Irving FY 2022-23 Popular Annual Financial Report (PAFR)

City of Irving, Texas

Fiscal Year Ended September 30, 2023

A Look Back

Implemented ‘Let’s Play Irving – Elevating Aquatics and Recreation’ Plan to rebuild Lee Park and Senter Park pools, re-envision Lively Park Pool area with teen input and build Irving’s first multi-generational mixeduse recreation and aquatics community center.

A LOOK AHEAD

CENTRAL FIRE STATION

Started construction on the $6.9 million Central Fire Station

TOYOTA MUSIC FACTORY

City Council authorized a funding strategy that will not impact the tax rate and has earmarked $92 million for the projects while still fully funding existing capital improvement projects. The $92 million is primarily comprised of voter-approved recreation and senior center bond funds and non-bond capital improvement program allocations.

Continued operation of 20 subtenant leases at the Toyota Music Factory, including 11 full-service restaurants. Using sales tax revenue from the Toyota Music Factory development, Irving City Council approved an estimated $6.3 million in improvements to the plaza, outdoor stage, new signage, architectural graphics, storefront/patio remodels and more. The agreement also included potential reimbursements for up to $25 million for improvements to key tenant lease spaces.

IRVING INTERCHANGE PROJECT

Texas Department of Transportation's (TxDOT) $301 million project to reconstruct the State Highway 183/SH 114/Loop 12/Spur 482 interchange is anticipated to be complete in spring 2024.

MACARTHUR BOULEVARD

(Metker Street to Byron Nelson Way)

The $27.9 million project includes water, wastewater, storm system, sidewalks and roadway pavement. Construction began February 2023 and estimated completion is February 2025.

FY23 GENERAL FUND

$256 Million Budget

$248.2 Million Actual Expenditure

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. References to General Fund budget include funds aggregated with the General Fund as reported in the Annual Comprehensive Financial Report.

The majority of General Fund revenues are generated from tax revenues. These are primarily comprised of property taxes and sales taxes at city rates of $.05891 per $100 valuation and 1% of taxable sales, respectively.

Irving City Council Adopted a Balanced $867.7 Million Operating Budget, which Includes the General Fund and Several Dedicated Funds.

Financial Highlights

GENERAL FUND FINANCIAL TREND SUMMARY

(in Thousands)

Thousands)

(in Thousands)

Department created during FY21 The General Fund accounts for 30% of all funds combined.

30%

Dedicated Funds

14% Water and Sewer System Funds  12% Debt Service Funds

 10% Special Revenue Funds

 34% Other Funds include Internal Services, Grants, Solid Waste Services, Hotel/Motel Tax and Municipal Drainage Utility

Financial Highlights

GENERAL FUND REVENUES AND EXPENDITURES

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 86% of total General Fund revenues.

FY23 Revenues

Expenditures decrease from $382.2 Million in FY22 to $248.2 Million in FY23 primarily due to the one-time contributions made to the pension plans from bonds issued in FY22.

Financial Highlights

SALES TAX REVENUES

Sales tax revenues are the second largest source of funding for both the General Fund and Economic Development Incentive Fund. For the prior three years the city collected in total: (in Thousands)

FY23 SALES TAX ALLOCATION

Out of every dollar spent on taxable goods and services in Irving, 8.25% in sales tax is generated and allocated to the State of Texas, Dallas Area Rapid Transit (DART) and the City of Irving.

$21,697,919 $21,589,620 $8,908,991 $6,619,886 $6,005,833 $5,432,430 $5,290,114 $4,392,548 $3,989,228 $3,239,595

According to the Dallas Central Appraisal District (DCAD), the Total Estimated Taxable Value for the 2023 Tax Year is $35.8 Billion an Increase of $3.8 Billion over the Prior Year.

New Construction Added 1, 192 New Properties with $395 Million in Taxable Value.

Financial Highlights

PROPERTY TAX

The largest share of property tax collected goes to one of three Independent School Districts (ISDs) serving Irving residents: Irving 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.

FY23 TOTAL PROPERTY TAX BILL BREAKDOWN

Based on Average Single-Family Taxable* Home Value of $253,852 with a 20% Homestead Exemption

*Average taxable value based on tax rate/$100 valuation. Homeowners age 65+ or with proof of disability qualify for a $50,000 exemption off their residence’s taxable value.

The City’s Debt Service Reserve Balance was $16.4 Million in FY23

City Reserves

The city has a Fund Balance Policy to target a minimum General 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, 2023, the city has a general fund reserve

$1,364,909,679

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 13% or $157Million from the Prior Fiscal Year

NET INVESTMENT IN CAPITAL ASSETS

The most significant portion of net position ($1.1 Billion) is invested in capital assets. Irving uses these capital assets to provide a variety of public goods and services to its residents. 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 ($120.2 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 ($167.8 Million) is unrestricted, representing resources that are available for services including $42.6 Million allocated for non-bond onetime capital projects.

Financial Highlights

STATEMENT OF ACTIVITIES

(Changes in Net Position)

Irving’s fiscal year runs Oct. 1 to Sept. 30. The city’s statement of activities for fiscal years ending Sept. 30, 2021-2023 are shown in the chart below.

ACTIVITIES/CHANGES IN NET

(in

As of Sept. 30, 2023 THE FUND

GENERAL FUND BALANCE

General Fund balance represents city reserves and amounts nonspendable, committed (assigned or unassigned) for special purposes. These are shown for the fiscal years ending Sept. 30, 2021-2023 in the chart below.

*In FY22, $1.595 M was restricted for the amount held in escrow for pension contributions to be paid from pension obligation bond proceeds.

Financial Highlights Financial GLOSSARY OF TERMS

CAPITAL ASSETS

Capital assets represent a significant portion of the city’s financial position used to deliver services and community needs.

Major Capital Asset Additions

Nursery Road Paving & Utility Improvements

Conflans, Huntingdon & Lincoln Water Improvements

$8.2 M

$5.7 M

Brazos Drive Water & Wastewater Improvements $3.7 M

Story Elevated Storage Tank Rehab

Wingren, Shadow & Rochelle Drainage Improvements

$3.1 M

$1.9 M

DEBT

Long-term debt represents borrowings used to finance the construction and purchase of capital assets used by the city.

In FY23, the city issued $111.1Million in new debt to fund a variety of planned capital projects ranging from building and park renovations to water main replacements and drainage improvements.

Assigned funds: Amounts set aside by the city for specific purposes that are not restricted or committed.

Committed fund balance: Amounts that can only be used for a specific purpose by formal action from City Council.

Dedicated funds: Amounts set aside for a specific purpose.

Deferred outflows of resources: Amounts pending recognition as expenses in future periods.

Deferred inflows of resources: Amounts pending recognition as revenues in future periods.

Franchise fees: Charges to utility companies for the use of public rights-of-way.

General fund: The main operating fund for the city.

Intergovernmental: Revenue recognized from grant awards and reimbursement of operating costs by other funds.

Net investment in capital assets: Capital assets, net of accumulated depreciation, reduced by outstanding capital related debt.

Net position: The net position of the city is equal to city assets and deferred outflows reduced by liabilities and deferred inflows.

Nonspendable funds: Fund balance representing assets not in a spendable form (i.e. inventory).

Reserves: Amounts of fund balance that are not available for appropriation or are set aside for a specific future use.

Restricted fund balance: Amounts that can only be used for a specific purpose set by external entities.

Restricted net position: Restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unassigned fund balance: Remaining amount that has not been assigned to other funds or been restricted, committed or assigned to specific purposes.

Unrestricted net position: Remaining net position not included in net investment in capital assets or restricted net position.

Accomplishments AWARDS

Irving Convention Center & Visitors Bureau received three Bronze Adrian Awards – Hospitality Sales & Marketing Association International

20 23 City of Irving YEAR IN REVIEW

Each year, the city releases the Year in Review document to provide residents with an overview of the achievements, highlights and accomplishments from that year.

Allocated $1,084,706 in grant funds for public improvements at King Square, West Park, East Branch Library, Georgia Farrow Recreation Center and Lively Pointe Youth Center

Received $45 million in grant dollars with zero percent financing from the Texas Water Development Board, which is expected to save the city $26.3 million in interest

Homeless Outreach Team responded to 561 calls, made 900 contacts and connected 110 individuals to resources/services, including 10 who were permanently housed

Implemented the Short-term Rental Registration program with over 160 short-term rentals registered in year one

Funded all employee positions at the 70th percentile of the market, and approved moving to the 80th percentile in 2024, as part of the city’s recruitment and retention strategy

Irving Convention Center & Visitors Bureau is a Platinum Choice Award winner – Smart Meetings

Irving Archives and Museum and the Irving Black Arts Council received the Award for Excellence for “A Local Green Book” exhibition – American Association for State and Local History

Irving Archives and Museum was awarded the John L. Nau III Award for Excellence in Museums for its exhibit “The Irving Story” – Texas Historical Commission

Public Safety Wellness Unit won the Destination Zero Award in the Comprehensive Wellness Program category – National Law Enforcement Officers Memorial Fund

Received certification as a Mother Friendly Workplace –Texas Department of State Health Services

Fleet received the Clean Cities Silver Award for six consecutive years – Dallas-Fort Worth Clean Cities Coalition

Received Certificate of Achievement for Excellence in Financial Reporting for 39 consecutive years – Government Finance Officers Association

Received the Distinguished Budget Presentation Award for 36 consecutive years – Government Finance Officers Association

Heritage Park received President’s Award for Best Public Improvement – Texas Downtown

Irving Community Television Network won 9 awards – National Association of Telecommunications Officers and Advisors

Irving Community Television Network won 17 awards – Texas Association of Telecommunications Officers and Advisors

Communications won 3 Awards of Excellence – Texas Association of Municipal Information Officers

Keep Irving Beautiful won the President’s Circle Award and First Place National Affiliate Innovation Award – Keep America Beautiful

Water Utilities received the Gold Award for Exceptional Utility Performance – Association of Metropolitan Water Agencies

Stay Informed