FY 2019-20 Popular Annual Financial Report

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.

Mayor Richard H. Stopfer

CONTENTS City Council Governance 1 About Irving City Manager Message

2

City Profile, History Demographics

3

Access, Amenities & Lifestyle Vibrant Economy 4 Awards Accomplishments Financial Highlights

5 6-11

COVID-19 Response A Look Ahead

12

Stay Informed Social Media

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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:  81.4 million square feet of commercial space leased  $486 million in capital investments  14,448 high wage jobs added and retained 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,

Richard H. Stopfer Mayor

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

GOVERNANCE

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

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.

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

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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.

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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

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For more information about the City of Irving Strategic Plan, including the new online dashboard, visit CityofIrving.org/Strategic-Plan.

City Profile

HISTORY OF IRVING

IRVING: AN EXCEPTIONAL COMMUNITY

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.

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.

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’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.

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.

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.

DEMOGRAPHICS Population

242,410

Hispanic, Any Race

67.9 Area in

White

18.7%

42.6%

RACE BREAKDOWN (2019 ACS)

Square Miles

(2019 P.E.P.)

Other, NH

2.4%

Asian

22.4%

Black

13.9%

40.7% Bachelor’s

Median Family Income

$72,951 (2019 ACS)

Degree or Higher Median Age

(2019 ACS)

32.0 (2019 ACS)

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Vibrant Economy 8 FORTUNE 500 HEADQUARTERS    

ACCESS  AMENITIES  LIFESTYLE H ome 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

6 Stops

in Irving,

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

FY 20 Capital Investments 4

$486 Million

   

McKesson Fluor Pioneer Natural Resources 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

and Local Buses

The DART Orange Line has connecting to both Airports

Exxon Mobil Kimberly-Clark Vistra Energy Celanese

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

Number of Businesses

10,000

Daytime Population

328,045

Awards

Certificate of Planning Excellence

ACCOMPLISHMENTS

Texas Chapter of the American Planning Association Planning and Community Development

ROAD TO THE FUTURE

 $18 Million Dedicated to Maintenance in FY20

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

 77 Roads Overlaid/Improved  131 Roads Treated with Pavement Restoration  23.4 Centerline Miles Reconstructed  26,773 Tons of Asphalt Pavement Installed

CityofIrving.org/Road-to-the-Future

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

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.

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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.

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.

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(in Thousands) 2020 2019 2018 ASSETS Current and Other Assets $506,174 $486,325 $528,108 Capital Assets $1,520,073 $1,477,981 $1,411,025 Total Assets $2,026,247 $1,964,306 $1,939,133 Deferred Outflows of Resources $63,195 $104,947 $55,968 LIABILITIES Long-Term Liabilities $991,870 $1,052,709 $949,810 Other Liabilities $ 49,883 $42,501 $42,732 Total Liabilities $1,041,753 $1,095,210 $992,542 Deferred Inflows of Resources $40,863 $5,107 $24,847 NET POSITION Net Investment in Capital Assets $890,210 $863,562 $796,162 Restricted $68,864 $69,177 $138,064 Unrestricted $47,752 $36,197 $43,486 Total Net Position $1,006,826 $968,936 $977,712

ACTIVITIES/CHANGES IN NET POSITION (in Thousands) 2020 2019 2018 Revenues $465,446 $482,086 $550,614 Less: Expenses $427,556 $490,862 $394,956 Increase (Decrease) in Net Position $37,890 ($8,776) $155,658 Net Position, Beginning of Year $968,936 $977,712 $825,372 Prior Period Restatement ($3,318)* Net Position after Restatement $968,936 $977,712 $822,054 Net Position, End of Year $1,006,826 $968,936 $977,712 * Restatement due to implementation of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits other than pensions.

Financial Highlights

PROPERTY TAX RATE DISTRIBUTION City Property Tax Rate Remains Constant for the

Sixth Consecutive Year at $0.5941/$100 Valuation

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.

Maintenance and Operation Debt Service

2020

2019

2018

0.4741

0.4741

0.4650

0.1200 0.5941

0.1200 0.5941

0.1291 0.5941

FY20 TOTAL PROPERTY TAX BILL BREAKDOWN Based on Average Single-Family Taxable* Home Value of $195,218 with a 20% Homestead Exemption

School Districts in Irving Average

53%

Dallas County Entities

25%

22%

Tax Rate $1.3014

Tax Rate $0.6466

Tax Rate $0.5941

Annual Total $2,215.30

Annual Total $1,009.82

Annual Total $927.83

City of Irving

*The average Irving homeowner will pay $927.83 per year, or $2.54 per day in city property taxes

79%

OF THE CITY’S GENERAL FUND REVENUE COMES FROM PROPERTY AND SALES TAXES

SALES TAX REVENUES

54% of Total General Fund Revenue Goes Toward

Sales tax revenues are the second largest source of funding for governmental fund revenues. For the prior three years the city collected the following:

Funding Police, Fire and Emergency Medical Services

TOP 10 SALES TAX CATEGORIES

Retail Trade Wholesale Trade All Other Categories Information Manufacturing Accommodation and Food Services Construction Professional, Scientific and Technical Services Utilities Administrative/Support, Waste Management and Remediation Services Real Estate and Rental and Leasing

$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

(in Thousands) 2020 $76,774

2019 $76,735

2018 $68,984

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 State of Texas $479.8 M 6.25%

DART Irving $76.8 M $76.8 M 1% 1%

Total Sales Tax Rate 8.25% 7

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 (in Thousands) REVENUES Taxes Fees, License, Permits and Inspections Fines, Forfeitures and Penalties Charges for Services

Irving City Council Adopted a BALANCED $687.9

MILLION OPERATING BUDGET, which Includes the General Fund and Several Dedicated Funds

34%

THE GENERAL FUND ACCOUNTS FOR 34% OF ALL FUNDS COMBINED

Intergovernmental Investment Income Miscellaneous

(in Thousands) EXPENDITURES General Government

66% DEDICATED FUNDS      8

16% Water and Sewer System Funds 13% Capital Improvement Funds 10% Debt Service Funds 11% Special Revenue Funds 1 6% Other Funds Include Internal Services, Grants, Solid Waste Services, Hotel/Motel Tax and Municipal Drainage Utility

Police Fire Parks and Recreation Municipal Court Library Community Development Public Works

2020 $200,519 11,440

2019 $207,116 10,688

2018 $191,813 10,369

4,000 5,165 5,122 2,969 512 572 7,672 6,857 6,544 1,473 2,183 1,226 2,293 8,103 8,449 $230,366 $240,624 $224,095

2020 2019 2018 $46,543 $46,131 $42,470 69,434 66,291 63,646 49,889 48,524 46,613 15,622 17,778 17,015 2,907 3,002 2,989 7,095 6,971 6,878 6,138 17,888 17,689 20,685 19,990 19,110 $218,313 $226,575 $216,410

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.

1.00%

Public Works

2.81%

Miscellaneous

Community Development

0.64%

Investment Income

General Government

9.47%

21.32%

3.25%

3.33%

Library

FY20 REVENUES

Intergovernmental

1.29%

Charges for Services

1.33%

Municipal Court Parks & Recreation

1.74%

Fines, Forfeitures and Penalties

FY20 EXPENDITURES

7.16%

87.04%

4.97%

Taxes

Fees, License, Permits and Inspections

Fire

31.80%

22.85%

Police

FY20 GENERAL FUND BUDGET VS. ACTUALS Budget

REVENUE

Actuals

Miscellaneous Investment Income Intergovernmental Charges for Services Fines, Forfeitures and Penalties Fees, License, Permits and Inspections Taxes $- $30,000 (in Thousands)

$60,000

$90,000

$120,000

$150,000

$180,000

$210,000

EXPENDITURES

Public Works Community Development Library Municipal Court Parks and Recreation Fire Police General Government $- (in Thousands)

$20,000

$40,000

$60,000

$80,000

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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.

Governmental Activities 2020 2019 $105,285 $104,114 $358,804 $363,037 $53,760 $50,306 $72,231 $42,478 $351,046 $350,767 $2,322 $2,286 $943,448 $912,988

Business-type Activities* 2020 2019 $9,139 $8,871 $66,054 $64,991 $487,702 $476,981 $13,731 $14,151 $576,626 $564,994

Total Primary Governmental 2020 2019 $114,424 $112,985 $358,804 $363,037 $53,760 $50,306 $138,285 $107,469 $838,748 $827,748 $16,053 $16,437 $1,520,074 $1,477,982

(in Thousands) Land Buildings and Improvements Equipment Construction in Progress Infrastructure Other Total Capital Assets 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.

FY20 KEY PROJECTS Major Capital Asset Additions Include (in millions) Brockbank, Rochelle, Vassar Water and Wastewater Improvements $4.8 M Betsy Lane Wastewater Interceptor Improvements

$3.4 M

Hidalgo, Lavida, Sam Hill Water and Wastewater Improvements

$3.2 M

Irving Museum and Heritage Center

$3.1 M

Steeplechase Water and Wastewater

$2.9 M

DEBT 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. (in Thousands) General Obligation Bonds and Tax Notes Revenue Bonds Net Position Lease Payable Water Supply Obligation Totals

Governmental Activities 2020 2019 $258,005 $244,125 $40,443 $2,764 $545,337

$262,305 $255,645 $32,655 $4,432 $555,037

Business-type Activities 2020 2019 $1,015 $182,125 $15,552 $15,457 $214,149

$174,330 $11,723 $15,836 $201,889

Total Primary Governmental 2020 2019 $259,020 $426,250 $55,995 $2,764 $15,457 $759,486

$262,305 $429,975 $44,378 $4,432 $15,836 $756,926

In FY20, the city Refinanced Prior Debt Issuances Resulting in $20.1 Million of Debt Service Interest Savings

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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

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

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

2020 2019 2018 $24,804,506,173 $22,876,353,886 $20,800,268,437 $6,509,169,125 $5,813,995,843 $5,863,804,617

Real Property* Personal Property* Less: Tax-Exempt Property $2,898,283,782 $2,688,806,656 $2,393,829,735 Total Taxable Assessed Value $28,415,391,516 $26,021,543,073 $24,270,243,319 Total Direct Tax Rate 0.5941 0.5941 0.5941 *Estimated Market Value Source: Dallas Central Appraisal District (DCAD) - Original Certified Tax Roll

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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

IrvingEvents.org

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.

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.

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 12

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

SOCIAL MEDIA

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.

CityofIrving.org ANNUAL VISITS 2.1 MILLION PAGE VIEWS 4.8 MILLION

Search

@TheCityofIrving and Join the Conversation!

FACEBOOK

981 Posts in 2020 4,665 New Page Likes in 2020 267,685 Total Engagement FY20

337 Updates in 2020 42,480 Total Members 4,279 Total Reactions in FY20

IRVING CITY SPECTRUM

Award-winning Monthly Newsletter

Delivered to Approximately 103,000 HOUSEHOLDS Serves as a Main Source for City Information

INSTAGRAM

254 Posts in 2020 1,041 New Followers 4,775 Total Engagement FY20

LINKEDIN

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.

Frontier

Social Media

NEXTDOOR

2020 Resident Survey Ranked City Website TOP COMMUNICATION TOOL

AT&T U-verse Time Warner

More than 83,000 People Follow Irving Across

ICTN 1 Channel 99

ICTN 2 Channel 99

ICTN 3 Channel 99

Channel 16

Channel 95

Channel 96

Channel 30

Channel 31

Channel 32

87 Updates in 2020 3,725 Total Followers as of December 2020

TWITTER

1,036 Tweets in 2020 1,203 New Followers 111,153 Total Engagement FY20

YOUTUBE

511 Posts in 2020 764,118 Viewers in 2020

ON-DEMAND AND LIVE STREAMING ICTN.tv DIGITAL NEWSLETTERS City information is distributed weekly through email newsletters. Sign up at

CityofIrving.org/Newsletters 13

City of Irving | 825 W. Irving Blvd., Irving, TX 75060 | (972) 721-2600 | CityofIrving.org