Commission Agenda Item No. 2
Presenter: Reggie Pegues

Action
Financial Overview
August 26, 2021

I.      Executive Summary: The staff will present a summary of the Fiscal Year (FY) 2022 Operating and Capital Budget, including the Capital Conservation Account, Texas Parks and Wildlife Code section 11.032(c) deposit options regarding boat-related fees, and the Texas Parks and Wildlife Commission’s (Commission) Budget and Investment policies.

II.     Discussion:  The staff will discuss the following with the Commission:

• Staff will present and discuss the FY 2022 Operating and Capital Budget, including the Capital and Conservation Account (5004);
• Staff will summarize the Commission’s Budget Policy and Investment Policy;
• Staff will present the list of State Parks that will serve as the basis for calculating the Legislative Budget Board performance measure “Number of State Parks in Operation” over the 2022-2023 biennium; and
• Staff will discuss Texas Parks and Wildlife Code section 11.032(c) which permissively allows the Texas Parks and Wildlife Department (TPWD) to retain all boat fees in Fund 9, or to transfer up to 15 percent of those fees into Fund 64 on a monthly basis.

III.      Recommendation: The staff recommends the Commission adopt the following motions:

Motion one: “The Executive Director is authorized to expend funds to operate the Texas Parks and Wildlife Department in accordance with the proposed FY 2022 Operating and Capital Budget (Exhibits A and B), the Budget Policy (Exhibit C), and the Investment Policy (Exhibit D).”

Motion two: “The Commission approves the State Parks Listing (Exhibit E) and authorizes TPWD to adjust the listing as necessary for accurate reporting.”

Motion three: “The Commission approves retaining 100 percent of all boat registration, titling, and related fees collected during FY 2022 in Fund 9.”

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Commission Agenda Item No. 2
Exhibit A

Fiscal Year 2022 Agency Budget by Strategy

Strategy	FY 2022
A.1.1. Wildlife Conservation	34,722,970
A.1.2. Technical Guidance	10,119,376
A.1.3. Hunting and Wildlife Recreation	2,324,070
A.2.1. Inland Fisheries Management	15,507,194
A.2.2. Inland Hatcheries Operations	7,156,050
A.2.3. Coastal Fisheries Management	13,278,825
A.2.4. Coastal Hatcheries Operations	3,677,897
B.1.1. State Park Operations	91,098,778
B.1.2. Parks Minor Repair Program	7,083,306
B.1.3. Parks Support	6,434,203
B.2.1. Local Park Grants	24,362,821
B.2.2. Boating Access and Other Grants	12,034,269
C.1.1. Enforcement Programs	62,274,925
C.1.2. Texas Game Warden Training Center	2,671,329
C.1.3. Law Enforcement Support	3,529,859
C.2.1. Outreach and Education	2,995,242
C.2.2. Provide Communication Products	5,369,465
C.3.1. License Issuance	7,655,436
C.3.2. Boat Registration and Titling	1,662,618
D.1.1. Improvements and Major Repairs	86,354,332
D.1.2. Land Acquisition	5,776,804
D.1.3. Infrastructure Administration	7,471,800
E.1.1. Central Administration	9,810,495
E.1.2. Information Resources	14,288,862
E.1.3. Other Support Services	4,769,904
Fringe Benefits	75,913,945
Total	518,344,775

Method of Finance	FY 2022
General Revenue	231,596,585
GR Ded-Game, Fish and Water Safety	144,503,928
GR Ded-State Parks	57,665,860
GR Ded-Other	180,651
Federal Funds	75,888,686
Other Funds	8,509,065
Total	518,344,775

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Commission Agenda Item No. 2
Exhibit B

Fiscal Year 2022 Operating and Capital Budget by Division/Object of Expense

Division	Salaries and Other Personnel Costs	Operating	Grants	Debt Service	Capital Budget	Fringe Benefits	Total Budget	FTEs
Coastal Fisheries	10,882,320	6,413,087			57,532	4,003,935	21,356,874	190.0
Communications	4,505,475	3,102,203	315,000		15,500	2,201,634	10,139,812	68.0
Departmentwide		26,765,508					26,765,508
Executive	3,159,076	303,591				1,001,061	4,463,728	36.0
Financial Resources	5,212,456	999,815				1,915,641	8,127,912	90.1
Human Resources	2,228,845	315,184				805,633	3,349,662	35.0
Information Technology	5,577,405	1,069,372				2,017,993	8,664,770	80.0
Infrastructure	7,420,993	499,227	1,760,910		25,000	2,653,081	12,359,211	90.0
Inland Fisheries	12,340,899	6,664,592	699,473		374,288	5,066,482	25,145,734	200.0
Law Enforcement	53,339,488	11,463,223			1,228,960	20,646,512	86,678,183	653.0
Legal	1,001,545	82,608				341,650	1,425,803	10.0
Local Parks	1,526,273	1,136,638	28,025,278			530,631	31,218,820	21.0
State Parks	61,693,145	29,328,939			11,794,445	27,425,007	130,241,536	1,354.8
Support Resources	2,019,105	3,198,857				750,818	5,968,780	31.0
Wildlife	20,782,214	14,067,881	3,124,349		250,000	6,553,867	44,778,311	302.0
Capital Construction					86,354,332		86,354,332
Capital Information Technology					7,805,799		7,805,799
Capital Land Acquisition					3,500,000		3,500,000
Total	191,689,239	105,410,725	33,925,010	0	111,405,856	75,913,945	518,344,775	3,160.9

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Commission Agenda Item No. 2
Exhibit C

BUDGET POLICY (CP-009)

It is the policy of the Texas Parks and Wildlife Commission (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 Texas Parks and Wildlife Department (TPWD).  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 TPWD 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 TPWD. 
9. Adjust the budget to place a TPWD 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. 
14. The Chair or Vice-Chair of the Commission, or a Commissioner designee of the Chair or Vice-Chair, is 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 Chair, Vice-Chair, or Commissioner designee through such means as a conference call or memo. Donations or gifts exceeding $500 shall be accepted by the Chair, Vice-Chair, or Commissioner designee on a monthly basis, with Commission acknowledgement of the acceptance of the donations at each scheduled Commission meeting.

Subject to notification of the Commission of any changes to previously discussed purposes or uses of funds, TPWD 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 26th day of August 2021.

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 26th day of August, 2021.

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Commission Agenda Item No. 2
Exhibit D

Investment Policy (CP-016)

All funds paid to Texas Parks and Wildlife Department (TPWD) pursuant to the Texas Parks and Wildlife Code (Parks and Wildlife Code) or allocated to TPWD per §151.801 of the Texas Tax Code are required by §11.042 of the Parks and Wildlife Code to be deposited in the treasury with two exceptions, the Operation Game Thief Fund and the Texas Park Development Fund.  The Operation Game Thief Fund is held outside the treasury and, as authorized by Parks and Wildlife Code §12.201, is invested according to rules adopted by the Operation Game Thief Committee.  Therefore, the investment of the Operation Game Thief Fund is not governed by this Investment Policy. Although not required, the Texas Park Development Fund is and will continue to be deposited in the treasury and invested by the Comptroller.

Parks and Wildlife Code §11.065 authorizes the commission to adopt rules for investment of the Lifetime License Endowment Account.  The Lifetime License Endowment Account is and will continue to be deposited in the treasury and invested by the Comptroller.

In addition, TPWD has established an account at The Texas Treasury Safekeeping Trust Company, an organization created by the Texas Legislature to invest and safeguard funds for the state and various subdivisions whose sole shareholder and director is the Texas Comptroller of Public Accounts.  TPWD’s account at The Texas Treasury Safekeeping Trust Company is for the purpose of accepting donations of marketable securities which shall be held only until accepted by the Commission.  Donations of marketable securities shall be sold promptly upon acceptance by the Commission and the proceeds shall be deposited into the treasury.

I.    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 

II.  Policy Guidelines

1. TPWD funds shall be held in the state treasury and invested by the Comptroller under Texas Government Code §404.024.
2. Mitigation funds distributed to TPWD shall be deposited in the state treasury and accounted for separately.
3. Bank accounts authorized by the General Appropriations Act of the 87th Legislature, Article VI, Rider 3, and Texas Government Code §403.241-403.252 and §660.025 (petty cash accounts and imprest accounts for the purchase of evidence) 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. The establishment of any petty cash or imprest bank accounts must be approved by the TPWD’s Chief Financial Officer (Signature and Approval Policy OP-03-03).  Continuance of bank accounts is dependent upon timely and accurate record keeping and reporting. 

III. Texas Public Funds Investment Act:  Investment Officer Designation and Reporting

1. Pursuant to Texas Government Code §2256.004, the Texas Public Funds Investment Act (PFIA) does not apply to TPWD funds which are deposited into the state treasury and which are managed by the Texas Comptroller of Public Accounts in accordance with Texas Government Code §404.024.  Therefore, TPWD does not presently have any funds on deposit outside the treasury subject to the PFIA.
2. In the event that TPWD funds are deposited outside of the state treasury and become subject to the PFIA, the TPWD Executive Director, or designee, shall identify and designate an Investment Officer.
   1. The designated TPWD Investment Officer, or Officers, shall perform the functions and responsibilities required by the PFIA.
   2. The Investment Officer(s) shall attend investment training at least once each state fiscal biennium from a program recommended by the Texas Higher Education Coordinating Board.
   3. The Investment Officer(s) are required to disclose any personal business or familial relationship with a business organization offering to sell investments to TPWD.
   4. The Investment Officer(s) 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 Investment Officer(s) will ensure that all TPWD funds outside the state treasury held in bank accounts are insured by Federal Deposit Insurance Corporation (FDIC) up to the FDIC deposit insurance limit, currently $250,000.  If at any time deposits exceed the FDIC deposit insurance limit 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 the deposit insurance limit.
   6. Reports of investment transactions for all funds managed under the PFIA 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 as required by § 2256.023.  These quarterly reports shall comply with state requirements for content.
   7. To the extent that the Texas Legislature modifies any provision of the PFIA that is applicable to TPWD’s funds, a report summarizing those legislative changes to the PFIA 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.

 
IV.   Review — The Texas Parks and Wildlife Commission shall review this policy at least annually.   

                  APPROVED this the 26th day of August 2021.

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 26th day of August 2021.

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Commission Agenda Item No. 2
Exhibit E

Fiscal Year 2022-2023 Biennium State Park List and Change Procedures

This list will serve as the starting point for calculating the performance measure “Number of State Parks in Operation” for the 2022-2023 biennium.

The Texas Parks and Wildlife Department is authorized to adjust this list as needed throughout the 2022-2023  biennium to reflect deletion, transfer, or addition of sites to the park inventory.

This list will be updated and presented to the Texas Parks and Wildlife Commission (Commission) for approval before the start of each biennium (every two years).  Any adjustments made to this list during the 2022-2023 biennium will be presented to the Commission as part of the next State Park listing (approval of the list for the 2024-2025 biennium).

Number	Name	County	Facility Type
1	Abilene	Taylor	State Park
2	Albert and Bessie Kronkosky	Bandera/Kendall	State Natural Area
3	Atlanta	Cass	State Park
4	Balmorhea	Reeves	State Park
5	Bastrop	Bastrop	State Park
6	Big Bend Ranch	Brewster/Presidio	State Park
7	Big Spring	Howard	State Park
8	Blanco	Blanco	State Park
9	Bonham	Fannin	State Park
10	Brazos Bend	Fort Bend	State Park
11	Buescher	Bastrop	State Park
12	Caddo Lake	Harrison	State Park
13	Caprock Canyons and Trailway	Briscoe/Floyd/Hall	State Park
14	Cedar Hill	Dallas	State Park
15	Chinati Mountains	Presidio	State Natural Area
16	Choke Canyon	Live Oak/McMullen	State Park
17	Cleburne	Johnson	State Park
18	Colorado Bend	Lampasas/San Saba	State Park
19	Cooper Lake	Delta/Hopkins	State Park
20	Copper Breaks	Hardeman	State Park
21	Daingerfield	Morris	State Park
22	Davis Hill	Liberty	State Park
23	Davis Mountains	Jeff Davis	State Park
24	Devils River	Val Verde	State Natural Area
25	Devil’s Sinkhole	Edwards	State Natural Area
26	Dinosaur Valley	Somervell	State Park
27	Eisenhower	Grayson	State Park
28	Enchanted Rock	Gillespie	State Natural Area
29	Fairfield Lake	Freestone	State Park
30	Falcon	Starr	State Park
31	Fort Boggy	Leon	State Park
32	Fort Leaton	Presidio	State Historic Site
33	Fort Parker	Limestone	State Park
34	Fort Richardson	Jack	State Park and Historic Site
35	Franklin Mountains	El Paso	State Park
36	Galveston Island	Galveston	State Park
37	Garner	Uvalde	State Park
38	Goliad	Goliad	State Park and Historic Site
39	Goose Island	Aransas	State Park
40	Government Canyon	Bexar	State Natural Area
41	Guadalupe River/Honey Creek	Comal/Kendall	State Park and State Natural Area
42	Hill Country	Bandera/Medina	State Natural Area
43	Hueco Tanks	El Paso	State Park and Historic Site
44	Huntsville	Walker	State Park
45	Inks Lake	Burnet	State Park
46	Kickapoo Cavern	Edwards/Kinney	State Park
47	Lake Arrowhead	Clay	State Park
48	Lake Bob Sandlin	Titus	State Park
49	Lake Brownwood	Brown	State Park
50	Lake Casa Blanca	Webb	State Park
51	Lake Colorado City	Mitchell	State Park
52	Lake Corpus Christi	San Patricio	State Park
53	Lake Livingston	Polk	State Park
54	Lake Mineral Wells and Trailway	Parker/Palo Pinto	State Park
55	Lake Somerville	Burleson/Lee	State Park
56	Lake Tawakoni	Hunt	State Park
57	Lake Whitney	Hill	State Park
58	Lockhart	Caldwell	State Park
59	Longhorn Caverns*	Burnet	State Park
60	Lost Maples	Bandera/Real	State Natural Area
61	Lyndon B. Johnson	Gillespie	State Park and Historic Site
62	Martin Creek Lake	Rusk	State Park
63	Martin Dies Jr.	Jasper/Tyler	State Park
64	McKinney Falls	Travis	State Park
65	Meridian	Bosque	State Park
66	Mission Tejas	Houston	State Park
67	Monahans Sandhills	Ward/Winkler	State Park
68	Mother Neff	Coryell	State Park
69	Mustang Island	Nueces	State Park
70	Old Tunnel	Kendall	State Park
71	Palmetto	Gonzales	State Park
72	Palo Duro Canyon	Armstrong/Randall	State Park
73	Palo Pinto Mountains	Palo Pinto/Stephens	State Park
74	Pedernales Falls	Blanco	State Park
75	Possum Kingdom	Palo Pinto	State Park
76	Powderhorn	Calhoun County	State Park
77	Purtis Creek	Henderson/Van Zandt	State Park
78	Ray Roberts Lake	Cooke/Denton/Grayson	State Park
79	San Angelo	Tom Green	State Park
80	Sea Rim	Jefferson	State Park
81	Seminole Canyon	Val Verde	State Park and Historic Site
82	Sheldon Lake	Harris	State Park
83	South Llano River	Kimble	State Park
84	Stephen F. Austin	Austin	State Park
85	Tyler	Smith	State Park
86	Village Creek	Hardin	State Park
87	World Birding Center (WBC)/Bentsen-Rio Grande Valley	Hidalgo	State Park
88	WBC/Estero Llano Grande	Hidalgo	State Park
89	WBC/Resaca de la Palma	Cameron	State Park

*     Not operated by TPWD