Hollywood Park Budget

Several people have told me that they were really happy to see a CPA volunteer to be one of our communities elected leaders. Well when it comes to creating a plan for what you spend money on everyone thinks that people with my credentials will have all the answers. Some times we don't like reality and wish we could make problems go away with magic. But there is no magic and sometimes bad news should be made known as fast as possible. It is life following the advice of the Godfather. If you remember the movie when Tom Hagen is talking to the movie producer and he refuses to give in and grant Don Corelone what he wanted, Tom Hagen rises in the middle of dinner and excuses himself as he explains that the Godfather insists on bad news being delivered as fast as possible. The citizens of Hollywood Park demand no less.

Our Hollywood Park city government does very few functions when compared to the big city of San Antonio. Our main functions are Fire, Police, Waste and regulatory functions for a total of $3 million. Our Tax revenues from property taxes are about $1.5 million. Other revenues are about $1.1 million. All these numbers give me a head ache too, so I have to bring it down to a level I can understand.

Our expenses for Fire and Police are about $1.8 million, we have property taxes for $1.5 million and expense reimbursement from Hill Country Village of $.3 million. Thus property taxes pay for our costs of Fire and Police protection. This seems simple and straight forward.

Our expenses for Waste Management is $.5 million and for Administration, Court, Buildings, Public Works, Recreation and the remaining Contract Service is $.7 million. The resources of sales & franchise taxes and permits, court, and other miscellaneous revenues to pay for this is about $.8 million. Which results in a deficit of ($.4 million).

Now this is a result from our problem with the waste management contract increase from several years ago. Last year we took $.2 million from our reserves to balance the budget. We have been using reserves for several years. We need to repay the reserve to bring it back from the current position of 90 days of cash to 180 days of cash reserves. So add the deficit and the reserve needs and we are talking about a large number.

Moral of this story is that you can not ignore problems and rob your savings to correct the problem. Eventually you have to pay the piper.

Sparks “Thoughts on the City”
By Tim McCallum, City Councilman
August 2009
Hello Neighbors:
Fire Departments – Why?

As we are suffering the record breaking heat of summer, grass fires are reported frequently on the evening news. Leaders make decisions to ban fireworks from our July 4th celebration to protect us from fire.

Have you met anyone who has experienced loss from fire? The horrible thought of what it may be like to be burned out from your home. Think what it may be like to lose all your pictures, all your clothing, your collections of memories, your jewelry, and the worst of all – the loss of life.

The measurement of a community’s ability to protect their citizens is reflected in the Public Protection Classification (PPC). The Texas Department of Insurance web site http://www.tdi.state.tx.us/fire/fmppcfaq.html#250130 defines the PPC as “the countrywide classification system used by the Insurance Services Office (ISO) to reflect a community's local fire protection for property insurance rating purposes. The public fire protection of a city, town or area is graded using ISO's Fire Suppression Rating Schedule to develop the community's classification. The PPC system in some form is used in all 50 states. Texas was the last to adopt it. Commissioner Elton Bomer replaced the old key rating system with ISO's Fire Suppression Rating Schedule and related Public Protection Classification system, effective February 1, 1998. ISO classifies communities from 1 (the best) to 10 (the worst) based on how well they score on the ISO Fire Suppression Rating Schedule, which grades such features as water distribution, fire department equipment and manpower, and fire alarm facilities. ISO field representatives use the schedule when surveying a community's fire protection capability. The score that is determined from applying the Fire Suppression Rating Schedule is translated into a public protection classification. A perfect score in Texas is 106.5. It consists of 50 points for fire department capabilities, 40 points for water supply and distribution, 10 points for receiving and handling fire alarms, and 6.5 points for a "Texas Addendum" that grades fire safety education, building code enforcement, fire prevention code enforcement and fire investigation capabilities. Although homeowners' insurance rates are driven mainly by your area's claim experience, your community's PPC rating also is important. For rate regulated companies, the premium on a brick veneer house is 39% higher in an area rated 10 (worst) than in one rated 1 (best). (This range is even greater for frame houses.) A brick veneer home's rate difference from one class to the next ranges from 1.5% to 9%.”

As we evaluate our budget, this rating has an impact on the question of balancing the cost vs. the benefit. Bottom line is doing nothing is not an option. Protection is a fundamental function of government.

I look forward to my part in keeping our community a great place to live and raise a family. I will be sharing these thoughts with you in the Sparks and on my web site at www.tim-hp.com. The sun always shines in Hollywood Park.