Annual Report
City of Irving, Texas
Fiscal Year 2019-20
POPULAR ANNUAL FINANCIAL REPORT
Fiscal Year Ended September 30, 2020
A Message from the Mayor
I am thrilled to present the city’s first Popular Annual Financial Report (PAFR), which is intended to provide a reader-friendly version of the city’s financial position, activities for the year and organizational accomplishments.
Fiscal Year 2019-20 (FY20) started out strong with a vibrant economy, booming housing market and low unemployment rates. Development and redevelopment continued to invigorate all parts of Irving, and businesses thrived thanks to healthy economic conditions. In early 2020 we began to hear about a deadly coronavirus, and by March the world as we knew it was upturned.
The COVID-19 virus brought everything to a screeching halt, and our community entered an unprecedented shut down in order to contain the spread of the virus and protect one another.
The City of Irving responded swiftly by establishing an emergency operations center, crisis communications plan, customer service strategies, and health and safety protocols. City departments committed to providing essential services to the community while trimming $7.4 million from the FY20 budget to offset anticipated revenue losses primarily attributed to the decrease in sales tax. In order to keep employees and the public safe, the city closed libraries, parks, recreation centers, limited access to City Hall and canceled all special events and public gatherings. To help ease financial burdens, the city managed $13.2 million in CARES Act funding that assisted residents and businesses who experienced economic hardships.
City employees are considered essential workers, and I am proud of the dedication, ingenuity and genuine care for the community the city’s workforce exhibits every day. Departments worked to keep residents engaged with virtual events and online opportunities for activities and programs, as well as socially distanced outdoor adventures like scavenger hunts and reading books along Irving trails. City Council and other public meetings were held virtually to safely accommodate public participation, and city business continued with modified operations.
Despite the circumstances, many infrastructure improvement projects and quality of life enhancements were undertaken in FY20. Street reconstruction, drainage upgrades, water line replacements and numerous parks and trail projects moved forward. Other notable FY20 projects include the completion of the Levy Event Plaza and Irving Signature Bridge, the start of the Irving Interchange reconstruction and Heritage District improvements.
The city’s Economic Development Department and the Irving-Las Colinas Chamber of Commerce continued to assist the business sector. According to the Irving-Las Colinas Chamber of Commerce fourth quarter report in FY20, the Irving Economic Development Partnership resulted in:
million square feet
Although COVID-19 impacted city operations in FY20, the organization was able to respond and grow from the challenges while continuing to make improvements for the community. The FY20 PAFR provides additional data and insights, and I hope you find this new communication tool useful and informative.
Sincerely,
Irving City Council
The City of Irving is governed by a council-manager form of government where the City Council sets city policy and the City Manager is responsible for implementing that policy and managing city operations.
The council consists of a mayor and eight council members who are elected for three-year terms. Elected officials are under a mixed system, which includes three at-large districts (Mayor, place 2 and 8), and six single member districts (places 1, 3, 4, 5, 6 and 7).
Richard H. Stopfer, Mayor
John C. Danish, District 1
Allan E. Meagher, District 2
Mark Zeske, District 3
Phil Riddle, District 4
J. Oscar Ward, District 5
Al Zapanta, District 6
Kyle Taylor, Deputy Mayor Pro Tem, District 7
Wm. David Palmer, Mayor Pro Tem, District 8
EMAIL Mayor and City Council members ccouncil@cityofirving.org
COUNCIL MEETINGS
City Council meetings are held on designated Thursdays at 7 p.m. in the Council Chambers at Irving City Hall, 825 W. Irving Blvd.
Work Sessions are held prior to Council Meetings and begin at various times depending on the agenda. Work Session is open to the public in the first floor Council Conference Room at Irving City Hall, 825 W. Irving Blvd. Please check specific meeting agendas to confirm start times.
GOVERNANCE
Founded in 1903 and Incorporated in 1914
2,208 Full-Time-Equivalent City Employees Budgeted
The City of Irving is Governed by an At-Large Mayor, Six Single-District Council Members and Two At-Large District Council Members
21 Appointed Boards, Commissions and Committees with Almost 200 Irving Residents Serving Various Functions
Visit CityofIrving.org/Agendas for meeting dates, agendas and instructions for speaking at council meetings.
Meetings are streamed live at ICTN.tv and local access cable channels. On-demand meeting archives are available at CityofIrving.org/ICTN-on-Demand or ICTN.tv.
Left to Right: Kyle Taylor, Wm. David Palmer, Richard H. Stopfer, J. Oscar Ward, Mark Zeske, Phil Riddle, Allan E. Meagher, Al Zapanta, John C. Danish
ABOUT IRVING
OUR VISION
Irving will be the model for safe and beautiful neighborhoods, a vibrant economy and exceptional recreational, cultural and educational opportunities.
OUR MISSION
Deliver exceptional services and promote a high quality of life for residents, visitors and businesses.
VALUE STATEMENTS
We have PRIDE in all that we do. We are:
Professional in our interactions with the community, our customers and each other.
Resilient means we never give up in our quest for service excellence.
Innovative by always seeking out better ways to achieve our goals.
Dependable in our actions and desire to see our work through completion.
Ethical through commitment to always do right for our city, residents and co-workers.
Message from City Manager
With more than 240,000 residents and about 10,000 businesses, Irving has grown into one of the most desirable cities to live, work and play in Texas. The community boasts diverse housing, neighborhoods, restaurants, businesses, culture, entertainment and most importantly: people. The City of Irving relies on a Strategic Plan adopted by City Council to provide a clearly articulated framework for decisions that affect the city’s infrastructure, services and quality of life.
Strategic thinking, planning for the future and asset management play a strong role in the City of Irving organizational culture. In 2015, the City Council adopted six strategic plan goals and 25 objectives based on input from City Council, staff, residents, visitors and businesses. The strategic plan guides policy decisions for the city, including future growth and development, municipal operations, spending and capital investments.
GOAL 1 - Financial Sustainability
GOAL 2 - Systematic Infrastructure Investment
GOAL 3 - Vibrant Economy
GOAL 4 - Service Excellence
GOAL 5 - Inclusive and Collaborative Governance
GOAL 6 - Talented and Energized Workforce
Systematic attention to strategic plans has allowed Irving to stay focused on what is most important to the community and drives advancement in the areas that matter most. Citizen satisfaction with code enforcement, appearance of the city, quality of life, and other indicators of success have risen while the city’s business sector continues to thrive.
A strong foundation is key to a successful workplan, and the City of Irving Strategic Plan goals and objectives provide a roadmap for the operations that keep the city maintained, looking great and running smoothly.
Chris Hillman Irving City Manager
For more information about the City of Irving Strategic Plan, including the new online dashboard, visit CityofIrving.org/Strategic-Plan.
City Profile
IRVING: AN EXCEPTIONAL COMMUNITY
Nestled between Dallas and Fort Worth, Irving is the model of an urban area that offers big city amenities with a suburban feel. Appealing to residents, businesses and visitors, the city maintains some of the lowest taxes, fees and water rates in North Texas, and the city has been recognized for its high-quality parks, golf courses and dining options.
Downtown Irving is part of the larger Heritage Crossing District, which includes unique areas that make up the heart of Irving. The tapestry of land uses comprise some of Irving’s most historic and picturesque areas, such as Centennial Park, Irving Heritage District and Main Street Plaza. Several City facilities are located within walking distance of downtown Irving, including the Civic Center Complex (City Hall), the Jack D. Huffman Community Building (Irving Archives and Museum), South Irving Library and the Heritage Senior Center.
Irving’s Las Colinas is home to the largest office park in North Texas. With more than 26 million square feet of office space, 221 buildings and 7,500 tenants, Irving is a corporate powerhouse. More than 10% of Fortune 500 companies are located here, including eight corporate headquarters. Significant nonprofit operations also call Irving home, including Big Brothers Big Sisters, Boy Scouts of America and Mothers Against Drunk Driving.
Centrally located in the region, state, nation and world, Irving serves as an integral global transportation hub. Residents and businesses enjoy easy access to national and international air travel, regional and national highways, and regional public transit.
Settlers came to the area that is now Irving in the 1850s, and communities such as Sowers, Kit, Shady Grove, Union Bower, Finley, Estelle and Bear Creek sprang up in the last half of the 19th century. The new town of Irving, founded in 1903 by J.O. Schulze and Otis Brown, eventually included most of these settlements. Irving was officially incorporated April 14, 1914.
Schulze and Brown, who were employed by the Chicago, Rock Island & Gulf Railway, arrived in 1902 to survey a railroad route between Fort Worth and Dallas. Having decided that this area would be an ideal town site, they bought 80 acres from the Britain family in 1902. The co-founders sold the first town lots at a public auction on Dec. 19, 1903. The post office at nearby Kit was moved to Irving in 1904.
IRVING, THE MAN
The City Council adopted author Washington Irving as the city’s namesake in 1998. Local historians believe that Irving co-founders Otis Brown and J.O. Schulze decided in 1902 to name the city after Netta Barcus Brown’s favorite author. Schulze, a graduate engineer from the University of Iowa and member of the Washington Irving Literary Society, also was partial to the name Irving.
ACCESS AMENITIES LIFESTYLE
Home of DFW International Airport and Adjacent to Dallas Love Field Airport
Trinity Railway Express (TRE) with Two Stations in Irving Connecting Passengers to Destinations Throughout Dallas and Tarrant Counties
Dallas Area Rapid Transit (DART) Commuter Rail Line and Local Buses
The DART Orange Line has 6 Stops in Irving, connecting to both Airports
Four 18-hole Championship Golf Courses
More than 80 Parks, 32 Miles of Trails, Four Libraries and a Newly Remodeled Municipal Golf Course
Smithsonian-Affiliated Arts Center, Four Museums, Three Symphonies and Award-Winning Theater Productions
Home of Toyota Music Factory, an Entertainment and Restaurant Complex featuring the 8,000-person Capacity The Pavilion at Toyota Music Factory and Texas Lottery Plaza
Vibrant Economy
8 FORTUNE 500 HEADQUARTERS
Exxon Mobil McKesson
Kimberly-Clark Fluor
Vistra Energy Pioneer Natural Resources
Celanese Commercial Metals
ECONOMIC INCENTIVE AGREEMENTS
Created 345 New Jobs
Retained 2,957 Current Jobs
$37.2 Million in New Investment
$20 Million in New Annual Taxable Sales Sourced to the City
Combined $329.5 Million in Net New Taxable Value on Real Property and Business Personal Property
Assisted with more than 26 Real Estate Transactions and Economic Incentive Agreements Relating to Microsoft Corp., Michaels Corp., Lafferty Development, Starbucks and others
In Fiscal Year 2019-20, the city approved a development agreement and authorized the conveyance of real property to construct three singlefamily homes on vacant properties, fulfilling a public purpose of providing mortgage-free homes occupied by low- to moderate- income, permanently disabled, combat-wounded veterans.
BY
THE NUMBERS
253,533 Jobs in Irving - Greater than the Population
$582.9 Million in Construction Valuation
14,032 Permits Issued
11,590 High Wage Jobs Added and Retained
84% Office Occupancy Rate
81.4 Million Sq. Ft. Commercial Space Occupied
Awards ACCOMPLISHMENTS
Certificate of Planning Excellence
Texas Chapter of the American Planning Association
Planning and Community Development
Destination Marketing Accreditation Program
Irving Convention and Visitors Bureau
First Police Department to Complete the Requirements for One Mind Campaign
International Association of Chiefs of Police
Irving Police Department
Accreditation with the Texas State Library and Archives Commission
Irving Library Services
Excellence in Code Enforcement Award
Building Officials Association of Texas Code Enforcement Department
Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Annual Financial Report Fiscal Year 2018-19 Government Finance Officers Association
Financial Services
Distinguished Budget Presentation Award for the FY 2019-20 Budget
Financial Services
2020 Municipal Traffic Safety Initiative Award for High-Volume Courts
Municipal Courts Education Center
Irving Municipal Court
2020 Texas Employer Traffic Safety Award
National Safety Council
Irving Municipal Court
2020 Leading Fleet Award
The city received the 2020 Leading Fleet award given to the top 50 fleets in the nation that are performing at a high level in fleet leadership, competitiveness, efficiency and demonstrated effectiveness in overcoming challenges.
Insurance Services Office Inc. ISO-1, Public Protection Classification
Texas Department of Insurance State Fire Marshal’s Officer
Irving Fire Department
Tree City USA - 12th Consecutive Year
Arbor Day Foundation
Parks and Recreation Department
Scenic City Certification
Scenic Texas
Capital Improvement Program
President’s Circle Award
Keep America Beautiful
Keep Irving Beautiful
ROAD TO THE FUTURE
IRVING 360° 2.0
The city launched Irving 360° 2.0, a program to empower civic academy graduates to use data to solve a pressing community issue. The inaugural cohort was challenged to identify ways in which the city can engage residents who have not historically participated in local government.
NEW UTILITY BILLING SYSTEM
The city implemented a new utility billing system with a customer portal allowing users to access their account information and make real-time online payments in one place. This new portal allows customers to view current and past bills on-demand, hourly meter readings, and daily and monthly use history. MyIrvingBill.org
2020 CENSUS
The city promoted the 2020 Census through the Complete Count Committee and coordinated outreach with the Census Bureau and Dallas County Campaigns. Irving’s self-response rate for the 2020 Census was 61.9%.
MUNIS SOFTWARE CONVERSION
The City of Irving entered into a $3 million contract with Tyler Technologies to replace Banner with its Munis ERP (Enterprise Resource Planning) software. This undertaking covered 28 modules and spans approximately three years for full implementation. Phase 1 of the project, focused on the city’s financial services, went live in October 2019. Phase 2 of the project, which focuses on Human Resources functions, launched in December 2020.
FY 2019-20 NET POSITION
$1,006,826,275
Over time, increases or decreases in the city’s net position may be an indication of whether the financial situation of the city is improving or deteriorating.
The City of Irving’s overall net position increased 4% or $37.9 million from the prior fiscal year. The three components of net position are:
NET INVESTMENT IN CAPITAL ASSETS
The most significant portion of net position (88% or $890.2 million) is invested in capital assets. Irving uses these capital assets to provide a variety of public goods and services to its citizens. For that reason, these assets are not available for future spending. Irving’s investment in capital assets is reported net of related debt.
RESTRICTED NET POSITION
This portion of net position (7% or $68.9 million) is restricted, representing funds that are limited to construction activities, payment of debt or specific programs by law.
UNRESTRICTED NET POSITION
The remaining portion of net position (5% or $47.8 million) is unrestricted, representing resources that are available for services.
Financial Highlights
STATEMENT OF NET POSITION
The statement of net position presents all the City of Irving’s assets, deferred outflows of resources, liabilities and deferred inflow resources, with the difference reported as the net position.
Irving’s fiscal year runs Oct. 1 to Sept. 30. The city’s statement of net position and statement of activities for fiscal years ending Sept. 30, 2018 - 2020 are shown in the charts below.
ACTIVITIES/CHANGES IN NET POSITION
Financial Highlights
PROPERTY TAX
The largest share of property tax collected goes to one of three school districts serving Irving residents: Irving Independent School District (ISD), Carrollton-Farmers Branch ISD or Coppell ISD. Other taxing authorities include the city, Dallas County, School Equalizations, Parkland Hospital and the Dallas County Community College.
FY20 TOTAL PROPERTY TAX BILL BREAKDOWN
RATE
*The
OF THE CITY’S GENERAL FUND REVENUE COMES FROM PROPERTY AND SALES
SALES TAX REVENUES
Sales tax revenues are the second largest source of funding for governmental fund revenues. For the prior three years the
TOP 10 SALES TAX CATEGORIES
$20,112,605
$9,264,223
$8,549,553
$8,007,454
$5,717,413
$5,373,816
$4,814,528
$4,593,970
$4,131,686
$3,713,557
$2,496,098
FY20 SALES TAX ALLOCATION
$633.4 Million in Sales Tax Revenues were Collected in Irving for FY20, 76% of which Goes to the State of Texas
The financial data highlighted in the Popular Annual Financial Report (PAFR) is designed to provide a summary view of the city’s financial activities for Fiscal Year 2019-20 (FY20). Information included in this report can be found in greater detail in the FY20 Annual Comprehensive Financial Report (Financial Report) located at CityofIrving.org/ACFR or contact the Finance Department by mail at 825 W. Irving Blvd., Irving, TX 75060 or by phone at (972) 721-2401. The Financial Report was prepared in accordance with Generally Accepted Accounting Principles (GAAP) and was audited by independent certified public accounting firm Weaver and Tidwell, L.L.P.
Financial Highlights
The General Fund is the city’s main operating fund used to account for day-to-day operations except those required to be reported in other funds. The majority of city departments and personnel are budgeted in this fund.
FY20 GENERAL FUND
$233 MILLION BUDGET | $230 MILLION ACTUAL
The majority of General Fund revenues are generated from tax revenues. These primarily comprise property taxes and sales taxes at city rates of $0.5941 per $100 valuation and 1% of taxable sales, respectively. The decrease in tax revenue from FY19 to FY20 resulted primarily from reductions of $2.6 Million in property tax and $2 Million in both sales tax and franchise fees. Expenditures were reduced from $226.5 Million in 2019 to $218.3 Million in 2020 to offset reductions in revenue due to the COVID-19 pandemic. Several city facilities were temporarily closed, and some open positions were held vacant.
GENERAL FUND FINANCIAL TREND SUMMARY
General Fund Overview
HOW IS THE CITY’S GENERAL FUND ALLOCATED?
The city’s total budget for FY20 was $687.9 Million. The General Fund is approximately $237.1 Million or approximately 34% of the total budget. Property tax and sales tax collections represent the largest sources of revenue for the General Fund. When combined with Franchise Fee revenue, tax collections comprise 87% of total General Fund revenues. Below are the budget classifications for the revenues and expenditures.
FY20 GENERAL FUND BUDGET VS. ACTUALS
REVENUE
Financial Highlights
CAPITAL ASSETS
Capital assets represent a significant portion of the city’s financial position and represent a long-term asset used in delivering services and providing for resident needs. These comprise the following items for Governmental and Business-type Activities.
Net of accumulated depreciation
*Business-type Activities are those activities that are self-supported. All operations, maintenance, capital and debt of these actuals are paid by user fees without being supported by the revenue. They include water, wastewater, sanitation and drainage utilities.
DEBT
KEY PROJECTS
Long-term debt represents borrowings used to finance the construction and purchase of capital assets used by the city. These comprise the following items for Governmental and Business-type Activities.
Financial Highlights
TAXABLE VALUES
According to the Dallas Central Appraisal District (DCAD), the Total Estimated Taxable Value of all Property in Irving for the 2019 Tax Year is $28,415,391,516, an Increase of $2,393,848,443
New Commercial and Residential Construction added $744.7 Million in Taxable Value
The city Issued 598 New Residential Permits in FY20 with an Average Value of $357,293 and Average Square Footage of 3,508
New Commercial Construction Increased by 55 Properties with an Average Value of $8.7 Million
The Average Taxable Value for an Irving Home is $209,809 with an Average Market Value of $273,391
*Estimated
Source: Dallas Central Appraisal District (DCAD) - Original Certified Tax Roll
RESERVE REQUIREMENTS
CITY RESERVES
The city has a Minimum Fund Balance Policy to target a minimum General Fund fund balance for operations that is 30% of annual revenues. This financial policy ensures an adequate fund balance in operating funds to maintain liquidity, as well as provide the city with capital in the event of unexpected financial impacts, such as economic downturns and natural disasters. As of Sept. 30, 2020, the city has a reserve rate of 36.1%.
36.1%
SOLID FINANCIAL POSITION
In FY20, the city’s total net position increased by $37.9 Million to $1.0 Billion
Aaa Municipal Bond Rating from Moody’s and S & P Global
As of Sept. 30, 2020, the Fund Balance of the General Fund was $83.2 Million
The City’s Debt Service Reserve Balance was $16.5 Million
COVID-19 RESPONSE
COMMUNITY ASSISTANCE
From March to August 2020, food banks and partners assisted in distributing more than 196,428 meals to Irving residents.
433 Pallets
12,072 Boxes of Food (Per Pallet)
CITY WIDE EVENTS
Virtual Egg Hunt
Scavenger Hunt
Virtual Fourth of July
Laughs by the Sofa
Eerie Irving Drive Thru Experience
Elves on the Trail
Letters to Santa
Clue: Parks and Recreation Edition
CARES ACT FUNDING IN IRVING
The city used and approved allocations of the Coronavirus Aid, Relief and Economic Security (CARES) Act funds to assist Irving residents and businesses that were financially impacted by COVID-19. The city collaborated with various partners to facilitate CARES Act programs, including Dallas County, Catholic Charities Dallas, Workforces Solutions of Greater Dallas and National Development Council.
Managed $13.2 Million in CARES Act Funding
Allocated $6,973,100 for City of Irving Operational and Service Impacts
Allocated $6,250,000 for Irving Economic Incentive Initiatives
$1.5 Million for Emergency Housing Assistance Program
$3.5 Million for Emergency Business Assistance Program
$500,000 for Childcare Center Assistance Program
$750,000 for Childcare Payment Assistance Program
A Look Ahead
PROPERTY TAX RATE
For FY21, Irving City Council voted to keep the tax rate the same for the seventh consecutive year.
Irving Tax Rate is $0.5941/$100 Valuation.
PROPOSED BOND PROJECTS
Irving registered voters will head to the polls on May 1, 2021 for the city’s general municipal election for Districts 4, 6 and 8. The ballot also will include 12 propositions for the issuance of up to $563.4 million in bonds for capital improvement projects. The city does not currently anticipate an increase in the tax rate as a result of the bond election. Additional information is available at CityofIrving.org/Elections
ROAD TO THE FUTURE
FY21 marks the FOURTH YEAR of the five-year program to invest over $100 million to road reconstruction and rehabilitation. The program has allocated $56.7 million to date and $22.1 million is budgeted for FY21. For more information on Road to the Future, including a full list of street projects, visit CityofIrving.org/Road-to-the-Future.
ECONOMIC DEVELOPMENT
FY 21 to date, the city approved several agreements to retain and attract corporate headquarters operations in Irving. These agreements will help create approximately 375 new jobs, retain 1400 jobs and contribute more than $200 million in new investments in Irving.
WILLIAMS SQUARE PLAZA
On Feb. 25, 2021, the Irving City Council awarded a $7.8 million construction contract for renovation and updates to the Williams Square Plaza, located at 5217 N. O’Connor Blvd. Renovations include repairs to the iconic mustang statues, improved lighting features and fountain upgrades, tree and landscape improvements, movable tables and chairs and a multipurpose patio. The Mustangs of Las Colinas, a statue of nine mustangs galloping across a granite stream, will remain the focal point. Construction is slated for completion around the first quarter of 2022.
Stay Informed
The City of Irving aims to keep residents and visitors informed of the latest news, events, programs and public meetings. The city offers numerous outlets for community engagement, including “Irving City Spectrum,” Irving’s monthly resident newsletter, and Irving Community Television Network (ICTN), as well as several social media channels.
SOCIAL MEDIA
More than 83,000 People Follow Irving Across Social Media
and Join
Page Likes in 2020
ANNUAL VISITS 2.1 MILLION PAGE VIEWS 4.8 MILLION
2020 Resident Survey Ranked City Website TOP COMMUNICATION TOOL
IRVING CITY SPECTRUM
Award-winning Monthly Newsletter Delivered to Approximately 103,000 HOUSEHOLDS
Serves as a Main Source for City Information
IRVING CITY SPECTRUM BRIEFS
One-page Insert Delivered to Residents in Monthly Utility Bills. Provided in English and Spanish. CityofIrving.org/Publications
IRVING COMMUNITY TELEVISION NETWORK (ICTN)
Watch shows and live coverage provided by the award-winning ICTN. Watch via cable providers on the following channels.
DIGITAL NEWSLETTERS
City information is distributed weekly through email newsletters. Sign up at CityofIrving.org/Newsletters
NEXTDOOR
Total Engagement FY20
Total Reactions in FY20 INSTAGRAM
Posts in 2020
New Followers
Total Engagement FY20 LINKEDIN
Updates in 2020
Total Followers as of December 2020
TWITTER 1,036 Tweets in 2020 1,203 New Followers 111,153 Total Engagement FY20
YOUTUBE
Posts in 2020
Viewers in 2020
