982       45.0 %         554,621
 Arts Commission                                    5.5 %          51,098        4.5 %          55,462
 Main Street Program                               18.5 %         171,876       15.5 %         191,036
 Hispanic Chamber of Commerce                       6.0 %          55,743        5.5 %          67,787

                                                  30
 Outlet Mall Advertising Program                   3.5 %         50,000        3.5 %         50,000
 Council Tourism Account                           1.0 %           9,291       1.0 %         12,325
 Future Conference Center                          7.0 %         65,034       21.5 %        264,986
 Branding/Marketing Program                       3.5%           32,517        3.5 %         43,137
                                        TOTAL     100%         $ 946,541       100%        1,239,354
 One-Time Expenses
 Sights & Sounds                                                   4,100                     24,100
 Summerfest Tourism Fireworks                                                                10,000
 Arts Resource Team                                                                           4,000
 Sale Tax Rebate – Prime Visitor’s Center                                                    10,000
 State Softball Tournaments                                                                  10,000
 Performing Arts Center Partnership                                                          25,000
 Other Contracted Services                                      100,000                          -0-
                                        TOTAL                  $ 104,100     100.0 %        $ 83,100



Municipal Court Technology Fund
This fund was established in fiscal year 2000 to provide budgeting and accountability for revenues
collected from of a technology fee assessed through the municipal court system. The Texas
Legislature established the fee in its 1999 legislative session to provide a funding source to local
municipal courts for future technological enhancements to their respective court systems. The
enhancements may include computer systems, network systems, software, imaging systems,
electronic kiosks, electronic ticket writers or docket management systems.


Revenues and Expenditures

In its 1999 legislative session, the Texas Legislature established the Municipal Court Technology
Fund through Senate Bill 601. In response, the City of San Marcos established the Municipal Court
Technology Fund to provide budgeting and accountability for the funds received through the
collection of the technology fee. The revenues collected are legally restricted for making
technological enhancements to the Municipal Court, which may include computer systems,
networks, hardware, software, imaging systems, electronic kiosks, electronic ticket writers or docket
management systems. Revenue for fiscal year 2007 is projected at $34,600. Revenue estimates are
based on historical trend information and follow the same assumptions as Fines & Penalties
revenues within the General Fund. We are proposing to use the $130,000 of accumulated fund
balance to purchase a new Municipal Court software package that provides Internet features such as
fine payments.

Seized Assets Fund
                                                 31
This fund provides budgeting and accountability for revenues collected from the sale of forfeited and
seized assets belonging to various criminals engaged in certain illegal activities. Revenues from
these seized assets are used to fund various technology improvements in our Police Department.

Revenues and Expenditures

The City of San Marcos established a Seized Assets Fund in fiscal year 2001 to provide budgeting
and accountability for funds received through forfeiture and seizure of assets belonging to various
criminals engaged in certain illegal activities. Revenues from the sale of seized assets are projected
at $5,000 for the next fiscal year. Projections are based on historical collection assumptions. The
only proposed expenditure is for the annual audit of this fund.

Community Development Block Grant Program Fund
In fiscal year 1994, the United States Department of Housing and Urban Development designated
the City of San Marcos as an Entitlement City for the Community Development Block Grant
(CDBG). The program is designed to eliminate slum and blight conditions and to serve the needs of
low to moderate-income residents.

Revenues and Expenditures

In fiscal year 1994, the U.S. Department of Housing and Urban Development designated San
Marcos as an Entitlement City in a program designed to eliminate slum and blight conditions and to
serve the needs of low to moderate income residents. New funding for the fiscal year 2007 totals
$531,284, a decrease from fiscal year 2006. City Council recently held a special workshop for
appropriating these CDBG monies. The trend in recent fiscal years is decreased funding in this
program.

Women, Infants and Children Program Fund
The Women, Infants and Children Program provides nutritional food supplements, nutritional
counseling, clinical assessments, and education to pregnant women, breast-feeding mothers, infants
and children up to five years of age. The City of San Marcos operates a five-county regional WIC
program that is funded through the Texas Department of Health and Human Services and the United
States Department of Agriculture.

Revenues and Expenditures

The federally and state funded Women, Infants and Children Program administered by the City of
San Marcos serves five counties in Central Texas. The proposed budget of $1,561,324 will provide
nutritional food supplements, nutritional counseling, clinical assessments, and education to pregnant
women, breast-feeding mothers, infants and children up to five years of age who live in Hays,
Caldwell, Bastrop, Comal and Guadalupe Counties. San Marcos is unique in being the only


                                                 32
municipality in Texas to administer a multi-county regional WIC program. The entire program is
reimbursed with state and federal funds.

Other Special Revenue Funds
The Cemetery Operations Fund provides for maintenance and upkeep of the historic San Marcos
City Cemetery. The Cemetery Operations Fund, with a budget of $141,125, provides for
maintenance of the historic San Marcos City Cemetery.

Revenues

At $35,600 the General Fund transfer is the largest source of Cemetery Operations Fund revenue.
Revenues such as burial permits, monument permits, and cemetery lot sales are calculated based on
the current fees and the annual estimated number of sales.

Enterprise Funds
Enterprise funds are used to account for governmental activities that are similar to those found in
private businesses. The major revenue source for these enterprise funds is the rate revenue generated
from the customers who receive the services provided. Revenues generated through the rates pay the
operating costs and debt retirement for these funds.

Water and Wastewater Utility Fund
The City of San Marcos operates a superior water production and wastewater collection and
treatment system for the community. This fund is used to account for the revenues and expenses of
this utility system.

Revenues

The City of San Marcos operates a superior water production and distribution and wastewater
collection and treatment system for the community. The Water/ Wastewater Utility Fund receives
revenue from residential, multi-family and commercial customers based on their monthly water
consumption. San Marcos water and wastewater rates are provided in detail within the
Miscellaneous and Statistical section of the budget.


         10-Year Water/Wastewater Service Revenue History (Fiscal Year)

                  25.0

                  20.0

                  15.0
       Millions




                                                 33

                  10.0
Revenue projections for water and wastewater revenues are based on factors such as historical
collections, known changes that will occur, system growth factors and weather predictions. Projected
revenues from all sources are budgeted at $25,766,134 for fiscal year 2007. Revenues from water
service are estimated at $11,414,720 and wastewater revenues are estimated at $10,836,451. Other
major revenue sources include sales of effluent, pretreatment charges, wheeling sales, service and
connection charges, and interest.

City Council approved a 15% rate increase for fiscal year 2004, a 10% rate increase for fiscal year
2005, and a third and final rate increase of 10% for fiscal year 2006. No rate increase was adopted in
fiscal year 2007.




                                                 34
         Proposed 2006-07 Water/Wastewater Utility Fund Revenue Summary
                                        Actual          Revised      Proposed    Percent of
                                       2004-05          2005-06      2006-07       Total
       Water Service                 10,054,147        11,218,398   11,414,720     45.92   %
       Wastewater Service             9,545,537        10,650,075   10,836,451     43.60
       Effluent Sales                   129,270           126,270       37,778      0.15
       Pretreatment Charges             532,371           456,412      456,412      1.84
       Wheeling Sales                    78,333            75,000           -       0.00
       EAA Reimbursement                223,800            55,950           -       0.00
       Interest Income                  503,532           440,926      447,738      1.80
       Penalties                        286,019           242,661      255,148      1.03
       Service Charges                   96,003            90,511       93,463      0.38
       Connection Charges                51,589            53,136       54,730      0.22
       Debt Service Reimbursement            -                 -       812,104      3.27
       Other Revenue                    418,255         1,152,000      447,000      1.80
       Prior Period Adjustment           33,389                -            -       0.00
       Total                         21,952,245        24,561,340   24,855,546    100.00   %



Expenses

The Water and Wastewater Fund supports several divisions: They include:

   -    Wastewater Collection
   -    Wastewater Treatment Facility Operations
   -    Water Quality Services
   -    Water Production / Wastewater Treatment Facility Maintenance
   -    Water Distribution Maintenance
   -    Water/ Wastewater Administration

The fiscal year 2007 appropriations for the Water/ Wastewater Utility Fund are $24,087,850, an
increase of $887,954 over the fiscal year 2006 approved budget.

We plan to use $281,000 of fund balance to replace aging equipment and vehicles and $1,030,000 in
system improvements for “pay as you go” and the LBJ Museum Waterline.




                                                  35
                    Proposed 2006-07 Water/Wastewater Utility Expense Summary
                                            Actual            Revised       Proposed    Percent of
                                           2004-05            2005-06       2006-07       Total
       Personnel Services                  2,330,157         2,150,165      2,483,152    10.31   %
       Contracted Services                 3,526,389         5,075,242      5,951,220    24.71
       Materials and Supplies                991,495           793,283        808,066     3.35
       Other Charges                       4,973,724         5,339,911      5,859,245    24.32
       Operating Transfers                 1,218,157         1,380,000             -      0.00
       Capital Outlay                        426,661           467,000        281,000     1.17
       System Improvements                        -          3,000,000      1,030,000     4.28
       Debt Service                        5,756,361         6,185,435      7,675,166    31.86
       Total                              19,222,943        24,391,037     24,087,850   100.00   %



Debt Service

Debt service in the Water/ Wastewater Fund is budgeted at $7,675,166. The total outstanding debt of
the utility system is $78,595,000 as of September 30, 2006. It is important to note that the significant
investments in water and wastewater infrastructure projects undertaken by the City of San Marcos
were required to respond to regional, state or federal mandates. Significant investments in upgrading
the wastewater treatment plant and collection system were made to meet high level treatment
standards mandated by the U.S. Environmental Protection Agency and the Texas Commission on
Environmental Quality, and to add plant capacity for future growth. Debt payments on these
significant projects are scheduled through fiscal year 2036. Revenue bond covenants and the City’s
Financial Policy require the City maintain a 1.20 Times Coverage Ratio. The Times Coverage Ratio
calculations for enterprise funds can be found in the Miscellaneous and Statistical Section of this
document.

       30-Year Principal and Interest Payment Schedule

                    40
                    35
                    30
         Millions




                    25
                    20
                    15
                    10
                     5
                     0
                         FY 2007-10 FY 2011-15 FY 2016-20 FY 2021-25 FY 2026-30 FY 2031-36

                                                  Principal     Interest




                                                       36
Fund Balance

We anticipate an ending fund balance of $11,961,157 or 52.5% of expenses, for fiscal year 2007.

Drainage Utility Fund
The City of San Marcos began assessing a drainage utility rate in fiscal year 2000 to all residential
and commercial property located in the City. The drainage charge was established to provide
funding for the planning, engineering, construction, maintenance, improvement and reconstruction
of drainage projects throughout the City.

Revenues and Expenses

The San Marcos Drainage Utility Fund is an enterprise fund supported by assessment of drainage
utility fees. The Drainage Utility was created in July 1999 by Council to address the need for
improvements in drainage channels throughout the City. Revenues from the fees will be used in
future years to pay for future bond issuances related to drainage improvements. Projected revenues
from fees are budgeted at $1,222,744 for fiscal year 2007. This amount includes an additional
$232,668 of revenue collected from the proposed 23.5% rate increase to be assessed this fiscal year
. Operating expenses are budgeted at $1,709,496. We are proposing to use $800,000 of existing fund
balance for various system improvements.

Debt Service

Debt service in the Drainage Utility Fund for fiscal year 2007 is budgeted at $97,630. As of
September 30, 2006 the City of San Marcos will have an outstanding debt of $6,500,000 for
improvements to the drainage utility system. The current debt will be repaid annually until fiscal
year 2024.




                                                 37
       20-Year Principal and Interest Payment Schedule

                    3.0
                    2.5
                    2.0
         Millions




                    1.5
                    1.0
                    0.5
                    0.0
                          FY 2007-10   FY 2011-15        FY 2016-20    FY 2021-24

                                           Principal     Interest



Fund Balance

Fund balance at the end of the fiscal year 2007 in the Drainage Utility Fund is budgeted at
$1,193,560.


Electric Utility Fund
The City of San Marcos purchases and distributes electric power to the San Marcos community. San
Marcos has some of the lowest electric rates in Texas. We increased rates in 2005 (10%) and 2006
(2%) for the first time since 1993. The utility operates at a 99.9997% reliability rate and has a
system capacity of 145 megawatts.

Revenues

The Electric Utility Fund is enterprise funds established to purchase and distribute electric power to
the San Marcos community. The utility receives revenues through rates charged to customers for
electric service, from other operating revenues and interest income.




                                                    38
                    Proposed 2006-07 Electric Utility Fund Revenue Summary
                                         Actual      Revised      Proposed     Percent of
                                        2004-05      2005-06      2006-07        Total
                 Electric Service      36,324,686   37,051,180   45,958,848     95.77   %
                 Interest Income          245,494      441,775      381,783      0.80
                 Penalties                489,865      436,000      442,540      0.92
                 Service Charges           26,861       16,900       17,154      0.04
                 Connection Charges       355,435      310,413      315,069      0.66
                 Other Revenue            267,148      120,250      121,214      0.25
                 Reimbursements           227,500      350,000      750,000      1.56
                 Operating Transfers           -            -            -       0.00
                 LCRA Refunds           1,619,697           -            -       0.00
                 Residual Transfers            -       434,128           -       0.00
                 Total                 39,556,685   39,160,645   47,986,608    100.00   %



The major element in the increased revenue of the Electric Utility is the pass-through costs of
purchased power from LCRA to the retail customer. The fuel adjustment charges have increased
dramatically in 2006 due to the impact of the international oil market. During the Budget Policy
Workshop, staff did not recommend a rate increase due to forecasted revenue income, although the
rate study had recommended a 2% increase. Actual revenues are currently meeting those
projections.



          10-Year Electric Service Revenue History

                 50.0
                 45.0
                 40.0
                 35.0
                 30.0
      Millions




                 25.0
                 20.0
                 15.0
                 10.0
                  5.0
                  0.0
                         1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
                                                                         Estimates


                                                    39
Expenses

The Electric Utility Department provides efficient electric service to the San Marcos community.
The expenditures proposed for fiscal year 2007 total $46,413,394. Departmental divisions include:

   -   Customer Information
   -   Meter Operations
   -   Operations
   -   Maintenance
   -   Customer Billing and Collections

At $34.36 million, the cost of wholesale power from LCRA represents the largest expense in this
fund. We are proposing to use $185,000 of fund balance for replacing aging equipment and vehicles.


                  Proposed 2006-07 Electric Utility Expense Summary
                                     Actual         Revised      Proposed      Percent of
                                    2004-05         2005-06      2006-07         Total
         Personnel Services        2,544,372      2,771,903      2,970,936       6.40   %
         Purchase of Power        25,892,353     26,280,738     34,361,504      74.03
         Contracted Services         623,357        994,557      1,025,778       2.21
         Materials and Supplies      401,023        384,876        423,944       0.91
         Other Charges             5,607,344      5,771,878      5,827,969      12.56
         Capital Outlay              292,096        609,800        597,556       1.29
         System Improvements              -       2,164,500             -        0.00
         Debt Service              1,194,405      1,207,183      1,205,708       2.60
         Operating Transfers         683,942        475,000             -        0.00
         Total                    37,238,893     40,660,435     46,413,394     100.00   %



Debt Service

Debt service in the Electric Utility fund during fiscal year 2007 is budgeted at $1,204,458. As of
September 30, 2006, the City of San Marcos has outstanding debt of $10,500,000 for the purchase of
the electric distribution system from LCRA in 1986. The current debt will be repaid annually until
fiscal year 2017. Revenue bond covenants and the City’s Financial Policy require the City maintain
a 1.20 Times Coverage Ratio. The Times Coverage Ratio calculations for enterprise funds can be
found in the Miscellaneous and Statistical Section of this document.




                                               40
        12-Year Principal and Interest Payment Schedule

                    7.0
                    6.0
                    5.0
         Millions



                    4.0
                    3.0
                    2.0
                    1.0
                    0.0
                          FY 2007-10            FY 2011-15             FY 2016-17

                                            Principal    Interest



Fund Balance

Fund balance at the end of fiscal year 2007 in the Electric Utility Fund is budgeted at $11,117,801 or
24.27% of proposed expenses. While this amount is slightly under our 25% fund balance goal, it
does cover 100% of our annual operating expenses. Due to the increased cost of purchase power
and its impact on the electric fund balance percentage, staff recommends maintaining 33% of
operating expenses as its new electric fund balance goal. This will insure that four months of
operational cost will be covered in case of emergency within the system. Council may want to
reconsider the Electric Utility fund balance goal in its Financial Policy during the up coming fiscal
year. The Electric Utility, with millions of dollars worth of valuable substations and aboveground
distribution facilities, is particularly vulnerable to weather-related disasters.

Municipal Airport Fund
The Municipal Airport has three runways and is situated on 1,356 acres. Additionally, there are 60
acres of maintained parking ramps and 38 City-owned hangars and shelters. Revenue sources such
as storage rentals, hangar rentals, storage rentals, gross receipts fees and land leases partially support
the daily operational costs. There are more than 235 based aircraft at the airport and more than
135,000 annual takeoffs, landings and approaches.

Revenues and Expenses

The San Marcos Municipal Airport Fund is an enterprise fund supported by revenues from hangar
and shelter rentals, commercial and agricultural leases, and a transfer from the General Fund for
airport management. The airport serves the general aviation needs of our residents and citizens in the
surrounding region. At $354,500, the General Fund transfer is the largest source of municipal airport
revenue. The transfer is used to make up revenue shortfalls in the adopted budget. Other revenues

                                                   41
are relatively minor and are simple to forecast. Revenues such as T-hangar rentals, storage area
rentals, facility rentals and shelter rentals are calculated based on the rental charge and the number
of rental units rented. Other revenues such as gross receipt revenues are forecasted after reviewing
historical data. An announcement in late July 2006 of a federal earmark of $4.5 million for a new
terminal building will provide exciting opportunities for major enhancements at the airport.

The operational budget for the Airport Fund is $245,515 for fiscal year 2007. The airport works
closely with the Texas Department of Transportation and the Federal Aviation Administration.

Solid Waste Collection Utility Fund
The City of San Marcos outsources its residential solid waste collection through the use of a
competitive bidding process. The solid waste collection company charges its monthly fee to the City
on a per customer basis. This fee is passed on to each resident within the City. The waste collection
revenue and expense were previously shown within the General Fund and now has been established
as a separate fund.

Revenues and Expenses

The Solid Waste Collection Utility Fund is an enterprise fund supported by assessment of residential
waste collection service charges. The utility was created to separate revenues and expenses related
to solid waste collection from the General Fund. Projected revenues from service charges are
budgeted at $1,203,869 for fiscal year 2007. Expenditures are $1,180,903 for solid waste hauling
and recycling. Some funds are set aside for a landfill reserve fund.

Permanent Funds
The City serves as trustee for funds collected through its cemetery perpetual care fee. This fee is
assessed on all municipal cemetery plots sold. Interest earned from the Cemetery Perpetual Care
Fund is used to support the maintenance costs at the municipal cemetery. The principal amount of
the fund cannot be used for any purpose. This year’s interest earnings are proposed at $43,800 which
will be transferred to the Cemetery Operations Fund.


Capital Improvements Program
The City of San Marcos has established an on-going ten-year Capital Improvements Program (CIP)
to plan for major capital expenditures and identify funding sources for these projects. The CIP
provides a ten-year strategic plan for important infrastructure investments for fiscal year 2007 to
fiscal year 2016. The CIP is a budgetary tool for community decision-makers and suggests a variety
of possible funding sources, ranging from operating budgets, state and federal grants, to future voter-
approved bond programs. The CIP also suggests the particular year in which projects might be
authorized. Only the first year of each CIP cycle is proposed as part of the fiscal year's expenditures;
the nine subsequent years are considered to be planning years.


                                                  42
              Ten-Year Capital Improvements Program Outlay Schedule

             90

             80

             70

             60
  Millions




             50

             40

             30

             20

             10

              0
                  FY 2007   FY 2008   FY 2009   FY 2010   FY 2011   FY 2012   FY 2013   FY 2014   FY 2015   2016




Summary
The proposed budget provides San Marcos with a balanced budget of $117,511,498 to support
essential public services and programs. We enter the new fiscal year with the strongest property tax
base in our history at $2.039 billion and healthy fund balances. We will direct our resources to
fulfilling the City Council’s priorities in providing for our community development, infrastructure
and excellent public service for our residents.




                                                             43
Budget Policy Statement
I.      Fund Balance Goals
Fund Balances
   − Goals for fund balances will be at the following levels:
         • General Fund – 25%
         • Water/ Wastewater Fund – 25 %
         • Electric Utility Fund – 25 %
   − Use amounts over the 25% level to fund one-time capital purchases

General Fund

     Property Tax Rate
     − Endeavor to incorporate new debt for voter-approved bond election projects into the
        budget without raising the current property tax rate
     − Ask the Planning and Zoning Commission to prioritize bond election projects as part of
        the CIP process

     Revenues
           • Continue to use conservative estimates to project increases in sales tax revenues
              (3% increase) and property tax values (3% increase)

Capital Improvements Program

     CIP/ New Debt
           • Continue with the 10-year CIP projects that have been identified

Water/ Wastewater Fund

     Water/ Wastewater Rates
            • Set up reserve account in fund balance for excess revenues to begin saving for the
              new Wastewater Treatment Plant
            • Cash fund $3 million of capital improvement projects
            • Pursue winter averaging for wastewater billing

Electric Utility Fund

     Electric Utility
             • Hold off on the recommended 2% rate increase
             • Forego charging the Electric Utility this fiscal year for the franchise fee on the
                LCRA fuel adjustment increase due to large fuel adjustment increases from
                LCRA


                                                 44
II. Major Policy Issues
Employee Benefits/ Raises
  − Implement the market study for all employees and fund the Police and Fire Civil Service
      pay plan

New Personnel
   − Consider new personnel as recommended by the City Manager

Capital Outlay
   − Appropriate $900,000 for Capital Outlay for the General Fund
   − Appropriate $500,000 for Capital Outlay for the Water/ WW Utility Fund
   − Appropriate $200,000 for Capital Outlay for the Electric Utility Fund

Greenspace
   −   Invest $5,000 in acquiring and developing greenspace


III.       External Programs
Hotel Occupancy Tax Fund
   − Change the “Future Cooperative Advertising Partnerships” line item to “Branding/
       Marketing San Marcos”
   − Establish a cap of 10% over the 2007 anticipated allocation for each line item except the
       “Future Conference Center”
   − Reduce the percentage allocation for each program as indicated below
   − Increase the percentage allocation for “Future Conference Center” as indicated below


                                                                   Distribution
                                                              Current       Adopted
        Convention & Visitors Bureau                           55.0 %         45.0 %
        Arts Commission                                         5.5 %           4.5 %
        Main Street Program                                    18.5 %         15.5 %
        Hispanic Chamber of Commerce                            6.0 %           5.5 %
        Outlet Mall Cooperative Advertising Program             3.5 %           3.5 %
        Council Tourism Account                                 1.0 %           1.0 %
        Future Conference Center                                7.0 %         21.5 %
        Branding/ Marketing San Marcos                          3.5 %           3.5 %

        Total                                                 100.0 %        100.0 %




                                              45
Social Services
   − Maintain Social Service funding at the $395,000 level
   − Change the “Youth Center” line item to “Youth Projects” and fund at $5,000

CDBG Funding
  − Hold a special workshop to allocate CDBG funds and incorporate a component to update
     Council about affordable housing programs currently available

Economic Development
   − Maintain Economic Development funding at the $298,295 level
   − Continue funding Economic Development from the Electric Utility Fund

Drainage Utility Fund
   Drainage Utility Rates
          • Increase the Drainage Utility fee for all rate classifications to support an expanded
              maintenance program for existing facilities and fund at least $1 million in new
              projects. The chart below indicates the proposed monthly increases for residential
              and commercial customers:

                                               Current         Proposed         Proposed
                                               Monthly         Monthly          Monthly
     Customer Class                            Charge           Charge          Increase
     Residential - Small Lot                          2.00            2.47             0.47
     Residential - Average Lot                        3.21            3.96             0.75
     Residential - Large Lot                          3.67            4.53             0.86
     Commercial - Small Lot                         80.00            98.80            18.80
     Commercial - Average Lot                       60.99            75.32            14.33
     Commercial - Large Lot                           7.34            9.06             1.72


Miscellaneous Issues
   − Implement Phase I of the Animal Shelter transition to injection by euthanasia and spay/
       neuter program
   − Explore partnering opportunities with Hays County for joint Animal Services facility
   − Determine costs for adding new early voting locations at the Library and Activity Center
   − Implement procurement procedures to ensure staff considers purchasing alternative fuel
       vehicles when possible
   − Consider options for providing security for Municipal Court
   − Consider funding the Hopkins Street pedestrian bridge from CDBG or seek other funding
       sources
   − Include $200,000 in the budget to fund traffic signal maintenance to include $125,000 for
       inventory purchases and $75,000 for contracting with an outside company

                                               46
− Establish a maximum budget amount to provide matching funds for cemetery
  maintenance grants the City receives
− Fund the $10,000 Summerfest Tourism Fireworks request from Hotel/ Motel Fund
  Balance




                                       47
A Common Vision for San Marcos – Priorities
A Citizen Summit was held on Thursday, January 26, 2006 at the San Marcos Activity Center. A list
was developed from all areas of interest mentioned by citizens and used to stimulate Council’s
discussion of priorities during the Visioning Workshop held on Friday, January 27, 2006.

I.         Communications

       •     Improve communications with the public about city priorities, projects, and programs
                o Work with Daily Record about project updates
                o Continue distributing information through area newspapers, TV and radio

       •     Improve local radio/ TV communications
                o Develop local radio station to provide emergency and disaster information
                   (KTSW, old KSPL)
                o Explore satellite radio options
                o Continue to develop existing City cable channels

       •     Improve intergovernmental communications with Texas State University

II.        Bond Packages

       •     Maintain public confidence and trust in timing and completion of voter-approved projects
                o Provide accurate and realistic bond costs for projects
                o Keep community informed about progress of projects

III.         Housing and Neighborhoods

       •     Recognize importance of single family neighborhoods
                o Support accountability of property owners and managers for zoning violations
                   and informing tenants of local rules
                o Research who other cities hold accountable

       •     Develop “student-friendly” housing

             Affordable Housing

             •   Investigate whether City should take lead in coordinating local affordable housing
                 efforts

             •   Explore affordable housing programs
                        o Infill homes through community trust model (e.g. Austin’s SMART
                            program)
                        o Develop equity program to keep low income housing payments at around
                            $700 / month

                                                     48
                  o Identify local, state and federal resources

       •   Create one-stop shop for information about affordable housing

IV.    Economic Development

           •   Attract new businesses and manufacturing jobs compatible with San Marcos
               quality of life
           •   Explore expansion of incentives

V.     Marketing/ Branding San Marcos

           •   Improve entryways into city
           •   Identify and invest in City’s image
           •   Engage outside consultant to assist in image and branding program

VI.    Alternative Energy

           •   Explore alternative fuel opportunities for electric generation (solar, wind, hydro
               power)
           •   Explore alternative fuel for city vehicle fleet (bio-diesel)
           •   Consider offering “green” power alternatives for electric customers
           •   Explore solar power for park lighting

VII.   Pedestrian Friendly Community

           •   Establish goals for creating pedestrian-friendly community
           •   Create connections by sidewalks, trails, and bicycle paths to parks, downtown and
               river
           •   Work in partnerships with Texas State University and local businesses to promote
               pedestrian friendly city
           •   Consider using brick crosswalks for pedestrians




                                                49
VIII.   Transportation Issues

           •    Pursue integrated bus system with CARTs and Texas State University
           •    Improve marketing of airport with goal of making it self-sustaining
           •    Integrate airport into Economic Development programs
           •    Work with Union Pacific to improve railroad crossings
           •    Explore side street access from Aquarena Springs Drive back to I-35 frontage
                road

IX.     Downtown Parking

           •    Consider parking garage at site of Central Fire Station
           •    Explore public/ private partnership and working with Texas State University
           •    Review previous parking study by John Edwards

X.      Austin Community College

           •    Explore potential city partnership with ACC for workforce development
           •    Seek city representation on ACC board if voters approve San Marcos tax support

XI.     River

           •    Improve maintenance of banks and prevention of erosion
           •    Communicate with public about project status and federal requirements
           •    Review adequacy of staff resources

XII.    Taxation

           •    Explore ways to reduce taxes through efficiencies

XIII.   Other Issues

           •    Investigate potential of moving Council Chambers to Army Reserve if local unit
                moves away

           •    Investigate city-sponsored WI-FI for San Marcos community

           •    Consider matching funds for cemetery maintenance projects with Friends of the
                Cemetery

           •    Consider partnership with Texas State University on performing arts center




                                               50
City of San Marcos Financial Policy
I.     Purpose
The broad purpose of this policy is to enable the City to achieve and maintain a long-term stable and
positive financial condition through the use of sound financial management practices. The
watchwords used to epitomize the City's financial management include integrity, prudent
stewardship, planning, accountability, full disclosure and communication.

The more specific purpose of this policy is to provide guidelines to the Director of Finance in
planning and managing the City's daily financial affairs and in developing recommendations to the
City Manager and City Council.

The City Council will annually review and approve this policy as part of the budget process.
The scope of this policy covers the operating budget, revenues, expenditures, capital improvements
program, financial planning, accounting, auditing, financial reporting, treasury management, debt
management, and financial condition and reserves, in order to:

       A.      Present fairly and with full disclosure the financial position and results of the
       financial operations of the City in conformity to generally accepted accounting principles
       (GAAP).
       B.      Determine and demonstrate compliance with finance-related legal and contractual
       issues in accordance with provisions of the City’s Charter, the City’s Code of Ordinances,
       the Texas Local Government Code and other pertinent legal documents and mandates.

II. Operating Budget
       A.       Preparation – Budgeting is an essential element of the financial planning, control, and
       evaluation process of municipal government. The "budget" is the City's annual financial
       operating plan. The budget includes all of the operating departments of the governmental
       funds, special revenue funds, enterprise funds, and permanent funds of the City. The budget
       includes expenditures for personnel, contracted services, materials and supplies, other
       charges, operating transfers, social services, indirect costs, capital outlay and debt service.
       The budget is prepared by the City Manager and Director of Finance with the participation of
       all the City’s Department Directors within the provisions of the City Charter, on a basis that
       is consistent with GAAP.

       B.      Multi-Year Planning – The Director of Finance will prepare a multi-year financial
       forecast of the General Fund. This forecast is an integral part of developing the proposed
       budget.




                                                 51
       1.      Proposed Budget – The City Manager presents a proposed budget to the City
       Council. The proposed budget provides a complete financial plan for the ensuing
       fiscal year, and shall contain a budget message explaining the budget, containing an
       outline of the proposed financial policies of the City for the ensuing fiscal year,
       setting forth the reasons for salient changes from the previous fiscal year in
       expenditure and revenue items, and explaining any major changes in financial policy.

       The budget should include four basic segments for review and evaluation. These
       segments are: (1) actual revenue and expenditure amounts for the last completed
       fiscal year, (2) original revenue and expenditure amounts budgeted for the current
       fiscal year, (3) revenue and expenditure amounts estimated for the current fiscal year,
       and (4) revenue and expenditure amounts proposed for the ensuing fiscal year.

       The City Manager, not less than 30 days prior to the time the City Council makes its
       tax levy for the current fiscal year, shall file with the City Clerk the proposed budget.

       2.      Adoption – The City Council shall call and publicize a public hearing to
       allow for citizen participation. The City Council will subsequently adopt by
       Ordinance such budget, as it may have been amended, as the City's annual budget
       effective for the fiscal year beginning October 1st. The budget should be proposed by
       the City Council not later than 15 days prior to the expiration of the fiscal year.

C.    Balanced Budget – The operating budget will be balanced with current revenues,
which may include beginning fund balances less required reserves as established by City
Council, greater than or equal to current expenditures.

D.     Planning – The budget process will be coordinated so as to identify major policy and
financial issues for City Council consideration several months prior to the budget adoption
date. This will allow adequate time for appropriate decisions and analysis of financial
impacts.

E.     Reporting – Financial reports will be made available to Department Directors to
manage their budgets and to enable the Director of Finance to monitor the overall budget.
The Director of Finance will present summary financial and budgetary reports to the City
Council to disclose the overall budget and financial condition of the City. The financial and
budgetary reports will include comparisons of actual to budget, actual to prior year,
appropriate ratios, and graphs to ensure full disclosure and present meaningful information.

F.      Control and Accountability – Department Directors will be responsible to ensure that
their department budgets will not exceed budgeted amounts. Department Directors will be
responsible to ensure revenues generated by activities of their departments meet budgeted
amounts.




                                          52
    G.      Contingent Appropriation – A provision shall be made in the budget for a contingent
    appropriation of no more than three percent of total expenditures to be used in case of
    emergencies or unforeseen circumstances. The contingent appropriation shall be under the
    control of and distributed by the City Manager after approval of the City Council. A detailed
    account of contingent appropriation expenditures shall be recorded and reported.

    All expenditures of the contingent appropriation will be evaluated using the following
    criteria:

    -    Is the request of such an emergency nature that it must be made immediately?
    -    Why was the item not budgeted in the normal budget process?
    -    Why the transfer cannot be made within the division or department?

III. Revenue Policies
    A.      Characteristics – The City Finance Department will strive for the following optimum
            characteristics in its revenue system:

            1.      Simplicity – Where possible and without sacrificing accuracy, the revenue
            system will be kept in simple order to reduce compliance costs for the taxpayer or
            service recipient.

            2.      Certainty – There will be a thorough knowledge and understanding of
            revenue sources to increase the reliability of the revenue system. Consistent
            collection policies will be enacted to provide assurances that the revenue base will
            materialize according to budgets and plans.

            3.     Equity – Equity will be maintained in the revenue system structure; i.e.,
            subsidization between entities, funds, services, utilities, and customer classes will be
            minimized or eliminated.

            4.      Revenue Adequacy – There will be a balance in the revenue system; i.e., the
            revenue base will have the characteristics of fairness and neutrality as it applies to
            cost of service, willingness to pay, and ability to pay.

            5.     Administration – The benefits of a revenue source should exceed the cost of
            levying and collecting that revenue. The cost of collection should be reviewed
            annually for cost effectiveness as a part of the indirect cost of service analysis.
            Where appropriate, the administrative processes of state, federal or local
            governmental collection agencies will be used in order to reduce administrative cost.

            6.     Diversification and Stability – A diversified revenue system with a stable
            source of income should be maintained. This will help avoid instabilities in similar
            revenue sources due to factors such as fluctuations in the economy and variations in
            the weather.

                                              53
B.    Issues – The following considerations and issues will guide the City Finance
Department in its revenue policies concerning specific sources of funds:

      1.     Cost/Benefit and Financial Impact Analysis for Tax and Fee Abatements – A
      cost/benefit and financial impact analysis should be performed to assess tax or fee
      abatement economic development incentives.

      2.      Accounts Receivable – Accounts receivable procedures will target collection
      for a maximum of 30 days from service. Accounts past due more than 120 days will
      be sent to a collection agency. The Director of Finance is authorized to write-off non-
      collectible accounts that are delinquent for more than 180 days.
      3.      Non-Recurring Revenues – One-time or non-recurring revenues should not be
      used to finance current ongoing operations. Non-recurring revenues should be used
      only for non-recurring expenditures and not be used for budget balancing purposes.

      4.     Deferrals or Short-Term Loans – Deferrals or short-term loans will not be
      used for budget balancing purposes.

      5.      Property Tax Revenues – All real and business personal property located
      within the City is valued at 100% of the fair market value for any given year based
      on the current appraisal supplied to the City by the Hays County Tax Appraisal
      District (HCTAD). A visual reappraisal and reassessment of all real and business
      personal property will be done every third year. The HCTAD reappraises real and
      business personal property every year as a standard practice.

      Conservatism will be used to estimate property tax revenues. The Hays County Tax
      Assessor Collector will furnish an estimated property tax collection rate to the
      Director of Finance. The Finance Department will endeavor with the Tax Assessor
      Collector to collect one hundred percent (100%) of property taxes levied in each
      fiscal year.

      6.     Interest Income – Interest earned from investment of available monies,
      whether pooled or not, will be distributed to the funds in accordance with the equity
      balance of the fund from which monies were provided to be invested.

      7.      User Fees and Service Charges – For services associated with a user fee or
      service charge, the direct and indirect costs of that service will be offset by a user fee
      where possible. Department Directors will annually review user fees and service
      charges to ensure that the costs of services are recouped through user fees and
      service charges. The City Council will determine how much of the cost of a service
      should be recovered by fees and service charges.




                                         54
8.      Indirect Cost Allocation – All City funds will include transfers to and receive
credits from other funds for general and administrative costs incurred. The most
predominant fund that receives credits from other funds is the General Fund. The
General Fund receives credits for bearing such costs as administration, legal counsel,
finance, personnel, data processing, engineering and other costs. An independent
third party will conduct an indirect cost allocation study annually to determine the
credits received.

9.     Enterprise Fund Rates – The Director of Finance and the Department
Directors of each Enterprise Fund will review rates annually to ensure sufficient
coverage of operating expenses, meet the legal restrictions of all applicable bond
covenants, and provide for an adequate level of working capital.

10.      Franchise Fees – The Electric Fund and Water and Wastewater Utility Fund
will include franchise fees as a component of utility rates. A 10% Electric Fund and a
9% Water and Wastewater Utility Fund franchise fee are levied on gross sales. The
City will aim to reduce these franchise fees to equal those charged to investor-owned
utility franchises operating within the City. Currently, the City levies a 5% franchise
fee to investor-owned utilities.

11.    Intergovernmental Revenues (Federal/State/Local) – All potential grants will
be examined for matching requirements and the source of the matching requirements.
These revenue sources will be expended only for intended purpose of grant aid. It
must be clearly understood that operational requirements set up as a result of a grant
or aid could be discontinued once the term and conditions of the project have
terminated.

12.     Revenue Monitoring – Revenues actually received will be compared to
budgeted revenues by the Director of Finance and variances will be investigated.
This process will be summarized in the appropriate financial report and reported to
the City Manager and City Council.




                                  55
IV. Budgetary Sales Tax Estimation
  A. The estimated percentage increase in sales tax revenue for the ensuing fiscal year budget will
     not exceed the actual percentage increase of the most recently completed fiscal year.

  B. The following example illustrates the limitation set by this policy.

   Fiscal Year 1    Fiscal Year 2   Percentage        Fiscal Year 3   Fiscal Year 4   Percentage
      Actual           Actual        Increase          Estimated        Proposed       Increase
    $10,000,000      $10,500,000         5.0 %         $11,550,000    $12,127,500          5.0 %

     In the example above, the Fiscal Year 4 Proposed Budget is limited to a 5.0% increase,
     which is the actual percentage increase of the most recently completed fiscal year (Fiscal
     Year 2).

  C. This policy ensures that the ensuing fiscal year budget contains a sales tax revenue estimate
     based on actual completed fiscal years only.

V. Budgetary Sales Tax Revenue Shortfall Contingency Plan
  A. The City will establish a plan to address economic situations that cause sales tax revenue to
     be significantly less than the adopted budget sales tax revenue. The plan is comprised of the
     following components:

     Indicators –     Serve as warnings that potential budgetary sales tax revenue shortfalls are
                      increasing in probability. Staff will monitor state and national economic
                      indicators to identify recessionary or inflationary trends that could
                      negatively impact consumer spending. Staff will develop a monthly report
                      that compares the current month’s sales tax revenue to the same month of
                      the previous year. The report will show sales tax revenue by month for the
                      last ten fiscal years.
     Phases –         Serve to classify and communicate the severity of the estimated budgetary
                      sales tax revenue shortfall. Identify the actions to be taken at the given
                      phase.
     Actions –        Preplanned steps to be taken in order to prudently address and counteract
                      the estimated budgetary sales tax revenue shortfall.

  B. The actions listed in phases 1 through 3 are short-term in nature. In the event the underlying
     economic situation is expected to last for consecutive years, more permanent actions, such as
     phases 4 and 5, will be taken.

  C. Staff will apprise City Council at the regular City Council meeting immediately following
     any action taken through this plan. Information such as underlying economic condition,



                                                 56
   economic indicators, estimated budgetary sales tax revenue shortfall, actions taken, and
   expected duration will be presented to City Council.

D. The City Council may appropriate fund balance as needed to cover any estimated budgetary
   sales tax revenue shortfall. Appropriation of fund balance must be carefully weighted and
   long-term budgetary impacts must be considered in conjunction with the projected length of
   the economic downturn.

E. Actions taken through this plan must always consider the impact on revenue generation.
   Actions taken should reduce expenses well in excess of resulting revenue losses.

F. The following is a summary of phase classifications and the corresponding actions to be
   taken.
       1. ALERT: The estimated budgetary sales tax revenue shortfall is less than $200,000,
          or the estimated annual sales tax revenue is 1% less than the adopted budget.
                a.     Freeze newly created positions.
                b.     Implement a time delay for hiring vacant positions.

       2. MINOR: The estimated budgetary sales tax revenue shortfall is between $200,000
          and $300,000, or the estimated annual sales tax revenue is 2% less than the adopted
          budget.
               a.     Implement a managed-hiring program for vacant positions.
               b.     Reduce the number of temporary workers.

       3. MODERATE: The estimated budgetary sales tax revenue shortfall is between
          $300,000 and $400,000, or the estimated annual sales tax revenue is 3% less than the
          adopted budget.
               a.     Reduce travel and training budgets.
               b.     Reduce office supply budgets.
               c.     Eliminate capital outlay expenses.
               d.     Freeze all computer upgrades and new computer purchases.
                      Replacements for non-working computers are allowed.
               e.     Freeze all external printing and publication expenses, except for legally
                      required notices.
               f.     Scrutinize professional services expenses.
               g.     Scrutinize repairs and maintenance expenses. Examples – vehicles,
                      communications, office equipment, machinery and buildings.

       4. MAJOR: The estimated budgetary sales tax revenue shortfall is between $400,000
          and $500,000, or the estimated annual sales tax revenue is 4% less than the adopted
          budget.
               a.     Prepare a Reduction in Force Plan.
               b.     Implement a salary freeze.
               c.     Reduce overtime budgets.
               d.     Eliminate unfunded capital improvement projects.


                                           57
                 e.      Defer payments to City-owned utilities for electricity, street lighting,
                         water and wastewater services.

       5. CRISIS: The estimated budgetary sales tax revenue shortfall exceeds $500,000, or
          the estimated annual sales tax revenue is 5% less than the adopted budget.
                a.     Service level reductions, elimination of specific programs, reduction-
                       in-force and other cost reduction strategies will be considered.
                b.     Reduce departmental budgets by a fixed percentage or dollar amount.
                c.     Departments will prioritize service levels and programs according to
                       City Council goals and objectives.
                d.     Consider four-day work weeks to reduce personnel costs.
                e.     Reduce external program funding – social service agencies.

VI. Expenditure Policies
    A.      Appropriations – The point of budgetary control is at the department level budget for
    all funds. Following formal adoption, the budget is amended as necessary through a
    submission made by a Department Director to the City Manager. The Department Director
    forwards a budget amendment form detailing the reason, line items and amounts to be
    effected to the City Finance Department to verify available dollars. The form is then
    forwarded to the City Manager who then reviews the amendment for overall appropriate
    objectives and purposes. If the budget amendment requires a transfer between departments,
    funds, or requires the use of fund balance or contingent appropriations, the amendment is
    submitted to City Council for approval; otherwise, the City Manager has the authority to
    approve or disapprove. Budget amendments requiring the use of fund balance or a transfer
    between departments or funds shall be formally proposed as an ordinance of the City
    Council. Budget amendments involving the use of contingent appropriations shall be
    formally approved by a motion of the City Council.

    B.      Encumbrance Accounting System – An encumbrance accounting system will be used
    to alert Department Directors when their maximum budget limits have been reached.
    Encumbrances are expenditure estimates and will reduce budgeted appropriations in the
    same manner as an actual expenditure. Once the actual expenditure amount is paid or the
    encumbrance lapses, the encumbrance will be deleted. Department Directors should use the
    encumbrance accounting system for all purchases.

    C.     Personnel Savings – No recognized or significant personnel savings in any
    Department will be spent by the Department Director without the prior authorization of the
    City Manager. This control is used to realize personnel savings each year that will be
    recognized in the proposed budget as a reduction in the current fiscal year’s personnel
    appropriations.

    D.    Purchasing – All Department Directors will ensure their respective departments
    comply with the City's Purchasing Manual when purchasing goods or services.


                                             58
    E.     Prompt Payment – All invoices approved for payment will be paid by the City
    Finance Department within thirty (30) calendar days of receipt in accordance with the
    provisions of State law.

    The Director of Finance will establish and maintain payment procedures that will make use
    of advance payment discounts. Advanced payment discounts will be used in all instances
    except when the City will earn more interest income than the advance payment discount
    through investing the idle cash.

VII. Capital Improvements Program – Major Projects
    A.      Purpose – The Capital Improvements Program (CIP) is a multi-year financial
    planning tool used to identify and plan for major capital projects which address growth,
    transportation, public safety, and utility infrastructure issues in conjunction with goals and
    priorities as determined by City Council. A major capital project generally involves a
    significant expenditure of funds, beyond operation and maintenance costs, for the acquisition
    or construction of a needed facility or infrastructure. A major capital project should exceed
    $100,000 in cost. The CIP coincides with the adoption of the budget and uses a ten-year
    projection.

    B.      Preparation – The CIP will be prepared annually and on a project basis categorized
    by specific program; i.e., streets, drainage, public safety, public buildings, parks and
    recreation, water, wastewater and electric. The CIP should contain a comprehensive
    description of the project, funding sources, the timing of capital projects, and the impact on
    operations. The CIP will be prepared by the Planning Department and reviewed by the City
    Manager with the involvement of responsible departments. The CIP will be submitted to the
    Planning and Zoning (P&Z) Commission for their review. After considerable deliberation
    including public workshops and hearings to gather citizen participation, the P&Z will
    approve a recommended CIP for City Council’s approval. The City Council reviews the CIP
    for adherence to goals and priorities and approves the CIP for inclusion in the ensuing fiscal
    year budget. Capital projects within the first year of the CIP are approved for funding.
    Maintenance and operational costs related to capital projects are included in the ensuing
    fiscal year budget.

    C.      Funding Sources – Where applicable, assessments, impact fees, pro rata charges, or
    other fees should be used to fund capital projects which have a primary benefit to specific,
    identifiable property owners.

    Recognizing that long-term debt is usually a more expensive financing method, alternative-
    financing sources will be explored before debt is issued. When debt is issued, it will be used
    to acquire major assets with expected lives that equal or exceed the average life of the debt
    issue. The exceptions to this requirement are the traditional costs of issuing the debt,
    capitalized labor for design and construction of capital projects, and small component parts
    which are attached to major equipment purchases such as fire trucks. The types of debt
    issued are listed in Section VIII of this policy.

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       D.      Timing and Expenditure Control – The Director of Finance will work with
       Department Directors during the fiscal year to schedule the timing of capital projects to
       insure funds availability. All capital projects must be funded and appropriated. The Finance
       Department must certify the availability of resources before any capital project contract is
       presented to the City Council for approval.

       E.      Reporting – Financial reports will be made available to Department Directors to
       manage their capital projects budgets and to enable the Director of Finance to monitor the
       overall capital projects budget.


VIII. Capital Replacement Reserve Funds
Consistent with its philosophy of keeping its capital facilities and infrastructure systems in good
repair and to maximize the asset’s useful life, the City should set aside sufficient current
revenues to finance ongoing maintenance needs and to provide reserves for periodic replacement
and renewal.

   A. The City will establish Capital Replacement Reserve Funds (CRRF) to set aside resources
      for the future purchases of vehicles, equipment, public buildings and utility system
      improvements for the General Fund, Water/ Wastewater Utility Fund and Electric Utility
      Fund.

   B. Resources for the CRRFs will be transferred from the General Fund, Water/ Wastewater
      Utility Fund and Electric Utility Fund. The transfer amounts will be calculated as follows:
          1. General Fund – At least 50% of the previous fiscal year’s depreciation expense for
              vehicles and equipment.
          2. Water/ Wastewater Utility Fund – At least 50% of the previous fiscal year’s
              depreciation expense for vehicles and equipment.
          3. Electric Utility Fund – At least 50% of the previous fiscal year’s depreciation
              expense for vehicles and equipment.

   C. CRRF resources are restricted to capital expenses for vehicles and equipment that meet the
      City’s capitalization threshold and criteria.




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IX. Financial Planning, Accounting, Auditing and Reporting
     A.      Financial Planning – The Director of Finance provides recommendations for short-
     term and long-term strategic financial planning to efficiently and effectively use the City’s
     financial resources. This financial planning is achieved in accordance with the goals and
     priorities of the City Council, the City Manager, and in compliance with applicable laws and
     GAAP.

     B.      Accounting System – The Director of Finance is responsible for the development,
     maintenance and administration of the City’s accounting system. Compliance with GAAP
     and applicable federal, state and local laws and regulations will be maintained. This
     responsibility also includes the implementation and maintenance of internal accounting
     controls for the City’s financial resources. Functions of the accounting system include
     payroll, accounts payable, general ledger, grants, capital projects, fixed assets, accounts
     receivable, self-insurance, utility billing and collections.

     C.     Financial Auditing –

            1.       Qualifications of the Auditor – In conformance with the City's Charter and
            according to the provisions of Texas Local Government Code, the City will be
            financially audited annually by an outside independent auditing firm. The auditing
            firm must demonstrate that it has the breadth and depth of staff to conduct the City's
            financial audit in accordance with generally accepted auditing standards and
            contractual requirements. The auditing firm must hold a license under the Civil
            Statutes of Texas and be capable of demonstrating that it has sufficient staff which
            will enable it to conduct the City's financial audit. The auditing firm will complete its
            financial audit within 120 days of the City's fiscal year end. The auditing firm will
            submit its Management Letter to the City Council within 30 days of the completion
            of its financial audit. The Management Letter will state the auditing firm’s findings
            of non-compliance and recommendations for compliance.

            The Director of Finance shall respond within 60 days in writing to the City Manager
            and City Council regarding the auditing firm’s Management Letter, addressing the
            findings of non-compliance contained therein.

            2.      Responsibility of Auditing Firm to City Council – The auditing firm is
            retained by and is accountable directly to the City Council and will have access to
            direct communication with the City Council if the City staff is unresponsive to the
            auditing firm’s recommendations or if the auditing firm considers such
            communication necessary to fulfill its legal and professional responsibilities.

     D.     Financial Reporting –

            1.     External Reporting – The City Finance Department will prepare the necessary
            transmittal letter, financial summaries and tables, notes and miscellaneous financial

                                               61
       information contained within the comprehensive annual financial report (CAFR).
       The auditing firm will audit this financial information for compliance with GAAP.
       The audited CAFR will be submitted to the City Council for their review and will be
       made available to the public for inspection.

       2.       Internal Reporting – The City Finance Department will prepare internal
       financial reports, sufficient to plan, monitor, and control the City's financial affairs.
       The City Finance Department will strive for excellence in its financial reporting. The
       following qualitative characteristics of accounting information will be incorporated
       in all reports that are prepared:

Definitions of Qualitative Characteristics of Accounting Information:

Bias - Bias in measurement is the tendency of a measure to fall more often on one side than
the other of what it represents instead of being equally likely to fall on either side. Bias in
accounting measures means a tendency to be consistently too high or too low. Financial
reporting will strive to eliminate bias in accounting measures.

Comparability – The quality of information that enables users to identify similarities in and
differences between two sets of economic phenomena.

Completeness – The inclusion in reported information of everything material that is
necessary for faithful representation.

Conservatism – A prudent reaction to uncertainty to try to insure that uncertainty and risks
inherent in financial situations are adequately considered.

Consistency – Conformity from period to period with unchanging policies and procedures.

Feedback Value – The quality of information that enables users to confirm or correct prior
expectations.

Materiality – The magnitude of an omission or misstatement of accounting information that,
in light of surrounding circumstances, makes it probable that the judgment of a reasonable
person relying on the information would have been changed or influenced by the omission or
misstatement.

Neutrality – Absence in reported information of bias intended to attain a predetermined
result or to induce a particular mode of behavior.

Predictive Value – The quality of information that helps users to increase the likelihood of
correctly forecasting the outcome of past or present events.



Relevance – The capacity of information to make a difference in a decision by helping users

                                          62
    to form predictions about the outcomes of past, present, and future events or to confirm or
    correct prior expectations.

    Reliability – The quality of information that assures that information is reasonably free from
    error and bias and faithfully represents what it purports to present.

    Representational Faithfulness – Correspondence or agreement between a measure or
    description and the phenomenon that it purports to represent (sometimes called validity).

    Timeliness – Having information available to a decision-maker before it loses its capacity to
    influence decisions.

    Understandability – The quality of information that enables users to perceive its significance.

    Verifiability – The ability through consensus among measurers to insure that information
    represents what it purports to represent or that the chosen method of measurement has been
    used without error or bias.

X. Treasury Management
    A.      Investments – The Director of Finance shall promptly deposit all City funds with the
    City's depository bank in accordance with the provisions of the current depository bank
    agreement. The Director of Finance will then promptly invest all funds in any negotiable
    instrument that the City Council has authorized under the provisions of the State of Texas
    Public Funds Investment Act and in accordance with the City Council approved Investment
    Policy.

    B.      Cash – The City's cash flow will be managed to maximize the cash available to
    invest. Such cash management will entail the centralization of cash collection centers such as
    utility bills, building and related permits and licenses, parks and recreation, and other
    collection offices where appropriate and feasible.

    Idle cash position will be determined daily to maximize interest income. The underlying
    theme will be that idle cash will be invested with the intent to 1) safeguard assets, 2)
    maintain liquidity, and 3) maximize return.

    The City Finance Department will use a facsimile check-signing machine, bearing the
    signatures of the City Manager and Director of Finance. Internal controls will be established
    to secure this machine and to prevent its misuse.

    The City Manager, Director of Administration, Director of Finance and Assistant Director of
    Finance are authorized signatories on all City depository bank accounts. Any withdrawal,
    transfer or payment of City funds requires a minimum of two signatures.

XI. Debt Management
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A.      Policy Statement – The City Council recognizes the primary purpose of major capital
projects is to support provision of services to its residents. Using debt financing to meet the
major capital project needs of the community must be evaluated according to two tests -
efficiency and equity. The test of efficiency equates to the highest rate of return for a given
investment of resources. The test of equity requires a determination of who should pay for
the cost of major capital projects. In meeting the demand for major capital projects, the City
will strive to balance the load between debt financing and "pay as you go" financing
methods. The City Council realizes failure to meet the demands of growth may inhibit its
continued economic viability, but also realizes that the amount of debt incurred may have a
negative financial impact. The City will achieve an appropriate balance between service
demands and the amount of debt incurred. The aforementioned tests and methods of
financing will assist the City Council, City Manager and Director of Finance in achieving
this appropriate balance.

B.     Types of Debt –

       1.      General Obligation Bonds (GO's) – General obligation bonds will be issued
       to fund major capital projects of the general government, are not to be used to fund
       operating needs of the City and are backed by the full faith and credit of the City as
       well as the ad valorem taxing authority of the City as prescribed by law. The term of
       a bond issue will not exceed the useful life of the major capital projects funded by
       the bond issue and will generally be limited to no more than twenty years. GO’s must
       be authorized by a vote of the citizens of the City.

       2.      Revenue Bonds (RB's) – Revenue bonds will be issued to fund major capital
       projects necessary for the continuation or expansion of a service which produces a
       revenue sufficient enough to obtain investment grade ratings and credit enhancement
       and for which the major capital project may reasonably be expected to provide for a
       revenue stream to fund the annual debt service requirements. The term of a bond
       issue will not exceed the useful life of the major capital projects funded by the bond
       issue and will generally be limited to no more than twenty years. RB’s do not need a
       vote of the citizens of the City.

       3.      Certificates of Obligation (CO's) and Limited Tax Notes (Notes) –
       Certificates of obligations will be issued to fund major capital projects, which are not
       otherwise covered under either General Obligation Bonds or Revenue Bonds. Notes
       will be used in order to fund capital requirements which the useful life does not
       exceed seven (7) years as authorized by State law. Debt service for CO's or Notes
       may be either from general revenues or backed by a specific revenue stream or
       streams or by a combination of both. The term of the CO’s will not exceed the useful
       life of the major capital projects funded by the certificate issuances and will
       generally be limited to no more than twenty years. Neither CO’s nor Notes require a
       vote of the citizens of the City.
       4.      Method of Sale – The Director of Finance will use a competitive bidding
       process in the sale of bonds unless the nature of the issue or market conditions

                                          64
        warrant a negotiated sale. In situations where a competitive bidding process is not
        elected, the Director of Finance will publicly present the reasons why and will
        participate with the City’s Financial Advisor in the selection of the underwriter or
        direct purchaser.

C.      Analysis of Financing Alternatives – The Director of Finance will explore
alternatives to the issuance of debt for major capital projects. These alternatives will include,
but are limited to: 1) grants-in-aid, 2) use of fund balance or working capital, 3) use of
current revenues, 4) contributions from developers and others, 5) leases, and 6) impact fees.

D.    Conditions for Using Debt – Debt financing of major capital projects will be done
only when the following conditions exist:

-   When non-continuous projects (those not requiring continuous annual appropriations)
    are desired;

-   When it can be determined that future users will receive a benefit from the major capital
    project;
-   When it is necessary to provide basic services to residents and taxpayers (for example,
    purchase of water rights);
-   When total debt, including that issued by overlapping governmental entities, does not
    constitute an unreasonable burden to the residents and taxpayers.

E.     Costs and Fees – All costs and fees related to debt issuance will be paid out of debt
proceeds.

F.     Debt Limitations – The City maintains the following limitations in relation to debt
issuance:

-   An Ad Valorem tax rate of $1.20 per $100 of assessed value is the maximum municipal
    tax rate that may be levied for all General Fund tax supported expenditures and debt
    service.

-   Debt payments made solely from ad valorem tax revenue should not exceed 20% of
    combined General Fund and Debt Service Fund expenditures.

-   Total outstanding debt should not exceed 5% of the current year’s taxable assessed
    valuation.

G.      Arbitrage Rebate Compliance – The City Finance Department will maintain a system
of record keeping and reporting to comply with arbitrage rebate compliance requirements of
the Federal tax code.

H.     Sound Financing of Debt – When the City utilizes debt financing, it will ensure that
the debt is soundly financed by:


                                           65
-    Conservatively projecting the revenue sources that will be used to pay the debt;

-    Financing the major capital project over a period not greater than the useful life of the
     major capital project;
-    Maintaining a debt service coverage ratio which ensures that combined debt service
     requirements will not exceed revenues pledged for the payment of debt; and

-    To the extent possible, the City will aim to repay at least 25% of the principal amount of
     its general obligation debt within five years and at least 50% within 10 years. The City
     may choose to structure debt repayment so as to wraparound existing debt obligations or
     to achieve other financial planning goals.

I.      Credit Enhancement – The City should seek credit enhancement (letters of credit,
bond insurance, surety bonds, etc.) when such credit enhancement proves cost effective.
Credit enhancement may be used to improve or establish a credit rating on a debt obligation
even if such credit enhancement is not cost effective if the use of such credit enhancement
meets the financial planning goals.

J.    Financing Methods – The City maintains the following guidelines in relation to
methods of financing used to issue debt:

-    Where it is efficient and cost effective, the City will use revenue or other self-supporting
     bonds in lieu of tax supported/pledged debt instruments.

-    When appropriate, the City will issue non-obligation debt, for example, Industrial
     Development Revenue bonds, to promote community stability and economic growth.

K.      Refunding – Periodic reviews of all outstanding debt will be undertaken to determine
refunding opportunities. Refunding will be considered if and when there is a net economic
benefit of the refunding or the refunding is essential in order to modernize covenants, which
impinge on prudent and sound financial management.

L.      Full and Complete Disclosure – The City of San Marcos is committed to full and
complete financial disclosure, and to cooperating with credit rating agencies, institutional
and individual investors, City departments, other levels of government, and the general
public to share clear, comprehensible and accurate financial information. Official statements
accompanying debt issues, comprehensive annual financial reports, and continuous
disclosure statements will meet, at a minimum, the standards articulated by the Municipal
Standards Rulemaking Board, the National Federation of Municipal Analysts, the
Government Accounting Standards Board (GASB), and the Securities Exchange
Commission (SEC). The City Finance Department will be responsible for ongoing disclosure
to nationally recognized municipal securities information repositories (NRMSIRs). Updates
of budget, debt and financial information will be provided to credit rating agencies and
investors when new debt is issued.

M.       Credit Rating – The City of San Marcos seeks to maintain the highest possible credit

                                           66
     ratings for all categories of debt that can be achieved without compromising the delivery of
     basic City services.

     N.      Elections – State law regulates which securities may be issued only after a vote of the
     electors of the City and approved by a majority of those voting on the issue.

            1.      Election Required – Securities payable in whole or in part from ad valorem
            taxes of the City except issues such as tax increment securities, certificates of
            obligation, and limited tax notes.

            2.      Election Not Required –

            -    Short-term notes (12 months or less) issued in anticipation of the collection of
                 taxes and other revenues.

            -    Securities issued for the acquisition of water rights or capital improvements for
                 water and wastewater treatment.
            -    Securities payable solely from revenue other than ad valorem taxes of the City.
            -    Refunding securities issued to refund and pay outstanding securities.

            -    Tax increment securities payable from ad valorem tax revenue derived from
                 increased valuation for assessment of taxable property within a plan of
                 development or other similar area as defined by applicable State Statutes.

            -    Certificates of obligation.

            -    Limited Tax Notes.
            -    Securities for the construction or improvement of public streets and/or rights-of-
                 way in order to relieve congestion or for public safety matters.




XII. Financial Conditions, Reserves, and Stability Ratios
     A.    Operational Coverage – The City's Enterprise Funds will comply with all bond
     covenants and maintain an operational coverage of at least 120%, such that current operating

                                               67
revenues will exceed current operating expenses.

B.      Fund Balances/ Working Capital –
The General Fund's fund balance should be at least 25% of the General Fund's annual
operating expenditures. This percentage is the equivalent of three months operational
expenditures. As a goal, the City will strive to achieve 33% fund balance, or the equivalent
of four months of operational expenditures.

The Electric Utility and Water and Wastewater Utility Funds working capital should be
maintained at 25% of total operating expenses or the equivalent of four months. This
percentage is the equivalent of three months operational expenses. As a goal, the City will
strive to achieve 33% fund balance, or the equivalent of four months of operational
expenses.
Reserves will be used for emergencies or unforeseen expenditures, except when balances can
be reduced because their levels exceed guideline minimums as stated below.

C.      Capital and Debt Service Funds –

        1.      Monies in the Capital Improvement Program Funds should be used within
        twenty-four months of receipt or within a reasonable time according to construction
        schedules. Interest income and unspent monies from bond issuances can be used to
        fund similar projects as outlined by bond covenants. Any remaining monies will be
        used to pay the bond issuance.

        2.      Revenues in the Debt Service Fund are based on property tax revenues and
        interest income. Reserves in the Debt Service Fund are designed to provide funding
        between the date of issuance of new debt and the time that property tax levies are
        adjusted to reflect the additional debt. Article 10, Section 10.02 of the City Charter
        requires that the City maintain a reserve balance of two percent of all outstanding
        general obligation debt.

D.      Ratios/Trend Analysis –

Ratios and significant balances will be incorporated into financial reports. This information
will provide users with meaningful data to identify major trends of the City's finances
through analytical procedures. We have selected the following ratios/balances as key
indicators:

-    Fund Balance:                     Assets Less Liabilities
     FB                                AL (Acceptable level)>25.0% of Expenditures

-    Working Capital:                  Current Assets Less Current Liabilities
     CA - CL                           AL > 25.0% of Expenses

-    Current Ratio:                    Current Assets Divided By Current Liabilities
     CA/CL                             AL> 1.00

                                         68
     -   Quick Ratio:                       "Liquid" Current Assets Divided By Current Liquid
                                                   Liabilities
         CA/CL                              AL > 1.00

     -   Debt Ratio (%):                    Current Liabilities Plus Long Term Liabilities
                                            Divided By Total Assets
         CL+LTL/TA                          AL< 1.00

     -   Enterprise Operational             Operating Revenue Divided By Operating
         Coverage:                          Expense
         OR/OE                              AL > 1.20

     Our goal is to develop minimum/maximum levels for the ratios/balances above through
     analyzing the City’s historical trends and anticipated future trends. We will also analyze and
     compare the City to other municipalities to develop these acceptable levels.


XIII. Internal Controls
     A.     Written Procedures – Wherever possible, the Director of Finance will establish and
     maintain written procedures for all functions involving cash handling and/or accounting
     throughout the City. These procedures will embrace the general concepts of fiscal
     responsibility set forth in this policy statement.

     B.       Department Directors’ Responsibilities – Each Department Director is responsible to
     ensure that good internal controls are followed throughout their Department, that all City
     Finance Department directives or internal control recommendations are implemented, and
     that all independent auditor recommendations are addressed.

XIV. Personnel and Training
     A.     Adequate Personnel – Personnel levels will be adequate for the City Finance
     Department to operate effectively. Overtime will be used only to address temporary or
     seasonal demands that require excessive hours. Workload allocation alternatives will be
     explored before increasing personnel.

     B.      Training – The City Finance Department will support the continuing education
     efforts of all personnel. Personnel will be held accountable for communicating, teaching, and
     sharing with other personnel members all information and training materials acquired from
     seminars, conferences, and related education efforts.

     C.      Awards, Credentials, Recognition – The City Finance Department will support
     efforts and involvement which result in meeting standards and receiving exemplary
     recitations on behalf of any of the City's fiscal policies, practices, processes, products, or

                                              69
       personnel. Certifications may include Certified Government Finance Officer, Certified
       Public Accountant, Management Accountant, Certified - Internal Auditor, and Certified Cash
       Manager.

The City Finance Department will strive to maintain a high level of excellence in its policies and
procedures. The CAFR and budget will be presented annually to the Governmental Finance Officers
Association for evaluation and consideration for the Certificate of Achievement for Excellence in
Financial Reporting and the Distinguished Budget Presentation Award.




                                               70
Reader’s Guide
      This section is meant to assist the lay reader in understanding the budget document and
components. A summary of the major sections is included in this guide to make reading this
document much easier.

Introduction
       The Introduction is an opportunity for management to introduce the budget to the City
Council and citizenry. There are two sections of the Introduction—the Transmittal Letter and the
Executive Summary.

       The Transmittal Letter
       The Transmittal Letter formally conveys the budget document to the City Council, the
       governing body for the citizens of San Marcos. A summary of key initiatives is contained
       within this section.

       Executive Summary
       This section provides a detailed explanation of revenues, expenses and fund balances within
       each of the major budgeted funds.

       Budget Policy Statement
       The City Council formally adopts the Budget Policy Statement through a resolution. Staff
       uses the statement as a guideline for developing the proposed budget.

       City of San Marcos Financial Policy
       The City Council reviewed the policy during the 2006 Budget Policy Workshop and no
       changes were recommended. The financial policy provides long-term, organization-wide
       guidance from which budgetary and financial decisions are made. The policy is broad in
       scope and purpose and covers major financial areas such as budgeting, revenues,
       expenditures, capital improvements program, financial condition and reserves, and internal
       controls.

       Reader’s Guide
       The Reader’s Guide provides a brief summary of the information contained in the various
       sections of the budget. Supplemental data such as form of government, geographic location,
       population, demographics is contained within this section. This background information
       serves to familiarize the reader with the community’s demographic and economic profile.




                                               71
Budget Summary
        The Budget Summary is a compilation and summary of all financial information contained in
the operating detail section of the budget. All summaries are gross budget presentations—meaning
that interfund transfers are included.

       Consolidated Fund Balance Statement
       The Consolidated Fund Balance Statement is a detailed table that analyzes fund balances for
       all funds and includes revenue and expense totals for the previous fiscal year and adopted
       budget.

       Consolidated Summary of Major Revenues and Expenses
       This summary is a detailed table that lists the major sources of revenue and the major
       categories of expenses for all funds.

       Consolidated Summary of Operating Transfers
       This table shows the various operating and indirect transfers made between the various funds
       within the adopted budget.

       Consolidated Revenue, Expense and Fund Balance Comparison
       This summary compares three years of revenue, expense and fund balance history (prior
       year’s actual, current year’s estimate, and adopted for next year).

       Property Tax Valuation and Revenue
       This detailed worksheet illustrates the method for calculating property tax revenue by
       providing information about the tax roll, collection rates and the division of the property tax
       rate between debt service and operations and maintenance.

Budget Structure
The budget document is divided into the following fund groups. Not all funds reported in the audited
financial statements are budgeted. Smaller, less significant, and rarely used funds such as grant and
trust and agency funds are not budgeted.

General Fund
       The General Fund is the primary operating fund for the City. It is viewed as the general
government fund and accounts for a vast number of financial resources, except for resources
required to be accounted for in other funds.




                                                 72
Debt Service Fund
        The Debt Service Fund is used to account for the debt service portion of property tax
revenues received. Debt service taxes are specifically assessed for the payment of general long-term
debt principal and interest. The use of a separate fund ensures that debt service tax revenues are not
commingled with other revenues and not used for any purpose other than debt repayment.

Special Revenue Funds
        Special revenue funds are used to account for the proceeds of certain specific revenue
sources that are legally restricted to expenditures for specified purposes. The City utilizes this type
of fund to account for revenues such as hotel occupancy tax, grants, special fines authorized by the
State, and forfeiture revenue from seized assets.

       Hotel Occupancy Tax
       The Hotel Occupancy Tax Fund is used to account for a local bed tax of 7%. Tax monies
       collected are used for tourist development activities in accordance with State law.

       Municipal Court Technology
       This fund was established in fiscal year 2000 to provide budgeting and accountability for
       revenues collected from of a technology fee assessed through the municipal court system.
       The Texas Legislature established the fee in its 1999 legislative session to provide a funding
       source to local municipal courts for future technological enhancements to their respective
       court systems. The enhancements may include computer systems, network systems,
       software, imaging systems, electronic kiosks, electronic ticket writers or docket management
       systems.

       Municipal Security Fee
       This fund was established in 2006 to provide budgeting and accountability for revenues
       collected from a security fee assessed through the municipal court system. The fee can only
       be used to finance security personnel or items used for the purpose of providing security
       services for the building that houses the Municipal Court.

       Seized Assets
       This fund provides budgeting and accountability for revenues collected from the sale of
       forfeited and seized assets belonging to various criminals engaged in certain illegal
       activities. Revenues from these seized assets are used to fund various technology
       improvements in our Police Department.

       Community Development Block Grant
       In fiscal year 1994, the United States Department of Housing and Urban Development
       designated the City of San Marcos as an Entitlement City for the Community Development
       Block Grant (CDBG). The program is designed to eliminate slum and blight conditions and
       to serve the needs of low to moderate-income residents.



                                                  73
       Women, Infants and Children Program Fund
       The Women, Infants and Children Program provides nutritional food supplements,
       nutritional counseling, clinical assessments, and education to pregnant women, breast-
       feeding mothers, infants and children up to five years of age. The City of San Marcos
       operates a five-county regional WIC program that is funded through the Texas Department
       of Health and Human Services and the United States Department of Agriculture.

       Other Special Revenue Funds
       The Cemetery Operations Fund provides for maintenance and upkeep of the historic San
       Marcos City Cemetery.

Enterprise Funds
        Enterprise funds are used to account for governmental activities that are similar to those
found in private businesses. The major revenue source for these enterprise funds is the rate revenue
generated from the customers who receive the services provided. Expenses for these services are
paid for through revenue generated from services provided.

       Water/Wastewater Utility
       The City of San Marcos operates a superior water production and wastewater collection and
       treatment system for the community. This fund is used to account for the revenues and
       expenses of this utility system.

       Drainage Utility
       The City of San Marcos began assessing a drainage utility rate in fiscal year 2000 to all
       residential and commercial property located in the City. The drainage charge was established
       to provide funding for the planning, engineering, construction, maintenance, improvement
       and reconstruction of drainage projects throughout the City.

       Electric Utility
       The City of San Marcos purchases and distributes electric power to the San Marcos
       community. San Marcos has some of the lowest electric rates in Texas and has not raised
       rates since 1993. The utility operates at a 99.9997% reliability rate and has a system capacity
       of 145 megawatts.

       Municipal Airport
       The Municipal Airport has four runways and is situated on 1,356 acres. Additionally, there
       are 60 acres of maintained parking ramps and 38 City-owned hangars and shelters. Revenue
       sources such as storage rentals, hangar rentals, storage rentals, gross receipts fees and land
       leases partially support the daily operational costs. There are more than 235 based aircraft at
       the airport and more than 135,000 annual takeoffs, landings and approaches.




                                                 74
       Waste Collection Utility Fund
       The City of San Marcos outsources its residential solid waste collection through the use of a
       competitive bidding process. The solid waste collection company charges its monthly fee to
       the City on a per customer basis. This fee is passed on to each resident within the City. The
       waste collection revenue and expense were previously shown within the General Fund.

Permanent Funds
        The City serves as trustee for funds collected through its cemetery perpetual care fee. This
fee is assessed on all municipal cemetery plots sold. Interest earned from the Cemetery Perpetual
Care Fund is used to support the maintenance costs at the municipal cemetery. The principal amount
of the fund cannot be used for any purpose.

Miscellaneous and Statistical
       Statistical and supplemental financial data is contained within this section. This background
information serves to familiarize the reader with the community’s economic profile.

       Personnel Roster
       The Personnel Roster serves as a summary of the staffing level for all departments.
       Information is presented in two forms, positions and full-time equivalents (FTE’s). An FTE
       is a unit of measure that converts the hours worked by part-time and seasonal employees into
       equivalent hours worked by full-time employees. Full-time employees work 2,080 hours
       annually. An example of an FTE calculation would be a part-time employee that works 1,040
       hours annually. The FTE calculation would be 0.5 (1,040 ÷ 2,080).

       Glossary
       The glossary contains definitions of words used throughout the budget document. Most of
       the terminology is specific to local government budgeting and accounting and is not readily
       understood by a reasonably informed lay reader.

Basis of Budgeting
         Fund budgets are proposed on a basis consistent with modified and full accrual accounting
basis, with exceptions, including that depreciation, amortization and bad debt expenses are not
included in the budget, capital purchases are budgeted in the year of purchase, and debt principal is
budgeted in the year it is to be paid. The emphasis is on cash transactions in lieu of non-cash
transactions, such as depreciation and amortization. The focus is on the net change in working
capital.




                                                 75
        The General, Debt Service, Special Revenue, and Permanent funds are budgeted on a
modified accrual basis, with exceptions as noted above. Revenues are recognized when susceptible
to accrual (i.e., when they are “measurable and available”). Substantially all revenues are considered
to be susceptible to accrual. Ad valorem, sales, hotel, and franchise tax revenues are susceptible to
accrual. Licenses and permits, charges for services, fines and forfeitures, and miscellaneous
revenues (except earnings on investments) are recorded as revenues when received in cash because
they are generally not measurable until actually received. Investment earnings are recorded as earned
since they are measurable and available. Expenditures are recognized when the related fund liability
is incurred, if measurable and the liability will be liquidated with resources included in the budget,
except for (1) inventories of materials and supplies which may be considered expenditures either
when purchased or used; (2) prepaid insurance and similar items which need not be reported; (3)
accumulated unpaid vacation, sick pay, and other employee benefit amounts which need not be
recognized in the current period; (4) unmatured interest on long-term debt is recognized when due,
and (5) those exceptions noted above.222

        The Enterprise funds are budgeted on a full accrual basis with exceptions as noted above.
Revenues are budgeted in the year they are expected to be earned and expenses are budgeted in the
year the liability is expected to be incurred.

Basis of Accounting
Basis of accounting refers to the time at which revenues, expenses and the relates assets and
liabilities are recognized in the accounts and reported in the financial statements.

Governmental funds and agency funds are accounted for using the modified accrual basis of
accounting, revenues are recorded when susceptible to accrual (i.e., both measurable and available).
Available means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. Expenses, if measurable, are generally recognized when the related
fund liability is incurred. Exceptions to this general rule include the unmatured principal and interest
on general obligation long-term debt which is recognized when due and accrued vacation and sick
leave, which is included in the General Long-Term Debt Account Group. These exceptions are in
conformity with generally accepted accounting principles.

Property tax revenues are recognized when they become available. In this case, available means
when due, or past due and receivable within the current period and collected within the current
period or soon enough thereafter to be used to pay liabilities of the current period. Such time
thereafter shall not exceed 60 days. Tax collections expected to be received subsequent to the 60-day
availability period are reported as deferred revenue.




                                                  76
Sales taxes are recorded when susceptible to accrual (i.e., both measurable and available). Sales
taxes are considered measurable when in the custody of the State Comptroller and are recognized as
revenue at that time. Other major revenues that are considered susceptible to accrual include utility
franchise taxes, grants-in-aid earned and other intergovernmental revenues. In applying the
susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements
of the numerous individual grant programs are used for guidance. There are essentially two types of
intergovernmental revenues. In one, monies must be expended for the specific purpose or project
before any amounts will be paid to the City; therefore, revenues are recognized based upon the
expenses recorded. In the other, monies are virtually unrestricted as to purpose of expense and are
revocable only for failure to comply with prescribed compliance requirements. These resources are
reflected as revenues at the time of receipt, or earlier, if the susceptible to accrual criteria are met.

The accrual basis of accounting is utilized by the proprietary fund. Under the accrual basis of
accounting, revenues are recognized in the accounting period in which they are earned and become
measurable (i.e., water billings and accrued interest). Expenses are records in the accounting period
incurred, if measurable.

Organizational Relationships
        A department is a major administrative segment of the City which indicates overall
management responsibility for an operation or a group of related operations within a functional area
(e.g., Police Department, Parks and Recreation Department, Public Department). The smallest
organizational unit budgeted is the division. The division indicates responsibility for one functional
area, and in many cases these functional areas are put together to demonstrate a broader
responsibility. When this is done, the divisions are combined to make up one department. For
example, the Public Works Department is comprised of Public Works Administration, Streets,
Traffic, and Vehicle Maintenance.

Budget Amendment
       Following formal adoption, the budget is amended as necessary through a submission made
by a Department Director to the City Manager. A budget amendment form detailing the reason, line
items and amounts to be effected is prepared. The Finance Department reviews the amendment for
available dollars and the City Manager reviews the amendment for overall appropriate objectives
and purposes. Should appropriations transfer between Departments, Funds, or involve fund balance
or Contingency Funds, the amendment is submitted to City Council for approval; otherwise, the City
Manager has authority to approve or disapprove. Budget amendments that require City Council
approval are formally proposed as an ordinance of the City.




                                                   77
Budget Process
(a)   Strategic Planning and Visioning – Early in the budget process, the City Council and
      administrative staff retreat to discuss community needs and challenges. City Council
      develops short and long-term priorities as well as a policy statement to use for the current
      budget and future years.
(b)   Revenue Projection – The Finance Department staff develops revenue projections based
      upon trend analysis, anticipated changes in the local, state and national economies, and
      discussions with other departments. The revenue projection is used to determine the financial
      limitations for the development of the budget.
(c)   Budget Development – Departments develop a proposed budget that incorporates the goals
      outlined within the policy statement and the financial limitations as determined through
      revenue projections.
(d)   Budget Analysis – Once department budgets are submitted, a preliminary budget estimate is
      constructed. Administrative and Finance staff review the preliminary budget and hold
      department reviews. Funding requests and target levels are discussed in an attempt to
      reconcile department requests with financial limitations and policy statement goals.
(e)   Proposed Budget – The City Manager submits a proposed budget that seeks to meet City
      Council’s goals as outlined in the policy statement. Council then reviews the proposed
      budget for conformity to their overall direction and guidance. Workshops are held to review
      and discuss the budget. City Council may take action to make changes to the proposed
      budget.
(f)   Public Hearings / Budget Adoption – Public hearings on the budget and proposed tax rate
      are held to give citizens an opportunity to speak for or against the proposed budget. Citizens
      also have an opportunity to attend budget workshops that occur prior to the budget adoption.
      The proposed budget and tax rate take effect on October 1st.




                                             78
Budget Calendar
January 27            City Council holds Strategic Visioning Workshop.

February 24           City Council holds Budget Policy Workshop.

April 5               Departments are given instructions for preparing their budgets.

April 19              Departments submit their proposed budgets.

April 26 – April 28   Department budgets are reviewed.

April 28 – July 31    Budget is prepared for City Council.

July 25               Appraisal District certifies City tax roll and gives tax rolls to Finance
                      Director.
July 28               City Manager submits proposed budget to City Council and files
                      proposed budget with City Clerk.

August 13             City publishes notice of effective property tax rate calculation, roll
                      back rate, debt obligation schedule and unencumbered fund balances.

August 15             Effective property tax rate and rollback tax rate submitted to City
                      Council.

August 3 & 4          Presentation of proposed budget and budget workshops with City
                      Council.

August 15             Public hearing on proposed budget.

September 11          Adopt budget and property tax rate by Ordinance.
October 1             First day of new fiscal year.




                                      79
                        CITY OF SAN MARCOS
                                 2006-07 ANNUAL BUDGET
                     DEPARTMENT/RESPONSIBILITY CENTER MATRIX
This matrix shows the correlation between departments and their respective responsibility center.
Listed across the top of the matrix are the responsibility centers. The departments are shown along
the side. Areas containing a check mark indicate the responsibility of the department.

                                                      Responsibility Center
                                    General        Community       Community
 Department                         Service         Service        Development     Public Safety
 Administration
 City Clerk
 Legal
 Human Resources
 Finance
 Information Technology
 Code Enforcement
 Environmental Health
 Library
 Parks and Recreation
 Environment & Engineering
 Planning and Development
 WIC
 Fire
 Police
 Public Works
 Water & Wastewater Utility
 Electric Utility
 Municipal Airport




                                              80
                              CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                           DEPARTMENT/DIVISION ASSIGNMENT BY FUND
   The annual budget is presented by fund. This matrix shows the assignment of departments and
   divisions by fund within the budget. Listed across the top of the matrix are the major funds. The
   departments and divisions within each fund are shown below the respective fund.

                         Hotel
                       Occupancy     WIC Program       Water /WW Utility                                 Municipal
  General Fund         Tax Fund         Fund                 Fund               Electric Utility Fund   Airport Fund
  Administration       Main Street   Administration       Wastewater            Customer Information       Airport
   City Clerk                          Nutrition          Collection              Meter Operations
     Legal                           Breastfeeding            Wastewater              Operations
    Finance                                                Treatment Facility        Maintenance
  Muncipal Court                                              Operations        Billing & Collections
 Human Resources                                             Water Quality
    Information                                               Services
    Technology
Code Enforcement                                           Water Production/
                                                              Wastewater
  Environmental                                            Treatment Facility
     Health                                                  Maintenance
 Animal Control
      Library
Parks & Recreation                                         Water Distribution
  Activity Center                                            Maintenance
    Facilities &
     Grounds                                                Administration
   Park Rangers
  Environment &
   Engineering
    Planning &
   Development
Building Inspections
        Fire
     Police
  Administration
 Police Operations
  Public Works
  Administration
      Streets
  Traffic Control
Equipment Services



                                                      81
                                CITY OF SAN MARCOS
                                           2006-07 ANNUAL BUDGET
                                              ORGANIZATION CHART

                                                          Citizens of
                                                          San Marcos

                                                          City Council



                                           Boards &                      Civil Service
                                          Commissions                    Commission

                                             Health                      Veterinarian
                                             Officer

                                          City Attorney                   City Clerk



                                           Municipal
                                          Court Judge

                                                        City Manager



              General Service               Community               Community                     Public Safety
                                             Service                Development

 Administration          Code Enforcement                                          Environment &                  Fire Services
                                                                                    Engineering

    Finance                Environmental                                            Planning and              Police Services
                              Health                                                Development

Human Resources                 Library                                             Public Works



                             Parks &                                                 Water &
                            Recreation                                           Wastewater Utility

                         Municipal Airport                                         Electric Utility



                           WIC Program




                                                            82
                           CITY OF SAN MARCOS
                                  2006-07 ANNUAL BUDGET
                                  COMMUNITY INFORMATION

The City of San Marcos is a Home-Rule municipality operating under the Council-Manager form of
government and is approximately 27.8 square miles in size with a residential population of 47,069.
The city was incorporated on July 11, 1877. San Marcos is the county seat and principal commercial,
educational and recreational center of Hays County. San Marcos is located on Interstate Highway 35
and U.S. Highway 81, and at the intersection of State Highways 80, 142, 21 and 123, midway
between the metropolitan areas of San Antonio and Austin. San Marcos attracts millions of visitors
annually that shop at the Prime Outlet Mall, Tanger Outlet Mall, and visit the Aquarena Springs Park
and Wonder World Park. Beef cattle, sorghums and cotton are the principal sources of agricultural
income. Retail sales are the principal source of economic income.

The climate of San Marcos is humid sub-tropical with hot summers. The annual total precipitation is
42.41 inches. Rainfall occurs in late spring and early fall. The mean length of the growing season
(without freeze) is 254 days. San Marcos receives about 63% of total possible sunshine annually.
San Marcos sits between 650 and 805 feet above sea level.

There are 261.22 lane miles of streets and roads in the city, with approximately 99.9% of these
paved. Transportation methods include two bus services, an airport, and two railways. There are
three fire stations and one police station in the city.

There are four public elementary schools, four private elementary schools, one public intermediate
school, two public junior high schools, 3 private junior high schools, one public high school, two
private high schools, and one public alternative education school located in San Marcos.

There are currently 25,975 registered voters within the city limits. 4,622 (18.5%), of the then 25,047
registered voters, cast their votes in the November 8, 2005 General Election.

The City’s 27,000 square-foot public library houses a collection of over 130,000 volumes. The
library collection includes books, videos, audiotapes, computer software, and audiovisual equipment.
 All residents of San Marcos and Hays County are eligible to borrow materials and use other library
services. The library offers a wide array of programs and services including GED and English as a
Second Language tutoring for adults, story time and film programs for children, inter-library loan,
and reference assistance. The library is open seven days per week and makes its two meeting rooms
and thirty internet-accessible computers available for public use.




Recreational Facilities:
                                               83
Activity Center. 56,000 square-foot facility offering programs to youth, adults and seniors.
Bicentennial Park. 2.94 acres – jogging trail, picnic tables.
Castle Forest. 2.6 acres – undeveloped.
Children’s Park. 5.77 acres – picnic facilities jogging trails, playscape, and restroom
facilities.
City Park. 7.75 acres – one multi-purpose football/soccer field, recreation hall, picnic
facilities, two basketball courts, and playground apparatus.
Dunbar Park. 7.3 acres – recreation center, basketball court, playground apparatus, multi-
purpose field, and picnic facilities.
Gary Parkland. 40 acres – 4 lighted softball fields, concession stand, restroom facilities, and
7 multi-size soccer/football fields and concession.
H-E-B Park. 1 acre – picnic facilities and playground apparatus.
Hills of Hays. 2.91 acres – playground, basketball court, and picnic facilities.
Lancaster. 2.315 acres – playground apparatus and basketball court.
Memorial Park. 12.56 acres – public library and new activity center.
Old Wastewater Treatment Plant. 12 acres – undeveloped.
Prospect Park. 9 acres – greenspace, undeveloped.
Ramon Lucio Park. 22.10 acres – 5 lighted little league fields, one lighted pony league field,
jogging trails, picnic facilities, and one covered pavilion.
Rio Vista Park. 13.54 acres – swimming pool, 2 covered pavilions, 6 lighted tennis courts,
picnic facilities, basketball court, jogging trails, Park Rangers and Fire Marshall.
Rive ridge. 7.4 acres – 2 tennis courts, basketball courts and jogging trail.
San Marcos Riverwalk Park and Fish Hatchery. 3.4 acres with bike and hiking trails.
San Marcos Park and Wildlife Habitat. 8.8 acres – picnic facilities and jogging trails.
Schulle Canyon. 20.9 acres – greenspace, undeveloped.
Sessions Drive. 5 acres – greenspace, undeveloped.
Swift Memorial Park. 0.25 acres – playground apparatus, basketball court and greenhouse.
Verimendi Plaza. 1.25 acres – Charles S. Cock House Museum, Memorial Grove, riverwalk,
gazebo, fountain, gardens, foundation and picnic facilities.
Veteran’s Memorial Park. 1.25 acres – picnic facilities, one covered pavilion, playground
apparatus and basketball court.
Victory Gardens. 0.25 acres – playground apparatus and basketball court.




                                        84
                          CITY OF SAN MARCOS
                                 2006-07 ANNUAL BUDGET
                                 DEMOGRAPHIC STATISTICS
                                 LAST TEN FISCAL YEARS
                              Hays County                         SMCISD
                                Median                             School      Unemployment
Fiscal       Population         Family           Hays County     Enrollment    Rate for City of
Year            (A)             Income           Median Age         (C)         San Marcos

1996             32,200        30,430 (G)        26.6    (B)          6,887         4.3 % (D)

1997             32,816        30,167 (G)        26.6    (B)          6,898         4.8 % (D)

1998             33,443        34,440 (G)        29.7    (F)          6,904         4.1 % (D)

1999             34,082        55,400 (G)        30.3    (F)          7,043         4.0 % (H)

2000             34,733 (I)    55,892 (F)        28.4    (I)          7,189        3 .4 % (H)

2001             37,396        55,815 (F)        28.4    (F)          7,102         5.4 % (H)

2002             40,514 (A)    45,400 (A)        28.9    (A)          6,960         7.2 % (A)

2003             42,165 (A)    52,195 (F)        28.94   (A)          7,064         5.5 % (H)

2004             44,769 (A)    66,900 (A)        28.94   (A)          7,020         6.8 % (A)

2005             43,994 (A)    67,070 (A)        28.90   (A)          7,200         3.6 % (A)


         Sources:
         A      City of San Marcos Planning Department.
         B      U.S. Department of Commerce; information for Hays County.
         C      Superintendent’s Average Attendance Report (years reported are September
                through June).
         D      Texas Statement Employment Commission, Economic Research and Analysis
                Department, January 1991 - Civilian Labor Force Annual Average Data Report.
         E      City staff estimate; awaiting release of final census information.
         F      Chamber of Commerce, San Marcos, Texas.
         G      Fiscal year 1996 changed from Per Capita Income to Median Income.
         H      Texas Workforce Commission labor market information.
         I      US Census Bureau
         J      Texas Education Agency



                                            85
                     CITY OF SAN MARCOS
                              2006-07 ANNUAL BUDGET
                        TEN LARGEST TAXPAYERS (2005)


                                                                        Percent of
                                                                          Total
                                                          Assessed      Assessed
Business Name                     Business Category       Valuation     Valuation
 H.E.B. Distribution Center       Grocery Warehouse      $ 74,891,800    4.14 %
 Grande Communications            Communications          39,700,720     2.20 %
 Prime Outlets San Marcos         Retail Center           25,355,755     1.40 %
 CFAN                             Airplane Components     24,252,340     1.34 %
 H.E.B. Grocery Company           Grocery Store           24,050,601     1.33 %
 Tanger Factory Outlet Center     Retail Center           23,992,952     1.33 %
 Fairfield San Marcos             Apartment Property      19,503,830     1.08 %
 San Marcos Exchange              Apartment Property      18,505,640     1.02 %
 Century Telephone                Telecommunications      15,820,210     0.88 %
 Hays Energy                      Power plant             13,843,480     0.77 %
Total                                                   $ 279,917,328   15.49 %




                                        86
                    CITY OF SAN MARCOS
                          2006-07 ANNUAL BUDGET
                      TEN LARGEST EMPLOYERS (2005)


                                                             Number of
Business Name                           Business Category    Employees
Southwest Texas State University        University                6,406
Prime Outlets San Marcos                Retail Outlet             2,000
Tanger Factory Outlet Center            Retail Outlet             1,540
San Marcos CISD                         Education                 1,081
Grande Communications                   Communications              850
Hays County                             County Government           802
Hunter Industries                       Manufacturing               650
Central Texas Medical Center            Hospital                    580
Gary Job Corps Center                   Federal Government          567
H.E.B. Distribution Center              Grocery Warehouse           540




                                   87
                CITY OF SAN MARCOS
                       2006-07 ANNUAL BUDGET
                TEN LARGEST MANUFACTURERS (2005)


                                                   Number of
Business Name                                      Employees
Hunter Industries                                        650
Wide-Lite Corporation                                    325
CFAN                                                     260
Butler Manufacturing                                     225
Goodrich Aerostructures Group                            190
Thermon Manufacturing                                    173
Heldenfels                                               126
Parkview Metals                                           75
The Fountain People, Incorporated                         72
T.B. Woods                                                67




                                    88
                                     CITY OF SAN MARCOS
                                                  2006-07 ANNUAL BUDGET
                                   CONSOLIDATED FUND BALANCE STATEMENT
                                       Fund         Estimated      Estimated         Fund          Proposed      Proposed       Fund
                                      Balance       Revenues        Expenses        Balance       Revenues       Expenses      Balance
                                     10-01-2005     FY 2005-06     FY 2005-06      10-01-2006     FY 2006-07    FY 2006-07    09-30-2007



Governmental Funds
 General Fund                          9,948,791     32,321,470     31,377,987      10,892,274     32,032,391    34,019,699     8,904,965

 Debt Service Fund                     1,531,738      5,369,729        4,926,068     1,975,399      6,104,197     6,009,197     2,070,398



Special Revenue Funds
 Hotel Occupancy Tax Fund             132,651.19      1,237,476        1,278,109        87,918      1,251,594     1,322,454        17,059

 Municipal Court Technology Fund        134,217          34,343         130,000         38,559         35,100        73,659                  0

 Municipal Court Security Fee Fund            -             -                -              -          23,625        23,625              -

 Seized Assets Fund                       50,461          5,100           1,500         54,061          5,100         1,500        57,661

 CDBG Program Fund                            -         587,708         587,708             -         531,284       531,284              -

 WIC Program Fund                             -       1,405,237        1,405,237            -       1,561,324     1,561,324              -

 Cemetery Operations Fund                 38,925        125,662         118,028         46,559         94,566       141,125              -



Permanent Funds
 Cemetery Perpetual Care Fund           891,797          76,100          26,400       941,497          80,200        43,800       977,897



Proprietary Funds
 Water & Wastewater Utility Fund      11,023,158     24,561,340     24,391,037      11,193,461     24,855,546    24,087,850    11,961,157

 Drainage Utility Fund                 2,644,605      1,067,654        2,085,223     1,627,036      1,276,020     1,709,496     1,193,560

 Electric Utility Fund                11,044,377     39,160,645     40,660,435       9,544,587     47,986,608    46,413,394    11,117,801

 Municipal Airport Fund                   64,881       259,265          441,569       (117,423)      509,605       392,182             -

 Waste Collection Utility Fund           (16,804)     1,137,057        1,114,200       (11,624)     1,203,869     1,180,908        (6,694)




All Funds                             37,488,797    107,348,786    108,543,501      36,272,304    117,551,028   117,511,498    36,293,804




                                                                  89
                               CITY OF SAN MARCOS
                                           2006-07 ANNUAL BUDGET
                 CONSOLIDATED SUMMARY OF MAJOR REVENUES AND EXPENSES
                                                                  Hotel       CDBG        WIC       Other Special Water &
                                                 Debt Service   Occupancy    Program    Program       Revenue     Wastewater
                                    General Fund    Fund        Tax Fund       Fund      Fund          Funds     Utility Fund




Beginning Fund Balance
on 10/01/2006                        10,892,274    1,975,399       87,918         -           -         139,179   11,193,461

Major Revenues
 Taxes                               24,364,120    6,009,197     1,232,491        -           -             -            -
 Licenses and Permits                   830,836          -             -          -           -           3,000          -
 Fines and Penalties                  1,211,363          -             -          -           -          63,225          -
 Interest Income                        490,152       95,000           -          -           -             600      447,738
 Cultural and Recreational              672,914          -             -          -           -             -            -
 Other Agencies                         229,777          -             -          -           -             -            -
 Current Services                       167,740          -             -          -           -             -            -
 Grants                                     -            -             -      531,284   1,561,324           -            -
 Water Service Revenue                      -            -             -          -           -             -     11,414,720
 Wastewater Service Revenue                 -            -             -          -           -             -     10,836,451
 Drainage Service Revenue                   -            -             -          -           -             -            -
 Electric Service Revenue                   -            -             -          -           -             -            -
 Waste Collection Service Revenue           -            -             -          -           -             -            -
 Operating Transfers                  3,924,071          -          19,104        -           -          58,966          -
 Other Revenues                         141,418          -             -          -           -          32,600    2,156,636
 One-Time Revenues                          -            -             -          -           -             -            -

Total Revenues                       32,032,391    6,104,197     1,251,594    531,284   1,561,324       158,391   24,855,546


Available Resources                  42,924,664    8,079,596     1,339,513    531,284   1,561,324       297,570   36,049,007

Major Expenses
 Personnel Services                  23,963,813          -         89,390         -     1,018,528           -      2,483,152
 Contracted Services                  3,788,665          -        808,462     531,284     233,097       119,577    5,951,220
 Materials and Supplies               2,122,489          -         38,940         -       120,511        25,625      808,066
 Other Charges                        1,341,623          -        302,562         -       189,188           -      5,859,245
 Capital Outlay                         790,000          -            -           -           -          73,659      281,000
 System Improvements                        -            -            -           -           -             -      1,030,000
 Social Services                        405,000          -            -           -           -             -            -
 Debt Service                               -      6,009,197          -           -           -             -      7,675,166
 Operating Transfers                    388,770          -            -           -           -           6,048          -
 One-Time Expenses                    1,219,340          -         83,100         -           -          15,000          -

Total Expenses                       34,019,699    6,009,197     1,322,454    531,284   1,561,324       239,909   24,087,850


Ending Fund Balance
on 09/30/2007                         8,904,965    2,070,398       17,059         -          -           57,661   11,961,157




                                                           90
                               CITY OF SAN MARCOS
                                          2006-07 ANNUAL BUDGET
                 CONSOLIDATED SUMMARY OF MAJOR REVENUES AND EXPENSES
                                                                              Waste
                                     Drainage      Electric    Municipal   Collection     Permanent
                                    Utility Fund Utility Fund Airport Fund Utility Fund     Funds      Total from All Funds




Beginning Fund Balance
on 10/01/2006                        1,627,036     9,544,587     (117,423)       6,053      941,497               36,289,982

Major Revenues
 Taxes                                     -             -            -            -            -                 31,605,808
 Licenses and Permits                      -             -            -            -            -                    833,836
 Fines and Penalties                    12,600           -            -         22,680          -                  1,309,868
 Interest Income                        40,676       381,783          -            -         36,000                1,491,950
 Cultural and Recreational                 -             -            -            -            -                    672,914
 Other Agencies                            -             -            -            -            -                    229,777
 Current Services                          -             -        155,105          -            -                    322,845
 Grants                                    -             -            -            -            -                  2,092,608
 Water Service Revenue                     -             -            -            -            -                 11,414,720
 Wastewater Service Revenue                -             -            -            -            -                 10,836,451
 Drainage Service Revenue            1,222,744           -            -            -            -                  1,222,744
 Electric Service Revenue                  -      45,958,848          -            -            -                 45,958,848
 Waste Collection Service Revenue          -             -            -      1,181,189          -                  1,181,189
 Operating Transfers                       -             -            -            -            -                  4,002,141
 Other Revenues                            -       1,645,976          -            -         44,200                4,020,830
 One-Time Revenues                         -             -        354,500          -            -                    354,500

Total Revenues                       1,276,020    47,986,608      509,605    1,203,869       80,200              117,551,028


Available Resources                  2,903,056    57,531,195      392,182    1,209,923     1,021,697             153,841,010

Major Expenses
 Personnel Services                        -       2,970,936      104,634          -            -                 30,630,452
 Contracted Services                   357,368    35,387,282       36,925    1,163,158          -                 48,377,038
 Materials and Supplies                    -         423,944       14,900          -            -                  3,554,475
 Other Charges                          10,000     5,827,969       89,056       17,750          -                 13,637,394
 Capital Outlay                            -         597,556          -            -            -                  1,742,215
 System Improvements                   800,000           -            -            -            -                  1,830,000
 Social Services                           -             -            -            -            -                    405,000
 Debt Service                          542,128     1,205,708          -            -            -                 15,432,199
 Operating Transfers                       -             -        146,667          -         43,800                  585,285
 One-Time Expenses                         -             -            -            -            -                  1,317,440

Total Expenses                       1,709,496    46,413,394      392,182    1,180,908       43,800              117,511,498


Ending Fund Balance
on 09/30/2007                        1,193,560    11,117,801          -         10,983      977,897               36,311,481




                                                          91
                              CITY OF SAN MARCOS
                                       2006-07 ANNUAL BUDGET
                          CONSOLIDATED SUMMARY OF OPERATING TRANSFERS

                                                             Hotel                 CDBG       WIC
                                    General   Debt Service Occupancy              Program   Program
                                     Fund        Fund      Tax Fund Grants Fund     Fund     Fund     Other Funds




Operating Transfers Out:

  General Fund                           -           -        19,104    15,000         -         -     1,219,506

  Water & Wastewater Utility Fund        -           -           -         -           -         -           -

  Electric Utility Fund                  -           -           -         -           -         -           -

 Municipal Airport Fund                  -           -           -         -           -         -       146,667

 Permanent Funds                         -           -           -         -           -         -        43,800

Total                                    -           -        19,104    15,000         -         -     1,409,973




                                                         92
                              CITY OF SAN MARCOS
                                          2006-07 ANNUAL BUDGET
                          CONSOLIDATED SUMMARY OF OPERATING TRANSFERS

                                     Water &                                  Waste     Municipal
                                    Wastewater Drainage         Electric   Collection    Airport    Permanent
                                    Utility Fund Utility Fund Utility Fund Utility Fund   Fund        Funds      Total




Operating Transfers Out:

  General Fund                                          -                        -        354,500               1,608,110

  Water & Wastewater Utility Fund          -            -           -            -            -           -           -

  Electric Utility Fund                    -            -           -            -            -           -           -

 Municipal Airport Fund                    -            -           -            -            -           -      146,667

 Permanent Funds                           -            -           -            -            -           -       43,800

Total                                      -            -           -            -       354,500          -     1,798,577




                                                            93
                                     CITY OF SAN MARCOS
                                          2006-07 ANNUAL BUDGET
                                     CONSOLIDATED REVENUE COMPARISON
                                                  Actual            Approved         Estimated        Proposed
                                                Fiscal Year         Fiscal Year      Fiscal Year      Fiscal Year
                                                 2004-05             2005-06          2005-06          2006-07




Governmental Funds
 General Fund                                       31,484,168          30,534,945       32,321,470       32,032,391
 Debt Service Fund                                   4,949,301           5,300,629        5,369,729        6,104,197

Special Revenue Funds
 Hotel Occupancy Tax Fund                            1,051,592             946,246        1,237,476        1,251,594
 Municipal Court Technology Fund                        33,636              28,850           34,343           35,100
 Municipal Court Security Fee Fund                         -                   -                -             23,625
 Seized Assets Fund                                     86,256               5,100            5,100            5,100
 CDBG Program Fund                                     566,917             587,708          587,708          531,284
 WIC Program Fund                                    1,130,883           1,385,944        1,405,237        1,561,324
 Cemetery Operations Fund                              130,174              76,162          125,662           94,566

Permanent Funds
 Cemetery Perpetual Care Fund                              68,587           48,720           76,100           80,200

Proprietary Funds
 Water/Wastewater Utility Fund                      21,952,245          22,688,575       24,561,340       24,855,546
 Drainage Utility Fund                                 965,431           1,052,697        1,067,654        1,276,020
 Electric Utility Fund                              39,556,685          29,704,469       39,160,645       47,986,608
 Municipal Airport Fund                                368,663             259,265          259,265          509,605
 Waste Collection Utility Fund                       1,102,706           1,026,834        1,137,057        1,203,869



Total                                              103,447,243          93,646,146      107,348,786      117,551,028




                                                     94
                                     CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                                     CONSOLIDATED EXPENSE COMPARISON
                                                 Actual          Approved         Estimated         Proposed
                                               Fiscal Year       Fiscal Year      Fiscal Year      Fiscal Year
                                                2004-05           2005-06          2005-06          2006-07




Governmental Funds
 General Fund                                      31,502,655        29,816,854       31,377,987       34,019,699
 Debt Service Fund                                  4,623,976         5,274,729        4,926,068        6,009,197

Special Revenue Funds
 Hotel Occupancy Tax Fund                             922,700           946,541        1,278,109        1,322,454
 Municipal Court Technology Fund                          -             130,000          130,000           73,659
 Municipal Court Security Fee Fund                        -                 -                -             23,625
 Seized Assets Fund                                    51,600             1,500            1,500            1,500
 CDBG Program Fund                                    566,917           587,708          587,708          531,284
 WIC Program Fund                                   1,130,883         1,385,944        1,405,237        1,561,324
 Cemetery Operations Fund                             113,514           118,028          118,028          141,125

Permanent Funds
 Cemetery Perpetual Care Fund                                -           26,400           26,400           43,800

Proprietary Funds
 Water/Wastewater Utility Fund                     19,222,943        23,199,896       24,391,037       24,087,850
 Drainage Utility Fund                                729,586         1,929,878        2,085,223        1,709,496
 Electric Utility Fund                             37,238,893        36,900,195       40,660,435       46,413,394
 Municipal Airport Fund                               301,398           441,571          441,569          392,182
 Waste Collection Utility Fund                      1,066,752         1,111,646        1,114,200        1,180,908



Total                                              97,471,817       101,870,889      108,543,501      117,511,498




                                                    95
                                     CITY OF SAN MARCOS
                                        2006-07 ANNUAL BUDGET
                                 CONSOLIDATED FUND BALANCE COMPARISON
                                                Actual          Approved          Estimated         Proposed
                                              Fiscal Year       Fiscal Year       Fiscal Year       Fiscal Year
                                               2004-05           2005-06           2005-06           2006-07




Governmental Funds
 General Fund                                      9,948,791        10,666,883        10,892,274         8,904,965
 Debt Service Fund                                 1,531,738         1,557,638         1,975,399         2,070,398

Special Revenue Funds
 Hotel Occupancy Tax Fund                            132,651           132,356            87,918            17,059
 Municipal Court Technology Fund                     134,217            33,067            38,559                 0
 Municipal Court Security Fee Fund                       -                 -                 -                 -
 Seized Assets Fund                                   50,461            54,061            54,061            57,661
 CDBG Program Fund                                       -                 -                 -                 -
 WIC Program Fund                                        -                 -                 -                 -
 Cemetery Operations Fund                             38,925            (2,941)           46,559               -

Permanent Funds
 Cemetery Perpetual Care Fund                        891,797           914,117           941,497           977,897

Proprietary Funds
 Water/Wastewater Utility Fund                    11,023,158         9,402,493        11,193,461        11,961,157
 Drainage Utility Fund                             2,644,605         1,767,424         1,627,036         1,193,560
 Electric Utility Fund                            11,044,377         2,448,862         9,544,587        11,117,801
 Municipal Airport Fund                               64,881          (194,619)         (117,423)              -
 Waste Collection Utility Fund                       (16,804)         (118,712)            6,053            10,983



Total                                             37,488,797        26,660,629        36,289,982        36,311,481




                                                   96
                        CITY OF SAN MARCOS
                               2006-07 ANNUAL BUDGET
                        PROPERTY TAX VALUATION AND REVENUE


Total Market Value                                                   $ 2,039,634,021
   Less: Exemptions & Exempt Properties                                          -
Net Taxable Assessed Valuations                                      $ 2,039,634,021


Assessed Value X     $0.4702 Tax Rate                                $     9,590,359
     98.00% Collection Rate                                          $     9,398,552
      2.00% Delinquent Rate                                          $       191,807

Total Taxes To Be Collected:
   Current Collections                                               $     9,398,552
   Delinquent Collections            65.00%                                  124,675
   Penalties and Interest            35.00%                                   67,133
                                                                     $     9,590,359

Division of Tax Rate:
   Debt Service                     62.3406%       $ 0.2931          $     5,978,688
   O&M                              37.6594%         0.1771                3,611,672
                                   100.0000%       $ 0.4702          $     9,590,359



General Fund Detail:                           Debt Service Fund Detail:
   Current Ad Valorem          $   3,539,438      Current Ad Valorem $     5,859,114
   Delinquent                         46,952      Delinquent                  77,723
   Penalties                          25,282      Penalties                   41,851
                               $   3,611,672                         $     5,978,688

   One-cent equals:            $    203,963




                                          97
CITY OF SAN MARCOS
       98
                                       2006-07 ANNUAL BUDGET
                                           GENERAL FUND
                                        FINANCIAL FORECAST
                                            FY 2005       FY 2006      FY 2007       FY 2008          FY 2009

Operating Revenues
 Sales Taxes                                14,037,501    13,932,564   14,350,541    14,781,057      15,224,489
 Ad Valorem Taxes                            3,775,462     3,521,372    3,581,162     3,874,623       5,089,640
 Other Taxes                                 6,415,253     6,333,632    6,432,417     6,441,397       7,302,677
 Licenses and Permits                          854,818       825,051      830,836       839,662         847,140
 Fines and Penalties                         1,197,796     1,245,900    1,211,363     1,234,108       1,257,301
 Interest Income                               334,514       447,696      490,152       356,199         309,721
 Cultural and Recreational                     690,366       664,301      672,914       673,917         683,875
 Revenue from Other Agencies                   127,234       151,736      229,777       240,015         250,766
 Charges from Current Services                 124,550       134,690      167,740       152,762         154,273
 Other Revenue                                 102,643       102,112      141,418       139,268         139,268
 Reimbursements from Other Funds             3,708,291     3,824,143    3,924,071     3,963,312       4,002,945

Total Operating Revenues                    31,368,427    31,183,197   32,032,391    32,696,321      35,262,096

Operating Expenditures
 Personnel Services                         20,324,851    22,051,233   23,963,813    25,162,003      26,420,104
 Contracted Services                         3,172,538     3,779,447    3,788,665     3,864,438       3,941,727
 Materials and Supplies                      2,086,645     1,781,332    2,122,489     2,358,359       2,405,526
 Other Charges                                 877,017     1,281,508    1,341,623     1,368,455       1,395,824
 Social Services                               381,186       400,000      405,000       405,000         405,000
 Operating Transfers                           215,775       341,354      388,770       200,000         200,000

Total Operating Expenditures                27,058,013    29,634,874   32,010,359    33,358,255      34,768,181

Operating Income/ (Loss)                     4,310,415     1,548,323      22,032       (661,935)       493,915

One-Time Revenues
 Prior Period Adjustment                        6,603            -            -             -               -
 Other Revenue                                109,137      1,138,273          -             -               -

One-Time Expenses
 One-Time Operating Transfers                1,207,245     1,632,113    1,219,340          -               -
 Economic Development Incentives             2,175,200           -            -            -               -
 Capital Outlay                              1,062,197       111,000      790,000      500,000         500,000
 Prior Period Adjustment                           -             -            -            -               -

Net Change in Fund Balance                     (18,486)      943,483   (1,987,308)   (1,161,935)         (6,085)
Beginning Unreserved Fund Balance            9,967,278     9,948,791   10,892,274     8,904,965       7,743,031
Ending Unreserved Fund Balance               9,948,791    10,892,274    8,904,965     7,743,031       7,736,946

Percentage of Operating Expenditures             36.8%        36.8%         27.8%         23.2%           22.3%

Days of Operation                                 134           134          102                85              81




                                                 99
CITY OF SAN MARCOS
       100
                                         2006-07 ANNUAL BUDGET
                                                GENERAL FUND
                                                            Actual          Approved        Estimated      Proposed
                                                          2004/2005         2005/2006       2005/2006     2006/2007


Operating Revenues
 Taxes                                                     24,228,215        23,336,379      23,787,568    24,364,120
 Licenses and Permits                                         854,818           803,951         825,051       830,836
 Fines and Penalties                                        1,197,796         1,269,246       1,245,900     1,211,363
 Interest Income                                              334,514           291,355         447,696       490,152
 Cultural and Recreational                                    690,366           699,095         664,301       672,914
 Reimbursement from Other Agencies                            127,234           151,736         151,736       229,777
 Current Services                                             124,550           131,240         134,690       167,740
 Other Revenue                                                102,643            27,800         102,112       141,418
 Reimbursement from Other Funds                             3,708,291         3,824,143       3,824,143     3,924,071

Total Operating Revenue                                    31,368,427        30,534,945      31,183,197    32,032,391

Operating Expenditures
 Personnel Services                                        20,324,851        22,093,383      22,051,233    23,963,813
 Contracted Services                                        3,172,538         3,779,447       3,779,447     3,788,665
 Materials and Supplies                                     2,086,645         1,781,332       1,781,332     2,122,489
 Other Charges                                                877,017         1,281,508       1,281,508     1,341,623
 Social Services                                              381,186           400,000         400,000       405,000
 Operating Transfers                                          215,775           338,844         341,354       388,770

Total Operating Expenditures                               27,058,013        29,674,514      29,634,874    32,010,359

Operating Income / (Loss)                                      4,310,415        860,432       1,548,323        22,032

One-Time Revenues
 Prior Year Adjustments                                           6,603                 -           -                 -
 Other Revenue                                                  109,137                 -     1,138,273               -

One-Time Expenses
 One-Time Operating Transfers                                  1,207,245         31,340       1,632,113     1,219,340
 Economic Development Incentives                               2,175,200            -               -             -
 Capital Outlay                                                1,062,197        111,000         111,000       790,000
 Prior Period Adjustments                                            -              -               -             -

Net Change in Fund Balance                                       (18,486)       718,092         943,483    (1,987,308)
Beginning Unreserved Fund Balance                              9,967,278      9,948,791       9,948,791    10,892,274

Ending Unreserved Fund Balance                                 9,948,791     10,666,883      10,892,274     8,904,965


Fund Balance as a Percentage of Operating Expenditures           36.77%          35.95%          36.75%        27.82%




                                                         101
                                   CITY OF SAN MARCOS
                                               2006-07 ANNUAL BUDGET
                                                    GENERAL FUND


                                   Contracted                Operating Transfers
                                    Services                       3.3%
                       Materials &   11.1%
                        Supplies
                         6.2%

                   Other Charges
                       5.4%




              Social Services                                                                      Personnel Services
                  1.2%                                                                                  70.4%


                               Capital Outlay
                                  2.3%

                   Personnel      Contracted    Materials        Other       Operating   Capital        Social
Division           Services        Services     & Supplies      Charges      Transfers   Outlay        Services         Total
General
Government          1,488,408       298,620       148,170          214,500           0     29,000                 0    2,178,698
Human
Resources             610,016        90,032        20,700           16,950           0             0              0      737,698
Finance             1,999,698       683,221       113,513          115,325           0             0              0    2,911,757
PADS                  890,544        69,298        34,830           27,710           0             0              0    1,022,382
Environment &
Engineering           969,594        54,584        35,262           17,111           0    125,000                 0    1,201,551
Fire Services       3,361,311        89,728       183,588           34,000           0          0                 0    3,668,627
Police Services     7,833,933       289,155       474,690           61,100           0          0                 0    8,658,878
Public Works        1,598,599       123,795       512,473           21,800           0     25,000                 0    2,281,667
Community
Services            3,776,091        984,637      592,123          45,069            0    111,000              0       5,508,920
General Services    1,435,617      1,105,594        7,140       1,288,058    1,108,110    500,000        405,000       5,849,519

           Total   23,963,811      3,788,664     2,122,489      1,841,623    1,108,110    790,000        405,000      34,019,697




                                                             102
                                   CITY OF SAN MARCOS
                                            2006-07 ANNUAL BUDGET
                                                GENERAL FUND
                                                       Actual      Approved       Estimated       Proposed
                                                     2004/2005     2005/2006      2005/2006      2006/2007


Taxes

Current Ad Valorem                                     3,666,797     3,378,762      3,450,945      3,509,539
Delinquent Ad Valorem                                     61,933        44,820         45,778         46,555
Penalties & Interest                                      46,732        24,134         24,650         25,068
Other Utility Franchise                                  579,958       617,085        617,085        629,427
Electric Franchise                                     3,632,469     3,039,196      3,334,606      3,370,785
Water and Wastewater Franchise                         1,793,613     1,891,548      1,968,163      2,002,605
Telephone Franchise                                      104,026       100,000        100,000        100,000
Solid Waste Hauler Street Use/ Permit Fee                132,561       137,700        137,700        140,000
Sales Tax                                             14,037,501    13,932,564     13,932,564     14,350,541
Sales Tax - Prime Outlet Expansion                           -         720,000        720,000        720,000
Sales Tax Rebate - Prime Outlet Expansion                    -        (720,000)      (720,000)      (710,000)
Mixed Drink                                              172,626       170,569        176,078        179,600

                           Total                      24,228,215    23,336,379     23,787,568     24,364,120

Licenses & Permits

Professional & Occupational                               50,076        60,000         60,000         60,000
Alcohol Permit                                            18,310        17,926         17,926         17,800
Pet Licenses                                               1,762         2,000          2,000          2,000
Building Permits                                         303,123       383,800        315,000        315,000
Mechanical Permits                                        37,597        25,500         25,500         26,010
Plumbing Permits                                          26,856        25,500         25,500         26,010
Sign Permits                                               6,401         4,386          4,386          4,474
Mobile Home Inspection                                     1,620         1,428          1,428          1,457
Zoning Permits                                            31,677        25,500         25,500         26,010
Electrical Permits                                        33,011        31,402         31,402         32,310
Certificate of Occupancy                                   3,920         4,311          4,311          4,257
Specific Use                                               7,127        10,750         10,750         10,750
Site Development Permit                                   65,598        36,516         36,516         37,246
Plat Review--Subdivision                                  27,582        29,070         29,070         29,651
Variances & Appeals                                        4,208         4,794          4,794          4,890
Construction Plan Review Fees                             68,261           -           70,000         70,000
Temporary Food Service Facilities                            250           -              -              -
Food Permits                                              99,934        81,600        101,500        102,515
Food Handler Certificates                                 35,845        31,212         31,212         31,836
Septic Tank Permits                                        3,325         4,700          4,700          4,700
Other Permits                                              4,827         3,250          3,250          3,250
Architectural Barrier Reviews                                625         2,050          2,050          2,050
Moving Permits                                                25           100            100            100
Security Alarm Permits                                    10,480        11,220         11,220         11,444
Fire Prevention and Protection Permits                    12,378         6,936          6,936          7,075

                           Total                         854,818       803,951        825,051        830,836




                                                   103
                                  CITY OF SAN MARCOS
                                       2006-07 ANNUAL BUDGET
                                           GENERAL FUND
                                                  Actual        Approved      Estimated      Proposed
                                                2004/2005       2005/2006     2005/2006     2006/2007


Fines & Penalties

Parking Fines                                         89,658        124,032        90,000        91,800
Traffic Fines                                        408,568        459,826       430,000       438,600
Other                                                 46,902         37,000        37,000        37,000
Complaints                                           469,768        503,400       477,400       486,948
Failure to Appear                                        -              -             -             -
Warrant Fee                                           37,900         36,807        48,000        48,480
False Alarm Fee                                       27,270         26,622        27,300        27,846
Defensive Driving Administrative Fee                  12,199         14,790        12,200        12,444
Arrest Fee                                            74,602         43,000        99,000        43,000
Special Expense Fee                                    7,479            -             -             -
Dismissal Fee                                         11,639          9,315        11,700        11,817
Traffic Fee                                           11,538         13,954        12,800        12,928
Child Safety Fee                                         273            500           500           500

                          Total                     1,197,796     1,269,246     1,245,900     1,211,363

Interest Income

Interest Income                                      334,514        291,355       447,696       490,152

                          Total                      334,514        291,355       447,696       490,152

Cultural and Recreational

Softball/Athletic Program                             37,535         34,000        37,500        37,500
Summer Playground Program                             34,354         34,800        34,500        34,500
Lost Books                                            10,499          9,700        10,500        10,500
Library Fines                                         43,957         36,200        44,000        44,000
Special Events Fee                                     2,475          1,800         1,800         1,800
Aquatic                                                  913          1,400         1,400         1,400
Building User Fee                                     76,159         63,750        63,750        65,025
San Marcos Youth Night                                 1,605          1,605         1,605         1,605
Swimming Lessons                                      46,076         10,200        10,200        10,404
Hays County Library Donation                          55,360         55,360        55,360        55,360
Annual Entry Fees-Resident                           118,499        128,616       128,616       131,188
Annual Entry Fees-Non Resident                        71,354         69,360        71,500        72,930
Daily Entry Fees-Resident                             22,090         22,440        22,440        22,889
Daily Entry Fees-Non Resident                          6,773          6,120         6,800         6,936




                                              104
                                  CITY OF SAN MARCOS
                                        2006-07 ANNUAL BUDGET
                                               GENERAL FUND
                                                        Actual        Approved      Estimated      Proposed
                                                      2004/2005       2005/2006     2005/2006     2006/2007


Aquatic Entry Fees-Resident                                  3,118          3,410         3,410         3,143
Racquetball Court                                              945            800           800           800
Athletic Team Use Fee                                       31,993         42,840        42,840        43,697
Baby Sitting Fee                                             2,164          2,400         2,400         2,400
Equipment Rental Fee                                           822          1,400         1,400         1,400
Aerobics Contracts Fee                                      22,957         34,971        23,500        23,970
Water Aerobics Contracts Fee                                11,976         17,486        12,500        12,750
Instructional Contracts Fee                                 18,569         52,457        19,500        19,890
Lap Swim Fee                                                     2            -             -             -
Senior Activities                                               (5)           -             -             -
Travel Programs Fee                                         14,843         19,000        19,000        19,000
Meeting Room Rental - Activity Center                       49,857         42,330        42,330        43,177
Equipment Rental-PARD                                        4,225          5,400         5,400         5,400
AV Equipment Rental                                          1,253          1,250         1,250         1,250

                          Total                            690,366        699,095       664,301       672,914

Reimbursement from Other Agencies

Land Sales                                                   4,110            -             -             -
SWTSU - Watershed Protection Program Reimbursement          25,083         35,157        35,157        34,230
SMCISD - School Resource Officer Reimbursement              98,041        116,579       116,579       108,642
Hays County Animal Services Contract Reimbursement             -              -             -          86,905

                          Total                            127,234        151,736       151,736       229,777

Charges for Current Services

Passport Fee                                                50,490         44,370        50,500        66,960
Animal Pound Charges                                        22,007         23,460        23,000        23,460
Downtown Parking Lease Spaces                                  -           11,340        11,340        11,340
Vital Statistics - Births                                   24,610         25,500        25,000        33,530
Vital Statistics - Deaths                                    9,033         11,220         9,500        17,100
Police Fees - Various                                       18,400         15,000        15,000        15,000
Photographs                                                      5            350           350           350
Criminal Record Name Check                                       5            -             -             -

                          Total                            124,550        131,240       134,690       167,740

Other Revenues

Auction Sales                                               48,783         10,000        10,000        10,000
Rebates                                                     10,935          5,000         5,000         7,150
Sale of Maps                                                   830          1,700         1,700         1,700
Sale of Materials & Services                                   307            300           300           300
Sale of P&Z Ordinances                                         691            300           300           300
Prime Outlet Reimbursement                                     -              -             -             -
Other                                                       40,183         10,000        10,000        10,000
Loan Repayment - JQH                                           -              -          74,312       111,468
NSF Service Charge                                             914            500           500           500

                          Total                            102,643         27,800       102,112       141,418


                                                     105
                                 CITY OF SAN MARCOS
                                    2006-07 ANNUAL BUDGET
                                        GENERAL FUND
                                               Actual        Approved        Estimated      Proposed
                                             2004/2005       2005/2006       2005/2006     2006/2007


Reimbursement from Other Funds

Water/Wastewater Utility Fund                    2,293,475     2,382,511       2,382,511     2,403,390
Electric Utility Fund                            1,187,974     1,232,915       1,232,915     1,270,589
Municipal Airport Fund                              50,683        64,633          64,633        81,806
WIC Program Fund                                   170,918       138,456         138,456       162,238
Cemetery Operations Fund                             5,241         5,628           5,628         6,048

                         Total                   3,708,291     3,824,143       3,824,143     3,924,071


Total Operating Revenues                      31,368,427      30,534,945      31,183,197    32,032,391


One-Time Revenues

Prior Year Adjustments                              6,603                -           -                 -
Other Revenue                                     109,137                -     1,138,273               -

                         Total                    115,741                -     1,138,273               -


Total Revenues                                31,484,168      30,534,945      32,321,470    32,032,391



Recap of Revenues:

Taxes                                         24,228,215      23,336,379      23,787,568    24,364,120
Licenses & Permits                               854,818         803,951         825,051       830,836
Fines & Penalties                              1,197,796       1,269,246       1,245,900     1,211,363
Interest Income                                  334,514         291,355         447,696       490,152
Cultural and Recreational                        690,366         699,095         664,301       672,914
Reimbursement from Other Agencies                127,234         151,736         151,736       229,777
Charges for Current Services                     124,550         131,240         134,690       167,740
Other Revenue                                    102,643          27,800         102,112       141,418
Reimbursements from Other Funds                3,708,291       3,824,143       3,824,143     3,924,071
One-Time Revenues                                115,741             -         1,138,273           -

Total Revenues                                31,484,168      30,534,945      32,321,470    32,032,391




                                           106
                                  CITY OF SAN MARCOS
                                     2006-07 ANNUAL BUDGET
                                         GENERAL FUND

                                                Actual        Approved      Estimated      Proposed
                                              2004/2005       2005/2006     2005/2006     2006/2007


General Government

Administration
 Personnel Services                                567,351        653,044       651,312       651,468
 Contracted Services                                10,745         13,775        13,775        14,642
 Materials and Supplies                             12,652         16,431        16,431        16,820
 Other Charges                                      24,385         21,500        21,500        21,500
 Capital Outlay                                        -              -             -             -

                          Total                    615,132        704,750       703,018       704,430


City Clerk
 Personnel Services                                305,593        330,537       322,493       328,572
 Contracted Services                                89,485        192,400       192,400       213,749
 Materials and Supplies                            101,095        127,400       127,400       121,000
 Other Charges                                      99,108        174,000       174,000       185,000
 Capital Outlay                                        -              -             -          29,000

                          Total                    595,281        824,337       816,293       877,321


Legal
 Personnel Services                                413,726        508,000       498,308       508,368
 Contracted Services                                36,659         69,715        69,715        70,229
 Materials and Supplies                              8,648         10,166        10,166        10,350
 Other Charges                                       6,474          7,000         7,000         8,000
 Capital Outlay                                        -              -             -             -

                          Total                    465,507        594,881       585,189       596,947



Total General Government                          1,675,921     2,123,968     2,104,500     2,178,698




                                            107
                                   CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                                          GENERAL FUND
                                                 Actual        Approved      Estimated      Proposed
                                               2004/2005       2005/2006     2005/2006     2006/2007


Human Resources Department

Human Resources
 Personnel Services                                 568,097        587,461       602,693       610,016
 Contracted Services                                 66,024        110,029       110,029        90,032
 Materials and Supplies                              17,291         20,450        20,450        20,700
 Other Charges                                       11,188         15,700        15,700        16,950
 Capital Outlay                                      82,561            -             -             -

                           Total                    745,160        733,640       748,872       737,698


Total Human Resources                               745,160        733,640       748,872       737,698



Finance Department

Finance
  Personnel Services                                831,921        870,018       894,243       894,103
  Contracted Services                               147,441        160,270       160,270       168,985
  Materials and Supplies                             41,738         44,850        44,850        46,912
  Other Charges                                      26,685         32,500        32,500        32,750
  Capital Outlay                                        -              -             -             -

                           Total                   1,047,785     1,107,638     1,131,863     1,142,750


Municipal Court
 Personnel Services                                 328,710        475,657       479,043       477,984
 Contracted Services                                 11,018         15,700        15,700        23,236
 Materials and Supplies                              12,168         18,835        18,835        21,404
 Other Charges                                        3,646         12,500        12,500        12,500
 Capital Outlay                                         -              -             -             -

                           Total                    355,542        522,692       526,078       535,123


Information Technology
  Personnel Services                                340,371        614,324       623,547       627,611
  Contracted Services                               508,064        550,900       550,900       491,000
  Materials and Supplies                             42,011         27,700        27,700        45,197
  Other Charges                                      24,664         43,000        43,000        70,075
  Capital Outlay                                        -              -             -             -

                           Total                    915,110      1,235,924     1,245,147     1,233,884


Total Finance Department                           2,318,437     2,866,253     2,903,089     2,911,758




                                             108
                                   CITY OF SAN MARCOS
                                       2006-07 ANNUAL BUDGET
                                             GENERAL FUND
                                                    Actual      Approved      Estimated      Proposed
                                                  2004/2005     2005/2006     2005/2006     2006/2007


Planning & Development Department

Planning & Development
  Personnel Services                                  481,601       555,722       569,602       570,946
  Contracted Services                                   7,765        43,300        43,300        49,998
  Materials and Supplies                               15,631        18,773        18,773        19,955
  Other Charges                                        15,347        32,800        32,800        22,010
  Capital Outlay                                        5,849           -             -             -

                           Total                      526,193       650,595       664,475       662,909


Building Inspections
 Personnel Services                                   270,480       312,259       319,269       319,598
 Contracted Services                                   16,809        22,150        22,150        19,300
 Materials and Supplies                                 7,688        12,900        12,900        14,875
 Other Charges                                          2,019         4,950         4,950         5,700
 Capital Outlay                                           -             -             -             -

                           Total                      296,995       352,259       359,269       359,473


Total Planning & Development Department               823,188     1,002,854     1,023,744     1,022,382



Environment & Engineering Department

Environment & Engineering
 Personnel Services                                   784,200       831,291       828,631       969,594
 Contracted Services                                   46,946        58,653        58,653        54,584
 Materials and Supplies                                43,967        32,923        32,923        35,262
 Other Charges                                         13,395        16,775        16,775        17,111
 Capital Outlay                                        24,265           -             -         125,000

                           Total                      912,773       939,642       936,982     1,201,550


Total Environment & Engineering Department            912,773       939,642       936,982     1,201,550




                                                109
                                   CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                                          GENERAL FUND


                                                 Actual        Approved      Estimated      Proposed
                                               2004/2005       2005/2006     2005/2006     2006/2007


Fire Services Department

Fire Operations
  Personnel Services                               3,175,296     3,212,864     3,305,475     3,361,311
  Contracted Services                                 71,791        89,393        89,393        89,728
  Materials and Supplies                             171,435       158,316       158,316       183,588
  Other Charges                                       26,754        33,500        33,500        34,000
  Capital Outlay                                      81,500           -             -             -

                           Total                   3,526,776     3,494,073     3,586,684     3,668,627


Total Fire Services Department                     3,526,776     3,494,073     3,586,684     3,668,627



Police Services Department

Police Administration
 Personnel Services                                1,874,818     2,113,344     2,169,483     2,178,117
 Contracted Services                                 144,099       210,554       210,554       212,861
 Materials and Supplies                              194,927        84,583        84,583        98,348
 Other Charges                                        25,513        25,600        25,600        25,800
 Capital Outlay                                      228,828           -             -             -

                           Total                   2,468,185     2,434,081     2,490,220     2,515,126


Police Operations
 Personnel Services                                5,465,663     5,430,602     5,521,341     5,655,816
 Contracted Services                                  84,362        98,863        98,863        76,294
 Materials and Supplies                              316,474       292,620       292,620       376,342
 Other Charges                                        24,931        35,300        35,300        35,300
 Capital Outlay                                          -             -             -             -

                           Total                   5,891,430     5,857,385     5,948,124     6,143,752


Total Police Services Department                   8,359,615     8,291,466     8,438,344     8,658,879




                                             110
                                   CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                                          GENERAL FUND
                                                 Actual        Approved      Estimated      Proposed
                                               2004/2005       2005/2006     2005/2006     2006/2007


Public Works Department

Public Works Administration
 Personnel Services                                 154,250        152,674       161,811       178,843
 Contracted Services                                 13,075         39,067        39,067        30,927
 Materials and Supplies                              11,900         36,500        36,500         6,800
 Other Charges                                        6,537          5,200         5,200         5,200
 Capital Outlay                                     124,062            -             -          25,000

                           Total                    309,824        233,441       242,578       246,770


Traffic Control
 Personnel Services                                 218,628        223,716       228,467       227,810
 Contracted Services                                  7,065         14,900        14,900        23,900
 Materials and Supplies                              34,769         39,405        39,405        42,525
 Other Charges                                        1,267          3,400         3,400         3,400
 Capital Outlay                                         -              -             -             -

                           Total                    261,728        281,421       286,172       297,636


Streets
  Personnel Services                                806,366        801,854       818,003       811,135
  Contracted Services                                49,958         58,668        58,668        58,668
  Materials and Supplies                            430,481        258,076       258,076        432,516
  Other Charges                                       3,064          5,800         5,800         5,800
  Capital Outlay                                    148,453            -             -             -

                           Total                   1,438,321     1,124,398     1,140,547     1,308,119


Equipment Services
 Personnel Services                                 352,890        371,373       380,344       380,811
 Contracted Services                                 14,473         10,300        10,300        10,300
 Materials and Supplies                              31,943         27,850        27,850        30,632
 Other Charges                                        7,183          7,500         7,500         7,400
 Capital Outlay                                      34,458            -             -             -

                           Total                    440,948        417,023       425,994       429,142


Total Public Works Department                      2,450,821     2,056,284     2,095,291     2,281,667




                                             111
                                   CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                                          GENERAL FUND
                                                 Actual      Approved      Estimated      Proposed
                                               2004/2005     2005/2006     2005/2006     2006/2007


Community Services

Code Enforcement
 Personnel Services                                 42,203       208,314       275,131       275,235
 Contracted Services                                 4,498        44,935        44,935        43,672
 Materials and Supplies                             56,567        51,000        51,000        50,000
 Other Charges                                         767         8,800         8,800         8,700
 Capital Outlay                                     58,799           -             -             -

                           Total                   162,833       313,049       379,866       377,607


Environmental Health
 Personnel Services                                288,154       297,238       305,357       301,835
 Contracted Services                                27,613        26,785        26,785        23,932
 Materials and Supplies                             11,839        22,181        22,181        23,988
 Other Charges                                       2,991         2,950         2,950         3,350
 Capital Outlay                                     22,771           -             -             -

                           Total                   353,369       349,154       357,273       353,105


Animal Services
 Personnel Services                                253,379       265,297       270,466       332,383
 Contracted Services                                26,312        29,450        29,450        35,409
 Materials and Supplies                             34,474        35,829        35,829        55,800
 Other Charges                                       1,605         2,450         2,450         4,250
 Capital Outlay                                        -             -             -             -

                           Total                   315,769       333,026       338,195       427,842


Library
  Personnel Services                               828,326       853,733       871,363       874,527
  Contracted Services                                5,466        36,087        36,087        33,684
  Materials and Supplies                            39,042        26,959        26,959        28,498
  Other Charges                                     12,651        13,720        13,720        13,994
  Capital Outlay                                   111,063       111,000       111,000       111,000

                           Total                   996,548     1,041,499     1,059,129     1,061,704




                                             112
                                  CITY OF SAN MARCOS
                                     2006-07 ANNUAL BUDGET
                                         GENERAL FUND
                                                Actual        Approved      Estimated      Proposed
                                              2004/2005       2005/2006     2005/2006     2006/2007


Parks & Recreation
 Personnel Services                               1,111,810     1,151,632     1,155,168     1,260,598
 Contracted Services                                143,219       159,650       159,650       153,490
 Materials and Supplies                             212,610       177,600       177,600       183,809
 Other Charges                                       16,029         9,800         9,800         9,800
 Capital Outlay                                     139,587           -             -             -

                          Total                   1,623,256     1,498,682     1,502,218     1,607,697


Activity Center
 Personnel Services                                365,022        382,399       386,794       386,397
 Contracted Services                                 8,794         26,900        26,900        26,900
 Materials and Supplies                             87,556         78,700        78,700        80,920
 Other Charges                                       1,167          3,500         3,500         3,500
 Capital Outlay                                        -              -             -             -

                          Total                    462,539        491,499       495,894       497,717


Facilities & Grounds
 Personnel Services                                191,157        207,874       212,069       251,572
 Contracted Services                               534,907        574,250       574,250       595,250
 Materials and Supplies                            145,999        147,200       147,200       161,773
 Other Charges                                         -              -             -             -
 Capital Outlay                                        -              -             -             -

                          Total                    872,063        929,324       933,519     1,008,595


Park Rangers
 Personnel Services                                 43,630         43,810        43,810        93,544
 Contracted Services                                   -              300           300           300
 Materials and Supplies                              8,497          7,085         7,085         7,335
 Other Charges                                         550          1,475         1,475         1,475
 Capital Outlay                                        -              -             -             -

                          Total                     52,677         52,670        52,670       102,654


PARD Contract Programs
 Contracted Services                                51,640         72,000        72,000        72,000

                          Total                     51,640         72,000        72,000        72,000


Total Community Services                          4,890,695     5,080,903     5,190,764     5,508,921




                                            113
                                     CITY OF SAN MARCOS
                                        2006-07 ANNUAL BUDGET
                                            GENERAL FUND
                                                   Actual         Approved      Estimated      Proposed
                                                 2004/2005        2005/2006     2005/2006     2006/2007


General Services

Social Services
  Social Services                                     381,186         400,000       400,000       405,000

                             Total                    381,186         400,000       400,000       405,000

Special Services
 Personnel Services                                    261,210        638,347       157,010     1,435,617
 Contracted Services                                 1,044,313      1,050,453     1,050,453     1,105,594
 Materials and Supplies                                 (4,757)         7,000         7,000         7,140
 Other Charges                                       2,694,296        761,788       761,788     1,288,058
 Operating Transfers                                 1,423,020        370,184     1,973,467     1,108,110
 Capital Outlay                                            -              -             -         500,000
  Prior Period Adjustments                                 -              -             -             -

                             Total                   5,418,082      2,827,771     3,949,718     5,444,519


Total General Services                               5,799,268      3,227,771     4,349,718     5,849,519



Total General Fund Expenditures                   31,502,655       29,816,854    31,377,987    34,019,699



Summary of Expenditures by Services

 General Government                                  1,675,921      2,123,968     2,104,500     2,178,698
 Human Resources                                       745,160        733,640       748,872       737,698
 Finance                                             2,318,437      2,866,253     2,903,089     2,911,758
 Planning & Development                                823,188      1,002,854     1,023,744     1,022,382
 Environment & Engineering                             912,773        939,642       936,982     1,201,550
 Fire Services                                       3,526,776      3,494,073     3,586,684     3,668,627
 Police Services                                     8,359,615      8,291,466     8,438,344     8,658,879
 Public Works                                        2,450,821      2,056,284     2,095,291     2,281,667
 Community Services                                  4,890,695      5,080,903     5,190,764     5,508,921
 General Services                                    5,799,268      3,227,771     4,349,718     5,849,519

Total General Fund Expenditures                   31,502,655       29,816,854    31,377,987    34,019,699




                                               114
Administration

Department Organization

                                                                  City Manager



                                      Director of              Secretary to the City         Development Projects
                                    Admin. Services                 Manager                        Manager


      Assistant to the City         Communications                Administrative
           Manager                     Manager                      Assistant




Mission Statement
The Administration office is responsible for the administration of the City of San Marcos organization including
implementing the budget, policies and programs of the City Council. The Administrative staff provides assistance to the
Mayor and City Council and other departments, liaison to citizens, businesses and other agencies, economic development
coordination, and public information.




Expenditures by Category

                                                          Original
                                      Actual              Approved                 Revised             Proposed
                                     2004-05              2005-06                  2005-06             2006-07
 Personnel Services                       567,351               653,044                651,312              651,468
 Contracted Services                       10,745                13,775                 13,775               14,642
 Materials and Supplies                    12,652                16,431                 16,431               16,820
 Other Charges                             24,385                21,500                 21,500               21,500
 Capital Outlay                                 0                     0                      0                    0
 Total                                    615,133               704,750                703,018              704,430




                                                      115
Goals and Objectives

   •   To provide leadership and oversight to ensure that the City Council’s priorities, policies, and programs are
       successfully implemented and effectively managed. We are committed to focusing on the Council priorities
       as established in the Budget Policy Statement.
   •   To continue to expand communications between city government and its citizens.
   •   To respond with excellent customer service in a timely fashion to City Council, citizen’s inquiries and
       requests.

What We Accomplished in 2005-06

   •   Formulation and implementation of City budget and financial policies to encourage sound fiscal
       management.
   •   Coordination of proposed Convention Center Project and Rio Vista Dam Project.
   •   Continued communication with the public using Citizen Survey, Annual Report, quarterly utility bill mailer,
       City Hall calendar, City Web Page, City email, neighborhood meetings and broadcasting City Council and
       Planning and Zoning meetings on cable television.
   •   Projects: Traffic Synchronization projects, Wonder World Drive Overpass, Nuisance Abatement
       Department, Rio Vista Pool House renovations, Citizen Survey, Pass Thru Tolling application,
       Implementation of Wastewater Treatment Plant Odor Control, Centerpoint Energy Lawsuit, Coordinated
       Council Visioning and Budget Policy Statement Workshop; responded to Council concerns and inquiries;
       Director Retreat.
   •   Foster Economic Development.
   •   Development incentives: Prime Retail, Lincoln Properties, Figol, Vista Partners and Texas High School
       Coaches Association, Fushack’s BBQ, CFAN.

What We Plan to Accomplish in 2006-07

   •   Oversight of City organization including operations, maintenance and planning for future needs.
   •   Continue to implement Council policy and respond to Council direction.
   •   Foster strong customer service and efficiency in City organization.
   •   Strengthen Public:
           o Communications.
           o Oversight of Capital Improvement Programs and special projects.
           o Foster strong leadership throughout the organization.




                                                    116
Performance Measures
                                                     Unit of     Actual    Estimated   Projected
                                                     Measure    2004-05     2005-06    2006-07
 Citizens’ satisfaction with City Government     Community
                                                                 69.3%      72.6%        75%
 (Generally)                                       Survey

                                                 Standard &
                                                                 A+, A,     A+, A       A+, A,
 Maintenance of High Bond Rating                   Poor &
                                                                A-1, A-2   A-1, A-2    A-1, A-2
                                                  Moody’s

 Communications:
 • Presentations-As requested by Council             #/ Month     15          15         20
 • Press Releases                                    #/ Month     100         75         156

 City Awards
                                                        #          5          6           6
 • Nominations
                                                        #          2          2           2
 • Awards Received


 Citizen Concerns Addressed                          #/Month     1,500      2,000       2,000


 Special Projects                                     #/ year     10          12          20




                                               117
            City of San Marcos                             Original
               Fiscal Year 2006/2007           Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget             2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 100 - Administration

51100   Salaries                                427,239      494,670       492,377      492,377       -0.5%
51110   W/C Insurance                               840          895           937          853       -4.7%
51120   Overtime                                    -            600           600          600        0.0%
51190   Medicare                                  6,141        7,374         7,345        7,345       -0.4%
51200   FICA                                     23,273       27,573        28,415       28,415        3.1%
51210   TMRS                                     61,558       71,000        70,706       70,706       -0.4%
51220   Insurance                                35,812       37,660        37,660       37,660        0.0%
51300   Stability Pay                             2,888        3,672         3,672        3,912        6.5%
51310   Unemployment Comp. and Term. Leave          -            -             -            -          0.0%
51350   Car Allowance                             9,600        9,600         9,600        9,600        0.0%

        Total Personnel Services                567,351      653,044       651,312      651,468       -0.2%


52100   Printing and Publications                 7,513        6,500         6,500        6,500        0.0%
52110   Telephone                                 2,262        2,000         2,000        2,600       30.0%
52160   Professional Services                       969        3,000         3,000        3,000        0.0%
52391   Information Technology Services             -          2,275         2,275        2,542       11.7%

        Total Contracted Services                10,745       13,775        13,775       14,642        6.3%

53150   Supplies - Other                          6,589       10,000        10,000       10,389        3.9%
53160   Supplies - Office                         4,662        4,000         4,000        4,000        0.0%
53180   Postage                                   1,400        2,431         2,431        2,431        0.0%

        Total Materials and Supplies             12,652       16,431        16,431       16,820        2.4%

54140   Dues and Subscriptions                    5,825        5,500         5,500        5,500        0.0%
54340   Professional Development                 18,560       16,000        16,000       16,000        0.0%

        Total Other Charges                      24,385       21,500        21,500       21,500        0.0%

61100   Miscellaneous Equipment                      -           -             -            -          0.0%

        Total Capital Outlay                         -           -             -            -          0.0%


Total Administration                            615,132      704,750       703,018      704,430        0.0%




                                               118
City Clerk
Department Organization


                                         City Clerk


                                                              Assistant to the City Clerk


                                                         Records Management Coordinator


                                                                  Records Assistant


                                                      Assistant City Clerk for Vital Statistics


                                                                  Division Secretary


Mission Statement
The City Clerk’s office is primarily responsible for giving notice and recording City Council meetings, is designated
responsible for certain official records and documents of the City, including minutes of the City Council, proposed
ordinances and resolutions, deeds and easements, contracts, birth and death certificate records, the computerized indexing
of Council actions and Board appointments, computerized code, keeps abreast of legislative changes in elections,
administers all City elections, and the City’s Records Management program, provides support services to the City
Council, and responds to requests made by the City Manager affecting the daily business operation of the City.




Expenditures by Category

                                                            Original
                                       Actual               Approved               Revised               Proposed
                                      2004-05               2005-06                2005-06               2006-07
  Personnel Services                       305,593                330,537               322,493                328,572
  Contracted Services                       89,485                192,400               192,400                213,749
  Materials and Supplies                   101,095                127,400               127,400                121,000
  Other Charges                             99,108                174,000               174,000                185,000
  Capital Outlay                                 0                      0                     0                 29,000

  Total                                    595,281                824,337               816,293                877,321




                                                        119
Goals and Objectives

   •   Implement electronic agenda.
   •   Preservation of permanent records.
   •   Prepare City Council agendas and minutes.
   •   Provide records management of City’s records.
   •   Provide assistance to City Council, Staff and Citizens.
   •   Receive/respond to Open Records requests.
   •   Issue passport applications, birth/death records.
   •   Serve as liaison in City elections.
   •   Conversion of City records to electronic records.

What We Accomplished in 2005-06

   •   Training/implementation electronic agenda.
   •   Microfilmed minute books for preservation of permanent records.
   •   Professional development and cross training of Staff.
   •   Destruction of 448 boxes of records at end of retention period in Records Center.
   •   Provided training Workshops to Department liaisons regarding Records Management.
   •   Responded to Open Records requests.
   •   Laserfiche Council records.
   •   Code of Ordinance supplements.
   •   Issued passport applications, birth/death records.
   •   Begin complete department file reorganization.
   •   Assisted monthly Mayor’s Coffees, bi-monthly Mayor’s Breakfast with Clergy.

What We Plan to Accomplish in 2006-07

   •   Continue with electronic agenda implementation.
   •   Convert 280 boxes of permanent records to electronic format for preservation; continue converting
       additional permanent records with any funds available.
   •   Destruction of 500 boxes of records at end of retention period in Records Center.
   •   Serve as liaison between City and County for administration of elections.
   •   Hold workshops for Records Management liaisons.
   •   Continue electronic indexing of Council records, Code of Ordinance supplements, vitals and passport
       services.
   •   Continue complete department file reorganization.




                                                    120
Performance Measures

                                                             Unit of    Actual   Estimated   Projected
                                                             Measure   2004-05    2005-06    2006-07
 Support City Council Meetings:
         Prepare agendas, order meals, transcribe
         minutes, execution of contracts,
         agreements, ordinances, resolutions,                            75         75          75
         Citizen comment sign up, prepare
         proclamations, certificates, awards
 Maintain Official Records:
         City Ordinances/Resolutions                                    400        400         400
         Contracts & Agreements                                         125        125         125
         Code Supplements                                               120        120         120
         Public and Legal Notices                                       225        225         225
         Proclamations and Certificates                                 330        330         330
 Support City Boards & Commissions:
          Process Appointments, Oaths                                   250        250         250
 Receive & Attend Bid Openings                                          100        125         135
 Records Management For Departments:
         Inactive Records Stored (Cubic Ft)               Boxes         850                   1,100
         Destruction Of Records (Cubic Ft)                Boxes         200                    495
         Inactive Records Stored                         Map Boxes      426        465         200
         Conversion of paper to electronic media           CD’s                                 75
 Computer Backups                                                       465        500         500
 Software Programs                                                      300        300         300
 Telephone, In-Person Requests, Search Records &                        1,500     1,000       1,000
 Provide Copies                                                         2,500     3,000       3,000
 Documents Microfilmed                                                  5,000     10,000      10,000
 Receive bids, RFP’s                                           Yr       100        100         100
 Vital Statistics Records:
 Certified Copies Of Birth And Death Records                            4,790     5,000       5,000
 Laserfiche electronic conversion of Council records          Vol        5          6           8




                                                       121
            City of San Marcos                          Original
               Fiscal Year 2006/2007        Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget          2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 103 - City Clerk

51100   Salaries                             201,310      214,198       208,208      212,743       -0.7%
51110   W/C Insurance                            396          419           423          397       -5.3%
51120   Overtime                              16,744       23,122        23,122       23,122        0.0%
51190   Medicare                               3,149        3,553         3,434        3,529       -0.7%
51200   FICA                                  13,463       15,194        14,691       15,096       -0.6%
51210   TMRS                                  31,689       34,019        32,863       33,793       -0.7%
51220   Insurance                             31,215       32,280        32,280       32,280        0.0%
51300   Stability Pay                          1,628        1,752         1,472        1,612       -8.0%
51350   Car Allowance                          6,000        6,000         6,000        6,000        0.0%

        Total Personnel Services             305,593      330,537       322,493      328,572       -0.6%

52010   Copier Rental                         31,172       40,000        40,000       40,650        1.6%
52100   Printing and Publications              4,664       35,000        35,000       35,000        0.0%
52110   Telephone                              6,917       20,000        20,000       20,000        0.0%
52160   Professional Services                 19,822       12,400        12,400       12,400        0.0%
52390   Maintenance Contract - Office         11,262       30,000        30,000       30,000        0.0%
52391   Information Technology Services          -         10,000        10,000       15,699       57.0%
52450   Election Expense                      15,649       45,000        45,000       60,000       33.3%

        Total Contracted Services             89,485      192,400       192,400      213,749       11.1%

53150   Supplies - Other                       2,472       22,400        22,400       15,000      -33.0%
53160   Supplies - Office                     93,674      100,000       100,000      100,000        0.0%
53180   Postage                                4,950        5,000         5,000        6,000       20.0%

        Total Materials and Supplies         101,095      127,400       127,400      121,000       -5.0%

54140   Dues and Subscriptions                25,495       20,000        20,000       30,000       50.0%
54250   Legal Notices                         10,813       20,000        20,000       21,000        5.0%
54340   Professional Development               4,221       10,000        10,000       10,000        0.0%
54352   Economic Development                   4,092       12,000        12,000       12,000        0.0%
54500   Council Related Items                 36,369       50,000        50,000       50,000        0.0%
54510   Council Travel - Mayor                10,984       14,000        14,000       14,000        0.0%
54511   Council Travel - Place 1                  30        8,000         8,000        8,000        0.0%
54512   Council Travel - Place 2               1,695        8,000         8,000        8,000        0.0%
54513   Council Travel - Place 3                 383        8,000         8,000        8,000        0.0%
54514   Council Travel - Place 4                 187        8,000         8,000        8,000        0.0%
54515   Council Travel - Place 5               3,184        8,000         8,000        8,000        0.0%
54516   Council Travel - Place 6               1,655        8,000         8,000        8,000        0.0%

        Total Other Charges                   99,108      174,000       174,000      185,000        6.3%

61100   Miscellaneous Equipment                   -           -             -         29,000     100.0%

        Total Capital Outlay                      -           -             -         29,000     100.0%


Total City Clerk                             595,281      824,337       816,293      877,321        6.4%




                                            122
Legal
Department Organization


                               City Attorney


                                                                    Assistant City Attorney (2)




                                                      Legal Secretary




                                                                          Senior Paralegal


                                                                        Department Secretary




Mission Statement
The mission of the Legal Department is to provide high quality legal services to facilitate policy making by the City
Council and City Manager, to ensure the legality of the City’s actions, to promote compliance with City regulations, to
manage the City’s real property interests, to represent the City’s interests in litigation and legislative matters, and to
provide staffing for the Ethics Review and Charter Review Commissions.




Expenditures by Category

                                                            Original
                                       Actual               Approved               Revised               Proposed
                                      2004-05               2005-06                2005-06               2006-07
  Personnel Services                       413,726                508,000               498,308                508,368
  Contracted Services                       36,659                 69,715                69,715                 70,229
  Materials and Supplies                     8,648                 10,166                10,166                 10,350
  Other Charges                              6,474                  7,000                 7,000                  8,000
  Capital Outlay                                 0                      0                     0                      0

  Total                                    465,507                594,881               585,189                596,947




                                                        123
Goals and Objectives

   •   To facilitate City Council decisions by preparing and reviewing agenda materials for Council meetings.
   •   To provide contracting support for City CIP projects and other procurements.
   •   To support law enforcement/code enforcement efforts of the City related to traffic laws, alcoholic beverage
       laws, noise limits, and other regulations.
   •   To provide legal services related to real property interests of the City.
   •   To provide effective support for litigation involving the City’s interests.
   •   To improve the provision of legal services to the City using technology.
   •   To facilitate effective meetings of the Ethics Review Commission, Charter Review Commission, and San
       Marcos Industrial Development Corporation Board of Directors.

What We Accomplished in 2005-06

   •   We drafted/reviewed several ordinances: City-wide zoning map revisions; establishing Tax Increment
       Finance Reinvestment Zone No. 3 (Hotel and Conference Center); revising permit application process and
       expirations; designating Tax Abatement Reinvestment Zone No. 21 (north IH-35 area); revising ethics
       regulations; and annexation of Balcones Business Park, First Baptist Church, and Edwards tracts.
   •   We drafted, reviewed, and negotiated agreements related to development incentives (Prime Outlets
       expansion, new Chuck Nash facility, hotel and conference center), water treatment plant operations and
       expansion (GBRA), economic development services (GMG), parkland acquisition (Nature
       Conservancy/Gilmore), and utility pole attachments (Time Warner, CenturyTel).
   •   We represented the City and Hays County on water supply/spring protection issues related to the Edwards
       Aquifer Authority, Guadalupe Basin Coalition and South Central Texas Water Advisory Committee.
   •   We provided staffing for meetings of the Ethics Review Commission, Charter Review Commission, and
       Industrial Development Corporation Board.
   •   We assisted in implementing policy changes in response to actions of the 2005 Texas Legislature.

What We Plan to Accomplish in 2006-07

   •   We will provide legal services to implement CIP projects, including the Wonder World Drive Extension,
       Wonder World Drive Overpass, Post Road paving and drainage, and Rio Vista paving and drainage.
   •   We will continue monitoring developments affecting the City’s water supply, and representing the City and
       County with respect to the San Marcos springs and river.
   •   We will provide staffing and support to the Ethics Review Commission, Charter Review Commission and
       San Marcos Industrial Development Corporation Board.
   •   We will monitor actions of the 2007 Texas Legislature for changes in state laws affecting the City.




                                                   124
Performance Measures

                                                           Unit of     Actual     Estimated    Projected
                                                           Measure    2004-05      2005-06     2006-07

 Ordinances/Resolutions prepared                                        294          300          315
 Amount of expenditures under CIP contracts for
 projects in design or construction phase                            15,000,000   35,000,000   95,000,000
 Written Or Email Communications/Legal
 Opinions/Interpretation                                               4,500        5,000        5,500
 Deeds/Easements/Abandonments/Leases Prepared
 Or Reviewed                                                            200          220          240

 Major Contracts Prepared Or Reviewed                                   60           70           70

 Minor Contracts Prepared Or Reviewed                                   200          220          245

 Staff resources for non-trial Mun Crt matters                                      1.600        1,700

 Municipal Court Cases Tried Before Court                                            520          550
 Ethics Review Commission, Charter Review
                                                                        15           25           25
 Commission and Industrial Development
 Corporation Board-Agenda preparation and staffing




                                                     125
              City of San Marcos                        Original
                Fiscal Year 2006/2007       Actual     Approved      Estimated     Proposed    Percent of
                    Annual Budget         2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 106 - Legal

51100   Salaries                             305,892      381,019       372,024      377,194       -1.0%
51110   W/C Insurance                            603          689           714          659       -4.4%
51120   Overtime                                 703          530           530          600       13.2%
51190   Medicare                               4,559        5,676         5,604        5,676        0.0%
51200   FICA                                  19,018       23,084        23,638       23,943        3.7%
51210   TMRS                                  44,741       54,846        53,642       54,340       -0.9%
51220   Insurance                             27,877       32,280        32,280       32,280        0.0%
51300   Stability Pay                          4,332        3,876         3,876        4,076        5.2%
51350   Car Allowance                          6,000        6,000         6,000        9,600       60.0%

        Total Personnel Services             413,726      508,000       498,308      508,368        0.1%

52030   Legal Books                            1,047        5,250         5,250        3,000      -42.9%
52110   Telephone                              1,240        2,000         2,000        2,500       25.0%
52230   Special Counsel                       19,864       40,000        40,000       41,000        2.5%
52231   Litigation Related Costs                 515        7,000         7,000        7,500        7.1%
52391   Information Technology Services          -          1,365         1,365        1,429        4.7%
52580   Courthouse Recordings                    178          500           500          500        0.0%
52720   Legal Reference Services              13,815       13,600        13,600       14,300        5.1%

        Total Contracted Services             36,659       69,715        69,715       70,229        0.7%

53150   Supplies - Other                       2,992        2,566         2,566        2,500       -2.6%
53160   Supplies - Office                      4,710        5,500         5,500        5,500        0.0%
53180   Postage                                  946        1,600         1,600        1,850       15.6%
53300   Repairs - Vehicle / Equipment            -            500           500          500        0.0%

        Total Materials and Supplies           8,648       10,166        10,166       10,350        1.8%

54140   Dues and Subscriptions                 1,217        2,000         2,000        2,000        0.0%
54340   Professional Development               5,257        5,000         5,000        6,000       20.0%

        Total Other Charges                    6,474        7,000         7,000        8,000       14.3%

61100   Miscellaneous Equipment                   -           -             -            -          0.0%

        Total Capital Outlay                      -           -             -            -          0.0%


Total Legal                                  465,507      594,881       585,189      596,947        0.3%




                                            126
Human Resources
Department Organization

                                                    City Manager


                                                 Director of Human
                                                     Resources

                                                Assistant Director of
                                                 Human Resources

 Insurance and Benefits         Safety/Loss Prevention           Benefits Manager               Human Resources
       Technician                      Manager                                                    Supervisor

                                                                            Department Secretary


                                                                          Recruitment/Information
                                                                                Technician

                                                                           Receptionist/Switchboard
                                                                                   Operator




Mission Statement
The mission of the Human Resources Department is to provide quality service by ensuring a fair and equitable workplace
and protecting the assets of the organization through programs and activities.




Expenditures by Category

                                                          Original
                                      Actual              Approved              Revised               Proposed
                                     2004-05              2005-06               2005-06               2006-07
 Personnel Services                       568,097               587,461               602,693              610,016
 Contracted Services                       66,024               110,029               110,029               90,032
 Materials and Supplies                    17,291                20,450                20,450               20,700
 Other Charges                             11,188                15,700                15,700               16,950
 Capital Outlay                            82,561                     0                     0                    0

 Total                                    745,161               733,640               748,872              737,698




                                                      127
Goals and Objectives

   •   Manage the Human Resources and Risk Management functions through monitoring existing and developing
       regulations and requirement and administering and developing appropriate policies and programs.
   •   Provide quality service to internal and external customers.
   •   Provide effective training programs for employees and supervisors to meet the current and future needs of
       the organization.
   •   Ensure a fair and equitable classification, compensation and benefits package.
   •   Develop partnerships with departments to protect the assets of the organization through the risk
       management program and safety coach leadership programs.
   •   Manage claims filed and assist departments in analyzing operations to minimize financial loss.

What We Accomplished in 2005-06

   •   Training: Diversity, performance appraisal, customer service, safety coach, loss prevention and supervisory
       presentations and sessions.
   •   Pay program administration including conducting a Market study.
   •   Expanded Human Resources information available on the city’s web page.
   •   Began Implementation of Human Resources Information System Online Recruitment; implement Training
       & Development, Employee Relations and Safety and Health Modules. This project is in progress.
   •   Employee benefits program renewal and annual open enrollment.
   •   Property, casualty and liability exposure summary and coverage renewal.
   •   Local Civil Service Rules and Employee Handbook Revision.

What We Plan to Accomplish in 2006-07

   •   Pay program administration including implementation of Market study.
   •   Expand Human Resources information available on the city’s web page.
   •   Complete Implementation of Human Resources Employee Manager Self/Service module.
   •   Employee benefits program renewal and annual open enrollment.
   •   Property, casualty and liability exposure summary and coverage renewal.
   •   Continue developing loss prevention policies and programs which will reduce claims cost.
   •   Training: Diversity, performance appraisal, customer service, safety coach, loss prevention and supervisory
       presentations and sessions.
   •   Expansion of Record’s Management program – develop a plan and seek resources for digital archiving of
       employee records in searchable format.




                                                   128
Performance Measures

                                                  Unit of        Actual   Estimated   Projected
                                                  Measure       2004-05    2005-06    2006-07
 Employees                                    Employee            515       520         520
 Employment applications processed            Application        1,514     2,000       2,000
 New Employees Hired                          Employee            110       120         120
 Separated Employees                          Employee             70       100         100
 Civil Service Tests:
    Entrance                                     Test             2          2           2
    Promotional                                  Test             6          6           6
                                                Survey
 Compensation/Benefit surveys completed                          39         40          40
                                                Events
 Assessment Centers Conducted                                     0          4           3
                                              Evaluations
 Performance Evaluations Processed                               340        350         350
                                                 Job
 Write/Revise Job Analysis                                       12         16          14
                                               Analysis
 Compensation Classification of position                          8         16           6
                                               Position
                                              Classroom
 Training hours provided
                                                Hours            330        350         400
 Loss Prevention:
                                                  Site Visits    160        160         160
 Site Visits Consultations
 Work Status/Case Management:
                                                    Cases         85         75          75
 Off-duty (including intermittent)
                                                    Cases         78         70          70
 Modified Duty
 Claims Managed:
                                                   Claims         57         55          55
 Property/Liability
                                                   Claims         54         55          65
 Workers’ Compensation
 Awards
                                                   Award          29         31          30
 Texas Safety Association Awards Received
                                                   Award
 Texas Chapter PRIMA
 Employee & Special Events                         Events         18         13          18




                                            129
            City of San Marcos                          Original
               Fiscal Year 2006/2007        Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget          2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 119 - Human Resources

51100   Salaries                             419,342      429,894       442,061      447,768        4.2%
51110   W/C Insurance                            846          776           840          774       -0.3%
51120   Overtime                               1,569        4,245         4,245        4,245        0.0%
51190   Medicare                               6,044        6,422         6,603        6,686        4.1%
51200   FICA                                  25,496       26,858        27,887       28,241        5.1%
51210   TMRS                                  60,076       62,234        64,025       64,838        4.2%
51220   Insurance                             46,524       48,420        48,420       48,420        0.0%
51300   Stability Pay                          2,800        3,212         3,212        3,644       13.4%
51350   Car Allowance                          5,400        5,400         5,400        5,400        0.0%

        Total Personnel Services             568,097      587,461       602,693      610,016        3.8%

52100   Printing and Publications              7,181       16,000        16,000       16,000        0.0%
52110   Telephone                              3,833        4,000         4,000        5,000       25.0%
52160   Professional Services                 55,010       66,200        66,200       66,200        0.0%
52391   Information Technology Services          -         23,829        23,829        2,832      -88.1%

        Total Contracted Services             66,024      110,029       110,029       90,032      -18.2%

53150   Supplies - Other                       8,753        9,500         9,500        9,500        0.0%
53160   Supplies - Office                      5,985        6,000         6,000        7,250       20.8%
53180   Postage                                2,552        4,950         4,950        3,950      -20.2%

        Total Materials and Supplies          17,291       20,450        20,450       20,700        1.2%

54140   Dues and Subscriptions                 1,593        1,900         1,900        2,150       13.2%
54340   Professional Development               9,595       13,800        13,800       14,800        7.2%

        Total Other Charges                   11,188       15,700        15,700       16,950        8.0%

61100   Miscellaneous Equipment               82,561          -             -            -          0.0%

        Total Capital Outlay                  82,561          -             -            -          0.0%


Total Human Resources                        745,160      733,640       748,872      737,698        0.6%




                                            130
Finance

Department Organization

                                                          City Manager


                                                       Director of Finance


                                                  Assistant Director of Finance


         Purchasing Manager                               Accounting Manager                             Accountant II


                                       Buyer                                      Accounting Technician II


                                Purchasing Clerk III                         Accounting Technician I (3)


                              Mail Services Coordinator                      Senior Accounting Clerk (2)


                                 Mail Services Clerk



Mission Statement
The Finance Department is responsible for the sound fiscal management of all City assets. The department supervises all
revenue collections, property tax administration, purchasing, investments, fixed asset management, Municipal Court
administration and financial reporting. The need to keep current in staff training and to retain qualified professionals
becomes increasingly more important as the City expands its role in economic development through actively participating
in various grant programs, analyzing the feasibility of various economic incentive programs and maintaining an
up-to-date status on the various laws that affect finance (fiscal impact fee laws, arbitrage, investments, etc.). The
purchasing function of the Finance Department continues to produce greater cost savings and services to other City
departments.

Expenditures by Category

                                                               Original
                                         Actual                Approved                   Revised               Proposed
                                        2004-05                2005-06                    2005-06               2006-07
 Personnel Services                            831,921                870,018                  894,243                   894,103
 Contracted Services                           147,441                160,270                  160,270                   168,985
 Materials and Supplies                         41,738                 44,850                   44,850                    46,912
 Other Charges                                  26,685                 32,500                   32,500                    32,750
 Capital Outlay                                      0                      0                        0                         0

 Total                                     1,047,785                1,107,638                1,131,863              1,142,750



                                                            131
Goals and Objectives

   •   The primary goal of the Finance Department is to assure the public protection and an accounting of its
       assets. We strive to achieve this way by a way of collaboration effort with the departments and staff. It is
       also a goal of the Finance Department to provide accurate and compliant budgeting, accounting and payroll
       services to City departments in order to manage the City’s resources and meet federal, state and GASB
       requirements.

What We Accomplished in 2005-06

   •   Awarded the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence
       in Financial Reporting.
   •   Awarded the Government Finance Officers Association (GFOA) Distinguished Budget Presentation.
   •   Continue to provide staff support to the Human Services Advisory Board.
   •   Completed two automated audits of hotel/motels, petty cash and cash drawers, airport contracts and San
       Marcos/Hays County EMS.
   •   Completed Phase II of Highline Implementation.
   •   Completed Depository RFP and awarded contract for depository services.
   •   Completed Audit RFP and awarded contract for audit services.
   •   Reorganized the Finance department to improve efficiencies.

What We Plan to Accomplish in 2006-07

   •   Continue to obtain the Distinguished Budget Presentation Award.
   •   Continue to obtain the Certificate of Achievement for Excellence in Financial Reporting.
   •   Maintain certification of our Investment Policy.
   •   Evaluate implementation of Time Management Self Service.




                                                    132
Performance Measures

                                                            Unit of    Actual   Estimated   Projected
                                                            Measure   2004-05    2005-06    2006-07
 Work Days/Audit                                            Number      2.5        2.5         3
 Accounts Payable Transactions Per Accounts
 Payable Employee/Monthly                                   Number     830       1,006        918
 Accounts Receivable Transactions Per Accounts
 Receivable Employee/Monthly                                Number     154        224         231
 Number Of Checks Disbursed Per Employee
 Involved In Process                                        Number     3,440     2,929       2,754
 Number Of Procurement Card Transactions Per
 Employee Involved In Process                               Number     4,724     5,172       5,431
 Pays Processed Per Payroll Employee/Month                  Number     500        466         471
 GFOA Distinguished Presentation                                       Yes        Yes         Yes
 GFOA Certificate Of Achievement For Excellence
 In Financial Reporting                                                Yes        Yes         Yes
 Purchase Orders Processed                                  Number     2,898     3,036       2,500
 Invitation For Bid/Request For Proposals Processed         Number      48         55          70
 Cooperative Contract Purchases                             Number      45         46          45
 Minor Construction Contracts                               Number      35         22          20
 Annual Contracts maintained                                Number      67         58          60
 % of annual contracts renewed on time                      Percent    82%        98%        100%
 # of Packages Received by Mail Services                    Number     3,550     3,622       3,600
 # of Pieces of Mail Processed                              Number    257,331   273,298     273,000




                                                      133
            City of San Marcos                           Original
                Fiscal Year 2006/2007       Actual      Approved       Estimated     Proposed     Percent of
                    Annual Budget         2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 112 - Finance

51100   Salaries                             603,586       620,880        641,078      641,078         3.3%
51110   W/C Insurance                          1,211         1,134          1,224        1,116        -1.6%
51120   Overtime                               6,947        14,015         14,015       14,015         0.0%
51190   Medicare                               8,576         9,386          9,677        9,677         3.1%
51200   FICA                                  36,672        40,077         40,912       40,912         2.1%
51210   TMRS                                  86,963        91,350         94,213       94,213         3.1%
51220   Insurance                             76,042        80,700         80,700       80,700         0.0%
51300   Stability Pay                          6,525         7,076          7,024        6,992        -1.2%
51350   Car Allowance                          5,400         5,400          5,400        5,400         0.0%

        Total Personnel Services             831,921       870,018        894,243      894,103         2.8%

52100   Printing and Publications             16,343        17,650         17,650       18,000        2.0%
52110   Telephone                                788         2,500          2,500        1,000      -60.0%
52160   Professional Services                124,579       134,120        134,120      138,000        2.9%
52390   Maintenance Contract - Office          5,731         6,000          6,000        6,000        0.0%
52391   Information Technology Services          -             -              -          5,985      100.0%

        Total Contracted Services            147,441       160,270        160,270      168,985         5.4%

53140   Fuel and Lubrication                   1,064         1,100          1,100        1,412        28.3%
53150   Supplies - Other                      28,988        26,000         26,000       27,000         3.8%
53160   Supplies - Office                      5,688         6,500          6,500        7,000         7.7%
53180   Postage                                5,899        10,500         10,500       10,500         0.0%
53300   Repairs - Vehicle / Equipment            100           750            750        1,000        33.3%

        Total Materials and Supplies          41,738        44,850         44,850       46,912         4.6%

54140   Dues and Subscriptions                 3,011         5,000          5,000        5,000         0.0%
54340   Professional Development              23,674        27,500         27,500       27,750         0.9%

        Total Other Charges                   26,685        32,500         32,500       32,750         0.8%

61100   Miscellaneous Equipment                   -            -              -            -           0.0%

        Total Capital Outlay                      -             -             -             -          0.0%


Total Finance                               1,047,785     1,107,638     1,131,863     1,142,750        3.2%




                                            134
Municipal Court
Department Organization

                                  City Manager


                               Director of Finance


                          Municipal Court Administrator


                                                               Municipal Court Supervisor


                                                                          Marshal


                                                              Municipal Court Clerk III (5)




Mission Statement
The mission of the Municipal Court is to serve the public and be a model Municipal Court by being fiscally responsible
and maintaining a well-trained staff.




Expenditures by Category

                                                          Original
                                      Actual              Approved              Revised              Proposed
                                     2004-05              2005-06               2005-06              2006-07
 Personnel Services                       328,710               475,657               479,043              477,984
 Contracted Services                       11,018                15,700                15,700               23,236
 Materials and Supplies                    12,168                18,835                18,835               21,404
 Other Charges                              3,646                12,500                12,500               12,500
 Capital Outlay                                 0                     0                     0                    0

 Total                                    355,542               522,692               526,078              535,123




                                                      135
Goals and Objectives
   The San Marcos Municipal Court strives to ensure:
   • Access to Justice
           o Relocate the court to a facility that will ensure access to the facility while accommodating various
              improvements necessary to ensure the safety and security of all parties.
   • Expedition and Timeliness
           o Develop and implement standard operating procedures for scheduling and the timely processing of
              cases
   • Equity, Fairness & Integrity
           o Develop court procedures that faithfully adhere to relevant laws, procedural rules and established
              policies that promote compliance with court orders.
   • Independence and accountability
           o Recruit and retain a professional, well-trained, customer service oriented workforce to better serve
              the needs of the public.

What We Accomplished in 2005-06

   •   Added one new plea docket resulting in reducing docket back log by one month.
   •   Obtained reporting tool to better access data from the court software system.
   •   Warrant round-Up – March 04, 2005 addressed 501 cases in warrant status.
   •   Implemented Court security fee.
   •   Implemented quality control procedures for case file system to ensure compliance with record retention
       schedules.

What We Plan to Accomplish in 2006-07

   •   Relocate the court to improve operational systems and court security.
   •   Revise court procedures to improve timeliness of case processing.
   •   Provide active support to ensure compliance with court orders through in-house collections activity.
   •   Ensure all clerks obtain Court Clerks Level I certification.
   •   Upgrade or replace current court software.
   •   Begin evaluation of additional software to begin electronic record creation, storage, movement and internet
       access.




                                                   136
Performance Measures

                                   Unit of    Actual     Estimated   Projected
                                   Measure   2004-05      2005-06    2006-07
 Cases Filed:                                 20,443      17,700      18,400
                                     #
 City Ordinance                                685         600         650
                                     #
 Traffic                                      9,587       9,500       9,600
                                     #
 Non Traffic                                  5,149       5,100       5,150
                                     #
 Parking                                      5,022       2,500       3,000
                                     #
 Number Of Hearings Held              #       8,850       8,950       8,975
 Revenue                             $       1,609,921   1,610,000   1,615,000
 Warrant Roundups:
 Number                              #          1           1           2
 Cases                               #         N/A         501         550
 Revenue                             $       208,988     227,825     320,000
 Dispositions:
 Jail Time Served                    #        1,405       1,405       1,500
 Community Service                   #         773         400         450
 Cases Appealed to County            #          1           4           6
 Dismissed Cases:
 By Jury                             #          1           1           1
 Recommended by Prosecutor           #         765         800         825
 By Judge                            #        1,265       1,230       1,250
 Proof Insurance                     #        1,080       1,250       1,300
 Dismissed Cases w/fee:
 Deferred Adjudication               #        1,673       1,150       1,200
 Defensive Driving                   #         887         950         975
 Library                             #          63          40          45
 Registration                        #         428         475         500




                             137
            City of San Marcos                             Original
               Fiscal Year 2006/2007           Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget             2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 116 - Municipal Court

51100   Salaries                                232,710      340,448       343,414      343,414        0.9%
51110   W/C Insurance                               459          617           652          592       -4.0%
51120   Overtime                                  4,183        2,078         2,078        2,078        0.0%
51190   Medicare                                  3,530        5,094         5,120        5,120        0.5%
51200   FICA                                     15,093       21,726        21,898       21,898        0.8%
51210   TMRS                                     34,197       48,534        48,790       48,790        0.5%
51220   Insurance                                30,133       48,420        48,420       48,420        0.0%
51300   Stability Pay                             2,404        2,740         2,672        1,672      -39.0%
51310   Unemployment Comp. and Term. Leave          -            -             -            -          0.0%
51350   Car Allowance                             6,000        6,000         6,000        6,000        0.0%

        Total Personnel Services                328,710      475,657       479,043      477,984        0.5%

52030   Legal Books                                 -            700           700          700       0.0%
52100   Printing and Publications                 6,809       10,000        10,000        9,500      -5.0%
52110   Telephone                                   743        1,000         1,000        1,000       0.0%
52160   Professional Services                     1,926        2,000         2,000        2,040       2.0%
52390   Maintenance Contract - Office             1,540        2,000         2,000        2,000       0.0%
52391   Information Technology Services             -            -             -          7,996     100.0%

        Total Contracted Services                11,018       15,700        15,700       23,236       48.0%

53140   Fuel and Lubrication                        -            -             -          2,049     100.0%
53150   Supplies - Other                            -          2,000         2,000        2,520      26.0%
53160   Supplies - Office                         6,344        8,835         8,835        8,835       0.0%
53180   Postage                                   5,824        8,000         8,000        8,000       0.0%

        Total Materials and Supplies             12,168       18,835        18,835       21,404       13.6%

54140   Dues and Subscriptions                      903        1,500         1,500        1,500        0.0%
54230   Court Costs                               1,001        3,000         3,000        3,000        0.0%
54340   Professional Development                  1,742        8,000         8,000        8,000        0.0%

        Total Other Charges                       3,646       12,500        12,500       12,500        0.0%

61100   Miscellaneous Equipment                      -           -             -            -          0.0%

        Total Capital Outlay                         -           -             -            -          0.0%


Total Municipal Court                           355,542      522,692       526,078      535,123        2.4%




                                               138
Information Technology
Department Organization


                                       City Manager



                                     Finance Director



                                 Chief Technology Officer



              IT Manager (3)                                  IT Manager (1)



                                                                                    IT Technician (3)




Mission Statement
The mission of the Information Technology Department is to oversee and coordinate new and existing technological
resources for the City of San Marcos by providing recommendations, implementation and technical support of voice and
data information systems.




Expenditures by Category

                                                         Original
                                     Actual              Approved              Revised              Proposed
                                    2004-05              2005-06               2005-06              2006-07
 Personnel Services                      340,371               614,324              623,547              627,611
 Contracted Services                     508,064               550,900              550,900              491,000
 Materials and Supplies                   42,011                27,700               27,700               45,197
 Other Charges                            24,664                43,000               43,000               70,075
 Capital Outlay                                0                     0                    0                    0

 Total                                   915,110             1,235,924            1,245,147             1,233,884




                                                      139
Goals and Objectives

   •   To provide quality IT Support Services to all Departments.
   •   To provide quality network and data services to all Departments.
   •   To provide quality application support to all Departments.
   •   To provide quality telecommunications to the Departments.

What We Accomplished in 2005-06
   •   Upgraded Maximo to version 5.2.
   •   Upgraded Impact to version 8.0.
   •   Wireless access to buildings.
   •   Completed audit and telephone contract to CenturyTel and enhanced telephone caller-id.
   •   Completed Paperless Agenda Software with MuniCode.
   •   Completed customer telephone customer service training.
   •   Completed upgrade to CallPilot.
   •   Completed fiber network into outlining City locations.
   •   Completed 9-1-1 enhanced system.
   •   Completed the Health Department transition to Class cashiering.
   •   Completed changes for new banking agreement (Parks & Recreation and Utility Billing (web & IVR)).

What We Plan to Accomplish in 2006-07

   •   To complete the Utility Billing upgraded to version 19.
   •   Begin the Automatic Meter Reading for Electric and Water/Wastewater Departments.
   •   City-wide Wireless Mesh.
   •   Digital Video for Police cars.
   •   Replace Citizen Request software.
   •   Upgrade to Oracle Financials.
   •   Upgrade to Parks & Recreation Class software.
   •   Replacement or Upgrade for Municipal Court Software.
   •   Install Automatic Tickets application with Municipal Court Software.
   •   Upgrade Police Software to a Citrix Environment.

Performance Measures


                                                         Unit of           Actual   Estimated   Projected
                                                         Measure          2003-04    2004-05    2005-06
 Network Upgrade                                            %              99%        99%          99%
 Application Uptime                                         %              95%        98%          95%
 Telephone Uptime                                           %              99%        99%          99%
 Service Level Agreements                                   %                                      80%




                                                   140
            City of San Marcos                          Original
               Fiscal Year 2006/2007        Actual     Approved       Estimated     Proposed     Percent of
                   Annual Budget          2004/2005    2005/2006     2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 122 - Information Technology

51100   Salaries                             263,172      472,125        470,993      470,993       -0.2%
51110   W/C Insurance                            530          835            883          804       -3.7%
51120   Overtime                                 149        2,000          2,000        6,000      200.0%
51190   Medicare                               3,549        6,903          6,945        6,945        0.6%
51200   FICA                                  15,174       29,509         29,696       29,696        0.6%
51210   TMRS                                  35,150       63,460         68,158       68,158        7.4%
51220   Insurance                             21,329       37,660         43,040       43,040       14.3%
51300   Stability Pay                          1,320        1,832          1,832        1,976        7.9%
51350   Car Allowance                            -            -              -            -          0.0%

        Total Personnel Services             340,371      614,324        623,547      627,611         2.2%

52100   Printing and Publications              1,045        2,000          2,000        2,000         0.0%
52110   Telephone                            155,022      199,000        199,000      162,000       -18.6%
52160   Professional Services                 22,544       52,000         52,000       52,000         0.0%
52391   Information Technology Services      329,452      297,900        297,900      275,000        -7.7%

        Total Contracted Services            508,064      550,900        550,900      491,000       -10.9%

53140   Fuel and Lubrication                     -            -              -          4,097      100.0%
53150   Supplies - Other                      27,563        2,000          2,000       10,000      400.0%
53160   Supplies - Office                        984        2,500          2,500        7,500      200.0%
53170   Supplies - Data Processing            13,309       19,600         19,600       20,000        2.0%
53180   Postage                                  155          600            600          600        0.0%
53300   Repairs - Vehicle / Equipment            -          3,000          3,000        3,000        0.0%

        Total Material and Supplies           42,011       27,700         27,700       45,197        63.2%

54140   Dues and Subscriptions                   300        1,000          1,000        4,000      300.0%
54340   Professional Development              24,364       42,000         42,000       66,075       57.3%

        Total Other Charges                   24,664       43,000         43,000       70,075        63.0%

61100   Miscellaneous Equipment                   -            -             -            -           0.0%

        Total Capital Outlay                      -            -             -             -          0.0%


Total Information Technology                 915,110     1,235,924     1,245,147     1,233,884       -0.2%




                                            141
Planning and Development
                           142
Department Organization



                                          City Manager


                                     Director of Planning and
                                      Development Services

                 Department Secretary


             Chief Planner                                       Assistant Director of PADS


        GIS Services Manager                     Senior Planning
     (Engineering Shared Position)             Technician/Planner *

                                                                                           Senior Planner (2)


                                                                                      Senior Planning Technician


                                                                                      CDBG Program Technician




Mission Statement
To serve today’s community development needs, while actively planning for the needs of tomorrow.



Expenditures by Category

                                                           Original
                                      Actual               Approved              Revised                Proposed
                                     2004-05               2005-06               2005-06                2006-07
 Personnel Services                       481,601                555,722               569,602                  570,946
 Contracted Services                        7,765                 43,300                43,300                   49,998
 Materials and Supplies                    15,631                 18,773                18,773                   19,955
 Other Charges                             15,347                 32,800                32,800                   22,010
 Capital Outlay                             5,849                      0                     0                        0

 Total                                    526,193                650,595               664,475                  662,909




                                                       143
Goals and Objectives

   •   To properly manage the growth and development of the community by carrying out adopted Council
       policies, and providing professional expertise in the area of city planning.
   •   To provide high quality customer service to the various groups we serve, including builders, developers,
       land owners, neighborhood groups, city commissions, outside agencies and the citizens of the community.
   •   To enhance the tax base and livability of the community by encouraging high quality growth and
       development.
   •   To improve the quality of life of low to moderate income San Marcos residents through housing, economic
       development, and public facility/infrastructure projects funded through the Community Development Block
       Grant Program.

What We Accomplished in 2005-06

   •   Completed and adopted the Citywide Rezoning Project based on the new Land Development Code.
   •   Undertook development of a Master Plan for Downtown.
   •   Updated two of eight Sector Plans.
   •   Created two new Historic Districts.
   •   Implemented new or revised processes and procedures in accordance with revisions to State law and the
       LDC.
   •   Increased total number of cases processed by 22.26% (not including the citywide rezoning project).
   •   Strengthened out reach to the community via enhanced liaison activities, newsletter, web and e-list
       information services and fourteen special community meetings.
   •   Administered 9 ongoing projects through CDBG.
   •   Funded 9 new projects through CDBG.
   •   Built 8 new homes through the HOME – Owner Occupied Assistance Program.

What We Plan to Accomplish in 2006-07

   •   Complete and adopt the Master Plan for Downtown.
   •   Update two of the remaining six Sector Plans.
   •   Create a strategic plan for the transition areas around the Texas State Campus.
   •   Administer 17 ongoing projects through CDBG.
   •   Fund 3 new projects through CDBG.
   •   Build or renovate 8 homes through the HOME – Owner Occupied Assistance Program.
   •   Improve processing and tracking of commitments for voluntary annexations.
   •   Continue staff support for city boards and commissions.
   •   Implement and expand IMPACT (our automated record keeping system) for land development processes.
   •   Improve thoroughness, consistency and timeliness of development processing with an emphasis on
       customer service.
   •   Provide support for the City Convention Center and Hammond’s hotel project.




                                                  144
Performance Measures

                                                        Unit of     Actual   Estimated   Projected
                                                        Measure    2004-05    2005-06    2006-07
                                                    Number Of
 Zoning Cases Processed                                              65         40          53
                                                      Cases
                                                    Number Of
 Subdivision Plats Processed                                         57         50          53
                                                      Plats
                                                    Number Of
 Conditional Use Permits Processed                                   20         28          24
                                                      Cases
                                                    Number Of
 Support Of Board And Commission Meetings And
                                                     Meetings        87         90          90
 Other Public Meetings
                                                     Staffed
                                                    Number Of
 Review Of Building Permits For Compliance With
                                                     Plan Sets      393        511         452
 Proposed Zoning Ordinance Standards
                                                    Reviewed
                                                    Number Of
 Review Of Development Permits On Historic
                                                     COA's           13         19          16
 Properties
                                                    Reviewed
                                                    Number Of
 Implementation Of Annexation Plan                    Acres         609        315         462
                                                     Annexed
                                                    Number Of
 Review Of Sign Permit Applications                 Application     133        203         168
                                                     Reviewed
                                                        Variance
 Variances Processed                                                 34         33          34
                                                         Cases
                                                         Size Of
 Acreage of Land included in Master Plans                 Plans     1,988     2,368       2,178
                                                        Reviewed




                                                  145
            City of San Marcos                             Original
               Fiscal Year 2006/2007           Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget             2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 150 - Planning and Development

51100   Salaries                                357,524      407,530       418,145      419,288        2.9%
51110   W/C Insurance                               722          732           791          723       -1.3%
51120   Overtime                                  4,205        3,666         3,666        3,666        0.0%
51190   Medicare                                  5,189        6,054         6,217        6,233        2.9%
51200   FICA                                     22,133       25,660        26,580       26,651        3.9%
51210   TMRS                                     49,996       58,649        60,238       60,401        3.0%
51220   Insurance                                35,774       47,075        47,075       47,075        0.0%
51300   Stability Pay                             1,858          956         1,490        1,508       57.8%
51310   Unemployment Comp. and Term. Leave          -            -             -            -
51350   Car Allowance                             4,200        5,400         5,400        5,400        0.0%

        Total Personnel Services                481,601      555,722       569,602      570,946        2.7%

52100   Printing and Publications                 5,210        8,000         8,000        8,160       2.0%
52110   Telephone                                   987        2,000         2,000        2,040       2.0%
52160   Professional Services                     1,368       27,500        27,500       28,050       2.0%
52391   Information Technology Services             -          5,600         5,600       11,544     106.1%
52580   Courthouse Recordings                       200          200           200          204       2.0%

        Total Contracted Services                 7,765       43,300        43,300       49,998       15.5%

53150   Supplies - Other                          7,573        6,273         6,273        7,205       14.9%
53160   Supplies - Office                         3,292        5,000         5,000        5,100        2.0%
53170   Supplies - Data Processing                  603        2,500         2,500        2,550        2.0%
53180   Postage                                   3,725        4,000         4,000        4,080        2.0%
53300   Repairs - Vehicle / Equipment                 7          500           500          510        2.0%
53510   Supplies - Drafting                         430          500           500          510        2.0%

        Total Materials and Supplies             15,631       18,773        18,773       19,955        6.3%

54140   Dues and Subscriptions                    5,000        5,000         5,000        5,100        2.0%
54250   Legal Notices                               232          500           500          510        2.0%
54270   Commission Training                       3,892        9,000         9,000        4,250      -52.8%
54320   Mileage Reimbursement                       958        1,000         1,000        1,020        2.0%
54340   Professional Development                  5,266       17,300        17,300       11,130      -35.7%

        Total Other Charges                      15,347       32,800        32,800       22,010      -32.9%

61400   General Improvement                       5,849          -             -            -          0.0%

        Total Capital Outlay                      5,849          -             -            -          0.0%


Total Planning and Development                  526,193      650,595       664,475      662,909        1.9%




                                               146
Building Inspections
Department Organization

                                  City Manager



                      Director of Planning and Development
                                     Services


                             Chief Building Official



                                                             Building Permit Technician (2)



                                                               Combination Inspector (3)




Mission Statement
The Building Inspection Division administers building safety codes for the City of San Marcos. The mission of the
Division is the fair, courteous and consistent administration of proposed codes and ordinances. These codes and
ordinances are provided for the health, safety and welfare of the citizens of the community.




Expenditures by Category

                                                         Original
                                    Actual               Approved                Revised         Proposed
                                   2004-05               2005-06                 2005-06         2006-07
 Personnel Services                     270,480                  312,259              319,269          319,598
 Contracted Services                     16,809                   22,150               22,150           19,300
 Materials and Supplies                   7,688                   12,900               12,900           14,875
 Other Charges                            2,019                    4,950                4,950            5,700
 Capital Outlay                               0                        0                    0                0

 Total                                  296,996                  352,259              359,269          359,473




                                                       147
Goals and Objectives

   •   To protect the health and safety of the citizens of San Marcos through the effective administration of
       adopted building codes.
   •   To be responsive to the needs of our customers by providing timely reviews of building plans, within 15 to
       20 days, and inspections within 24 hours of a request.
   •   To provide the City with qualified Building Inspectors through an annual training ladder and code testing /
       certification programs.
   •   Comply with local and State laws regarding inspector certifications and contractor requirements.
   •   To assist applicants in complying with the requirements of the Americans with Disability Act.

What We Accomplished in 2005-06

   •   Implemented the 2003 Building Codes and 2005 NEC.
   •   Increased number of building plans reviewed by 29.93% including application of new codes adopted in the
       LDC.
   •   Increased number of building permits issued by 54.32% including a significantly higher percentage of
       complex civic and commercial projects
   •   Increased the value of buildings constructed by 97.66%.
   •   Provided education classes about changes in building codes and City Ordinances for the general public and
       local contractors.

What We Plan to Accomplish in 2006-07

   •   Implement inspections associated with new water conservation and manufactured home regulations.
   •   Automate review of building plans through use of the IMPACT with other departments.
   •   Improve speed and accuracy of plan reviews.
   •   Provide on-line access to inspection data and scheduling via the IMPACT system.
   •   Provide support for the City Convention Center and Hammond’s hotel project.

Performance Measures
                                                      Unit of          Actual        Estimated        Projected
                                                      Measure         2004-05         2005-06         2006-07
                                                      Construc.
Construction Activity In The Community                              119,717,577     236,634,431      178,176,004
                                                       Value
                                                     Number Of
Construction Activity In The Community                Building         2,220           3,426            2,823
                                                      Permits
                                                     Number Of
Review Of Building Plans For Code Compliance                            393             511              452
                                                      Plan Sets
Customers Served – Walk-In And Telephone             Number Of
                                                                       6,474           6,315            6,395
Inquiries                                            Customers




                                                    148
            City of San Marcos                             Original
               Fiscal Year 2006/2007           Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget             2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 151 - Building Inspections

51100   Salaries                                197,641      227,407       233,093      233,093        2.5%
51110   W/C Insurance                             1,121          936           967        1,056       12.8%
51120   Overtime                                    -            -             -            -          0.0%
51190   Medicare                                  2,741        3,320         3,405        3,405        2.6%
51200   FICA                                     11,720       14,196        14,562       14,562        2.6%
51210   TMRS                                     27,829       32,580        33,422       33,422        2.6%
51220   Insurance                                28,100       32,280        32,280       32,280        0.0%
51300   Stability Pay                             1,328        1,540         1,540        1,780       15.6%
51310   Unemployment Comp. and Term. Leave          -            -             -            -
51350   Car Allowance                               -            -             -            -          0.0%

        Total Personnel Services                270,480      312,259       319,269      319,598        2.4%

52100   Printing and Publications                 2,073        3,000         3,000        3,000        0.0%
52110   Telephone                                 3,136        3,600         3,600        3,600        0.0%
52160   Professional Services                       -          1,500         1,500        1,000      -33.3%
52350   Building Rental                          10,800       11,000        11,000       11,000        0.0%
52390   Maintenance Contract - Office               -          1,500         1,500          500      -66.7%
52391   Information Technology Services             -          1,350         1,350          -       -100.0%
52650   Repairs - Communication                     -            200           200          200        0.0%
52660   Repairs - Building and Equipment            800          -             -            -          0.0%

        Total Contracted Services                16,809       22,150        22,150       19,300      -12.9%

53140   Fuel and Lubrication                      3,454        3,200         3,200        4,995       56.1%
53150   Supplies - Other                          1,288        3,400         3,400        3,580        5.3%
53160   Supplies - Office                           907        1,200         1,200        1,200        0.0%
53170   Supplies - Data Processing                  -            500           500          500        0.0%
53180   Postage                                     234          500           500          500        0.0%
53300   Repairs - Vehicle / Equipment               985        3,000         3,000        3,000        0.0%
53340   Uniforms                                    820        1,100         1,100        1,100        0.0%

        Total Materials and Supplies              7,688       12,900        12,900       14,875       15.3%

54140   Dues and Subscriptions                      419          700           700          700        0.0%
54340   Professional Development                  1,600        4,250         4,250        5,000       17.6%

        Total Other Charges                       2,019        4,950         4,950        5,700       15.2%

61100   Miscellaneous Equipment                      -           -             -            -          0.0%

        Total Capital Outlay                         -           -             -            -          0.0%


Total Building Inspections                      296,995      352,259       359,269      359,473        2.0%




                                               149
150
Environment and Engineering
Department Organization

                                          City Manager




                                    Director of Environment
                                        and Engineering



                   Engineering Contract                 GIS Services Manager
                       Technician                      (PADS Shared Position)



     Senior Engineer                Assistant Director of                   Senior Engineer
                                 Environment & Engineering



 Survey Services Manager                            Engineering Technician III            Engineering Inspector II




  Engineering/GIS Intern                               Engineering Survey                  Engineering Inspector I
                                                           Technician



                                                    Engineering Communications             Special Projects Manager
                                                             Technician                   (Water/ Wastewater Shared
                                                                                                   Position)




Mission Statement
To provide comprehensive engineering and inspection services to the citizens of San Marcos and other City departments
in order to manage the City’s infrastructure, protect the environment and insure public health and safety.




                                                     151
Expenditures by Category
                                                         Original
                                      Actual             Approved               Revised              Proposed
                                     2004-05             2005-06                2005-06              2006-07
 Personnel Services                       784,200               831,291              828,631               969,594
 Contracted Services                       46,946                58,653               58,653                54,584
 Materials and Supplies                    43,967                32,923               32,923                35,262
 Other Charges                             13,395                16,775               16,775                17,111
 Capital Outlay                            24,265                     0                    0               125,000

 Total                                    912,773               939,642              936,982             1,201,551



Goals and Objectives
Goal of the Engineering Department
To provide comprehensive engineering, survey, mapping and inspection services to the citizens of San Marcos and
other City departments in order to manage the City’s infrastructure, protect the environment and insure public health
and safety.

Development Service Objectives:
   • To provide timely and comprehensive review of new development for its impact to the City’s water,
       wastewater, streets and drainage systems.
   • To insure development complies with city ordinances and standards.
   • To develop design standards and guidelines that facilitates the development process and insures quality
       construction.
   • To increase the city’s participation in FEMA’s Community Rating System, thereby improving our
       floodplain management efforts and reducing flood insurance costs to the citizens.
   • To maintain and extend the city’s survey control network to facilitate the seamless integration of new
       development information into the city’s Geographic Information System (G.I.S).
   • To establish and oversee the city’s transportation engineering program.

Capital Improvement Program Objectives:
    • To complete master plans on a timely basis which reflect the needs of a growing community.
    • To identify future infrastructure projects based upon growth impacts and maintenance history.
    • To communicate effectively with the citizens during the design and construction of C.I.P. projects.
    • To coordinate all city easement and ROW surveys to insure integration with G.I.S.
    • To include landscaping and other aesthetic considerations in projects where feasible.
    • To replace water, wastewater and drainage utilities prior to or in conjunction with street improvement
         projects.

Support Services Objectives:
    • To respond promptly to citizen complaints and inquiries.
    • To implement communication plans to pro-actively disseminate information to the citizens and provide
        opportunities for their input.
    • To continue to provide engineering, survey and G.I.S. services to other city departments.
    • To seek opportunities for public/private partnerships in the construction of infrastructure.
    • To coordinate and collaborate with SWT, TxDOT, Hays County and SMCISD.
    • To continue to maintain and update transportation, storm sewer, water and wastewater infrastructure
        information in the city’s G.I.S.




                                                      152
What We Accomplished in 2005-06

Development Service Accomplishments:
   • Implemented Impact software to allow for shared permit and plat tracking with the Planning and
       Development Services Department. Allows coordination between the two departments on development
       reviews and provides greater reporting capabilities. Includes telephone scheduling for inspections.
   • Fine tuned process and submittal requirements to facilitate development under the new Land Development
       Code.
   • Expanded design criteria available on the City’s web page.
   • Upgraded software to provide G.I.S. information on City’s web page.

Capital Improvement Program Accomplishments:
    • Completed construction of El Camino Real Transmission Main Phases 1& 2, Wastewater Treatment Plant
         Modifications and Odor Control, Main Lift Station Improvements, Hopkins Street Emergency Waterline
         Replacement, Purgatory Water Transmission Main, Craddock Street Improvements and Westover Phase 2.
    • Began construction on Wonder World Railroad Overpass, Post Road Improvements, Sink Creek Interceptor
         Phase I, Comanche Water Line Improvements, Surface Water Treatment Plant Expansion for GBRA,
         McCarty Lane 16-inch Waterline Phase I, Posey Road (East) Waterline and the Traffic Synchronization
         Project.
    • Leveraged bond approved bike pedestrian funding to obtain over $750,000 in federal Metropolitan Mobility
         Funds.
    • Completed railroad inventory for use in Quiet Zone Feasibility Study.
    • In conjunction with Finance Department obtained Texas Transportation Commission approval for Pass-
         Through Toll funding for the Wonder World Drive Extension project.
    • In conjunction with the Parks and Recreation Department completed design and construction of the Rio
         Vista Dam Maintenance and Whitewater Improvement Project on emergency.
    • Began right-of-way acquisition and design on Wonder World Drive Extension project.
    • Began design on El Camino Real Transmission Main Phase 3A, Posey Road (West) Waterline, Rio Vista
         Street and Utility Improvement Project, Castle Forrest Drainage Channel Repair and N. LBJ Improvement
         projects.
    • Re-assigned job duties to create Engineering Contracts Technician to streamline professional services and
         construction contract administration with the cooperative efforts of Purchasing and Legal.

Support Services Accomplishments:
   • Responded to over 48 traffic complaints and 26 drainage complaints.
   • Established project complaint database to tract number and type of complaints associated with City
        projects.
   • Provided mapping and technical support for economic development activities.
   • Conducted over 6 public meetings for public input on capital improvement project design. Provided
        monthly Project Status Report on departmental web page and issued over 10 press releases on projects.
   • Provided technical support to the Planning and Zoning Commission, Transportation Advisory Board and
        Bond Advisory Committee.
   • Represented City on CAMPO’s Technical Advisory Committee and attended Austin/San Antonio Rail
        Commuter Rail District and Capital Area Rural Transportation Planning Organization (CARTPO) meetings.
   • Coordinated with TxDOT on joint projects including Traffic Synchronization Project, Loop 82 RR
        Overpass, Hopkins/Thorpe Lane Improvements, Ranch Road 12 Widening, Old Bastrop/SH 123
        Intersection Improvements, Wonder World Drive RR Overpass and Wonder World Extension.
   • Coordinated with Hays County on Old Bastrop Hwy, Posey Rd, McCarty Rd and Redwood Road
        Improvements.
   • Established cooperative projects with Texas State on Hutchison Drainage, Sessom Reconstruction and
        Peques/State Street Intersection.



                                                   153
What We Plan to Accomplish in 2006-07

Development Services:
   • Re-allocate job duties to provide additional personnel for development permit review. Reduce average
       initial permit review time to 20 days.
   • Update Land Development Code Technical Manual. Provide specific water quality design criteria.
   • Complete update study for water and wastewater impact fees.
   • Provide technical support and contract administration on conference center project.

Capital Improvement Program:
    • Complete construction of El Camino Real Transmission Main Phases 3A, Comanche Street Waterline
         Improvements, Comanche Wastewater Replacement, McCarty 16-inch Waterline Phase I, Post Road
         Improvements and Surface Water Treatment Plant Expansion for GBRA.
    • Insure all construction issues are addressed prior to completion of Traffic Signal Synchronization project
         and City takes over maintenance of signals.
    • Complete design and right-of-way acquisition for the Wonder World Extension project.
    • Complete Flood Protection Plan funded through Texas Water Development Board Grant.
    • Begin construction on Riverside MLK Interceptor, Rio Vista Street & Utility project, Hutchison Drainage
         Improvements, Concho Street Wastewater, Nevada Street Wastewater Improvements, Castle Forrest
         Drainage Channel Improvements and McCarty 16-inch Waterline Phase 2.
    • Begin design on Davis Lane Wastewater and Sanitary Sewer Evaluation Survey for Wastewater Subareas
         19 & 21.

Support Services:
    • Contract for maintenance support on traffic signals and continue to train in-house staff.
    • Continue to pursue state and federal funds for transportation projects in San Marcos. Look at joint
        applications with Hays County and Texas State University.
    • Remain active in regional transportation planning to ensure City’s needs are represented.
    • Improve accuracy and detail of information in G.I.S. and facilitate its use by other City departments.
    • Develop mapping tools to facilitate preparation of informative and visually pleasing maps/exhibits.

Performance Measures

                                                           Unit of        Actual        Estimated      Projected
                                                           Measure       2004-05         2005-06       2006-07
 Traffic/Parking Problem Consultations                      Each            76             48             85
 Traffic Counts                                            Location         93             33             95
 C.I.P. Projects Complete Or In Progress                    Each            36             51             55
 Cost Of C.I.P. Projects In Design Or Construction         Dollars       $8.5 Mil       $20.7 Mil      $25 Mil
 Development Plans Reviewed                                 Each            246            280            325
 Public Meetings Staffed                                    Each            105            100            100




                                                     154
            City of San Marcos                             Original
               Fiscal Year 2006/2007           Actual     Approved      Estimated     Proposed     Percent of
                   Annual Budget             2004/2005    2005/2006    2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 145 - Environment & Engineering

51100   Salaries                                575,028      612,133       618,689      724,769        18.4%
51110   W/C Insurance                             2,656        1,526         1,586        2,439        59.8%
51120   Overtime                                  6,500        4,628         4,628        4,628         0.0%
51190   Medicare                                  8,187        9,071         9,165       10,703        18.0%
51200   FICA                                     35,007       38,627        39,196       45,773        18.5%
51210   TMRS                                     82,038       86,482        87,371      102,466        18.5%
51220   Insurance                                65,317       69,940        59,180       69,940         0.0%
51300   Stability Pay                             4,068        3,484         3,416        3,476        -0.2%
51310   Unemployment Comp. and Term. Leave          -            -             -            -           0.0%
51350   Car Allowance                             5,400        5,400         5,400        5,400         0.0%

        Total Personnel Services                784,200      831,291       828,631      969,594        16.6%

52100   Printing and Publications                 1,385          750           750          765         2.0%
52110   Telephone                                 8,371       11,000        11,000       11,220         2.0%
52160   Professional Services                    37,191       16,150        16,150       16,473         2.0%
52391   Information Technology Services             -         28,253        28,253       23,576       -16.6%
52470   Survey and Maps                             -          2,500         2,500        2,550         2.0%

        Total Contracted Services                46,946       58,653        58,653       54,584        -6.9%

53140   Fuel and Lubrication                      5,229        5,000         5,000        6,781        35.6%
53150   Supplies - Other                         16,861       13,123        13,123       13,385         2.0%
53160   Supplies - Office                         6,032        6,000         6,000        6,120         2.0%
53180   Postage                                     384          500           500          510         2.0%
53300   Repairs - Vehicle / Equipment             8,700        4,600         4,600        4,692         2.0%
53340   Uniforms                                    531          900           900          918         2.0%
53420   Supplies - Survey                           957          600           600          612         2.0%
53510   Supplies - Drafting                       5,272        2,200         2,200        2,244         2.0%

        Total Materials and Supplies             43,967       32,923        32,923       35,262         7.1%

54140   Dues and Subscriptions                    2,144        1,500         1,500        1,530         2.0%
54340   Professional Development                 10,761       14,325        14,325       14,612         2.0%
54910   Safety Items                                491          950           950          969         2.0%

        Total Other Charges                      13,395       16,775        16,775       17,111         2.0%

61050   Light Vehicles                           24,265          -             -            -          0.0%
61100   Miscellaneous Equipment                     -            -             -        125,000      100.0%

        Total Capital Outlay                     24,265          -             -        125,000      100.0%


Total Environment & Engineering                 912,773      939,642       936,982     1,201,550       27.9%




                                                155
156
Fire Rescue
Department Organization

                               City Manager



                                Fire Chief



      Department Secretary                      Assistant Fire Chief



             A-Shift                                   B-Shift                                 C-Shift
             Captain                                   Captain                                 Captain


          Lieutenant (3)                            Lieutenant (3)                          Lieutenant (3)



           Engineer (5)                             Engineer (5)                             Engineer (5)



          Firefighter (6)                           Firefighter (6)                         Firefighter (6)




Mission Statement
The Fire Rescue Department is committed to the people, property and environment of San Marcos from the harm of fires,
life-threatening medical emergencies and sudden dangerous physical conditions that threaten our health and safety. We
serve the public with efficiency and effectiveness.

Expenditures by Category

                                                          Original
                                     Actual               Approved             Revised               Proposed
                                    2004-05               2005-06              2005-06               2006-07
 Personnel Services                     3,175,296              3,212,864           3,305,475             3,361,311
 Contracted Services                       71,791                 89,393              89,393                89,728
 Materials and Supplies                   171,435                158,316             158,316               183,588
 Other Charges                             26,754                 33,500              33,500                34,000
 Capital Outlay                            81,500                      0                   0                     0

 Total                                  3,526,776              3,494,073           3,586,684             3,668,627




                                                      157
Goals and Objectives

   •   The Goals and Objectives of the San Marcos Fire Rescue are to provide a well trained, motivated and
       diverse team of professionals that delivers excellence in prevention, educational programs and emergency
       response services to our community in a safe, responsible and efficient manner. We pledge to follow
       through on our promises, keep our selves fit for duty, and strive for excellence in our profession. We also
       pledge to be an advocate for our city and organization, protect the customer as if they were our own family
       and provide friendly and helpful service to our citizens. We promise to be respectful and courteous to the
       public and each other, value the experiences and knowledge of our stakeholders, and conduct ourselves in a
       respectable manner on and off duty. We regard the badge as a symbol of trust from our community, we
       pledge to represent the best interest of the public and our organization and we promise to be reliable in our
       response to customer calls for service.

What We Accomplished in 2005-06

   •   Saved thousands of dollars with new entrance and promotional exams and procedures.
   •   Established a comprehensive Career Development Program for members in all positions in the organization.
   •   Obtained a FEMA Grant for $45,000 for emergency power generators for all four stations.
   •   Obtained a TCFP Grant for $10,000 to refurbish Sutphen Aerial Apparatus to extend its useful life.
   •   Created a Strategic Master Plan for Fire Rescue Services.
   •   Created the Fire Rescue web-site as a community outreach program.
   •   Successfully handled major events including two hurricanes, multiple wildland fires & a train derailment.
   •   Increased training in the department and for area stakeholders and partners.
   •   Led the creation of the Wildland Fire Task Force for Hays County.
   •   Returned the coveted Bravest vs. Finest basketball trophy back to its rightful home at Fire Rescue, all for
       charity.
   •   Created & implemented the new and highly successful “Fired Up About Reading” program with the
       Library.
   •   Partnered with SMPD & Dr. Peter Tarlow to begin creation of the San Marcos Model of “Tourism and
       Terrorism, the use of First Responders as an Economic Development Tool”.

What We Plan to Accomplish in 2006-07

   •   First ever Citizen Fire Academy.
   •   Residential Advisor Fire Academy.
   •   Greek Fire Academy.
   •   Begin Construction on new Fire Station.
   •   Increase educational opportunities in the area of fire prevention and life safety community risk reduction.
   •   Decrease incidents of property damage and injuries to firefighters by 50%.
   •   Seek formal adoption of our Strategic Master Plan for Fire and Rescue Services.
   •   Create a training division within the organization to administer career development opportunities for all
       members of the organization.




                                                    158
Performance Measures


                                                              Unit of       Actual   Estimated   Projected
                                                              Measure      2004-05    2005-06    2006-07
                                                              Response
 Total Responses                                                            2,158     2,468       2,800+
                                                              Numbers
                                                          Number Of
 Public Fire Prevention & Life Safety Education            People          10,396     10,820     11,000+
                                                          Contacted
                                                          Minutes to
 Response Time Average                                                      4.88       5.08        5.00
                                                          Respond
                                                              Per Capita
 Per Capita Cost for Fire and Rescue Services                              $81.40     $76.04      $82.15
                                                                 Cost
 Inspection and Pressure Testing of all Fire Hydrants        % of
                                                                             0         75%        100%
 in the City                                               Hydrants
                                                          Percentage
 Pre-Incident Planning of all target hazards within
                                                           of target         0         65%        100%
 the City
                                                           hazards
 Move towards increasing training of all personnel to
                                                          Hours/Man        129.25      174         260
 meet I.S.O. minimum standards




                                                        159
            City of San Marcos                              Original
               Fiscal Year 2006/2007           Actual      Approved       Estimated     Proposed     Percent of
                   Annual Budget             2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 155 - Fire Operations

51100   Salaries                               2,150,698     2,168,520     2,247,367     2,287,186        5.5%
51110   W/C Insurance                             36,052        33,823        35,084        32,469       -4.0%
51120   Overtime                                 175,898       199,554       199,554       207,554        4.0%
51190   Medicare                                  34,708        34,660        35,942        36,526        5.4%
51200   FICA                                     148,407       148,197       146,784       149,250        0.7%
51210   TMRS                                     346,367       340,138       352,772       358,434        5.4%
51220   Insurance                                256,449       258,240       258,240       258,240        0.0%
51300   Stability Pay                             22,536        22,232        22,232        24,152        8.6%
51310   Unemployment Comp. and Term. Leave           -             -             -             -
51380   Pension Fund - Reserves                    4,179         7,500         7,500         7,500        0.0%

        Total Personnel Services               3,175,296     3,212,864     3,305,475     3,361,311        4.6%

52010   Copier Rental                             1,179         1,200          1,200        1,200         0.0%
52100   Printing and Publications                 1,200         1,200          1,200        1,200         0.0%
52110   Telephone                                 9,931        15,090         15,090       15,090         0.0%
52130   Equipment - Rent / Lease                 22,107        27,862         27,862       27,862         0.0%
52160   Professional Services                    33,098        34,146         34,146       34,146         0.0%
52390   Maintenance Contract - Office               487           500            500          500         0.0%
52391   Information Technology Services             -           4,295          4,295        4,130        -3.8%
52650   Repairs - Communication                   3,750         4,750          4,750        5,250        10.5%
52870   Towing Charges                               40           350            350          350         0.0%

        Total Contracted Services                71,791        89,393         89,393       89,728         0.4%

53120   Chemicals                                 1,477         1,500          1,500        3,500      133.3%
53140   Fuel and Lubrication                     29,599        20,000         20,000       40,708      103.5%
53150   Supplies - Other                         44,962        36,824         36,824       36,824        0.0%
53160   Supplies - Office                         2,000         2,592          2,592        3,600       38.9%
53180   Postage                                     458           600            600          600        0.0%
53240   Repairs - Building                       25,984        26,550         26,550       26,550        0.0%
53300   Repairs - Vehicle / Equipment            41,955        45,250         45,250       45,250        0.0%
53340   Uniforms                                 25,000        25,000         25,000       26,556        6.2%

        Total Materials and Supplies            171,435       158,316        158,316      183,588        16.0%

54140   Dues and Subscriptions                    1,327         2,500          2,500        2,500         0.0%
54340   Professional Development                 24,427        30,000         30,000       30,000         0.0%
54910   Safety Items                              1,000         1,000          1,000        1,500        50.0%

        Total Other Charges                      26,754        33,500         33,500       34,000         1.5%

61050   Light Vehicles                           74,000            -             -             -          0.0%
61070   Fire and Rescue Equipment                 7,500            -             -             -          0.0%

        Total Capital Outlay                     81,500            -             -             -          0.0%


Total Fire Operations                          3,526,776     3,494,073     3,586,684     3,668,627        5.0%




                                               160
Police Administration Services
Department Organization

                                               City Manager




                                               Chief of Police




                                 Department
                                  Secretary




                                              Assistant Chief –
                                                   Police
                                               Administration



             Support Commander                                             Records/
                                                                         Communication
                                                                           Manager



     Sergeant                  Officer              Senior Emergency    Senior Emergency   Records Supervisor
    (Training)               (ALERRT)                Communications      Communications
                                                       Operator (2)         Operator



     Sergeant            Parking Coordinator           Emergency          Emergency        Records Specialist
   (Community                                        Communications     Communications            (3)
    Services)                                          Operator (7)       Operator (7)



     Officer             Parking Technician             Emergency
(Crime Prevention)         [Part-Time] (4)           Communications
                                                         Operator
                                                      [Part-Time] (6)

      Officer               Corporal (1)
     (Juvenile              Officer (3)
  Investigations)        (School Resource)




                                                       161
Mission Statement
The Administrative Division of the Police Department is responsible for 911 emergency communications, training,
school resource, juvenile, crime prevention, accreditation, grant administration, records and administrative supervision
and coordination of all activities and operations within the Police Department.



Expenditures by Category

                                                           Original
                                      Actual               Approved               Revised              Proposed
                                     2004-05               2005-06                2005-06              2006-07
 Personnel Services                      1,874,818             2,113,344             2,169,483             2,178,117
 Contracted Services                       144,099               210,554               210,554               212,861
 Materials and Supplies                    194,927                84,583                84,583                98,348
 Other Charges                              25,513                25,600                25,600                25,800
 Capital Outlay                            228,828                     0                     0                     0

 Total                                   2,468,185             2,434,081             2,490,220             2,515,126



Goals and Objectives

    •    To provide staffing and operation, on a 24 hour per day basis, of the 911 Center for the City of San Marcos.
    •    To coordinate training for the entire police department.
    •    To manage, in conjunction with SMCISD, the School Resource Officer Program.
    •    To conduct two Citizen Police Academy classes.
    •    To maintain active involvement with citizen groups and neighborhood associations to solve problems.

What We Accomplished in 2005-06

    •    Continued program via CADmine of automatic notification to landlords and property managers concerning
         verified noise complaints.
    •    Conducted eighteenth and nineteenth Citizen Police Academy classes.
    •    Continued partnership with SWTSU and HCSO on the ALERRT training center.
    •    Continued partnership with SMCISD on the School Resource Officer program.
    •    Completed review of Department’s Policy Manual.

What We Plan to Accomplish in 2006-07

    •    Continue the School Resource Officer Program with SMCISD providing 50% of the funding for the
         personnel costs.
    •    Conduct two Citizen Police Academy classes.
    •    Maintain departmental goal of forty hours of continuing education each twelve months for every peace
         officer in the department.




                                                       162
Performance Measures

                                                            Unit of    Actual   Estimated   Projected
               Performance Indicators                       Measure   2004-05    2005-06    2006-07
 Peace Officer Training – Department Goal Of 40            %
                                                                       79%        95%        100%
 Hours Per Officer Per Year                             Completed
 Crime Prevention Contacts                                    #        136        130         150
                                                             # Of
 Citizen Police Academy Graduates                                       22         34          40
                                                            Persons
 Minority Representation In Police Officer Testing*           %       34.3%      28.4%        50%
 Incidents For Police Department*                              #      59,192     65,000      68,000
 Average Response Time For Priority 1 Calls*                Minutes    7.30       7.03         6.0
 Calls Dispatched For San Marcos Fire Department *             #       2,609     2,750       2,900
 Calls Dispatched For Hays County EMS*                         #       4,824     5,100       5,250


 * These Are Measured On A Calendar Year Basis.




                                                      163
            City of San Marcos                           Original
               Fiscal Year 2006/2007        Actual      Approved       Estimated     Proposed     Percent of
                   Annual Budget          2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 165 - Police Administration

51100   Salaries                            1,244,118     1,488,531     1,531,977     1,534,140        3.1%
51110   W/C Insurance                          22,177        16,810        18,794        17,474        3.9%
51120   Overtime                              113,913        49,739        49,739        54,739       10.1%
51190   Medicare                               21,097        22,744        23,204        23,486        3.3%
51200   FICA                                   90,209        96,991        99,232       100,437        3.6%
51210   TMRS                                  204,212       214,765       222,773       223,081        3.9%
51220   Insurance                             151,418       193,680       193,680       193,680        0.0%
51300   Stability Pay                          12,472        12,804        12,804        13,800        7.8%
51340   Assignment Pay                         15,200        17,280        17,280        17,280        0.0%

        Total Personnel Services            1,874,818     2,113,344     2,169,483     2,178,117        3.1%

52100   Printing and Publications              1,328         2,300          2,300        4,300        87.0%
52110   Telephone                             22,926        25,000         25,000       25,000         0.0%
52115   Mobile Communications                 36,468        35,600         35,600       35,600         0.0%
52130   Equipment - Rent / Lease              61,879        65,000         65,000       65,000         0.0%
52160   Professional Services                 11,730        15,000         15,000       15,000         0.0%
52390   Maintenance Contract - Office          1,482         1,500          1,500        1,500         0.0%
52391   Information Technology Services          -          55,154         55,154       55,461         0.6%
52900   City Share - School Crossing           8,286        11,000         11,000       11,000         0.0%

        Total Contracted Services            144,099       210,554        210,554      212,861         1.1%

53140   Fuel and Lubrication                  16,905        18,000         18,000       22,898        27.2%
53150   Supplies - Other                     141,786        25,195         25,195       26,000         3.2%
53160   Supplies - Office                      5,990         7,000          7,000        7,000         0.0%
53180   Postage                                3,470         5,000          5,000        5,000         0.0%
53280   Repairs - E/Communication              5,869         6,000          6,000        6,000         0.0%
53300   Repairs - Vehicle / Equipment          8,824         7,500          7,500        7,500         0.0%
53340   Uniforms                               1,507         2,000          2,000        2,000         0.0%
53360   Supplies - Armory                     10,577        13,888         13,888       21,950        58.1%

        Total Materials and Supplies         194,927        84,583         84,583       98,348        16.3%

54140   Dues and Subscriptions                   591           600            600          800        33.3%
54340   Professional Development              24,922        25,000         25,000       25,000         0.0%

        Total Other Charges                   25,513        25,600         25,600       25,800         0.8%

61040   Computer Equipment                     5,035            -             -             -          0.0%
61050   Light Vehicles                       207,711            -             -             -          0.0%
61100   Miscellaneous Equipment               16,083            -             -             -          0.0%

        Total Capital Outlay                 228,828            -             -             -          0.0%


Total Police Administration                 2,468,185     2,434,081     2,490,220     2,515,126        3.3%




                                            164
Police Operation Services
Department Organization

                                                                            City
                                                                           Manager




                                                                           Chief of
                                                                            Police




                                                                         Asst. Chief –
                                                                            Police
                                                                          Operation



                                                               Division
                                                               Secretary




                         Commander                       Commander                                Commander               Sergeant
                         (Day Shift)                     (Night Shift)                              (CID)                (Narcotics
                                                                                                                        Task Force)



         Sergeant                  Sergeant      Corporal                                 Sergeant         Sergeant     Corporal (1)
        (Platoon A)               (Platoon B)   (K-9 Unit)                                (Person         (Property      Officer (2)
                                                                                          Crimes)          Crimes)



        Corporal (1)             Corporal (1)    Sergeant           Sergeant             Corporal (3)    Corporal (3)
         Officer (5)              Officer (5)   (Platoon A)        (Platoon B)            Officer (1)     Officer (2)
                                                 Evenings           Evenings



          Sergeant                              Corporal (1)       Corporal (1)           Evidence        Division
        (Downtown/                               Officer (6)        Officer (6)          Technician       Secretary
        Outlet Malls)



Corporal (1)    Corporal (1)                     Sergeant           Sergeant
Officer (1)     Officer (1)                     (Platoon A)        (Platoon B)
Downtown        Outlet Malls                     Midnights          Midnights



                                                Corporal (1)       Corporal (1)
                                                 Officer (5)        Officer (6)




                                                          165
Mission Statement
The San Marcos Police Operations division is charged with the responsibility of protection of life and property,
identification and apprehension of offenders, and recovery of lost and stolen property. The Operations Division
addresses those responsibilities through pro-active patrol, responding to calls for service, directing traffic,
investigating accidents, conducting criminal investigations, providing emergency response, and participating in other
community service activities. The division conducts narcotic investigations, provides K-9 services and operates the
Crime Stoppers Program.



Expenditures by Category

                                                           Original
                                       Actual              Approved                Revised               Proposed
                                      2004-05              2005-06                 2005-06               2006-07
 Personnel Services                      5,465,663              5,430,603             5,521,341              5,655,816
 Contracted Services                        84,362                 98,863                98,863                 76,294
 Materials and Supplies                    316,474                292,620               292,620                376,342
 Other Charges                              24,931                 35,300                35,300                 35,300
 Capital Outlay                                  0                      0                     0                      0

 Total                                   5,891,430              5,857,386             5,948,124              6,143,752



Goals and Objectives

    •    The Operations Division consists of two entities: The Patrol function, which responds to immediate calls for
         service, and the Criminal Investigation Division, which performs follow-up investigations on cases
         generated by patrol officers. Although the Patrol and Criminal Investigation functions serve two different
         roles, they are similarly joined in their mission to maintain the public order, to protect life and property, and
         to serve the community through legal and ethical means.
    •    Officers in these functions perform their duties through detecting and arresting offenders, proactive crime
         prevention methods, recovering lost or stolen property, assisting those in need, and participating in hands-
         on community involvement through problem solving.

What We Accomplished in 2005-06

    •    Traffic Enforcement – The Directed Traffic Enforcement (DTE) program was enhanced by Council-funded
         overtime to increase traffic enforcement throughout the city. This fiscal year saw the addition of two
         motorcycle officers to work DTE on overtime in high collision areas, school zones and neighborhoods.
         These officers are assigned to specific areas throughout city based on calls by citizens or by supervisory
         directives. A new traffic trailer was purchased this past year and is deployed during the day at various
         locations. The traffic trailer displays the established speed limit in the area and the driver’s speed.
         Statistical data regarding traffic counts and their corresponding speeds are collected via the on-board
         computer and are used to analyze the need for traffic enforcement in that particular area. These data are
         also used by the Planning Department for needs assessments and improvements.
    •    Noise and Party Management – The Noise and Host Responsibility ordinances continue to help provide
         long-term solutions to loud noise and parties that disturb residential areas. SMPD has established very
         good relationships with many property owners and management companies who are willing to get involved
         in resolving repeat noise locations. The department again joined other City departments in a Nuisance
         Abatement Program in the Sagewood area.



                                                        166
•   Alcohol Permitted Establishments/Conditional Use Permits – The department implemented a program in
    coordination with the Planning Department to monitor and address businesses that have ongoing problems
    with illegal activity, including narcotics and alcohol related violations. Through the use of the Land
    Development Code and Conditional Use Permits, the Police Department and Planning Department are
    working with local businesses to recognize and abate ongoing criminal activity at these establishments.
•   Regional Alcohol Information Network (RAIN) – The department joined a regional information network
    coordinated through the Austin Police Department which serves to network and share information regarding
    alcohol related issues including trends, special events, training, and DWI enforcement.
•   Outlet Malls – The Prime Outlet and Tanger Mall present special challenges to us. Twice each year, at Tax
    Free Weekend (the first weekend in August) and the weekend following Thanksgiving, the malls
    experience explosive growth in shoppers as approximately 200,000 vehicles move through the malls each
    weekend. These events require us to assign extra officers to the malls. Additionally, we worked closely
    with TxDOT and the City’s Traffic Department to shut down exit ramps on IH-35 and redirect traffic to key
    points around the malls. We will continue to manage increasing mall traffic through effective incident
    command, traffic direction, and community liaison.
•   Overtime management – The amount of overtime that the Operations Division uses is managed by oversight
    of personnel scheduling, restricting the number of personnel allowed to take leave time during a shift, and
    having administrative and support staff adjust work schedules based on department needs.
•   Inquiry/Complaint tracking – The department utilized a software program to assist in tracking citizen
    inquires, complaints or commendations of officers. This program has assisted in tracking organizational
    and individual officer accountability.
•   Sex Offender Registration Program – The Sex Offender Registration Compliance Program serves as the core of
    an aggressive enforcement program related to sex offenders. The Criminal Investigation Division partners with
    the Patrol Division to make compliance checks on local registered sex offenders. If the compliance check finds
    an offender to be in non-compliance, a Detective actively works the case to obtain an arrest warrant, and the
    offender is arrested. Since inception of the compliance checks, voluntary compliance has increased and remains
    consistence and accurate.
•   Forensic Computer Investigations – The Criminal Investigation Division increased its forensic computer
    work since gaining a new forensic computer this year. Due to technological growth and the use of
    computers in a variety of crimes, the need for forensic computer knowledge and expertise has increased.
    With the addition of new forensic hardware, CID has seen an increase of work load related to computer
    crimes. CID also assisted outside law enforcement agencies that do not have computer forensic capabilities
    in some major criminal cases.
•   Crime Victims Services – A new unit that is attached to the Criminal Investigation Division saw the
    addition of volunteers this year. Six new crime victim volunteers joined the program and went through 38
    hours of training. The volunteers assist the Crime Victim Coordinator in helping with needs of victims of
    crime. In addition to the initial six volunteers, five new volunteers have subsequently joined and are
    currently about to complete their training. This gives SMPD eleven volunteers to help with the needs of
    victims of crime.
•   Domestic Investigation team (DIVT) – The DIVT team is composed of six patrol officers, two detectives
    and one CID sergeant. The DIVT team’s purpose is to conduct more through and detailed investigations of
    domestic violence when responding to the initial crime scene. The DIVT team attended training in San
    Diego in late April and after that training will be setting up the guidelines and parameters for its response to
    domestic violence calls.
•   Family Justice Center – The Family Justice Center project is being headed up by Sergeant Penny Dunn.
    The purpose of the center to create a multi-agency facility where the victims of domestic violence can have
    several areas of need met. Some of the agencies committed to have staff at the Justice Center are; SMPD,
    Hays County Sheriff’s Office, Hays County DA’s office, Hays County Health Department and Hays
    County Women’s Center. Some of the other agencies that have offered to participate in the project include
    the San Marcos Ministerial Alliance, Home Spun, Hays County Food Bank, Hays Council on Alcohol and
    Drug Abuse, Community Action, and the San Marcos Housing Authority.
•   Emotionally Disturbed Persons – SMPD continues its participation in the Mental Health Task Force, which
    consists of partners from Texas State University, Scheib, Hill Country MHMR, CTMC, and the Hays
    County Sheriff’s Dept. SMPD is still leading the way in developing a system of better service for mental
    health patients that are encountered by law enforcement. Part of this is building a partnership with local

                                                  167
       judges to provide round the clock magistrate services so police officers have the tools to be able to lawfully
       detain patients in need of mental health services to State and private hospitals on a timely basis.
   •   Interview Room Renovations – SMPD renovated an existing space into a second interview room. The
       renovation project consisted in removing an existing mirror and remounting the mirror in the second
       interview room. Some wall construction between the two rooms included framing, installing insulation and
       dry wall work. Both interview rooms were painted and new acoustical panels were installed to dampen
       sound between the two rooms and hallway. Prep work and installation was done by staff to reduce costs.
   •   SMPD received the Texas Safety Association’s Award of Merit for no time lost as a result of on the job
       injuries.
   •   Sergeant Jehu Derrickson received the Texas Safety Association’s Award of Honor for twenty years of
       driving without a collision or citation.
   •   Commander Terry Nichols and Officer John Curnutt received the Texas Tactical Police Officers’
       Association Excellence Award for leadership in teaching SWAT tactics to more than 2,500 officers through
       the ALERRT program.
   •   The annual SMPD/SMFD basketball program raised $4,220 that was distributed to the Children’s Make a
       Wish Foundation, SMFD Burn-Out Fund, and a city employee who lost his son to cancer.
   •   $2,700 from the annual Law Enforcement Appreciation Day (LEAD) was given to the CFPO Youth Sports
       Program, San Marcos Housing Authority Kids Against Drugs, and Kid Safe Project.
   •   Officer Rich Mizanin returned to SMPD following a tour of duty in Iraq. Two other SMPD officers, who
       have been on active duty 2+ years, still remain in the military forces.
   •   Sergeant Penny Dunn received the 100 Club of Central Texas Excellence in Policing Award. Sergeant
       Dunn was selected amongst other award nominees to receive the 2006 Officer of the Year Award.

What We Plan to Accomplish in 2006-07

   •   Provide the highest level of police service available with staffing shortages.
   •   Provide essential training as required by law for department personnel.
   •   Continue working closely with Planning Department and the Texas Alcoholic Beverage Commission on
       monitoring permitted establishments.
   •   Continue involvement with the RAIN Network.
   •   Replace aging and expired concealable body armor through use of the Bulletproof Vest Partnership Grant
       which reimburses the Department 50% of the purchase price for each vest.
   •   Pursue the donation of an armored vehicle for the Hays County/San Marcos SWAT Team.
   •   Implement the Domestic Violence Investigation Team.
   •   Enter old CID case reports into the CIS database to eliminate redundant files and the storage problems
       associated with paper files.
   •   Expand traffic enforcement to include motorcycles on a full-time basis with requested funding.
   •   Continue recruitment and training of volunteers for the Crime Victims Services Volunteer program.
   •   Receive OAG and CDBG funding to continue the Victims Services program.
   •   Continue sex offender compliance checks.
   •   Continue work with interested agencies and entities to obtain resources and funding to assess and assist
       emotionally disturbed persons.




                                                     168
Performance Measures
                                                         Unit of    Actual   Estimated   Projected
                                                         Measure   2004-05    2005-06    2006-07
 Calls for service                                         #       51,117     56,402      59,222
 Officer initiated contacts                                 #      31,889     28,500      35,077
 Active cases assigned to detectives                        #       906        925         950
 Cases sent to District Attorney for prosecution            #       1,450     1,480       1,500
 Noise complaints                                          #        2,351     2,500       2,615
 Traffic accidents                                          #       2,943     3,384       3,892
 Traffic citations issued                                   #       5,502     7,153       8,803




                                                   169
            City of San Marcos                         Original
               Fiscal Year 2006/2007      Actual      Approved       Estimated     Proposed     Percent of
                   Annual Budget        2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 166 - Police Operations

51100   Salaries                          3,586,793     3,694,537     3,768,993     3,850,054        4.2%
51110   W/C Insurance                       104,892        78,118        88,283        82,019        5.0%
51120   Overtime                            375,212       287,322       287,322       325,000       13.1%
51190   Medicare                             57,792        59,090        59,902        61,882        4.7%
51200   FICA                                247,112       252,647       241,945       250,423       -0.9%
51210   TMRS                                586,800       570,439       586,402       597,945        4.8%
51220   Insurance                           419,382       395,430       395,430       395,430        0.0%
51300   Stability Pay                        33,440        37,340        37,384        37,384        0.1%
51340   Assignment Pay                       54,240        55,680        55,680        55,680        0.0%

        Total Personnel Services          5,465,663     5,430,602     5,521,341     5,655,816        4.1%

52100   Printing and Publications            1,074         1,000          1,000        1,000         0.0%
52110   Telephone                           18,803        26,463         26,463       26,463         0.0%
52130   Equipment - Rent / Lease            43,882        45,000         45,000       22,431       -50.2%
52160   Professional Services               20,534        25,650         25,650       25,650         0.0%
52870   Towing Charges                          70           750            750          750         0.0%

        Total Contracted Services           84,362        98,863         98,863       76,294       -22.8%

53140   Fuel and Lubrication               133,056       120,850        120,850      182,003        50.6%
53150   Supplies - Other                    43,273        43,825         43,825       43,825         0.0%
53170   Supplies - Data Processing             -             -              -            -           0.0%
53250   Repairs - Collision                  3,407         4,500          4,500        4,500         0.0%
53300   Repairs - Vehicle / Equipment       89,262        84,000         84,000       84,000         0.0%
53340   Uniforms                            45,918        37,945         37,945       60,514        59.5%
53400   Supplies - K/9                       1,558         1,500          1,500        1,500         0.0%
53410   Supplies - Photo Lab                   -             -              -            -           0.0%

        Total Materials and Supplies       316,474       292,620        292,620      376,342        28.6%

54140   Dues and Subscriptions                 975         1,300          1,300        1,300         0.0%
54330   Investigation Costs                  4,000         4,000          4,000        4,000         0.0%
54340   Professional Development            19,956        30,000         30,000       30,000         0.0%

        Total Other Charges                 24,931        35,300         35,300       35,300         0.0%

61050   Light Vehicles                          -             -             -             -          0.0%
61100   Miscellaneous Equipment                 -             -             -             -          0.0%

        Total Capital Outlay                    -             -             -             -          0.0%


Total Police Operations                   5,891,430     5,857,385     5,948,124     6,143,752        4.9%




                                          170
Public Works Administration
Department Organization

                                                     City Manager




                                                Director of Public Works




                                                 Program Coordinator




Mission Statement
The Administration Division provides planning, direction and administrative support services for all divisions within the
Public Works Department, including streets and drainage, vehicle maintenance, and inspections.




Expenditures by Category

                                                           Original
                                       Actual              Approved               Revised               Proposed
                                      2004-05              2005-06                2005-06               2006-07
  Personnel Services                       154,250               152,674                161,811               178,843
  Contracted Services                       13,075                39,067                 39,067                30,927
  Materials and Supplies                    11,900                36,500                 36,500                 6,800
  Other Charges                              6,537                 5,200                  5,200                 5,200
  Capital Outlay                           124,062                     0                      0                25,000

  Total                                    309,824               233,441                242,578               246,770




                                                       171
Goals and Objectives

   •    Maintain commitment to Department Objectives by focusing on core essential services.
   •    Continue implementation of Residential solid waste on-call complaint line.
   •    Ensure reliable quality residential solid waste collection services through effective tracking measures.
   •    Provide quality and responsive customer service.
   •    Provide a facility for the Citizens of San Marcos to drop of their Household Hazardous Waste (HHW) for
        proper disposal.
   •    Successfully complete the Hopkins sidewalks funded by CDBG funds.
   •    Exercise tight fiscal responsibility through close budgetary monitoring.
   •    Continue staff support for the Transportation and Bond Advisory Boards.

What We Accomplished in 2005-06

   •    Continual audit of drainage utility accounts to ensure proper revenue collection.
   •    Successfully conducted a one day Household Hazardous Waste collection event for San Marcos and Hays
        County residents.
   •    Received grant from Capital Area Council of Governments for a permanent facility to store household
        hazardous waste for the citizens of San Marcos and Hays County.
   •    Successfully staffed the residential solid waste one-call complaint line.
   •    Continued the Public Works Department Safety Program.
   •    Provided staff support to the Bond and Transportation Advisory Committees.
   •    Continued to work with TxDOT on the Safe Routes to School sidewalks around Crockett School.

What We Plan to Accomplish in 2006-07

   •    Set up successful operations of the Household Hazardous Waste (HHW) Collection facility.
   •    Continue sidewalk program utilizing grant funding.
   •    Resolve all residential solid waste complaints within 24 hours or less.
   •    Exercise tight fiscal responsibility.
   •    Evaluate all divisions for optimization of operations.
   •    Assume Executive Management responsibility for the Airport.

Performance Measures
                                                             Unit of     Actual       Estimated       Projected
                                                             Measure    2004-05        2005-06        2006-07
 Request for solid waste services or containers from         Actual #     5,304          5,250         5,500
 Citizens, or Utility Billing                                Requests
 Texas Disposal Service Customer Satisfaction                   %        99.99%         99.99%        99.99%

 Drainage fees calculated                                       #          290           300            320

 Street Cut Permits issued                                      #          74             70             70

 Site Development, Subdivision, and misc. reviews               #          78             85             85




                                                       172
            City of San Marcos                               Original
               Fiscal Year 2006/2007             Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget               2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 175 - Public Works Administration

51100   Salaries                                  113,107      112,674       120,134      129,619       15.0%
51110   W/C Insurance                                 228          205           230          225        9.8%
51120   Overtime                                      -            -             -            -          0.0%
51190   Medicare                                    1,636        1,692         1,801        1,939       14.6%
51200   FICA                                        6,997        7,235         7,703        8,291       14.6%
51210   TMRS                                       16,350       16,092        17,167       18,517       15.1%
51220   Insurance                                  12,011       10,760        10,760       16,140       50.0%
51300   Stability Pay                                 320          416           416          512       23.1%
51310   Unemployment Comp. and Term. Leave            -            -             -            -          0.0%
51350   Car Allowance                               3,600        3,600         3,600        3,600        0.0%

        Total Personnel Services                  154,250      152,674       161,811      178,843       17.1%

52100   Printing and Publications                     511        1,000         1,000        1,000        0.0%
52110   Telephone                                   3,502        3,620         3,620        3,620        0.0%
52160   Professional Services                       1,546       18,400        18,400       12,000      -34.8%
52390   Maintenance Contract - Office               1,563        2,200         2,200        2,200        0.0%
52391   Information Technology Services               -          9,692         9,692        6,367      -34.3%
52650   Repairs - Communication                       294          740           740          740        0.0%
52760   Environmental Services                      5,658        3,415         3,415        5,000       46.4%

        Total Contracted Services                  13,075       39,067        39,067       30,927      -20.8%

53150   Supplies - Other                            8,187       32,100        32,100        2,400      -92.5%
53160   Supplies - Office                           1,689        1,700         1,700        1,800        5.9%
53170   Supplies - Data Processing                  1,800        1,800         1,800        1,900        5.6%
53180   Postage                                       224          900           900          700      -22.2%

        Total Materials and Supplies               11,900       36,500        36,500        6,800      -81.4%

54140   Dues and Subscriptions                        456          700           700          700        0.0%
54340   Professional Development                    6,081        4,500         4,500        4,500        0.0%

        Total Other Charges                         6,537        5,200         5,200        5,200        0.0%

61060   Heavy Equipment                           120,775          -             -            -         0.0%
61100   Miscellaneous Equipment                     3,288          -             -            -         0.0%
61410   Survey - New Addition                         -            -             -         25,000     100.0%

        Total Capital Outlay                      124,062          -             -         25,000     100.0%


Total Publics Works Administration                309,824      233,441       242,578      246,770        5.7%




                                                 173
Traffic Control
Department Organization

                                                   City Manager



                                              Director of Public Works



                                        Streets/ Traffic Division Manager



                                                   Crew Leader
                                                     (Traffic)


                     Equipment Operator II (2)                      Equipment Operator I (2)




Mission Statement
To provide the citizens of San Marcos with a safe driving environment.




Expenditures by Category

                                                         Original
                                     Actual              Approved            Revised           Proposed
                                    2004-05              2005-06             2005-06           2006-07
 Personnel Services                      218,628              223,716             228,467           227,810
 Contracted Services                       7,065               14,900              14,900            23,900
 Materials and Supplies                   34,769               39,405              39,405            42,525
 Other Charges                             1,267                3,400               3,400             3,400
 Capital Outlay                                0                    0                   0                 0

 Total                                   261,729              281,421             286,172           297,636




                                                     174
Goals and Objectives

   •    Make and install traffic control and street name signs.
   •    Maintain all parking slots, centerline striping and crosswalks.
   •    Maintain all city school zone lights and traffic signals in safe working order.
   •    Provide traffic control for natural disasters, accidents, special events and other departments within the City
        of San Marcos.

What We Accomplished in 2005-06

   •    Responded promptly to all emergency calls.
   •    Responded quickly to all routine maintenance requests.
   •    Maintained school zone lights and traffic signals.
   •    Striped centerlines, parking slots and crosswalks.
   •    Installed signs and barricades and provided traffic control for parades and all other special events.

What We Plan to Accomplish in 2006-07

   •    Make and install signs in house for traffic control and other departments as needed.
   •    Continue to provide a safe driving environment for the citizens of San Marcos.
   •    Respond quickly to emergencies.
   •    Implement new street striping program with new striping machine.

Performance Measures

                                                            Unit of         Actual        Estimated       Projected
                                                            Measure        2004-05         2005-06        2006-07
 Sign Repair                                                  Each            401            400                415
 Street Striping                                             Miles            57               62               70
 Sign Making                                                  Each            88               95               90
 Brush & Tree Removal                                         Each            93             110                100
 Set/Remove Barricades                                        Each            59               54               60
 School Zone Light/Traffic Signal Repair                      Each             6               5                 8
 Replace Pavement Markings                                    Each            22               20               25
 Traffic Light Repairs                                        Each             39              40               40




                                                      175
            City of San Marcos                         Original
                Fiscal Year 2006/2007     Actual      Approved      Estimated     Proposed    Percent of
                    Annual Budget       2004/2005     2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 176 - Traffic Control

51100   Salaries                           135,331       142,606       146,171      146,171        2.5%
51110   W/C Insurance                       10,402         7,831         8,028        7,308       -6.7%
51120   Overtime                            11,819         9,856         9,856        9,856        0.0%
51190   Medicare                             2,023         2,248         2,303        2,303        2.4%
51200   FICA                                 8,649         9,614         9,849        9,849        2.4%
51210   TMRS                                20,850        22,065        22,604       22,604        2.4%
51220   Insurance                           27,107        26,900        26,900       26,900        0.0%
51300   Stability Pay                        2,448         2,596         2,756        2,820        8.6%

        Total Personnel Services           218,628       223,716       228,467      227,810        1.8%

52110   Telephone                               86           700           700          700       0.0%
52130   Equipment - Rent / Lease               477           700           700          700       0.0%
52160   Professional Services                  -             -             -          9,000     100.0%
52380   Repairs - Signalization              5,769        12,000        12,000       12,000       0.0%
52650   Repairs - Communication                733         1,500         1,500        1,500       0.0%

        Total Contracted Services            7,065        14,900        14,900       23,900       60.4%

53140   Fuel and Lubrication                 5,215         5,300         5,300        7,372       39.1%
53150   Supplies - Other                     5,135         5,300         5,300        5,300        0.0%
53160   Supplies - Office                      158           400           400          400        0.0%
53300   Repairs - Vehicle / Equipment        5,034         3,500         3,500        3,500        0.0%
53340   Uniforms                             2,345         2,400         2,400        2,400        0.0%
53560   Signs and Signals                   14,132        15,505        15,505       16,553        6.8%
53570   Traffic Paint                        2,750         7,000         7,000        7,000        0.0%

        Total Materials and Supplies        34,769        39,405        39,405       42,525        7.9%

54340   Professional Development                599        2,000         2,000        2,000        0.0%
54910   Safety Items                            668        1,400         1,400        1,400        0.0%

        Total Other Charges                  1,267         3,400         3,400        3,400        0.0%

61060   Heavy Equipment                         -            -             -            -          0.0%
61100   Miscellaneous Equipment                 -            -             -            -          0.0%

        Total Capital Outlay                    -            -             -            -          0.0%


Total Traffic Control                      261,728       281,421       286,172      297,636        5.8%




                                          176
Streets
Department Organization


                                                   City Manager



                                              Director of Public Works



                                              Streets/ Traffic Division
                                                      Manager


                                                  Crew Leader (4)
                                                     (Streets)


           Equipment Operator III             Equipment Operator II (7)       Equipment Operator I (4)




Mission Statement
To support the City Council mandate and insure that 18 lane miles of City streets are overlaid while doing daily
maintenance to insure the citizens of San Marcos have safe and drivable streets.




Expenditures by Category

                                                         Original
                                     Actual              Approved           Revised               Proposed
                                    2004-05              2005-06            2005-06               2006-07
 Personnel Services                     806,366                801,854           818,003                  811,135
 Contracted Services                     49,958                 58,668            58,668                   58,668
 Materials and Supplies                 430,481                258,076           258,076                  432,516
 Other Charges                            3,064                  5,800             5,800                    5,800
 Capital Outlay                         148,453                      0                 0                        0

 Total                                1,438,322              1,124,398         1,140,547                 1,308,119




                                                      177
Goals and Objectives

   •   Continue crack seal program as weather permits.
   •   Support other departments as needed and work load allows.
   •   Sweep all streets twice monthly.
   •   Respond quickly to all work orders (pot holes, street cuts, etc.)
   •   Implement new storm sewer maintenance program.

What We Accomplished in 2005-06

   •   Completed 8 lane miles of street minor reconstruction.
   •   Purchased new haul trailer.
   •   Demolished 8 houses for “Home” grant.
   •   Minor reconstructed 7 streets with CDBG funding.
   •   Implemented new pavement management system.

What We Plan to Accomplish in 2006-07

   •   Continue to do 8 miles of minor street reconstruction.
   •   Implement new storm sewer maintenance program.
   •   Demolish 8 more houses for “Home” grant .
   •   Continue to do daily street maintenance.


Performance Measures

                                                           Unit of          Actual   Estimated   Projected
                                                           Measure         2004-05    2005-06    2006-07
 Street Sweeping                                            Miles           2,750     2,800       3,000
 Street Cut Repairs                                          Each           157        127         130
 Pot Hole Repair                                             Each           486        530         500
 Street Reconstruction                                      Miles            8          8           8
 Clean Drains                                                Each            89         70         100
 Crack Sealing                                               Feet            29         32          40
 Open Channel Cleaning                                       Feet           8,513     8,500       8,500




                                                     178
                City of San Marcos                               Original
                  Fiscal Year 2006/2007             Actual      Approved       Estimated     Proposed     Percent of
                      Annual Budget               2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 177 - Streets

51100    Salaries                                    517,819       515,675        530,296      531,568         3.1%
51110    W/C Insurance                                39,940        24,946         25,311       26,256         5.3%
51120    Overtime                                     34,617        40,040         40,040       30,000       -25.1%
51190    Medicare                                      7,806         8,155          8,231        8,250         1.2%
51200    FICA                                         33,377        34,869         35,194       35,273         1.2%
51210    TMRS                                         78,197        80,029         80,779       80,960         1.2%
51220    Insurance                                    88,586        91,460         91,460       91,460         0.0%
51300    Stability Pay                                 6,024         6,680          6,692        7,368        10.3%

         Total Personnel Services                    806,366       801,854        818,003      811,135         1.2%

52110    Telephone                                     2,846         3,500          3,500        3,500        0.0%
52130    Equipment - Rent / Lease                     28,587        31,088         31,088       28,588       -8.0%
52160    Professional Services                           -             -              -          2,500      100.0%
52650    Repairs - Communication                       2,532         3,760          3,760        3,760        0.0%
52670    Street Maintenance                            2,095         4,000          4,000        4,000        0.0%
52680    Sidewalks                                    13,897        16,320         16,320       16,320        0.0%

         Total Contracted Services                    49,958        58,668         58,668       58,668         0.0%

53100    Asphalt                                      20,658           -              -         20,658       100.0%
53110    Overlay Asphalt                             170,498           -              -        125,000       100.0%
53111    Street Use/ Permit Fee Overlay Asphalt      124,878       137,700        137,700      140,000         1.7%
53140    Fuel and Lubrication                         39,123        30,635         30,635       51,617        68.5%
53150    Supplies - Other                              8,666         9,500          9,500       11,500        21.1%
53160    Supplies - Office                               243           400            400          400         0.0%
53170    Supplies - Data Processing                      -             -              -            -           0.0%
53300    Repairs - Vehicle / Equipment                44,524        42,000         42,000       43,800         4.3%
53340    Uniforms                                      7,292         8,300          8,300        8,800         6.0%
53800    Base Materials                               12,585        21,421         21,421       22,621         5.6%
53830    R C Tack Oil & Emulsion                       2,014         8,120          8,120        8,120         0.0%

         Total Materials and Supplies                430,481       258,076        258,076      432,516        67.6%

54340    Professional Development                        871         2,800          2,800        2,800         0.0%
54910    Safety Items                                  2,193         3,000          3,000        3,000         0.0%

         Total Other Charges                           3,064         5,800          5,800        5,800         0.0%

61050    Light Vehicles                                  -              -             -             -          0.0%
61060    Heavy Equipment                             112,005            -             -             -          0.0%
61100    Miscellaneous Equipment                      36,448            -             -             -

         Total Capital Outlay                        148,453            -             -             -          0.0%


Total Streets                                       1,438,321     1,124,398     1,140,547     1,308,119       16.3%




                                                    179
Equipment Services
Department Organization

                                     City Manager




                               Director of Public Works




                           Equipment Services Manager




  Inventory Maintenance Management                  Equipment Services Supervisor
             Technician



         Master Mechanic (3)                              Journeyman Mechanic                 Service Person




Mission Statement
To provide service to all of City of San Marcos departments and divisions that own equipment and vehicles by repairing
and maintaining vehicles and equipment through all phases of repairs to include rebuilding and replacing major
assemblies. We cover all repairs from tire repairs to major overhauls to vehicle renovation.




Expenditures by Category

                                                                  Original
                                          Actual                  Approved          Revised           Proposed
                                         2004-05                  2005-06           2005-06           2006-07
 Personnel Services                            352,890                  371,373         380,344                380,811
 Contracted Services                            14,473                   10,300          10,300                 10,300
 Materials and Supplies                         31,943                   27,850          27,850                 30,632
 Other Charges                                   7,183                    7,500           7,500                  7,400
 Capital Outlay                                 34,458                        0               0                      0

 Total                                         440,947                  417,023         425,994                429,142




                                                               180
Goals and Objectives

   •   Provide premier service support for “CORE” business objectives.
   •   Maintain high customer satisfaction rates.
   •   Provide “top-quality” technical craftsmanship.
   •   Increase technician’s billable hours productivity.
   •   Determine fleet availability for each vehicle/equipment class.
   •   Optimize operational efficiency through advanced technological systems.
   •   Develop quantifiable operational performance measures.
   •   Provide timely 24 / 7 service support and road call responses.
   •   Provide comprehensive technical training and certification opportunities for staff.
   •   Promote usage of alternative fuels and vehicles; emphasize fuel economy and pro-active clean air
       initiatives.
   •   Achieve a perfect safety record—“0” preventable accidents and “0” lost time injuries.

What We Accomplished in 2005-06

   •   Provided premier customer service and quality craftsmanship for over 425 vehicles/equipment
   •   Implemented written processes to perform functional scheduled preventative maintenance (PM) procedures
   •   Created PM tracking and notification process
   •   Fielded synthetic oil “long drain” program—augmented with oil sampling and analysis procedures
   •   Exceeded annual goal for vehicle/equipment uptime rate and technician’s billable hours productivity by 2%
   •   Mechanics completed 2 OEM, 4 vendor-sponsored, and 32 in-house training sessions
   •   Facilitated installation of Maximo Fleet Maintenance Module—complete maintenance management system
   •   Revamp/re-organize physical parts inventory; benchmark using inventory annual turn rates and parts fill
       rate; implemented corrective measures to rectify shortfalls; latest inventory revealed minor discrepancies
   •   Maintained a hazard free environment—proper containerization and handling of hazardous materials
   •   Improved operational safety conditions; “0” preventable accident and “0” lost time injuries

What We Plan to Accomplish in 2006-07

   •   Provide premier service support for “CORE” business objectives.
   •   Improve quality service assurance and operational reporting -- Maintain high customer satisfaction rates.
   •   Provide “top-quality” technical craftsmanship; increase vehicle availability rates and track re-works/returns.
   •   Institutionalize the Maximo Fleet Maintenance system to support multi-modal City operations.
   •    Formalize and implement a fully automated scheduled preventative maintenance program.
   •    Provide oversight on asset sourcing and specifications; control labor costs; and warranty recovery.
   •    Improve asset management and historical data; increase data analysis capabilities; and reporting.
   •   Expand current “inventory lift” program--vendors replace obsolete parts with useable parts of equal value.
   •   Develop in-place ASE certification program; fund technical training for specialized OEM training classes.
   •   Analyze cost effectiveness and vehicle maintenance impacts from introducing renewable energy technology
       i.e. by-pass oil filters; new alternative bi-fuel vehicle conversions kits; and fuel/emission retro-fit devices.
   •   Achieve a perfect safety record—“0” preventable accidents and “0” lost time injuries.




                                                     181
Performance Measures

                                                   Unit of    Actual   Estimated   Projected
                                                   Measure   2004-05    2005-06    2006-07
 PM Services Light Vehicles/Equipment               Each      145        191         230
 PM Services Heavy Vehicles                         Each       48         95         110
 Unscheduled Maintenance                            Each      902       1,175       1,340
 Work Orders Completed under 24 hours              Percent    N/A         67          69
 Return Rate (APWA benchmark is 2 percent)         Percent    1.25       1.09        1.05
 Work Orders Completed                              Each      1,540     2,025       2,245
 Technician Billable Hours                         Percent     84         86          87
 Average Equipment On-Line Availability            Percent     97         97         97.5




                                             182
            City of San Marcos                             Original
               Fiscal Year 2006/2007           Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget             2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 179 - Equipment Services

51100   Salaries                                238,965      254,270       261,487      262,974        3.4%
51110   W/C Insurance                             4,325        4,607         4,740        4,322       -6.2%
51120   Overtime                                  9,998        8,372         8,372        8,372        0.0%
51190   Medicare                                  3,668        3,852         3,961        3,967        3.0%
51200   FICA                                     15,683       16,468        16,934       16,964        3.0%
51210   TMRS                                     36,962       37,796        38,862       38,931        3.0%
51220   Insurance                                39,704       43,040        43,040       43,040        0.0%
51300   Stability Pay                             3,584        2,968         2,948        2,240      -24.5%
51310   Unemployment Comp. and Term. Leave          -            -             -            -          0.0%

        Total Personnel Services                352,890      371,373       380,344      380,811        2.5%

52100   Printing and Publications                   348          300           300          300       0.0%
52110   Telephone                                 1,664        2,000         2,000        2,000       0.0%
52130   Equipment - Rent / Lease                 11,843        7,000         7,000        5,000     -28.6%
52160   Professional Services                       -            -             -          2,000     100.0%
52650   Repairs - Communication                     618        1,000         1,000        1,000       0.0%
52660   Repairs - Building and Equipment            -            -             -            -

        Total Contracted Services                14,473       10,300        10,300       10,300        0.0%

53140   Fuel and Lubrication                      5,014        4,000         4,000        5,852       46.3%
53150   Supplies - Other                         15,891       11,550        11,550       12,180        5.5%
53160   Supplies - Office                           983          500           500          600       20.0%
53170   Supplies - Data Processing                  -          2,800         2,800        3,000        7.1%
53300   Repairs - Vehicle / Equipment             5,164        4,000         4,000        4,000        0.0%
53340   Uniforms                                  4,891        5,000         5,000        5,000        0.0%
53450   Supplies - Welding                          -            -             -            -          0.0%

        Total Materials and Supplies             31,943       27,850        27,850       30,632       10.0%

54140   Dues and Subscriptions                    1,785          500           500          300      -40.0%
54340   Professional Development                  3,431        4,500         4,500        4,600        2.2%
54910   Safety Items                              1,968        2,500         2,500        2,500        0.0%

        Total Other Charges                       7,183        7,500         7,500        7,400       -1.3%

61060   Heavy Equipment                             -            -             -            -          0.0%
61100   Miscellaneous Equipment                  34,458          -             -            -          0.0%

        Total Capital Outlay                     34,458          -             -            -          0.0%


Total Equipment Services                        440,948      417,023       425,994      429,142        2.9%




                                               183
184
Code Enforcement
Department Organization


                                                        City Manager




                                                        Fire Marshal




                      Assistant Fire Marshal                                 Code Enforcement Officer II




                                                                              Code Enforcement Officer I




Mission Statement
The mission of the Code Enforcement Department is to provide the highest quality service with the greatest efficiency.
The Code Enforcement Department strives to conduct comprehensive code enforcement that fosters voluntary
compliance, effects prompt correction of noted violations, and that is consistent, fair and equitable in its application.
Compliance is gained by focusing public education on the City's codes and state laws relevant to nuisance, zoning,
environment and consumer health standards.



Expenditures by Category


                                                           Original
                                       Actual              Approved               Revised               Proposed
                                      2004-05              2005-06                2005-06               2006-07
  Personnel Services                        42,203               208,314                275,131               275,235
  Contracted Services                        4,498                44,935                 44,935                43,672
  Materials and Supplies                    56,567                51,000                 51,000                50,000
  Other Charges                                767                 8,800                  8,800                 8,700
  Capital Outlay                            58,799                     0                      0                     0

  Total                                    162,834               313,049                379,866               377,607




                                                       185
Goals and Objectives

   •    The objective of the Marshals Office (Code Enforcement Department) is to provide a comprehensive
        approach to the unique enforcement issues within the City of San Marcos. Our diverse group is organized to
        deal with a wide spectrum of enforcement issues interrelated through the approach. Our objective is to
        engineer a solution to the various issues, educate the public, and enforce resolution where needed. All the
        while, we are striving to maintain a equitable approach to the problems of our community.

What We Accomplished in 2005-06

   •    Our newly created organization met several challenges in just a few months of operation. Two personnel
        were hired, trained and equipped while simultaneously enforcing a community issue related to “R-1”
        Occupancy Restrictions. Almost immediately after being created by the council, our staff had to respond to
        and manage two of the largest hurricanes and the largest land evacuation in history. While our division is
        still identifying the roles within the organization, our enforcement function has been wide spread between
        almost every department. The main goal of the unit was to maintain existing services in the areas of Fire
        Investigation, Public Education, and Engineering while dealing with the unique code issues related to our
        community.

What We Plan to Accomplish in 2006-07

   •    Our biggest goal for this next year is public education in all areas of responsibility. Code Enforcement, Fire
        Education and Emergency Management all present our staff the excellent opportunity to prevent issues
        before the manifest into community wide problems. We plan to maintain a vigilant approach to the
        occupancy restriction issues that tend to cause disruption in the neighborhoods within our city. This year,
        we are also assisting the Municipal Court with a Marshal position to facilitate the collection of outstanding
        warrant fees and fines.

Performance Measures

                                                            Unit of         Actual       Estimated       Projected
                                                            Measure        2004-05        2005-06        2006-07
 R-1 Violations                                              Cases            0              39              50
 Junk Vehicle Removed                                          #              0              450            200
 Complaints Originated by Officers                           Cases            0              305            400
 Investigations of Fires                                     Cases            4               7              5
 Education of Public (Fire Safety)                          Persons         9,867          11,301          12,000
 Education of Public (Code Enforcement)                     Persons           0              567           3,000
 Education of Public (Emergency Mgmt. Courses)              Persons          100             964           1,000




                                                      186
            City of San Marcos                                Original
               Fiscal Year 2006/2007             Actual      Approved      Estimated     Proposed    Percent of
                   Annual Budget               2004/2005     2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 124 - Code Enforcement Department

51100   Salaries                                   24,200       147,140       201,844      201,844       37.2%
51110   W/C Insurance                                 721           267           382          346       29.7%
51120   Overtime                                    2,823         5,000         5,000        5,000        0.0%
51190   Medicare                                      681         2,220         3,014        3,014       35.8%
51200   FICA                                        2,913         9,489        12,889       12,889       35.8%
51210   TMRS                                        6,866        21,778        29,582       29,582       35.8%
51220   Insurance                                   3,999        21,520        21,520       21,520        0.0%
51300   Stability Pay                                 -             900           900        1,040       15.6%
51310   Unemployment Comp. and Term. Leave            -             -             -            -          0.0%
51350   Car Allowance                                 -             -             -            -          0.0%

        Total Personnel Services                   42,203       208,314       275,131      275,235       32.1%

52010   Copier Rental                                 -           1,200         1,200        1,200        0.0%
52100   Printing and Publications                     278         1,200         1,200        1,200        0.0%
52110   Telephone                                     972        15,090        15,090       14,000       -7.2%
52130   Equipment - Rent / Lease                      499         6,000         6,000        6,000        0.0%
52160   Professional Services                       1,900        16,000        16,000       15,000       -6.3%
52390   Maintenance Contract - Office                 -             500           500          500        0.0%
52391   Information Technology Services               850         4,295         4,295        5,122       19.3%
52650   Repairs - Communication                       -             500           500          500        0.0%
52870   Towing Charges                                -             150           150          150        0.0%

        Total Contracted Services                   4,498        44,935        44,935       43,672       -2.8%

53120   Chemicals                                     -             400           400          -       -100.0%
53140   Fuel and Lubrication                        1,374        15,000        15,000       15,000        0.0%
53150   Supplies - Other                           49,461         6,000         6,000       11,000       83.3%
53160   Supplies - Office                             227         1,000         1,000        3,000      200.0%
53180   Postage                                         13          600           600        1,000       66.7%
53240   Repairs - Building                            -           6,000         6,000        6,000        0.0%
53300   Repairs - Vehicle / Equipment               3,001        12,000        12,000       12,000        0.0%
53340   Uniforms                                    2,491        10,000        10,000        2,000      -80.0%

        Total Materials and Supplies               56,567        51,000        51,000       50,000       -2.0%

54140   Dues and Subscriptions                         133          800           800          700      -12.5%
54340   Professional Development                       621        7,000         7,000        7,000        0.0%
54910   Safety Items                                    13        1,000         1,000        1,000        0.0%

        Total Other Charges                            767        8,800         8,800        8,700       -1.1%

61050   Light Vehicles                             58,799           -             -            -          0.0%
61100   Miscellaneous Equipment                       -             -             -            -          0.0%

        Total Capital Outlay                       58,799           -             -            -          0.0%


Total Code Enforcement                            162,833       313,049       379,866      377,607       20.6%




                                                 187
188
Environmental Health
Department Organization

                                                     City Manager



                                           Director of Environmental Health
                                                  and Animal Control


                   Department Secretary



                                                    Chief Sanitarian



                     Code Compliance Officer                                    Sanitarian




Mission Statement
The City of San Marcos Environmental Health Department is responsible for the promotion and protection of the public
health and general welfare of the citizens of San Marcos by protecting and enforcing quality standards and codes of
environmental health for the community. All programs and activities are aimed at environmental protection, health
education promotion and disease prevention.




Expenditures by Category

                                                         Original
                                     Actual              Approved              Revised              Proposed
                                    2004-05              2005-06               2005-06              2006-07
 Personnel Services                       288,154              297,238              305,357               301,835
 Contracted Services                       27,613               26,785               26,785                23,932
 Materials and Supplies                    11,839               22,181               22,181                23,988
 Other Charges                              2,991                2,950                2,950                 3,350
 Capital Outlay                            22,771                    0                    0                     0

 Total                                    353,368              349,154              357,273               353,105




                                                     189
Goals and Objectives

   •   Provide continued service of promotion and protection of the public health and general welfare of the
       citizens of San Marcos through enforcement of standards and codes of Environmental Health.
   •   To be successful managers of time, talent, and treasure that is aimed at environmental protection, health
       education, and disease prevention.

What We Accomplished in 2005-06

   •   Automated tracking of food service programs with Class system.
   •   Credit card payment on fees.
   •   Computer generated food handler certificates.
   •   Revisions to department web page.
   •   6 Neighborhood Cleanups.
   •   Provided 25 dumpsters to citizens through out the city for clean up projects.
   •   Inspection and permitting of 410 food service operations
   •   Collection of 240 river samples as part of river monitoring program.
   •   Programs manage 660 OSSF. (septic systems)
   •   Purchase of tablet lap-tops for use during inspections. (Code Compliance and Food Service.)

What We Plan to Accomplish in 2006-07

   •   Six Neighborhood Cleanup events.
   •   10 special assistance cleanup events through CDBG funds.
   •   Inspection of every food service operation according to City code.
   •   Continue to monitor SM River.
   •   Add Monthly inspections scores to web page.

Performance Measures


                                                          Unit of         Actual        Estimated      Projected
                                                          Measure        2004-05         2005-06       2006-07
 Food Establishment Inspections                            # Year           770            850           1,400
 Food Handler Training                                    # Trained         1,890         2,100          2,200
 Food Service Permits                                   # Permitted         378            410            445
 River Samples Collected                                # Collected         216            264            264
                                                          # Acres
 Vector Control                                                             512            600            600
                                                          Treated
 Septic System/Grease Trap Inspections                     # Year           565            590            615
 Day Care Centers/Group Homes Inspections                  # Year            55            58              60
 Code Compliance                                        # Of Cases          685            700            720
 Neighborhood Cleanups (Large And Mini)                    # Year            31            53              11




                                                    190
            City of San Marcos                             Original
               Fiscal Year 2006/2007           Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget             2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 125 - Environmental Health

51100   Salaries                                211,973      216,035       222,632      219,606        1.7%
51110   W/C Insurance                             1,033          746           772          698       -6.4%
51120   Overtime                                  1,480          -             -            -          0.0%
51190   Medicare                                  3,125        3,214         3,312        3,268        1.7%
51200   FICA                                     13,364       13,740        14,164       13,977        1.7%
51210   TMRS                                     30,600       31,023        31,997       31,566        1.8%
51220   Insurance                                21,199       26,900        26,900       26,900        0.0%
51300   Stability Pay                             1,780        1,980         1,980        2,220       12.1%
51310   Unemployment Comp. and Term. Leave          -            -             -            -          0.0%
51350   Car Allowance                             3,600        3,600         3,600        3,600        0.0%

        Total Personnel Services                288,154      297,238       305,357      301,835        1.5%

52100   Printing and Publications                 1,068        1,500         1,500        1,500        0.0%
52110   Telephone                                 2,745        2,450         2,450        2,450        0.0%
52160   Professional Services                    23,800       18,000        18,000       18,000        0.0%
52391   Information Technology Services             -          4,835         4,835        1,982      -59.0%

        Total Contracted Services                27,613       26,785        26,785       23,932      -10.7%

53120   Chemicals                                   -             60            60          160     166.7%
53140   Fuel and Lubrication                      3,282        2,800         2,800        3,968      41.7%
53150   Supplies - Other                          5,805       15,671        15,671       16,110       2.8%
53160   Supplies - Office                           532          650           650          750      15.4%
53170   Supplies - Data Processing                  204          200           200          200       0.0%
53180   Postage                                   1,465        1,500         1,500        1,500       0.0%
53300   Repairs - Vehicle / Equipment               213          650           650          650       0.0%
53340   Uniforms                                    338          650           650          650       0.0%

        Total Materials and Supplies             11,839       22,181        22,181       23,988        8.1%

54140   Dues and Subscriptions                      300          350           350          350        0.0%
54340   Professional Development                  2,691        2,600         2,600        3,000       15.4%

        Total Other Charges                       2,991        2,950         2,950        3,350       13.6%

61100   Miscellaneous Equipment                  22,771          -             -            -          0.0%

        Total Capital Outlay                     22,771          -             -            -          0.0%


Total Environmental Health                      353,369      349,154       357,273      353,105        1.1%




                                               191
Animal Services
Department Organization

                                                     City Manager


                                               Director of Environmental
                                                         Health
                                                 and Animal Services

                                                   Chief Sanitarian



                                                   Animal Services
                                                      Manager


                              Animal Services Clerk



                                                    Chief Animal
                                                   Services Officer


                             Animal Services Officer             Animal Services Officer



     Animal Shelter                 Animal Shelter                  Animal Shelter                Animal Shelter
      Technician                     Technician                      Technician                    Technician




Mission Statement
The Animal Services Division’s mission is to protect the citizens of San Marcos from zoonosis diseases and to protect
tangible property from animal related damage and to offer the public a State licensed quarantine facility for the
quarantine of suspected rabies cases. The City of San Marcos Animal Shelter is a full service shelter with 24 dog runs,
euthanasia facilities, cat holding facilities, quarantine runs for dogs and an isolation room for quarantine cats. These
facilities are coordinated and maintained 365 days per year. The Animal Services Division provides response calls for
service involving stray animals, non-domestic or wild animals, dead or injured animals, animal related bite cases, and
cruelty and neglect investigations.




                                                       192
Expenditures by Category

                                                         Original
                                     Actual              Approved               Revised              Proposed
                                    2004-05              2005-06                2005-06              2006-07
 Personnel Services                       253,379              265,297               270,466               332,383
 Contracted Services                       26,312               29,450                29,450                35,409
 Materials and Supplies                    34,474               35,829                35,829                55,800
 Other Charges                              1,605                2,450                 2,450                 4,250
 Capital Outlay                                 0                    0                     0                     0

 Total                                    315,770              333,026               338,195               427,842



Goals and Objectives

   •     To provide assistance to the citizens of San Marcos in a manner that protects the health and safety of both
         the citizens and their pets.
   •     In order to provide this service we will continue to manage all resources placed in our trust at the highest
         possible level.

What We Accomplished in 2005-06

   •     Developed a new S.O.P. for the use of injectable euthanasia drug over carbon-monoxide for euthanizing
         animals.
   •     Increased euthanasia by injection.
   •     Developed a partner ship with the veterinarians of San Marcos for spaying and neutering pets as part of the
         adoption process.
   •     Investigate Trap-neuter-return possibilities within the city.
   •     Start task force for reviewing and changing city animal codes.
   •     Held a low cost rabies clinic.

What We Plan to Accomplish in 2006-07

   •     Implement spay and neuter plan at shelter.
   •     Reduce euthanasia by carbon-monoxide.
   •     Expand shelter to accommodate new euthanasia room and proposed sheltering agreement with Hays
         County.
   •     Implement changes to animal code suggested by task force.
   •     Conduct low cost Rabies clinic.




                                                      193
Performance Measures


                                                         Unit of       Actual   Estimated   Projected
                                                         Measure      2004-05    2005-06    2006-07
                                                         # Of Calls
 Calls For Service                                                    13,123     15,200      15,500
                                                          Per Year
                                                          # Of
 Live Dogs, Cats, And Other Brought Into Shelter                       2,969     2,450       5,000
                                                         Animals
                                                          # Of
 Dead Animal Pick-Up                                                   304        276         300
                                                         Animals
                                                          # Of
 Animals Euthanized – Not adoptable                                    1,382     1,084       2,300
                                                         Animals
                                                          # Of
 Animals Adopted                                                       542        576        1,200
                                                         Animals
                                                          # Of
 Animals Vaccinated At Rabies Clinic                                    90        150         150
                                                         Animals
                                                          # Of
 Animals Returned to Owners/Released/Transferred                       502        540        1,100
                                                         Animals
 Bite Cases Worked                                   # Of Cases         50         80          80
                                                           # Of
 Visitors To The Shelter                                              11,456     14,700      16,000
                                                          Visitors




                                                   194
            City of San Marcos                             Original
               Fiscal Year 2006/2007           Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget             2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 126 - Animal Services

51100   Salaries                                167,599      181,398       185,678      228,201       25.8%
51110   W/C Insurance                             2,071        2,230         2,397        2,661       19.3%
51120   Overtime                                 16,575        9,134         9,134        9,134        0.0%
51190   Medicare                                  2,600        2,787         2,850        3,466       24.4%
51200   FICA                                     11,116       11,917        12,186       14,822       24.4%
51210   TMRS                                     23,957       23,867        24,426       29,316       22.8%
51220   Insurance                                28,142       32,280        32,280       43,040       33.3%
51300   Stability Pay                             1,321        1,684         1,515        1,744        3.6%
51310   Unemployment Comp. and Term. Leave          -            -             -            -

        Total Personnel Services                253,379      265,297       270,466      332,383       25.3%

52100   Printing and Publications                   291          300           300          300       0.0%
52110   Telephone                                 4,743        4,000         4,000        4,580      14.5%
52160   Professional Services                    20,151       23,500        23,500       25,000       6.4%
52390   Maintenance Contract - Office             1,128        1,500         1,500        2,000      33.3%
52391   Information Technology Services             -            -             -          3,379     100.0%
52650   Repairs - Communication                     -            150           150          150       0.0%

        Total Contracted Services                26,312       29,450        29,450       35,409       20.2%

53120   Chemicals                                 2,905        3,000         3,000        6,000     100.0%
53140   Fuel and Lubrication                     11,371       14,000        14,000       14,000       0.0%
53150   Supplies - Other                         13,046       11,000        11,000       22,900     108.2%
53160   Supplies - Office                           608        1,129         1,129        2,600     130.3%
53240   Repairs - Building                        1,598        1,700         1,700        3,000      76.5%
53300   Repairs - Vehicle / Equipment             2,204        2,000         2,000        2,100       5.0%
53340   Uniforms                                  2,742        3,000         3,000        5,200      73.3%

        Total Materials and Supplies             34,474       35,829        35,829       55,800       55.7%

54140   Dues and Subscriptions                      220          250           250          250        0.0%
54340   Professional Development                  1,385        2,200         2,200        4,000       81.8%

        Total Other Charges                       1,605        2,450         2,450        4,250       73.5%

61100   Miscellaneous Equipment                      -           -             -            -          0.0%

        Total Capital Outlay                         -           -             -            -          0.0%


Total Animal Services                           315,769      333,026       338,195      427,842       28.5%




                                               195
196
Library
Department Organization

                                              City Manager




                                             Library Director




      Librarian III                         Librarian III                         Librarian III
    (Patron Services)                   (Technical Services)                  (Community Services)




                       Library Clerk I (5)                        Librarian I                         Librarian I
                         (Circulation)                       (Cataloging & Local                (Children’s Librarian)
                                                                   History)


                      Shelving Supervisor                    Library Assistant (4)                   Librarian I
                                                                                                   (Adult Services
                                                                                                     Librarian)


                        Library Page (6)                                                            Library Clerk
                                                                                                  (Children’s Clerk)




Mission Statement
OUR MISSION IS to improve the quality of life in San Marcos by providing our citizens with free, convenient access to
books, computers, programs, facilities, and services which will fulfill their educational, recreational, and informational
needs.




                                                         197
Expenditures by Category

                                                          Original
                                      Actual              Approved               Revised              Proposed
                                     2004-05              2005-06                2005-06              2006-07
 Personnel Services                       828,326               853,733               871,363               874,527
 Contracted Services                        5,466                36,087                36,087                33,684
 Materials and Supplies                    39,042                26,959                26,959                28,498
 Other Charges                             12,651                13,720                13,720                13,994
 Capital Outlay                           111,063               111,000               111,000               111,000

 Total                                    996,548             1,041,499             1,059,129             1,061,704



Goals and Objectives

   •     To provide exemplary customer service throughout the library operation.
   •     To acquire, organize, and maintain an outstanding collection of library materials designed to meet the
         informational, recreational and educational needs of the community.
   •     To serve as an information gateway by providing research assistance, and access to the Internet, TexShare
         databases, and the resources of other libraries.
   •     To help bridge the “digital divide” by providing the community with access to computers, the Internet, and
         instruction in basic computer skills.
   •     To serve as a center for informal adult learning by offering programs such as GED, ESL, and language
         classes; concerts; and lectures.
   •     To nurture the children and youth of our community by helping them discover the joy of reading and
         learning.
   •     To collect, preserve and make available the history of our unique community.
   •     To maintain comfortable, attractive reading rooms and meeting rooms for citizen use.
   •     To continuously improve our ability to serve the community through active fund-raising, staff development, and
         creative partnerships with other organizations.

What We Accomplished in 2005-06
   PATRON SERVICES:
   • Over 373,000 people visited the library, an average of over 1,000 people per day.
   • 6,000 new borrowers signed up for library cards.
   • Customers checked out over 398,000 items from the collection.
   • Our reference librarians provided research assistance to over 35,000 patrons.
   • Public Internet terminals were used over 120,000 times.
   • We issued 132 TexShare cards and provided 650 interlibrary loans to our patrons.

   COLLECTION DEVELOPMENT:
   • Approximately 6,000 new items were selected, ordered, cataloged, and processed for the library collection.
   • 2,500 lost, damaged, and out-of-date items were withdrawn from the collection.
   • Received a $6,000 Loan Star grant to build our collection of books on CD & continue our participation in
      the TexShare database program.
   • Continued our project of transferring our local history clipping files to acid-free paper.
   • Added 9,000 electronic books to the library’s bibliographic data base.


   COMMUNITY EDUCATION & OUTREACH:

                                                      198
   •   Attendance topped 28,000 at storytimes, puppet shows, craft programs, and other library-sponsored
       activities for children.
   •   Over 3,800 people attended computer classes, language classes, concerts, the tax aid program and other
       library-sponsored activities for adults.
   •   Adults received 8,200 hours of free literacy, GED, and ESL tutoring at the library.
   •   Our meeting rooms were used by community organizations 427 times during the year.
   •   We solicited and received a $1,000 programming grant from Grande which will be used for special summer
       programs for children.

   LIBRARY DEVELOPMENT:
   • The library purchased and implemented a new PC Reservation system and LPT One print vending system.
   • We are now able to offer wireless Internet access to patrons who bring their own laptop to the library.
   • The Friends of the Library purchased ten laptop computers for the library to use for computer classes and
       tax aid.
   • Using funds from the city’s capital outlay program, we have renovated the central atrium of the library.
   • Volunteers worked over 8,000 hours at the library this year. We hosted three volunteer appreciation events.
   • We implemented new out-of-county library card fees and test proctoring fees.
   • For the sixth consecutive year, the library received the highest satisfaction ranking of any service in the
       city’s annual Community Outreach Survey.

What We Plan to Accomplish in 2006-07

   •   Create a “moveable” computer lab which will utilize our new laptop computers and the wireless network. It
       will be used for tax aid and computer classes.
   •   Add a new part-time library assistant position to our staff to support our fund-raising activities and donor
       recognition programs.
   •   Continue reviewing library policies and procedures in order to take advantage of the strengths of our new
       library automation system.
   •   Select, order, and catalog approximately 6,000 new items for the library collection.
   •   Continue identifying and withdrawing older, little-used materials from the collection in order to conserve
       stack space.
   •   Continue using volunteers to provide daycare storytimes, computer classes, tax aid services, and other
       library programs.
   •   Improve the library web pages by providing better links to new books, online forms, and bibliographies.
   •   Begin digitizing local history photographs and making them available on the Internet.
   •   Prepare and submit a long range plan to Texas State Library in order to meet the new requirements for
       system membership.
   •   Continue using the municipal court system to cut down on the rate of non-returned library materials.




                                                    199
Performance Measures

                                                               Unit of    Actual   Estimated   Projected
                                                               Measure   2004-05    2005-06    2006-07
 Customers visit the library on a regular basis                Visitor
 because it is a pleasant place with a good collection         Count     366,341   373,000     380,460
 and convenient hours of operation.
                                                             Items
 The library collection is well used because it is         Borrowed
 stocked with materials that our citizens want and         From The      390,567   398,000     405,000
 need.                                                     Collection.
 Users of the library receive friendly, helpful            Reference
 assistance with their research and computer               Assistance    35,629     35,000      35,000
 questions.                                                 Provided
                                                             Use Of
 The library provides citizens with access to the            Public      115,789   120,000     125,000
 Internet and other important computer applications.       Computers
 The library takes an active role in providing             Children’s
 educational and recreational activities for children in    Program      27,845     28,000      28,500
 our community.                                            Attendance
                                                            Adult &
 The library provides adults with opportunities for         Tutoring     11,608     12,000      12,500
 informal lifelong learning.                               Attendance
                                                           Number Of
 The library provides our citizens with opportunities       Volunteer
                                                             Hours        8,021     8,000       8,000
 to be involved in meaningful volunteer work.
                                                             Worked
                                                           Cataloged
 The library collection is up-to-date and well              Volumes
 organized. It is well stocked with materials that          At Year’s    132,435   136,000     140,000
 meet the needs of our growing community.                      End
                                                              New
 The library is used by a large segment of the San         Borrowers      5,534     6,000       6,500
 Marcos Community.                                         Reg that Yr




                                                         200
            City of San Marcos                             Original
                Fiscal Year 2006/2007          Actual     Approved       Estimated     Proposed     Percent of
                    Annual Budget            2004/2005    2005/2006     2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 130 - Library

51100   Salaries                                602,038      610,673        626,280      627,592         2.8%
51110   W/C Insurance                             1,414        1,122          1,207        1,103        -1.7%
51120   Overtime                                    -            -              -            -           0.0%
51190   Medicare                                  8,615        9,054          9,286        9,306         2.8%
51200   FICA                                     36,838       38,708         39,708       39,791         2.8%
51210   TMRS                                     81,121       83,676         85,884       85,691         2.4%
51220   Insurance                                86,827       96,840         96,840       96,840         0.0%
51300   Stability Pay                             7,873       10,060          8,558       10,604         5.4%
51310   Unemployment Comp. and Term. Leave          -            -              -            -
51350   Car Allowance                             3,600        3,600          3,600        3,600         0.0%

        Total Personnel Services                828,326      853,733        871,363      874,527         2.4%

52100   Printing and Publications                 1,177        1,220          1,220        1,244         2.0%
52110   Telephone                                   890        1,000          1,000        1,020         2.0%
52170   Microfilming                              1,370        1,770          1,770        1,805         2.0%
52391   Information Technology Services             -         30,467         30,467       27,952        -8.3%
52722   Book Bindery Services                     2,030        1,630          1,630        1,663         2.0%

        Total Contracted Services                 5,466       36,087         36,087       33,684        -6.7%

53150   Supplies - Other                         18,939        7,274          7,274        7,419         2.0%
53160   Supplies - Office                        11,460       11,385         11,385       11,613         2.0%
53180   Postage                                   7,703        6,800          6,800        7,936        16.7%
53300   Repairs - Vehicle / Equipment               941        1,500          1,500        1,530         2.0%

        Total Materials and Supplies             39,042       26,959         26,959       28,498         5.7%

54130   Periodicals                              10,940       11,470         11,470       11,699         2.0%
54320   Mileage Reimbursement                       528          650            650          663         2.0%
54340   Professional Development                  1,182        1,600          1,600        1,632         2.0%

        Total Other Charges                      12,651       13,720         13,720       13,994         2.0%

61090   Books and Materials                     111,063      111,000        111,000      111,000         0.0%
61100   Miscellaneous Equipment                     -            -              -            -           0.0%

        Total Capital Outlay                    111,063      111,000        111,000      111,000         0.0%


Total Library                                   996,548     1,041,499     1,059,129     1,061,704        1.9%




                                               201
202
Parks and Recreation
Department Organization
                                                                 City Manager




                                                              Parks and Recreation
                                                                    Director



                                                              Parks and Recreation
                                                               Assistant Director



                                                 Department                     Facility/Events
                                                  Secretary                      Coordinator



              Facilities Manager          Athletics Program                          Recreation Programs   Watershed Protection
                                              Manager                                     Manager           Program Manager



              Parks and Facility                        Athletics Program            Recreation Programs
             Grounds Supervisor                           Coordinator                    Coordinator



  Crew Leader (3)          Facility Inspector           Athletics Program
                                                            Specialist



               Equipment Operator                        Rio Vista Pool
                     II (6)                                Positions



               Equipment Operator                     Facility Maintenance
                     I (3)                                   Worker




Mission Statement
The Parks and Recreation Division’s mission is to provide leisure opportunities for all citizens of San Marcos. These
opportunities are best met by maintaining and developing the parks and facilities in an attractive, accessible and safe
condition.



                                                        203
Expenditures by Category

                                                          Original
                                      Actual              Approved               Revised               Proposed
                                     2004-05              2005-06                2005-06               2006-07
 Personnel Services                      1,111,810             1,151,632             1,155,168             1,260,598
 Contracted Services                       143,219               159,650               159,650               153,490
 Materials and Supplies                    212,610               177,600               177,600               183,809
 Other Charges                              16,029                 9,800                 9,800                 9,800
 Capital Outlay                            139,587                     0                     0                     0

 Total                                   1,623,255             1,498,682             1,502,218             1,607,697


Goals and Objectives
   •     To provide a wide variety of Leisure time opportunities for the citizens of San Marcos.
   •     To provide parks and facilities that is well maintained, safe and accessible for the citizens of San Marcos.
   •     To maintain the current level of services provided to Youth, Senior Citizen, and Special Populations by
         providing a variety of quality programs.
   •     To maintain our relationship with Texas State University – Recreation Administration Division by
         providing opportunities for class projects and a work site for fieldworks and internships.
   •     To plan a celebration to commemorate the 10th Anniversary of the opening of the San Marcos Activity
         Center.
   •     To continue plant propagation program for the Nature center.
   •     To provide outdoor recreation and environmental educational programs for adults and youth within the
         community.
   •     To increase community awareness of our local ecology, resource conservation, and the importance of
         preserving the San Marcos and Blanco River their watersheds.
   •     To provide hands-on outdoor learning programs at the Nature center.

What We Accomplished in 2005-06
   •     Over 100,000 locals and tourists utilized the city park system.
   •     Maintained the current level of services provided to Youth, Senior Citizen, and Special Populations.
   •     Coordinated the first extended travel group trip to Branson, MO.
   •     Completed a new “Parks Guide”.
   •     Created and printed a new version of the department “Activity Guide”.
   •     Worked with the Arts Commission to develop new guidelines for arts funding and an Art in Public Places
         Policy and Procedure Manual.
   •     Hosted two Amateur Softball Association State tournaments (Women’s & Girls 10 & under “C”)
   •     Conducted nature tours and seminars to introduce sustainable techniques, wild scape practices and low
         impact development for commercial and residential properties to over 200 people.
   •     Nature center developed a spring break camp for local children interested in nature.

What We Plan to Accomplish in 2006-07
   •     To maintain current level of services.
   •     To continue to improve customer satisfaction with parks, facilities and programs.
   •     To continue to improve the park systems for citizens of San Marcos.
   •     Maintain the current level of service for youth, senior citizen, and special populations.
   •     Assist the Arts Commission with the process of securing permanent art for the City of San Marcos.
   •     To continue to evaluate the efficiency of department and to find innovative ways of conducting business.




                                                       204
Performance Measures

                                                            Unit of     Actual    Estimated   Projected
                                                            Measure    2004-05     2005-06    2006-07
                                                         # of acres      256       792.3        919
 Parkland
                                                         # of parks      15         30          36
                                                            # of
                                                         programs         5          7           7
 Youth Recreation Programs
                                                            # of
                                                        participants    1,049      2,050       2,050
                                                            # of
                                                         programs         6          6           6
 Special Events Programs
                                                            # of
                                                        participants    6,600      7,600       7,600
                                                            # of
                                                          sessions        5          7           7
 Special Populations Programs
                                                            # of
                                                        participants    1,511      1,950       2,250
                                                         # of dates       84         83          95
 Senior Programs/Travel Group                               # of
                                                        participants    3,565      3,600       4,332
                                                            # of
 Registrations Processed for Youth Sports
                                                        participants
 Organizations
                                                         registered     1,707      1,700       1,700
                                                            # of
 Facility Rental Bookings – All Facilities               bookings       2,956      2,900       2,295
                                                          Revenue      $150,845   $145,000    $150,000
                                                            # of
 Spring Break Day Camp                                  participants     N/A         16          25
                                                          Revenue                  $2,000      $3,125
                                                            # of
 Summer Day Camp – 3 Sessions                           participants     N/A         75          75
                                                          Revenue                  $9,375      $9,375
 Fall Plant Sale                                            Revenue     $1,500     $1,600      $1,800
                                                            # of
 Wildflower Fiesta Gardening Festival                   participants     100        250         400
                                                         Revenue        $1,000     $2,000      $3,000
                                                            # of
 Workshops, Seminars and Tours                          participants     150        170         200
                                                         Revenue        $3,500     $4,000      $5,250
                                                            # of
 Youth Groups and School Visits
                                                        participants     400        600         900
 Native Plant Sales, Fundraisers and Gazebo Rentals         Revenue      N/A        $500        $500

 Community Gardens                                          # pounds     N/A        N/A         100




                                                      205
            City of San Marcos                              Original
               Fiscal Year 2006/2007           Actual      Approved       Estimated     Proposed     Percent of
                   Annual Budget             2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 135 - Parks and Recreation

51100   Salaries                                805,756       818,748        825,320      898,491         9.7%
51110   W/C Insurance                             9,762        10,956          7,496       12,075        10.2%
51120   Overtime                                 29,528        40,943         40,943       40,943         0.0%
51190   Medicare                                 11,983        12,670         12,759       13,825         9.1%
51200   FICA                                     51,237        54,092         54,545       59,094         9.2%
51210   TMRS                                    102,850       103,607        104,489      114,934        10.9%
51220   Insurance                                87,382        96,840         96,840      107,600        11.1%
51300   Stability Pay                             7,912         8,376          7,376        8,236        -1.7%
51310   Unemployment Comp. and Term. Leave          -             -              -            -           0.0%
51350   Car Allowance                             5,400         5,400          5,400        5,400         0.0%

        Total Personnel Services               1,111,810     1,151,632     1,155,168     1,260,598        9.5%

52100   Printing and Publications                 2,126         6,000          6,000        6,000         0.0%
52110   Telephone                                11,571         9,000          9,000        9,000         0.0%
52130   Equipment - Rent / Lease                 28,717        30,000         30,000       30,000         0.0%
52160   Professional Services                    23,006        29,500         29,500       29,500         0.0%
52390   Maintenance Contract - Office             1,498         1,600          1,600        1,600         0.0%
52391   Information Technology Services             -          14,300         14,300       14,540         1.7%
52650   Repairs - Communication                     114           250            250          250         0.0%
52910   Officials                                50,556        40,000         40,000       30,000       -25.0%
52920   Softball Field                            4,955         5,000          5,000        5,000         0.0%
52930   Senior Programs                          20,674        24,000         24,000       27,600        15.0%

        Total Contracted Services               143,219       159,650        159,650      153,490        -3.9%

53120   Chemicals                                 5,888         7,000          7,000        7,000         0.0%
53121   Chemicals - Pools                         7,714        12,000         12,000       12,000         0.0%
53140   Fuel and Lubrication                     11,304        12,000         12,000       11,309        -5.8%
53150   Supplies - Other                         82,908        44,100         44,100       51,000        15.6%
53160   Supplies - Office                         7,046         6,000          6,000        6,000         0.0%
53180   Postage                                   7,307         8,000          8,000        8,000         0.0%
53240   Repairs - Building                       68,604        65,000         65,000       65,000         0.0%
53260   River Cleanup                             2,495         2,500          2,500        2,500         0.0%
53300   Repairs - Vehicle / Equipment            16,082        17,000         17,000       17,000         0.0%
53340   Uniforms                                  3,262         4,000          4,000        4,000         0.0%

        Total Materials and Supplies            212,610       177,600        177,600      183,809         3.5%

54140   Dues and Subscriptions                    1,823         2,600          2,600        2,600         0.0%
54340   Professional Development                 12,288         5,200          5,200        5,200         0.0%
54910   Safety Items                              1,918         2,000          2,000        2,000         0.0%

        Total Other Charges                      16,029         9,800          9,800        9,800         0.0%

61050   Light Vehicles                           72,748           -              -            -           0.0%
61060   Light Vehicles                           14,082           -              -            -           0.0%
61100   Miscellaneous Equipment                  52,757           -              -            -           0.0%
        Total Capital Outlay                    139,587           -              -            -           0.0%


Total Parks and Recreation                     1,623,256     1,498,682     1,502,218     1,607,697        7.3%




                                               206
Activity Center
Department Organization

                                                         City Manager




                                                    Parks and Recreation
                                                          Director



                                                    Parks and Recreation
                                                     Assistant Director



                                                       Athletics Program
                                                           Manager



    Aquatics Program                 Athletics Program                  Activity Center               Facility Maintenance
      Coordinator                      Coordinator                      Attendants (6)                       Worker


 Activity Center Swimming            Athletics Program
       Pool Positions                    Specialist




Mission Statement
The mission of the Activity Center is to provide leisure activities in athletics, aquatics and fitness for the citizens of San
Marcos. The Activity Center will provide a meeting facility to accommodate a variety of needs for the community.
These activities and opportunities will be delivered at the highest level possible with the resources provided.



Expenditures by Category

                                                             Original
                                        Actual               Approved                 Revised               Proposed
                                       2004-05               2005-06                  2005-06               2006-07
  Personnel Services                         365,022                382,399                386,794                 386,397
  Contracted Services                          8,794                 26,900                 26,900                  26,900
  Materials and Supplies                      87,556                 78,700                 78,700                  80,920
  Other Charges                                1,167                  3,500                  3,500                   3,500
  Capital Outlay                                   0                      0                      0                       0

  Total                                      462,539                491,499                495,894                 497,717



                                                          207
Goals and Objectives

   •   To provide high quality Athletic/Aquatics and Activity Center programs for the citizens of San Marcos.
   •   Establish youth life guarding program.
   •   Increase memberships/facility usage1) renewals, 2) customer input, surveys and evaluations.
   •   Better marketing – info through e-mails, mail-outs, presentations etc.
   •   Volunteers 1) use of retired members, 2) CSR workers 3) better usage and cooperation with Texas State.
   •   Sponsorships – get local businesses involved with sponsoring programs.
   •   Offer safe, well-maintained facility: upkeep of equipment, facility inspections, and daily inspections.
   •   Customer Service: 1) positive interactions with public 2) staff development.
   •   Continue to develop Adaptive Aquatic program with Texas State.
   •   Replace and maintain fitness equipment.

What We Accomplished in 2005-06

   •   Offered 10 Youth programs for ages 3-12.
   •   Offered 16 Adult programs.
   •   Increase in all programs.
   •   Completed Phase I and II of Rio Vista Pool Renovation.
   •   Offered 12 Swim Lesson sessions in Natatorium – 4 adult sessions.
   •   Assisted SMYBSA and Youth Soccer with board duties. Handled player and coaches registration for both.
   •   Maintained and oversaw contracts with water aerobics contractor and administered private swim team
       contract.
   •   Hosted two Amateur Softball Association State Tournaments.
   •   Coordinated Adaptive Swim program with Texas State.
   •   Replaced three pieces of fitness equipment.

What We Plan to Accomplish in 2006-07

   •   Continue to improve Activity Center operations.
   •   Continue to offer quality programs.
   •   Continue to increase participation in programs.
   •   Provide new and improved Aquatic programs.
   •   Form TAAF track team.
   •   Form Special Olympic team.
   •   Increase participation in TAAF programs.
   •   Host two ASA State Tournaments.




                                                   208
Performance Measures
                                   Unit of     Actual   Estimated   Projected
                                   Measure    2004-05    2005-06    2006-07
                                   # of
                                Programs        7          10          11
 Youth Athletics
                                   # of
                               Participants   14,500     15,000      16,500
                                   # of
                                Programs        15         16          16
 Adult Athletics
                                   # of
                               Participants   31,000     33,000      35,000
                                   # of
                                Programs        12         14          16
 Aquatics Programs
                                   # of
                               Participants    1,700     1,900       2,100
                                   # of
 Memberships
                                members        1,980     2,300       2,600
                                 Average
 Non-member facility usage
                                per month      7,500     8,000       8,750




                             209
             City of San Marcos                            Original
                Fiscal Year 2006/2007          Actual     Approved      Estimated     Proposed    Percent of
                    Annual Budget            2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 136 - Activity Center

51100   Salaries                                256,615      259,545       263,805      263,823        1.6%
51110   W/C Insurance                             3,586        4,824         4,893        4,452       -7.7%
51120   Overtime                                  4,673        6,645         6,645        6,645        0.0%
51190   Medicare                                  3,758        3,881         3,936        3,936        1.4%
51200   FICA                                     16,070       16,590        16,825       16,826        1.4%
51210   TMRS                                     29,387       30,338        30,645       30,647        1.0%
51220   Insurance                                50,439       59,180        59,180       59,180        0.0%
51300   Stability Pay                               495        1,396           866          888      -36.4%
51310   Unemployment Comp. and Term. Leave          -            -             -            -

        Total Personnel Services                365,022      382,399       386,794      386,397        1.0%

52110   Telephone                                 2,751        3,700         3,700        3,700        0.0%
52130   Equipment - Rent / Lease                  2,914        3,200         3,200        3,200        0.0%
52160   Professional Services                       534       15,000        15,000       15,000        0.0%
52390   Maintenance Contract - Office             2,595        5,000         5,000        5,000        0.0%

        Total Contracted Services                 8,794       26,900        26,900       26,900        0.0%

53120   Chemicals                                 2,815        5,000         5,000        5,000        0.0%
53150   Supplies - Other                         49,909       43,700        43,700       43,700        0.0%
53160   Supplies - Office                         4,958        5,000         5,000        5,000        0.0%
53240   Repairs - Building                       29,874       25,000        25,000       27,220        8.9%

        Total Material and Supplies              87,556       78,700        78,700       80,920        2.8%

54400   Team Registrations                        1,167        3,500         3,500        3,500        0.0%

        Total Other Charges                       1,167        3,500         3,500        3,500        0.0%


61100   Miscellaneous Equipment                      -           -             -            -          0.0%

        Total Capital Outlay                         -           -             -            -          0.0%


Total Activity Center                           462,539      491,499       495,894      497,717        1.3%




                                               210
Facilities and Grounds
Department Organization

                                             City Manager



                                    Parks and Recreation Director



                                    Parks and Recreation Assistant
                                               Director


                                          Facilities Manager



                                      Parks and Facility Grounds
                                              Supervisor


                                            Crew Leader (3)



   Equipment Operator II (6)           Equipment Operator I (3)          Facility Maintenance Inspector




Mission Statement
The mission of the Facilities and Grounds Division is the administration and implementation of a comprehensive
maintenance program of all City owned facilities, public grounds, easements, right of ways, and drainage areas.




Expenditures by Category

                                                      Original
                                   Actual             Approved              Revised             Proposed
                                  2004-05             2005-06               2005-06             2006-07
 Personnel Services                    191,157                 207,874           212,069              251,572
 Contracted Services                   534,907                 574,250           574,250              595,250
 Materials and Supplies                145,999                 147,200           147,200              161,773
 Other Charges                               0                       0                 0                    0
 Capital Outlay                              0                       0                 0                    0

 Total                                 872,063                 929,324           933,519            1,008,595


                                                   211
Goals and Objectives

   •    Maintain all City Facilities in the most effective way possible
   •    Continue to build on facility access and security network.
   •    Continue to build facility HVAC control network. (Energy savings)
   •    Maintain all city facilities in the most effective way.
   •    Monitor and evaluate all city maintenance contracts.
   •    Maintain current level of services.
   •    Continue ADA transition plans.

What We Accomplished in 2005-06

   •    Completed 2nd phase of the Rio Vista pool renovation.
   •    Completed Library wall renovations.
   •    Installed automatic doors at the Municipal Building and San Marcos Electric.
   •    Contracted with Easter Seal to sweep and vacuum Downtown sidewalks.
   •    Installation of landscape and irrigation system at San Marcos Electric Utility.
   •    Installation of new “Welcome to San Marcos” sign.
   •    Landscaping at new welcome sign and electric utility sub station.

What We Plan to Accomplish in 2006-07

   •    Continue to add facilities to HVAC computer network.
   •    Continue ADA renovations as funds allow.
   •    Continue to find ways to conserve energy.
   •    Maintain city facilities in the most efficient manner.
   •    Computerize work order system.
   •    Computerize irrigation controls as funds allow.

Performance Measures

                                                            Unit of         Actual        Estimated   Projected
                                                            Measure        2004-05         2005-06    2006-07
 Acres Of Public Grounds Maintained                          Acres           120            120         120
 Facility Maintenance                                       Facilities        34             35          35
 Janitorial Contract                                         Sq. Ft.       216,101        214,000     214,000
 Lawn Maintenance                                            Acres           103             80          80
 ROW’s, Drainage Acres, Alleys                               Acres          1,100          1,200       1,500




                                                      212
            City of San Marcos                             Original
               Fiscal Year 2006/2007           Actual     Approved      Estimated     Proposed     Percent of
                   Annual Budget             2004/2005    2005/2006    2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 138 - Facilities and Grounds

51100   Salaries                                117,296      123,546       127,296      159,326        29.0%
51110   W/C Insurance                             2,493        2,477         2,539        2,843        14.8%
51120   Overtime                                 13,907       17,586        17,586       17,586         0.0%
51190   Medicare                                  1,832        2,059         2,110        2,575        25.1%
51200   FICA                                      7,832        8,806         9,026       11,011        25.0%
51210   TMRS                                     18,546       20,212        20,712       25,271        25.0%
51220   Insurance                                28,579       32,280        32,280       32,280         0.0%
51300   Stability Pay                               672          908           520          680       -25.1%
51310   Unemployment Comp. and Term. Leave          -            -             -            -           0.0%

        Total Personnel Services                191,157      207,874       212,069      251,572        21.0%

52110   Telephone                                   -            200           200          200        0.0%
52130   Equipment - Rent / Lease                  6,587       10,000        10,000       10,000        0.0%
52160   Professional Services                   156,994      167,300       167,300      167,300        0.0%
52180   River Maintenance                         9,908       10,000        10,000       31,000      210.0%
52650   Repairs - Communication                     468          500           500          500        0.0%
52860   Janitorial Services                     360,951      386,250       386,250      386,250        0.0%

        Total Contracted Services               534,907      574,250       574,250      595,250         3.7%

53120   Chemicals                                 5,955       10,000        10,000       10,000         0.0%
53140   Fuel and Lubrication                      8,441       15,000        15,000       15,173         1.2%
53150   Supplies - Other                         17,823       22,000        22,000       29,000        31.8%
53240   Repairs - Building                       94,510       78,000        78,000       85,400         9.5%
53300   Repairs - Vehicle / Equipment            18,564       19,200        19,200       19,200         0.0%
53340   Uniforms                                    705        3,000         3,000        3,000         0.0%

        Total Material and Supplies             145,999      147,200       147,200      161,773         9.9%

61100   Miscellaneous Equipment                      -           -             -             -          0.0%

        Total Capital Outlay                         -           -             -             -          0.0%


Total Facilities and Grounds                    872,063      929,324       933,519     1,008,595        8.5%




                                               213
Park Rangers
Department Organization



                                                City Manager




                                        Parks and Recreation Director




                                          Park Ranger Coordinator




       Park Ranger III (2)                    Park Ranger II (8)                      Park Ranger I (4)




Mission Statement
The Park Ranger program is a valuable tool in addressing the needs of the City’s parks and its patrons. Multi-tasked Park
Rangers are available during peak days and nights to provide assistance, enforce rules, administer medical aid, oversee
park usage, maintain trails, monitor river activity, provide educational background, promote San Marcos, direct traffic
and parking, locate lost children, provide rescue service, secure loose animals, and just give a happy greeting to a
passerby. The Ranger has only one job requirement and that is to help people recreate. At the same time, the Rangers
are required to balance the issues of all visitors, impact to the land/resources, and safety.




Expenditures by Category

                                                           Original
                                       Actual              Approved               Revised                 Proposed
                                      2004-05              2005-06                2005-06                 2006-07
  Personnel Services                        43,630                 43,810                43,810                 93,544
  Contracted Services                            0                    300                   300                    300
  Materials and Supplies                     8,497                  7,085                 7,085                  7,335
  Other Charges                                550                  1,475                 1,475                  1,475
  Capital Outlay                                 0                      0                     0                      0

  Total                                     52,677                 52,670                52,670                102,654



                                                       214
Goals and Objectives

   •     The creation of the Park Ranger program was a valuable tool in addressing the needs of the park and its
         patrons. Multi-tasked Rangers were available during peak days and nights to provide assistance, enforce
         rules, administer medical aid, oversee park usage, maintain trails, monitor river activity, provide
         educational background, and promote San Marcos. They also direct traffic and parking, locate lost children,
         provide rescue services, secure loose animals, and just give a happy greeting to a passerby. The Ranger has
         only one job requirement and that is to HELP PEOPLE RECREATE. At the same time, the Ranger is
         required to balance the issues of all visitors, impact to the land/resources, and safety.

What We Accomplished in 2005-06
   •     The Park Ranger program has had a noticeable impact on the park system and the city as a whole. This
         impact is noted by the comments received from the patrons, the reduction of litter, and the overall reduction
         in criminal activity. This was accomplished by the high visibility of the Rangers in the park. The visibility
         allowed the patron to voluntarily comply with city ordinances as well as allow them to locate and
         communicate questions/concerns they may have. But most of all, with just the presents of the Rangers, we
         were able to increase to overall sense of security and comfort level of everyone in the park.

What We Plan to Accomplish in 2006-07

   •     We plan on providing the same service and coverage to better the experience of the park patrons. We hope to
         increase year round Ranger coverage to better serve the park patrons. We hope to employ one or two full time
         Rangers to help provide continuous coverage and help take the program to a higher level of proficiency.

Performance Measures


                                                            Unit of         Actual        Estimated      Projected
                                                            Measure        2004-05         2005-06       2006-07
 Bike Patrol                                                  Miles          2,000          1,500          2,000
 Canoe                                                       Hours             0              0              0
 Kayak                                                       Hours           300             300            300
 Foot Patrol                                                  Miles          6,000          7,000          6,000
                                                            Hours and
 ATV                                                                     2,000/4,000      700/6,000      800/8,000
                                                             Miles
 Vehicle                                                      Miles         15,000         10,000         20,000
 Medical Calls                                              Services         125             32              50
                                                           Citations
 Law Enforcement                                                           3,000/30       1,000/21       2,000/30
                                                          and Arrests




                                                      215
            City of San Marcos                         Original
               Fiscal Year 2006/2007      Actual      Approved      Estimated     Proposed    Percent of
                   Annual Budget        2004/2005     2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 139 - Park Rangers

51100   Salaries                            36,654        32,110        32,110       66,830     108.1%
51110   W/C Insurance                          781           683           683        1,194      74.9%
51120   Overtime                             3,401         7,956         7,956        7,956       0.0%
51190   Medicare                               530           577           577        1,084      87.9%
51200   FICA                                 2,265         2,484         2,484        4,640      86.8%
51210   TMRS                                   -             -             -          6,460     100.0%
51220   Insurance                              -             -             -          5,380     100.0%
51300   Stability Pay                          -             -             -            -         0.0%

        Total Personnel Services            43,630        43,810        43,810       93,544     113.5%

52160   Professional Services                   -            300           300          300        0.0%

        Total Contracted Services               -            300           300          300        0.0%

53120   Chemicals                              -             -             -             80     100.0%
53150   Supplies - Other                     2,675         3,285         3,285        3,455       5.2%
53160   Supplies - Office                      501           800           800          800       0.0%
53300   Repairs - Vehicle / Equipment          614         1,000         1,000        1,000       0.0%
53340   Uniforms                             4,707         2,000         2,000        2,000       0.0%

        Total Material and Supplies          8,497         7,085         7,085        7,335        3.5%

54340   Professional Development                550        1,475         1,475        1,475        0.0%

        Total Other Charges                     550        1,475         1,475        1,475        0.0%

61100   Miscellaneous Equipment                 -            -             -            -          0.0%

        Total Capital Outlay                    -            -             -            -          0.0%


Total Park Rangers                          52,677        52,670        52,670      102,654       94.9%




                                          216
PARD Contract Programs
Department Organization

The Parks and Recreation Department contracts with various instructors to provide a wide variety of programs to the
community. These instructors bill all students separately. The City is given 30% of the instructors gross collections in
exchange for providing the facilities used for classroom instruction.




Mission Statement
The Contract Programs division is used to show the various contract amounts for programs such as aerobics and other
instructional programs.




Expenditure by Category

                                                           Original
                                      Actual               Approved               Revised               Proposed
                                     2004-05               2005-06                2005-06               2006-07
 Personnel Services                              0                     0                     0                     0
 Contracted Services                        51,640                72,000                72,000                72,000
 Materials and Supplies                          0                     0                     0                     0
 Other Charges                                   0                     0                     0                     0
 Capital Outlay                                  0                     0                     0                     0

 Total                                      51,640                72,000                72,000                72,000




Performance Measures

                                                             Unit of         Actual         Estimated     Projected
                                                             Measure        2004-05          2005-06      2006-07

                                                               # of
 Aerobic Fitness Programs/Land & Water Aerobics            participants       N/A            6,160          6,160
                                                            Revenue         $33,270         $35,000        $35,000
                                                                # of
 Contract Leisure Programs                                   programs          7              11             11
                                                             Revenue        $18,405         $22,000        $22,000




                                                       217
            City of San Marcos                       Original
               Fiscal Year 2006/2007     Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget       2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 140 - Contract Programs

52310   Water Aerobics Contracts           10,367       12,000        12,000       12,000        0.0%
52320   Aerobics Contracts                 18,683       24,000        24,000       24,000        0.0%
52330   Instructional Contracts            22,590       36,000        36,000       36,000        0.0%

        Total Contracted Services          51,640       72,000        72,000       72,000        0.0%


Total Contract Programs                    51,640       72,000        72,000       72,000        0.0%




                                         218
Social Services
Department Organization

The Social Services Division is used to account for a social service program expenditures.




Expenditures by Category

                                                         Original
                                     Actual              Approved               Revised        Proposed
                                    2004-05              2005-06                2005-06        2006-07
 Social Services                          381,186              400,000               400,000        405,000
 Total                                    381,186              400,000               400,000        405,000




                                                      219
             City of San Marcos                                     Original
                Fiscal Year 2006/2007                   Actual     Approved      Estimated     Proposed    Percent of
                    Annual Budget                     2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 100 - General Fund
Department 185 - Social Services

57010    CASA of Central Texas                             6,100          -             -         10,000      100.0%
57012    E Café                                            8,000        8,000         8,000        8,000        0.0%
57013    Friends Lend Other Wings (FLOW)                   3,000        6,000         6,000        6,000        0.0%
57015    Casa Esperanza                                    8,500       11,700        11,700          -       -100.0%
57030    CCA-Senior Nutrition Program                      6,500        6,500         6,500        7,000        7.7%
57031    Price Senior Center                               8,736          -             -            -          0.0%
57032    CCA-Prescription Assistance Program              30,000       30,000        30,000       30,000        0.0%
57040    CCA-Georgia Street Senior Citizens Center        17,450       15,000        15,000        5,000      -66.7%
57042    SMCISD PEP Program                               10,200       10,000        10,000       10,000        0.0%
57043    Texas State - Safe at Home                          -          2,910         2,910        3,210       10.3%
57050    Greater San Marcos Youth Council                 34,000       35,090        35,090       30,000      -14.5%
57060    Hays/Caldwell Council Alcohol & Drug Abuse       42,000       27,000        27,000       30,000       11.1%
57070    Hays/Caldwell Women's Center                     46,000       55,000        55,000       60,000        9.1%
57090    Homespun Early Childhood Intervention            17,500       17,500        17,500       17,500        0.0%
57095    Nosotros Le Gente (We the People)                 3,400        5,000         5,000        5,000        0.0%
57100    Retired Senior Volunteer Program                  3,500        3,500         3,500        3,500        0.0%
57110    Hays County Area Food Bank                       27,000       30,000        30,000       35,000       16.7%
57120    San Marcos Housing Authority                     17,500       17,500        17,500       20,000       14.3%
57130    San Marcos Youth Services Bureau                 17,300       20,000        20,000       20,000        0.0%
57140    Scheib Opportunity Center                        26,600       30,000        30,000       30,000        0.0%
57150    Southside Community Center                       42,900       64,300        64,300       69,790        8.5%
57170    Youth Projects                                    5,000        5,000         5,000        5,000        0.0%

Total Social Services                                    381,186      400,000       400,000      405,000        1.3%




                                                        220
Special Services
Department Organization

The Special Services Division is used to account for a variety of non-direct expenditures. Examples of expenditures
include utilities, insurance, bank charges and operating transfers.




Expenditures by Category

                                                        Original
                                     Actual             Approved              Revised              Proposed
                                    2004-05             2005-06               2005-06              2006-07
 Personnel Services                      261,210              638,347               157,010            1,435,617
 Contracted Services                   1,044,313            1,050,453             1,050,453            1,105,594
 Materials and Supplies                   (4,757)               7,000                 7,000                7,140
 Other Charges                         2,694,296              761,788               761,788              788,058
 Operating Transfers                   1,423,020              370,184             1,973,467            1,608,110
 Capital Outlay                                 0                   0                     0              500,000
 Prior Period Adjustment                        0                   0                     0                    0

 Total                                 5,418,082            2,827,772             3,949,718            5,444,519




                                                     221
            City of San Marcos                                 Original
               Fiscal Year 2006/2007             Actual       Approved       Estimated     Proposed     Percent of
                   Annual Budget               2004/2005      2005/2006     2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 190 - Special Services

51310   Unemployment Comp. and Term. Leave        261,210        157,010        157,010       160,000       1.9%
51320   Market / Merit / COLA Increase                -          481,337            -       1,275,617     165.0%

        Total Personnel Services                  261,210        638,347        157,010     1,435,617     124.9%


52100   Printing and Publications                   6,954         30,000         30,000       35,000       16.7%
52121   Heat - City Hall                            6,351          4,610          4,610        4,702        2.0%
52122   Heat - Activity Center                     13,726         14,570         14,570       14,861        2.0%
52123   Heat - Library                              2,392          1,530          1,530        1,561        2.0%
52125   Heat - Fire Department                      9,265          8,100          8,100        8,262        2.0%
52126   Heat - Other Buildings                      4,277          3,320          3,320        3,386        2.0%
52141   Power and Light - Flood Control               -              300            300          306        2.0%
52142   Power and Light - Municipal Building       47,104         45,242         45,242       46,147        2.0%
52143   Power and Light - City Hall                35,887         31,415         31,415       32,043        2.0%
52144   Power and Light - Activity Center          98,324         90,243         90,243       92,048        2.0%
52146   Power and Light - Library                  57,073         54,669         54,669       55,763        2.0%
52147   Power and Light - Police Department       154,503        163,992        163,992      167,272        2.0%
52148   Power and Light - Fire Department          20,233         18,436         18,436       18,805        2.0%
52149   Power and Light - Other Buildings         118,893         98,881         98,881      100,859        2.0%
52150   Utilities - Water and Sewer                57,170         67,000         67,000       68,340        2.0%
52153   Water and Sewer - City Hall                10,732          5,910          5,910        6,028        2.0%
52154   Water and Sewer - Activity Center          14,003          4,400          4,400        4,488        2.0%
52156   Water and Sewer - Library                  21,837         10,500         10,500       10,710        2.0%
52157   Water and Sewer - Police                   13,497         12,980         12,980       13,240        2.0%
52158   Water and Sewer - Fire                      3,789          5,720          5,720        5,834        2.0%
52159   Water and Sewer - Other Bldgs              91,790         76,660         76,660       78,193        2.0%
52160   Professional Services                      19,532         37,000         37,000       45,000       21.6%
52391   Information Technology Services               -              -              -         54,672      100.0%
52710   Street Lighting                           160,351        154,973        154,973      158,072        2.0%
52730   Maintenance - Municipal Complex            76,632        110,000        110,000       80,000      -27.3%

        Total Contracted Services                1,044,313      1,050,453     1,050,453     1,105,594        5.2%


53150   Supplies - Other                            (4,757)        5,000          5,000        5,100         2.0%
53151   Supplies - Cable TV                            -           2,000          2,000        2,040         2.0%

        Total Material and Supplies                 (4,757)        7,000          7,000        7,140         2.0%




                                                 222
             City of San Marcos                                       Original
                Fiscal Year 2006/2007                    Actual      Approved       Estimated     Proposed     Percent of
                    Annual Budget                      2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 100 - General Fund
Department 190 - Special Services (continued)

54120   Tuition Reimbursement Program                       15,485       14,030         14,030       12,700        -9.5%
54160   Insurance                                          149,089      181,500        181,500      185,130         2.0%
54180   EMS Contribution                                   220,000      240,000        240,000      250,000         4.2%
54181   Crimestoppers Contribution                          15,000       15,000         15,000       15,000         0.0%
54185   CARTS                                               64,163       70,000         70,000       70,000         0.0%
54186   Commerative Air Force Contribution                     -         19,754         19,754       19,754         0.0%
54187   Clean Air Force Contribution                         6,224        6,224          6,224        6,224         0.0%
54188   Rail District                                          -         49,500         49,500       49,500         0.0%
54189   Envision Central Texas                                 -            -              -          5,000       100.0%
54210   Assessment Centers                                     874        5,000          5,000        6,250        25.0%
54215   Market Study                                           -          5,000          5,000          -        -100.0%
54260   Training - Supervisory                               2,334        2,500          2,500        2,500         0.0%
54351   Special Projects                                       -          9,000          9,000        9,000         0.0%
54355   Special Economic Development Projects            2,175,200          -              -            -           0.0%
54370   Special Events                                      10,000       10,000         10,000       10,000         0.0%
54600   Contingency Funds                                      -        100,000        100,000      100,000         0.0%
54750   Bank Charges                                        21,854       14,780         14,780       27,500        86.1%
54870   ADA Compliance / Training                              975        1,000          1,000        1,000         0.0%
54890   Customer Service Training                            1,000        1,000          1,000        1,000         0.0%
54915   Safety Program                                       4,965        5,000          5,000        5,000         0.0%
54920   Employee Recognition                                 2,395        5,700          5,700        5,700         0.0%
54940   Employee Group Activities                            4,738        6,800          6,800        6,800         0.0%

        Total Other Charges                              2,694,296      761,788        761,788      788,058         3.4%


58110   Op Trsfr - Hotel/Motel Fund (110)                  16,580        17,188         17,188        19,104      11.1%
58200   Op Trsfr - Public Safety Grant (200)               12,439           -              -             -         0.0%
58210   Op Trsfr - Grants Fund (210)                       92,500           -          217,500           -         0.0%
58245   Op Trsfr - Seized Assets Fund (245)                39,892           -              -             -         0.0%
58250   Op Trsfr - CDBG Program Fund (250)                133,000           -              -             -         0.0%
58260   Op Trsfr - Grants Fund (260)                       11,400        15,000         15,000        15,000       0.0%
58420   Op Trsfr - General Fund CIP (420)                 918,014        16,340      1,399,613     1,204,340    7270.5%
58680   Op Trsfr - Airport Fund (680)                     104,511       257,994        260,504       354,500      37.4%
58685   Op Trsfr - Solid Waste Collection Fund (685)          -             -              -             -         0.0%
58840   Op Trsfr - Cemetery Ops Fund (840)                 94,684        63,662         63,662        15,166     -76.2%

        Total Operation Transfers                        1,423,020      370,184      1,973,467     1,608,110     334.4%


61100   Miscellaneous Equipment                                -             -             -        500,000      100.0%

        Total Capital Outlay                                   -             -             -        500,000      100.0%


81000   Prior Period Adjustment                                -             -             -            -           0.0%

        Total Prior Period Adjustments                         -             -             -            -           0.0%



Total Special Services                                   5,418,082     2,827,771     3,949,718     5,444,519       92.5%




                                                         223
224
                                    City of San Marcos
                                           2006-07 ANNUAL BUDGET
                                                DEBT SERVICE FUND
                                                                Actual          Approved         Revised               Proposed
                                                              2004/2005         2005/2006       2005/2006             2006/2007


Operating Revenues
 Current Ad Valorem                                              4,720,099        5,169,235       5,169,235             5,889,013
 Delinquent Ad Valorem                                              71,528           68,571          68,571                78,120
 Penalties and Interest                                             55,110           36,923          36,923                42,064
 Interest Income                                                    90,348           25,900          95,000                95,000

Total Operating Revenues                                         4,937,084        5,300,629       5,369,729             6,104,197


Operating Expenditures
 Principal Payments                                              2,890,834        3,030,000       3,030,000             3,195,000
 Interest Payments                                               1,727,328        1,694,884       1,881,068             1,812,811
 Fiscal Agent Fees                                                   5,815           13,750          15,000                13,750
 New Debt Payments                                                     -            536,096             -                 987,636

Total Operating Expenditures                                     4,623,976        5,274,729       4,926,068             6,009,197

Operating Income/ (Loss)                                          313,108            25,900         443,661                95,000

One-Time Revenues
 One-Time Operating Transfers                                      12,216                   -               -                     -

Net Change in Fund Balance                                         325,325           25,900         443,661                95,000
Beginning Unreserved Fund Balance                                1,206,413        1,531,738       1,531,738             1,975,399

Ending Unreserved Fund Balance                                   1,531,738        1,557,638       1,975,399             2,070,398


Fund Balance as a Percentage of Total Expenditures                 33.13%            29.53%          40.10%                34.45%

Total Outstanding Tax Supported Debt                           37,220,000        40,415,000      40,415,000            48,550,000



Outstanding Tax Supported Debt                                                                                  Original Principal
 Series 1995 General Obligation Refunding Bonds (Tax Supported Portion)                                                11,200,000
 Series 1999 Combination Tax and Revenue Certificates of Obligation                                                      2,500,000
 Series 1999 General Obligation Refunding & Improvement Bonds (Tax Supported Portion)                                  12,795,000
 Series 2000 Combination Tax and Revenue Certificates of Obligation                                                      1,500,000
 Series 2000 General Obligation Bonds                                                                                    1,500,000
 Series 2000-A Combination Tax and Revenue Certificates of Obligation                                                    1,500,000
 Series 2001 Combination Tax and Revenue Certificates of Obligation                                                      8,025,000
 Series 2002 Combination Tax and Revenue Certificates of Obligation                                                      1,800,000
 Series 2003 Combination Tax and Revenue Certificates of Obligation (Tax Supported Portion)                              7,010,000
 Series 2004 Combination Tax and Revenue Certificates of Obligation (Tax Supported Portion)                              2,650,000
 Series 2005 Combination Tax and Revenue Certificates of Obligation (Tax Supported Portion)                              6,225,000
Total                                                                                                                  56,705,000


Fund Balance as a Percentage of Total Original Principal Amount for Outstanding Tax Supported Debt                          3.65%



                                                           225
             City of San Marcos                                         Original
                 Fiscal Year 2006/2007                     Actual      Approved       Estimated     Proposed     Percent of
                     Annual Budget                       2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 310 - Debt Service Fund
Division 400 - 1994 General Obligation Bonds

71150    Principal Payments                                 300,000       300,000        300,000           -       -100.0%
71200    Interest Payments                                   33,600        16,950         16,950           -       -100.0%
71300    Fiscal Agent Fees                                      504         1,250          1,250           -       -100.0%

         Total                                              334,104       318,200        318,200           -       -100.0%



Fund 310 - Debt Service Fund
Division 409 - 1995 General Obligation Refunding Bonds

71150    Principal Payments                                1,155,000     1,205,000     1,205,000      430,000       -64.3%
71200    Interest Payments                                   145,280        86,375        86,375       23,113       -73.2%
71300    Fiscal Agent Fees                                       252         1,250         1,250        1,250         0.0%

         Total                                             1,300,532     1,292,625     1,292,625      454,363       -64.8%



Fund 310 - Debt Service Fund
Division 410 - 1999 Certificates of Obligation

71150    Principal Payments                                 385,000       460,000        460,000      720,000        56.5%
71200    Interest Payments                                   62,575        47,560         47,560       29,160       -38.7%
71300    Fiscal Agent Fees                                      716         1,250          1,250        1,250         0.0%

         Total                                              448,291       508,810        508,810      750,410        47.5%



Fund 310 - Debt Service Fund
Division 411 - 1999 General Obligation Refunding Bonds

71150    Principal Payments                                 480,000       470,000        470,000     1,290,000     174.5%
71200    Interest Payments                                  535,305       516,585        516,585       497,785      -3.6%
71300    Fiscal Agent Fees                                      716         1,250          1,250         1,250       0.0%

         Total                                             1,016,021      987,835        987,835     1,789,035       81.1%



Fund 310 - Debt Service Fund
Division 412 - 2000 General Obligation Bonds

71150    Principal Payments                                  55,000        55,000         55,000       60,000         9.1%
71200    Interest Payments                                   76,433        73,545         72,176       69,220        -5.9%
71300    Fiscal Agent Fees                                      716         1,250          1,250        1,250         0.0%

         Total                                              132,148       129,795        128,426      130,470         0.5%




                                                           226
             City of San Marcos                                 Original
                 Fiscal Year 2006/2007              Actual     Approved      Estimated     Proposed    Percent of
                     Annual Budget                2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 310 - Debt Service Fund
Division 413 - 2000 Certificates of Obligation

71150    Principal Payments                           55,000       55,000        55,000       55,000        0.0%
71200    Interest Payments                            75,133       72,176        73,545       70,658       -2.1%
71300    Fiscal Agent Fees                               716        1,250         1,250        1,250        0.0%

         Total                                       130,848      128,426       129,795      126,908       -1.2%



Fund 310 - Debt Service Fund
Division 414 - 2000A Certificates of Obligation

71150    Principal Payments                           50,000       55,000        55,000       60,000        9.1%
71200    Interest Payments                            77,553       74,303        74,303       70,728       -4.8%
71300    Fiscal Agent Fees                               769        1,250         1,250        1,250        0.0%

         Total                                       128,321      130,553       130,553      131,978        1.1%



Fund 310 - Debt Service Fund
Division 415 - 2001 Certificates of Obligation

71150    Principal Payments                          200,000      200,000       200,000      340,000       70.0%
71200    Interest Payments                           345,025      334,625       334,625      324,625       -3.0%
71300    Fiscal Agent Fees                               318        1,250         1,250        1,250        0.0%

         Total                                       545,343      535,875       535,875      665,875       24.3%



Fund 310 - Debt Service Fund
Division 416 - 2002 Certificates of Obligation

71150    Principal Payments                           60,000       60,000        60,000       65,000        8.3%
71200    Interest Payments                            70,948       67,798        67,798       64,648       -4.6%
71300    Fiscal Agent Fees                               361        1,250         1,250        1,250        0.0%

         Total                                       131,309      129,048       129,048      130,898        1.4%



Fund 310 - Debt Service Fund
Division 417 - 2003 Certificates of Obligation

71150    Principal Payments                           70,000       70,000        70,000       70,000        0.0%
71200    Interest Payments                           305,478      302,503       302,503      299,528       -1.0%
71300    Fiscal Agent Fees                               150        1,250         1,250        1,250        0.0%

         Total                                       375,628      373,753       373,753      370,778       -0.8%




                                                    227
             City of San Marcos                                 Original
                 Fiscal Year 2006/2007             Actual      Approved       Estimated     Proposed     Percent of
                     Annual Budget               2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 310 - Debt Service Fund
Division 418 - 2004 Certificates of Obligation

71150    Principal Payments                          80,834       100,000        100,000      105,000         5.0%
71200    Interest Payments                              -         102,465        102,465       99,465        -2.9%
71300    Fiscal Agent Fees                              600         1,250          1,250        1,250         0.0%

         Total                                       81,434       203,715        203,715      205,715         1.0%



Fund 310 - Debt Service Fund
Division 419 - 2005 Certificates of Obligation

71100    New Debt Payments                               -        536,096            -            -        -100.0%
71150    Principal Payments                              -            -              -            -           0.0%
71200    Interest Payments                               -            -          186,185      263,884       100.0%
71300    Fiscal Agent Fees                               -            -            1,250        1,250       100.0%

         Total                                           -        536,096        187,435      265,134       -50.5%



Fund 310 - Debt Service Fund
Division 420 - New Debt Issued

71100    New Debt Payments                               -             -             -        987,636      100.0%

         Total                                           -             -             -        987,636      100.0%




Summary
 Principal Payments                                2,890,834     3,030,000     3,030,000     3,195,000        5.4%
 Interest Payments                                 1,727,328     1,694,884     1,881,068     1,812,811        7.0%
 Fiscal Agent Fees                                     5,815        13,750        15,000        13,750        0.0%
 New Debt Payments                                       -         536,096           -         987,636       84.2%

         Total                                     4,623,976     5,274,729     4,926,068     6,009,197       13.9%




                                                   228
                        CITY OF SAN MARCOS
                                2006-07 ANNUAL BUDGET
                     RATIO OF NET GENERAL BONDED DEBT TO
                ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
                            LAST TEN FISCAL YEARS

                                                                                 Percent
                                                                                  of Net
                                                        Debt                     Debt to
Fiscal                  Assessed       Gross Bonded    Service     Net Bonded    Assessed Net Debt
Year     Population      Value             Debt        Funds          Debt        Value Per Capita

1996          32,200    802,465,217       26,940,000    405,381     26,534,619     3.31 %   689.26

1997          32,816    866,436,147       25,020,000    428,962     24,591,038     2.84 %   629.33

1998          33,443    976,372,471       22,995,000    508,167     22,486,833     2.30 %   566.98

1999          34,082   1,047,032,829      26,920,000    874,541     26,045,459     2.31 %   653.24

2000          34,733   1,128,395,453      29,850,000   1,192,880    28,657,120     2.54 %   700.49

2001          37,396   1,219,167,665      35,865,000   1,372,308    34,492,692     2.83 %   922.36

2002          40,514   1,642,492,799      33,715,000   1,167,908    32,547,092     1.98 %   803.35

2003          42,165   2,002,253,418      33,000,000   1,155,867    31,844,133     1.60 %   760.31

2004          44,769   2,053,043,231      37,380,000   1,109,256    36,270,744     1.77 %   810.18

2005          43,994   1,806,957,939      40,030,000   1,531,736    38,498,264     2.13 %   875.08




                                            229
                        CITY OF SAN MARCOS
                            2006-07 ANNUAL BUDGET
          RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL
         BONDED DEBT TO TOTAL GENERAL GOVERNMENT EXPENDITURES
                          LAST TEN FISCAL YEARS

                                                                           Ratio of Total
                                                                           Debt Service to
                                                          Total General       General
Fiscal                                   Total Debt       Governmental     Governmental
Year        Principal      Interest       Service         Expenditures      Expenditures
1996          1,235,000     1,270,176         2,505,176       27,768,075               9%
1997          1,335,000     1,185,146         2,520,146       24,229,598              10 %
1998          1,410,000     1,101,647         2,511,647       25,398,174              10 %
1999          1,495,000       913,576         2,408,576       29,495,856               8%
2000          1,570,000     1,718,330         3,288,330       31,996,692              10 %
2001          1,730,000     1,763,608         3,493,608       40,034,176               9%
2002          2,150,000     2,174,434         4,324,434       41,323,034              10 %
2003          2,515,000     1,720,522         4,235,522       40,788,569              10 %
2004          2,630,000     1,789,783         4,419,783       38,807,884              11 %
2005          2,810,000     1,808,161         4,618,161       45,263,436              10 %




    * Includes expenditures of the General, Special Revenue, Debt Service, Capital
    Projects, and Permanent Funds.




                                        230
                                CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                                COMPUTATION OF LEGAL DEBT MARGIN
                                       SEPTEMBER 30, 2006


                       State Law Limit – 10% of Taxable Assessed Value
Actual taxable assessed value at September 30, 2006                          $ 1,855,050,208


Debt limit – 10% of taxable assessed value                                      185,505,020


Total general obligation debt outstanding                     $ 40,415,000


Less: Debt Service Fund balance                                 1,329,065


Debt applicable to debt limit                                                    35,890,935


Legal debt margin                                                             $ 149,614,085



       City of San Marcos Financial Policy Limit – 5% of Taxable Assessed Value
Actual taxable assessed value at September 30, 2006                          $ 1,855,050,208


Debt limit – 5% of taxable assessed value                                        92,752,510


Total general obligation debt outstanding                     $ 40,415,000


Less: Debt Service Fund balance                                 1,329,065


Debt applicable to debt limit                                                    35,890,935


Debt margin – Financial Policy                                                 $ 56,861,575



                                                  231
                              CITY OF SAN MARCOS
                                           2006-07 ANNUAL BUDGET
                                    SUMMARY OF OUTSTANDING DEBT
                                      AS OF SEPTEMBER 30, 2006
                                                    Interest      Amount                                      Amount
         Issue                  Purpose               Rate        Issued        Issue Date   Maturity Date   Outstanding
1995 GO Refunding       Refunding of 1987 and       5.18 %        11,200,000    08/01/1995    08/01/2007         430,000
Bonds                   1988 CO’s and 1991
                        and 1992 GO’s.
1999 Certificates of    Constructing,               3.98 %         2,500,000    02/01/1999    08/15/2007         720,000
Obligation              reconstructing and
                        improving streets and
                        providing drainage.
1999 GO Bonds           Refunding of 1992A          4.56 %        12,795,000    02/01/1999    08/15/2019       11,150,000
                        and 1994 GO Bonds.
                        Improving streets, land
                        acquisition, fire station
                        construction and related
                        equipment.
2000 GO Bonds           Land acquisition for        5.83 %         1,500,000    02/01/2000    08/15/2020        1,225,000
                        street construction.
2000 Certificates of    Renovating and              5.82 %         1,500,000    02/01/2000    08/15/2020        1,200,000
Obligation              improving streets and
                        related expenses.
2000A Certificates of   Constructing,               5.62 %         1,500,000    03/15/2000    08/15/2020        1,255,000
Obligation              reconstructing and
                        improving streets and
                        other related expenses.
2001 Certificates of    Street renovation and       4.55 %         8,025,000    08/25/2001    08/25/2020        7,225,000
Obligation              improvements.
2002 Certificates of    Greenspace land             4.10 %         1,800,000    09/15/2002    09/15/2022        1,565,000
Obligation              acquisition.
2003 Certificates of    Constructing,               4.42 %         7,010,000    12/10/2003    8/15/2023         6,870,000
Obligation              reconstructing and
                        improving streets and
                        other related expenses
2004 Certificates of    Constructing,               4.09 %         2,650,000    12/13/2004    8/15/2024         2,550,000
Obligation              reconstructing and
                        improving streets and
                        other related expenses.
2005 Certificates of    Constructing,               4.45 %         6,225,000    01/10/2006    08/15/2025        6,225,000
Obligation              reconstructing and
                        improving streets and
                        other related expenses.
                        Total General
                        Obligation Debt                          $ 56,705,000                                $ 40,415,000




                                                           232
               CITY OF SAN MARCOS
                      2006-07 ANNUAL BUDGET
           GENERAL OBLIGATION DEBT SERVICE REQUIREMENTS
                        SEPTEMBER 30, 2006


Fiscal Year         Principal            Interest        Total

    2007               3,195,000            1,812,811     5,007,811
    2008               3,235,000            1,672,154     4,907,154
    2009               2,235,000            1,532,939     3,767,939
    2010               2,330,000            1,437,819     3,767,819
    2011               2,410,000            1,341,129     3,751,129
    2012                2,500,00            1,238,396     3,738,396
    2013               2,565,000            1,129,721     3,694,721
    2014               2,645,000            1,017,186     3,662,186
    2015               2,270,000             899,169      3,169,169
    2016               2,340,000             796,699      3,136,699
    2017               2,430,000             688,811      3,118,811
    2018               2,530,000             575,279      3,105,279
    2019               2,625,000             454,904      3,079,904
    2020               2,165,000             329,329      2,494,329
    2021               1,250,000             226,164      1,476,164
    2022               1,315,000             169,784      1,484,784
    2023               1,235,000             109,419      1,344,419
    2024                 655,000               52,331       707,331
    2025                 485,000               22,431       507,431
Total               $ 40,415,000         $ 15,506,475   $ 55,921,475




                                   233
234
                                CITY OF SAN MARCOS
                                             2006-07 ANNUAL BUDGET
                                         HOTEL OCCUPANCY TAX FUND
                                                                Actual         Approved         Revised        Proposed
                                                              2004/2005        2005/2006       2005/2006      2006/2007


Operating Revenues
 Hotel Occupancy Tax                                               1,034,142       929,058       1,220,288      1,232,491
 Penalties                                                                30           -               -              -
 Interest Income                                                         840           -               -              -
 Operating Transfer - General Fund                                    16,580        17,188          17,188         19,104

Total Operating Revenues                                           1,051,592       946,246       1,237,476      1,251,594

Operating Expenditures
 Arts Funding - 4.5%                                               32,310.00        51,098          67,116         55,462
 San Marcos CVB - 45.0%                                             579,116        510,982         671,158        554,621
 Hispanic COC - 5.5%                                                  72,390        55,743          73,217         67,787
 Outlet Mall Advertising Program - 3.5%                               38,602        50,000          50,000         50,000
 Branding/ Marketing San Marcos Program - 3.5%                           -          32,517          42,710         43,137
 Tourist Account - 1.0%                                                  -           9,291          12,203         12,325
 Future Conference Center - 21.5%                                        -          65,034          85,420        264,986
 Main Street Program - 15.5%                                        150,282        171,876         176,285        191,036
 Other Contracted Services                                            50,000           -           100,000            -

Total Operating Expenditures                                        922,700        946,541       1,278,109      1,239,354

Operating Income/ (Loss)                                            128,892            (295)       (40,633)        12,240

One-Time Expenses
 Performing Arts Center Partnership                                       -                -           -           25,000
 Summerfest Tourism Fireworks                                             -                -           -           10,000
 Sights and Sounds                                                        -                -         4,100         24,100
 Sales Tax Rebate - Prime Visitor's Center                                -                -           -           10,000
 State Softball Tournaments                                               -                -           -           10,000
 Arts Resource Team                                                       -                -           -            4,000

Total One-Time Expenses                                                                               4,100        83,100


Net Change in Fund Balance                                          128,892            (295)       (40,633)        12,240
Reserved for Unspent Allocations - Arts Funding                    (126,158)            -              -              -
Reserved for Unspent Allocations - Outlet Mall Advertising          (16,827)            -              -              -
Reserved for Unspent Allocations - Future Conference Ctr.          (106,969)            -              -              -
One-Time Expenses                                                                                   (4,100)       (83,100)
Beginning Fund Balance - Reserved and Unreserved                    253,714        132,651         132,651         87,918

Ending Unreserved Fund Balance                                      132,651        132,356          87,918         17,059


Fund Balance as a Percentage of Total Expenditures                   14.38%         13.98%            6.88%          1.38%




                                                             235
                           CITY OF SAN MARCOS
                                   2006-07 ANNUAL BUDGET
                                 HOTEL OCCUPANCY TAX FUND




                  Contracted
                                 Personnel
                   Services
                                  Services
                    29.2%
                                   6.8%




   Materials &
    Supplies
     2.9%




                                                                             Other Charges
                                                                                61.1%




                           Personnel    Contracted    Materials     Other        Capital
Division                   Services      Services     & Supplies   Charges       Outlay         Total
Other Tourism Programs              0      771,007             0    360,411                0   1,131,418
Main Street Program            89,390       37,455        38,940     25,251                0     191,036
                   Total       89,390      808,462        38,940    385,662                0   1,322,454




                                                236
            City of San Marcos                                    Original
               Fiscal Year 2006/2007                  Actual     Approved      Estimated     Proposed     Percent of
                   Annual Budget                    2004/2005    2005/2006    2005/2006     2006/2007      Change

Fund 110 - Hotel Occupancy Tax Fund
Department 300 - Other Tourism Programs

52060   Arts Funding Contract                           32,310       51,098        67,116       55,462         8.5%
52062   San Marcos CVB Tourism Contract                579,116      510,982       671,158      554,621         8.5%
52064   Hispanic COC Tourism Contract                   72,390       55,743        73,217       67,787        21.6%
52066   Outlet Mall Advertising Program                 38,602       50,000        50,000       50,000         0.0%
52067   Branding/ Marketing San Marcos                     -         32,517        42,710       43,137        32.7%
52230   Special Counsel                                 50,000          -         100,000          -           0.0%

        Total Contracted Services                      772,418      700,340     1,004,201      771,007        10.1%

54362   Tourist Account                                     -         9,291        12,203       12,325       32.7%
54364   Future Conference Center                            -        65,034        85,420      264,986      307.5%

        Total Other Charges                                 -        74,325        97,623      277,311      273.1%

52091   Performing Arts Center Partnership                  -           -             -         25,000      100.0%
52094   Summerfest Tourism Fireworks                        -           -             -         10,000      100.0%
52096   Sights and Sounds                                   -           -           4,100       24,100      100.0%
52097   Sales Tax Rebate - Prime Visitor's Center           -           -             -         10,000      100.0%
52098   State Softball Tournament                           -           -             -         10,000      100.0%
52099   Arts Resource Team                                  -           -             -          4,000      100.0%
        Total One-Time Expenses                             -           -           4,100       83,100      100.0%



Total Other Tourism Programs                           772,418      774,665     1,101,824     1,131,418       46.1%




                                                      237
Main Street
Department Organization

                                                   City Manager



                                             Director of Administration



                                               Main Street Manager



                                              Main Street Coordinator




Mission Statement
The mission of the San Marcos Main Street Program is to enhance the cultural identity, historical significance and
economic stability of our community through a comprehensive downtown revitalization program of design, economic
restructuring, organization and promotion.




Expenditures by Category

                                                         Original
                                    Actual               Approved            Revised              Proposed
                                   2004-05               2005-06             2005-06              2006-07
 Personnel Services                       82,654                84,945              89,354               89,390
 Contracted Services                      22,424                31,250              31,250               37,455
 Materials and Supplies                   31,847                32,945              32,945               38,940
 Other Charges                            13,357                22,736              22,736               25,251
 Capital Outlay                                0                     0                   0                    0

 Total                                   150,282               171,876             176,285              191,036




                                                     238
Goals and Objectives

   •   To preserve and promote the unique character of downtown for the citizens of San Marcos and its visitors
       in order to enhance the cultural identity, historical significance and economic stability of our community
       through a comprehensive downtown revitalization program with input and participation by downtown and
       community stakeholders.

   In order to comply with the mandated “Four-Point Approach” of the National Trust for Historic Preservation’s
   Main Street Program, the San Marcos Main Street Program’s objectives are:

   Design
   • To improve and preserve all aspects of the downtown environment to include buildings, infill and new
       development compatibility, storefronts, signs, public improvements, and landscaping to enhance the visual
       quality and economic viability of the commercial district.
   Organization
   • To build partnerships, consensus, and cooperation among community groups, stakeholders, and individuals
       who have a role in the revitalization process.
   Promotion
   • To market the downtown district’s assets to customers, potential investors, prospective businesses, and
       tourists, by creating a positive image, through special events and promotions, printed materials, advertising
       and other public relation strategies.
   Economic Restructuring
   • To strengthen and protect downtown’s existing assets while finding ways to meet and expand new and
       existing opportunities and challenges.


What We Accomplished in 2005-06

   •   Received National Main Street City by the National Trust and Texas Historical Commission.
   •   Increased 4-color publications written, designed, and printed by staff.
   •   Worked with potential investors and new and existing businesses on Incentive Grants, historic tax credits,
       available properties and other development and business issues. Provided resources and technical information to
       public and private sector inquiries.
   •   Co-sponsored quarterly small business seminars with Chamber’s Small Business Council.
   •   Continued on-going programs such as Gold Card Program with SMCISD, Downtown Directory
       publication, Incentive Grant Program for façade improvements, beautification, security lighting, historic
       building design projects with Tx. State students, Bobcat Build and Board development.
   •   Staffed Parking Board, Main Street Board, and staff support for Small Business Council, Downtown
       Association, and events.
   •   Developed marketing and advertising for targeted markets.
   •   Promoted downtown thru events such as Women Entrepreneur Program, Eddie Durham Jazz Festival, Sights &
       Sounds of Christmas, Texas Natural & Western Swing Festival, The Gathering, Business Expo, Great Race and
       others.
   •   Supported downtown master plan implementation.




                                                     239
What We Plan to Accomplish in 2006-07

   •   Meet criteria for designation as a National Main Street City.
   •   Continue support and implementation for downtown master plan.
   •   Respond to investor, business and public requests for assistance and information.
   •   Continue to explore improvements to downtown parking, alley parking for delivery trucks, pedestrian
       accessibility and vehicular traffic.
   •   Develop and implement architectural assistance program for downtown businesses.
   •   Meet goals and time lines for on-going programs, projects and state requirements as a Main Street City.
   •   Support Parking Board, Main Street Board, Small Business Council, Downtown Association
       projects/programs.
   •   Continue monthly newsletter and targeted marketing/advertising of downtown.
   •   Promote downtown through a variety of events.
   •   Develop marketing strategies to businesses targeted thru market analysis/downtown master plan.


Performance Measures

                                                         Unit of         Actual       Estimated       Projected
                                                         Measure        2004-05        2005-06        2006-07
 Phone Requests For Information, Materials,
                                                                         4,523          4,000          4,000
 Services                                                Number
 Staff Support To Organizations                          Number            12             13             12
 Special Events Supported                                Number             9              8              8
 Programs/Projects                                       Number            21             21             22
 Total Downtown Reinvestment (Public And Private                       $1,261,572     $1,000,000     $1,000,000
 Sectors)                                                Dollars
 Private Sector Only Reinvestment                                      $1,186,072     $1,000,000     $1,000,000

 Private Sector Expenditures For Downtown
                                                         Dollars       $656,072        $325,000       $325,000
 Building Rehabilitation
 Private Sector Expenditures For Downtown
                                                         Dollars       $530,000        $500,000       $500,000
 Buildings Purchased
 Net Business Starts, Relocations, Expansions            Number             3              5              5

 Net Gain In Jobs                                        Number            83             75             75
 Economic Development Contacts                           Number            14             15             15




                                                   240
            City of San Marcos                                     Original
               Fiscal Year 2006/2007                   Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget                     2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 110 - Hotel Occupancy Tax Fund
Department 301 - Main Street Program

51100   Salaries                                         64,999       65,801        69,477       69,477        5.6%
51110   W/C Insurance                                       131          117           130          118        0.9%
51120   Overtime                                            170          -             -            -          0.0%
51190   Medicare                                            948          965         1,019        1,019        5.6%
51200   FICA                                              4,052        4,128         4,359        4,359        5.6%
51210   TMRS                                              7,653        7,774         8,209        8,209        5.6%
51220   Insurance                                         3,962        5,380         5,380        5,380        0.0%
51300   Stability Pay                                       738          780           780          828        6.2%

        Total Personnel Services                         82,654       84,945        89,354       89,390        5.2%

52100   Printing and Publications                         4,669        6,220         6,220        8,300       33.4%
52110   Telephone                                           847        1,450         1,450        1,450        0.0%
52160   Professional Services                            11,508       16,725        16,725       20,631       23.4%
52350   Building Rental                                   5,400        5,400         5,400        5,400        0.0%
52390   Maintenance Contract - Office                       -          1,000         1,000        1,000        0.0%
52391   Information Technology Services                     -            455           455          674       48.1%

        Total Contracted Services                        22,424       31,250        31,250       37,455       19.9%

53150   Supplies - Other                                 20,000       16,875        16,875       19,795       17.3%
53160   Supplies - Office                                 2,403        1,200         1,200        2,000       66.7%
53180   Postage                                           3,382        4,200         4,200        4,200        0.0%
53210   Advertising                                       6,062       10,670        10,670       12,945       21.3%

        Total Materials and Supplies                     31,847       32,945        32,945       38,940       18.2%

54140   Dues and Subscriptions                              732        1,391         1,391        1,452        4.4%
54170   Main Street - Incentive/ Promotion Program        1,499        1,500         1,500        1,500        0.0%
54280   Texas Natural                                     5,516       11,045        11,045       11,145        0.9%
54340   Professional Development                          3,516        4,100         4,100        3,854       -6.0%
54370   Special Events                                    2,094        4,700         4,700        7,300       55.3%

        Total Other Charges                              13,357       22,736        22,736       25,251       11.1%

61100   Miscellaneous Equipment                              -           -             -            -          0.0%

        Total Capital Outlay                                 -           -             -            -          0.0%


Total Main Street Program                               150,282      171,876       176,285      191,036       11.1%




                                                       241
242
                               CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                                MUNICIPAL COURT TECHNOLOGY FUND
                                                        Actual        Approved         Revised         Proposed
                                                      2004/2005       2005/2006       2005/2006       2006/2007


Operating Revenues
 Technology Fee                                             33,277         28,600          33,943          34,600
 Interest Income                                               358            250             400             500

Total Operating Revenues                                    33,636         28,850          34,343          35,100

Operating Expenditures
 Materials and Supplies                                           -               -               -               -

Total Operating Expenditures                                      -               -               -               -

Operating Income/ (Loss)                                    33,636         28,850          34,343          35,100

One-Time Expenditures
 Capital Outlay                                                   -       130,000         130,000          73,659

Net Change in Fund Balance                                  33,636       (101,150)        (95,657)        (38,559)
Beginning Unreserved Fund Balance                          100,581        134,217         134,217          38,559

Ending Unreserved Fund Balance                             134,217         33,067          38,559                     0


Fund Balance as a Percentage of Total Expenditures         100.00%        100.00%         100.00%         100.00%




                                                     243
            City of San Marcos                            Original
               Fiscal Year 2006/2007           Actual    Approved      Estimated     Proposed    Percent of
                   Annual Budget             2004/2005   2005/2006    2005/2006     2006/2007     Change

Fund 240 - Municipal Court Technology Fund
Department 334 - Technology Fee


53150   Supplies - Other                             -          -             -            -

        Total Materials and Supplies                 -          -             -            -

61040   Computer Equipment                           -      130,000       130,000       73,659      -43.3%

        Total Capital Outlay                         -      130,000       130,000       73,659      -43.3%



Total Technology Fee                                 -      130,000       130,000       73,659      -43.3%




                                               244
                               CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                               MUNICIPAL COURT SECURITY FEE FUND
                                                        Actual        Approved         Revised         Proposed
                                                      2004/2005       2005/2006       2005/2006       2006/2007


Operating Revenues
 Technology Fee                                                   -               -               -        23,625
 Interest Income                                                  -               -               -           -

Total Operating Revenues                                          -               -               -        23,625

Operating Expenditures
 Materials and Supplies                                           -               -               -        23,625

Total Operating Expenditures                                      -               -               -        23,625

Operating Income/ (Loss)                                          -               -               -               -

One-Time Expenditures
 Capital Outlay                                                   -               -               -               -

Net Change in Fund Balance                                        -               -               -               -
Beginning Unreserved Fund Balance                                 -               -               -               -

Ending Unreserved Fund Balance                                    -               -               -               -


Fund Balance as a Percentage of Total Expenditures           0.00%           0.00%           0.00%           0.00%




                                                     245
            City of San Marcos                              Original
                Fiscal Year 2006/2007            Actual    Approved     Estimated    Proposed    Percent of
                    Annual Budget              2004/2005   2005/2006   2005/2006    2006/2007     Change

Fund 245 - Municipal Court Security Fee Fund
Department XXX - Security Fee


53150   Supplies - Other                               -          -            -        23,625

        Total Materials and Supplies                   -          -            -        23,625

61040   Computer Equipment                             -          -            -           -          0.0%

        Total Capital Outlay                           -          -            -           -          0.0%



Total Security Fee                                     -          -            -        23,625     100.0%




                                                 246
                                CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                                             SEIZED ASSETS FUND
                                                        Actual        Approved         Revised         Proposed
                                                      2004/2005       2005/2006       2005/2006       2006/2007
Operating Revenues
 Seized Assets                                             45,864            5,000           5,000           5,000
 Interest Income                                              500              100             100             100

Total Operating Revenues                                   46,364            5,100           5,100           5,100

Operating Expenditures
 Contracted Services                                       51,600            1,500           1,500           1,500

Total Operating Expenditures                               51,600            1,500           1,500           1,500

Operating Income/ (Loss)                                    (5,236)          3,600           3,600           3,600

One-Time Operating Revenues
 One-Time Operating Transfers                              39,892                 -               -               -

Net Change in Fund Balance                                 34,656           3,600           3,600           3,600
Beginning Unreserved Fund Balance                          15,805          50,461          50,461          54,061

Ending Unreserved Fund Balance                             50,461          54,061          54,061          57,661


Fund Balance as a Percentage of Total Expenditures         97.79%        3604.05%        3604.05%        3844.05%




                                                     247
             City of San Marcos                       Original
                Fiscal Year 2006/2007     Actual     Approved      Estimated     Proposed    Percent of
                    Annual Budget       2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 245 - Seized Assets
Department 278 - Special Services


52130   Equipment - Rent / Lease            50,328          -             -            -          0.0%
52160   Professional Services                1,272        1,500         1,500        1,500        0.0%

        Total Contracted Services           51,600        1,500         1,500        1,500        0.0%




Total Special Services                      51,600        1,500         1,500        1,500        0.0%




                                          248
                               CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUND
                                                        Actual        Approved         Revised         Proposed
                                                      2004/2005       2005/2006       2005/2006       2006/2007


Operating Revenues
 Grant Revenue                                             566,917        587,708         587,708         531,284

Total Operating Revenues                                   566,917        587,708         587,708         531,284

Operating Expenditures
 CDBG Project Expenditures                                 566,917        587,708         587,708         531,284

Total Operating Expenditures                               566,917        587,708         587,708         531,284

Operating Income/ (Loss)                                          -               -               -               -

Net Change in Fund Balance                                        -               -               -               -
Beginning Unreserved Fund Balance                                 -               -               -               -

Ending Unreserved Fund Balance                                    -               -               -               -


Fund Balance as a Percentage of Total Expenditures           0.00%           0.00%           0.00%           0.00%




                                                     249
            City of San Marcos                                        Original
               Fiscal Year 2006/2007                      Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget                        2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 250 - Community Development Block Grant Fund
Department 335 - Community Development Block Grant

56079   Crime Victim's Assistance                           14,004          -             -            -          0.0%
56099   Housing Buy-Down Program                            10,000          -             -            -          0.0%
56114   Parkland Acq. and Imprvmnts. - FY 02                   680          -             -            -          0.0%
56129   Park Improvements - FY 03                              224          -             -            -          0.0%
56144   The Village (Salaries)- FY 04                        3,379          -             -            -          0.0%
56145   Community Action ADA Parking - FY 04                21,498          -             -            -          0.0%
56146   LBJ Museum - FY 04                                  48,000          -             -            -          0.0%
56148   The Village (Land)- FY 04                          200,000          -             -            -          0.0%
56149   Southside Rehabilitation Program - FY 04             4,174          -             -            -          0.0%
56152   Program Administration - FY 04                       8,194          -             -            -          0.0%
56153   COSM Health Department - FY 05                      15,675          -             -            -          0.0%
56155   Sidewalk Construction - FY 05                        2,480          -             -            -          0.0%
56157   Southside Community Center - FY 05                  70,000          -             -            -          0.0%
56158   The Village - Program Delivery - FY 05              50,193          -             -            -          0.0%
56159   Program Administration - FY 05                     118,416          -             -            -          0.0%
56160   Housing Purchase/ Rehabilitation Program               -         19,166        19,166          -       -100.0%
56161   Southside C.C. Housing Rehabilitation Program          -         90,000        90,000          -       -100.0%
56162   Family Justice Center - Phase I                        -         66,000        66,000          -       -100.0%
56163   Street Minor Reconstruction Program                    -        175,000       175,000          -       -100.0%
56164   Hopkins Street Sidewalk - Phase II                     -         82,839        82,839          -       -100.0%
56165   Neighborhood Sidewalks                                 -         37,161        37,161          -       -100.0%
56166   Program Administration - FY 06                         -        117,542       117,542          -       -100.0%
        Southside Community Center Housing Rehab               -            -             -         90,000      100.0%
        Hopkins Bridge Phase III                               -            -             -        311,027      100.0%
        Guadalupe Sidewalk Project - Additional Funds          -            -             -         24,000      100.0%
        Program Administration                                 -            -             -        106,257      100.0%

Total Community Development Block Grant                    566,917      587,708       587,708      531,284       -9.6%




                                                          250
                                 CITY OF SAN MARCOS
                                            2006-07 ANNUAL BUDGET
                           WOMEN, INFANTS AND CHILDREN PROGRAM FUND
                                                        Actual         Approved         Revised         Proposed
                                                      2004/2005        2005/2006       2005/2006       2006/2007


Operating Revenues
 Grant Revenue                                             1,130,883     1,385,944       1,405,237       1,561,324

Total Operating Revenues                                   1,130,883     1,385,944       1,405,237       1,561,324


Operating Expenditures
 Personnel Services                                         686,078        869,218         888,510       1,018,528
 Contract Services                                          147,155        233,020         233,020         233,097
 Materials and Supplies                                      87,014        119,700         119,700         120,511
 Other Charges                                              183,719        164,006         164,006         189,188
 Capital Outlay                                              26,919            -               -               -

Total Operating Expenditures                               1,130,883     1,385,944       1,405,237       1,561,324

Operating Income/ (Loss)                                          -                -               -               -

Net Change in Fund Balance                                        -                -               -               -
Beginning Unreserved Fund Balance                                 -                -               -               -

Ending Unreserved Fund Balance                                    -                -               -               -


Fund Balance as a Percentage of Total Expenditures            0.00%           0.00%           0.00%           0.00%




                                                     251
                                  CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                             WOMEN, INFANTS AND CHILDREN PROGRAM FUND
                                                Actual         Approved       Revised       Proposed
                                              2004/2005        2005/2006     2005/2006     2006/2007


WIC Administration
 Personnel Services                                 508,204        495,840       505,055       602,661
 Contracted Services                                118,429        162,920       162,920       162,997
 Materials and Supplies                              83,450        107,100       107,100       105,911
 Other Charges                                      147,138        111,460       111,460       133,156
 Capital Outlay                                      26,919            -             -             -

                          Total                     884,141        877,319       886,535     1,004,724


WIC Nutritional Education
 Personnel Services                                 148,325        330,629       340,706       335,978
 Contracted Services                                 28,725         54,600        54,600        54,600
 Materials and Supplies                               1,989          8,000         8,000        10,000
 Other Charges                                       31,098         46,798        46,798        47,461

                          Total                     210,137        440,027       450,104       448,039


WIC Lactation
 Personnel Services                                  29,548         42,749        42,749        79,889
 Contracted Services                                    -           15,500        15,500        15,500
 Materials and Supplies                               1,575          4,600         4,600         4,600
 Other Charges                                        5,482          5,749         5,749         8,572

                          Total                      36,605         68,598        68,598       108,561


Total WIC Expenditures                             1,130,883     1,385,944     1,405,237     1,561,324




Recap of WIC Expenditures

 WIC Administration                                 884,141        877,319       886,535     1,004,724
 WIC Nutritional Education                          210,137        440,027       450,104       448,039
 WIC Lactation                                       36,605         68,598        68,598       108,561

Total WIC Expenditures                             1,130,883     1,385,944     1,405,237     1,561,324




                                             252
                           CITY OF SAN MARCOS
                                   2006-07 ANNUAL BUDGET
                        WOMEN, INFANTS AND CHILDREN PROGRAM FUND




                                 Contracted
                                  Services
                                   14.9%


        Materials &
         Supplies
          7.7%




                                                                        Personnel Services
                                                                             65.2%
           Other Charges
              12.1%




                           Personnel    Contracted   Materials     Other     Operating
Division                   Services      Services    & Supplies   Charges    Transfers        Total
Administration               602,661       162,997      105,911    133,156           0       1,004,725
Nutritional Education        335,978        54,600       10,000     47,461           0         448,039
Lactation                     79,889        15,500        4,600      8,572           0         108,561

Total                       1,018,528      233,097      120,511    189,189           0       1,561,325


                                              253
WIC Program – Administration
Department Organization

                                                        City Manager



                                                       Program Manager



            Administrative Coordinator



                          Clerk II (9)                                         Certification Specialist (2)




Mission Statement
The WIC Program will continue to provide counseling, clinical assessments, supplemental foods and immunizations to all
eligible Pregnant Women, Nursing Mothers, Infants and Children up to five years of age who reside in the counties of Hays,
Caldwell, Bastrop, Comal and Guadalupe.




Expenditures by Category

                                                             Original
                                          Actual             Approved             Revised              Proposed
                                         2004-05             2005-06              2005-06              2006-07
    Personnel Services                       508,204              495,840              505,055                602,661
    Contracted Services                      118,429              162,920              162,920                162,997
    Materials and Supplies                    83,450              107,100              107,100                105,911
    Other Charges                             12,232               17,250               17,250                133,156
    Operating Transfers                      134,906               94,210               94,210                      0
    Capital Outlay                            26,919                    0                    0                      0

    Total                                    884,140              877,320              886,535             1,004,724




                                                       254
Goals and Objectives
Our goal is best defined by our mission statement: To give all eligible families the best start for a life time of well-being
by providing nutrition education and breastfeeding support during the critical stages of development.
    • To enroll 10,654 participants per month.
    • To provide WIC services and food vouchers to 87% (or 9,269) of enrolled participants per month.
    • To provide nutrition education to 98% (or 9,084) of families that receive food vouchers each month.
    • To ensure that 32% of pregnant women enrolled are enrolled during their first trimester of pregnancy.
    • To ensure that 58.5% of infants (whose mothers were WIC participants during pregnancy) are breast-fed at or
        before the time of their certification of eligibility.
    • To make health care referrals to 98% of participants who indicate they have no source of health care

What We Accomplished in 2005-06
    •   Enrolled an average of 10,415 participants per month.
    •   Provided WIC services and food vouchers to an average of 9,065 participants (87%) per month.
    •   Provided nutrition education to over 99% of families that receive food vouchers each month.
    •   Enrolled 25.5% of our pregnant participants during their first trimester.
    •   Provided support to pregnant mothers on WIC so that 67.15% of their infants were breast-fed at or before the
        time of their certification of eligibility.
    • Made health care referrals to 99.24% of participants who indicated they had no source of health care.
    *figures based on activity from October, 2005 through March, 2006

What We Plan to Accomplish in 2006-07
    •    To enroll 85% (or 10,654) of the “potential eligible” participants per month.
    •    To provide WIC services and food vouchers to 87% (or 9,269) of enrolled participants per month.
    •    To provide nutrition education to 98% (or 9,084) of families that receive food vouchers each month.
    •    To ensure that 32% of pregnant women enrolled are enrolled during their first trimester of pregnancy.
    •    To ensure that 58.5% of infants (whose mothers were WIC participants while pregnant) are breast-fed at or
         before the time of their certification of eligibility.
    •    To make health care referrals to 98% of participants who indicate they have no source of health care.

Performance Measures

                                                                Unit of          Actual        Estimated       Projected
                                                                Measure         2004-05         2005-06        2006-07
                                                                  # of
    Participants Enrolled per Month                                              10,289         10,415          10,654
                                                              Participants
    Percent of Families receiving Nutrition Education
                                                                Families         99.7%           99%             99%
    per month
                                                              %Pregnant
    Percent of Women Certified in their 1st Trimester                            27.3%           26%             32%
                                                                Women
                                                                  # of
    Percent of Eligible Clients receiving Food Vouchers
                                                                Eligible         88.3%           87%             87%
    per month
                                                                Clients
    Percent of Clients referred to Health Care                # of Clients       99.3%            99%            98%
    Percent of Infants Breastfed at or before                 % of Total
                                                                                 64.6%           67%            58.5%
    Certification                                               Infants
    Percent of potential eligibles enrolled per month              %             83.1%           83%             85%




                                                        255
            City of San Marcos                               Original
               Fiscal Year 2006/2007             Actual     Approved      Estimated     Proposed     Percent of
                   Annual Budget               2004/2005    2005/2006    2005/2006     2006/2007      Change

Fund 810 - Women, Infants & Children Program
Department 260 - WIC Administration

51100   Salaries                                  356,451      322,062       329,555      351,915        9.3%
51110   W/C Insurance                                 722          578           624          603        4.3%
51120   Overtime                                    2,399        4,784         4,784        4,784        0.0%
51190   Medicare                                    5,118        4,803         4,913        5,237        9.0%
51200   FICA                                       21,884       20,540        21,015       22,401        9.1%
51210   TMRS                                       51,491       47,140        48,232       51,414        9.1%
51220   Insurance                                  57,225       64,560        64,560       69,940        8.3%
51300   Stability Pay                               4,564        4,432         4,432        4,604        3.9%
51310   Unemployment Comp. and Term. Leave          8,351        8,700         8,700        8,700        0.0%
51320   Market / Merit / COLA Increase                -         18,240        18,240       83,063      355.4%

        Total Personnel Service                   508,204      495,840       505,055      602,661        21.5%

52100   Printing and Publications                     984        2,500         2,500        3,000       20.0%
52110   Telephone                                  12,109       21,000        21,000       20,000       -4.8%
52130   Equipment - Rent / Lease                    2,172        3,000         3,000        3,000        0.0%
52140   Power and Lights                           10,360       14,000        14,000       14,000        0.0%
52159   Water and Sewer - Other Bldgs                 -            -             -            400      100.0%
52160   Professional Services                         -          2,000         2,000        2,000        0.0%
52350   Building Rental                            82,811       97,000        97,000       97,000        0.0%
52360   Garbage Collection                            546          800           800          800        0.0%
52390   Maintenance Contract - Office               1,414        4,000         4,000        4,200        5.0%
52391   Information Technology Services               -          1,820         1,820        1,797       -1.3%
52860   Janitorial Services                         6,620       14,500        14,500       14,500        0.0%
52880   Security Contract                             898        1,500         1,500        1,500        0.0%
52890   Exterminator Service                          515          800           800          800        0.0%

        Total Contracted Services                 118,429      162,920       162,920      162,997         0.0%

53140   Fuel and Lubrication                        1,816        2,400         2,400        2,411         0.4%
53150   Supplies - Other                           28,629       50,000        50,000       43,000       -14.0%
53160   Supplies - Office                          12,554       15,000        15,000       15,000         0.0%
53180   Postage                                     2,165        5,700         5,700        5,700         0.0%
53240   Repairs - Building                         11,537        7,000         7,000       12,000        71.4%
53300   Repairs - Vehicle / Equipment               1,875        5,000         5,000        5,800        16.0%
53470   Supplies - Medical                         24,874       22,000        22,000       22,000         0.0%

        Total Material and Supplies                83,450      107,100       107,100      105,911        -1.1%

54140   Dues and Subscriptions                        331          650           650          850        30.8%
54200   Outreach                                    1,572        3,200         3,200        3,200         0.0%
54320   Mileage Reimbursement                       2,252        6,000         6,000        6,000         0.0%
54340   Professional Development                    8,077        7,400         7,400        8,600        16.2%
54800   Reimbursement to General Fund (100)       134,906       94,210        94,210      114,506        21.5%

        Total Other Charges                       147,138      111,460       111,460      133,156        19.5%

61040   Computer Equipment                          5,500          -             -             -          0.0%
61050   Light Vehicles                             21,419          -             -             -          0.0%

        Total Capital Outlay                       26,919          -             -             -          0.0%


Total WIC Administration                          884,141      877,319       886,535     1,004,724       14.5%



                                                 256
WIC Program – Nutritional Education
Department Organization

The WIC Program positions provide services for all three functions, Administration, Nutritional Education and Lactation.
Time spent for each function is recorded through the payroll process and allocated to each functional budget expense
accordingly.

                                                     City Manager



                                                  Program Manager



                                                Nutrition Coordinator



                                                   Nutritionist (6)




Mission Statement
The Nutritional Education Division of the WIC Program will continue to provide a Health Assessment and Nutritional
Counseling to all eligible program participants that are being served by the WIC Program.




Expenditures by Category

                                                           Original
                                       Actual              Approved              Revised              Proposed
                                      2004-05              2005-06               2005-06              2006-07
    Personnel Services                     148,325               330,629              340,706              335,978
    Contracted Services                     28,725                54,600               54,600               54,600
    Materials and Supplies                   1,989                 8,000                8,000               10,000
    Other Charges                              447                 5,800                5,800               47,461
    Operating Transfers                     30,651                40,998               40,998                    0

    Total                                  210,137               440,027              450,104              448,039




                                                     257
            City of San Marcos                               Original
               Fiscal Year 2006/2007             Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget               2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 810 - Women, Infants & Children Program
Department 261 - WIC Nutritional Education

51100   Salaries                                  106,656      238,597       246,884      243,278        2.0%
51110   W/C Insurance                                 213        1,401         1,449        1,299       -7.3%
51120   Overtime                                      -            -             -            -          0.0%
51190   Medicare                                    1,530        3,469         3,586        3,534        1.9%
51200   FICA                                        6,543       14,832        15,334       15,109        1.9%
51210   TMRS                                       15,340       34,042        35,193       34,678        1.9%
51220   Insurance                                  17,003       37,660        37,660       37,660        0.0%
51300   Stability Pay                               1,040          628           600          420      -33.1%

        Total Personnel Services                  148,325      330,629       340,706      335,978        1.6%

52100   Printing and Publications                     -          2,000         2,000        2,000        0.0%
52140   Power and Lights                            2,735        6,000         6,000        6,000        0.0%
52350   Building Rental                            23,000       38,000        38,000       38,000        0.0%
52860   Janitorial Services                         2,613        7,000         7,000        7,000        0.0%
52880   Security Contract                             242        1,000         1,000        1,000        0.0%
52890   Exterminator Service                          136          600           600          600        0.0%

        Total Contracted Services                  28,725       54,600        54,600       54,600        0.0%

53150   Supplies - Other                            1,989        5,000         5,000        5,000       0.0%
53160   Supplies - Office                             -          2,000         2,000        2,000       0.0%
53180   Postage                                       -          1,000         1,000        1,000       0.0%
53240   Repairs - Building                            -            -             -          2,000     100.0%

        Total Materials and Supplies                1,989        8,000         8,000       10,000       25.0%

54140   Dues and Subscriptions                        325        1,300         1,300        1,300        0.0%
54320   Mileage Reimbursement                           8          500           500          500        0.0%
54340   Professional Development                      114        4,000         4,000        4,000        0.0%
54800   Reimbursement to General Fund (100)        30,651       40,998        40,998       41,661        1.6%

        Total Other Charges                        31,098       46,798        46,798       47,461        1.4%




Total WIC Nutritional Education                   210,137      440,027       450,104      448,039        1.8%




                                                 258
WIC Program – Lactation
Department Organization

The WIC Program positions provide services for all three functions, Administration, Nutritional Education and Lactation.
Time spent for each function is recorded through the payroll process and allocated to each functional budget expense
accordingly.

                                           City Manager




                                          Program Manager




                                            Nutritionist




                                           Peer Counselor




Mission Statement
The WIC Program provides individual and group counseling to all child lactating and postpartum women enrolled in the
program to encourage and sustain the practice of child lactation.




Expenditures by Category

                                                             Original
                                       Actual                Approved            Revised              Proposed
                                      2004-05                2005-06             2005-06              2006-07
    Personnel Services                       29,548               42,749               42,749                79,889
    Contracted Services                           0               15,500               15,500                15,500
    Materials and Supplies                    1,575                4,600                4,600                 4,600
    Other Charges                               122                2,500                2,500                 8,572
    Operating Transfers                       5,361                3,249                3,249                     0

    Total                                    36,606               68,598               68,598              108,561




                                                       259
            City of San Marcos                               Original
               Fiscal Year 2006/2007             Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget               2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 810 - Women, Infants & Children Program
Department 262 - WIC Lactation

51100   Salaries                                   21,458       30,514        30,514       56,472      85.1%
51110   W/C Insurance                                  43          179           179          301      68.2%
51120   Overtime                                      -            -             -            -         0.0%
51190   Medicare                                      310          442           442          819      85.3%
51200   FICA                                        1,323        1,892         1,892        3,501      85.0%
51210   TMRS                                        3,092        4,342         4,342        8,036      85.1%
51220   Insurance                                   3,322        5,380         5,380       10,760     100.0%
51300   Stability Pay                                 -            -             -            -         0.0%
51350   Car Allowance                                 -            -             -            -         0.0%

        Total Personnel Services                   29,548       42,749        42,749       79,889       86.9%

52100   Printing and Publications                      -           500           500          500        0.0%
52160   Professional Services                          -        15,000        15,000       15,000        0.0%

        Total Contracted Services                      -        15,500        15,500       15,500        0.0%

53150   Supplies - Other                            1,575        4,000         4,000        4,000        0.0%
53160   Supplies - Office                             -            500           500          500        0.0%
53180   Postage                                       -            100           100          100        0.0%

        Total Materials and Supplies                1,575        4,600         4,600        4,600        0.0%

54320   Mileage Reimbursement                           8          500           500          500        0.0%
54340   Professional Development                      114        2,000         2,000        2,000        0.0%
54800   Reimbursement to General Fund (100)         5,361        3,249         3,249        6,072       86.9%

        Total Other Charges                         5,482        5,749         5,749        8,572       49.1%




Total WIC Lactation                                36,605       68,598        68,598      108,561       58.3%




                                                 260
                                  CITY OF SAN MARCOS
                                             2006-07 ANNUAL BUDGET
                                          CEMETERY OPERATIONS FUND
                                                        Actual        Approved         Revised         Proposed
                                                      2004/2005       2005/2006       2005/2006       2006/2007


Operating Revenues
 Burial Permits                                              1,950           2,500          2,500           2,500
 Monument Permits                                              450             500            500             500
 Other Revenue                                                 285             -              -               -
 Interest Income                                               112             -              -               -
 Sale of Cemetery Lots                                      32,679           9,500         32,600          32,600
 Sale of Memorial Plaques                                       14             -              -               -

Total Operating Revenues                                    35,490         12,500          35,600          35,600

Operating Expenditures
 Contracted Services                                       106,741        110,400         110,400         118,077
 Materials and Supplies                                      1,532          2,000           2,000           2,000
 Reimbursement to Other Funds                                5,241          5,628           5,628           6,048

Total Operating Expenditures                               113,514        118,028         118,028         126,125

Operating Income/ (Loss)                                   (78,024)      (105,528)        (82,428)        (90,525)

One-Time Operating Revenues
 Operating Transfer - General Fund                          94,684         63,662          63,662          15,166
 Operating Transfer - Cemetery Perpetual Care Fund             -              -            26,400          43,800

One-Time Operating Expenditures
 One-Time Operating Transfers                                     -               -               -        15,000

Net Change in Fund Balance                                  16,660        (41,866)          7,634         (46,559)
Beginning Unreserved Fund Balance                           22,265         38,925          38,925          46,559

Ending Unreserved Fund Balance                              38,925          (2,941)        46,559                 -


Fund Balance as a Percentage of Total Expenditures          34.29%          -2.49%         39.45%            0.00%




                                                     261
                 CITY OF SAN MARCOS
                                 2006-07 Annual Budget
                       CEMETERY OPERATIONS FUND




                                     Other Charges
                    Operating             4%
                    Transfers                               Materials &
                      11%                                    Supplies
                                                               1%




                                              Contracted
                                               Services
                                                84%




                 Personnel       Contracted   Materials     Other     Operating
Division         Services         Services    & Supplies   Charges    Transfers    Total

Administration               0      118,077        2,000      6,048       15,000   141,125




                                       262
Cemetery Operations


Department Organization

There are no specific positions budgeted within the Cemetery Operations Fund. This fund is used to account for maintenance
expenses required to keep the City Cemetery in good condition. The actual maintenance is provided by an area contractor.




Mission Statement
The cemetery division is responsible for the maintenance and development of the cemetery. The requested budget will
provide resources for the maintenance and general improvements that are needed to maintain the cemetery in an attractive and
accessible condition.




Expenditures by Category

                                                             Original
                                        Actual               Approved              Revised               Proposed
                                       2004-05               2005-06               2005-06               2006-07
    Personnel Services                             0                     0                     0                     0
    Contracted Services                      106,741               110,400               110,400               118,077
    Materials and Supplies                     1,532                 2,000                 2,000                 2,000
    Other Charges                                  0                     0                     0                 6,048
    Operating Transfers                        5,241                 5,628                 5,628                15,000
    Capital Outlay                                 0                     0                     0                     0

    Total                                    113,514               118,028               118,028               141,125




                                                       263
Goals and Objectives

   •   To continue the cemetery beautification project.
   •   To ensure that construction of any new facilities are consistent with the master plan.
   •   To ensure that the citizens interests are fully represented in the development and care of the cemetery.
   •   To assist the friends of the cemetery in raising funds for beautification projects.

What We Accomplished in 2005-06

   •   Completed the construction of a new fence at the entrance of the cemetery.
   •   Completed phase 1 of the tree pruning project.
   •   Opened and additional 100 lots for sale.

What We Plan to Accomplish in 2006-07

   •   To continue the cleaning and pruning of the trees in the cemetery.
   •   To continue the general maintenance and upkeep of the cemetery.
   •   To continue to implement the beautification projects.




Performance Measures

                                                            Unit of          Actual        Estimated      Projected
                                                            Measure         2004-05         2005-06       2006-07
   Grounds Maintenance                                        Acres            40             40              40
   Open Additional Lots for Sale                             # of lots        100             100            100




                                                     264
            City of San Marcos                              Original
               Fiscal Year 2006/2007            Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget              2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 840 - Cemetery Fund
Department 280 - Cemetery Operations

52300   Contracted Services                        4,000        4,000         4,000        4,000       0.0%
52390   Maintenance Contract - Office             83,108       85,700        85,700       90,000       5.0%
52391   Information Technology Services              -            -             -          1,177     100.0%
52660   Repairs - Building and Equipment           1,033        2,100         2,100        2,100       0.0%
52700   Maintenance - General                     18,600       18,600        18,600       20,800      11.8%

        Total Contracted Services                106,741      110,400       110,400      118,077        7.0%

53150   Supplies - Other                           1,532        2,000         2,000        2,000        0.0%

        Total Materials and Supplies               1,532        2,000         2,000        2,000        0.0%

54800   Reimbursement to General Fund (100)        5,241        5,628         5,628        6,048        7.5%

        Total Other Charges                        5,241        5,628         5,628        6,048        7.5%

58420   Op Trsfr - General Fund CIP (420)             -           -             -         15,000     100.0%

        Total Operating Transfers                     -           -             -         15,000     100.0%

61400   General Improvement                           -           -             -

        Total Capital Outlay                          -           -             -            -          0.0%


Total Cemetery Operations                        113,514      118,028       118,028      141,125       19.6%




                                                265
266
                                   CITY OF SAN MARCOS
                                           2006-07 ANNUAL BUDGET
                                    WATER / WASTEWATER UTILITY FUND
                                          FINANCIAL FORECAST
                                              FY 2005      FY 2006      FY 2007      FY 2008       FY 2009

Operating Revenues
 Interest Income                                 503,532      440,926      447,738      478,446       452,742
 Water Service Revenue                        10,054,147   11,218,398   11,414,720   11,614,478    11,817,731
 Wastewater Service Revenue                    9,545,537   10,650,075   10,836,451   11,026,089    11,219,046
 Charges from Other Services                   1,277,662    1,153,479    1,204,068    1,212,086     1,232,313
 Other Revenue                                   203,220      137,511      952,567      772,894       955,303

Total Operating Revenues                      21,584,099   23,600,390   24,855,546   25,103,993    25,677,134

Operating Expenses
 Personnel Services                            2,330,157    2,150,165    2,483,152    2,607,309     2,737,675
 Contracted Services                           3,526,389    5,075,242    5,951,220    6,201,297     6,392,127
 Materials and Supplies                          991,495      793,283      808,066      832,308       857,278
 Other Charges                                   514,268      639,238      703,250      724,348       746,078
 Franchise Fee                                 1,793,613    1,968,163    2,002,605    2,037,651     2,073,310
 Reimbursement to Other Funds                  2,520,975    2,732,511    3,153,390    3,177,424     3,201,698
 Debt Service                                  5,756,361    6,185,435    7,675,166    8,631,258     9,517,841

Total Operating Expenses                      17,433,257   19,544,037   22,776,850   24,211,596    25,526,006

Operating Income / (Loss)                      4,150,842    4,056,353    2,078,696     892,397       151,128

One-Time Revenues
 Edwards Aquifer Authority Reimbursement        223,800       55,950           -            -             -
 SWTP Reservation Charge                        110,957          -             -            -             -
 Prior Period Adjustment                         33,389          -             -            -             -
 Operating Transfers                                -        905,000           -            -             -

One-Time Expenses
 Capital Outlay                                  426,661      467,000      281,000      535,000        70,000
 System Improvements                                 -      3,000,000    1,030,000    1,000,000     1,000,000
 One-Time Operating Transfers                  1,218,157    1,380,000          -            -             -
 Prior Period Adjustment                         144,868          -            -            -             -

Net Change in Fund Balance                     2,729,302      170,303      767,696     (642,603)     (918,872)
Beginning Unreserved Fund Balance              8,293,856   11,023,158   11,193,461   11,961,157    11,318,554
Ending Unreserved Fund Balance                11,023,158   11,193,461   11,961,157   11,318,554    10,399,682

Percentage of Operating Expenses                   63.2%        57.3%        52.5%        46.7%         40.7%

Days of Operation                                   231          209          192          171           149




                                                   267
                                 CITY OF SAN MARCOS
                                            2006-07 ANNUAL BUDGET
                                    WATER / WASTEWATER UTILITY FUND
                                                         Actual         Approved        Revised       Proposed
                                                       2004/2005        2005/2006      2005/2006     2006/2007


Operating Revenues
 Interest Income                                           503,532          188,211        440,926       447,738
 Water Service Revenue                                  10,054,147       10,574,158     11,218,398    11,414,720
 Wastewater Service Revenue                              9,545,537       10,443,045     10,650,075    10,836,451
 Pretreatment Program                                      532,371          377,200        456,412       456,412
 Connections-Water                                          29,865           30,760         30,760        31,683
 Connections-Sewer                                          21,724           22,376         22,376        23,047
 Effluent Revenue                                          129,270          126,270        126,270        37,778
 Wholesale Water Sales                                     200,081          242,725        200,000       400,000
 Wheeling Sales                                             78,333           79,858         75,000           -
 Penalties                                                 286,019          242,661        242,661       255,148
 Sales of Materials                                            -              5,000          5,000         5,000
 Other Revenue                                              68,833              -              -             -
 NSF Service Charges                                         4,035            2,800          2,800         2,884
 Service Charges                                            91,968           87,711         87,711        90,579
 Pretreatment Permits                                          -                -              -             -
 Tower Rental                                               38,384           42,000         42,000        42,000
 Debt Service Reimbursement (Series 2006 and 2006A)            -                -              -         812,104

Total Operating Revenues                                21,584,099       22,464,775     23,600,390    24,855,546

Operating Expenses
 Personnel Services                                         2,330,157     2,999,358      2,150,165     2,483,152
 Contracted Services                                        3,526,389     3,839,538      5,075,242     5,951,220
 Materials and Supplies                                       991,495     1,214,003        793,283       808,066
 Other Charges                                              4,828,856     5,265,159      5,339,911     5,859,245
 Debt Service                                               5,756,361     6,330,838      6,185,435     7,675,166

Total Operating Expenses                                17,433,257       19,648,896     19,544,037    22,776,850

Operating Income/ (Loss)                                    4,150,842     2,815,879      4,056,353     2,078,696

One-Time Revenues
 Edwards Aquifer Authority Reimbursement                     223,800        223,800         55,950               -
 SWTP Reservation Charge                                     110,957            -              -                 -
 Prior Period Adjustment                                      33,389            -              -                 -
 Operating Transfers                                             -              -          905,000               -

One-Time Expenses
 One-Time Operating Transfers                               1,218,157           -        1,380,000           -
 Capital Outlay                                               426,661       551,000        467,000       281,000
 System Improvements                                              -       3,000,000      3,000,000     1,030,000
 Prior Period Adjustment                                      144,868           -              -             -

Net Change In Fund Balance                                  2,729,302      (511,321)       170,303       767,696
Beginning Unreserved Fund Balance                           8,293,856     9,913,814     11,023,158    11,193,461

Ending Unreserved Fund Balance                          11,023,158        9,402,493     11,193,461    11,961,157


Fund Balance as a Percentage of Total Expenses                63.23%         47.85%         57.27%        52.51%



                                                      268
                                  CITY OF SAN MARCOS
                                           2006-07 ANNUAL BUDGET
                                  WATER / WASTEWATER UTILITY FUND
                                                     Actual         Approved       Revised       Proposed
                                                   2004/2005        2005/2006     2005/2006     2006/2007



Wastewater Collection
 Personnel Services                                      570,560        614,451       617,867       779,797
 Contracted Services                                     133,944        164,591       164,591       168,085
 Materials and Supplies                                  208,521        315,800       315,800       315,628
 Other Charges                                            11,017         20,500        20,500        24,500
 Capital Outlay                                          189,752        239,000       239,000        87,000

                          Total                         1,113,794     1,354,342     1,357,758     1,375,010


Wastewater Treatment Facility Operations
 Personnel Services                                      404,585        792,297         6,364               -
 Contracted Services                                     877,662        753,425         3,007               -
 Materials and Supplies                                  296,813        353,500         4,947               -
 Other Charges                                            29,532         41,300        29,615               -
 Capital Outlay                                           29,144         84,000           -                 -

                          Total                         1,637,736     2,024,522        43,933               -


Water Quality Services
 Personnel Services                                      186,592        184,384       188,513       188,885
 Contracted Services                                      78,270        135,500       135,500       212,352
 Materials and Supplies                                   21,212         25,000        25,000        21,881
 Other Charges                                             2,893          7,000         7,000         7,750
 Capital Outlay                                              -           32,000        32,000        22,000

                          Total                          288,968        383,884       388,013       452,868


Water Production / WW Treatment Facility Maint.
 Personnel Services                                       51,083         49,484        16,473               -
 Contracted Services                                      13,126         18,100         4,222               -
 Materials and Supplies                                   54,466         74,128         1,961               -
 Other Charges                                             7,201          5,300           123               -
 Capital Outlay                                              -              -             -                 -

                          Total                          125,875        147,012        22,779               -


Water Distribution Maintenance
 Personnel Services                                      687,477        838,509       781,363       781,053
 Contracted Services                                     142,782        176,601       176,601       414,824
 Materials and Supplies                                  353,245        380,600       380,600       407,291
 Other Charges                                            19,026         25,700        25,700        25,900
 Capital Outlay                                          207,650        116,000       116,000       172,000

                          Total                         1,410,180     1,537,410     1,480,264     1,801,067



                                                  269
                                  CITY OF SAN MARCOS
                                            2006-07 ANNUAL BUDGET
                                        WATER / WASTEWATER UTILITY FUND
                                                          Actual         Approved       Revised       Proposed
                                                        2004/2005        2005/2006     2005/2006     2006/2007



Water/Wastewater Administration
 Personnel Services                                           403,174        436,032       519,585       514,681
 Contracted Services                                            7,592        111,350       111,350        83,287
 Materials and Supplies                                        47,797         44,900        44,900        55,620
 Other Charges                                                 12,328         39,300        39,300        39,900
 Capital Outlay                                                   -           80,000        80,000           -

                          Total                               470,891        711,582       795,135       693,488


Special Services
 Personnel Services                                             26,686        84,201        20,000       218,736
 Contracted Services                                         2,273,012     2,479,971     4,479,971     5,072,672
 Materials and Supplies                                          9,440        20,075        20,075         7,647
 Other Charges                                               4,746,859     5,126,059     5,217,674     5,761,195
 Operating / Administrative Transfers                        1,218,157           -       1,380,000           -
 Capital Outlay                                                    115           -             -             -
  System Improvements                                              -       3,000,000     3,000,000     1,030,000
 Prior Period Adjustments                                      144,868           -             -             -

                          Total                              8,419,137    10,710,306    14,117,720    12,090,251


Debt Service
 Principal Payments                                          3,005,000     3,065,000     3,140,000     3,195,000
 Interest Payments                                           2,745,175     2,910,381     3,030,435     3,633,942
 Fiscal Agent Fees                                               6,186        13,750        15,000        13,750
 New Debt Issued                                                   -         341,706           -         832,474

                          Total                              5,756,361     6,330,838     6,185,435     7,675,166



Total Water/Wastewater Utility Fund Expenses             19,222,943       23,199,896    24,391,037    24,087,850


Summary of Expenses by Department

 Wastewater Collection                                       1,113,794     1,354,342     1,357,758     1,375,010
 Wastewater Treatment Facility Operations                    1,637,736     2,024,522        43,933           -
 Water Quality Services                                        288,968       383,884       388,013       452,868
 Water Production/ WW Treatment Facility Maintenance           125,875       147,012        22,779           -
 Water Distribution Maintenance                              1,410,180     1,537,410     1,480,264     1,801,067
 Water/ Wastewater Administration                              470,891       711,582       795,135       693,488
 Special Services                                            8,419,137    10,710,306    14,117,720    12,090,251
 Debt Service                                                5,756,361     6,330,838     6,185,435     7,675,166

Total Water/Wastewater Utility Fund Expenses             19,222,943       23,199,896    24,391,037    24,087,850




                                                       270
                                    CITY OF SAN MARCOS
                                                2006-07 ANNUAL BUDGET
                                      WATER / WASTEWATER UTILITY FUND
                                                   Operating
                                                   Transfers
                                                     0.0%                    Personnel Services
                      Contracted                                                  10.3%
                       Services                                                           Capital Outlay
                        24.7%                                                                 1.2%




           Materials &
            Supplies
             3.4%                                                                        Debt Service
                                                                                           31.9%




                           Other Charges
                              28.6%
                      Personnel    Contracted    Materials      Other        Operating    Capital        Debt
Division              Services      Services     & Supplies    Charges       Transfers    Outlay        Service         Total
Wastewater
Collection               779,797     168,085       315,628       24,500              0      87,000                0    1,375,010
Wastewater
Treatment Facility
Operations                    0            0             0               0           0              0             0             0
Water Quality
Services                 188,885     212,352        21,881        7,750              0      22,000                0     452,868
Water Production/
WW Treatment
Facility Maint.               0            0             0               0           0              0             0             0
Water Distribution
& Maintenance            781,053     414,824       407,291        25,900             0     172,000              0      1,801,068
Administration           514,681      83,287        55,620        39,900             0           0              0        693,488
Special Services         218,736   5,072,672         7,647     6,791,195             0           0      7,675,166     19,765,416

              Total   2,483,152    5,951,220       808,067     6,889,245             0     281,000      7,675,166     24,087,850




                                                         271
Wastewater Collection
Department Organization

                                                       City Manager


                                                    Water/ Wastewater
                                                    Utilities Director

                                                    Water/ WW Utilities
                                                    Operations Manager

                                                  Water/ WW Distribution
                                                   Collection Manager

                             Field Maintenance Crew Leader            Utility Crew Leader


        Field Maintenance Technician                                                  Equipment Operator III (3)
                     (4)


              I/C Technician                                                          Equipment Operator I (3)



Mission Statement
Provide wastewater collection service for the citizens of the City of San Marcos and operate and maintain the collection
system in a safe, efficient and healthy manner.




Expenses by Category

                                                             Original
                                        Actual               Approved             Revised             Proposed
                                       2004-05               2005-06              2005-06             2006-07
    Personnel Services                       570,560              614,451              617,867              779,797
    Contracted Services                      133,944              164,591              164,591              168,085
    Materials and Supplies                   208,521              315,800              315,800              315,628
    Other Charges                             11,017               20,500               20,500               24,500
    Capital Outlay                           189,752              239,000              239,000               87,000

    Total                                  1,113,794            1,354,342             1,357,758           1,375,010




                                                       272
Goals and Objectives

   •    Provide wastewater collection services to the citizens of San Marcos
   •    Operate and maintain the collection system in a safe, efficient and healthy manner.
   •    Respond to all emergency and non-emergency calls 24 hours a day.
   •    Protect the health and safety of the community and environment.
   •    GPS of Manholes, Clean Outs and Sample Ports.

What We Accomplished in 2005-06

   •    Increased our grease and odor control efforts.
   •    Responded to over 1,500 wastewater calls.
   •    180 repairs to the collection system.
   •    Installed security fencing around 20 lift stations.
   •    Installed radio frequency communications to our Supervisory Control and Data Acquisition (SCADA) system.

What We Plan to Accomplish in 2006-07

   •    Make necessary repairs to the collection system
   •    Chemically treat for grease, odor and root problems in the collection system.
   •    Continue GPS of the Wastewater System.
   •    Start up of a Clean Out installation program.
   •    Continue television inspection of sewer mains to identify deteriorated lines and manholes.
   •    Upgrade security and improve deteriorated conditions of lift stations.
   •    Continue 24 hour response to all emergency and non-emergency calls.
   •    Comply with all applicable State, Federal and local mandates.

Performance Measures
                                                               Unit of         Actual         Estimated   Projected
                                                               Measure        2004-05          2005-06    2006-07
 Wastewater Taps                                                 Each            11              25          25
 Sewer Main & Service Repairs                                    Each            53              50          60
 Install Clean Outs                                              Each            40              40          60
 Manhole Repairs                                                 Each            56              50          50
 Clear Sewer Mains and Services                                  Each           305             350         350
 Repair Clean Outs and Sample Ports                              Each            51              60          70
 Line Locates                                                    Each           536             600         650
 Chemical Feed Maintenance                                       Each            58              60          65




                                                     273
            City of San Marcos                            Original
               Fiscal Year 2006/2007         Actual      Approved       Estimated     Proposed     Percent of
                   Annual Budget           2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 610 - Water/Wastewater Utility Fund
Department 200 - Wastewater Collection

51100   Salaries                              373,463       376,315        379,017      492,855        31.0%
51110   W/C Insurance                           6,760         9,438          9,558       11,221        18.9%
51120   Overtime                               32,329        58,770         58,770       58,770         0.0%
51190   Medicare                                5,678         6,366          6,405        8,056        26.5%
51200   FICA                                   24,278        27,219         27,387       34,445        26.5%
51210   TMRS                                   57,251        62,471         62,858       79,058        26.6%
51220   Insurance                              67,409        69,940         69,940       91,460        30.8%
51300   Stability Pay                           3,392         3,932          3,932        3,932         0.0%
51350   Car Allowance                             -             -              -            -           0.0%

        Total Personnel Services              570,560       614,451        617,867      779,797        26.9%

52110   Telephone                               6,067        12,000         12,000       12,000        0.0%
52130   Equipment - Rent / Lease                1,475         6,000          6,000        6,000        0.0%
52140   Power and Lights                      101,914       112,591        112,591      112,000       -0.5%
52160   Professional Services                  22,373        30,000         30,000       30,000        0.0%
52391   Information Technology Services           -             -              -          4,085      100.0%
52480   Sewer Line Monitoring                     -             -              -            -          0.0%
52650   Repairs - Communication                 2,115         4,000          4,000        4,000        0.0%

        Total Contracted Services             133,944       164,591        164,591      168,085         2.1%

53120   Chemicals                              44,746       101,000        101,000      100,000       -1.0%
53140   Fuel and Lubrication                   16,568        22,000         22,000       20,628       -6.2%
53150   Supplies - Other                       69,155        70,000         70,000       75,000        7.1%
53160   Supplies - Office                         770           800            800        2,000      150.0%
53170   Supplies - Data Processing                -           2,000          2,000       20,000      900.0%
53240   Repairs - Building                      1,498         5,000          5,000        5,000        0.0%
53290   Repairs - Manhole                       3,402         3,000          3,000        4,000       33.3%
53300   Repairs - Vehicle / Equipment          61,088        85,000         85,000       65,000      -23.5%
53340   Uniforms                                6,240         7,000          7,000        9,000       28.6%
53800   Base Materials                          5,054        20,000         20,000       15,000      -25.0%

        Total Materials and Supplies          208,521       315,800        315,800      315,628        -0.1%

54140   Dues and Subscriptions                    478           500            500        1,000      100.0%
54290   Mobile Communication System             1,540         3,000          3,000        2,500      -16.7%
54340   Professional Development                5,388         7,000          7,000       13,000       85.7%
54910   Safety Items                            3,612        10,000         10,000        8,000      -20.0%

        Total Other Charges                    11,017        20,500         20,500       24,500        19.5%

61040   Computer Equipment                     24,987           -              -            -           0.0%
61050   Light Vehicles                          4,482        56,000         56,000          -        -100.0%
61060   Heavy Equipment                        77,027       165,000        165,000       75,000       -54.5%
61100   Miscellaneous Equipment                83,256        18,000         18,000       12,000       -33.3%

        Total Capital Outlay                  189,752       239,000        239,000       87,000       -63.6%


Total Wastewater Collection                  1,113,794     1,354,342     1,357,758     1,375,010        1.5%




                                             274
Water Quality Services
Department Organization

                                                      City Manager



                                                   Water/ Wastewater
                                                   Utilities Director

                                                  Water/ WW Utilities
                                                  Operations Manager


                                           Water Quality Services Supervisor



                                              Water Quality Technician (3)




Mission Statement
The Water Quality Services division has the responsibility for administration and enforcement of Industrial Waste Discharge
Regulations (Ordinance 1991-55) and implementation of Ordinance 1991-53 pertaining to Industrial User Permit Fees,
Surcharge Fees, Commercial Waste Hauler Registration and Waste Receiving Fees.




Expenses by Category

                                                            Original
                                        Actual              Approved               Revised              Proposed
                                       2004-05              2005-06                2005-06              2006-07
    Personnel Services                      186,592               184,384               188,513               188,885
    Contracted Services                      78,270               135,500               135,500               212,352
    Materials and Supplies                   21,212                25,000                25,000                21,881
    Other Charges                             2,893                 7,000                 7,000                 7,750
    Capital Outlay                                0                32,000                32,000                22,000

    Total                                   288,967               383,884               388,013               452,868




                                                      275
Goals and Objectives

   •   To support the City of San Marcos’ responsibility in enforcing the Clean Water Act and Safe Drinking Water
       Act. We plan to monitor the wastewater and drinking water to ensure the safety of the city’s drinking water
       supply and to protect the wastewater system, personnel, and effluent discharge to the environment as required
       by the EPA and TCEQ. This includes 16 permitted users and approximately 300 commercial users. We will
       inspect and sample industrial and commercial facilities to ensure compliance and provide education to our
       customers.

What We Accomplished in 2005-06

   •   We collected over 2700 samples from approximately 300 commercial entities, 15 permitted Industrial Users, the
       city’s water distribution system, and the San Marcos River. We evaluated over 5000 test results and conducted
       approximately 1900 field tests. We conducted approximately 75 inspections of industrial and commercial users
       and educated approximately 80 commercial representatives on current issues. We reclassified one Significant
       Industrial User to a Categorical User and one Significant Industrial User to an Industrial User. We received
       final approval from the TCEQ of the new Local Limits and renewed 15 permits for Industrial Users
       incorporating the new Local Limits and other changes mandated by the TCEQ. We issued two Administrative
       Orders for violations of the city’s discharge ordinance.

What We Plan to Accomplish in 2006-07

   •   We will continue to enforce the Clean Water Act by monitoring the Industrial Users for permit compliance and
       the commercial users under the surcharge program. We will inspect Industrial Users and investigate undesirable
       changes in wastewater characteristics. We plan to educate our domestic users through daily communication.
       We will continue to sample for drinking water quality in our wells and distribution system plus we will continue
       to monitor the reclaimed water and the San Marcos River. We will begin development of the Stage 2
       monitoring plan ( IDSE) for disinfection byproducts and the LT2 plan for cryptosporidium monitoring in our
       drinking water. We will also participate in a joint effort with Texas State University for monitoring of
       endocrine disrupting compounds in our wastewater. The COSM and the TSU have entered into an Interlocal
       Agreement for collection, testing, and analysis of Endocrine Disruptor Chemicals which are unregulated organic
       contaminants increasingly under study regarding prevalence, environmental impacts and potential impacts on
       public health. These chemicals include pharmaceutical compounds, fire retardants, and many other commonly
       used products. The background information will be used to assess treatment technique effectiveness, identify
       possible point source influences and clarify issues concerning use of reclaimed water.




                                                   276
Performance Measures

                                                          Unit of       Actual   Estimated   Projected
                                                          Measure      2004-05    2005-06    2006-07
  Significant Industrial Users Inspections And Reports   Inspection
                                                                         60         64          68
  Prepared                                                Reports
  Wastewater Samples Collected And Tested
                                                          Chemical      4,960     5,070       5,400
  (Tests Performed By Outside Lab)                          Test
                                                          Chemical
  Wastewater Sample Tests Perform By City Staff                         2,720     2,760       2,800
                                                            Test
                                                         Issuance,
                                                         Transfers,
  Significant Industrial Permit Actions                  Renewals,       15         16          2
                                                            Mod-
                                                         ifications
  Industrial User Surcharge Facility                     Inspection
                                                                        360        380         385
  Inspections/Reports                                     Reports
                                                          Letters,
                                                          Memos,
  Correspondence Prepared                                                50         60          75
                                                          Guides,
                                                          Surveys
                                                          Meeting
  Working Meetings                                                      270        270         280
                                                           Hours
  Provide Educational Information For Pollution            People
                                                                        300        310         320
  Prevention To Commercial And Domestic Users             Reached
  Purchase Orders, Check Requests And Partial
                                                         Per Request    250        260         265
  Receiving Reports




                                                   277
            City of San Marcos                             Original
               Fiscal Year 2006/2007           Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget             2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 610 - Water/Wastewater Utility Fund
Department 202 - Water Quality Services

51100   Salaries                                128,671      128,149       131,353      131,353        2.5%
51110   W/C Insurance                             2,083        1,382         1,488        1,804       30.5%
51120   Overtime                                  3,222        3,079         3,079        3,079        0.0%
51190   Medicare                                  1,841        1,922         1,969        1,969        2.4%
51200   FICA                                      7,872        8,215         8,422        8,422        2.5%
51210   TMRS                                     18,612       18,853        19,330       19,330        2.5%
51220   Insurance                                23,132       21,520        21,520       21,520        0.0%
51300   Stability Pay                             1,160        1,264         1,352        1,408       11.4%
51310   Unemployment Comp. and Term. Leave          -            -             -            -          0.0%
51350   Car Allowance                               -            -             -            -          0.0%

        Total Personnel Services                186,592      184,384       188,513      188,885        2.4%

52100   Printing and Publications                 2,292        2,000         2,000        2,000       0.0%
52110   Telephone                                 1,704        3,500         3,500        3,500       0.0%
52160   Professional Services                    74,274      130,000       130,000      205,000      57.7%
52391   Information Technology Services             -            -             -          1,852     100.0%

        Total Contracted Services                78,270      135,500       135,500      212,352       56.7%

53120   Chemicals                                   300        1,000         1,000        1,000        0.0%
53130   Lab Equipment                             1,206        3,000         3,000        3,000        0.0%
53140   Fuel and Lubrication                      3,687        3,000         3,000        4,881       62.7%
53150   Supplies - Other                          9,176       10,000        10,000        5,000      -50.0%
53160   Supplies - Office                           243        2,500         2,500        2,500        0.0%
53170   Supplies - Data Processing                3,614          500           500          500        0.0%
53180   Postage                                     426          500           500          500        0.0%
53300   Repairs - Vehicle / Equipment               694        2,500         2,500        2,500        0.0%
53340   Uniforms                                  1,867        2,000         2,000        2,000        0.0%

        Total Materials and Supplies             21,212       25,000        25,000       21,881      -12.5%

54140   Dues and Subscriptions                      178          500           500          500        0.0%
54340   Professional Development                  2,323        5,000         5,000        5,750       15.0%
54910   Safety Items                                392        1,500         1,500        1,500        0.0%

        Total Other Charges                       2,893        7,000         7,000        7,750       10.7%

61050   Light Vehicles                               -        32,000        32,000       22,000      -31.3%
61100   Miscellaneous Equipment                      -           -             -            -          0.0%

        Total Capital Outlay                         -        32,000        32,000       22,000      -31.3%


Total Water Quality Services                    288,968      383,884       388,013      452,868       18.0%




                                               278
Water Distribution Maintenance
Department Organization

                                         City Manager


                                       Water/ Wastewater
                                       Utilities Director

                                      Water/ WW Utilities
                                      Operations Manager

                               Water/ WW Distribution Collection
                                         Manager


         Maintenance Support Technician                     Utility Crew Leader (3)


            Maintenance Support Clerk                                                 Equipment Operator II (3)


                                                                                      Equipment Operator I (8)




Mission Statement
The Water Distribution Maintenance Division operates and maintains a water distribution system that provides the community
and customers an ample supply of clean, potable water as mandated by state and federal agencies.




Expenses by Category

                                                             Original
                                        Actual               Approved                 Revised            Proposed
                                       2004-05               2005-06                  2005-06            2006-07
    Personnel Services                      687,477                838,509                781,363                 781,053
    Contracted Services                     142,782                176,601                176,601                 414,824
    Materials and Supplies                  353,245                380,600                380,600                 407,291
    Other Charges                            19,026                 25,700                 25,700                  25,900
    Capital Outlay                          207,650                116,000                116,000                 172,000

    Total                                 1,410,180              1,537,410              1,480,264            1,801,067




                                                      279
Goals and Objectives

   •   To operate and maintain the water distribution system that provides the community and customers with an
       ample supply of clean, potable water as mandated by State and Federal agencies.
   •   Protect the health and safety of the community and environment.
   •   Respond to all emergency and non-emergency calls in a safe and efficient manner.
   •   Provide education and training to Water Distribution personnel.
   •   Continue to survey and monitor the distribution system to minimize water loss.
   •   Continue to GPS our water system to insure accurate mapping.
What We Accomplished in 2005-06

   •   Installed 200 new water services.
   •   Repaired, replaced or maintained 200 fire hydrants.
   •   Changed out 600 water meters of ten years or older to ensure accuracy.
   •   Made over 200 repairs to water mains and service lines.
   •   Tested and repaired the top ten water users’ water meters to prevent revenue loss.
   •   Completed 2,500 work orders on maintenance and repairs on the distribution system.
   •   Responded to 600 calls for water line locates.
   •   GPS of over 1,000 points in the Water Distribution System.
What We Plan to Accomplish in 2006-07

   •   Continue to monitor and reduce unaccounted for water.
   •   Continue the leak detection survey of 75 linear miles of water mains.
   •   Continue to GPS all meters, valves and hydrants in the Water Distribution System.
   •   Continue to upgrade, change out and test meters.
   •   Prompt repair of all water leaks.
   •   Respond to all service calls in a safe and timely manner.
   •   Explore new ideas and products that will realize savings in cost.
   •   Continue to train and educate coworkers to encourage confidence.
Performance Measures

                                                          Unit of         Actual       Estimated     Projected
                                                          Measure        2004-05        2005-06      2006-07
   New Water Services                                       Each           110              150         200
   Meter Change Outs                                        Each           648              600         700
   Line Locates                                             Each           566              600         650
   Meter Maintenance                                        Each           743              700         700
   Water Main and Water Service Repairs                     Each           224              200         200
   Fire Hydrant Repairs/Replace                             Each            47              200         300
   Water Main & Service Relocate/Replace/Extension          Each             7              10           15
   Main Valve Repair/Replace                                Each            16              16           25




                                                   280
            City of San Marcos                                       Original
               Fiscal Year 2006/2007                    Actual      Approved       Estimated     Proposed     Percent of
                   Annual Budget                      2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 610 - Water/Wastewater Utility Fund
Department 204 - Water Distribution and Maintenance

51100   Salaries                                         446,680       527,051        489,195      489,195        -7.2%
51110   W/C Insurance                                      7,901         8,298          8,167        7,433       -10.4%
51120   Overtime                                          43,933        66,919         66,919       66,919         0.0%
51190   Medicare                                           6,835         8,660          8,117        8,117        -6.3%
51200   FICA                                              29,226        37,034         34,701       34,701        -6.3%
51210   TMRS                                              68,045        84,995         79,644       79,644        -6.3%
51220   Insurance                                         81,966       102,220         91,460       91,460       -10.5%
51300   Stability Pay                                      2,892         3,332          3,160        3,584         7.6%
51350   Car Allowance                                        -             -              -            -           0.0%

        Total Personnel Services                         687,477       838,509        781,363      781,053        -6.9%

52100   Printing and Publications                            938         1,000          1,000        1,000        0.0%
52110   Telephone                                          3,640         4,000          4,000        8,000      100.0%
52130   Equipment - Rent / Lease                           6,136        24,000         24,000       24,000        0.0%
52140   Power and Lights                                  98,616       100,601        100,601        5,000      -95.0%
52160   Professional Services                             30,150        42,000         42,000      367,000      773.8%
52391   Information Technology Services                      -             -              -          4,824      100.0%
52650   Repairs - Communication                            3,302         5,000          5,000        5,000        0.0%

        Total Contracted Services                        142,782       176,601        176,601      414,824      134.9%

53140   Fuel and Lubrication                              31,896        25,000         25,000       43,381       73.5%
53150   Supplies - Other                                 158,184       142,000        142,000      120,000      -15.5%
53160   Supplies - Office                                  2,291         1,500          1,500        2,000       33.3%
53170   Supplies - Data Processing                           180         3,000          3,000       33,810     1027.0%
53180   Postage                                              100           100            100          100        0.0%
53230   Repairs - Water Meters                             1,371        10,000         10,000       10,000        0.0%
53300   Repairs - Vehicle / Equipment                     72,394       100,000        100,000       80,000      -20.0%
53340   Uniforms                                           6,302         9,000          9,000        9,000        0.0%
53390   Supplies - Meters                                 38,920        45,000         45,000       62,000       37.8%
53440   Supplies - Valves                                 15,920        15,000         15,000       17,000       13.3%
53800   Base Materials                                    25,687        30,000         30,000       30,000        0.0%

        Total Materials and Supplies                     353,245       380,600        380,600      407,291         7.0%

54140   Dues and Subscriptions                               876         1,500          1,500        1,200       -20.0%
54290   Mobile Communication System                        4,894         8,700          8,700        5,700       -34.5%
54340   Professional Development                           9,847        10,000         10,000       13,000        30.0%
54910   Safety Items                                       3,409         5,500          5,500        6,000         9.1%

        Total Other Charges                               19,026        25,700         25,700       25,900         0.8%

61050   Light Vehicles                                    95,766           -              -            -           0.0%
61060   Heavy Equipment                                   84,843        85,000         85,000      142,000        67.1%
61100   Miscellaneous Equipment                           27,041        31,000         31,000       30,000        -3.2%

        Total Capital Outlay                             207,650       116,000        116,000      172,000        48.3%


Total Water Distribution and Maintenance                1,410,180     1,537,410     1,480,264     1,801,067       17.1%




                                                        281
Administration
Department Organization


                                        City Manager


                             Water/ Wastewater Utilities Director


                         Water/ WW Utilities Operations Manager


                                                           Water Conservation Representative


                                                               CADD System Coordinator


                                                                    Project Coordinator


                                                                    Department Secretary

                                                         Water/ Wastewater Utilities Technician




Mission Statement
Provide planning, direction and administrative support for all divisions within the Water and Wastewater Utilities Department
including Water Distribution, Water Production, Wastewater Collection, Wastewater Disposal and Industrial Pretreatment.



Expenses by Category

                                                             Original
                                         Actual              Approved               Revised               Proposed
                                        2004-05              2005-06                2005-06               2006-07
    Personnel Services                       403,174                 436,032               519,585              514,681
    Contracted Services                        7,592                 111,350               111,350               83,287
    Materials and Supplies                    47,797                  44,900                44,900               55,620
    Other Charges                             12,328                  39,300                39,300               39,900
    Capital Outlay                                 0                  80,000                80,000                    0

    Total                                    470,891                 711,582               795,135              693,488




                                                       282
Goals and Objectives
   To act as the initial contact point for all customer and citizen concerns involving water and/or wastewater. Provide
   management, technical, fiscal and administrative guidance and support to all divisions within this department.
   Personnel within this division:
   • Prepare, control and distribute work orders to repair infrastructure problems (water leaks, wastewater problems,
       water quality concerns, etc.)
   • Contact, dispatch and monitor locations of work crews (via radio or telephone) to repair reported infrastructure
       problems.
   • Attend public forums to disseminate information on all on going infrastructure projects as well as receiving
       comments and suggestions from the general public.
   • Provide a public service education program that keeps citizens informed of contemporary issues such as water
       conservation initiatives.
   • Direct and/or approve all department budget preparations and submissions and review expenditures.

What We Accomplished in 2005-06

   •   Responded to over 10,000 customer calls for service.
   •   Enhanced the cross-connection, backflow prevention program to include GIS address location, field attributes,
       and asset specifications in the City’s mapping system and the Maximo ActiveG software.
   •   Upgrade the mapping system to further increase the precision and accuracy.
   •   Upgraded and assist other departments with the Maximo 5.2 upgrade.
   •   Support numerous public forums with representatives and equipment.
   •   Reduction in personnel and overall operating costs to operate the WWTP and the ground well facilities by
       commencement of the new GBRA/OMI service contract agreements.
   •   Provided department personnel software training in ActiveG, Maximo, ArcGIS, Leica GPS RS-500, and ArcPad by
       the GIS/IT Coordinators for wireless field communications for infrastructure repairs.

What We Plan to Accomplish in 2006-07

   •   Provide guidance and management to all divisions of Water/Wastewater Utilities.
   •   Continue to expand water conservation rebate and incentive programs for both single-family and multi-family
       residential customers.
   •   Update the water conservation/drought management code of ordinance.
   •   Optimization of wireless communications and electronic field equipment for the water distribution/sewer
       collection maintenance program and the cross-connection, backflow prevention program.




                                                    283
Performance Measures

                                                       Unit of         Actual   Estimated   Projected
                                                       Measure        2004-05    2005-06    2006-07
                                                       Telephone
                                                        calls and
  Citizen Service Requests                                             3,750     4,500       5,000
                                                         walk in
                                                       customers
                                                          Work
  Work Orders/Service Calls                                            9,250     9,500       9,750
                                                          Orders
                                                       Plans and
  Review Building Plans/Plats                                          450        450         450
                                                           Plats
                                                         Letters,
                                                         memos,
  Correspondence                                                       800        800         800
                                                        invoices,
                                                      reports, etc.
  Plumbing Retrofit Program (low-flow showerheads      Number of
  and faucet aerators for single and multi-family        devices       1,317     2,500       2,500
  residential customers)                               Retrofitted
  Residential Water Audits (for single and multi-      Number of
                                                                       496        500         500
  family customers)                                    residences
                                                       Number of
  Water Conservation School Education Program                          6,500     6,500       6,500
                                                         students
                                                         #of GIS
                                                           data
  GIS Data Maintenance                                   features      1,300     4,300       9,300
                                                      updated/cre
                                                           ated
  GPS Data Collection                                  # of Points     1,715     3,000       5,000




                                                284
            City of San Marcos                                       Original
               Fiscal Year 2006/2007                   Actual       Approved      Estimated     Proposed    Percent of
                   Annual Budget                     2004/2005      2005/2006    2005/2006     2006/2007     Change

Fund 610 - Water/Wastewater Utility Fund
Department 205 - Water / Wastewater Administration

51100   Salaries                                        299,053        316,681       380,391      375,940       18.7%
51110   W/C Insurance                                       703            576           724          652       13.2%
51120   Overtime                                              9          3,354         3,354        3,354        0.0%
51190   Medicare                                          4,417          4,746         5,678        5,613       18.3%
51200   FICA                                             18,884         20,030        24,271       23,995       19.8%
51210   TMRS                                             43,732         45,795        54,945       54,311       18.6%
51220   Insurance                                        29,538         37,660        43,040       43,040       14.3%
51300   Stability Pay                                     2,038          1,790         1,782        2,376       32.7%
51350   Car Allowance                                     4,800          5,400         5,400        5,400        0.0%

        Total Personnel Services                        403,174        436,032       519,585      514,681       18.0%

52100   Printing and Publications                           5,525        4,000         4,000        4,000        0.0%
52110   Telephone                                           1,528        3,000         3,000        3,330       11.0%
52160   Professional Services                                 540       56,000        56,000       45,000      -19.6%
52391   Information Technology Services                       -         48,350        48,350       30,957      -36.0%

        Total Contracted Services                           7,592      111,350       111,350       83,287      -25.2%

53150   Supplies - Other                                   13,283       10,000        10,000        5,760     -42.4%
53160   Supplies - Office                                   1,387        2,000         2,000        2,000       0.0%
53170   Supplies - Data Processing                          1,370        1,500         1,500       16,460     997.3%
53180   Postage                                             1,798        2,000         2,000        2,000       0.0%
53385   Supplies - Water Conservation                      29,959       29,400        29,400       29,400       0.0%

        Total Materials and Supplies                       47,797       44,900        44,900       55,620       23.9%

54140   Dues and Subscriptions                              1,959        3,000         3,000        2,500      -16.7%
54340   Professional Development                            2,869        7,000         7,000        7,000        0.0%
54710   Water Conservation Rebate Program                   7,500       29,300        29,300       30,400        3.8%

        Total Other Charges                                12,328       39,300        39,300       39,900        1.5%

61040   Computer Equipment                                    -         10,000        10,000          -       -100.0%
61100   Miscellaneous Equipment                               -         70,000        70,000          -       -100.0%

        Total Capital Outlay                                  -         80,000        80,000          -       -100.0%


Total Water/Wastewater Administration                   470,891        711,582       795,135      693,488       -2.5%




                                                     285
Special Services
Department Organization

The Special Services Division is used to account for a variety of non-direct expenses. Examples of expenses include utilities,
insurance, bank charges and operating transfers.




Expenses by Category

                                                              Original
                                         Actual               Approved               Revised               Proposed
                                        2004-05               2005-06                2005-06               2006-07
    Personnel Services                         26,686                84,201                20,000                218,736
    Contracted Services                     2,273,012             2,479,971             4,479,971              5,072,672
    Materials and Supplies                      9,440                20,075                20,075                  7,647
    Other Charges                           4,891,727             5,126,059             5,217,674              5,761,195
    Operating Transfers                     1,218,157                     0             1,380,000                      0
    Capital Outlay                                115             3,000,000             3,000,000              1,030,000
    Debt Service                            5,756,361             6,330,838             6,185,435              7,675,166

    Total                                 14,175,498             17,041,144            20,303,155            19,765,416




                                                        286
            City of San Marcos                                        Original
               Fiscal Year 2006/2007                     Actual      Approved       Estimated     Proposed     Percent of
                   Annual Budget                       2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 610 - Water/Wastewater Utility Fund
Department 210 - Special Services

51310   Unemployment Comp. and Term. Leave                 26,686        20,000         20,000       24,000       20.0%
51320   Market / Merit / COLA Increase                        -          64,201            -        194,736      203.3%

        Total Personnel Services                           26,686        84,201         20,000      218,736      159.8%

52010   Copier Rental                                      32,673        40,000         40,000        20,368     -49.1%
52100   Printing and Publications                           7,835        40,000         40,000        45,000      12.5%
52130   Equipment - Rent / Lease                              -          38,221         38,221        38,221       0.0%
52160   Professional Services                              47,242        47,000         47,000        55,000      17.0%
52205   Household Hazardous Waste Program                  25,000        25,000         25,000        25,000       0.0%
52340   WWTP O&M - OMI Contract                               -             -        1,900,000     1,557,658     100.0%
52341   WWTP Power Cost - OMI Contract                        -             -              -         304,587     100.0%
52345   SWTP O&M - GBRA Contract                          626,775       615,000        715,000       961,067      56.3%
52346   SWTP Power Cost - GBRA Contract                   147,353       164,545        164,545       342,000     107.8%
52347   Raw Water Delivery System O&M                     154,409       166,700        166,700       220,460      32.2%
52391   Information Technology Services                       -             -              -          54,672     100.0%
52440   Edwards Aquifer Litigation                         11,683        50,000         50,000        50,000       0.0%
52510   EAA Management Fee                                 84,581       101,440        101,440       103,468       2.0%
52570   Surface Water                                     440,000       470,800        470,800       573,907      21.9%
52571   Raw Water Delivery System Debt Service            657,495       656,265        656,265       656,265       0.0%
52740   Maintenance - Public Works Office                  37,967        65,000         65,000        65,000       0.0%

        Total Contracted Services                        2,273,012     2,479,971     4,479,971     5,072,672     104.5%

53150   Supplies - Other                                    5,508         5,075          5,075        5,500         8.4%
53380   Supplies - Copier                                   3,933        15,000         15,000        2,147       -85.7%

        Total Materials and Supplies                        9,440        20,075         20,075        7,647       -61.9%

54120   Tuition Reimbursement Program                        1,986           -             -          12,700      100.0%
54160   Insurance                                          135,532       150,000       150,000       153,000        2.0%
54190   Utility Bill Assistance Program                        -             -          15,000        15,000      100.0%
54210   Assessment Centers                                     874         5,000         5,000         6,250       25.0%
54215   Market Study                                           -           5,000         5,000           -       -100.0%
54260   Training - Supervisory                               2,335         2,500         2,500         2,500        0.0%
54600   Contingency Funds                                      -         100,000       100,000       100,000        0.0%
54740   Allowance for Bad Debt                             189,545       145,000       145,000       190,000       31.0%
54750   Bank Charges                                        72,970        60,000        60,000        91,250       52.1%
54800   Reimbursement to General Fund (100)              2,293,475     2,382,511     2,382,511     2,403,390        0.9%
54805   Reimbursement to Electric Utility Fund (650)       227,500       350,000       350,000       750,000      114.3%
54870   ADA Compliance / Training                              975         1,000         1,000         1,000        0.0%
54890   Customer Service Training                            1,000         1,000         1,000         1,000        0.0%
54915   Safety Program                                      19,866        20,000        20,000        20,000        0.0%
54920   Employee Recognition                                 2,395         5,700         5,700         5,700        0.0%
54940   Employee Group Activities                            4,793         6,800         6,800         6,800        0.0%
54970   Franchise Fee                                    1,793,613     1,891,548     1,968,163     2,002,605        5.9%

        Total Other Charges                              4,746,859     5,126,059     5,217,674     5,761,195       12.4%




                                                         287
             City of San Marcos                                Original
                Fiscal Year 2006/2007             Actual      Approved       Estimated     Proposed     Percent of
                    Annual Budget               2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 610 - Water/Wastewater Utility Fund
Department 210 - Special Services (continued)

58420   Op Trsfr - General Fund CIP (420)          523,117            -         475,000           -          0.0%
58480   Op Trsfr - Wastewater CIP (480)                -              -             -             -          0.0%
58490   Op Trsfr - Fund (490)                       23,000            -             -             -
58620   Op Trsfr - Wastewater CIP Fund (620)       192,040            -         905,000           -
58630   Op Trsfr - Water CIP (630)                 380,000            -             -             -          0.0%
58660   Op Trsfr - Electric CIP (660)              100,000            -             -             -          0.0%

        Total Operating Transfers                 1,218,157           -       1,380,000           -          0.0%

61300   System Improvements                             -       3,000,000     3,000,000     1,030,000      -65.7%
61310   Fuel Tank Cleanup                               115           -             -             -          0.0%

        Total Capital Outlay                            115     3,000,000     3,000,000     1,030,000      -65.7%

81000   Prior Period Adjustment                    144,868            -             -             -          0.0%

        Total Prior Period Adjustments             144,868            -             -             -          0.0%




Total Special Services                            8,419,137    10,710,306    14,117,720    12,090,251       12.9%




                                                  288
            City of San Marcos                                Original
                Fiscal Year 2006/2007           Actual       Approved      Estimated     Proposed    Percent of
                    Annual Budget             2004/2005      2005/2006    2005/2006     2006/2007     Change

Fund 610 - Water/Wastewater Utility Fund
Division 460 - 1995 Refunding Revenue Bonds

71150   Principal Payments                      1,455,000           -             -            -          0.0%
71200   Interest Payments                           1,818           -             -            -          0.0%
71300   Fiscal Agent Fees                             755           -             -            -          0.0%

Total                                           1,457,573           -             -            -          0.0%



Fund 610 - Water/Wastewater Utility Fund
Division 461 - 1998 Refunding Bonds

71150   Principal Payments                       375,000        270,000       270,000      290,000        7.4%
71200   Interest Payments                        259,694         36,400        36,400       18,850      -48.2%
71300   Fiscal Agent Fees                            716          1,250         1,250        1,250        0.0%

        Total                                    635,410        307,650       307,650      310,100        0.8%



Fund 610 - Water/Wastewater Utility Fund
Division 463 - 1996A Revenue Bonds

71150   Principal Payments                       100,000        100,000       100,000          -       -100.0%
71200   Interest Payments                         28,051          3,188         3,188          -       -100.0%
71300   Fiscal Agent Fees                            567          1,250         1,250          -       -100.0%

        Total                                    128,618        104,438       104,438          -       -100.0%



Fund 610 - Water/Wastewater Utility Fund
Division 464 - 1996 Revenue Bonds

71150   Principal Payments                       100,000            -             -            -          0.0%
71200   Interest Payments                        (51,476)           -             -            -          0.0%
71300   Fiscal Agent Fees                            567            -             -            -          0.0%

        Total                                       49,091          -             -            -          0.0%



Fund 610 - Water/Wastewater Utility Fund
Division 465 - 1996B Revenue Bonds

71150   Principal Payments                         5,000        250,000       250,000      350,000       40.0%
71200   Interest Payments                        298,830        294,083       294,083      282,658       -3.9%
71300   Fiscal Agent Fees                            567          1,250         1,250        1,250        0.0%

        Total                                    304,397        545,333       545,333      633,908       16.2%




                                              289
            City of San Marcos                             Original
                Fiscal Year 2006/2007        Actual       Approved      Estimated     Proposed    Percent of
                    Annual Budget          2004/2005      2005/2006    2005/2006     2006/2007     Change

Fund 610 - Water/Wastewater Utility Fund
Division 466 - 1996C Revenue Bonds

71150   Principal Payments                       50,000       50,000        50,000       20,000      -60.0%
71200   Interest Payments                        33,851        2,270         2,270          510      -77.5%
71300   Fiscal Agent Fees                           567        1,250         1,250        1,250        0.0%

        Total                                    84,418       53,520        53,520       21,760      -59.3%



Fund 610 - Water/Wastewater Utility Fund
Division 467 - 1997 Revenue Bonds

71150   Principal Payments                       50,000       50,000        50,000      150,000     200.0%
71200   Interest Payments                        44,850       10,200        10,200        6,900     -32.4%
71300   Fiscal Agent Fees                           716        1,250         1,250        1,250       0.0%

        Total                                    95,566       61,450        61,450      158,150     157.4%



Fund 610 - Water/Wastewater Utility Fund
Division 468 - 1999 Revenue Bonds

71150   Principal Payments                    260,000        270,000       270,000      285,000        5.6%
71200   Interest Payments                     242,871        233,959       233,959      223,159       -4.6%
71300   Fiscal Agent Fees                         716          1,250         1,250        1,250        0.0%

        Total                                 503,586        505,209       505,209      509,409        0.8%



Fund 610 - Water/Wastewater Utility Fund
Division 470 - 2000 Revenue Bonds

71150   Principal Payments                    300,000        100,000       100,000      100,000        0.0%
71200   Interest Payments                     197,049        183,650       183,650      178,275       -2.9%
71300   Fiscal Agent Fees                         716          1,250         1,250        1,250        0.0%

        Total                                 497,764        284,900       284,900      279,525       -1.9%



Fund 610 - Water/Wastewater Utility Fund
Division 471 - 2003 Revenue Bonds

71150   Principal Payments                        -          280,000       280,000      290,000        3.6%
71200   Interest Payments                     220,100        220,100       220,100      208,200       -5.4%
71300   Fiscal Agent Fees                         300          1,250         1,250        1,250        0.0%

        Total                                 220,400        501,350       501,350      499,450       -0.4%




                                           290
            City of San Marcos                           Original
                Fiscal Year 2006/2007        Actual     Approved       Estimated     Proposed     Percent of
                    Annual Budget          2004/2005    2005/2006     2005/2006     2006/2007      Change

Fund 610 - Water/Wastewater Utility Fund
Division 472 - 2004 Revenue Bonds

71150   Principal Payments                        -        280,000        280,000      290,000         3.6%
71200   Interest Payments                     321,104      321,104        321,104      308,504        -3.9%
71300   Fiscal Agent Fees                         -          1,250          1,250        1,250         0.0%

        Total                                 321,104      602,354        602,354      599,754        -0.4%

Fund 610 - Water/Wastewater Utility Fund
Division 473 - 2004A Revenue Bonds

71150   Principal Payments                    125,000     1,350,000     1,350,000     1,235,000       -8.5%
71200   Interest Payments                     840,777       874,593       874,593       834,093       -4.6%
71300   Fiscal Agent Fees                         -           1,250         1,250         1,250        0.0%

        Total                                 965,777     2,225,843     2,225,843     2,070,343       -7.0%

Fund 610 - Water/Wastewater Utility Fund
Division 474 - 2005 Refunding Bonds

71150   Principal Payments                    185,000       65,000         65,000      165,000      153.8%
71200   Interest Payments                     307,655      730,836        730,836      728,886       -0.3%
71300   Fiscal Agent Fees                         -          1,250          1,250        1,250        0.0%

        Total                                 492,655      797,086        797,086      895,136        12.3%

Fund 610 - Water/Wastewater Utility Fund
Division 475 - 2005A Revenue Bonds

71150   Principal Payments                        -            -           75,000       20,000       100.0%
71200   Interest Payments                         -            -          120,054      167,155       100.0%
71300   Fiscal Agent Fees                         -            -            1,250        1,250       100.0%
71100   New Debt Payments                         -        341,706            -            -        -100.0%

        Total                                     -        341,706        196,304      188,405       -44.9%

Fund 610 - Water/Wastewater Utility Fund
Division 476 - 2006 Revenue Bonds

71150   Principal Payments                        -             -             -            -          0.0%
71200   Interest Payments                         -             -             -        466,367      100.0%
71300   Fiscal Agent Fees                         -             -             -            -          0.0%

        Total                                     -             -             -        466,367      100.0%




                                           291
            City of San Marcos                            Original
                Fiscal Year 2006/2007        Actual      Approved       Estimated     Proposed     Percent of
                    Annual Budget          2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 610 - Water/Wastewater Utility Fund
Division 477 - 2006A Revenue Bonds

71150   Principal Payments                         -             -             -            -          0.0%
71200   Interest Payments                          -             -             -        210,387      100.0%
71300   Fiscal Agent Fees                          -             -             -            -          0.0%

        Total                                      -             -             -        210,387      100.0%


Fund 610 - Water/Wastewater Utility Fund
Division 478 - New Debt Issued

71100   New Debt Payments                          -            -              -        832,474      100.0%

        Total                                      -            -              -        832,474      100.0%

Summary
 Principal Payments                          3,005,000     3,065,000     3,140,000     3,195,000       4.2%
  Interest Payments                          2,745,175     2,910,381     3,030,435     3,633,942      24.9%
  Fiscal Agent Fees                              6,186        13,750        15,000        13,750       0.0%
  New Debt Payments                                -         341,706           -         832,474     143.6%

Total Debt Service                           5,756,361     6,330,838     6,185,435     7,675,166       21.2%




                                             292
                                CITY OF SAN MARCOS
                                           2006-07 ANNUAL BUDGET
                                           DRAINAGE UTILITY FUND
                                            FINANCIAL FORECAST

                                                FY 2005      FY 2006       FY 2007       FY 2008       FY 2009

Operating Revenues
 Interest Income                                   87,420        52,892        40,676        35,807       10,824
 Drainage Service Revenue                         865,311     1,002,162     1,222,744     1,228,857    1,235,002
 Charges from Other Services                       12,701        12,600        12,600        12,600       12,600
 Other Revenue                                        -             -             -             -            -

Total Operating Revenues                          965,431     1,067,654     1,276,020     1,277,264    1,258,426

Operating Expenses
 Contracted Services                              305,383      327,405       357,368       375,236      393,998
 Other Charges                                     86,544        7,500        10,000        10,000       10,000
 Debt Service                                     337,658      444,973       542,128       524,784      530,184

Total Operating Expenses                          729,586      779,878       909,496       910,020      934,182

Operating Income / (Loss)                         235,846      287,776       366,524       367,244      324,244

One-Time Revenues
 Prior Period Adjustment                               -            -             -             -            -
 Operating Transfer to Drainage CIP Fund               -            -             -             -            -

One-Time Expenses
 Capital Outlay                                        -            -            -              -            -
 One-Time Operating Transfers                          -        155,345          -              -            -
 System Improvements                                   -      1,150,000      800,000      1,200,000          -
 Prior Period Adjustment                               -            -            -              -            -

Net Change in Fund Balance                         235,846   (1,017,569)     (433,476)     (832,756)    324,244
Beginning Unreserved Fund Balance                2,408,759    2,644,605     1,627,036     1,193,560     360,804
Ending Unreserved Fund Balance                   2,644,605    1,627,036     1,193,560      360,804      685,047

Percentage of Operating Expenses                   362.5%       208.6%        131.2%          39.6%       73.3%

Days of Operation                                   1,323          761           479           145          268




                                                    293
                               CITY OF SAN MARCOS
                                            2006-07 ANNUAL BUDGET
                                            DRAINAGE UTILITY FUND
                                                       Actual        Approved         Revised         Proposed
                                                     2004/2005       2005/2006       2005/2006       2006/2007


Operating Revenues
 Interest Income                                           87,420         37,491          52,892          40,676
 Drainage Utility Fee                                     865,311      1,015,206       1,002,162       1,222,744
 Penalties                                                 12,701            -            12,600          12,600
 Other Revenue                                                -              -               -               -

Total Operating Revenues                                  965,431      1,052,697       1,067,654       1,276,020

Operating Expenses
 Contracted Services                                      305,383        327,405         327,405         357,368
 Other Charges                                             86,544          7,500           7,500          10,000
 Debt Service                                             337,658        444,973         444,973         542,128

Total Operating Expenses                                  729,586        779,878         779,878         909,496

Operating Income/ (Loss)                                  235,846        272,820         287,776         366,524

One-Time Revenues
 Residual Transfer from Drainage CIP Fund                        -               -               -               -
 Prior Period Adjustment                                         -               -               -               -

One-Time Expenses
 Capital Outlay                                                  -           -               -               -
 System Improvements                                             -     1,150,000       1,150,000         800,000
 Operating Transfer to Drainage CIP Fund                         -           -           155,345             -
 Prior Period Adjustment                                         -

Net Change in Fund Balance                                 235,846      (877,181)     (1,017,569)       (433,476)
Beginning Unreserved Fund Balance                        2,408,759     2,644,605       2,644,605       1,627,036

Ending Unreserved Fund Balance                           2,644,605     1,767,424       1,627,036       1,193,560


Fund Balance as a Percentage of Total Expenses            362.48%        226.63%         208.63%         131.23%




                                                   294
             City of San Marcos                            Original
                Fiscal Year 2006/2007          Actual     Approved       Estimated     Proposed     Percent of
                    Annual Budget            2004/2005    2005/2006     2005/2006     2006/2007      Change

Fund 615 - Drainage Utility Fund
Department 215 - Special Services

52160   Professional Services                   255,383      277,405        277,405      307,368        10.8%
52675   Drainage Maintenance                     50,000       50,000         50,000       50,000         0.0%

        Total Contracted Services               305,383      327,405        327,405      357,368         9.2%


54740   Allowance for Bad Debt                   86,544        7,500          7,500       10,000        33.3%

        Total Other Charges                      86,544        7,500          7,500       10,000        33.3%


58100   Op Trsfr - General Fund (100)                -            -             -            -           0.0%
58616   Op Trsfr - Drainage CIP Fund (616)           -            -         155,345          -           0.0%

        Total Operation Transfers                    -            -         155,345          -           0.0%


61060   Heavy Equipment                              -            -             -            -           0.0%
61300   System Improvements                          -      1,150,000     1,150,000      800,000       -30.4%

        Total Capital Outlay                         -      1,150,000     1,150,000      800,000       -30.4%




Total Special Services                          391,927     1,484,905     1,640,250     1,167,368      -21.4%




                                               295
            City of San Marcos                        Original
                Fiscal Year 2006/2007     Actual     Approved      Estimated     Proposed    Percent of
                    Annual Budget       2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 615 - Drainage Utility Fund
Department 220 - 2003 CO Issuance

71150   Principal Payments                  70,000       30,000        30,000       30,000        0.0%
71200   Interest Payments                  130,272      129,213       129,213      127,938       -1.0%
71300   Fiscal Agent Fees                      150        1,250         1,250        1,250        0.0%

        Total                              200,422      160,463       160,463      159,188       -0.8%



Fund 615 - Drainage Utility Fund
Department 221 - 2004 CO Issuance

71150   Principal Payments                     -        140,000       140,000      145,000        3.6%
71200   Interest Payments                  137,236      143,260       143,260      139,060       -2.9%
71300   Fiscal Agent Fees                      -          1,250         1,250        1,250        0.0%

        Total                              137,236      284,510       284,510      285,310        0.3%



Fund 615 - Drainage Utility Fund
Department 222 - 2005 CO Issuance

71100   New Debt Payments                       -           -             -         97,630     100.0%

        Total                                   -           -             -         97,630     100.0%



Summary
 Principal Payments                         70,000      170,000       170,000      175,000       2.9%
 Interest Payments                         267,508      272,473       272,473      266,998      -2.0%
 Fiscal Agent Fees                             150        2,500         2,500        2,500       0.0%
 New Debt Payments                             -            -             -         97,630     100.0%

Total Debt Service                         337,658      444,973       444,973      542,128       21.8%




                                          296
                                CITY OF SAN MARCOS
                                            2006-07 ANNUAL BUDGET
                                            ELECTRIC UTILITY FUND
                                             FINANCIAL FORECAST
                                                 FY 2005      FY 2006        FY 2007         FY 2008          FY 2009

Operating Revenues
 Interest Income                                    245,494      441,775        381,783         444,712         461,238
 Electric Service Revenue                        36,324,686   37,051,180     45,958,848      46,418,436      46,882,621
 Charges from Other Services                        849,595      750,613        761,851         773,257         784,835
 Other Revenue                                      289,714      132,950        134,126         135,324         136,544
 Reimbursements from Other Funds                    227,500      350,000        750,000         750,000         750,000

Total Operating Revenues                         37,936,988   38,726,517     47,986,608      48,521,729      49,015,237

Operating Expenses
 Personnel Services                               2,544,372    2,771,903      2,970,936       3,119,483       3,275,457
 Contracted Services                                623,357      994,557      1,025,778       1,046,293       1,067,219
 Purchase of Power                               25,892,353   26,280,738     34,361,504      34,705,119      35,052,170
 Materials and Supplies                             401,023      384,876        423,944         432,423         441,071
 Other Charges                                      786,902    1,204,357      1,186,595       1,210,327       1,234,533
 Franchise Fee                                    3,632,469    3,334,606      3,370,785       4,177,659       4,219,436
 Reimbursement to Other Funds                     1,187,974    1,232,915      1,270,589       1,296,001       1,321,921
 Debt Service                                     1,194,405    1,207,183      1,205,708       1,222,270       1,294,413

Total Operating Expenses                         36,262,855   37,411,135     45,815,838      47,209,575      47,906,221

Operating Income / (Loss)                         1,674,133    1,315,382      2,170,769       1,312,154       1,109,017

One-Time Revenues
 LCRA Refunds and Rebates                         1,619,697         -               -               -               -
 Residual Transfer from Electric CIP Fund               -       434,128             -               -               -
 Prior Period Adjustment                                -           -               -               -               -

One-Time Expenses
 One-Time Operating Transfers                      683,942       475,000           -               -               -
 Capital Outlay                                    292,096       609,800       597,556         500,000         500,000
 System Improvements                                   -       2,164,500           -           399,000             -

Net Change in Fund Balance                        2,317,792   (1,499,790)     1,573,213         413,154         609,017
Beginning Unreserved Fund Balance                 8,726,586   11,044,377      9,544,587      11,117,801      11,530,955
Ending Unreserved Fund Balance                   11,044,377    9,544,587     11,117,801      11,530,955      12,139,972

Percentage of Operating Expenses                     30.5%         25.5%          24.3%           24.4%           25.3%

Days of Operation                                      111              93              89              89              92




                                                     297
                                CITY OF SAN MARCOS
                                            2006-07 ANNUAL BUDGET
                                            ELECTRIC UTILITY FUND
                                                        Actual         Approved         Revised        Proposed
                                                      2004/2005        2005/2006       2005/2006      2006/2007


Operating Revenues
 Interest Income                                          245,494           93,200         441,775        381,783
 Sales Tax Discount                                         4,295            4,200           4,200          4,242
 Electric Service Revenue                              36,324,686       28,609,614      37,051,180     45,958,848
 Additional LCRA Increase                                     -                -               -              -
 Connections - Electric                                   266,250          172,205         268,913        272,946
 Reconnection Charges                                      89,185           41,500          41,500         42,123
 Penalties                                                489,865          436,000         436,000        442,540
 Other Revenue                                            192,902           46,100          46,100         47,022
 Pole Attachment Fee                                       69,950           57,250          69,950         69,950
 NSF Service Charges                                       11,310            6,800           6,800          6,902
 Miscellaneous Service Charges                             15,551           10,100          10,100         10,252
 Reimbursement from Other Funds                           227,500          227,500         350,000        750,000

Total Operating Revenues                               37,936,988       29,704,469      38,726,517     47,986,608

Operating Expenses
 Personnel Services                                     2,544,372        2,772,681       2,771,903      2,970,936
 Purchase of Power                                     25,892,353       23,362,665      26,280,738     34,361,504
 Contracted Services                                      623,357          994,557         994,557      1,025,778
 Materials and Supplies                                   401,023          384,876         384,876        423,944
 Other Charges                                          1,974,876        2,364,737       2,437,272      2,457,184
 Franchise Fee                                          3,632,469        3,039,196       3,334,606      3,370,785
 Debt Service                                           1,194,405        1,207,183       1,207,183      1,205,708

 Total Operating Expenses                              36,262,855       34,125,895      37,411,135     45,815,838

Operating Income/ (Loss)                                   1,674,133    (4,421,426)      1,315,382      2,170,769

One-Time Revenues
 LCRA Refunds and Rebates                                  1,619,697               -           -                  -
 Residual Transfer from Electric CIP Fund                        -                 -       434,128                -
 Prior Year Adjustments                                          -                 -           -                  -

One-Time Expenses
 One-Time Operating Transfers                               683,942            -           475,000            -
 Capital Outlay                                             292,096        609,800         609,800        597,556
 System Improvements                                            -        2,164,500       2,164,500            -

 Net Change in Fund Balance                                2,317,792    (7,195,726)     (1,499,790)     1,573,213
 Beginning Unreserved Fund Balance                         8,726,586     9,644,588      11,044,377      9,544,587

Ending Unreserved Fund Balance                         11,044,377        2,448,862       9,544,587     11,117,801


Fund Balance as a Percentage of Operating Expenses           30.46%           7.18%         25.51%         24.27%




                                                     298
                                   CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                                      ELECTRIC UTILITY FUND
                                                 Actual        Approved       Revised       Proposed
                                               2004/2005       2005/2006     2005/2006     2006/2007




Customer Information
 Personnel Services                                  63,512         64,923        66,410        66,432
 Contracted Services                                 34,546         21,500        21,500        21,500
 Materials and Supplies                               4,850          8,700         8,700        10,260
 Other Charges                                        1,701          3,900         3,900         3,400
 Capital Outlay                                         -              -             -             -

                           Total                    104,609         99,023       100,510       101,592


Meter Operations
 Personnel Services                                 354,102        360,844       366,433       366,649
 Contracted Services                                 11,926          8,329         8,329         8,229
 Materials and Supplies                              35,530         31,090        31,090        43,213
 Other Charges                                        4,235          5,824         5,824         5,824
 Capital Outlay                                      87,377        105,000       105,000       118,000

                           Total                    493,170        511,087       516,677       541,915


Operations
 Personnel Services                                635,143         678,516       693,688       693,938
 Purchase of Power                              25,892,353      23,362,665    26,280,738    34,361,504
 Contracted Services                                83,631         107,120       107,120       125,018
 Materials and Supplies                             18,249          35,598        35,598        50,173
 Other Charges                                       7,308           9,358         9,358         9,526
 Capital Outlay                                        -               -             -          70,000

                           Total                26,636,684      24,193,257    27,126,502    35,310,159


Maintenance
 Personnel Services                                 908,308        974,831       997,306       997,536
 Contracted Services                                182,796        253,674       253,674       258,737
 Materials and Supplies                             292,481        228,488       228,488       244,251
 Other Charges                                        8,775          8,945         8,945         9,050
 Capital Outlay                                     194,719        504,800       504,800       409,556

                           Total                   1,587,079     1,970,738     1,993,213     1,919,130


Utility Billing & Collections
 Personnel Services                                 576,717        613,663       628,067       628,634
 Contracted Services                                192,725        342,684       342,684       260,000
 Materials and Supplies                              38,784         54,500        54,500        53,900
 Other Charges                                       16,385         29,500        29,500        29,500
 Capital Outlay                                      10,000            -             -             -

                           Total                    834,612      1,040,347     1,054,751       972,034

                                             299
                                   CITY OF SAN MARCOS
                                       2006-07 ANNUAL BUDGET
                                       ELECTRIC UTILITY FUND
                                                  Actual        Approved       Revised       Proposed
                                                2004/2005       2005/2006     2005/2006     2006/2007




Special Services
 Personnel Services                                     6,591        79,905        20,000       217,748
 Contracted Services                                  117,733       261,250       261,250       352,294
 Materials and Supplies                                11,129        26,500        26,500        22,147
 Other Charges                                      1,936,472     2,307,210     2,379,745     2,399,884
 Franchise Fee                                      3,632,469     3,039,196     3,334,606     3,370,785
 Operating Transfers                                  683,942           -         475,000           -
 Capital Outlay                                           -             -             -             -
 System Improvements                                      -       2,164,500     2,164,500           -

                           Total                    6,388,335     7,878,561     8,661,601     6,362,857


Debt Service
 Principal Payments                                  745,000        770,000       770,000       790,000
 Interest Payments                                   448,355        435,933       435,933       414,458
 Fiscal Agent Fees                                     1,050          1,250         1,250         1,250
 New Debt Issued                                         -              -             -             -

                           Total                    1,194,405     1,207,183     1,207,183     1,205,708




Total Electric Utility Fund Expenses             37,238,893      36,900,195    40,660,435    46,413,394




Summary of Expenses by Department

 Customer Information                               104,609          99,023       100,510       101,592
 Meter Operations                                   493,170         511,087       516,677       541,915
 Operations                                      26,636,684      24,193,257    27,126,502    35,310,159
 Maintenance                                      1,587,079       1,970,738     1,993,213     1,919,130
 Utility Billing & Collections                      834,612       1,040,347     1,054,751       972,034
 Special Services                                 6,388,335       7,878,561     8,661,601     6,362,857
 Debt Service                                     1,194,405       1,207,183     1,207,183     1,205,708

Total Electric Utility Fund Expenses             37,238,893      36,900,195    40,660,435    46,413,394




                                              300
                                 CITY OF SAN MARCOS
                                             2006-07 ANNUAL BUDGET
                                             ELECTRIC UTILITY FUND




                                 Operating           Personnel
                                 Transfers           Services            Capital Outlay
                                   0.0%                6.4%                 1.3%
                                                                                   Debt Service
                                                                                      2.6%

                                                                                          Other Charges
                                                                                             12.6%
                                                                                            Materials &
                                                                                             Supplies
                                                                                              0.9%




                          Contracted
                           Services
                            76.2%


                    Personnel   Contracted    Materials       Other        Operating      Capital        Debt
Division            Services     Services     & Supplies     Charges       Transfers      Outlay        Service         Total
Customer
Information            66,432       21,500       10,260          3,400             0             0                0      101,592
Meter Operations      366,649        8,229       43,213          5,824             0       118,000                0      541,915
Operations            693,938   34,486,522       50,173          9,526             0        70,000                0   35,310,159
Maintenance           997,536      258,737      244,251          9,050             0       409,556                0    1,919,130
Billing &
Collections           628,634     260,000        53,900         29,500             0                0           0        972,034
Special Services      217,748     352,294        22,147      5,770,669             0                0   1,205,708      7,568,566

            Total   2,970,937   35,387,282      423,944      5,827,969             0       597,556      1,205,708     46,413,396



                                                           301
Customer Information
Department Organization

                                                      City Manager



                                                Electric Utility Director



                                       Senior Energy Efficiency Representative




Mission Statement
This division responds to customers who need information or assistance involving the safe and efficient use of electricity
at their home or business. This response is achieved by providing information through brochures, sample displays,
presentations, home and business energy analysis and other teaching opportunities. This division also provides
information to all City of San Marcos customers by telephone, mail, fax, e-mail and personal on-site visits. This division
exists because the Electric Utility has a generally recognized responsibility to not only provide electricity to customers
but, also, to teach and promote the safe and efficient use of electricity.




Expenses by Category

                                                            Original
                                       Actual               Approved               Revised               Proposed
                                      2004-05               2005-06                2005-06               2006-07
  Personnel Services                         63,512                64,923                 66,410                66,432
  Contracted Services                        34,546                21,500                 21,500                21,500
  Materials and Supplies                      4,850                 8,700                  8,700                10,260
  Other Charges                               1,701                 3,900                  3,900                 3,400
  Capital Outlay                                  0                     0                      0                     0

  Total                                    104,609                 99,023               100,510                101,592




                                                        302
Goals and Objectives

   •   To continue the outreach to our younger customers with the “PowerHouse Energy Investigation” program
       to all 6th grade students (about 500) and the “Louis the Lightning Bug – Safety Around Electricity” to all 2nd
       grade students in the San Marcos school district.
   •   To continue developing and distributing customer information brochures, posters and presentations that
       focus on safety, efficiency and conservation.
   •   To assist other City departments and staff in serving customers in a “whatever needs to be done” attitude.
   •   To follow through on Senate Bill 5 requirements, guidelines and standards for reduction of energy used on
       all City of San Marcos facilities.
   •   To continue to train and certify City employees in CPR (cardio pulmonary resuscitation) Basic First Aid
       and in AED (automatic external defibrillation) use.
   •   To continue to gather rainfall and weather data for the City of San Marcos and to distribute this information
       to City customers and City/State/Federal personnel as needed.

What We Accomplished in 2005-06

   •   For the 3rd year, the “PowerHouse Energy Investigation” program was presented to almost 500 6th grade
       students and for the 9th year, the “Louie the Lightning Bug” program was presented to almost 600 2nd grade
       students in the San Marcos CISD.
   •   Attended the two day LCRA sponsored “Energy Efficiency 101” training seminar for both residential and
       commercial customers.
   •   Assisted the Public Works Department in their outreach with water conservation information to customers
       and referrals for problems or questions.
   •   Taught and certified 24 City of San Marcos employees in CPR/1st Aid/AED. Steve Sands (Sr. Energy
       Efficiency Rep) and was certified in American Red Cross CPR/1st Aid/ AED as instructors.
   •   Installed a new computerized wireless weather station at the Electric Utility office and mounted the
       instrumentation on top of one of our 30’ metal poles in the yard.

What We Plan to Accomplish in 2006-07

   •   Improve and increase number of presentations.
   •   Increase the number of customers reached with helpful information.
   •   Continue presentations to students in the San Marcos school system.
   •   Improve brochures, hand outs, flyers and other informational pieces as needed.
   •   Expand the City of San Marcos / Lower Colorado River Authority Co-Branding program.
   •   Explore ways to increase amounts of renewable energy and green power available for San Marcos Electric
       Utility Customers.




                                                    303
Performance Measures


                                                         Unit of     Actual   Estimated   Projected
                                                         Measure    2004-05    2005-06    2006-07
 Residential Energy Analysis and Customer Visits          Visits     120         80          85
 Commercial Energy Analysis and Customer Visits           Visits      42         36          36
 Customer Safety & Energy Presentations-
                                                           # of
 Louie the Lightning Bug, Power House and Civic                       62         58          58
                                                         present.
 Groups
 Customer Presentations                              # of people     1,100     1,210       1,210
                                                      # of load
 Senate Bill 5 Analysis                                               36         32          34
                                                     calculations
 Customer Contacts-                                      # of
                                                                     2,590     2,050       2,100
 phone/email/mail/fax/walk-ins                         contacts




                                                   304
            City of San Marcos                         Original
               Fiscal Year 2006/2007      Actual      Approved      Estimated     Proposed    Percent of
                   Annual Budget        2004/2005     2005/2006    2005/2006     2006/2007     Change

Fund 650 - Electric Utility Fund
Department 231 - Customer Information

51100   Salaries                            47,940        47,757        48,951       48,951        2.5%
51110   W/C Insurance                          358           270           291          265       -1.9%
51120   Overtime                               -             -             -            -          0.0%
51190   Medicare                               688           705           723          723        2.6%
51200   FICA                                 2,944         3,015         3,092        3,092        2.6%
51210   TMRS                                 6,816         6,920         7,097        7,097        2.6%
51220   Insurance                            3,936         5,380         5,380        5,380        0.0%
51300   Stability Pay                          828           876           876          924        5.5%
51350   Car Allowance                          -             -             -            -          0.0%

        Total Personnel Services            63,512        64,923        66,410       66,432        2.3%

52100   Printing and Publications            2,160         4,500         4,500        4,500        0.0%
52110   Telephone                                30          500           500          500        0.0%
52160   Professional Services               32,356        16,000        16,000       16,000        0.0%
52390   Maintenance Contract - Office          -             500           500          500        0.0%

        Total Contracted Services           34,546        21,500        21,500       21,500        0.0%

53010   Construction Material                  -             700           700          700        0.0%
53140   Fuel and Lubrication                   354           600           600          660       10.0%
53150   Supplies - Other                     2,833         4,500         4,500        6,000       33.3%
53160   Supplies - Office                      852           900           900          900        0.0%
53180   Postage                                238         1,000         1,000        1,000        0.0%
53300   Repairs - Vehicle / Equipment          574         1,000         1,000        1,000        0.0%

        Total Materials and Supplies         4,850         8,700         8,700       10,260       17.9%

54140   Dues and Subscriptions                 140           400           400          400        0.0%
54340   Professional Development               516         1,500         1,500        1,000      -33.3%
54910   Safety Items                         1,045         2,000         2,000        2,000        0.0%

        Total Other Charges                  1,701         3,900         3,900        3,400      -12.8%

61100   Miscellaneous Equipment                 -            -             -            -          0.0%

        Total Capital Outlay                    -            -             -            -          0.0%


Total Customer Information                 104,609        99,023       100,510      101,592        2.6%




                                          305
Meter Operations
Department Organization


                                                      City Manager



                                                 Electric Utility Director



                                              Customer Relations Manager



                                                    Meter Supervisor



          Installation Technician                   Meter Reader (5)                             Clerk III




Mission Statement

The Meter Operations Division is responsible for reading all electric and water meters within the San Marcos Electric
Utility service area. All connects and disconnects of electric and water meters, per customer request or for nonpayment
of bills or insufficient checks, are handled through this division. All service calls to the line maintenance crews are also
dispatched through meter operations. This division is also responsible for the maintenance and calibration of the electric
meters within our system.




Expenses by Category

                                                            Original
                                       Actual               Approved                Revised                  Proposed
                                      2004-05               2005-06                 2005-06                  2006-07
  Personnel Services                        354,102                360,844                366,433                 366,649
  Contracted Services                        11,926                  8,329                  8,329                   8,229
  Materials and Supplies                     35,530                 31,090                 31,090                  43,213
  Other Charges                               4,235                  5,824                  5,824                   5,824
  Capital Outlay                             87,377                105,000                105,000                 118,000

  Total                                     493,170                511,087                516,676                 541,915




                                                         306
Goals and Objectives

   •   To continue strengthening our electrical and general safety practices, so we can achieve five consecutive
       years with no lost time injuries.
   •   To continue developing new practices to strengthen our customer service skills.
   •   To read all electric and water meters accurately, safely, and efficiently.
   •   To work as a team to accomplish tasks in a timely and efficient manner.
   •   To continue cross-training employees in order to increase productivity and teamwork.
   •   To search for new expansion opportunities for the consolidated billing program.

What We Accomplished in 2005-06

   •   During FY 2005/06, the SMEU Meter Operations Division read over 352,000 electric and water meters, our
       dispatchers handled over 3,200 service calls during regular business hours, and the department performed
       over 14,500 connects for water and/or electric customers.
   •   One of our meter readers completed Course One at the Texas Engineering Service (TEEX) Electrical
       Metering School in Bryan, Texas.
   •   All employees attended the American Red Cross’ CPR/First Aid/AED training during the month of April.
   •   Upon the request of the Customer Relations Manager, a new meter route was created combining all of the
       Texas State University Facility Operations’ meters to be read in one day. Now, this department at Texas
       State only receives one aggregated bill each month.
   •   Our meter reading hand-helds were upgraded in February in order to maintain our service contract.
   •   A new Personal Protective Equipment program was implemented for field personnel to bring our safety
       practices up to current standards.

What We Plan to Accomplish in 2006-07

   •   Selection and implementation of an automated meter reading system to support both electric and water
       utilities.
   •   Increase our meter reading accuracy.
   •   Continue field verifications on current transformer (CT) and potential transformer (PT) serviced meters to
       ensure customers receive accurate electric bills.
   •   Become educated on the operations and functionality of Maximo so we can track job orders electronically.
   •   Continue developing new practices to strengthen customer relations whether in the office or in the field.




                                                    307
Performance Measures

                                                        Unit of     Actual   Estimated   Projected
                                                        Measure    2004-05    2005-06    2006-07
 Number Of Electric And Water Meters Read Per       Number Of
                                                                   28,563     29,400      29,550
 Month                                               Meters
 Number Of Electric And Water Meters Read Per       Number Of
                                                                   342,762   352,800     354,600
 Year                                                Meters
 Customer Requested Electric And Water Connects
                                                        Connects    1,146     1,200       1,350
 Performed Per Month
 Customer Requested Electric And Water Connects
                                                        Connects   13,756     14,600      16,200
 Performed Per Year
 Annual Number Of Meter Calibration Tests           Total Tests     946        600         650
 Number Of Service Calls Received By Meter
 Operations Dispatchers During Regular Business     Total Calls     3,151     3,200       3,250
 Hours
                                                       Total
 Non-Pay Disconnects Performed Annually                             5,216     4,300       4,500
                                                    Disconnect
                                                      Total
 Non-Pay Reconnects Performed Annually                              4,325     3,300       3,500
                                                    Reconnects
                                                        Percent
 Meter Reading Accuracy                                            99.91%     99.94%     99.95%
                                                        Correct




                                                  308
            City of San Marcos                          Original
               Fiscal Year 2006/2007        Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget          2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 650 - Electric Utility Fund
Department 232 - Meter Operations

51100   Salaries                             237,765      241,425       246,874      246,874        2.3%
51110   W/C Insurance                          1,663        1,304         1,395        1,271       -2.5%
51120   Overtime                              15,941       14,252        14,252       14,252        0.0%
51190   Medicare                               3,511        3,765         3,835        3,835        1.9%
51200   FICA                                  15,011       16,102        16,398       16,398        1.8%
51210   TMRS                                  35,782       36,952        37,635       37,635        1.8%
51220   Insurance                             41,753       43,040        43,040       43,040        0.0%
51300   Stability Pay                          2,676        4,004         3,004        3,344      -16.5%
51350   Car Allowance                            -            -             -            -          0.0%

        Total Personnel Services             354,102      360,844       366,433      366,649        1.6%

52100   Printing and Publications                 93          357           357          357        0.0%
52110   Telephone                                 22        1,428         1,428        1,428        0.0%
52145   Electric / Water and Wastewater       11,251        1,444         1,444        1,444        0.0%
52160   Professional Services                    560        5,100         5,100        5,000       -2.0%
52200   Disposal Services                        -            -             -            -          0.0%

        Total Contracted Services             11,926        8,329         8,329        8,229       -1.2%

53010   Construction Material                  5,163        8,000         8,000       10,000      25.0%
53140   Fuel and Lubrication                  11,028        6,000         6,000       17,083     184.7%
53150   Supplies - Other                       9,482       11,000        11,000       10,000      -9.1%
53160   Supplies - Office                      1,025        1,000         1,000        1,000       0.0%
53180   Postage                                  -             50            50           50       0.0%
53300   Repairs - Vehicle / Equipment          7,160        3,000         3,000        3,000       0.0%
53340   Uniforms                               1,673        2,040         2,040        2,080       2.0%

        Total Materials and Supplies          35,530       31,090        31,090       43,213       39.0%

54140   Dues and Subscriptions                   -            100           100          100        0.0%
54340   Professional Development               3,404        4,500         4,500        4,500        0.0%
54910   Safety Items                             831        1,224         1,224        1,224        0.0%

        Total Other Charges                    4,235        5,824         5,824        5,824        0.0%

61050   Light Vehicles                        15,038          -             -         50,000      100.0%
61100   Miscellaneous Equipment                  -         30,000        30,000          -       -100.0%
61316   Materials - Meters                    72,339       75,000        75,000       68,000       -9.3%

        Total Capital Outlay                  87,377      105,000       105,000      118,000       12.4%


Total Meter Operations                       493,170      511,087       516,677      541,915        6.0%




                                            309
Operations
Department Organization

                                         City Manager


                                    Electric Utility Director


             Department Secretary                           Secretary/ Receptionist


          Customer Relations Manager                       Senior Electrical Engineer

                                                                                   Electrical Engineer Technician (2)


                                                                                      CADD System Coordinator


                                                                                        Electric Meter Technician

                                                                                        Inventory Maintenance
                                                                                        Management Technician

Mission Statement
The Operations Division takes care of the operation, planning, and design of the electrical distribution system for the City
of San Marcos, and is the first line of contact with the public, industry and others requesting information on policies and
procedures. The Operations Division is not only responsible for the plans and specifications used in the construction of
the distribution facilities for the City, but also reviewing outside engineering plans for design and content. This division
conducts field studies and engineers the projects for the upgrading of the distribution system, coordinating the work of
both office and field personnel to complete the construction projects. This division creates economic cost analysis and
technical reports and maintains the distribution mapping as well as drafting of distribution standards and specifications on
the computer system. The operations division is also responsible for the installation and utilization of the Supervisory
Control and Data Acquisition (SCADA) system as we move toward more automation of the distribution system.

Expenses by Category

                                                                Original
                                        Actual                  Approved            Revised                Proposed
                                       2004-05                  2005-06             2005-06                2006-07
  Personnel Services                        635,143                  678,516               693,688               693,938
  Contracted Services                    25,975,984               23,469,785            26,387,858            34,486,522
  Materials and Supplies                     18,249                   35,598                35,598                50,173
  Other Charges                               7,308                    9,358                 9,358                 9,526
  Capital Outlay                                  0                        0                     0                70,000

  Total                                  26,636,684               24,193,257            27,126,502            35,310,159




                                                         310
Goals and Objectives

   •   To maintain the electrical power system operating at the present 99.9999% reliability, providing our
       customers service with minimum interruptions.
   •   To sustain sufficient funds and resources necessary for the operation of the electrical system.
   •   To budget monetary reserves to fund unplanned expenditures due to natural or accidental disasters.
   •   To stay informed of regulation changes or development by ERCOT (Energy Reliability Council of Texas)
       or the PUC (Public Utility Commission) and the affects on SMEU.
   •   To continue operating within the 90 % of system capacity as defined by the Association of Wholesale
       Customers. The 2005 summer peak of 108 MVA was 77% of the 140 MVA system capacity.
   •   To strengthen and expand key account program through continued customer service, one-on-one 24 hour on-call
       availability and expanded web based programs.

What We Accomplished in 2005-06

   •   To date during this fiscal year, the engineering department engineered 38 work authorizations covering the
       installation of 67 poles, 33 overhead transformers, 34 pad mount transformers for underground electrical,
       317’ of single phase overhead primary, 4683’ of three phase overhead primary, 4950’ of single phase
       underground primary and 3216’ of three phase underground primary.
   •   The engineering department also handled 461 non-outage customer calls, 29 planned maintenance job
       orders and 205 power outage calls, of which 173 or 85%, were caused by animals, trees, accidents or
       weather related. The remaining 15% were equipment/material failures.
   •   Overhead electrical system was installed to the new retail center along Cottonwood Creek and McKinley
       Pkwy. The overhead electrical service will provide electricity to Marshall’s, Ross, Sam’s Club and other
       retail locations within the Red Oak Village Retail Center.
   •   The Choose 2 Renew renewable energy program sponsored by the Lower Colorado River Authority (LCRA)
       was put into place in December, 2005.

What We Plan to Accomplish in 2006-07

   •   Complete the electrical service to Cabana Beach Residential Apartments and the Red Oak Village retail
       shopping center.
   •   Addition of two three-phase feeders from the LCRA McCarty Lane substation to serve future growth south
       of Wonder World Drive, including the planned Convention Center and Hotel project.
   •   Relocation of distribution utility poles and service drops to customers along Post Road.
   •   Work in conjunction with other city departments to complete city-wide infrastructure projects in a timely
       manner and within budget specifications.
   •   Stay abreast of all new construction developments to ensure timely and professional completion of projects.
   •   Increase community involvement through volunteer opportunities, service projects and program assistance.
   •   Continue involvement in LCRA projects such as the long term power provider contract negotiation and a
       wholesale cost of service study.




                                                   311
Performance Measures

                                                      Unit of      Actual   Estimated   Projected
                                                      Measure     2004-05    2005-06    2006-07
                                                      Calls and
 Underground Locates – One Call System                             1,012     1,100       1,200
                                                       Faxes
 Design of Electric Lines both Overhead and            WA’s
                                                                    78         90         100
 Underground                                          assigned
 Street Lights Installed                              Fixtures     1,547     1,555       1,565
 Pole Contacts – Telephone and Cable TV companies     Contacts    19,974     20,038      20,100
 Customer Yard Lights                                 Fixtures     1,115     1,120       1,125
 Key Account Contacts                                  Meters       11         13          15
                                                       Utility
 Consolidated Billing Accounts                                      80        165         180
                                                      Accounts




                                                312
             City of San Marcos                            Original
                Fiscal Year 2006/2007         Actual      Approved       Estimated     Proposed     Percent of
                    Annual Budget           2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 650 - Electric Utility Fund
Department 233 - Operations

51100   Salaries                               455,500       490,277        502,532      502,532         2.5%
51110   W/C Insurance                            1,840         1,877          2,021        1,839        -2.0%
51120   Overtime                                10,440        11,360         11,360       11,360         0.0%
51190   Medicare                                 6,758         7,417          7,599        7,599         2.5%
51200   FICA                                    28,897        31,709         32,496       32,496         2.5%
51210   TMRS                                    67,433        72,268         74,072       74,072         2.5%
51220   Insurance                               54,362        53,800         53,800       53,800         0.0%
51300   Stability Pay                            6,312         6,208          6,208        6,640         7.0%
51350   Car Allowance                            3,600         3,600          3,600        3,600         0.0%
51450   CWIP-Labor Transfer                        -             -              -            -           0.0%

        Total Personnel Services               635,143       678,516        693,688      693,938         2.3%


52000   Purchase of Power                    25,892,353    23,362,665    26,280,738    34,361,504       47.1%
52005   Purchase of Power - LCRA Increase           -             -             -             -          0.0%

        Total Purchase of Power              25,892,353    23,362,665    26,280,738    34,361,504       47.1%

52050   LCRA - Austin Services                     -           5,100          5,100        5,202         2.0%
52100   Printing and Publications                1,524         3,667          3,667        3,740         2.0%
52110   Telephone                                6,665         6,763          6,763        6,898         2.0%
52160   Professional Services                   72,272        82,410         82,410       96,000        16.5%
52200   Disposal Services                          -             -              -            -           0.0%
52390   Maintenance Contract - Office            3,170         9,180          9,180       13,178        43.6%

        Total Contracted Services               83,631       107,120        107,120      125,018        16.7%

53140   Fuel and Lubrication                     4,212         6,000          6,000        4,500      -25.0%
53150   Supplies - Other                        10,238        11,132         11,132       37,130      233.5%
53160   Supplies - Office                        2,879         3,121          3,121        3,183        2.0%
53180   Postage                                    -              51             51           51        0.0%
53300   Repairs - Vehicle / Equipment              355        14,566         14,566        4,566      -68.7%
53340   Uniforms                                   564           728            728          743        2.1%

        Total Materials and Supplies            18,249        35,598         35,598       50,173        40.9%

54140   Dues and Subscriptions                     122           969            969          969         0.0%
54340   Professional Development                 7,066         7,140          7,140        7,283         2.0%
54910   Safety Items                               120         1,249          1,249        1,274         2.0%

        Total Other Charges                      7,308         9,358          9,358         9,526        1.8%

61100   Miscellaneous Equipment                     -             -             -            -          0.0%
61050   Light Vehicles                              -             -             -         70,000      100.0%

        Total Capital Outlay                        -             -             -         70,000      100.0%


Total Operations                             26,636,684    24,193,257    27,126,502    35,310,159       46.0%




                                              313
Maintenance
Department Organization

                                         City Manager

                                    Electric Utility Director

                                Electric Distribution Manager

                Crew Leader                                       Crew Leader

                                        Lineperson (2)                                    Lineperson (2)

                                   Electric Utility Operator                         Electric Utility Operator

                                    Apprentice Lineperson                           Apprentice Lineperson (2)

                                    Lineperson Helper (2)                               Lineperson Helper




Mission Statement
The Maintenance Division of San Marcos Electric Utility has the mission to continually update and reconstruct the
distribution system to maintain our high reliability factor. This division responds to service interruptions, works in all
kinds of weather to restore service when these outages occur, and keeps the system operating uniformly on a daily basis.
Maintenance personnel are constantly inspecting the distribution system and describing potential malfunction localities to
the operations division for appropriate corrective action. These personnel install transformers and services to new
customers. The disposition of their responsibilities exacts a professional manner since they are highly visible as they go
about their daily routines.



Expenses by Category

                                                            Original
                                       Actual               Approved               Revised               Proposed
                                      2004-05               2005-06                2005-06               2006-07
  Personnel Services                       908,308                974,831               997,306                  997,536
  Contracted Services                      182,796                253,674               253,674                  258,737
  Materials and Supplies                   292,481                228,488               228,488                  244,251
  Other Charges                              8,775                  8,945                 8,945                    9,050
  Capital Outlay                           194,719                504,800               504,800                  409,556

  Total                                  1,587,079              1,970,738              1,993,213             1,919,130




                                                         314
Goals and Objectives

   •   Work together as a team keeping the reliability of our system at or above the previous year’s ratings.
   •   Make repairs in a timely manner to lessen inconveniences to our customers.
   •   Show our customers professional attitudes, dedication to service and excellent work ethics.
   •
   •   Keep up with industry standards and changes due to technological advances, and not fall behind the times.
   •   Continue to train up and coming workers, also to instill safety as the most important daily task we face.
   •   Provide service as efficiently as possible to new customers.

What We Accomplished in 2005-06

   •   Continued the tree trimming program to help reduce damage and liability to our system.
   •   Continued maintenance to the distribution system by changing out decayed poles and cross-arms along with
       making repairs to equipment located through inspections performed.
   •   Upgraded lines to handle increased load due to normal growth.
   •   Installed two new feeder lines from the McCarty Lane Substation to pick up the load added in the vicinity
       of the new Hammonds Hotel and Conference Center and to relieve loading on the Redwood Substation.
   •   Began planning for another substation to go on line to handle future load growth on the north side of town.
   •   Performed in-house safety inspections of our insulated “sticks” and the personal protective grounds.
   •   Built underground and overhead lines to feed both new residential and new commercial customers.
   •   Installed new Substation feeder controllers along with programming and testing of each.
   •   Relocated 3-phase distribution lines for Wonder World Drive overpass construction project.

What We Plan to Accomplish in 2006-07

   •   Go on line with a third transformer in the Redwood Substation.
   •   Continue with the CIP program in-house to control costs and keep the quality up to our standards.
   •   Continue to install and repair streetlights, along with making changes to help keep the need for repairs at a
       minimal level.
   •   Do in-house safety testing of our insulated “sticks” and the protective grounds used in daily job activity.
   •   Build tie lines to assist with balancing load on our system.
   •   Install reconductors on existing lines to help handle increasing load on our system.
   •   Provide service to new neighborhoods and commercial establishments with both underground and overhead
       electrical service.
   •   Work toward having a no lost time accident year.




                                                    315
Performance Measures

                                                   Unit of      Actual   Estimated   Projected
                                                   Measure     2004-05    2005-06    2006-07
Service Calls                                     Job Orders    1,430     1,500       1,500

Power Outages                                     Job Orders    331        375         350
                                                  Pole and
Transformers Installed                                           86        110         110
                                                  Pad Units
Poles Installed                                     Poles       109        140         120
                                                   Feet of
Underground Primary Installed                                  18,250     19,000      19,000
                                                  Conductor
                                                   Feet of
Overhead Primary Installed                                     27,432     22,000      20,000
                                                  Conductor
                                                   Active
Average Number of Customers on the System                      18,500     19,000      19,500
                                                   Meters
Average Outage Time per Customer                   Minutes       4.8        3.8         3.5
Lost Time Accidents                                 Days         0          0           0




                                            316
             City of San Marcos                             Original
                Fiscal Year 2006/2007          Actual      Approved       Estimated     Proposed     Percent of
                    Annual Budget            2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 650 - Electric Utility Fund
Department 234 - Maintenance

51100   Salaries                                605,571       635,258        653,182      653,182         2.8%
51110   W/C Insurance                             4,745         3,772          4,067        3,702        -1.8%
51120   Overtime                                 65,979        79,088         79,088       79,088         0.0%
51190   Medicare                                  9,618        10,464         10,738       10,738         2.6%
51200   FICA                                     41,127        44,744         45,902       45,902         2.6%
51210   TMRS                                     94,485       102,697        105,356      105,356         2.6%
51220   Insurance                                79,668        91,460         91,460       91,460         0.0%
51300   Stability Pay                             7,116         7,348          7,512        8,108        10.3%
51350   Car Allowance                               -             -              -            -           0.0%

        Total Personnel Services                908,308       974,831        997,306      997,536         2.3%

52040   Damages                                     175         4,893          4,893        4,991         2.0%
52100   Printing and Publications                   175           515            515          515         0.0%
52110   Telephone                                 3,900         6,696          6,696        6,830         2.0%
52160   Professional Services                   178,546       241,570        241,570      246,401         2.0%

        Total Contracted Services               182,796       253,674        253,674      258,737         2.0%

53010   Construction Material                   195,969        98,838         98,838      100,815         2.0%
53140   Fuel and Lubrication                     29,599        36,000         36,000       36,226         0.6%
53150   Supplies - Other                         12,551        12,849         12,849       24,800        93.0%
53160   Supplies - Office                           395           693            693          700         1.0%
53180   Postage                                      33            51             51           51         0.0%
53300   Repairs - Vehicle / Equipment            48,369        74,129         74,129       75,612         2.0%
53340   Uniforms                                  5,565         5,928          5,928        6,047         2.0%

        Total Materials and Supplies            292,481       228,488        228,488      244,251         6.9%

54140   Dues and Subscriptions                      -              49             49           50         2.0%
54340   Professional Development                  4,241         3,954          3,954        4,000         1.2%
54910   Safety Items                              4,534         4,942          4,942        5,000         1.2%

        Total Other Charges                       8,775         8,945          8,945        9,050         1.2%

61050   Light Vehicles                              -             -              -         65,000       100.0%
61060   Heavy Equipment                             -         167,000        167,000          -        -100.0%
61312   Materials - Customer Extensions          45,420       188,700        188,700      192,474         2.0%
61314   Materials - Street Lighting               5,384        10,500         10,500       10,710         2.0%
61318   Materials - Transformers                133,305       132,600        132,600      135,252         2.0%
61320   Materials - Mercury Vapor Lighting       10,609         6,000          6,000        6,120         2.0%

        Total Capital Outlay                    194,719       504,800        504,800      409,556       -18.9%


Total Maintenance                              1,587,079     1,970,738     1,993,213     1,919,130       -2.6%




                                               317
Utility Billing and Collections
Department Organization

                                                       City Manager


                                                   Director of Finance


                                                   Utility Billing and
                                                  Collections Manager

                        Utility Services             Quality Control/             Utility Services
                          Supervisor                Quality Assurance               Supervisor

      Senior Accounting                                                                          Senior Accounting
          Clerk (2)                                                                                    Clerk

            Clerk II                                                                                 Clerk III (5)


                                                                                                      Clerk II



Mission Statement
The Utility Billing and Collection Division is responsible for the billing and collection of all electric, water, wastewater,
garbage, cemetery and other accounts. These tasks include billing, collection, customer relations, utility service
connections and disconnections, computer data entry, and computer output product initiation, as well as reporting utility
data to management.



Expenses by Category

                                                             Original
                                        Actual               Approved                Revised                Proposed
                                       2004-05               2005-06                 2005-06                2006-07
  Personnel Services                         576,717                613,663                628,067                628,634
  Contracted Services                        192,725                342,684                342,684                260,000
  Materials and Supplies                      38,784                 54,500                 54,500                 53,900
  Other Charges                               16,385                 29,500                 29,500                 29,500
  Capital Outlay                              10,000                      0                      0                      0

  Total                                      834,611              1,040,347              1,054,751                972,034




                                                         318
Goals and Objectives

   •   To provide excellent customer service to the utility services customers of the City of San Marcos, with the
       intention of increasing Customer Loyalty, while billing and collecting for services provide in an accurate
       efficient manner.
   •   To provide the staff of the Utility Billing and Collection Department with the training and tools, including
       automation and technology, to maximize recovery of utility services bills.

What We Accomplished in 2005-06

   •   Implemented the Harris eSupport application which includes the web-based Online Utility Services, and
       Interactive Voice Response (IVR) system, which allows customer to inquiry and complete transactions on
       their accounts remotely.
   •   Expanded the training and education of the department staff – through training session in customer service
       and computer classes.
   •   Increase customer awareness of services and location of the Utility Billing and Collections Dept, through
       banners, handouts, and literature provided to them by the cashiers locations.

What We Plan to Accomplish in 2006-07

   •   Implement a remittance process system that will allow clerks to process mail and night-drop payments in
       approximately half the present time. The system will batch and image payments and payment coupon for
       archive purposes, and interface with the Harris/PUBS utility system.
   •   Upgrade the Harris/PUBS utility system to the Harris NorthStar 6.2 version. This version is a windows
       format product which will allow staff to have multiple applications open simultaneously, provide quicker
       navigation through the utility system and process customer transactions more efficiently.
   •   Install Harris Executive Information System (EIS) and eDoc with the NorthStar upgrade. EIS is a
       management reporting tool which provides easy access to managerial reports from the utility system, that
       are be generated and controlled at the user level. eDoc allows scanned documents and pictures related to
       individual utility accounts to be attached and viewed in the utility system at the account maintenance level.




                                                    319
Performance Measures

                                                           Unit of       Actual   Estimated   Projected
                                                           Measure      2004-05    2005-06    2006-07
                                                          Average #
Electric Accounts                                          Billed       18,678     18,831      19,396
                                                          Monthly
                                                          Average #
Water Accounts                                             Billed        8,648     8,709       8,970
                                                          Monthly
                                                          Average #
Wastewater Accounts                                        Billed        7,290     7,312       7,531
                                                          Monthly
                                                          Average #
Sewer Surcharge Account                                    Billed        233        228         235
                                                          Monthly
                                                           Average #
Connects And Disconnects                                  Of Request     1,518     1,563       1,614
                                                            Monthly
                                                           Total # Of
Direct Draft Account                                         Direct      660        740         814
                                                          Draft Accts
                                                           Total # Of
                                                             Budget
Budget Billing Accounts                                                   61         94         145
                                                             Billed
                                                           Accounts
                                                           Total # Of
                                                            Non-Pay
Non-Pay Disconnect                                                       429        334         370
                                                          Disconnect
                                                           Per Month
                                                            Average
                                                            Payment
Payments/Cashier/Day                                                     168        196         202
                                                          Per Cashier
                                                              Daily
                                                            Average
                                                            Monthly
                                                                         1,535     1,744       1,796
Utility Bill Payments Processed Per Employee              Payment To
                                                              # UB
                                                           Employee
                                                               # of
Online Utility Billing & Collections Web Payments
                                                           payments      356       5,864       6,500
Effective Date July 1, 2005
                                                           pd online
Automated Telephone Payments                               Total # of
(IVR) Interactive Voice Response System                    Payments      N/A       1,151       1,300
Effective Date November 1, 2005                            pd by IVR
                                                              % of
Percentage of Automated (Web & IVR) payments to
                                                           automated     0.1%       2.8%        3.1%
total Utility Services Customers
                                                           payments




                                                    320
             City of San Marcos                                Original
                Fiscal Year 2006/2007              Actual     Approved       Estimated     Proposed    Percent of
                    Annual Budget                2004/2005    2005/2006     2005/2006     2006/2007     Change

Fund 650 - Electric Utility Fund
Department - 235 Utility Billing & Collections

51100    Salaries                                   409,481      414,531        426,296      426,296        2.8%
51110    W/C Insurance                                  826          766            825          752       -1.7%
51120    Overtime                                    12,919       20,981         20,981       20,981        0.0%
51190    Medicare                                     6,146        6,397          6,572        6,572        2.7%
51200    FICA                                        26,281       27,345         28,110       28,110        2.8%
51210    TMRS                                        59,747       62,767         64,515       64,515        2.8%
51220    Insurance                                   56,376       75,320         75,320       75,320        0.0%
51300    Stability Pay                                4,940        5,556          5,448        6,088        9.6%
51350    Car Allowance                                  -            -              -            -          0.0%

         Total Personnel Services                   576,717      613,663        628,067      628,634        2.4%

52100    Printing and Publications                  133,832      175,000        175,000      180,000        2.9%
52110    Telephone                                    2,218        2,000          2,000        2,000        0.0%
52130    Equipment - Rent / Lease                       -          3,040          3,040        3,100        2.0%
52145    Electric / Water and Wastewater              8,793        1,444          1,444        1,500        3.9%
52160    Professional Services                       24,007      155,200        155,200       66,000      -57.5%
52390    Maintenance Contract - Office                1,423        6,000          6,000        7,400       23.3%
52660    Repairs - Building and Equipment            22,453          -              -            -          0.0%

         Total Contracted Services                  192,725      342,684        342,684      260,000      -24.1%

53140    Fuel and Lubrication                           356          -              -            -          0.0%
53150    Supplies - Other                            14,488       21,500         21,500       21,500        0.0%
53160    Supplies - Office                           17,593       28,000         28,000       25,900       -7.5%
53180    Postage                                      6,347        5,000          5,000        6,500       30.0%

         Total Materials and Supplies                38,784       54,500         54,500       53,900       -1.1%

54140    Dues and Subscriptions                         164        1,500          1,500        1,500        0.0%
54340    Professional Development                    16,221       28,000         28,000       28,000        0.0%
54740    Bad Debt                                       -            -              -            -

         Total Other Charges                         16,385       29,500         29,500       29,500        0.0%

61020    Office Furniture                            10,000          -              -            -

         Total Capital Outlay                        10,000          -              -            -          0.0%


Total Utility Billing & Collections                 834,612     1,040,347     1,054,751      972,034       -6.6%




                                                   321
Special Services
Department Organization

The Special Services Division is used to account for a variety of non-direct expenses. Examples of expenses include
utilities, insurance, bank charges and operating transfers.




Expenses by Category

                                                        Original
                                     Actual             Approved              Revised              Proposed
                                    2004-05             2005-06               2005-06              2006-07
 Personnel Services                        6,591               79,905                20,000              217,748
 Contracted Services                     117,733              261,250               261,250              352,294
 Materials and Supplies                   11,129               26,500                26,500               22,147
 Other Charges                         5,568,941            5,346,406             5,714,351            5,770,669
 Operating Transfers                     683,942                    0               475,000                    0
 Capital Outlay                                0            2,164,500             2,164,500                    0
 Debt Service                          1,194,405            1,207,183             1,207,183            1,205,708

 Total                                 7,582,741            9,085,744             9,868,784            7,568,566




                                                     322
            City of San Marcos                                 Original
               Fiscal Year 2006/2007              Actual      Approved       Estimated     Proposed     Percent of
                   Annual Budget                2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 650 - Electric Utility Fund
Department 240 - Special Services

51310   Unemployment Comp. and Term. Leave           6,591        20,000         20,000       20,000        0.0%
51320   Market / Merit / COLA Increase                 -          59,905            -        197,748      230.1%

        Total Personnel Services                     6,591        79,905         20,000      217,748      172.5%

52010   Copier Rental                                  -             -              -         20,368      100.0%
52100   Printing and Publications                    7,523        40,000         40,000       45,000       12.5%
52130   Equipment - Rent / Lease                       -             -              -            -          0.0%
52160   Professional Services                       89,742       118,500        118,500      125,000        5.5%
52391   Information Technology Services                -          47,750         47,750      106,926      123.9%
52400   Electric Rate Study                            -             -              -            -          0.0%
52750   Maintenance - Electric Building             20,468        55,000         55,000       55,000        0.0%

        Total Contracted Services                  117,733       261,250        261,250      352,294        34.8%

53150   Supplies - Other                            11,129        19,000         19,000       20,000         5.3%
53380   Supplies - Copier                              -           7,500          7,500        2,147       -71.4%

        Total Materials and Supplies                11,129        26,500         26,500       22,147       -16.4%

54110   TPPA Membership                               9,837        15,000        15,000        15,000        0.0%
54115   AWC Membership                                7,306         9,000         9,000         9,000        0.0%
54120   Tuition Reimbursement Program                 1,986           -             -          12,700      100.0%
54160   Insurance                                   135,536       165,000       165,000       168,300        2.0%
54190   Utility Bill Assistance Program              10,000        10,000        15,000        15,000       50.0%
54210   Assessment Centers                              874         5,000         5,000         6,250       25.0%
54215   Market Study                                    -           5,000         5,000           -       -100.0%
54260   Training - Supervisory                        2,351         2,500         2,500         2,500        0.0%
54350   Economic Development                        177,260       177,260       244,795       244,795       38.1%
54355   Special Economic Development Projects        80,130       120,000       120,000       120,000        0.0%
54600   Contingency Funds                               -         100,000       100,000       100,000        0.0%
54740   Allowance for Bad Debt                      159,975       310,000       310,000       310,000        0.0%
54750   Bank Charges                                 72,970        60,000        60,000        91,250       52.1%
54800   Reimbursement to General Fund (100)       1,187,974     1,232,915     1,232,915     1,270,589        3.1%
54850   Minority Economic Development                61,035        61,035        61,035           -       -100.0%
54870   ADA Compliance / Training                       975         1,000         1,000         1,000        0.0%
54890   Customer Service Training                     1,000         1,000         1,000         1,000        0.0%
54915   Safety Program                               20,074        20,000        20,000        20,000        0.0%
54920   Employee Recognition                          2,395         5,700         5,700         5,700        0.0%
54940   Employee Group Activities                     4,794         6,800         6,800         6,800        0.0%

        Total Other Charges                       1,936,472     2,307,210     2,379,745     2,399,884


54970   Franchise Fee                             3,632,469     3,039,196     3,334,606     3,370,785       10.9%
54972   Franchise Fee - LCRA Increase                   -             -             -             -          0.0%

        Total Franchise Fee                       3,632,469     3,039,196     3,334,606     3,370,785       10.9%




                                                  323
             City of San Marcos                                Original
                Fiscal Year 2006/2007             Actual      Approved       Estimated     Proposed     Percent of
                    Annual Budget               2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 650 - Electric Utility Fund
Department 240 - Special Services (continued)

58420   Op Trsfr - General Fund CIP (420)          413,117            -         475,000          -           0.0%
58620   Op Trsfr - Wastewater CIP (620)            270,825            -             -            -           0.0%

        Total Operation Transfers                  683,942            -         475,000           -          0.0%

61300   System Improvements                             -       2,164,500     2,164,500           -       -100.0%

        Total Capital Outlay                            -       2,164,500     2,164,500          -        -100.0%



Total Special Services                            6,388,335     7,878,561     8,661,601     6,362,857      -19.2%




                                                  324
            City of San Marcos                                 Original
                Fiscal Year 2006/2007             Actual      Approved       Estimated     Proposed     Percent of
                    Annual Budget               2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 650 - Electric Utility Fund
Department 441 - 2002 Refunding Revenue Bonds

71150   Principal Payments                         745,000       770,000        770,000      790,000         2.6%
71200   Interest Payments                          448,355       435,933        435,933      414,458        -4.9%
71300   Fiscal Agent Fees                            1,050         1,250          1,250        1,250         0.0%

        Total                                     1,194,405     1,207,183     1,207,183     1,205,708       -0.1%


Fund 650 - Electric Utility Fund
Department 442 - New Revenue Bonds

71150   Principal Payments                              -            -              -            -           0.0%
71200   Interest Payments                               -            -              -            -           0.0%
71300   Fiscal Agent Fees                               -            -              -            -           0.0%
71100   New Debt Payments                               -            -              -            -           0.0%

        Total                                           -            -              -            -           0.0%




Summary
  Principal Payments                               745,000       770,000        770,000      790,000         2.6%
  Interest Payments                                448,355       435,933        435,933      414,458        -4.9%
  Fiscal Agent Fees                                  1,050         1,250          1,250        1,250         0.0%
  New Debt Payments                                    -             -              -            -           0.0%

Total Debt Service                                1,194,405     1,207,183     1,207,183     1,205,708       -0.1%




                                                  325
326
                               CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                                         MUNICIPAL AIRPORT FUND
                                                        Actual        Approved        Revised        Proposed
                                                      2004/2005       2005/2006      2005/2006      2006/2007


Operating Revenues
 Interest Income                                               -              -              -              -
 Penalties Assessed                                            235            310            310            310
 City-Owned T-Hangar Rentals                                41,585         36,000         36,000         36,000
 City-Owned Shelter Rentals                                  7,615          7,560          7,560          7,560
 Agricultural Land Lease                                    10,800         10,800         10,800         10,800
 Fuel Flowage Fees                                          15,060         17,492         17,492         17,842
 City-Owned Storage Area Rentals                             2,280          1,920          1,920          1,920
 Private Hangar/Land Rentals                                19,767         16,756         16,756         16,756
 Commercial Land/Facility Rentals                           67,995         59,366         59,366         59,366
 Commercial Gross Receipts                                  14,215         19,151         19,151         19,151
 Commercial Land/Facility Improvement Credits              (14,544)       (14,600)       (14,600)       (14,600)

Total Operating Revenues                                   165,008        154,755        154,755        155,105

Operating Expenses
 Personnel Services                                        104,244        105,354        105,352        104,634
 Contracted Services                                        28,045         36,700         36,700         36,925
 Materials and Supplies                                     10,495         14,800         14,800         14,900
 Other Charges                                              56,947         71,383         71,383         89,056

Total Operating Expenses                                   199,731        228,237        228,235        245,515

Operating Income / (Loss)                                  (34,723)       (73,482)       (73,480)       (90,410)

Non-Operating Revenues
 Transfer from General Fund                                203,655        104,510        104,510        354,500

One-Time Expenses
 One-Time Operating Transfer                               101,667        213,334        213,334        146,667

Net Change in Fund Balance                                  67,265       (182,306)      (182,304)       117,423
Beginning Unreserved Fund Balance                           (2,384)       (12,313)        64,881       (117,423)

Ending Unreserved Fund Balance                              64,881       (194,619)      (117,423)               -

Fund Balance as a Percentage of Operating Expenses          32.48%        -85.27%        -51.45%           0.00%




                                                     327
                       CITY OF SAN MARCOS
                               2006-07 ANNUAL BUDGET
                               MUNICIPAL AIRPORT FUND




                                                                     Personnel
                                                                     Services
                                                                      26.7%


           Operating
           Transfers
            37.4%




                                                                 Other Charges
                                           Materials &              22.7%
                       Contracted
                                            Supplies
                        Services
                                             3.8%
                         9.4%




                       Personnel    Contracted    Materials     Other     Operating
Division               Services      Services     & Supplies   Charges    Transfers    Total

Administration           104,634        36,925        14,900     89,056      146,667   392,182




                                            328
Airport Administration
Department Organization

                                                    City Manager


                                                   Airport Director




Mission Statement
The San Marcos Municipal Airport provides for the aviation needs of the citizens of San Marcos and the regional
community. The Administration of the Airport includes maintaining and improving the physical facilities, ensuring
compliance with applicable Federal standards and rules, establishing and enforcing good airport operating practices,
marketing, lease negotiation, and planning for short and long range needs of the Airport.




Expenses by Category

                                                          Original
                                     Actual               Approved             Revised              Proposed
                                    2004-05               2005-06              2005-06              2006-07
 Personnel Services                      104,244                105,354             105,352               104,634
 Contracted Services                      28,045                 36,700              36,700                36,925
 Materials and Supplies                   10,495                 14,800              14,800                14,900
 Other Charges                            56,947                 71,383              71,383                89,056
 Operating Transfers                     101,667                213,334             213,334               146,667
 Capital Outlay                                0                      0                   0                     0

 Total                                   301,398                441,571             441,569               392,182




                                                      329
Goals and Objectives

   •   To operate, maintain and develop a safe, attractive, and economically viable airport to serve the people of
       San Marcos and the aviation- using public.

What We Accomplished in 2005-06

   •   Completed an additional phase of concrete apron rehabilitation at a cost of $1,000,000.00
   •   Completed an update and replacement of the airport taxiway and runway lighting system.

What We Plan to Accomplish in 2006-07

   •   Design and construct a Federal Aviation Administration approved and operated air traffic control tower. A
       federal Airport Improvement Program grant will pay 90% of the project costs.

Performance Measures

                                                          Unit of         Actual        Estimated      Projected
                                                          Measure        2004-05         2005-06       2006-07
                                                         24-Hour
 Airport Availability For Public Use                                        365            365            365
                                                        Increments
                                                         Accidents
 Accident Rate                                                               0              0              0
                                                         Per Year
                                                          Number
                                                        Answerable
 Inspection Results                                                          0              0              0
                                                        Discrepan-
                                                           cies
                                                          Aircraft
                                                         Takeoff,
 Air Operations Supported                                Landing,        120,000         135,000        150,000
                                                            Or
                                                         Approach
 Based Aircraft Accommodated                               Each             230            235            240
 Grounds Maintained                                        Acre            1,356          1,356          1,356
 Runways Maintained                                        Each              3              3              3
 Ramp Area Maintained                                      Acre             60             60             60
 City Owned Hangars And Shelters Maintained                Each             38             38             38




                                                    330
            City of San Marcos                              Original
               Fiscal Year 2006/2007            Actual     Approved      Estimated     Proposed    Percent of
                   Annual Budget              2004/2005    2005/2006    2005/2006     2006/2007     Change

Fund 680 - Municipal Airport Fund
Department 250 - Airport Administration

51100   Salaries                                  76,212       75,920        77,818       75,000       -1.2%
51110   W/C Insurance                                154          142           145        1,243      775.6%
51120   Overtime                                     -            -             -          1,000      100.0%
51190   Medicare                                   1,148        1,166         1,194        1,103       -5.4%
51200   FICA                                       5,116        4,986         5,107        4,712       -5.5%
51210   TMRS                                      11,050       10,931        11,208       10,815       -1.1%
51220   Insurance                                  6,113        5,380         5,380       10,760      100.0%
51300   Stability Pay                                852          900           900          -       -100.0%
51320   Market / Merit / COLA Increase               -          2,329           -            -       -100.0%
51350   Car Allowance                              3,600        3,600         3,600          -       -100.0%

        Total Personnel Services                 104,244      105,354       105,352      104,634       -0.7%

52100   Printing and Publications                    870        1,000         1,000        1,000       0.0%
52110   Telephone                                    588        1,800         1,800        1,800       0.0%
52140   Power and Lights                          17,713       24,000        24,000       24,000       0.0%
52150   Utilities - Water and Sewer                2,323        2,400         2,400        2,400       0.0%
52160   Professional Services                      4,735        5,000         5,000        5,000       0.0%
52391   Information Technology Services              -            -             -            225     100.0%
52660   Repairs - Building and Equipment           1,816        2,500         2,500        2,500       0.0%

        Total Contracted Services                 28,045       36,700        36,700       36,925        0.6%

53120   Chemicals                                  2,350        2,500         2,500        2,500       0.0%
53140   Fuel and Lubrication                         892        1,500         1,500        1,000     -33.3%
53150   Supplies - Other                           7,098       10,000        10,000       10,000       0.0%
53160   Supplies - Office                            -            500           500          500       0.0%
53180   Postage                                      154          300           300          300       0.0%
53340   Uniforms                                     -            -             -            600     100.0%

        Total Materials and Supplies              10,495       14,800        14,800       14,900        0.7%

54140   Dues and Subscriptions                       250          250           250          250        0.0%
54160   Insurance                                  4,518        5,000         5,000        5,000        0.0%
54340   Professional Development                   1,497        1,500         1,500        2,000       33.3%
54800   Reimbursement to General Fund (100)       50,683       64,633        64,633       81,806       26.6%

        Total Other Charges                       56,947       71,383        71,383       89,056       24.8%

58670   Op Trsfr - Airport CIP (670)             101,667      213,334       213,334      146,667      -31.3%

        Total Operating Transfers                101,667      213,334       213,334      146,667      -31.3%



Total Municipal Airport Fund                     301,398      441,571       441,569      392,182      -11.2%




                                                331
332
                                CITY OF SAN MARCOS
                                              2006-07 Annual Budget
                                SOLID WASTE COLLECTION UTILITY FUND
                                                         Actual         Approved         Revised         Proposed
                                                       2004/2005        2005/2006       2005/2006       2006/2007


Operating Revenues
 Residential Garbage Collection Fee                         963,628         918,000         998,303       1,062,794
 Landfill Reserve Fee                                        16,923          17,096          17,677          18,031
 Penalties                                                   22,503             -            22,680          22,680
 Recycling Collection Fee                                    99,234          91,738          98,397         100,365
 Other Revenue                                                  418             -               -               -

Total Operating Revenue                                    1,102,706      1,026,834       1,137,057       1,203,869

Operating Expenses
 Contracted Services                                       1,049,388      1,096,396       1,096,700       1,163,158
 Other Charges                                                17,365         15,250          17,500          17,750

Total Operating Expenses                                   1,066,752      1,111,646       1,114,200       1,180,908

Operating Income/ (Loss)                                     35,953         (84,812)         22,857          22,961

One-Time Revenues
 One-Time Operating Transfers                                      -                -               -               -
 Prior Period Adjustment                                           -                -               -               -

Net Change in Fund Balance                                   35,953         (84,812)         22,857          22,961
Reserved for Future Landfill Expenses                      (211,374)        (17,096)            -           (18,031)
Beginning Fund Balance - Reserved and Unreserved            158,617         (16,804)        (16,804)          6,053

Ending Unreserved Fund Balance                               (16,804)      (118,712)           6,053         10,983




Fund Balance as a Percentage of Operating Expenses            0.00%            0.00%           0.00%           0.93%




                                                     333
            City of San Marcos                                 Original
               Fiscal Year 2006/2007              Actual      Approved       Estimated     Proposed     Percent of
                   Annual Budget                2004/2005     2005/2006     2005/2006     2006/2007      Change

Fund 685 - Waste Collection Utility Fund
Department 257 - Other Charges

52250   Garbage Contract - Residential Pickup      943,106       996,891        998,303     1,062,794        6.6%
52270   Garbage Contract - Recycle Pickup           88,918        99,505         98,397       100,365        0.9%

        Total Contracted Services                 1,032,023     1,096,396     1,096,700     1,163,158        6.1%

54740   Bad Debt                                    17,365        15,250         17,500       17,750        16.4%

        Total Other Charges                         17,365        15,250         17,500       17,750        16.4%


Total Other Charges                               1,049,388     1,096,396     1,096,700     1,163,158        6.1%




                                                  334
                               CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                               CEMETERY PERPETUAL CARE TRUST FUND
                                                        Actual        Approved       Revised       Proposed
                                                      2004/2005       2005/2006     2005/2006     2006/2007


Operating Revenues
 Interest Income                                            24,547         16,720        32,000        36,000
 Perpetual Care Sales                                       44,040         32,000        44,100        44,200

Total Operating Revenues                                    68,587         48,720        76,100        80,200

Operating Expenditures
 Operating Transfers                                              -        26,400        26,400        43,800

Total Operating Expenditures                                      -        26,400        26,400        43,800

Operating Income/ (Loss)                                    68,587         22,320        49,700        36,400

Net Change in Fund Balance                                  68,587         22,320        49,700        36,400
Beginning Unreserved Fund Balance                          823,210        891,797       891,797       941,497

Ending Unreserved Fund Balance                             891,797        914,117       941,497       977,897


Fund Balance as a Percentage of Total Expenditures         100.00%        100.00%       100.00%       100.00%




                                                     335
            City of San Marcos                                  Original
               Fiscal Year 2006/2007                 Actual    Approved     Estimated     Proposed    Percent of
                   Annual Budget                   2004/2005   2005/2006    2005/2006    2006/2007     Change

Fund 830 - Cemetery Perpetual Care Fund
Department 275 - Cemetery Care

58840   Op Trsfr - Cemetery Ops Fund (840)                 -       26,400       26,400       43,800       65.9%

        Total Operating/Administrative Transfers           -       26,400       26,400       43,800       65.9%




                                                     336
Executive Summary
Capital Improvements Program
Section 7.02 of the San Marcos City Charter requires the Planning and Zoning Commission to
submit annually to the City Council, not less than 120 days prior to the beginning of the fiscal year, a
list of recommended capital improvements found necessary or desirable. In accordance with the
city’s commitment to best business practices, and pursuant to the charter requirement, the city has
established an on-going ten-year Capital Improvements Program (CIP) to plan for capital
expenditures and identify funding sources for these projects.

The CIP is a budgetary tool for community decision-makers and suggests a variety of possible
project funding sources, ranging from operating budgets, state and federal grants, to future voter
approved bond programs. The CIP also suggests the particular year in which projects might be
authorized. Since the first year of each CIP cycle is predominately adopted as part of the upcoming
fiscal year’s expenditures, it is important that the list of first year projects accurately reflects the
goals and priorities of the City Council and the capacity of the city to provide the funding. The nine
subsequent years in the document are utilized for planning purposes only.

A CIP project generally involves a capital expenditure of public funds, beyond maintenance and
operating cost, for the acquisition, construction or improvement of a needed physical facility.

CIP Process
February - City Council Budget Workshop. The City Council adopts a budget policy statement that
includes their priorities for the upcoming fiscal year.

February / March - Meeting is held with the Council of Neighborhood Associations to kick-off the
Capital Improvements Plan process. The purpose of the meeting is to report on the status of the
current CIP and to solicit ideas and suggestions for new projects. All suggestions are compiled and
distributed to appropriate city personnel for evaluation and possible inclusion in the upcoming CIP.

March / April - Department Heads prepare their project submittals for inclusion in the CIP. Project
Input Forms are compiled by the Planning and Development Services Department and the draft CIP
is assembled.

April - The Administrative Review Committee reviews the draft CIP. This committee consists of
the City Manager, Deputy City Manager, and the Directors of Finance and Planning and
Development Services. The purpose of this review is to evaluate project proposals, coordinate the
timing of projects, review funding proposals.




                                               337
May - Planning and Zoning Commission review. Workshops are held to discuss project proposals
and public hearings are held to solicit participation and comments.

June - City Council receives CIP recommendation and incorporates year one into the upcoming
budget development process.

City Council Priorities
Each year the CIP reflects the priorities established by the City Council in their budget policy
statement. Past CIP’s have indicated a strong City Council commitment to upgrading and building
the city’s water and wastewater systems, and building new facilities to provide better services to the
public. Projects such as the new surface water treatment plant reduced the city’s dependence on
underground water from the Edwards Aquifer. The reconstruction and upgrading of the wastewater
treatment plant increased the capacity of the facility and improved the quality of the discharge into
the San Marcos River. These and other projects, such as the construction of a new library, fire
station, and activity center, were all CIP projects that evolved from a conceptual stage to the fully
funded and ready to be bid stage in the first year of the CIP.

The Capital Improvements Program for Fiscal Years 2004/05 to 2013/14 recognizes City Council
priorities and demonstrates a commitment to address the growth-related challenges facing the
community. Growth issues, the economy, and the quality of life of the citizens are all impacted by
the effectiveness of the city’s thoroughfare system, and the CIP reflects a focus of future financial
resources toward street and drainage projects.

Funding Sources
A variety of funding sources are identified in the CIP. Time constraints, previous commitments,
voter approvals, revenues, and fund balances can determine which of the various sources is most
appropriate for a particular project. The following definitions were utilized to determine the project
funding recommendations contained in the CIP:

General Obligation Bonds (GO’s) – Bonds that finance a variety of public projects such as streets,
buildings, and capital improvements. GO’s are backed by the full faith and credit of the government
entity and are repaid through assessment of a property tax levy. GO’s are issued only after receiving
voter approval.

Certificates of Obligation (CO’s) – Debt instruments used to finance capital improvement projects.
CO’s are backed by the full faith and credit of the government entity and are fully payable from a
property tax levy. CO’s differ from GO’s in that they are approved by the City Council and are not
voter approved.

Revenue Bond – Bonds whose principal and interest are payable exclusively from user fees.
Revenue bonds are backed by the full faith and credit of the government entity.



                                               338
General Fund – The general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund. The General Fund is used as a
funding source for projects related to streets, public buildings, parks, and other capital improvements
for the general use of the citizenry.

Electric Utility Fund – The fund used to account for operations financed through the sale of
electricity. The Electric Utility Fund is used as a funding source for projects related to the electric
distribution system.

Water/Wastewater Utility Fund – The fund used to account for operations financed through the sale
of water and wastewater treatment. The Water/Wastewater Utility Fund is used as a funding source
for projects related to the water and wastewater system.

Grants – Contributions or gifts of cash or other assets from another governmental agency or
foundation to be used for a specific purpose, activity or facility.

Operating Budget Impact
The Capital Improvements Program is primarily funded through the issuance of general obligation
bonds, revenue bonds, certificates of obligation and grants from external agencies. Funding through
annual budget appropriations is rare and used for smaller projects that can be completed within a
fiscal year or shortly thereafter. The majority of projects within the CIP are for infrastructure
construction, reconstruction and improvements. The operational impact of these projects is minimal
other than incorporating those projects into ongoing maintenance and upkeep with other
infrastructure assets. Those projects that will affect operation budgets are identified and quantified.

The first year of the CIP is funded through the issuance of debt. The corresponding principal and
interest payments are budgeted within the respective fund. Other than debt service payments, there
are no other budgeted amounts for operations unless specifically identified. It is rare that a CIP will
cause an significant increase in operational expenses. Most operational budgets are increased
because of other factors. Although conceptually a physical improvement should reduce operational
expenses for repair, the likelihood is that the operational expense will remain budgeted for other
needed repair expenses.

Operational impacts for CIP projects listed in years two through ten are estimates and will not
impact the adopted budget. These future operational impacts are for planning purposes only and are
used to evaluate whether a project receives appropriation.




                                               339
Proposed Projects                                           Fund Source            Prior Funding    FY 06-07     FY 07-08     FY 08-09     FY 09-10     FY 10-11


Airport:
Air Traffic Control Tower                                   GF / FAA                  $1,666,667   $1,500,000
Pavement Rehabilitation                                     GF / FAA                                            $1,000,000
Airport Rescue & Firefighting Facility                      GF / FAA                                                         $1,500,000
New Airport Entrance Road                                   GF / FAA                                                                       $800,000
Runway 17-35 Lengthening (Engineering)                      GF / FAA                                                                                    $300,000
Runway 17-35 Lengthening (Construction)                     GF / FAA

Airport Lighting System Refurbishment                       GF / FAA

Runway 13-31 Lengthening (Engineering)                      GF / FAA

Runway 13-31 Lengthening (Construction)                     GF / FAA

North Side Infrastructure Development                       GF / FAA

                                                   Total:                             $1,666,667   $1,500,000   $1,000,000   $1,500,000    $800,000     $300,000



Electric Utility:
Reconductor 4/0 at Stones Camper Sales                      E.U. Fund                    $85,000
Reconductor University Drive Phase 2                        E.U. Fund                   $110,000
Reconductor Feeder San Marcos Sub #170                      E.U. Fund                   $133,000
Reconductor Post Road                                       E.U. Fund                   $160,000
Upgrade Feeder Breaker Controllers                          E. U. Fund                   $61,500
Redwood Substation Bank #3                                  E.U. Fund                   $360,000     $95,000
Breakers for Substation #7                                  E. U. Fund                               $27,000
Hutchison to San Antonio Street Tie Line                    E. U. Fund                               $58,500
Phase III Post Road Relocate - Travis                       E. U. Fund                               $85,000
Substation #7 Feeder Lines                                  E. U. Fund                              $138,500
Testing/Maintenance Substation Power Transformer            E. U. Fund                               $24,000      $26,000
Conversion SM Treatment Center to URD                       E. U. Fund                                            $60,000
Upgrade Lines Springlake Hills Subd.                        E. U. Fund                                            $95,000
Reconductor Feeder San Marcos Sub #180                      E.U. Fund                                            $158,000
Reconductor Ranch Road 12 Feeders                           E.U. Fund                                            $241,000
Change out existing SCADA System                            E.U. Fund                                                         $105,000
Substation #7                                               E.U. Fund                                                         $800,000
Replace Power Bank #1 San Marcos Substation                 E.U. Fund                                                                      $820,000
Replace Power Bank #2 San Marcos Substation                 E.U. Fund                                                                      $820,000
                                                   Total:                               $909,500    $428,000     $580,000     $905,000    $1,640,000          $0



Parks and Public Buildings:
ADA/ Building Renovations 1                                 C of O                       $48,000    $440,000
Rogers Ridge Greenspace Acquisition 2                       G.O. Bonds                                          $2,000,000
Parks Master Plan Implementation                            Grants/Sale of Prop                                  $130,000    $1,000,000     $10,000     $120,000
Consolidated Permitting Services                            C of O                                                           $2,446,000
Downtown Parking Garage                                     C of O                                                           $4,000,000
Parkland Improvements 1                                     General Fund/ C of O                    $200,000                                $24,000      $20,000
Rio Vista Tennis Courts                                     General Fund                            $230,000     $230,000
Expansion of the Public Library                             G.O. Bonds                                                                                  $397,580
Habitat Conservation Plan Implementation 1                  C of O/Corps of Eng         $570,000    $210,000                                            $700,000
Skate Park                                                  C of O                                  $284,161
                                                   Total:                               $618,000   $1,364,161   $2,360,000   $7,446,000     $34,000    $1,237,580



Public Safety:
Relocation of Central Fire Station 2                        G.O. Bonds                              $915,000    $2,050,000
Replace Engine - Academy St Station 1                       C of O                                               $460,000
Centerpoint/McCarty Lane - Outlet Mall Station              C of O                                               $965,000    $2,725,000
Purchase Second Rescue Unit 1                               C of O                                                                         $400,000
Blanco Vista Fire Station                                   G.O. Bonds

Replace Rescue Unit                                         Other                                                                                       $400,000
Replace Broadway Street Engine                              C of O                                                                                      $550,000
Replace 65' Aerial Fire Truck                               C of O

Hwy 123 - SMCISD Fire Station                               G.O. Bonds/Other                                                               $975,000    $2,400,000
Airport Fire Station                                        C of O/ Grant



                                                   Total:                                           $915,000    $3,475,000   $2,725,000   $1,375,000   $3,350,000




                                                                                     340
                                                                         FY 2006 - 2007 to FY 2015 - 2016 Capital Improvements Program


Proposed Projects                                            FY 11-12     FY 12-13         FY 13-14           FY 14-15          FY 15-16      Total Funds


Airport:
Air Traffic Control Tower                                                                                                                      $3,166,667
Pavement Rehabilitation                                                                                                                        $1,000,000
Airport Rescue & Firefighting Facility                                                                                                         $1,500,000
New Airport Entrance Road                                                                                                                       $800,000
Runway 17-35 Lengthening (Engineering)                                                                                                          $300,000
Runway 17-35 Lengthening (Construction)                     $2,500,000                                                                         $2,500,000
Airport Lighting System Refurbishment                                     $750,000                                                              $750,000
Runway 13-31 Lengthening (Engineering)                                                     $250,000                                             $250,000
Runway 13-31 Lengthening (Construction)                                                                     $2,500,000                         $2,500,000
North Side Infrastructure Development                                                                                         $1,000,000       $1,000,000
                                                   Total:   $2,500,000    $750,000         $250,000         $2,500,000        $1,000,000      $13,766,667



Electric Utility:
Reconductor 4/0 at Stones Camper Sales                                                                                                           $85,000
Reconductor University Drive Phase 2                                                                                                            $110,000
Reconductor Feeder San Marcos Sub #170                                                                                                          $133,000
Reconductor Post Road                                                                                                                           $160,000
Upgrade Feeder Breaker Controllers                                                                                                               $61,500
Redwood Substation Bank #3                                                                                                                      $455,000
Breakers for Substation #7                                                                                                                       $27,000
Hutchison to San Antonio Street Tie Line                                                                                                         $58,500
Phase III Post Road Relocate - Travis                                                                                                            $85,000
Substation #7 Feeder Lines                                                                                                                      $138,500
Testing/Maintenance Substation Power Transformer                           $28,000           $38,000                                            $116,000
Conversion SM Treatment Center to URD                                                                                                            $60,000
Upgrade Lines Springlake Hills Subd.                                                                                                             $95,000
Reconductor Feeder San Marcos Sub #180                                                                                                          $158,000
Reconductor Ranch Road 12 Feeders                                                                                                               $241,000
Change out existing SCADA System                                                                                                                $105,000
Substation #7                                                                                                                                   $800,000
Replace Power Bank #1 San Marcos Substation                                                                                                     $820,000
Replace Power Bank #2 San Marcos Substation                                                                                                     $820,000
                                                   Total:          $0      $28,000           $38,000                 $0                  $0    $4,528,500



Parks and Public Buildings:
                              1
ADA/ Building Renovations                                                                                                                       $488,000
                                             2
Rogers Ridge Greenspace Acquisition                                                                                                            $2,000,000
Parks Master Plan Implementation                            $1,000,000     $10,000         $120,000         $1,000,000                         $3,390,000
Consolidated Permitting Services                                                                                                               $2,446,000
Downtown Parking Garage                                                                                                                        $4,000,000
                          1
Parkland Improvements                                         $24,000     $240,000           $24,000          $240,000                          $772,000
Rio Vista Tennis Courts                                                                                                                         $460,000
Expansion of the Public Library                             $4,236,390                                                                         $4,633,970
Habitat Conservation Plan Implementation 1                                $700,000                            $700,000                         $2,880,000
Skate Park                                                                                                                                      $284,161
                                                   Total:   $5,260,390    $950,000         $144,000         $1,940,000                   $0   $21,354,131



Public Safety:
Relocation of Central Fire Station 2                                                                                                           $2,965,000
                                         1
Replace Engine - Academy St Station                                                                                                             $460,000
Centerpoint/McCarty Lane - Outlet Mall Station                                                                                                 $3,690,000
Purchase Second Rescue Unit 1                                                                                                                   $400,000
Blanco Vista Fire Station                                    $200,000    $2,100,000                                                            $2,300,000
Replace Rescue Unit                                                                                                                             $400,000
Replace Broadway Street Engine                                                                                                                  $550,000
Replace 65' Aerial Fire Truck                                $700,000                                                                           $700,000
Hwy 123 - SMCISD Fire Station                                                                                                                  $3,375,000
Airport Fire Station                                                                                          $210,000        $3,750,000       $3,960,000


                                                   Total:    $900,000    $2,100,000                $0         $210,000        $3,750,000      $18,800,000




                                                               341
Streets:
N LBJ (Sessom to Holland) 1                                   C of O/CAMPO       $2,000,000
Rio Vista Sreet Reconstruction                                C of O             $1,200,000
Misc Intersection Improvements                                C of O                           $150,000
                                                 2
Hutchison LBJ Street & Sidewalk Reconstruction                Revenue Bonds                    $880,000
Aquarena Springs Dr/ IH-35 Turn Lane Improvements             C of O                            $37,950
Sessom Drive Reconstruction 2                                 GO Bonds/Campo      $775,000                  $200,000      $575,000
McCarty Lane Improvements                                     C of O                           $200,000    $1,200,000
River Ridge Entrance and Exit Ramps                           CO/CAMPO/Owners                  $250,000     $250,000
Wonder World Drive Widening & Extension 1                     C of O/TxDOT      $14,748,000   $5,150,000                $42,750,000
Bike and Pedestrian Improvements 2                            GO Bonds/Grants                  $100,000     $245,000      $350,000     $390,000      $100,000
Transportation Improvement Participation 1                    C of O              $500,000     $250,000     $250,000      $250,000     $250,000      $250,000
Misc Intersection Improvements                                C of O                                        $150,000
Donaldson St/Transit Center U-turn Improvements 2             C of O                                        $200,000
Thorpe Ln & Hopkins St Intersection Improvements 2            GO Bonds                                      $225,000     $1,100,000
Victory Gardens Street Reconstruction 2                       C of O                                         $70,000      $750,000
Railroad Quiet Zone                                           C of O                                        $598,000                                 $552,000
Comanche/Sessom & CM Allen/Cheatham Signal                    GO Bonds                                                    $200,000
                                             2
Loop 82 RR Overpass & Post Rd Realignment                     GO Bonds/TxDOT                                            $11,380,000
Craddock Avenue Extension 1                                   C of O                                                      $552,500    $2,000,000
Wallace Addition Street Reconstruction 2                      GO Bonds                                                                $2,600,000
Repair Cape Rd Bridge at San Marcos River                     C of O                                                                    $50,000      $350,000
River Rd RR Overpass Improvements                             C of O/GO Bonds     $450,000                                                          $9,775,001
Transportation Master Plan                                    C of O                                                                                 $420,000
FM 2439 (Hunter Rd) Improvements                              GO Bonds/TxDOT                                                                         $262,500
River Ridge Extension to Post Road                            GO Bonds

River Ridge Extension to SH 21                                GO Bonds/TxDOT

Dunbar Street Reconstruction                                  GO Bonds

SH 21 Bridge Across San Marcos River                          C of O/GO Bonds

IH-35 River Road Underpass                                    C of O/GO Bonds



                                                     Total:                     $19,673,000   $7,017,950   $3,388,000   $57,907,500   $5,290,000   $11,709,501



Drainage:
Rio Vista Drainage                                            Rev Bonds          $2,009,000
Hutchison Drainage                                            Rev Bonds          $1,387,000   $1,387,000
Sessom Drive Drainage                                         Rev Bonds                         $78,750     $630,000
McCarty Lane Improvements                                     Rev Bonds                         $50,000     $500,000
Stormwater Drainage Improvements                              Rev Bonds                        $150,000     $150,000      $150,000     $150,000      $150,000
Thorpe Lane Drainage Improvements                             Rev Bonds            $45,000                  $175,000      $650,000
Victory Gardens Drainage Improvements                         Rev Bonds                                     $331,000    $2,205,000
S Bishop Street Drainage Improvements                         Rev Bonds                                                   $220,000    $1,150,000
Wallace Addition Drainage Improvements                        Rev Bonds                                                               $1,035,000
East Guadalupe Drainage Improvements                          Rev Bonds                                                                $270,000     $1,800,000
River Road Drainage                                           Rev Bonds                                                                              $893,000
Drainage Master Plan Update                                   Rev Bonds           $200,000
Blanco Gardens Drainage Improvements                          Rev Bonds                                                                              $525,000
Dunbar Drainage Improvements                                  Rev Bonds

Sunset Acres Drainage Improvements                            Rev Bonds



                                                     Total:                      $3,641,000   $1,665,750   $1,786,000    $3,225,000   $2,605,000    $3,368,000




                                                                                342
Streets:
N LBJ (Sessom to Holland) 1                                                                                                                         $2,000,000
Rio Vista Sreet Reconstruction                                                                                                                      $1,200,000
Misc Intersection Improvements                                                                                                                       $150,000
                                                          2
Hutchison LBJ Street & Sidewalk Reconstruction                                                                                                       $880,000
Aquarena Springs Dr/ IH-35 Turn Lane Improvements                                                                                                     $37,950
                                  2
Sessom Drive Reconstruction                                                                                                                         $1,550,000
McCarty Lane Improvements                                                                                                                           $1,400,000
River Ridge Entrance and Exit Ramps                                                                                                                  $500,000
                                                  1
Wonder World Drive Widening & Extension                                                                                                            $62,648,000
                                      2
Bike and Pedestrian Improvements                                                                                                                    $1,185,000
                                              1
Transportation Improvement Participation                                        $250,000     $250,000      $250,000     $250,000      $250,000      $3,000,000
Misc Intersection Improvements                                                                                                                       $150,000
                                                              2
Donaldson St/Transit Center U-turn Improvements                                                                                                      $200,000
                                                                  2
Thorpe Ln & Hopkins St Intersection Improvements                                                                                                    $1,325,000
                                          2
Victory Gardens Street Reconstruction                                                                                                                $820,000
Railroad Quiet Zone                                                                                                                                 $1,150,000
Comanche/Sessom & CM Allen/Cheatham Signal                                                                                                           $200,000
                                                      2
Loop 82 RR Overpass & Post Rd Realignment                                                                                                          $11,380,000
                              1
Craddock Avenue Extension                                                                                                                           $2,552,500
                                          2
Wallace Addition Street Reconstruction                                                                                                              $2,600,000
Repair Cape Rd Bridge at San Marcos River                                                                                                            $400,000
River Rd RR Overpass Improvements                                                                                                                  $10,225,001
Transportation Master Plan                                                                                                            $400,000       $820,000
FM 2439 (Hunter Rd) Improvements                                               $2,520,000                                                           $2,782,500
River Ridge Extension to Post Road                                              $735,000    $2,887,500                                              $3,622,500
River Ridge Extension to SH 21                                                              $1,312,500    $9,555,000                               $10,867,500
Dunbar Street Reconstruction                                                                              $1,625,000                                $1,625,000
SH 21 Bridge Across San Marcos River                                                                       $500,000    $1,500,000   $15,000,000    $17,000,000
IH-35 River Road Underpass                                                                                             $1,500,000   $11,500,000    $13,000,000


                                                                      Total:   $3,505,000   $4,450,000   $11,930,000   $3,250,000   $27,150,000   $155,270,951



Drainage:
Rio Vista Drainage                                                                                                                                  $2,009,000
Hutchison Drainage                                                                                                                                  $2,774,000
Sessom Drive Drainage                                                                                                                                $708,750
McCarty Lane Improvements                                                                                                                            $550,000
Stormwater Drainage Improvements                                                $150,000     $150,000      $150,000     $150,000      $150,000      $1,500,000
Thorpe Lane Drainage Improvements                                                                                                                    $870,000
Victory Gardens Drainage Improvements                                                                                                               $2,536,000
S Bishop Street Drainage Improvements                                                                                                               $1,370,000
Wallace Addition Drainage Improvements                                                                                                              $1,035,000
East Guadalupe Drainage Improvements                                                                                                                $2,070,000
River Road Drainage                                                                                                                                  $893,000
Drainage Master Plan Update                                                     $378,000                                                             $578,000
Blanco Gardens Drainage Improvements                                           $4,000,000                                                           $4,525,000
Dunbar Drainage Improvements                                                    $396,000    $2,640,000                                              $3,036,000
Sunset Acres Drainage Improvements                                                                         $760,000    $5,040,000                   $5,800,000


                                                                      Total:   $4,924,000   $2,790,000     $910,000    $5,190,000     $150,000     $30,254,750




                                                                                     343
Water System:
North LBJ 12" Water Line                                     Revenue Bonds    $600,000
McCarty IH-35 El Camino 3 16" Water                          Revenue Bonds    $375,000
McCarthy 16" Water IH 35 to Hunter Road                      Revenue Bonds    $550,000
Rio Vista Water Improvements                                 Revenue Bonds   $1,600,000
Posey Rd 12" Water-Old Bastrop to Hunter                     Revenue Bonds    $500,000     $400,000
Post Road 16" to 24" Oversize                                Revenue Bonds                 $600,000
Onsite Chlorine/Miox Generation GW Facilities                Revenue Bonds                 $420,000
Butler Fire Retrofit                                         Revenue Bonds                 $350,000
Cottonwood 1 MG Elevated Tank                                Revenue Bonds                $2,700,000
Ground Water Plant Generators                                Revenue Bonds                $1,220,000
Camino Real Transmission Improvements Ph 3A                  Revenue Bonds                $1,500,000
Water Distribution Improvements                              Revenue Bonds                 $150,000     $150,000     $150,000     $150,000     $150,000
Water Pump Station Improvements                              Revenue Bonds                 $100,000     $100,000     $100,000     $100,000     $100,000
Water Supply                                                 Revenue Bonds                 $854,000     $813,000     $250,000     $250,000     $250,000
River Road Water Line Extension                              Revenue Bonds                              $460,000
Railroad Water Line Encasements                              Revenue Bonds                              $470,000
24" Transmission Main-Spring Lake - Comanche                 Revenue Bonds                              $135,000    $1,050,000
Victory Gardens Water Improvements                           Revenue Bonds                              $100,000     $650,000
Main Extensions and Replacements                             Revenue Bonds    $400,000                  $200,000     $200,000     $200,000     $200,000
Redwood Road Oversize                                        Revenue Bonds                              $600,000                               $600,000
Camino Real Transmission Improvements Ph 3B                  Revenue Bonds                                           $950,000
Wallace Addition Water Improvements                          Revenue Bonds                                            $95,000     $800,000
Hwy. 123 12" AC Replacement                                  Revenue Bonds                                                        $775,000
IH 35S 12" Water from FM 3407 to Civic Center                Revenue Bonds                                                       $1,238,659
Cottonwood Creek Pkwy 16" Water                              Revenue Bonds                                                                     $800,000
IH 35S 12" Water- N of McCarty to Centerpoint                Revenue Bonds                                                                     $850,000
Leah Dr 12" Water-Cottonwood Pkwy - Clovis Barker            Impact Fees                                                                       $465,000
Heritage Water Improvements                                  Revenue Bonds                                                                     $300,000
SWTP Expansion to 18.0 MGD                                   Revenue Bonds                                                                    $1,000,000
River Ridge 16" water                                        Revenue Bonds

Water Master Plan                                            Revenue Bonds

Centerpoint 24" Xmission Main-IH 35 - Old Bastrop            Revenue Bonds

Hunter Rd 12" Water - Posey to Centerpoint                   Revenue Bonds

Staples Rd 16" Water - DeZavala to Old Bastrop               Impact Fees

Red Sky Sd Water Line Replacement                            Revenue Bonds

Southridge Estates Water Line Replacement                    Revenue Bonds

Soyars Storage Tank                                          Revenue Bonds

Airport 12" - River Ridge to Wm Pettus                       FAA Grant

Dunbar Water Replacement                                     Revenue Bonds

Green Haven & Briarwood Improvements                         Revenue Bonds

Old Bastrop Hwy 12"-Posey to Francis Harris                  Impact Fees

Old Bastrop Hwy 16"- Centerpoint to Posey                    Revenue Bonds

Stagecoach Trail to McCarty Tank 16" Water                   Revenue Bonds

Deerwood Estates & Sleepy Hollow Improvements                Revenue Bonds

Northeast Elevated Storage Tank                              Revenue Bonds



                                                    Total:                   $4,025,000   $8,294,000   $3,028,000   $3,445,000   $3,513,659   $4,715,000




                                                                             344
Water System:
North LBJ 12" Water Line                                                                                                         $600,000
McCarty IH-35 El Camino 3 16" Water                                                                                              $375,000
McCarthy 16" Water IH 35 to Hunter Road                                                                                          $550,000
Rio Vista Water Improvements                                                                                                    $1,600,000
Posey Rd 12" Water-Old Bastrop to Hunter                                                                                         $900,000
Post Road 16" to 24" Oversize                                                                                                    $600,000
Onsite Chlorine/Miox Generation GW Facilities                                                                                    $420,000
Butler Fire Retrofit                                                                                                             $350,000
Cottonwood 1 MG Elevated Tank                                                                                                   $2,700,000
Ground Water Plant Generators                                                                                                   $1,220,000
Camino Real Transmission Improvements Ph 3A                                                                                     $1,500,000
Water Distribution Improvements                                $150,000     $150,000     $150,000     $150,000     $150,000     $1,500,000
Water Pump Station Improvements                                $100,000     $100,000     $100,000     $100,000     $100,000     $1,000,000
Water Supply                                                   $250,000     $250,000     $250,000     $250,000     $250,000     $3,667,000
River Road Water Line Extension                                                                                                  $460,000
Railroad Water Line Encasements                                                                                                  $470,000
24" Transmission Main-Spring Lake - Comanche                                                                                    $1,185,000
Victory Gardens Water Improvements                                                                                               $750,000
Main Extensions and Replacements                               $200,000     $200,000     $200,000     $200,000     $200,000     $2,200,000
Redwood Road Oversize                                                                                                           $1,200,000
Camino Real Transmission Improvements Ph 3B                                                                                      $950,000
Wallace Addition Water Improvements                                                                                              $895,000
Hwy. 123 12" AC Replacement                                                                                                      $775,000
IH 35S 12" Water from FM 3407 to Civic Center                                                                                   $1,238,659
Cottonwood Creek Pkwy 16" Water                                                                                                  $800,000
IH 35S 12" Water- N of McCarty to Centerpoint                                                                                    $850,000
Leah Dr 12" Water-Cottonwood Pkwy - Clovis Barker                                                                                $465,000
Heritage Water Improvements                                   $1,650,000                                                        $1,950,000
SWTP Expansion to 18.0 MGD                                    $9,000,000                                                       $10,000,000
River Ridge 16" water                                         $1,295,000                                                        $1,295,000
Water Master Plan                                              $400,000                                                          $400,000
Centerpoint 24" Xmission Main-IH 35 - Old Bastrop              $165,000     $950,000                                            $1,115,000
Hunter Rd 12" Water - Posey to Centerpoint                     $110,000     $750,000                                             $860,000
Staples Rd 16" Water - DeZavala to Old Bastrop                 $130,000     $900,000                                            $1,030,000
Red Sky Sd Water Line Replacement                                           $950,000                                             $950,000
Southridge Estates Water Line Replacement                                  $2,000,000                                           $2,000,000
Soyars Storage Tank                                                         $220,000    $1,670,000                              $1,890,000
Airport 12" - River Ridge to Wm Pettus                                                  $1,400,000                              $1,400,000
Dunbar Water Replacement                                                                $1,400,000                              $1,400,000
Green Haven & Briarwood Improvements                                                     $850,000                                $850,000
Old Bastrop Hwy 12"-Posey to Francis Harris                                              $620,000                                $620,000
Old Bastrop Hwy 16"- Centerpoint to Posey                                                $910,000                                $910,000
Stagecoach Trail to McCarty Tank 16" Water                                               $125,000     $750,000                   $875,000
Deerwood Estates & Sleepy Hollow Improvements                                                         $375,000    $3,460,000    $3,835,000
Northeast Elevated Storage Tank                                                                       $390,000    $2,350,000    $2,740,000


                                                    Total:   $13,450,000   $6,470,000   $7,675,000   $2,215,000   $6,510,000   $63,340,659




                                                                    345
Wastewater System:
Rio Vista Wastewater Improvements                        Revenue Bonds   $1,300,000
Davis Lane Wastewater Improvements                       Revenue Bonds    $480,000
Concho Street Wastewater Improvements                    Revenue Bonds    $100,000
Nevada Street Wastewater Improvements                    Revenue Bonds    $250,000
MKT RR 8" Rehabilitation                                 Revenue Bonds                   $440,000
River Rd Lift Station Improvements (LS 14)               Revenue Bonds                   $150,000
Old Plant Upstream WW Improvements                       Revenue Bonds                   $200,000      $875,000
Wet Weather Improvements to WWTP                         Revenue Bonds                   $733,000     $4,900,000
WWTP Expansion of Grit Chamber Facility                  Revenue Bonds                    $96,000      $704,000
Sanitary Sewer Evaluation Survey & Repairs               Revenue Bonds    $100,000        $75,000      $500,000      $500,000      $500,000
Wastewater Lift Station Improvements                     Revenue Bonds    $100,000       $100,000      $100,000      $100,000      $100,000      $100,000
Main Improvements and Replacements                       Revenue Bonds    $200,000       $200,000      $200,000      $200,000      $200,000      $200,000
Wastewater Collection Improvements                       Revenue Bonds    $200,000       $150,000      $150,000      $150,000      $150,000      $150,000
Purgatory Creek WW Interceptor                           Revenue Bonds                                $2,285,000
Eastside/ Willow Creek Interceptor Phase 3               Revenue Bonds      $31,000                    $474,000     $1,353,000
Roosevelt/ Patton, S Mitchell Street                     Revenue Bonds    $270,777                     $210,000      $812,000
Victory Gardens Wastewater Improvements                  Revenue Bonds                                  $94,500      $683,000
Main Lift Station Force Main                             Revenue Bonds                                               $876,360
Southeast Wastewater Treatment Plant                     Revenue Bonds                                               $260,000      $500,000
Posey Rd WW - IH35 to Old Bastrop                        Impact Fees                                                               $625,000
MLK/ CM Allen/ McGehee Wastewater                        Revenue Bonds                                                            $1,001,000
Galisteo Ranch WW Oversize                               Other                                                                                   $500,000
Willow Creek Wastewater Phase I                          Revenue Bonds                                                                          $2,300,000
Cottonwood Creek Interceptor S of CR 266                 Impact Fees

East Centerpoint WW Oversize                             Revenue Bonds

Cottonwood Creek Interceptor SH 123 to CR 266            Revenue Bonds

Wastewater Master Plan Update                            Revenue Bonds

Wallace Addition Wastewater Improvements                 Revenue Bonds

                                                Total:                   $3,031,777     $2,144,000   $10,492,500    $4,934,360    $3,076,000    $3,250,000


Non-revenue Projects                                                                   $10,797,111   $10,223,000   $69,578,500    $7,499,000   $16,597,081


Revenue Projects                                                                       $12,531,750   $15,886,500   $12,509,360   $10,834,659   $11,333,000
Total of All Projects by Fiscal Year:                                    $33,564,944   $23,328,861   $26,109,500   $82,087,860   $18,333,659   $27,930,081




                                                                         346
Wastewater System:
Rio Vista Wastewater Improvements                                                                                                $1,300,000
Davis Lane Wastewater Improvements                                                                                                $480,000
Concho Street Wastewater Improvements                                                                                             $100,000
Nevada Street Wastewater Improvements                                                                                             $250,000
MKT RR 8" Rehabilitation                                                                                                          $440,000
River Rd Lift Station Improvements (LS 14)                                                                                        $150,000
Old Plant Upstream WW Improvements                                                                                               $1,075,000
Wet Weather Improvements to WWTP                                                                                                 $5,633,000
WWTP Expansion of Grit Chamber Facility                                                                                           $800,000
Sanitary Sewer Evaluation Survey & Repairs                                                                                       $1,675,000
Wastewater Lift Station Improvements                       $100,000      $100,000      $100,000      $100,000      $100,000      $1,100,000
Main Improvements and Replacements                         $200,000      $200,000      $200,000      $200,000      $200,000      $2,200,000
Wastewater Collection Improvements                         $150,000      $150,000      $150,000      $150,000      $150,000      $1,700,000
Purgatory Creek WW Interceptor                                                                                                   $2,285,000
Eastside/ Willow Creek Interceptor Phase 3                                                                                       $1,858,000
Roosevelt/ Patton, S Mitchell Street                                                                                             $1,292,777
Victory Gardens Wastewater Improvements                                                                                           $777,500
Main Lift Station Force Main                                                                                                      $876,360
Southeast Wastewater Treatment Plant                      $2,600,000   $26,000,000                                              $29,360,000
Posey Rd WW - IH35 to Old Bastrop                                                                                                 $625,000
MLK/ CM Allen/ McGehee Wastewater                                                                                                $1,001,000
Galisteo Ranch WW Oversize                                                                                                        $500,000
Willow Creek Wastewater Phase I                                                                                                  $2,300,000
Cottonwood Creek Interceptor S of CR 266                   $375,000                   $1,550,000                                 $1,925,000
East Centerpoint WW Oversize                               $225,000                                                               $225,000
Cottonwood Creek Interceptor SH 123 to CR 266              $125,000                    $511,000                                   $636,000
Wastewater Master Plan Update                              $450,000                                                               $450,000
Wallace Addition Wastewater Improvements                   $110,000      $990,000                                                $1,100,000
                                                Total:    $4,335,000   $27,440,000    $2,511,000     $450,000      $450,000     $62,114,637


Non-revenue Projects                                     $12,165,390    $8,250,000   $12,324,000    $7,900,000   $31,900,000   $209,191,749


Revenue Projects                                         $22,709,000   $36,728,000   $11,134,000    $7,855,000    $7,110,000   $160,238,546
Total of All Projects by Fiscal Year:                    $34,874,390   $44,978,000   $23,458,000   $15,755,000   $39,010,000   $369,430,295




                                                                347
348
                        CITY OF SAN MARCOS
                                 2006-07 ANNUAL BUDGET
                             WATER RATE – SCHEDULE UW-1
                                 (URBAN CUSTOMERS)


Applicable:
   To any customer served through a single meter for water usage within the corporate limits of the
   City. Service will be furnished under this rate schedule subject to the established rules and
   regulations of the City covering this type of service.

Rate:
   UW-1A: 5/8-3/4 Inch Water Meter:
      First 2,000 gallons - $18.98 Minimum Bill.
      2,001 gallons to 10,000 gallons - $4.45 per 1,000 gallons of fraction thereof.
      10,001 gallons to 25,000 gallons - $5.57 per 1,000 gallons or fraction thereof.
      Over 25,000 gallons - $6.18 per 1,000 gallons or fraction thereof.

   UW-1B:1-Inch Water Meter:
     First 4,000 gallons - $37.96 Minimum Bill.
     4,001 gallons to 10,000 gallons - $4.45 per 1,000 gallons or fraction thereof.
     10,001 gallons to 25,000 gallons - $5.57 per 1,000 gallons or fraction thereof.
     Over 25,000 gallons - $6.18 per 1,000 gallons or fraction thereof.

   UW-1C: 1-1/2 Inch Water Meter:
     First 8,000 gallons - $75.89 Minimum Bill.
     8,001 gallons to 10,000 gallons - $4.45 per 1,000 gallons or fraction thereof.
     10,001 gallons to 25,000 gallons - $5.57 per 1,000 gallons or fraction thereof.
     Over 25,000 gallons - $6.18 per 1,000 gallons or fraction thereof.

   UW-1D: 2-Inch Water Meter and greater:
     First 13,000 gallons - $121.44 Minimum Bill.
     13,001 gallons to 25,000 gallons - $5.57 per 1,000 gallons or fraction thereof.
     Over 25,000 gallons - $6.18 per 1,000 gallons or fraction thereof.

Single Point of Delivery:
   The above rates are based upon the supply of water to the entire premises through a single
   delivery and metering point. A separate supply of water for the same consumer at other points of
   consumption shall be separately metered and billed.




                                             349
                        CITY OF SAN MARCOS
                                 2006-07 ANNUAL BUDGET
                              WATER RATE – SCHEDULE RW-1
                                  (RURAL CUSTOMERS)


Applicable:
  To any customer served through a single meter for water usage outside the corporate limits of the
  City. Service will be furnished under this rate schedule subject to the established rules and
  regulations of the City covering this type of service.

Rate:
   RW-1A: 5/8-3/4 Inch Water Meter:
      First 2,000 gallons - $23.73 Minimum Bill.
      2,001 gallons to 10,000 gallons - $5.57 per 1,000 gallons or fraction thereof.
      10,001 gallons to 25,000 gallons - $6.96 per 1,000 gallons of fraction thereof.
      Over 25,000 gallons - $7.72 per 1,000 gallons or fraction thereof.

   RW-1B: 1-Inch Water Meter:
     First 4,000 gallons - $47.46 Minimum Bill.
     4,001 gallons to 10,000 gallons - $5.57 per 1,000 gallons or fraction thereof.
     10,001 gallons to 25,000 gallons - $6.96 per 1,000 gallons or fraction thereof.
     Over 25,000 gallons - $7.72 per 1,000 gallons or fraction thereof.

   RW-1C: 1-1/2 Inch Water Meter:
     First 8,000 gallons - $94.86 Minimum Bill.
     8,001 gallons to 10,000 gallons - $5.57 per 1,000 gallons or fraction thereof.
     10,001 gallons to 25,000 gallons - $6.96 per 1,000 gallons or fraction thereof.
     Over 25,000 gallons - $7.72 per 1,000 gallons or fraction thereof.

   RW-1D: 2-Inch Water Meter and greater:
     First 13,000 gallons - $151.79 Minimum Bill.
     13,001 gallons to 25,000 gallons - $6.96 per 1,000 gallons or fraction thereof.
     Over 25,000 gallons - $7.72 per 1,000 gallons or fraction thereof.

Single Point of Delivery:
   The above rates are based upon the supply of water to the entire premises through a single
   delivery and metering point. A separate supply of water for the same consumer at other points of
   consumption shall be separately metered and billed.




                                             350
                        CITY OF SAN MARCOS
                                 2006-07 ANNUAL BUDGET
                              WATER RATE – SCHEDULE LL-1
                                (LIFE LINE CUSTOMERS)


Applicable:

   To any urban/rural customer who qualifies for financial assistance under the rules, regulations or
   guidelines promulgated by Community Action, Inc. of Hays, Caldwell and Blanco Counties.

Rate:

   LLW-1: 5/8 - 3/4 inch water meter
     First 8,000 gallons - $18.98 minimum bill (Urban)
     First 8,000 gallons - $23.73 minimum bill (Rural)
     All increments over 8,000 gallons to be billed at normal urban/rural customer rate.

Single Point of Delivery:

   The above rates are based upon the supply of water to the entire premises through a single
   delivery and metering point. A separate supply of water for the same consumer at other points of
   consumption shall be separately metered and billed.




                                              351
                              CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                                WASTEWATER RATE – SCHEDULE US-1
                                      (URBAN CUSTOMERS)

Applicable:
   To any customer using wastewater services and being served through a single water meter,
   unless wastewater is separately measured, and within the corporate limits of the City. Service
   will be furnished under this rate schedule subject to the established rules and regulations of the
   City covering this type of service.

Rate:
   US-1A:5/8-3/4 Inch Water Meter:
      First 2,000 gallons - $22.42 Minimum Bill.
      Over 2,000 gallons - $6.46 per 1,000 gallons or fraction thereof.

    US-1B: 1-Inch Water Meter:
       First 4,000 gallons - $44.79 Minimum Bill.
       Over 4,000 gallons - $6.46 per 1,000 gallons or fraction thereof.

    US-1C: 1-1/2 Inch Water Meter:
       First 8,000 gallons - $89.57 Minimum Bill.
       Over 8,000 gallons - $6.46 per 1,000 gallons or fraction thereof.

    US-1D: 2-Inch Water Meter and greater:
       First 13,000 gallons - $143.33 Minimum Bill.
       Over 13,000 gallons - $6.46 per 1,000 gallons or fraction thereof.

Maximum Bill:
  No additional charge will be applied to a single-family Residential Customers for volumes in
  excess of 8,000 gallons for the US-1A, US-1B, US-1C rate categories.

Single Point of Delivery:
   The above rates are based upon the supply of water to the entire premises through a single
   delivery and metering point. A separate supply of water for the same consumer at other points of
   consumption shall be separately metered and billed.

Optional Methodology for Measurement of Use by Industrial Users:
    An industrial user that uses a 2-inch or larger meter may submit a written request for the use of a methodology to
    determine the amount of wastewater services used other than metering of water or wastewater use. The
    methodology must be designed to charge the user for actual wastewater service use, and is subject to approval by the
    Director of Water/ Wastewater Utility Operations. If approved, the methodology will be used for a period of three
    years, subject to renewal upon submission by the user of a renewal request accompanied by updated methodology
    information, and approval by the Director of Water/ Wastewater Utility Operations. For this purpose, “industrial
    user” is defined as a manufacturing or industrial operation.


                                                       352
                              CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                                WASTEWATER RATE – SCHEDULE RS-1
                                      (RURAL CUSTOMERS)

Applicable:
   To any customer using wastewater services and being served through a single water meter,
   unless wastewater is separately measured, and within the corporate limits of the City. Service
   will be furnished under this rate schedule subject to the established rules and regulations of the
   City covering this type of service.

Rate:
   RS-1A:5/8-3/4 Inch Water Meter:
      First 2,000 gallons - $28.04 Minimum Bill.
      Over 2,000 gallons - $8.07 per 1,000 gallons or fraction thereof.

    RS-1B: 1-Inch Water Meter:
       First 4,000 gallons - $55.99 Minimum Bill.
       Over 4,000 gallons - $8.07 per 1,000 gallons or fraction thereof.

    RS-1C: 1-1/2 Inch Water Meter:
       First 8,000 gallons - $111.96 Minimum Bill.
       Over 8,000 gallons - $8.07 per 1,000 gallons or fraction thereof.

    RS-1D: 2-Inch Water Meter and greater:
       First 13,000 gallons - $179.16 Minimum Bill.
       Over 13,000 gallons - $8.07 per 1,000 gallons or fraction thereof.

Maximum Bill:
  No additional charge will be applied to a single-family Residential Customers for volumes in
  excess of 8,000 gallons for the RS-1A, RS-1B, RS-1C rate categories.

Single Point of Delivery:
   The above rates are based upon the supply of water to the entire premises through a single
   delivery and metering point. A separate supply of water for the same consumer at other points of
   consumption shall be separately metered and billed.

Optional Methodology for Measurement of Use by Industrial Users:
    An industrial user that uses a 2-inch or larger meter may submit a written request for the use of a methodology to
    determine the amount of wastewater services used other than metering of water or wastewater use. The
    methodology must be designed to charge the user for actual wastewater service use, and is subject to approval by the
    Director of Water/ Wastewater Utility Operations. If approved, the methodology will be used for a period of three
    years, subject to renewal upon submission by the user of a renewal request accompanied by updated methodology
    information, and approval by the Director of Water/ Wastewater Utility Operations. For this purpose, “industrial
    user” is defined as a manufacturing or industrial operation.


                                                       353
                            CITY OF SAN MARCOS
                                    2006-07 ANNUAL BUDGET
                            WASTEWATER RATE – SCHEDULE LL-1
                                 (LIFE LINE CUSTOMERS)

Applicable:

    To any urban/rural customer who qualifies for financial assistance under the rules, regulations or
    guidelines promulgated by Community Action, Incorporated of Hays, Caldwell and Blanco Counties.

Rate:

    LLW-1: 5/8 - 3/4 inch water meter
      Maximum bill - $22.42 (Urban)
      Maximum bill - $28.04 (Rural)

Single Point of Delivery:

    The above rates are based upon the supply of water to the entire premises through a single delivery and
    metering point. A separate supply of water for the same consumer at other points of consumption shall be
    separately metered and billed.




                                                 354
                         CITY OF SAN MARCOS
                                 2006-07 ANNUAL BUDGET
                             SEWER SURCHARGE RATE
                      (SURCHARGE PARTICIPANT LIST CUSTOMERS)


Applicable:

   To any non-domestic customer of the City of San Marcos sanitary sewer system that has higher
   levels of pollutants in their sewage waste than those contained in normal domestic waste and
   placed on the surcharge participant list. A customer on the surcharge participant list will have a
   sewer surcharge added to their monthly sewer bill.

Surcharge Rate:

   COD Concentration (Milligram per Liter)
     351 to 500 - $0.08 per pound.
     501 to 600 - $0.14 per pound.
     Over 600 - $0.28 per pound.

   The rate is not incremental: The COD reading will determine the surcharge rate for a customer’s
   entire discharge.

Surcharge Computation:

   S = V * 8.34 * (COD-350) * Surcharge Rate

Definitions:

   S – Surcharge in dollars that will appear on the monthly billing to customer.
   V – Volume of monthly water usage in millions of gallons based upon the most recent twelve
   months average, or a minimum of six months average for new customers.
   8.34 – Weight in pounds of a gallon of water.
   COD (Chemical Oxygen Demand) – A measure of wastewater quality in milligrams per liter.
   350 – Threshold level of COD for sewer surcharge.




                                              355
                       CITY OF SAN MARCOS
                               2006-07 ANNUAL BUDGET
                               DRAINAGE UTILITY RATES
                               PROPOSED 23.5% INCREASE
                                  (ALL CUSTOMERS)


Commercial Rate:

   $3.96 per equivalent residential unit (ERU) per month. One ERU for commercial land use is
   determined to be 2,250 square feet of impervious cover.

Residential Rate:

   Category                        Lot Size                           Drainage Charge
   Residential - Small lot         0 - 6,000 square feet              $2.47 per month
   Residential - Average lot       6,001 - 12,000 square feet         $3.96 per month
   Residential - Large lot         Greater than 12,000 square feet    $4.53 per month




                                          356
                       CITY OF SAN MARCOS
                                2006-07 ANNUAL BUDGET
                                ELECTRIC UTILITY RATES


Residential Rates
       Customer Charge:            Single or Three Phase Service           $8.50
       Energy Charge:              All Metered kWh, per kWh                $0.0190

Small General Service Rates
       Customer Charge:            Single or Three Phase Service           $10.00
       Energy Charge:              All Metered kWh, per kWh                $0.0190

Medium General Service Rates
     Customer Charge:              Single or Three Phase Service           $45.00
     Demand Charge:                All kW of billing demand, per kW        $3.30
     Energy Charge:                All Metered kWh, per kWh                $0.0093

Large General Service Rates

Primary Voltage: (Greater than 600 volts, but less than 69,000 volts)
       Customer Charge:             Single or Three Phase Service          $700.00
       Demand Charge:               All kW of billing demand, per kW       $2.90
       Energy Charge:               All Metered kWh, per kWh               $0.0074

Secondary Voltage: (Less than 600 Volts)
      Customer Charge:             Single or Three Phase Service           $200.00
      Demand Charge:               All kW of billing demand, per kW        $3.15
      Energy Charge:               All Metered kWh, per kWh                $0.0093



Standard Power Cost Recovery Factor (PCRF) and Choose to Renew PCRF rates apply to
Residential, Small General Service and Medium General Service customers.




                                           357
                         CITY OF SAN MARCOS
                                  2006-07 ANNUAL BUDGET
             A BRIEF DESCRIPTION OF LOCAL ORDINANCE AND STATE LAW

Proceedings to File a Budget:

30 days prior to the time City Council sets the Tax Levy-the City Manager will file with the City
Secretary a proposed Budget (See Sec. 8.02)

At the meeting City Council receives the Budget-Council shall fix a place and time for a public
hearing on the proposed budget and cause it to be published in a local general circulation newspaper.
(See 8.07 and 102.006 of the State Law)

Public Hearings:

At the Public Hearing, all interested persons shall be given an opportunity to be heard. (See Sec 8.07
and 102.006 of the State Law)

At a separate hearing, Council holds a public hearing on the proposed property tax rate.

Adoption of the Proposed Budget:

After 14 days have lapsed since the public hearing on the budget, the City Council may adopt the
budget and tax levying ordinances. (See Sec 8.09)
   (Note: The Budget must be Proposed 15 days prior to the expiration of the current fiscal
   year; otherwise, the existing budget      and tax levying ordinances become the ensuing
   fiscal year’s budget and tax levying ordinances.) (See Sec 8.10)

Filing of the Proposed Budget:

The budget is to be filed with the County Clerk as prescribed by state law following adoption by
City Council. (See Sec 8.11 and 102.011 of the State Law)




                                               358
                             City of San Marcos
                                      2006-07 ANNUAL BUDGET
                        GENERAL GOVERNMENTAL REVENUE BY SOURCE
                                 LAST TEN FISCAL YEARS

             Licenses     Intergov-     Charges                  Miscell-
Fiscal         and        ernmental       for        Fines and    aneous       Tax          Total
Year         Permits       Revenue      Services     Penalties   Revenue     Revenue      Revenue*

1996          330,719      1,601,760    2,872,862      376,119   1,387,980   14,346,760   20,916,200

1997          349,493      1,516,910    3,343,907      411,265    903,552    15,502,641   22,027,768

1998          273,428      1,921,457    3,307,685      478,598   1,058,167   17,571,829   24,611,164

1999          345,529      2,333,394    4,231,980      628,495   1,277,143   18,504,140   27,320,681

2000          838,233      2,315,514    4,476,476      937,464   2,558,728   21,241,143   32,367,558

2001          582,604      3,361,550    4,685,690      943,651   2,904,415   23,494,653   35,972,563

2002          786,000      2,794,428    4,712,696      874,677   1,415,406   24,628,583   35,211,790

2003          566,245      2,774,548    4,999,001    1,043,706    511,766    26,195,549   36,090,815

2004          716,219      2,728,441    3,922,202    1,099,498   1,391,834   28,380,291   38,238,485

2005          854,818      1,989,677    4,413,393    1,331,391   2,109,693   30,109,095   40,808,067




         * Includes revenue of the General, Special Revenue, Debt Service, Capital Projects,
         and Permanent Funds.




                                               359
                      CITY OF SAN MARCOS
                               2006-07 ANNUAL BUDGET
             GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
                         LAST TEN FISCAL YEARS

                                          Culture,
                                          Health,
Fiscal    General                        Recreation                  Capital        Total
Year     Government     Public Safety   and Tourism   Debt Service   Outlay      Expenditures*

1996        7,112,761      5,769,050      3,648,606      2,687,315   8,550,343      27,768,075

1997        6,815,547      6,179,504      4,206,115      2,761,332   4,267,100      24,229,598

1998        7,738,960      6,714,526      5,435,540      2,956,277   2,552,871      25,398,174

1999        8,753,279      8,443,199      5,508,759      3,180,296   3,610,323      29,495,856

2000        9,161,447      9,106,945      6,057,390      4,306,269   3,364,641      31,996,692

2001       10,675,369      9,396,565      6,125,319      4,495,813   9,341,110      40,034,176

2002       10,868,964     11,169,316      6,989,365      4,680,817   7,614,572      41,323,034

2003       11,570,039     11,502,644      6,712,736      5,080,156   5,922,994      40,788,569

2004       10,594,041     11,204,984      6,911,640      4,804,114   5,293,105      38,807,884

2005       12,971,819     12,057,544      6,876,302      4,768,888   8,588,886      45,263,439




     * Includes expenditures of the General, Special Revenue, Debt Service and Capital
     Projects Funds.




                                           360
                          CITY OF SAN MARCOS
                                  2006-07 ANNUAL BUDGET
                                  TAX REVENUE BY SOURCE
                                   LAST TEN FISCAL YEARS

                             General
                             Property
                          Taxes-Includes
                            Delinquent
Fiscal                       Interest                     Franchise                     Mixed Drink
Year        Total Taxes    and Penalties   Sales Taxes      Taxes       Other Taxes *      Tax

1996         14,346,760       3,805,343       7,150,823     2,765,800        554,433         70,361

1997         15,502,641       3,946,610       7,898,566     3,013,673        570,545         73,247

1998         17,571,829       4,307,278       9,209,609     3,232,725        728,113         94,104

1999         18,504,140       4,757,618       9,647,177     3,264,134        731,532        103,679

2000         21,241,143       5,501,978     11,185,219      3,628,118        809,744        116,084

2001         23,494,653       5,929,912     12,117,880      4,379,762        931,917        135,182

2002         24,628,583       7,446,576     12,106,868      4,052,829        874,069        148,241

2003         26,195,540       7,656,097     12,423,794      5,081,011        874,069        160,569

2004         28,380,291       8,393,346     13,392,833      5,519,858        910,742        163,512

2005         30,109,095       8,622,198     14,037,501      6,242,627       1,034,143       172,626




         Note: These revenues include those of the General, Debt Service and Hotel
         Occupancy Tax Funds.

         * Includes Hotel Occupancy Tax




                                              361
                            CITY OF SAN MARCOS
                                     2006-07 ANNUAL BUDGET
                            PROPERTY TAX LEVIES AND COLLECTIONS
                                   LAST TEN FISCAL YEARS

                                            Delinquent                                   Outstanding
                                               Tax                   Total                Delinquent
                                 Percent of Collections           Collections Outstanding Taxes as
Fiscal     Total     Current Tax   Levy        and      Total Tax as Percent Delinquent Percent of
Year     Tax Levy    Collections Collected Penalties Collections   of Levy      Taxes       Levy

1996     3,691,340     3,555,652    96.3%     249,692   3,805,344    103.1%      604,165      16.4%

1997     3,812,327     3,806,197    99.8%     152,015   3,958,212    103.8%      652,231      17.1%

1998     4,247,223     4,098,677    96.5%     113,326   4,212,003     99.2%      653,169      15.4%

1999     4,502,310     4,411,381    98.0%     192,729   4,604,110    102.3%      522,613      11.6%

2000     5,208,616     5,090,136    97.7%     273,057   5,363,193    103.0%      477,993       9.2%

2001     5,620,364     5,490,025    97.7%     211,951   5,701,976    101.5%      475,140       8.5%

2002     7,457,502     7,356,025    98.6%     224,751   7,580,776    101.7%      504,683       6.8%

2003     7,662,979     7,468,315    97.5%     250,393   7,493,354    100.7%      566,737       7.4%

2004     8,198,030     8,068,178    98.4%     325,709   8,393,887    102.4%      368,669       4.5%

2005     8,503,149     8,363,474    98.4%     177,295   8,540,768    100.4%      389,825       4.6%




                                               362
                           CITY OF SAN MARCOS
                                       2006-07 ANNUAL BUDGET
          ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
                            LAST TEN FISCAL YEARS

                                                                                                            Ratio of
                                                                                                             Total
                                                                                                           Assessed
                                                                                                            to Total
              Real Property                 Personal Property                        Total
                                                                                                           Estimated
Tax     Assessed        Estimated        Assessed          Estimated      Assessed        Estimated          Actual
Year     Value         Actual Value       Value           Actual Value     Value         Actual Value        Value

1996    609,084,028     609,084,028      193,381,189       193,381,189    802,465,217        802,465,217    100%

1997    658,210,657     658,210,657      208,225,490       208,225,490    866,436,147        866,436,147    100%

1998    745,036,440     745,036,440      231,336,031       231,336,031    976,372,471        976,372,471    100%

1999    801,324,682     801,324,682      245,708,147       245,708,147   1,047,032,829   1,047,032,829      100%

2000    863,222,522     863,222,522      265,172,931       265,172,931   1,128,395,453   1,128,395,453      100%

2001    932,663,264     932,663,264      286,504,401       286,504,401   1,219,167,665   1,219,167,665      100%

2002   1,106,469,160   1,106,469,160     325,850,518       325,850,518   1,432,319,678   1,432,319,678      100%

2003   1,385,217,775   1,385,217,775     380,715,566       380,715,566   1,765,933,341   1,765,933,341      100%

2004   1,662,822,489   1,662,822,489     390,220,742       390,220,742   2,053,043,231   2,053,043,231      100%

2005   1,662,822,489   1,662,822,489     390,220,742       390,220,742   2,053,043,231   2,053,043,231      100%




                                                    363
                        CITY OF SAN MARCOS
                                 2006-07 ANNUAL BUDGET
         PROPERTY TAX RATES AND TAX LEVIES AND ALL OVERLAPPING
               GOVERNMENTS (PER $100 OF ASSESSED VALUE)
                        LAST TEN FISCAL YEARS
                                    Tax Rates by Jurisdiction
                                                                                        Other
                 City              School District               County             (Special Road)
Fiscal
Year     Ratio          Rate      Ratio       Rate       Ratio            Rate     Ratio      Rate
1996       100%         0.4600      100%       1.4048       100%          0.3941     100%      0.0634
1997       100%         0.4400      100%       1.3880       100%          0.3793     100%      0.0846
1998       100%         0.4350      100%       1.5500       100%          0.3793     100%      0.0846
1999       100%         0.4350      100%       1.5500       100%          0.3793     100%      0.0846
2000       100%         0.4610      100%       1.4438       100%          0.3579     100%      0.0960
2001       100%         0.4610      100%       1.4952       100%          0.3579     100%      0.0960
2002       100%         0.4710      100%       1.4296       100%          0.3702     100%      0.0759
2003       100%         0.4710      100%       1.6000       100%          0.3751     100%      0.0710
2004       100%         0.4710      100%       1.6000       100%          0.3751     100%      0.0710
2005       100%         0.4710      100%       1.7300       100%          0.3920     100%      0.0710

                                   Tax Levies by Jurisdiction
Fiscal                                                                                  Other
Year             City              School District               County             (Special Road)
1996        3,691,340               16,349,635                  10,725,646            1,707,221
1997        3,812,327               16,700,664                  10,897,889            1,733,846
1998        4,247,223               17,093,672                  11,477,172            2,531,638
1999        4,502,310               20,406,940                  12,455,092            2,747,597
2000        5,208,616               20,958,926                  13,227,631            3,527,286
2001        5,620,364               24,184,737                  15,276,683            4,059,085
2002        7,457,502               29,120,416                  19,189,598            3,900,704
2003        7,662,979               36,943,633                  21,498,605            4,034,950
2004        8,198,030               38,000,722                  23,368,858            4,386,297
2005        8,503,149               41,954,674                  26,638,112            4,785,562


                                            364
                           CITY OF SAN MARCOS
                                    2006-07 ANNUAL BUDGET
                                    REVENUE BOND COVERAGE
                                     LAST TEN FISCAL YEARS

                          Maintenance and     Net Revenue
Fiscal                      Operation         Available for
Year     Gross Revenue      Expense *         Debt Service     Principal   Interest    Total       Coverage

                                            Water and Wastewater
1996          9,322,865         5,941,678          3,381,187   1,085,000     796,676   1,881,676     1.80 %

1997         11,150,120         6,182,931          4,967,189   2,199,048   1,703,123   3,902,171     1.27 %

1998         14,218,106         6,859,565          7,358,541   2,338,571   1,657,193   3,995,764     1.84 %

1999         16,519,620         8,033,881          8,485,739   2,464,048   1,507,400   3,971,447     2.14 %

2000         17,655,064        10,406,866          7,248,198   2,528,250   1,453,685   3,981,935     1.82 %

2001         17,252,939        10,186,450          7,065,789   2,583,421   1,400,110   3,983,531     1.77 %

2002         15,983,823        10,679,779          5,304,044   2,638,056   1,344,697   3,982,753     1.33 %

2003         17,595,675        11,339,435          6,256,240   2,690,556   1,322,620   4,013,176     1.56 %

2004         19,502,026        11,076,196          8,425,830   2,808,810   1,364,756   4,173,565     2.02 %

2005         21,415,438        11,677,318          9,738,120   3,507,750   1,578,546   5,086,296     1.91 %

                                                   Electric
1996         22,718,843        20,341,126          2,377,717     731,667     483,124   1,214,791     1.96 %

1997         24,228,097        21,095,328          3,132,769     768,250     507,280   1,275,530     2.46 %

1998         24,361,834        21,158,633          3,203,201     801,842     490,808   1,292,650     2.48 %

1999         24,007,703        21,746,467          2,261,236     819,647     473,255   1,292,422     1.75 %

2000         25,908,308        23,863,928          2,044,380     837,647     454,941   1,292,588     1.58 %

2001         32,476,702        28,660,394          3,816,308     856,875     435,833   1,292,708     2.95 %

2002         26,779,981        25,562,838          1,217,143     906,000     297,298   1,203,298     1.01 %

2003         29,551,713        28,725,521            826,192     906,000     297,298   1,203,298     0.69 %

2004         33,070,143        31,418,256          1,651,887     910,714     292,778   1,203,493     1.37 %

2005         39,412,677        35,068,455          4,344,222     924,231     279,315   1,203,546     3.61 %
 * These expenses do not include depreciation expense.




                                                   365
                          CITY OF SAN MARCOS
                                     2006-07 ANNUAL BUDGET
                            BUILDING PERMITS AT MARKET VALUE
                                  LAST TEN FISCAL YEARS

                                                       Apartments
Fiscal                               Industrial           and            Public         Repairs and
Year     Residences   Commercial     Building          Townhouses       Buildings       Maintenance     Total

1996      6,396,491      2,608,575                0      20,496,438       5,072,384         5,296,367    39,870,255

1997      6,259,344    14,206,068        187,568         31,131,328      11,090,686         9,745,728    72,620,722

1998      8,884,936      8,900,256     1,514,630         12,628,724       8,072,953         7,042,785    47,044,284

1999      6,725,082    20,654,170    351,600,000            6,378,000      800,000         20,056,884   406,214,136

2000      9,644,109    51,927,498     10,260,500         37,519,386       6,631,400         1,820,974   117,803,867

2001     14,200,146    14,526,696                 0      20,627,909       3,332,466         1,967,874    54,655,091

2002     17,713,027      7,972,005                0      95,760,950        348,000          7,723,237   129,517,219

2003     22,985,307      6,490,000                0      19,994,592        150,000          9,124,905    58,744,804

2004     20,829,542      7,742,860                0      24,739,979                 0       6,418,376    59,730,757

2005     14,497,688    32,071,516     13,200,000         25,724,494      11,982,456        11,328,689   108,804,843




                                                      366
                     CITY OF SAN MARCOS
                             2006-07 ANNUAL BUDGET
                              CONSTRUCTION PERMITS
                              LAST TEN FISCAL YEARS

                                                           New Single-Family
                   New Commercial Construction *        Residential Construction *
                   Number of       Construction       Number of         Construction
Fiscal Year         Permits        Dollar Value         Units           Dollar Value

     1996             58               26,085,775        116               6,396,491

     1997             65               14,206,068        119               6,259,344

     1998             49                8,900,256        99                8,284,936

     1999             18               20,654,170        78                6,725,082

     2000             45               45,697,517        75                7,478,159

     2001             21                7,982,752        93               10,707,116

     2002             10                7,972,005        146              17,713,027

     2003             15                6,490,000        177              22,985,307

     2004             17                7,742,860        155              20,829,542

     2005             85               32,071,516        92               14,497,688




 Source:

 *    Construction permits, units and values.
      Planning and Development Services Department
      Building Inspection Division




                                        367
                            CITY OF SAN MARCOS
                                          2006-07 ANNUAL BUDGET
    SUMMARY OF OUTSTANDING WATER/ WASTEWATER UTILITY REVENUE DEBT
                       AS OF SEPTEMBER 30, 2006

                                                Interest     Amount                                      Amount
        Issue                Purpose              Rate       Issued        Issue Date   Maturity Date   Outstanding
1996B Water & Sewer   Wastewater plant          4.33 %        7,500,000    01/22/1997    02/17/2017        6,740,000
Revenue Bonds         construction.
1996C Water & Sewer   Elim Distribution         5.53 %        2,000,000    01/16/1997    02/15/2017           20,000
Revenue Bonds         System purchase.
1997 Water & Sewer    Surface water treatment   5.01 %        2,500,000    07/28/1997    07/28/2017         150,000
Revenue Bonds         plant construction.
1998 Water & Sewer    Surface water treatment   5.03 %       14,800,000    02/15/1998    08/15/2020         290,000
Revenue Bonds         plant construction and
                      Wastewater Collection
                      System improvements.
1999 Water & Sewer    Surface water treatment   4.70 %        6,300,000    02/01/1999    08/15/2019        4,825,000
Revenue Bonds         plant construction,
                      wastewater projects,
                      Water and Sewer
                      system improvements.
2000 Water & Sewer    Surface water treatment   5.82 %        3,935,000    02/01/2000    08/15/2020        3,100,000
Revenue Bonds         plant construction,
                      wastewater projects,
                      Water and Sewer
                      system improvements.
2003 Water & Sewer    Water and Sewer           4.38 %        5,130,000    12/10/2003    8/15/2023         4,850,000
Revenue Bonds         system improvements.
2004 Water & Sewer    Water and Sewer           4.33 %        7,420,000    9/28/2004     8/15/2024         7,140,000
Revenue Bonds         system improvements.

2004A Water & Sewer   Water and Sewer           4.40 %       21,375,000     12/13/04     8/15/2024        19,900,000
Refunding and         refunding and system
Improvement Bonds     improvements.
2005 Water & Sewer    Water and Sewer           4.27 %       17,320,000    06/27/2005    08/15/2020       17,070,000
Refunding Bonds       refunding bonds.
2005A Water & Sewer   Water and Sewer           4.50 %        3,990,000    01/10/2006    08/15/2025        3,915,000
Revenue Bonds         system improvements.
2006 Water & Sewer    Water and Sewer           4.81 %        7,915,000    06/02/2006    08/15/2036        7,915,000
Revenue Bonds         system improvements.
2006A Water & Sewer   Water and Sewer           6.25 %        2,680,000    06/02/2006    08/15/2036        2,680,000
Revenue Bonds         system improvements.
                      Total Water/WW
                      Utility Debt                         $ 102,865,000                                $ 78,595,000




                                                       368
                               CITY OF SAN MARCOS
                                           2006-07 ANNUAL BUDGET
                SUMMARY OF OUTSTANDING ELECTRIC UTILITY REVENUE DEBT
                              AS OF SEPTEMBER 30, 2006

                                            Interest                                                   Amount
       Issue              Purpose             Rate     Amount Issued     Issue Date   Maturity Date   Outstanding

2002 Electric     Refunding 1993            3.89%         $ 13,590,000   09/10/2002    09/30/2017       $ 10,500,000
Refunding         Electric Utility
                  Revenue Refunding
                  Bonds
                  Total Electric Utility
                  Debt                                    $ 13,590,000                                  $ 10,500,000




                                                       369
                                   CITY OF SAN MARCOS
                                                2006-07 ANNUAL BUDGET
                  SUMMARY OF OUTSTANDING DRAINAGE UTILITY REVENUE DEBT
                                AS OF SEPTEMBER 30, 2006

                                                 Interest                                                     Amount
        Issue                 Purpose              Rate     Amount Issued       Issue Date   Maturity Date   Outstanding

2003 Certificates of   Constructing,             4.42%            $ 2,995,000   12/10/2003    8/15/2023         $ 2,935,000
Obligation             reconstructing and
                       improving drainage
                       system.

2004 Certificates of   Constructing,             4.09%             3,705,000    12/13/2004    8/15/2004           3,565,000
Obligation             reconstructing and
                       improving drainage
                       system.
                       Total Drainage Utility
                       Debt                                       $ 6,700,000                                   $ 6,500,000




                                                            370
              CITY OF SAN MARCOS
                  2006-07 ANNUAL BUDGET
    WATER/WASTEWATER UTILITY DEBT SERVICE REQUIREMENTS
                   SEPTEMBER 30, 2006


Fiscal Year     Principal             Interest         Total

    2007          $ 3,195,000          $ 3,633,942      $ 6,828,942
    2008            3,320,000            3,357,354        6,677,354
    2009            3,670,000            3,240,161        6,910,161
    2010            3,800,000            3,106,928        6,906,928
    2011            3,960,000            2,953,944        6,913,944
    2012            4,125,000            2,785,093        6,910,093
    2013            4,305,000            2,606,965        6,911,965
    2014            4,485,000            2,431,283        6,916,283
    2015            4,670,000            2,247,330        6,917,330
    2016            4,885,000            2,037,525        6,922,525
    2017            5,120,000            1,796,811        6,916,811
    2018            5,315,000            1,608,689        6,923,689
    2019            5,570,000            1,355,328        6,925,328
    2020            5,780,000            1,086,493        6,866,493
    2021            2,370,000              806,008        3,176,008
    2022            2,475,000              693,943        3,168,943
    2023            2,605,000              575,643        3,180,643
    2024            2,315,000              450,929        2,765,929
    2025              745,000              338,880        1,083,880
    2026              410,000              302,924          712,924
    2027              430,000              282,310          712,310
    2028              455,000              260,450          715,450
    2029              480,000              237,265           77,265
    2030              505,000              212,653          717,653
    2031              525,000              186,708          711,708
    2032              555,000              159,740          714,740
    2033              585,000              131,000          716,000
    2034              615,000              100,680          715,680
    2035              645,000               68,780          713,780
    2036              680,000               35,300          715,300
Total            $ 78,595,000         $ 39,091,054   $ 117,686,054




                                371
                 CITY OF SAN MARCOS
                        2006-07 ANNUAL BUDGET
              ELECTRIC UTILITY DEBT SERVICE REQUIREMENTS
                          SEPTEMBER 30, 2006


Fiscal Year           Principal            Interest        Total

    2007                   790,000             414,458      1,204,458
    2008                   805,000             390,533      1,195,533
    2009                   840,000             363,758      1,203,758
    2010                   870,000             333,833      1,203,833
    2011                   905,000             300,508      1,205,508
    2012                   940,000             263,608      1,203,608
    2013                   980,000             225,208      1,205,208
    2014                 1,015,000             185,308      1,200,308
    2015                 1,060,000             142,748      1,202,748
    2016                 1,115,000               91,219     1,206,219
    2017                 1,180,000               30,975     1,210,975
Total                 $ 10,500,000          $ 2,742,156   $ 13,242,156




                                     372
                 CITY OF SAN MARCOS
                        2006-07 ANNUAL BUDGET
              DRAINAGE UTILITY DEBT SERVICE REQUIREMENTS
                          SEPTEMBER 30, 2006


Fiscal Year           Principal            Interest       Total

    2007                   175,000             266,997       441,997
    2008                   270,000             261,373       531,373
    2009                   285,000             251,772       536,772
    2010                   295,000             241,598       536,598
    2011                   310,000             231,060       541,060
    2012                   320,000             219,535       539,535
    2013                   330,000             207,380       537,380
    2014                   345,000             194,880       539,880
    2015                   360,000             181,620       541,620
    2016                   380,000             167,430       547,430
    2017                   390,000             151,860       541,860
    2018                   410,000             135,685       545,685
    2019                   430,000             118,222       548,222
    2020                   450,000               99,743      549,743
    2021                   470,000               79,952      549,952
    2022                   495,000               58,873      553,873
    2023                   515,000               36,232      551,232
    2024                   270,000               12,420      282,420
Total                  $ 6,500,000          $ 2,916,632   $ 9,416,632




                                     373
374
                                    CITY OF SAN MARCOS
                                             2006-07 ANNUAL BUDGET
                                                    PERSONNEL ROSTER
                                                   TOTAL OF ALL FUNDS


                                                               Positions                  Full Time Equivalent
                                                     Actual       Actual    Proposed    Actual    Actual    Proposed
                                                    2004-05      2005-06    2006-07    2004-05   2005-06    2006-07
General Fund                                         427.00        434.00     431.00    352.33     361.11     364.07
Hotel Occupancy Tax Fund                                2.00         2.00       2.00      1.48       1.48                     1.48
WIC Program Fund                                      20.00         20.00      22.00     20.00      20.00         22.00
Water/ Wastewater Utility Fund                        59.00         42.00      46.00     58.50      41.50         46.00
Electric Utility Fund                                 50.00         50.00      50.00     50.00        50          50.00
Municipal Airport Fund                                  1.00         1.00       2.00      1.00       1.00                     2.00
                                           Total     559.00        549.00     552.00    483.31     475.09     484.55




                             POPULATION GROWTH VERSUS PERSONNEL GROWTH

              50,000                                                                                        520

              45,000                                                                                        510

              40,000
                                                                                                            500


                                                                                                                  Full-Time Equivalent Positions
              35,000
                                                                                                            490
              30,000
 Pouplation




                                                                                                            480
              25,000
                                                                                                            470
              20,000
                                                                                                            460
              15,000
                                                                                                            450
              10,000

               5,000                                                                                        440

                  0                                                                                         430
                       1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

                                                      Population       Personnel

                                                           375
                              CITY OF SAN MARCOS
                                   2006-07 ANNUAL BUDGET
                                         PERSONNEL ROSTER
                                          DIVISION LISTING


                                                    Positions                 Full Time Equivalent
                                           Actual      Actual   Proposed    Actual    Actual    Proposed
General Fund                              2004-05     2005-06   2006-07    2004-05   2005-06    2006-07
Administration                               6.00        7.00       7.00      6.00       7.00        7.00
City Clerk                                   7.00        6.00       6.00      7.00       6.00        6.00
Legal                                        6.00        6.00       6.00      6.00       6.00        6.00
Human Resources                              9.00        9.00       9.00      9.00       9.00        9.00
Finance                                     15.00       15.00      15.00     14.54      14.54      14.54
Municipal Court                              8.00       10.00      10.00      7.10       9.10        9.10
Planning and Development                     9.50        9.50       9.50      9.50       9.50        9.50
Building Inspections                         6.00        6.00       6.00      6.00       6.00        6.00
Environment and Engineering                 13.00       13.00      12.50     12.48      12.48      11.98
Fire Services                               45.00       48.00      48.00     45.00      48.00      48.00
Police Administration Services              43.00       46.00      39.00     35.19      38.19      37.90
Police Operation Services                   75.00       75.00      75.00     75.00      75.00      75.00
Public Works Administration                  2.00        2.00       3.00      2.00       2.00        2.50
Traffic Control                              5.00        5.00       5.00      5.00       5.00        5.00
Streets                                     17.00       17.00      17.00     17.00      17.00      17.00
Equipment Services                           8.00        8.00       8.00      8.00       8.00        8.00
Code Enforcement                             4.00        4.00       4.00      4.00       4.00        4.00
Environmental Health                         5.00        5.00       5.00      5.00       5.00        5.00
Animal Services                              9.00        9.00      12.00      6.90       6.90        9.65
Library                                     24.00       24.00      24.00     17.19      17.93      17.93
Parks and Recreation                        63.00       62.00      63.00     27.57      26.57      27.57
Activity Center                             18.00       18.00      18.00     11.88      11.88      11.88
Facilities and Grounds                       6.00        6.00       6.00      6.00       6.00        6.00
Park Rangers                                15.00       15.00      15.00      1.53       1.53        1.53
Information Technology                       8.00        8.00       8.00      6.96       8.00        8.00
                                 Total     427.00      434.00     431.00    352.33     361.11     364.07




                                                376
                            CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                                            PERSONNEL ROSTER
                                             DIVISION LISTING


                                                       Positions                 Full Time Equivalent
                                              Actual      Actual   Proposed    Actual    Actual    Proposed
Hotel Occupancy Tax Fund                     2004-05     2005-06   2006-07    2004-05   2005-06    2006-07
Main Street                                     2.00        2.00       2.00      1.48       1.48        1.48
                                    Total       2.00        2.00       2.00      1.48       1.48        1.48




                                                       Positions                 Full Time Equivalent
                                              Actual      Actual   Proposed    Actual    Actual    Proposed
WIC Program Fund                             2004-05     2005-06   2006-07    2004-05   2005-06    2006-07
Administration                                 12.00       12.00      13.00     12.00      12.00      13.00
Nutrition                                       7.00        7.00       7.00      7.00       7.00        7.00
Lactation                                       1.00        1.00       2.00      1.00       1.00        2.00
                                    Total      20.00       20.00      22.00     20.00      20.00      22.00




                                                       Positions                 Full Time Equivalent
                                              Actual      Actual   Proposed    Actual    Actual    Proposed
Water/ Wastewater Utility Fund               2004-05     2005-06   2006-07    2004-05   2005-06    2006-07
Wastewater Collection                          13.00       13.00      17.00     13.00      13.00      17.00
Wastewater Treatment Facility Operations       17.00        0.00       0.00     17.00       0.00        0.00
Water Quality Services                          4.00        4.00       4.00      4.00       4.00        4.00
Water Production/ Wastewater Treatment
Facility Maintenance                            1.00        0.00       0.00      1.00       0.00        0.00
Water Distribution Maintenance                 17.00       17.00      17.00     17.00      17.00      17.00
Water/ Wastewater Administration                7.00        8.00       8.00      7.00       8.00        8.00
                                    Total      59.00       42.00      46.00     58.50      41.50      46.00




                                                   377
                                  CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                                            PERSONNEL ROSTER
                                             DIVISION LISTING


                                                       Positions                 Full Time Equivalent
                                              Actual      Actual   Proposed    Actual    Actual    Proposed
Electric Utility Fund                        2004-05     2005-06   2006-07    2004-05   2005-06    2006-07
Customer Information                            1.00        1.00       1.00      1.00       1.00        1.00
Meter Operations                                8.00        8.00       8.00      8.00       8.00        8.00
Operations                                     10.00       10.00      10.00     10.00      10.00      10.00
Maintenance                                    17.00       17.00      17.00     17.00      17.00      17.00
Utility Billing and Collections                14.00       14.00      14.00     14.00      14.00      14.00
                                    Total      50.00       50.00      50.00     50.00      50.00      50.00




                                                       Positions                 Full Time Equivalent
                                              Actual      Actual   Proposed    Actual    Actual    Proposed
Municipal Airport Fund                       2004-05     2005-06   2006-07    2004-05   2005-06    2006-07
Airport Administration                          1.00        1.00       2.00      1.00       1.00        2.00
                                    Total       1.00        1.00       2.00      1.00       1.00        2.00




                                                   378
                                CITY OF SAN MARCOS
                                            2006-07 ANNUAL BUDGET
                                                PERSONNEL ROSTER
                                                  GENERAL FUND


                                                           Positions                 Full Time Equivalent
                                                  Actual      Actual   Proposed    Actual    Actual   Proposed
Administration                                   2004-05     2005-06   2006-07    2004-05   2005-06   2006-07
City Manager                                       1           1          1         1         1          1
Director of Administrative Services                1           1          1         1         1          1
Communications Manager                             1           1          1         1         1          1
Development Projects Manager                       1           1          1         1         1          1
Assistant to the City Manager                      1           1          1         1         1          1
Secretary to the City Manager                      1           1          1         1         1          1
Administrative Assistant                           0           1          1         0         1          1
                                        Total      6           7          7         6         7          7



                                                           Positions                 Full Time Equivalent
                                                  Actual      Actual   Proposed    Actual    Actual   Proposed
City Clerk                                       2004-05     2005-06   2006-07    2004-05   2005-06   2006-07
City Clerk                                         1           1          1         1         1          1
Records Management Coordinator                     1           1          1         1         1          1
Assistant to the City Clerk                        1           1          1         1         1          1
Department Secretary                               1           0          0         1         0          0
Records Assistant                                  1           1          1         1         1          1
Assistant City Clerk for Vital Statistics          1           1          1         1         1          1
Division Secretary                                 1           1          1         1         1          1
                                        Total      7           6          6         7         6          6




                                                       379
                              CITY OF SAN MARCOS
                                        2006-07 ANNUAL BUDGET
                                              PERSONNEL ROSTER
                                                GENERAL FUND


                                                         Positions                 Full Time Equivalent
                                                Actual      Actual   Proposed    Actual    Actual   Proposed
Legal                                          2004-05     2005-06   2006-07    2004-05   2005-06   2006-07
City Attorney                                    1           1          1         1         1          1
Assistant City Attorney                          1           1          2         1         1          2
Contracts Manager                                1           1          1         1         1          1
Paralegal                                        1           1          0         1         1          0
Department Secretary                             1           1          1         1         1          1
Legal Secretary                                  1           1          1         1         1          1
                                      Total      6           6          6         6         6          6



                                                         Positions                 Full Time Equivalent
                                                Actual      Actual   Proposed    Actual    Actual   Proposed
Human Resources                                2004-05     2005-06   2006-07    2004-05   2005-06   2006-07
Director of Human Resources                      1           1          1         1         1          1
Assistant Director of Human Resources            1           1          1         1         1          1
Benefits Manager                                 1           1          1         1         1          1
Safety/ Loss Prevention Manager                  1           1          1         1         1          1
Human Resources Supervisor                       1           1          1         1         1          1
Department Secretary                             1           1          1         1         1          1
Insurance and Benefits Technician                1           1          1         1         1          1
Recruitment/ Information Technician              1           1          1         1         1          1
Receptionist/ Switchboard Operator               1           1          1         1         1          1
                                      Total      9           9          9         9         9          9




                                                     380
                              CITY OF SAN MARCOS
                                            2006-07 ANNUAL BUDGET
                                              PERSONNEL ROSTER
                                                GENERAL FUND


                                                         Positions                  Full Time Equivalent
                                                Actual       Actual   Proposed    Actual    Actual   Proposed
Finance                                        2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Director of Finance                              1            1          1         1         1          1
Assistant Director of Finance/ Controller        1            1          1         1         1          1
Accounting Manager                               0            1          1         0         1          1
Purchasing Manager                               1            1          1         1         1          1
Accountant II                                    1            1          1         1         1          1
Accountant I                                     1            0          0         1         0          0
Accounting Technician II                         0            1          1         0         1          1
Accounting Technician I                          3            3          3         3         3          3
Mail Services Coordinator                        1            1          1         1         1          1
Buyer                                            0            1          1         0         1          1
Purchasing Technician                            1            0          0         1         0          0
Senior Accounting Clerk/ Generalist              3            2          2         3         2          2
Purchasing Clerk III                             1            1          1         1         1          1
Mail Services Clerk                              1            1          1        0.48      0.54       0.54
                                      Total      15           15        15        14.48     14.54     14.54



                                                         Positions                  Full Time Equivalent
                                                Actual       Actual   Proposed    Actual    Actual   Proposed
Municipal Court                                2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Municipal Court Judge                            1            1          1         1         1          1
Alternate Municipal Court Judge                  1            1          1         .10       .10       .10
Municipal Court Administrator                    0            1          1         0         1          1
Municipal Court Supervisor                       1            1          1         1         1          1
Marshal                                          0            1          1         0         0          0
Deputy Municipal Court Clerk                     1            0          0         1         0          0
Municipal Court Clerk III                        4            5          5         4         5          5
                                      Total      8            10        10        7.10      9.10       9.10


                                                      381
                                 CITY OF SAN MARCOS
                                     2006-07 ANNUAL BUDGET
                                           PERSONNEL ROSTER
                                             GENERAL FUND


                                                      Positions                   Full Time Equivalent
                                             Actual        Actual   Proposed    Actual    Actual   Proposed
Planning and Development                    2004-05       2005-06   2006-07    2004-05   2005-06   2006-07
Director of Planning                          1             1          1         1         1          1
Assistant Director of Planning                1             1          1         1         1          1
Community Development Program Mgr.            1             0          0         1         0          0
Chief Planner                                 1             1          1         1         1          1
GIS Services Manager                         0.50          0.50       0.50      0.50      0.50       0.50
Senior Planner                                1             2          2         1         2          2
Planner                                       1             1          1         1         1          1
Senior Planning Technician                    1             1          1         1         1          1
Department Secretary                          1             1          1         1         1          1
Planning Technician                           0             0          0         0         0          0
CDBG Technician                               1             1          1         1         1          1
                                   Total     9.50          9.50       9.50      9.50      9.50       9.50



                                                      Positions                   Full Time Equivalent
                                             Actual        Actual   Proposed    Actual    Actual   Proposed
Building Inspections                        2004-05       2005-06   2006-07    2004-05   2005-06   2006-07
Chief Building Official                       1             1          1         1         1          1
Combination Inspector                         3             3          3         3         3          3
Building Permit Technician                    2             2          2         2         2          2
                                   Total      6             6          6         6         6          6




                                                    382
                              CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                                               PERSONNEL ROSTER
                                                 GENERAL FUND


                                                          Positions                   Full Time Equivalent
                                                 Actual        Actual   Proposed    Actual    Actual   Proposed
Environment and Engineering                     2004-05       2005-06   2006-07    2004-05   2005-06   2006-07
Director of Engineering                           1             1          1         1         1          1
Assistant Director of Engineering                 1             1          1         1         1          1
Senior Engineer                                   2             2          2         2         2          2
GIS Services Manager                              .50           .50       .50        .50       .50       .50
Engineering Inspection Manager                    0             0          0         0         0          0
Engineering Technician III                        1             1          1         1         1          1
Survey Services Manager                           1             1          1         1         1          1
Engineering Inspection Technician II              1             1          1         1         1          1
Engineering Inspection Technician I               1             1          1         1         1          1
Project Coordinator                               .50           .50        0         .50       .50        0
Engineering Contracts Technician                  0             1          1         0         1          1
Department Secretary                              1             0          0         1         0          0
Engineering Survey Technician                     1             1          1         1         1          1
Engineering Technician/ Communications            1             1          1         1         1          1
Engineering Co-Operative Student                  1             1          1         .48       .48       .48
                                       Total      13            13       12.50      12.48     12.48     11.98




                                                        383
                              CITY OF SAN MARCOS
                                       2006-07 ANNUAL BUDGET
                                             PERSONNEL ROSTER
                                               GENERAL FUND



                                                        Positions                  Full Time Equivalent
                                               Actual       Actual   Proposed    Actual    Actual   Proposed
Fire Services                                 2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Fire Chief                                      1            1          1         1         1          1
Assistant Fire Chief                            1            1          1         1         1          1
Fire Captain                                    3            3          3         3         3          3
Fire Lieutenant                                 9            9          9         9         9          9
Fire Engineer                                   15           15        15         15        15        15
Fire Fighter                                    15           18        18         15        18        18
Fire Marshall                                   0            0          0         0         0          0
Assistant Fire Marshall/ Inspector              0            0          0         0         0          0
Department Secretary                            1            1          1         1         1          1
                                     Total      45           48        48         45        48        48




                                                     384
                            CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                                            PERSONNEL ROSTER
                                              GENERAL FUND


                                                       Positions                  Full Time Equivalent
                                              Actual       Actual   Proposed    Actual    Actual   Proposed
Police Administration Services               2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Police Chief                                   1            1          1         1         1          1
Police Assistant Director                      1            1          1         1         1          1
Police Commander                               1            1          1         1         1          1
Police Sergeant                                2            2          2         2         2          2
Police Corporal                                1            1          1         1         1          1
Police Officer                                 5            6          6         5         6          6
Information Technology Manager                 1            0          0         1         0          0
Records/ Communication Manager                 1            1          1         1         1          1
Parking Coordinator                            1            1          1         1         1          1
Senior Emergency Communications Op.            2            3          3         2         3          3
Records Supervisor                             1            1          1         1         1          1
Department Secretary                           1            1          1         1         1          1
Emergency Communications Operator              17           20        13        11.29     14.29     14.00
Records Specialist                             3            3          3         3         3          3
Parking Technician                             4            4          4         1.9       1.9       1.9
                                    Total      43           46        39        35.19     38.19     37.90




                                                    385
                              CITY OF SAN MARCOS
                                  2006-07 ANNUAL BUDGET
                                        PERSONNEL ROSTER
                                          GENERAL FUND


                                                   Positions                  Full Time Equivalent
                                          Actual       Actual   Proposed    Actual    Actual   Proposed
Police Operation Services                2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Police Assistant Director                  1            1          1         1         1          1
Police Commander                           3            3          3         3         3          3
Police Sergeant                            10           10        10         10        10        10
Police Corporal                            16           16        16         16        16        16
Police Officer                             41           41        41         41        41        41
Victim Services Coordinator                1            1          1         1         1          1
Evidence Technician                        1            1          1         1         1          1
Division Secretary                         2            2          2         2         2          2
                                Total      75           75        75         75        75        75



                                                   Positions                  Full Time Equivalent
                                          Actual       Actual   Proposed    Actual    Actual   Proposed
Public Works Administration              2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Director of Public Works                   1            1          1         1         1          1
Program Coordinator                        1            1          1         1         1          1
Receptionist/ Clerk                        0            0          1         0         0         .50
                                Total      2            2          3         2         2          3



                                                   Positions                  Full Time Equivalent
                                          Actual       Actual   Proposed    Actual    Actual   Proposed
Traffic Control                          2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Traffic Crew Leader                        1            1          1         1         1          1
Equipment Operator II                      2            2          2         2         2          2
Equipment Operator I                       2            2          2         2         2          2
                                Total      5            5          5         5         5          5




                                                386
                              CITY OF SAN MARCOS
                                     2006-07 ANNUAL BUDGET
                                           PERSONNEL ROSTER
                                             GENERAL FUND


                                                      Positions                  Full Time Equivalent
                                             Actual       Actual   Proposed    Actual    Actual   Proposed
Streets                                     2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Street/ Traffic Division Manager              1            1          1         1         1          1
Crew Leader                                   4            4          4         4         4          4
Equipment Operator III                        1            1          1         1         1          1
Equipment Operator II                         7            7          7         7         7          7
Equipment Operator I                          4            4          4         4         4          4
                                   Total      17           17        17         17        17        17


                                                      Positions                  Full Time Equivalent
                                             Actual       Actual   Proposed    Actual    Actual   Proposed
Equipment Services                          2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Equipment Services Manager                    1            1          1         1         1          1
Equipment Services Supervisor                 0            0          1         0         0          1
Inventory Maintenance Mgmt. Technician        1            1          1         1         1          1
Master Mechanic                               3            3          3         3         3          3
Journeyman Mechanic                           1            1          1         1         1          1
Auto Serviceperson                            2            2          1         2         2          1
                                   Total      8            8          8         8         8          8



                                                      Positions                  Full Time Equivalent
                                             Actual       Actual   Proposed    Actual    Actual   Proposed
Code Enforcement                            2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Fire Marshal                                  1            1          1         1         1          1
Assistant Fire Marshal                        1            1          1         1         1          1
Code Enforcement Officer II                   1            1          1         1         1          1
Code Enforcement Officer I                    1            1          1         1         1          1
                                   Total      4            4          4         4         4          4




                                                   387
                             CITY OF SAN MARCOS
                                       2006-07 ANNUAL BUDGET
                                             PERSONNEL ROSTER
                                               GENERAL FUND


                                                        Positions                 Full Time Equivalent
                                               Actual      Actual   Proposed    Actual    Actual   Proposed
Environmental Health                          2004-05     2005-06   2006-07    2004-05   2005-06   2006-07
Director of Env. Health/ Animal Services        1           1          1         1         1          1
Chief Sanitarian                                1           1          1         1         1          1
Sanitarian                                      1           1          1         1         1          1
Code Compliance Officer                         1           1          1         1         1          1
Department Secretary                            1           1          1         1         1          1
                                     Total      5           5          5         5         5          5



                                                        Positions                 Full Time Equivalent
                                               Actual      Actual   Proposed    Actual    Actual   Proposed
Animal Services                               2004-05     2005-06   2006-07    2004-05   2005-06   2006-07
Animal Services Manager                         1           1          1         1         1          1
Animal Control Officer                          3           3          3         3         3          3
Animal Services Clerk                           1           1          1         1         1          1
Animal Shelter Technician                       4           4          7        1.90      1.90       4.65
                                     Total      9           9         12        6.90      6.90       9.65




                                                    388
                              CITY OF SAN MARCOS
                                        2006-07 ANNUAL BUDGET
                                              PERSONNEL ROSTER
                                                GENERAL FUND


                                                         Positions                  Full Time Equivalent
                                                Actual       Actual   Proposed    Actual    Actual   Proposed
Library                                        2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Library Director                                 1            1          1         1         1          1
Librarian III                                    3            3          3         3         3          3
Librarian I                                      3            3          3         3         3          3
Shelving Supervisor                              1            1          1         1         1          1
Library Assistant II                             2            2          2         2         2          2
Library Assistant I                              2            2          2         2         2          2
Library Clerk I – Children Services              1            1          1         .53       .65       .65
Library Clerk I                                  5            5          5        2.63      3.25       3.25
Library Page                                     5            5          5        1.65      1.65       1.65
Library Page – Special Education                 1            1          1         .38       .38       .38
                                      Total      24           24        24        17.19     17.93     17.93




                                                      389
                                 CITY OF SAN MARCOS
                                          2006-07 ANNUAL BUDGET
                                            PERSONNEL ROSTER
                                              GENERAL FUND


                                                       Positions                 Full Time Equivalent
                                              Actual      Actual   Proposed    Actual    Actual   Proposed
Parks and Recreation                         2004-05     2005-06   2006-07    2004-05   2005-06   2006-07
Parks and Recreation Director                  1           1          1         1         1          1
Parks and Recreation Assistant Director        1           1          1         1         1          1
Athletics Program Manager                      1           1          1         1         1          1
Facilities Manager                             1           1          1         1         1          1
Information Technology Manager                 0           0          0         0         0          0
Recreation Programs Coordinator                1           1          1         1         1          1
Watershed Protection Program Manager           1           1          1         1         1          1
Athletic Program Coordinator                   1           1          1         1         1          1
Recreation Programs Coordinator                1           1          1         1         1          1
Facilities/ Events Coordinator                 1           1          1         1         1          1
Department Secretary                           1           1          1         1         1          1
Crew Leader Parks                              1           2          2         1         2          2
Inspection/ Equipment Operator II              0           1          1         0         1          1
Equipment Operator III                         1           0          0         1         0          0
Equipment Operator II                          4           2          2         4         2          2
Equipment Operator I                           2           2          2         2         2          2
Nature Center Program Coordinator              0           0          1         0         0          1




                                                   390
                             CITY OF SAN MARCOS
                                       2006-07 ANNUAL BUDGET
                                            PERSONNEL ROSTER
                                              GENERAL FUND


                                                       Positions                  Full Time Equivalent
                                              Actual       Actual   Proposed    Actual    Actual   Proposed
Parks and Recreation (continued)             2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Summer Program Coordinator                     1            1          1         .17       .17       .17
Summer Challenge Program Coordinator           1            1          1         .17       .17       .17
Summer Assistant Program Coordinator           1            1          1         .17       .17       .17
Summer Playground Site Supervisor              3            3          3         .51       .51       .51
Summer Asst. Challenge Program Coord.          1            1          1         .17       .17       .17
Summer Challenge Program Aid                   2            2          2         .34       .34       .34
Summer Asst. Playground Site Supervisor        3            3          3         .51       .51       .51
Summer Playground Leader                       12           12        12        2.08      2.08       2.08
Intern                                         3            3          3         1         1          1
Assistant Pool Manager                         2            2          2         .69       .69       .69
Water Safety Instructor                        5            5          5        1.23      1.23       1.23
Lifeguard                                      9            9          9        2.21      2.21       2.21
Cashier/ Pool Attendant                        2            2          2         .33       .33       .33
                                    Total      63           62        63        27.57     26.57     27.57




                                                    391
                              CITY OF SAN MARCOS
                                   2006-07 ANNUAL BUDGET
                                         PERSONNEL ROSTER
                                           GENERAL FUND


                                                    Positions                  Full Time Equivalent
                                           Actual       Actual   Proposed    Actual    Actual   Proposed
Activity Center                           2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Aquatics Center Coordinator                 1            1          1         1         1          1
Athletic Program Specialist                 1            1          1         1         1          1
Activity Center Attendant                   6            6          6        4.38      4.38       4.38
Lifeguard/ Swimming Instructor              1            1          1         .75       .75       .75
Facilities/ Maintenance Worker              2            1          1         1         1          1
Lifeguard @ 30 Hours                        2            2          2        1.50      1.50       1.50
Lifeguard @ 15 Hours                        6            6          6        2.25      2.25       2.25
                                 Total      18           18        18        11.88     11.88     11.88



                                                    Positions                  Full Time Equivalent
                                           Actual       Actual   Proposed    Actual    Actual   Proposed
Facilities and Grounds                    2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Crew Leader Grounds                         1            1          1         1         1          1
Equipment Operator II                       4            4          4         4         4          4
Equipment Operator I                        1            1          1         1         1          1
                                 Total      6            6          6         6         6          6




                                                 392
                            CITY OF SAN MARCOS
                                       2006-07 ANNUAL BUDGET
                                            PERSONNEL ROSTER
                                              GENERAL FUND


                                                       Positions                  Full Time Equivalent
                                              Actual       Actual   Proposed    Actual    Actual   Proposed
Park Rangers                                 2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Park Ranger Coordinator                        1            1          1         .33       .33       .33
Park Ranger III                                2            2          2         .19       .19       .19
Park Ranger II                                 8            8          8         .72       .72       .72
Park Ranger I                                  4            4          4         .29       .29       .29
                                    Total      15           15        15        1.53      1.53       1.53



                                                       Positions                  Full Time Equivalent
                                              Actual       Actual   Proposed    Actual    Actual   Proposed
Information Technology                       2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Chief Technology Officer                       0            1          1         0         1          1
Information Technology Administrator           1            1          1         1         1          1
Network/ Technology Administrator              1            1          1         1         1          1
Information Technology Manager                 3            2          2         3         2          2
Network Technician                             1            3          3         1         3          3
Intern                                         2            0          0         .96       0          0
                                    Total      8            8          8        6.96       8          8




                                                    393
                               CITY OF SAN MARCOS
                                   2006-07 ANNUAL BUDGET
                                     PERSONNEL ROSTER
                                 HOTEL OCCUPANCY TAX FUND


                                                    Positions                  Full Time Equivalent
                                           Actual       Actual   Proposed    Actual     Actual     Proposed
Main Street                               2004-05      2005-06   2006-07    2004-05    2005-06     2006-07
Main Street Manager                         1            1          1          1           1           1
Main Street Coordinator                     1            1          1         .48         .48         .48
                                 Total      2            2          2        1.48        1.48        1.48


                                         PERSONNEL ROSTER
                                         WIC PROGRAM FUND
                                                    Positions                  Full Time Equivalent
                                           Actual       Actual   Proposed    Actual     Actual     Proposed
WIC Administration                        2004-05      2005-06   2006-07    2004-05    2005-06     2006-07
WIC Program Manager                         1            1          1          1           1           1
Department Secretary                        1            0          0          1           0           0
Administrative Coordinator                  0            1          1          0           1           1
WIC Certification Specialist                1            1          2          1           1           2
Clerk II                                    10           9          9         10           9           9
                                 Total      12           12        13         12          12          13


                                                    Positions                  Full Time Equivalent
                                           Actual       Actual   Proposed    Actual     Actual     Proposed
WIC Nutrition                             2004-05      2005-06   2006-07    2004-05    2005-06     2006-07
Nutrition Coordinator                       1            1          1          1           1           1
Nutritionist                                6            6          6          6           6           6
                                 Total      7            7          7          7           7           7


                                                    Positions                     Full Time Equivalent
                                           Actual    Actual      Proposed    Actual      Actual     Proposed
WIC Lactation                             2004-05   2005-06      2006-07    2004-05     2005-06     2006-07
Nutritionist                                 1            1         1          1           1           1

Lactation Peer Counselor                     0            0         1          0           0           1

                                 Total       1            1         2          1           1           2



                                                 394
                               CITY OF SAN MARCOS
                                          2006-07 ANNUAL BUDGET
                                       PERSONNEL ROSTER
                                WATER/ WASTEWATER UTILITY FUND


                                                          Positions                  Full Time Equivalent
                                                 Actual       Actual   Proposed    Actual    Actual   Proposed
Wastewater Collection                           2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Utility Crew Leader                               2            2          3         2         2          3
Facilities Maintenance Technician                 2            2          2         2         2          2
Field Maintenance Technician                      2            2          2         2         2          2
I/C Technician                                    1            1          2         1         1          2
Equipment Operator II                             3            3          3         3         3          3
Equipment Operator I                              3            3          5         3         3          5
                                        Total     13           13        17         13        13        17



                                                          Positions                  Full Time Equivalent
Wastewater Treatment                             Actual       Actual   Proposed    Actual    Actual   Proposed
Facility Operations                             2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Wastewater Treatment Plant Manager                1            0          0         1         0          0
Regulatory Compliance Supervisor                  1            0          0         1         0          0
Facilities Maintenance Crew Leader                1            0          0         1         0          0
Treatment Facility Operator                       5            0          0         5         0          0
Regulatory Compliance Assistant                   1            0          0         1         0          0
Assistant Treatment Facility Operator             5            0          0         5         0          0
Field Maintenance Technician                      2            0          0         2         0          0
Secretary/ Receptionist                           1            0          0         1         0          0
                                        Total     17           0          0         17        0          0




                                                       395
                              CITY OF SAN MARCOS
                                      2006-07 ANNUAL BUDGET
                                      PERSONNEL ROSTER
                               WATER/ WASTEWATER UTILITY FUND


                                                      Positions                 Full Time Equivalent
                                             Actual      Actual   Proposed    Actual    Actual   Proposed
Water Quality Services                      2004-05     2005-06   2006-07    2004-05   2005-06   2006-07
Water Quality Services Supervisor             1           1          1         1         1          1
Water Quality Technician                      3           3          3         3         3          3
                                    Total     4           4          4         4         4          4



                                                      Positions                 Full Time Equivalent
Water Production/ Wastewater                 Actual      Actual   Proposed    Actual    Actual   Proposed
Treatment Facility Maintenance              2004-05     2005-06   2006-07    2004-05   2005-06   2006-07
Water Operations Technician                   1           0          0         1         0          0
                                    Total     1           0          0         1         0          0




                                                  396
                             CITY OF SAN MARCOS
                                         2006-07 ANNUAL BUDGET
                                         PERSONNEL ROSTER
                                  WATER/ WASTEWATER UTILITY FUND


                                                       Positions                   Full Time Equivalent
                                              Actual        Actual   Proposed    Actual    Actual   Proposed
Water Distribution Maintenance               2004-05       2005-06   2006-07    2004-05   2005-06   2006-07
W/WW Distribution Collection Manager           1             1          1         1         1          1
Utility Crew Leader                            3             3          3         3         3          3
Equipment Operator II                          3             3          3         3         3          3
Maintenance Support Technician                 2             2          2         2         2          2
Equipment Operator I                           8             8          8         8         8          8
                                     Total     17            17        17         17        17        17



                                                       Positions                   Full Time Equivalent
                                              Actual        Actual   Proposed    Actual    Actual   Proposed
Water/ Wastewater Administration             2004-05       2005-06   2006-07    2004-05   2005-06   2006-07
Director of Water/ WW Utilities                1             1          1         1         1          1
Operations Manager                             1             1          1         1         1          1
Water Conservation Representative              1             1          1         1         1          1
Technology Support Coordinator                 1             1          1         1         1          1
GIS Coordinator                                0             1          1         0         1          1
Project Coordinator                            .50           .50        1         .50       .50        1
Department Secretary                           1             1          1         1         1          1
Water/ Wastewater Utilities Technician         1             1          1         1         1          1
                                     Total     7             8          8        6.50       7.5        8




                                                     397
                               CITY OF SAN MARCOS
                                            2006-07 ANNUAL BUDGET
                                               PERSONNEL ROSTER
                                             ELECTRIC UTILITY FUND


                                                            Positions                  Full Time Equivalent
                                                   Actual       Actual   Proposed    Actual    Actual   Proposed
Customer Information                              2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Senior Energy Efficiency Representative             1            1          1         1         1          1
                                          Total     1            1          1         1         1          1



                                                            Positions                  Full Time Equivalent
                                                   Actual       Actual   Proposed    Actual    Actual   Proposed
Meter Operations                                  2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Meter Shop Supervisor                               1            1          1         1         1          1
Installation Technician                             1            1          1         1         1          1
Meter Reader                                        5            5          5         5         5          5
Clerk III – Dispatcher                              1            1          1         1         1          1
                                          Total     8            8          8         8         8          8



                                                            Positions                  Full Time Equivalent
                                                   Actual       Actual   Proposed    Actual    Actual   Proposed
Operations                                        2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Director of Electric Utility Operations             1            1          1         1         1          1
Senior Engineer                                     1            1          1         1         1          1
Electrical Engineering Technician                   2            2          2         2         2          2
Customer Relations Manager                          1            1          1         1         1          1
CADD System Coordinator                             1            1          1         1         1          1
Electric Meter Technician                           1            1          1         1         1          1
Department Secretary                                1            1          1         1         1          1
Inventory Maintenance Mgmt. Technician              1            1          1         1         1          1
Secretary/ Receptionist                             1            1          1         1         1          1
                                          Total     10           10        10         10        10        10




                                                         398
                                CITY OF SAN MARCOS
                                          2006-07 ANNUAL BUDGET
                                            PERSONNEL ROSTER
                                          ELECTRIC UTILITY FUND


                                                       Positions                  Full Time Equivalent
                                              Actual       Actual   Proposed    Actual    Actual   Proposed
Maintenance                                  2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Electric Distribution Manager                  1            1          1         1         1          1
Crew Leader                                    2            2          2         2         2          2
Lineperson                                     5            5          5         5         5          5
Electric Utility Operator                      2            2          2         2         2          2
Apprentice Lineperson                          3            3          3         3         3          3
Lineperson Helper                              3            3          3         3         3          3
General Maintenance/ Mail Clerk                1            1          1         1         1          1
                                     Total     17           17        17         17        17        17



                                                       Positions                  Full Time Equivalent
                                              Actual       Actual   Proposed    Actual    Actual   Proposed
Utility Billing and Collections              2004-05      2005-06   2006-07    2004-05   2005-06   2006-07
Utility Billing and Collections Manager        0            1          1         0         1          1
Customer Services Supervisor                   1            0          0         1         0          0
Quality Control/ Quality Assurance             1            1          1         1         1          1
Utility Services Supervisor                    2            2          2         2         2          2
Senior Accounting Clerk – Revenue              3            3          3         3         3          3
Clerk III – Customer Service                   2            2          2         2         2          2
Clerk II – Customer Service                    5            5          5         5         5          5
                                     Total     14           14        14         14        14        14




                                                    399
                         CITY OF SAN MARCOS
                             2006-07 ANNUAL BUDGET
                               PERSONNEL ROSTER
                             MUNICIPAL AIRPORT FUND


                                             Positions                 Full Time Equivalent
                                    Actual      Actual   Proposed    Actual    Actual   Proposed
Airport Administration             2004-05     2005-06   2006-07    2004-05   2005-06   2006-07
Airport Director                     1           0          0         1         0          0
Operations Supervisor                0           1          1         0         1          1
Equipment Operator II                0           1          1         0         1          1
                           Total     1           2          2         1         2          2




                                         400
            CITY OF SAN MARCOS
                     2006-07 ANNUAL BUDGET
                        LIST OF ACRONYMS

CA        Current Assets
CAFR      Comprehensive Annual Financial Report
CDBG      Community Development Block Program
CIP       Capital Improvement Program
CL        Current Liabilities
CO’s      Certificates of Obligation Debt
FTE       Full-Time Equivalent
FY        Fiscal Year
GAAP      Generally Accepted Accounting Principles
GASB      Governmental Accounting Standards Board
GBRA      Guadalupe-Blanco River Authority
GFOA      Government Finance Officers Association
GO’s      General Obligation Debt
HCTAD     Hays County Tax Appraisal District
I&S       Interest and Sinking
LCRA      Lower Colorado River Authority
NRMSIRs   Nationally Recognized Municipal Securities Information Repositories
O&M       Operations and Maintenance
P&Z       Planning and Zoning Commission
RB’s      Revenue Bonds
SEC       Securities and Exchange Commission
SMCISD    San Marcos Independent School District
SMPD      San Marcos Police Department
TML       Texas Municipal League
TSUSM     Texas State University – San Marcos
WIC       Women, Infants and Children Program Fund
W/WW      Water/ Wastewater Utility Fund




                                401
                         CITY OF SAN MARCOS
                                  2006-07 ANNUAL BUDGET
                                      GLOSSARY OF TERMS

ACCOUNT - A code made up of numbers                 AUDIT - A comprehensive examination as to
used to classify how specific dollar amounts        the manner in which the government’s
come into the City or how they are being            resources were actually utilized, concluding in
spent.                                              a written report. A financial audit is a review
                                                    of the accounting system and financial
ACCRUAL BASIS OF ACCOUNTING – A                     information to determine how government
method of accounting that recognizes the            funds were spent and whether expenditures
financial effect of transactions, events, and       were in compliance wit