Presenter: Mike Jensen

Commission Agenda Item No. 4
Action
FY 2010 Operating and Capital Budget
TPWD Budget and Investment Policy Resolutions
August 27, 2009

I. Executive Summary: The Commission is considering the approval of the FY 2010 operating and capital budget, as well as the Budget and Investment Policy Resolutions.

II. Discussion: Request for Approval of the Proposed FY 2010 Operating and Capital Budget and the Budget and Investment Policy Resolutions:

The proposed combined budget for fiscal year 2010 is based on legislative appropriations and other authority provided in special provisions and the supplemental appropriations bill.

Through the budget policy, the Commission authorizes the Executive Director to approve and execute, or have executed on his behalf, necessary expenditures, budget adjustments and transfers. Budget adjustments, excluding federal grants and bonds, which exceed $250,000 require prior approval of the Chairman of the Commission and the Chairman of the Finance Committee. The Investment Policy must be reviewed annually by the Commission as required by statute. All Texas Parks and Wildlife Department funds, with a few exceptions, are required to be deposited in the State Treasury. The policy also includes requirements for bank accounts, training and other reporting requirements.

III. Recommendation: Staff recommends the Texas Parks and Wildlife Commission adopt the following motion:

"The Executive Director is authorized to expend funds to operate the Texas Parks and Wildlife Department in accordance with the Proposed FY 2010 Operating and Capital Budget (Exhibits A and B). The Commission also approves the Budget Policy (Exhibit C), and the Investment Policy (Exhibit D)."

Attachments - 4

1. Exhibit A - FY 2010 Agency Budget by Strategy
2. Exhibit B - FY 2010 Operating and Capital Budget by Division/Object of Expense
3. Exhibit C - Budget Policy
4. Exhibit D - Investment Policy

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Commission Agenda Item No. 4
Exhibit A

FY 2010 Agency Budget by Strategy

Division	Salaries & Other	Operating	Grants	Debt Service	Benefits	Capital Budget	Grand Total	FTE
Administrative Resources	6,133,164	1,423,692			1,668,963	30,286	9,256,105	138.0
Coastal Fisheries	9,714,864	6,557,000			2,802,442	139,668	19,213,974	201.0
Communications	4,237,827	3,991,836	237,800		1,053,175	37,000	9,557,638	85.0
Departmentwide		13,153,081		7,497,102		4,745,197	25,395,380	0.0
Executive	2,011,690	443,261			469,396		2,924,347	32.0
Human Resources	1,437,410	284,102			356,610		2,078,122	27.5
Information Technology	5,584,446	1,080,261			1,338,235	6,653,580	14,656,522	93.0
Infrastructure	5,038,295	1,211,563			1,296,038	241,145	7,787,041	137.0
Inland Fisheries	11,498,043	4,650,430			2,857,196	141,168	19,146,837	225.0
Law Enforcement	36,324,507	11,259,748			9,798,825	2,981,000	60,364,080	657.5
Legal	777,665	65,210			164,536		1,007,411	11.5
Local Parks	907,335	562,668	26,852,283		273,315		28,595,601	17.0
State Parks	46,822,513	23,362,356			14,083,453	7,861,289	92,129,611	1,352.0
Wildlife	15,845,681	8,286,106	3,000		4,349,111	420,000	28,903,898	319.5
Capital Construction						123,819,415	123,819,415
Capital Land Acquisition						11,416,191	11,416,191
GLO Transfer			12,596,804				12,596,804
Grand Total	146,333,440	76,331,314	39,689,887	7,497,102	40,511,295	158,485,939	468,848,977	3,296.0

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Commission Agenda Item No. 4
Exhibit B

FY 2010 Operating and Capital Budget by Division/Object of Expense

Strategy	FY10 Amount
A.1.1. Wildlife Conservation	21,548,534
A.1.2. Technical Guidance	2,210,892
A.1.3. Hunting and Wildlife Recreation	2,480,525
A.2.1. Inland Fisheries Management	13,199,536
A.2.2. Inland Hatcheries Operations	4,740,850
A.2.3. Coastal Fisheries Management	14,380,495
A.2.4. Coastal Hatcheries Operations	2,732,402
B.1.1. State Park Operations	70,387,057
B.1.2. Parks Minor Repair Program	4,582,171
B.1.3. Parks Support	4,082,828
B.2.1. Local Park Grants	21,069,027
B.2.2. Boating Access and Other Grants	7,306,341
C.1.1. Enforcement Programs	47,201,472
C.1.2. Warden Training Academy	2,086,077
C.1.3. Law Enforcement Support	2,207,921
C.2.1. Hunter and Boater Education	1,568,948
C.2.2. TP&W Magazine	2,452,735
C.2.3. Communication Products and Services	3,296,576
C.2.4. Outreach and Education	1,452,924
C.3.1. License Issuance	7,395,918
C.3.2. Boat Registration and Titling	1,439,723
D.1.1. Improvements and Major Repairs	140,853,889
D.1.2. Land Acquisition	11,749,346
D.1.3. Infrastructure Administration	4,309,399
D.1.4. Debt Service	7,497,102
E.1.1. Central Administration	10,224,357
E.1.2. Information Resources	12,086,223
E.1.3. Other Support Services	3,794,410
Other Activity-Payroll Related	40,511,299
Grand Total	468,848,977

Method of Finance	FY10 Amount
01 General Revenue	136,293,812
02 GR Ded-Game, Fish, and Water Safety	129,896,129
03 GR Ded -State Parks	41,738,326
04 GR Ded — Other	5,759,764
05 Federal Funds	53,931,221
06 Other Funds	4,900,373
GO Bonds	96,329,352
Grand Total	468,848,977

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Commission Agenda Item No. 4
Exhibit C

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. Allocate super combo license revenue to the related stamp funds according to the documented methodology and authorize the related transfers of revenue to appropriate accounts.
8. Adjust the budget to cover the costs of lawsuits or settlements if deemed to be in the best interest of Texas Parks and Wildlife.
9. 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.
10. Authorize classification changes anytime during a budgetary year, providing that such changes have been thoroughly justified and funds are available.
11. Increase the number of positions when new facilities are placed into operation and/or new programs are implemented, staying within the authorized FTE limit.
12. Adjust the budget to make capital expenditures for construction projects funded in part with proceeds of bonds issued by the Texas Public Finance Authority.
13. Approve and/or execute the reimbursement of construction project costs with the proceeds of tax-exempt bonds issued by the Texas Public Finance Authority, pursuant to federal Internal Revenue Code guidelines.

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 that exceed a threshold of $250,000, excluding federal and bond funds, 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. Donations or gifts exceeding $500 shall be accepted by the Chairman of the Commission or Chairman of the Finance Committee on a monthly basis, with Commission acknowledgement of the acceptance of the donations at each scheduled Commission meeting.

Subject to notification of the TPW Commission of any changes to previously discussed purposes or uses of funds, the Department is authorized to use dedicated accounts and sub-accounts for purposes consistent with those outlined in relevant statutory provisions or administrative rules as set forth in the Texas Administrative Code.

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

APPROVED this the 27th day of August 2009.

In official recognition of the adoption of this resolution in a lawfully called public meeting of the Texas Parks and Wildlife Commission, we hereby affix our signatures this 27th day of August 2009.

______________________________

Peter M. Holt, Chairman

______________________________

T. Dan Friedkin, Vice Chairman

______________________________

Mark E. Bivins, Member

______________________________

Ralph H. Duggins, Member

______________________________

Antonio Falcon, M.D., Member

______________________________

Karen J. Hixon, Member

______________________________

Dan Allen Hughes, Jr., Member

______________________________

Margaret Martin, Member

______________________________

S. Reed Morian, Member

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Commission Agenda Item No. 4
Exhibit D

Investment Policy

All funds administered by Texas Parks and Wildlife Department (TPWD) are required by law to be deposited in the treasury and invested by the Comptroller with the exception of the Operation Game Thief Fund, the Texas Park Development Fund, and the Lifetime License Endowment Account. Although not required, these funds, with the exception of the Operation Game Thief Fund, are also deposited in the treasury and invested by the Comptroller. TPWD will review the benefit of this arrangement and determine the feasibility of other investment opportunities.

1. Objectives of TPWD
   1. Suitability of the investment to TPWD requirements
   2. Preservation and safety of principal
   3. Liquidity
   4. Marketability
   5. Diversification of the portfolio
   6. Yield
2. Policy Guidelines
   1. TPWD funds, unless designated otherwise by Parks and Wildlife Code §11.042, shall be held in the treasury and invested by the Comptroller under Texas Government Code §404.024.
   2. Mitigation funds distributed to TPWD shall be deposited in the treasury and accounted for separately.
   3. Bank accounts authorized by the General Appropriations Act of the 81^st Legislature, Article VI, Riders 3 and 4, and Texas Government Code §403.241-403.252 and §660.025 should be either interest-bearing accounts or accounts with no fees. Any interest earned in excess of bank fees shall be deposited in the General Revenue Fund.
   4. All bank accounts will be insured up to $100,000 under FDIC. If at any time deposits exceed $100,000 in any financial institution, the custodian of the affected account(s) is required to obtain collateralization that meets state requirements to cover the amount exceeding $100,000.
3. Investment Officers
   1. The Investment Officers shall be the Deputy Division Director of Administrative Resources and a designated financial analyst for TPWD, and will be responsible for TPWD investment activity.
   2. The Investment Officers shall attend investment training every other year from a program recommended by the Texas Higher Education Coordinating Board.
   3. The Investment Officers are required to disclose any personal business or familial relationship with a business organization offering to sell investments to TPWD.
   4. The Investment Officers are required to provide a written copy of the investment policy to every business organization engaging in investment activity with TPWD and must obtain written acknowledgement that the policy was received and reviewed and appropriate procedures and controls are in place to preclude unauthorized transactions.
   5. The establishment of any bank accounts under II.C. above must be approved by one of the Investment Officers. Continuance of bank accounts is dependent upon timely and accurate record keeping and reporting.
4. Reporting
   1. Reports shall be prepared within 45 days of the end of each quarter and distributed to members of the Texas Parks and Wildlife Commission, the Executive Director and the Chief Financial Officer. These quarterly reports shall comply with state requirements for content.
   2. A report on changes to the Public Funds Investment Act shall be prepared and distributed to members of the Texas Parks and Wildlife Commission, the Executive Director and the Chief Financial Officer within six months of the end of a regular legislative session.
5. Review
   1. The Texas Parks and Wildlife Commission shall review this policy at least annually.

APPROVED this the 27^th day of August 2009.

In official recognition of the adoption of this resolution in a lawfully called public meeting of the Texas Parks and Wildlife Commission, we hereby affix our signatures this 27th day of August 2009.

______________________________

Peter M. Holt, Chairman

______________________________

T. Dan Friedkin, Vice Chairman

______________________________

Mark E. Bivins, Member

______________________________

Ralph H. Duggins, Member

______________________________

Antonio Falcon, M.D., Member

______________________________

Karen J. Hixon, Member

______________________________

Dan Allen Hughes, Jr., Member

______________________________

Margaret Martin, Member

______________________________

S. Reed Morian, Member