Aug. 25 – 26, 1999 Commission Meeting Agenda
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Presenter: Jayna Burgdorf

Commission Agenda Item No. 4
Action
FY2000 Operating and Capital Budget
August 1999

I. Discussion: The Seventy-sixth Legislature appropriated $219,538,621 in line item appropriations to the Department for fiscal year 2000. Additional appropriation authority is available based on other specific rider authority. Because this agency is responsible for earning over 50% of its revenue to actually use the appropriation authority for operating and capital, the proposed budgets are based on ending balances and FY 2000 revenue projections. Revenue earnings were further analyzed to ensure that dedicated funds are spent for statutorily authorized purposes.

The proposed combined budget for FY 2000 is $256,363,838 of which $177,030,206 is for operating expenses (including $24,357,140 for payroll deductions and employee benefits) and $50,288,711 for capital projects and $29,044,921 for grants. The full-time equivalent (FTE) employee cap for the Department is 2,954.

The base operating portion of this budget is funded at 95% of the FY 99 budget. This allows for reprioritization of funds to meet the changing needs of our operating environment. Areas which meet strategic priorities, commission charges and critical needs are proposed as supplemental requests included in this budget item.

The Seventy-fifth Legislature approved $60 million in revenue bond authority for critical repairs. This capital budget includes the issuance of $20 million of these revenue bonds. The debt service was appropriated by specific rider authority from General Revenue. As directed by the Seventy-sixth Legislature, we will also issue the remaining $16.3 million in General Obligation (GO) bonds for which the Legislature has also appropriated debt service from General Revenue. These two bond issuances are the primary focus of the capital program.

II. Recommendation: The staff recommends the Texas Parks and Wildlife Commission adopt the following motion:

"The Executive Director is authorized to expend funds to operate the Parks and Wildlife Department in accordance with the Proposed FY 2000 Operating Budget (Exhibit A), the Proposed FY 2000 Capital Program (Exhibit B), and the Proposed FY 2000 Grant Budget (Exhibit C)."

"The Commission approves the issuance of up to $20,000,000 in Revenue Bonds pursuant to the provisions of Chapter 13 of the Parks and Wildlife Code. The Executive Director is authorized and directed to proceed with the necessary steps required to issue said bonds including working with the Texas Public Finance Authority and the Bond Review Board, and the Commission approves the resolution (Exhibit D) authorizing this issue and providing for the proper notice to bond bidders."

"The Commission approves the issuance of up to $16,310,000 in General Obligation Bonds pursuant to the provisions of Chapter 21 of the Parks and Wildlife Code. The Executive Director is authorized and directed to proceed with the necessary steps required to issue said bonds including working with the Texas Public Finance Authority and the Bond Review Board, and the Commission approves the resolution (Exhibit E) authorizing this issue and providing for the proper notice to bond bidders."

Attachments - 5

1. Exhibit A – Proposed FY2000 Operating Budget
2. Exhibit B – Proposed FY2000 Capital Program
3. Exhibit C - Proposed FY2000 Grant Budget
4. Exhibit D – Budget Policy
5. Exhibit E – Revenue Bond Resolution
6. Exhibit F – General Obligation Bond Resolution

Commission Agenda Item No. 4
Exhibit A

Operating Budget Document media download(PDF 74 KB)

Commission Agenda Item No. 4
Exhibit B

Recommended FY2000 Capital Program

Critical Infrastructure Repairs
Other Initiatives
Acquisition – $1,282,500
Minor Repair, Maintenance & Contingency

GRAND TOTAL = $50,288,711

Commission Agenda Item No. 4
Exhibit C

Department Grant Budget Overview

Some of these grants will be presented at this and future agendas as specific items for Commission approval. The grants amounts below are presented here as a continuing effort to reflect the total Department budget.

Proposed Budget FY 2000

TOTAL DEPARTMENT GRANT BUDGET = $ 29,044,921

Commission Agenda Item No. 4
Exhibit D

Budget Policy

It is the policy of the Texas Parks and Wildlife Commission to authorize the Executive Director to approve and execute or have executed on his behalf, expenditures, budget adjustments and transfers as follows:

  1. Adjust the budget to bring unexpended balances forward from prior year approved budgets.
  2. Adjust the budget for transfers between budgetary units, major expense categories, or line items.
  3. Adjust the budget to increase funds to allow payment of appraisal fees, witness fees, and investigation expenses on land acquisition and construction projects.
  4. Approve and/or execute contracts and interagency agreements necessary in the daily operation of the Department. Revenues derived from interagency agreements may be budgeted and expended.
  5. Adjust the budget for appropriated revenues, such as sale of equipment, donations, concessions, escrow, refunds, insurance proceeds, and publications revenue, so long as the expenditures are in agreement with the stated program goals and there will be sufficient cash during the fiscal year.
  6. Approve and/or execute construction, repair, or renovation budgets, contracts, interagency agreements, and change orders if necessary to complete a project as approved by the Commission. Adjust the budget from one Department facility major repair or development project to another or from available revenue to cover increased project costs or changes in scope.
  7. Adjust the budget to cover the costs of lawsuits or settlements if deemed to be in the best interest of Texas Parks and Wildlife.
  8. Adjust the budget to place a Department facility into reasonable operation when its condition poses a health or safety hazard or seriously hampers its ability to function.
  9. Authorize classification changes anytime during a budgetary year, providing that such changes have been thoroughly justified and funds are available.
  10. Increase the number of positions when new facilities are placed into operation and/or new programs are implemented, staying within the authorized FTE limit.

The Chairman of the Commission and Chairman of the Finance Committee are authorized to increase, decrease or otherwise adjust the budget during the fiscal year based on revenue and expenditure information and document those actions as noted below. Any budget adjustments which exceed a threshold of $100,000 require notification of the Chairman of the Commission and Chairman of the Finance Committee. Any budget adjustments which exceed a threshold of $150,000 require the prior approval of the Chairman of the Commission and Chairman of the Finance Committee through such means as a conference call or memo.

This policy shall rescind any existing policy on budget adjustments and transfers.

Commission Agenda Item No. 4
Exhibit E

A Resolution by the Texas Parks and Wildlife Commission
Determining that a Sale Be Made of Revenue Bonds,
and Authorizing the Executive Director to Take Appropriate
Steps to Effect Such Sale

WHEREAS, the Texas Public Finance Authority (the "Authority") is empowered to finance the cost of certain facilities and projects for the use and benefit of the Texas Department of Parks and Wildlife (the "Department") pursuant to Article 601d, Vernon’s Texas Civil Statutes, as amended and Article 717k-6, Vernon’s Texas Civil Statutes, as amended, and Chapter 13 of the Parks and Wildlife Code as amended, (collectively, the "Financing Act").

WHEREAS, the Department has requested the Authority to finance the cost of the infrastructure repairs and the projects (the "Projects") described in the Request for Financing as permitted by the Financing Act;

WHEREAS, the Department recognizes that in order to finance the cost of certain of the Projects, the Authority proposes to issue short term obligations, revenue bonds, or both ("Obligations") in an aggregate principle amount not to exceed $20,000,000 with the cost of issuance, and other ancillary costs to be determined at the time of issuance;

WHEREAS, there has been presented to the Commission the form of the following:

1. Request for Financing dated as of August 26, 1999, (the "Request for Financing"), from the Department to the Authority, attached hereto as Exhibit D;

NOW THEREFORE BE IT RESOLVED by the Texas Parks and Wildlife Commission (the "Commission") that;

Section 1. The Commission hereby ratifies and confirms that the Projects are for the purpose of infrastructure repairs and that financing thereof is appropriate at this time. Accordingly, the execution and delivery of the Request for Financing to the Authority pursuant to the Financing Act is hereby ratified, approved and confirmed.

Section 2. The Commission hereby empowers, authorizes and directs the Executive Director of the Department for and on the behalf of the Commission and the Department, to negotiate, date, sign, and otherwise execute (I) a Financing Agreement (the "Agreement") between the Authority and the Department, and to deliver the Agreement; (ii) a Memorandum of Understanding (the "Memorandum of Understanding") between the Authority and the Department and to deliver the Memorandum of Understanding; (iii) such other Documents (the "Other Documents") as are necessary or desirable to effectuate the issuance of the Obligations and the providing of the Projects and to deliver such Other Documents.

Upon execution by both the parties thereto and delivery thereof, the Agreement, the Memorandum of Understanding, and the Other Documents shall be binding upon the Department and the Commission in accordance with the terms and provisions thereof.

Section 3. The Commission recognizes that the Authority will proceed to issue the Obligations to provide the requested financing.

Section 4. The Executive Director of the Department is hereby authorized to cooperate with the Authority, and its consultants, to prepare an Official Statement in connection with the sale of the Obligations and to take any other action necessary to assist in such sales.

Section 5. All actions (not inconsistent with provisions of this Resolution) heretofore taken by the Department and the Executive Director thereof and the other officers of, or consultants to the Department, directed toward the financing of the Projects and the issuance of the Obligations, is hereby ratified, approved, and confirmed.

Section 6. The officers of the Department and the Executive Director thereof shall take all action in conformity with the Financing Act to effectuate the issuance of the Obligations and completing the Projects as provided in the Agreement and to take all action necessary or desirable or in conformity with the Financing Act for carrying out, giving effect to, and consummating the transactions contemplated by the Memorandum of Understanding, the Agreement, the Obligations, and the Request for Financing, including without limitation, the execution and delivery of any closing documents in connection with the closing of the Obligations.

Section 7. If any section, paragraph, clause, or provision of this Resolution shall be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the remaining portions of this Resolution.

Section 8. This Resolution was adopted at a meeting open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Ch. 551, Tx. Gov’t Code.

Commission Agenda Item No. 4
Exhibit F

A Resolution by the Texas Parks and Wildlife Commission
Determining that a Sale Be Made of State of Texas Park
Development Bonds, and Authorizing the Executive Director
to Take Appropriate Steps to Effect Such Sale

WHEREAS, the Texas Public Finance Authority (the "Authority") is empowered to finance the cost of certain facilities and projects for the use and benefit of the Texas Department of Parks and Wildlife (the "Department") pursuant to Article 601d, Vernon's Texas Civil Statutes, as amended and Article 717k-6, Vernon's Texas Civil Statutes, as amended, Article III, Section 49-e, Texas Constitution and Chapter 21 of the Parks and Wildlife Code as amended, (collectively, the "Financing Act").

WHEREAS, the Department has requested the Authority to finance the cost of the facilities and the projects (the "Projects") described in the Request for Financing as permitted by the Financing Act;

WHEREAS, the Department recognizes that in order to finance the cost of certain of the Projects, the Authority proposes to issue short term obligations, general obligation bonds, or both ("Obligations") in an aggregate principle amount not to exceed the remaining authority, approximately $16,310,000, with the cost of issuance, and other ancillary costs to be determined at the time of issuance;

WHEREAS, there has been presented to the Commission the form of the following:

1. Request for Financing dated as of August 26, 1999, (the "Request for Financing"), from the Department to the Authority, attached hereto as Exhibit A;

NOW THEREFORE BE IT RESOLVED by the Texas Parks and Wildlife Commission (the "Commission") that;

Section 1. The Commission hereby ratifies and confirms that the Projects are for the purpose of acquiring, developing, improving and equipping park sites and that financing thereof is appropriate at this time. Accordingly, the execution and delivery of the Request for Financing to the Authority pursuant to the Financing Act is hereby ratified, approved and confirmed.

Section 2. The Commission hereby empowers, authorizes and directs the Executive Director of the Department for and on the behalf of the Commission and the Department, to negotiate, date, sign, and otherwise execute (I) a Financing Agreement (the "Agreement") between the Authority and the Department, and to deliver the Agreement; (ii) a Memorandum of Understanding (the "Memorandum of Understanding") between the Authority and the Department and to deliver the Memorandum of Understanding; (iii) such other Documents (the "Other Documents") as are necessary or desirable to effectuate the issuance of the Obligations and the providing of the Projects and to deliver such Other Documents.

Upon execution by both the parties thereto and delivery thereof, the Agreement, the Memorandum of Understanding, and the Other Documents shall be binding upon the Department and the Commission in accordance with the terms and provisions thereof.

Section 3. The Commission recognizes that the Authority will proceed to issue the Obligations to provide the requested financing.

Section 4. The Executive Director of the Department is hereby authorized to cooperate with the Authority, and its consultants, to prepare an Official Statement in connection with the sale of the Obligations and to take any other action necessary to assist in such sales.

Section 5. All actions (not inconsistent with provisions of this Resolution) heretofore taken by the Department and the Executive Director thereof and the other officers of, or consultants to the Department, directed toward the financing of the Projects and the issuance of the Obligations, is hereby ratified, approved, and confirmed.

Section 6. The officers of the Department and the Executive Director thereof shall take all action in conformity with the Financing Act to effectuate the issuance of the Obligations and completing the Projects as provided in the Agreement and to take all action necessary or desirable or in conformity with the Financing Act for carrying out, giving effect to, and consummating the transactions contemplated by the Memorandum of Understanding, the Agreement, the Obligations, and the Request for Financing, including without limitation, the execution and delivery of any closing documents in connection with the closing of the Obligations.

Section 7. If any section, paragraph, clause, or provision of this Resolution shall be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the remaining portions of this Resolution.

Section 8. This Resolution was adopted at a meeting open to the public, and public notice of the time, place and purpose of said meeting was given, all as required by Ch. 551, Tx. Gov't Code.


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