2027 Proposed Budget Book by Town of Little Elm

TOWN OF LITTLE ELM, TEXAS

2027 - 2031 PROPOSED ANNUAL BUDGET AND FINANCIAL PLAN

INTEGRITY | CUSTOMER SERVICE | EFFICIENCY | INNOVATION

Town of Little Elm Fiscal Year 2026-2027 Budget Cover Page This budget will raise less revenue from property taxes than last year's budget by an amount of $1,483,214, which is a 2.97 percent decrease from last year’s budget. The property tax revenue to be raised from new property added to the tax roll this year is $1,308,239. CITY COUNCIL RECORDED VOTE Member Mayor Cornelious Mayor Pro Tem Singh Council Member Evans Council Member Johnson Deputy Mayor Pro Tem Eaken Council Member Amaya Mayor Pro Tem Hambrick

TAX RATE Property Tax Rate No-New-Revenue Rate No-New-Revenue M&O Rate Voter Approval Tax Rate Debt Rate

Budget Adoption

ADOPTED FISCAL YEAR 2025-2026 $ 0.549901 $ 0.547331 $ 0.426464 $ 0.549901 $ 0.108510

Tax Rate Adoption

PROPOSED FISCAL YEAR 2026-2027 $ 0.549899 $ 0.573938 $ 0.454899 $ 0.549899 $ 0.079080

ADOPTED FISCAL YEAR 2026-2027

The total amount of municipal debt obligation secured by property taxes for the Town of Little Elm is $68,816,582. The above information is presented on the cover page of the Town’s Fiscal Year 2027 Annual Budget to comply with Section 102.005 of the Texas Local Government Code.

In accordance with Section 140.0045 of the Texas Local Government Code expense line items for public notices and lobbying efforts are provided below: Description Public notices required by law Lobbying Services

Adopted FY 2025-2026 $ 40,825 $ 6,000

Proposed FY 2026-2027 $ 40,825 $ 6,000

Table of Contents Overview Mayor and Town Council �� 2 Principal Officers �� 3 Organizational Chart �� 4 Message from the Town Manager �� 5

Fund Summaries Town of Little Elm Fund Structure �� 36 Consolidated Town Wide Budget Summary �� 37 General Fund �� 39 General Fund Revenue �� 41 Administrative Support Fund �� 44 Parks and Recreation Fund �� 46 Debt Service Fund �� 48 Special Revenue Fund �� 50 Street Maintenance Fund �� 52 Landscape Fund �� 54 PEG Fund �� 56 Grant Fund �� 58 Hotel Occupancy Tax Fund �� 60 Donation Fund �� 62 Stormwater Drainage Fund �� 64 TIRZ No. 3 Fund �� 66 Governmental Impact Fee Funds �� 68 Governmental Capital Project Fund �� 71 Utility Fund �� 73 Solid Waste Fund �� 76 Utility Impact Fee Funds �� 79 Utility Capital Project Fund...................................................................................................................................81 Utility Vehicle Equipment Replacement Fund �� 83 Vehicle and Equipment Replacement Fund �� 85 Fire Equipment Replacement Fund �� 87 Facility Maintenance and Replacement Fund �� 89 Community Development Corporation Fund �� 91

Introduction

Mayor and Town Council

Mayor Curtis Cornelious

Jamell Johnson At Large, Place 1

Tony Singh District 2

Ken Eaken Deputy Mayor Pro Tem District 3

Idalia Amaya District 4

Andrew Evans District 5

Michel Hambrick Mayor Pro Tem At Large, Place 6

Town of Little Elm | 2027 Proposed Budget

Introduction

Town of Little Elm, Texas Principal Officers Fiscal Year 2026 - 2027

Town Manager Matt Mueller

Assistant Town Manager Chad Hyde

Assistant Town Manager Caitlan Biggs

Interim Finance Director Brian Clasen

Town of Little Elm | 2027 Proposed Budget

Introduction

Organizational Chart

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Message from the Town Manager Matt Mueller

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Introduction A municipal budget is more than a book of numbers. A budget is a tool for prioritizing, communicating, and allocating resources toward implementing programs, projects, and services that fit the needs of a community’s residents and businesses. It is the duty of those fortunate enough to serve the residents of Little Elm to operate transparently, efficiently, and ethically. The budget is also a tool that allows us to do just that. Budget Philosophy Little Elm is a vibrant, community-focused town that values a high quality of life, regional tourism, and diverse commercial development. Over the past several decades, Little Elm has experienced tremendous growth. While that growth is expected to continue, it will gradually moderate over the coming years as the supply of developable land declines and the community transitions from rapid expansion to a more mature stage of development. A primary focus of this budget is to fund the programs, personnel, and infrastructure necessary to accommodate continued growth while ensuring sustainable, high-quality service levels for years to come. Town staff develop the operating and capital budgets to implement the goals and long-term objectives established by the Town Council through its adopted Strategic Plan. Consistent with the Town Charter, the Strategic Plan is reviewed and adopted every two years to ensure the Town's priorities remain aligned with evolving community needs, growth trends, and future opportunities. In fulfillment of this requirement, the Town completed a comprehensive update to the Strategic Plan throughout 2025, representing the most significant strategic reset since the original framework was adopted in 2013. The Strategic Plan establishes the Council's vision, policy direction, and strategic priorities for the organization across six Focus Areas: Economic Vitality, Community Identity and Engagement, Infrastructure, Service Excellence, Community Safety, and Quality of Life. Staff are responsible for translating those priorities into measurable outcomes through effective operations, responsible financial management, and implementation of Council policy. By aligning financial planning with strategic priorities, the Town ensures taxpayer resources are invested in initiatives that most effectively advance community goals. Annual departmental budgets, supplemental funding requests, and new program proposals are evaluated based on their alignment with the Strategic Plan's six Focus Areas, ensuring resources support adopted priorities rather than isolated operational interests. Likewise, proposed capital improvement projects are evaluated for their ability to advance multiple strategic objectives and provide the greatest longterm value to the community. This integrated planning and budgeting model strengthens organizational accountability, promotes disciplined allocation of limited resources, and ensures consistency between policy direction and financial execution. As a result, the Strategic Plan serves

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

not simply as a policy document, but as the Town's primary decision-making framework for budget development, capital investment, and organizational priorities. The Town of Little Elm's organizational culture is founded on the principles of Servant Leadership and the belief that every public employee exists to serve the community. This philosophy is reinforced through the Town's Core Values of Integrity, Customer Service, Efficiency, and Innovation. These principles guide decision-making throughout the organization and provide the foundation upon which departmental priorities and budget recommendations are developed. The Town's budgeting philosophy is to provide the highest level of service at the greatest value to taxpayers. Achieving that objective requires the organization to operate as effectively and efficiently as possible. To accomplish this, the budget development process includes a rigorous internal review in which department directors conduct peer evaluations of one another's budget proposals to ensure expenditures are justified, operational needs are validated, and resources are allocated responsibly. The Town's financial philosophy also emphasizes maintaining a competitive tax rate, evaluating the long-term financial implications of decisions, applying sound business principles to municipal operations, and preserving healthy fund balances and reserves. Operational efficiency has long been a defining characteristic of the Town of Little Elm. As one of the organization's Core Values, efficiency is embedded throughout daily operations and has guided continuous process improvement efforts for more than a decade. In recognition of these efforts, the Dallas Business Journal named Little Elm the leanest local government in North Texas in 2017. Today, the Town continues to benchmark its operations against comparable communities and consistently finds its per-capita cost of service delivery among the lowest within its competitive market. This disciplined and strategic approach to budgeting has produced measurable long-term results. The Town has strengthened its financial position by building healthy reserves, planning for future obligations, and earning multiple bond rating upgrades in recent years. Maintaining this level of financial stewardship is particularly important as Little Elm enters a new phase of development characterized by moderating growth, economic uncertainty, and the potential for legislative changes at the state level that could significantly affect municipal finance in Texas. The financial policies reflected in this budget position the Town to navigate those challenges while continuing to deliver high-quality services and invest in the community's future. With these guiding principles in place, the 2026-2027 budget reflects investments that support the Council's Strategic Plan while maintaining the Town's longstanding commitment to fiscal responsibility and organizational excellence. Multi-Year Approach Beginning with the FY 2016-2017 budget, our goal has been to successfully present a five-year balanced budget (technically a one-year budget and a four-year financial plan) to the Council for consideration. The approach aims to ensure that we provide appropriate services in Little Elm's

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

high-growth environment but in a way that ensures future services' sustainability. This is particularly important as we continue expanding services in the northern and western parts of the community and extend contractual services to various partners in our region. The five-year budget looks at the cost of the services needed to serve these areas and the revenues coming due to the growth. A multi-year plan is beneficial because service-related expenses will occur before the corresponding revenues will be realized, as the area develops and new taxable value is added to the tax rolls. The multi-year plan is reviewed annually and revised as needed. As we expected, the growth and constant change in the area conditions have changed particular needs and assumptions in the planning years, and we addressed these needs in the new budget. The greatest value in the financial plan is that this multi-year approach lets us see how today's spending decisions will affect the budget in the future and ensure that we can sustain our services. Knowing the long-term impacts allows us to be nimble in our decision-making and take advantage of opportunities while still having confidence that we are not selling out long-term stability for shortterm gain. Although we do not anticipate that Little Elm will reach build-out during the planning years of this plan, it is likely that growth will begin to slow during later years of the plan as available lot inventory is absorbed. Using a multi-year budget and planning tool helps us ensure that quality and availability of services in later years when growth begins to slow. Town-Wide Budget Overview The total FY 2027 budget, including all funds and transfers, is $177,897,463. The adopted FY 2027 budget decreased from FY 2026 due to decreased spending for larger capital projects that were completed during the FY 2026 budget. The reduction in debt expenditures is due to payments on existing service.

Amended FY 2026 $ 95,845,137

Proposed FY 2027 97,997,912

% Total Adopted FY 2026 55%

Debt

13,629,498

11,585,255

Capital Equipment

9,026,787

Capital Projects Transfers Out

Expenditure Categories Operations

Total

Change 2,152,775

% Change 2%

($2,044,243)

-15%

5,185,960

$(3,840,827)

-43%

81,189,854

32,250,632

18%

($48,939,222)

-60%

27,299,322

30,648,061

17%

$3,348,739

12%

177,667,820

100%

(49,322,778)

-22%

$ 215,446,814

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

During the five-year budget period, the town-wide budget, excluding debt, major capital equipment, projects, and transfers out, is expected to increase in years two, four and five. The increase in years two and four are due to regularly planned salary increases. The increase in year five is attributed to an expected increase in costs for the Town’s water purchase contract. FY 2027

$54,371,748

$43,626,165

FY 2028

$58,366,066

$43,959,251

FY 2029

$56,791,037

$45,872,704

FY 2030

$60,198,180

$47,846,052

FY 2031

$61,008,184

$49,575,687

$20,000,000

$40,000,000

$60,000,000

Personnel

$80,000,000

$100,000,000

$120,000,000

Operations

Revenue The Town of Little Elm’s primary source of revenue is property tax. Due to the highly residential makeup of this community, Little Elm’s dependence on this revenue source is higher than many in our area. For FY 2026-2027, the Town has budgeted a gross property tax collection of $48,467,713. This is a decrease from last year’s collections of $1,483,214 (2.97%). The Town is required to remit a portion of collected property tax to the tax increment financing zones and municipal management district. These payments are reflected in a net total budgeted property tax revenue of $39,540,009. This is a decrease from last year’s net collections by a total of $2,531,992 (-6.02%). This decrease is attributed to a reduction to the Town’s debt service payments, resulting in a 3.0 cent reduction in the Interest & Sinking (I&S) tax rate, commonly known as the debt portion of the tax rate. The decrease in property tax revenue is also attributed to new exemptions on the property tax roll for FY 2027. The Town has entered into agreements with two of these properties to receive a payment in lieu of taxes. The payment for these agreements in FY 2027 is $3.78 million. As a result of strategic planning initiatives, retail recruitment has been a huge priority over the past decade. Due to retail growth and favorable economic conditions, Little Elm’s sales tax growth has remained strong. The addition of major retail anchors such as Target and Kroger along the U.S. 380 corridor is expected to further strengthen the Town’s retail base and support continued sales tax growth in the coming years. However, sales tax is generally a source of revenue that is highly volatile and dependent on economic conditions, so we continue to be conservative about our projections in the coming years. Although retail growth has been strong, the highly residential nature of the community means that online sales make up a large segment of our sales tax collections and we continue to have a lower sales tax per capita than our comparison communities. Sales tax collections in FY 2025-2026 have met expectations.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

The Town budgeted for an increase of 3.72% over estimated FY 2025-2026 receipts in the FY 2026-2027 budget. Therefore, the total sales tax budgeted for FY 2026-2027 is $11,949,047, which is a $528,852 or 4.63% increase over what was budgeted last year. The sales tax revenue reported includes revenue receipts and contractual payments attributable to 380 economic development and performance agreements where the sales tax has been previously pledged. Little Elm has grown rapidly over the past two decades, resulting in strong revenue from building permits and other growth-related activities. Anticipated building permit revenue for FY 2026-2027 is $2,384,540. This revenue source will see significant reduction as Little Elm reaches the end of its growth phase. We are conservative in our permit revenue projections and show a decrease in revenue over the five-year planning horizon due to permit revenue being subject to highly volatile economic conditions and anticipation of specific neighborhoods approaching build-out. The licenses, permits, and fees revenue in FY 2026-2027 is $8,821,579 and includes projected revenues of $2,100,000 in building permits and solid waste service fees of $4,422,253. The remaining income is attributable to other types of permitting and registrations required by development services. One of the Town’s long-term objectives is to operate as a service provider for neighboring communities and districts where possible. A significant amount of revenue comes from these contracts for service that Little Elm has with several districts, neighboring communities, and school districts to provide public safety services. The total amount of revenue generated by these intergovernmental service agreements is $10,425,572 This revenue goes directly towards the cost of providing these services. Grants are another major intergovernmental source of revenue for the Town. Additionally, Denton County passed the Transportation Road Improvement Program in 2022 (TRIP 22) to provide municipalities funding for improvements to state highways, major local thoroughfares, safety improvements, and county roads and bridges. Beginning in FY 2024-2025, the Town anticipates receiving a total of approximately $32.5 million in funds from Denton County as various roadway projects are completed throughout Town. Other major sources of revenue come from rates, fees, and charges. These sources are for services rendered and user fees charged, such as ambulance, alarm monitoring, municipal court, recreational use fees, and utility-related services. This category is budgeted for FY 2026-2027 at $35,027,693. The rate, fee, and charge increase Town-wide over the amended FY 2025-2026 is $1,524,861, or about 4.55%. Most of this increase is attributed to charges for water, sewer, and solid waste services. The Utility Fund will see an increase over the amended FY 2025-2026 budget of $1,349,861, or about 5.09%, in rates, fees, and charges. Most of this increase is attributed to the Town’s utility water and wastewater rate plan approved in 2025. Water rates will be increasing by 7% as outlined in this plan. For FY 2026-2027, a total of $26,759,193 has been budgeted for

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

utility sales and other service charges. Of this amount, $16,953,791 comes from water sales, $7,890,903 from sewer, and $1,974,598 from additional charges, fees, and wholesale contracts. Transfers between funds are part of the total sources of revenue. Transfers assist in funding infrastructure improvements and reimbursement for in-kind services across funds. The total transfers budgeted in FY 2026-2027 are $30,904,461. Total revenue from all sources is broken down in the following table: Funding Source Ad Valorem Taxes

Amended FY 2025-2026

Proposed FY 2026-2027

$38,930,253

Payment in Lieu of Taxes

% of Total

Change

% Change

$39,540,009

23%

$609,756

3,728,000

Sales and Use Taxes

11,565,195

11,949,047

383,852

Franchise and Other Taxes

3,060,600

3,053,100

(7,500)

Fines and Forfeitures

782,500

786,000

3,500

Impact Fees

325,000

310,000

(15,000)

-5%

Licenses, Permits & Fees

8,821,579

8,496,579

(325,000)

-4%

Charges for Services

33,511,032

35,035,693

20%

1,524,661

Intergovernmental

40,107,127

33,594,886

20%

(6,512,241)

-16%

Interest Earnings

4,565,000

4,545,000

(20,000)

Debt Proceeds

Miscellaneous

895,512

245,512

(660,000)

-74%

Transfers In

27,299,322

30,904,461

18%

3,605,139

13%

$169,863,120

$172,188,787

100%

$2,315,167

Total

The five-year revenue total revenue projections (excluding funding for major capital projects and interfund transfers) for the Town of Little Elm are as follows: FY 2027

$115,880,447

FY 2028

$115,342,799

FY 2029 FY 2030 FY 2031

$118,423,977 $121,907,718 $123,251,530

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Property Tax Property taxes have been a topic of discussion over the past several years. While the Town of Little Elm does not have anything to do with the assessment of property values, the decisions made at the appraisal district have an impact locally and affect the Town’s budget and property rate calculation. This year Denton County has seen, on average, a decrease in property values countywide. Although property owners typically see one tax bill, the bulk of the property taxes paid by property owners do not go to the Town of Little Elm. In Little Elm, independent school districts receive most of the money paid by property owners and the rest is paid to the Town of Little Elm, Denton County, and any special applicable taxing district. These special taxing districts include Public Improvement Districts (PID), Tax Increment Reinvestment Zones (TIRZ), and a Municipal Management District (MMD). Several neighborhoods in Little Elm exist within a PID or MMD; in the instance of three of the PIDs and the MMD, a percentage of the Town’s collected property tax is remitted to the neighborhood. These arrangements were made with the developer before the construction of these neighborhoods. Although these arrangements place the burden of constructing certain public infrastructure, funding public improvements, or operating public amenities on the developer or district governing boards, it also means that the Town of Little Elm receives a smaller percentage, in some cases half the amount, of property tax generated by its adopted tax rate from property owners in these neighborhoods. Due to the continued growth in valuations over the past decade, the issue of property tax relief has been a topic of discussion at the State Legislature for several sessions. In the 2019 session, the State imposed revenue growth caps affecting municipalities to limit the revenue growth that can be realized on the local tax rate. Recent legislative changes and ongoing discussions regarding property taxes may further affect the Town’s future revenue growth. House Bill 9 increased the business personal property exemption from $2,500 to $125,000 and will reduce the Town’s taxable value by $37.79 million in FY 2026-2027. In addition, proposed changes to appraisal limits and municipal property tax revenue caps could further constrain the Town’s ability to keep pace with population growth, service demands, infrastructure needs, and rising operating costs. It has historically been a goal of the Little Elm Town Council to maintain a competitive tax rate while still planning for future operational and capital growth. Since 2012, the Town’s tax rate has either remained flat or been lowered to help stabilize the municipal portion of the tax bill. In addition, Little Elm also has tax relief available to property owners in the community. The Town has adopted a property tax ceiling, or "tax freeze," for qualifying homesteads owned by homeowners who are 65 years of age or older, or those who qualify as disabled, along with a $10,000 exemption.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Taxable Values The certified taxable value of properties in Little Elm, after adjusting for homesteads with a tax ceiling, is $8.313 billion. This value is 0.84% or $70 million less in assessed valuation than the 2025 tax year taxable value of $8.383 billion. Denton County Central Appraisal District (DCAD) is responsible for providing all taxing entities with a certified tax roll. The roll does reflect approximately $238 million attributable to new taxable values added to the tax roll, which includes improvements and personal property. This becomes very important because new taxable values are deducted from the calculation when calculating the no-newrevenue rate and the voter-approval tax rate. The following graph reflects historical growth in taxable property values, including the current year (2026) certified totals:

Source: Denton CAD Certified Totals 2016 - 2026 9,000 8,000

394,360

7,000

Millions

6,000 5,000

228,631

254,244

277,529 290,494

293,403

313,635

433,302 442,343 424,264

500,000 450,000 400,000

348,282

350,000 300,000 250,000

4,000

200,000

3,000

150,000

2,000

100,000

1,000

50,000

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

Axis Title

It is worth noting that most of the Town of Little Elm’s new growth occurs in neighborhoods that are part of a TIRZ or MMD, where the Town only receives a portion of the property tax revenue collected. This also impacts the property tax rate calculation from new values added to the rolls instead of new revenue due to higher values. Adopted Tax Rate As mentioned earlier, it has been the goal to keep the tax rate competitive with other cities while providing adequate revenue to fund the needs of a rapidly growing community now and in the future. This year, the Town can again propose a tax rate of $0.549900 and still meet those objectives.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

The Town was able to propose a tax rate lower than the no-new-revenue tax rate, prepare for its future obligations, and adhere to the Town’s long and short-term operational plan. The adopted tax rate still provides an anticipated revenue in the tax levy for operations and debt service commitments. Of the total tax rate of $0.549900, $0.475445 or 86.46% is dedicated to general operations and maintenance (O&M) in the General Fund, and $0.075455 or 13.54% is dedicated to general obligation debt service. The following table is a history of the Town’s property tax rate: 0.7000 0.6000 0.5000 0.4000 0.3000 0.2000 0.1000 0.0000

2022

2023

2024

2025

2026

I&S Rate

0.143484

0.149805

0.124113

0.108511

0.079080

M&O Rate

0.486416

0.440095

0.435787

0.441390

0.470820

Total Rate

0.629900

0.589900

0.559900

0.549901

0.549900

M&O Rate

I&S Rate

Total Rate

The average taxable single-family home value is currently $424,264 compared to $442,343 last year. At the proposed property tax rate of $0.549900, the portion of a resident’s tax bill that will be paid to the Town for the average single-family home value will be $2,333.03. The following table is a history of the Town’s property tax collections: Tax Year 2022 2023 2024 2025 2026

Fiscal Year 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027

Tax Levy and Collection History Taxable Valuation Tax Rate Total Tax Levy 6,010,964,507 0.629900 37,863,065 7,397,886,680 0.589900 43,640,134 7,880,608,812 0.559900 46,896,262 8,383,489,638 0.549901 46,668,602 0.549900 8,313,005,927 45,713,219

Town of Little Elm | 2027 Proposed Budget

Collected 38,139,466 43,448,117 46,063,369 49,102,356 N/A

% Collected 100.73% 99.56% 98.22% 105.21% N/A

Town Manager's Message

Operating Expenditures The operating budget is a combination of all costs to do business except for major capital improvement projects (CIP), capital equipment, transfers, and debt service payments. The combined operating budgets for the FY 2026-2027 budget are $97,997,912.

The following chart reflects the FY 2026-2027 percentage of expenditures for operations by function of the Town: Utilities $16,002,327 16%

Public Works $9,005,242 9%

General Government $15,663,069 16% Community Services $4,375,155 5%

Culture and Recreation $12,616,253 13% Public Safety $40,310,866 41%

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Increased Costs, New Programs, and One-Time Expenses The major increases over last year’s adopted budget are as follows:                   

Current Salaries and Benefits - $2,884,546 Inflow and Infiltration Study (Phase 2) - $300,000 Fire Personnel Reorganization - $245,764 New Personnel - $242,442 Eldorado Parkway Traffic Corridor Study - $200,000 Rec Center Fitness Flooring Replacement - $170,000 Compact Tract Loader: Parks Maintenance - $167,000 Police Mobile Data Computer Replacements - $138,303 Little Elm Park Playground and Volleyball Upgrades - $108,000 Credit Card Fee Increase - $106,875 Innovation Fund - $100,000 Property and Evidence Room Expansion - $96,000 Topdresser and Soil - $91,000 Online Paramedic Training Classes - $81,000 Lakefront Trail Connection - $72,000 Fencing Maintenance - $65,000 Fire Mobile Command A/V Rework - $55,512 Splash Pad Surface Repairs - $55,000 AI Plan Review - $50,000

The new programs and significant one-time expenses that have been placed in the budget for the current and future years are as follows: Economic Vitality Department

Request

FY 2027

Aquatics Center

Add permanent bar upstairs

FY 2028

50,000

FY 2029 -

FY 2030 -

FY 2031 -

Community Identity & Engagement Department Administrative Services Aquatics Center Facility Maintenance Information Technology Lakefront Marketing and Communications Parks Maintenance

Request

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

Volunteer Program

7,500

Website ADA compliance Park Bathroom Painting and Repairs

16,000

40,000

Video Encoder for Streaming

31,207

1,859

1,989

2,128

2,277

Building Lights Maintenance Video Equipment Website Accessibility Widget Turf, Soil, Irrigation & Drainage Repairs

35,000 10,000 24,000

35,000 20,000

35,000

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Department Rec Programming Senior Center

Community Identity & Engagement - Continued Request FY 2027 FY 2028 FY 2029

FY 2030

FY 2031

The Rec Website Update

8,000

Senior Center A/V

40,000

Infrastructure Department CDC Facility Maintenance Fleet Maintenance Information Technology Parks Maintenance Police Rec Programming Stormwater Streets

Traffic Administration Wastewater Collection Wastewater Treatment Water Operations

Request Bathroom Fixture Updates LE Park Volleyball & Playground Upgrade Splash Pad Surface Repairs Carpet Replacement in Library Increase for Public Safety Annex Quarterly Fuel Tank Maintenance Battery Backup for Server Room Network Dashboard Licensing Toro MH-400 Topdresser and Soil Property/Evidence Room Update

FY 2027 30,000

FY 2028 -

FY 2029 -

108,000

55,000 30,000 28,100

28,100

55,000 28,100

28,100

2,000

31,478 30,936

31,865

32,821

33,805

34,819

91,000

35,400

96,000

Replacement Fitness Flooring

170,000

19,700

35,000

40,000

72,000 23,000 200,000

23,000 -

26,593

26,733

26,767

26,800

10,000

15,000

300,000

30,000

4,670

130,000

Street Sweeping -North Little Elm Enhanced Street and Sidewalk Maintenance Lakefront Trail Connection Traffi Detection Upgrade Eldorado Traffic Corridor Study MUTCD Compliant Updates to Traffic Signals Signal Engineering Services Inflow and Infiltration Study Phase 2 Generator Maintenance and Testing Replacement of Backhoe

Town of Little Elm | 2027 Proposed Budget

FY 2030

FY 2031

Town Manager's Message

Service Excellence Department Administrative Services CDC Development Services Employee Experience Facility Maintenance Finance

Fire

Fleet Maintenance GIS Information Technology Lakefront

Library

Marketing and Communications

Request

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

Innovation Fund

100,000

Brent Practice Field Updates Cottonwood Baseball Amenties Upgrade and Repairs Dog Waste Station Replacement

35,000

50,000

17,000

AI Plan Review

50,000

HR Software Consultant Payroll Analyst Reclassification Add Facilities Maintenance Technician Part-Time Bank Fee Increase Ambulance Billing FD Payroll Automation FDIC Training IT Services - Checks and Inventory IT Services - Controlled Substances Personnel Reorg Radio Usage Fee - DENCO Training - Online Paramedic Class

30,000

4,323

4,518

4,608

4,815

4,912

19,333

20,197

20,599

21,520

21,948

6,000 24,225 4,000

6,000 24,225 5,500

17,000 6,000 24,225 5,500

7,000

5,000

245,764 7,000

117,646 7,000

120,464 7,000

130,317 7,000

136,807 7,000

81,000

Vehicle diagnostic equipment

17,500

2,000

GIS Trimble Replacement Licensing for Town Large Language Model Trial Position Regrades Restructuring Santa's and Elf Houses The Lawn Rental Equipment Market update for Youth Services Librarian Market updates for Library Assistant positions Program room tables Reclass of Library Technician Specialist/Clerk Reclass of Reference/ Technical Services Librarian Travel & Training RequestPIO Specific

19,305 45,000

6,393

9,681

6,814

7,121

7,264

12,500

12,000

6,479

6,122

5,973

5,592

5,433

5,761

5,683

5,508

5,443

5,276

5,000

15,753

15,867

15,933

16,054

16,123

20,313

21,150

21,558

22,393

22,825

5,000

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Department Neighborhood Engagement

Parks Maintenance

Police Solid Waste Stormwater

Stormwater Streets Town Council

Traffic Administration

Traffic Operations Utility Billing Wastewater Collection Wastewater Treatment Water Operations

Service Excellence -Continued Request FY 2027 FY 2028 Mosquito Contract Increase 16,000 16,000 Neighborhood Engagement 13,838 14,461 Supervisor Kubota MX5200 Upgrade to 22,000 Kubota M7060 Tractor Seasonal Part-Time Payroll 30,000 30,000 Increase Tractor/Box Blade 167,000 18,000 Replacement Police Executive Leadership 10,000 18,000 Training WEX Geo Tracking Dash 300 240 Cams 550 NASSCO Training 550 Spill Response training for 400 400 Community Engagement Staff Cell Phone Allowance 1,920 1,920 SkidSteer Sweeper Attachment 10,000 Trailer Mounted Attenuator 25,000 Staff Data Plans 2,880 2,880 Town Council Redistricting 2nd Bucket Truck for Signal Operations FY 31 Add Sign & Signal Tech iPad and Toughbook for Signal 4,310 960 Techs Trailer Mounted Attenuator 50,000 Storage for Traffic Signal & 9,000 Lighting Inventory 126,065 Credit Card Fees Increase 106,875 Postage Increase 8,000 8,200

FY 2029 16,000

FY 2030 16,000

FY 2031 16,000

14,750

15,414

15,722

30,000

18,000

5,000

18,000

10,000

240

550

400

1,920 2,880 -

1,920 3,360 15,000

250,000

99,463

960

5,270

146,859 8,300

169,283 8,400

192,658 8,500

Phone Allowance- Operators

1,920

Employee Cell Phone Stipend

1,920

Leadership Conferences Staff Cell Phone Allowance Water Operator - Meters

4,000 3,360 126,728

4,000 3,360 84,094

4,000 3,360 85,224

4,000 3,360 87,742

4,000 3,360 88,942

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Community Safety Department CDC Fire Information Technology

Parks Maintenance

Police

Police Stormwater Traffic Operations

Request Additional Cameras at Little Elm Park Lake Buoy and equipment replacement Station 5 Staffing Mobile Command A/V Rework Police Mobile Data Computer Purchase Tyler Fraud, Risk, and Compliance Module Boat Dock Inspection and Repair Fence Maintenance, Replacement, & Repairs Playground/Splash Pad repair Funds Trail maintenance repair and brush removal Axon Contract Consolidation Cost Increase to CLEAR Extra Evidence Media Storage Devices Funding for Administrative Investigations Property/Evidence Tech Spill Response materials for High Priority Facilities Valencia Crosswalk Flashers at Trailhead Crossings (2)

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

40,000

19,000

1,517,798

1,434,863

55,512

138,303

15,000

15,450

15,914

16,391

16,883

16,000

14,000

65,000

35,000

65,000

35,000

65,000

20,000

10,000

45,863 16,536

55,490 17,362

114,171 18,670

119,135 20,043

21,045

2,500

4,000

95,731

93,305

97,015

97,672

4,000

5,200

5,600

4,000

5,200

18,000

Quality of Life Department

Request

Library

Books and E-books increase Brew & Que Event Enhancements Autumn Fest Accessibility and Experience Enhancement

Tourism and Events

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

20,000

10,000

5,000

3,000

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Additional Highlights (Many of these projects cover many years, so they may not be limited to one fiscal year’s budget) Investment in Traffic Flow and Roadway Maintenance Resident feedback continues to demonstrate that maintaining efficient traffic flow throughout the community is a high priority. Recognizing the broad impact of transportation on daily life, the Town Council identified mobility as a primary objective within the new Strategic Plan’s Infrastructure Focus Area. As Little Elm continues to grow, an efficient transportation network will be essential to protecting residents’ quality of life, supporting timely emergency response, facilitating economic development, and improving overall satisfaction with municipal services. Accordingly, this budget prioritizes investments that improve the reliability and efficiency of the Town's transportation network. To address these priorities, the FY 2026–2027 budget includes continued investment in traffic signal management, signal maintenance, and street maintenance. These investments are designed to maximize the capacity and performance of the existing roadway network by improving traffic operations, reducing delays, maintaining critical infrastructure, and extending the useful life of Town streets. While constructing new roadways remains an important long-term strategy, preserving and optimizing the infrastructure already in place provides one of the greatest returns on investment for taxpayers. The Town will continue leveraging technology, traffic data, and coordinated signal timing to improve mobility throughout the community while proactively maintaining transportation assets to reduce longterm costs. Fire Station 5 Based on the Council's strategic direction and long-range planning discussions, this budget takes an important step toward preparing for the community's future public safety needs by establishing a financial plan for the Town's fifth fire station. Recognizing the significant investment required to construct, equip, and operate a new fire station, this budget adopts a phased approach that balances current fiscal responsibility with future service demands. Funding is set aside during the early years of the financial plan to begin preparing for the capital investment, while projected operating costs are incorporated into the later years of the plan to coincide with the anticipated opening of the facility. Planning for major public safety infrastructure years in advance allows the Town to responsibly manage financial impacts while ensuring that emergency services keep pace with community growth. By identifying these costs now and incorporating them into the Town's long-range financial plan, the Council and staff are proactively positioning Little Elm to maintain response times, preserve service levels, and continue providing the high-quality fire protection and emergency medical services that residents expect. Animal Shelter Expansion The Town is moving forward with renovations and an expansion of the existing Animal Shelter to increase capacity and improve operational and public-facing spaces. Town Council has accepted the project, and contract documents are being finalized in preparation for construction. Completion is anticipated in summer 2027. The budget for this project is $3.3 million and has funding set aside

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

from the 2024 Certificate of Obligation (CO) issuance. McCord Park Water Reuse Water Line This project will install approximately 5,600 feet of 8” reuse water lines, extending from the recently built 100,000-gallon reuse water tank located at the wastewater treatment plant to the intersection of Witt Road and King Road (near the entrance of the McCord Park Splash Pad). The project will use treated effluent to provide a sustainable and cost-effective source of non-potable water for irrigation on Town-owned property and nearby landscaped areas. Construction is substantially complete, with landscaping and site restoration underway. Final completion is anticipated by the end of summer 2026. The estimated cost of construction is $1,086,000. The Town received a grant and will pay the remainder of the project from the Utility Fund. Hill Lane Improvements The Town is partnering with Denton County to reconstruct Hill Lane as a concrete, two-lane divided roadway with improved drainage, landscaping, and traffic signals. Drainage infrastructure is currently being installed along Lonesome Dove Drive and will continue along Hill Lane, with the second phase of construction expected to begin soon. Completion is anticipated in summer 2027. All funding of $10,468,000 for construction is from the Denton County TRIP 22 Bond Program. King Road Improvements The Town is partnering with the City of Frisco and Denton County to reconstruct King Road from Rose Lane to Witt Road as a four-lane, divided concrete roadway. The project includes drainage, turn lanes, lighting, landscaping, irrigation, sidewalks, and traffic signal improvements. Subbase preparation is underway, with paving to follow from west to east. Temporary closures at the King Road and Witt Road intersection will begin when demolition starts. Completion is anticipated in summer 2027. The project cost is currently estimated at $8,200,000. The Town has received $6,000,000 in funding assistance from Denton County TRIP 22 Bonds and entered into an interlocal agreement with the City of Frisco. The City of Frisco will manage the construction of the project. Fishtrap Road The Town is partnering with Denton County to expand Fishtrap Road from a two-lane asphalt roadway to a four-lane, divided concrete roadway. The project will also include improved storm drainage, sidewalks, roadway lighting, and traffic signal upgrades at FM 1385. The Town is currently reviewing the 90% design plans, with final design plans anticipated in July. The Town has agreed to advance the project by entering into an interlocal cooperation agreement for the design of $1,188,000. The Town will contract and manage the project's design and then turn plans over to Denton County for bidding and construction.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

North Oak Grove Parkway This project will complete the construction of a four-lane divided concrete section from US 380 north to Fishtrap Road. The project will include underground drainage and sidewalks. The estimated project cost is $5,825,000 and will be funded by the Denton County TRIP 22 Bonds. The timeline for design and construction is unknown currently, but the Town is coordinating with Denton County and the City of Cross Roads to move the project forward. Westside Water System Improvements This project will add a new pump station, ground storage tank, hydro pneumatic tank, and disinfection equipment. This will provide increased pumping capacity and pressure for the water distribution system west of the Little Elm Bridge. Installation of the water storage tank is nearing completion, with interior finish-out work and construction of the site’s retaining walls underway. Completion is anticipated in Spring 2027. Including design, the estimated cost of the total project is $15,000,000. Police Camera Replacement This project began in FY 2023-2024 to replace 99 body and 68 vehicle cameras for the Police department. The current cameras have reached the end of their useful life and are no longer supported. The new cameras will increase efficiency by allowing Police Officers to store videos, photos, and other information with incident/case files. This project will cost $217,467 in FY 20272028, and the total project cost is $1,270,885. Vehicle Equipment Replacement Fund (VERF) In FY 2013-2014, the Vehicle Equipment Replacement Fund (VERF) was established. User departments make annual payments to the funds on all equipment and vehicles so that when the item reaches the end of its useful life, the money is there to purchase its replacement. The total transfer to this fund in the FY 2026-2027 budget is $3,079,987. Employees The total personnel costs, including salary and benefits, is $50.73 million for FY 2026-2027. This includes 398 full-time positions as well as 45.5 seasonal and part-time positions, totaling 443.5 FTEs. We will be experiencing cost increases in personnel due to new positions, increasing the cost of insurance premiums, and pay increases due to the implementation of a compensation plan. For all employees, a step raise is planned for each year in the five-year budget with a 2.5% cost of living adjustment (COLA) for FY 2027-2028, and FY 2029-2030. In addition, in FY 2027-2028, the Town will have 27 payroll periods due to a leap-year effect.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

The new positions adopted within the five-year budget include the following: FY 2026-2027 Positions 

Irrigation Technician - Parks Maintenance



Maintenance Operator – Stormwater



Sign and Signal Technician – Traffic Operations



Facility Maintenance Technician (Part Time) - Facilities



Property/Evidence Technician – Police



Water Operator - Meters

FY 2027-2028 Positions 

None

FY 2028-2029 Positions 

None

FY 2029-2030 Positions 

Fire Captain (3)



Driver/Operator (3) - Fire



Firefighter (3)

FY 2030-2031 Positions 

Sign and Signal Technician – Traffic Operations

Insurance Little Elm is facing the issue that many employers are facing, which is increasing costs to provide insurance. A 10% increase in premiums has been budgeted. As we move into looking at cost reductions, the health insurance coverage will be reviewed annually. TMRS Texas Municipal Retirement System (TMRS), a statewide administered pension plan, is a “cash balance plan” in which members make regular contributions to individual accounts that are matched with employer contributions and supplemented with investment income. TMRS covers more than 940 cities, and each municipality can design a benefit plan to meet its needs and cost structure.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

The Town provides pension benefits for all of its full-time employees through TMRS. The Town continues to contribute 100% of its annual required contribution (ARC) at an actuarially determined rate. Both the employees and the Town make contributions monthly. The Town’s TMRS plan is a 2-to-1 matching ratio with a five-year vesting period. Service eligibility for retirement is age 60 with five years of service or any age with 20 years of service. In addition, the Town has updated service credits and COLA, all annually repeating. The Town’s FY 2025-2026 contribution rate is 13.70%, with the FY 2026-2027 rate at 13.58%, resulting in a 0.12% decrease. As a result, the budgetary impact of the TMRS contribution rate based on the Town’s estimated wage and compensation budget for FY 2026-2027 will increase by approximately $116,932 due to an increase in compensation for steps, market adjustments and new personnel. The following table reflects the Town’s historical contribution rates: TMRS Town Contribution Employee Contribution

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

13.54%

13.31%

13.59%

13.53%

13.85%

13.47%

13.55%

13.75%

13.70%

13.58%

7.00%

General Fund The General Fund is the fund that houses the essential services of municipal government. These services include Police, Fire, Streets, Development Services, and Parks Maintenance. The total expenditure in the General Fund adopted for FY 2026-2027 is $69,798,734. Without transfers to the other funds, the amount is $51,902,458. General Fund revenues and budgeted transfers are estimated at $64,556,852 for FY 2026-2027. This is an increase of 14.34% or $8,099,165 from amended FY 2025-2026. The sales tax maximum rate is 8.25%, with 1% contributed to the Town of Little Elm’s General Fund. The sales tax is projected to be approximately $7.809 million or 3.28% more than last year’s budget in the General Fund. This growth results from continued commercial development, population growth in the area, and a continued shift to online shopping for many residents. Revenue from permitting activity continues to provide sustaining support to general-purpose operations. Single-family residential dwelling permitting activity was budgeted to reflect 1,000 new construction permits in FY 2025-2026. Building permit revenue in FY 2025-2026 was budgeted at $2.10 million, and the Town is estimating a total collection of $1.5 million. The Town is forecasting conservative growth in new construction permits for residential at approximately 850 units in FY 2026-2027. With residential and commercial permitting, the anticipated revenue for building permits in FY 2026- 2027 will be approximately $1.75 million.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

As discussed above, property tax represents 50% of the total funding sources of the General Fund at $32.16 million. It is approximately $164,137 or 0.51%, less than the FY 2025-2026 estimated collection of property tax revenue. This decrease is due to anticipated tax exemptions on limited properties throughout the Town. Transfers into the General Fund represent 2% of the total sources of funds and include payments for general and administrative services from the Utility Fund. The following chart is a breakdown of General Fund operating expenditures by function:

Like most municipal organizations, Public Safety is the most significant cost center of generalpurpose operations, with a combined operating budget of $39.1 million or 76.14% of the total General Fund operating budget. These services include Police, Fire, Municipal Court, Animal Services, and ambulance costs. By category, total personnel costs represent about 79.52% or $40.91 million of General Fund operation costs. The total ending fund balance for the General Fund is projected to be $49.0 million for FY 20252026. This estimated and projected ending fund balance is approximately 79.0% of operating expenditures. The Town’s fund balance legal reserve requirement by town ordinance is 25% and is equal to roughly $15.3 million, leaving a budgeted amount that will be rolled forward for use in future years while the tax base grows in the northern part of the community. In addition to the fund balance that is programmed for future use, $3.7 million will be transferred from the General Fund to the Capital Improvement fund to continue to build a capital reserve that can be allocated to future projects prioritized by the Town Council.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Administrative Support Fund This is an internal service fund consisting of the departments providing administrative services to the rest of the organization and includes the following departments: Town Manager, Human Resources, Communications, Finance, IT, Town Attorney, Facility Maintenance, Fleet Maintenance, Marketing, and GIS. These are functions that were previously housed in the General Fund. The total 2026-2027 budget for this fund is $12,866,563. Utility Fund The Utility Fund (“the utility system”) is 100% self-supporting with rates and charges sufficient to cover operating, debt, and various scheduled capital outlay purchases and capital infrastructure projects. The Town operates a full-service utility with water production and distribution, sewer collection, treatment, and meter billing and collection. The Utility Fund serves as a business enterprise and utilizes full accrual accounting. The Utility Fund segregates and distinguishes water operations and sewer functions and works toward making each process self-supporting. The FY 2026-2027 budget for Water and Sewer combined operations incorporates the multi-year rate package approved by the Town Council on February 20, 2024. The five-year rate plan provided water rate adjustments commencing in October 2024, October 2025, October 2026, October 2027, and October 2028. The Water and Sewer Fund is expected to begin FY 2026-2027 with a $23.6 million working capital balance. The Town maintains working capital per policy of a minimum of 120 days reserves. As a result, the expected ending working capital balance will be more than the required reserve at $9.83 million. A healthy fund balance is necessary to help fund future capital projects and onetime maintenance infrastructure costs planned within the five-year balanced budget. The fund balance is programmed to be reduced in the five-year financial plan due to the increased costs of operations and future debt issuance for capital infrastructure. The total Utility Fund revenues from rates, fees, and charges are expected to be $26.7 million, and with interest earnings of $1.1 million, the total payments of the system are estimated at $27.8 million. It is expected that total revenues will be 5.10% more than the prior-year budget due to increased water usage, marginal growth in residential, multi-family and commercial connections to the Town’s utility system and the 7% water rate increase planned in the multi-year rate plan. The Town assesses and collects water and sewer developer impact fees to help pay the infrastructure costs associated with new development for commercial and residential development. Other fees are related to services performed in the field for new connections, penalties, and interest on late payments and disconnects. Other financing sources include impact fees and other developer

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

contributions. The Utility Fund expenses for operations, debt, transfers, infrastructure improvements, and capital items total $29,979,402. The following graph reflects the uses of funds in the Town’s utility system: Water Operations Wastewater $2,631,957 9% Collection $922,324 3% Wastewater Treatment $2,419,115 8%

Water Purchases $10,028,931 33%

Utility Administration $877,115 3% Utility Billing $841,979 3% Capital Improvement $622,000 2%

Debt Service $4,964,319 17% Transfers Out $6,673,895 22%

The budget includes a pass-through increase for water purchased through the North Texas Municipal Water District (NTMWD). The rate for purchased water will significantly increase based on the information the Town has received from NTMWD. This rate will go from $4.19 to $4.55 per 1,000 gallons. Wholesale water costs for FY 2025-2026 were $8,362,913, while FY 2026-2027 is projected to be $10,023,931, representing a 19.86% increase. NTMWD water rates have continually increased each year, and there are normal rate increases to the customer, as mentioned earlier, one of the unknown threats looming in the future is a significant increase to NTMWD customer cities. Solid Waste Fund This business-type fund accounts for the Town’s solid waste activities (refuse, hazardous waste, and recycling materials). The Town contracts solid waste collection with Community Waste Disposal, Inc. (CWD). In the summer of 2024, staff began evaluating the contract to assess service performance, rate structures, and opportunities for improvement due to its expiration in January 2025. Through comprehensive discussions and negotiations, a new agreement was developed to enhance service delivery while ensuring cost efficiency and price stability for the community. The new contract went into effect on February 1, 2025.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

The Town operates its courtesy disposal site with franchise and user fees generated through this fund. The Solid Waste Fund accounts for the Town’s semi-annual clean-up events and household hazardous waste collection and disposal costs. The annual waste collection and removal contract is estimated at $4.26 million. With this amount, the FY 2026-2027 budget for the Town’s Solid Waste Fund is $5,117,682 after transfers and is supported by franchise fees, billing and collection fees, and sales of service of $4,600,260. SPECIAL REVENUE FUNDS Street Improvement and Maintenance Fund In 2005, Little Elm voters approved a ¼ cent sales tax to construct and maintain the Town's streets and have continued to renew it every four years with the last renewal in May 2025. The next renewal will be in May 2029. The Town issues a competitive bid for street maintenance and awards the request for street repairs based on a comprehensive street maintenance inventory grid maintained by the Town. Street Maintenance Project Inventory is updated annually by Public Works and Engineering and projects are prioritized and placed out to bid. The bids are valueengineered and tailored to the Street Maintenance Sales Tax Budget. The Street Maintenance Fund is budgeted toward neighborhood street repairs and construction annually. The fund is typically spent annually to complete as many street maintenance projects as possible. For FY 2026-2027, this fund is budgeted to receive $2,081,241 from the ¼ cent sales tax allocation. In addition to the money dedicated to street maintenance from this fund, $325,000 in additional funding for street maintenance and $285,000 for sidewalk repair have been allocated from the General Fund in the FY 2026-2027 budget. Parks and Recreation Fund Several years ago, the decision was made to separate the revenue-generating functions of the Parks and Recreation Department into a special revenue fund. This allows staff to take more of a business philosophy towards functions such as The Rec at The Lakefront™, Special Events, and Athletic Programming. This philosophy has been paying off as we see business success at The Cove at The Lakefront® and The Rec™, a much higher level of cost recovery in Special Events, Athletics, and Aquatics, and the elimination of the General Fund subsidy to the Parks and Recreation Fund for direct operational costs. We continue to place great emphasis on special events and, with the opening of Little Elm's first hotel, have added more of an emphasis on regional tourism. Different events will have a different focus and end goal with low to no-cost events tailored to the community being offered and significant regional events expected to generate a profit and generate tourism numbers. We will also partner with outside event production companies to bring additional events to the area.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

During FY 2026-2027 budget and related to the full cost allocation implementation, this fund will receive a subsidy for indirect costs of $2,020,269 from the General Fund. This fund allows user fees to cover the cost of recreation programming and facilities so that minimal tax money is utilized. Hotel Occupancy Tax Fund The Hotel Occupancy Tax Fund was established in FY 2020-2021 after the Council amended the Town’s Code of Ordinances to include short-term rental units in the definition of a hotel. The fund’s only source of revenue is from the 7% hotel occupancy tax. The Town’s tax rate is in addition to the 6% rate imposed by the State of Texas, which is remitted separately to the State. By law, occupancy taxes must directly enhance and promote tourism and the hotel industry. This fund is seeing increased activity with our first hotel coming online in FY 2023-2024. In FY 20262027, $249,565 is budgeted in this fund to promote tourism within the Town. Landscape Fund The funding for this fund comes predominantly from leases the Town has on its tower facilities and funds that developers escrow for landscape and sidewalks. The total revenue from the leases is approximately $245,000. In addition to tower lease proceeds, the fund is supported by a transfer from the Solid Waste Fund for $400,000 and $50,000 from the Community Development Corporation (CDC). This fund will receive annual payments from various Homeowner Associations (HOAs) through FY 2030 as they fulfill contractual agreements to pay back their matching portion of the now-expired Neighborhood Integrity Grant program. The Landscape Fund includes the Town’s right-of-way mowing contract with a budgeted allocation of $572,000. Other budgeted expenses include: 

On-going Operational Expenditures o Irrigation Maintenance: $75,000 o Tree, Bedding, and Median Maintenance: $60,000 o Miscellaneous Landscape and Signage: $50,000



FY 2026-2027 One-Time Expenses o None

The Landscape Fund will begin the year with a balance of $447,927 and is estimated to end the fiscal year with a balance of $413,564.

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Drainage Fund On November 1, 2011, the Town Council adopted Ordinance #1087, implementing the stormwater management program. Beginning in January 2012, Little Elm utility customers were assessed a drainage fee as established and determined by Town staff and a consulting team. The purpose of the fee is to provide more effective stormwater management throughout Little Elm. It will also help protect Lake Lewisville, the community, private property, and the environment from stormwater problems such as pollution, damage to aquatic habitat, creek erosion, and flooding. The stormwater system is a network of structures, channels, and underground pipes that carry stormwater (rainwater) to ponds, lakes, streams, and rivers. The network consists of both public and private systems, and is an integral part of the stormwater management system in the Town that is designed to control the quantity, quality, timing, and distribution of storm runoff. It is not part of the wastewater (sanitary) sewer system, which carries water and waste from drains (sinks, bathtubs, showers, etc.) and toilets to a treatment plant to be treated and filtered. The Town’s drainage fee is based on a drainage master plan as approved by the Town Council and is calculated on impervious service areas. There is a standard square footage assessment for each residential property with commercial properties based on square footage plus concrete parking. Residents pay a base fee of $3.35, and commercial accounts pay a calculated rate on their impervious area per their equivalent residential units of $3.35. The total budget for the Storm Drainage Fund for FY 2026-2027 is $979,159 and funds vehicles, equipment, and personnel to oversee drainage work. There is also funding for various drainage projects to improve the creeks and channels within the Town, including: 

FY 2026-2027 One-Time Expenses o Trailer Mounted Attenuator: $25,000 o Skidsteer Sweeper Attachment: $10,000

PEG Fund Council established this fund in FY 2012-2013 to provide funding for the Town’s future public access and educational channel. The estimated balance for the fiscal year ending September 30, 2026, will be approximately $81,448. The annual revenue to support the fund will be approximately $36,000 for FY 2026-2027. In the coming years, the PEG fund will be utilized to make improvements to improve the broadcast and viewing quality of the Council meetings and public information. Community Development Corporation Fund (CDC) The CDC is supported by a ¼ cent sales tax and is utilized to support parks and recreation improvements and programs in the Town of Little Elm. The CDC typically covers the debt service

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

for portions of parks projects completed in previous years, such as Little Elm Park improvements, Beard Park improvements, and improvements at The Rec at The Lakefront® and The Cove at the Lakefront®. It has also been a critical funding source for many trail and lighting projects. In the coming budget, the major expenses of the CDC are as follows: 

On-going Operational Expenditures o Miscellaneous Park Projects: $75,000 o Lightning Detection System: $12,200 o Broadband at Little Elm Park: $6,000



FY 2026-2027 One-Time Expenses o Massey Tractor Upgrade: $167,000 o Little Elm Park Playground/Volleyball Upgrades: $108,000 o Toro Topdresser: $61,000 o Splash Pad Repair Funding: $55,000 o Cottonwood Ballfields Amenities Upgrade: $50,000 o Little Elm Park Cameras: $40,000 o Brent Practice Field Upgrades: $35,000 o Parks Bathroom Fixture Updates: $30,000 o Lake Buoy Replacement: $19,000 o Dog Waste Station Replacement: $17,000

TIRZ #3, Lakefront Tax Increment Reinvestment Zone The TIRZ for The Lakefront District was established a few years ago to benefit and enhance the development of this unique area in Little Elm. The Town, Economic Development Corporation, CDC, and Denton County all participate in this TIRZ with the contribution of revenues earmarked for improvements in this area. The funding supporting the TIRZ is based on the incremental increase of property taxes and sales taxes generated within the boundaries of the TIRZ. There was very little revenue for the first couple of years, but now that many new projects have occurred in the Lakefront District, revenue sufficient to begin going towards improvements is beginning to be generated. The following are the items funded out of the TIRZ #3 Budget in FY 2026-2027: 

On-going Operational Expenditures o Marketing: $129,580 o Little Elm Park Seasonal Security: $100,000 o Economic Development Incentives: $60,000 o Red, White, and Beach Sponsorship: $50,000 o Public Art - $50,000 o Maintain Lakefront Building Lights: $45,000 o Beach Maintenance: $45,000 o Replace of Lakefront Building Lights: $35,000 o Programming for The Lawn: $35,000 o Influencers: $30,000

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

o o

o o o o o



Debt

Chamber Concert Series Sponsorship: $25,000 Shuttle Services $24,400 Professional Services Property Tax Collection Analysis and Reporting: $15,000 Seasonal Banners: $15,000 Rental Equipment: $11,000 Turf Maintenance at the Lawn: $8,800 Water Tower Light Maintenance: $3,200

FY 2026-2027 One Time Expenses o

Public Art – Electrical Boxes: $25,000

o Restructuring of Santa and Elf Houses at the Lawn - $12,500

The purpose of this fund is to record property taxes levied and collected to pay annual principal and interest payments on debt obligations. The tax levy creates a legally binding pledge to repay a commitment against property values certified by the Denton County Appraisal District. This year, it is anticipated to utilize the I&S rate to pay down existing debt. This will allow for future capacity within the current tax rate and reduce the overall debt burden for the Town. The following is a list of all debt obligations:

Town of Little Elm | 2027 Proposed Budget

Town Manager's Message

Conclusion This document presents the highlights of the FY 2026–2027 budget and a balanced financial plan extending through FY 2030–2031. Throughout the budget development process, staff worked diligently to incorporate the direction provided by the Town Council and to ensure that all identified priorities were addressed. Town staff and department heads have invested significant effort in developing a budget that is conservative, fiscally responsible, and respectful of taxpayer resources, while also responding to the demands and opportunities associated with the community’s continued growth. This budget reflects a disciplined approach to balancing current service delivery needs with long-term sustainability. I am proud to present this document as the product of a collaborative team committed to serving the community’s best interests and advancing the Town’s long-term vision. This budget positions the Town of Little Elm to continue delivering high-quality services while maintaining long-term financial stability in a period of continued growth and change.

Respectfully submitted, Matt Mueller Town Manager

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Town of Little Elm Fund Structure

General Fund

Parks & Recreation Fund

Debt Service Fund

Special Revenue Funds

Impact Fee Fund

Street Maintenance Fund

Park Impact Fee Fund

Landscape Fund

Roadway Impact Fee Fund

COMPONENT UNIT

ENTERPRISE FUNDS

GOVERNMENTAL FUNDS

Capital Project Fund

Impact Fee Fund

Internal Service Funds

Water and Wastewater Utility Fund

Water Impact Fee Fund

Admin Support Fund

Solid Waste Fund

Wastewater Impact Fee Fund

Vehicle Replacement Fund

Utility Funds

Capital Project Fund

PEG Fund

Fire Equipment Replacement Fund

Hotel Occupancy Fund

Facility Maintenance Fund

Community Development Corporation

Grant Fund

Donation Fund

TIRZ No. 3 Fund

Stormwater Drainage Fund

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Consolidated Town Wide Budget Summary

GOVERNMENTAL FUNDS SPECIAL REVENUE IMPACT FEE FUNDS FUNDS

CAPITAL IMPROVEMENT FUNDS

GENERAL FUND

DEBT SERVICE FUND

$52,170,848

$4,237,057

$6,054,259

$4,050,080

$23,057,480

$89,569,724

$32,158,430

$6,341,198

$1,040,381

$39,540,009

Payment in Lieu of Taxes

3,728,000

Sales and Use Taxes

7,809,965

2,182,841

9,992,806

Franchise and Other Taxes

2,582,500

185,000

2,767,500

786,000

60,000

2,443,076

1,106,250

3,549,326

BEGINNING FUND BALANCE

SUBTOTAL

REVENUES Ad Valorem Taxes

Fines and Forfeitures Impact Fees Licenses, Permits & Fees Charges for Services

7,671,000

1,130,500

8,801,500

Intergovernmental

10,425,572

123,278

6,500

22,717,450

33,272,800

Interest Earnings

1,400,000

100,000

181,000

65,000

1,000,000

2,746,000

Debt Proceeds Miscellaneous

187,000

235,512

Transfers In

3,201,578

503,012

450,000

3,728,000

7,882,590

TOTAL REVENUES

$72,393,121

$7,067,488

$5,224,734

$125,000

$28,551,700

$113,362,043

$124,563,969

$11,304,545

$11,278,993

$4,175,080

$51,609,180

$202,931,767

$421,722

$25,000

$829,733

$1,276,455

Public Safety

39,471,445

56,900

3,221,020

42,749,365

Community Services

3,741,143

Public Works

3,260,365

2,921,375

24,221,985

30,403,725

Culture and Recreation

11,426,879

125,500

650,000

12,202,379

Utilities

836,892

Debt Service

6,620,936

Transfers Out

19,791,225

913,454

20,704,679

TOTAL EXPENDITURES

$78,112,778

$6,645,936

$5,683,854

$28,093,005

$118,535,573

NET INCOME/(LOSS)

$(5,719,657)

$421,552

$(459,120)

$125,000

$458,695

$(5,173,530)

ENDING FUND BALANCE

$46,451,191

$4,658,609

$5,595,139

$4,175,080

$23,516,175

$84,396,194

TOTAL FUNDS AVAILABLE

48,512 -

EXPENDITURES General Government

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Consolidated Town Wide Budget Summary INTERNAL SERVICE FUND

ENTERPRISE FUNDS UTILITY FUNDS BEGINNING FUND BALANCE

IMPACT FEE FUNDS

CAPITAL IMPROVEMENT FUNDS

COMPONENT CONSOLIDATED UNIT FUNDS

REPLACEMENT FUNDS and ADMINISTRATIVE SUPPORT FUND

COMMUNITY DEVELOPMENT CORPORATION

TOTAL TOWN WIDE BUDGET

$25,212,777

$6,981,256

$21,161,822

$17,826,856

$1,151,010

$161,903,445

$39,540,009

3,728,000

1,956,241

11,949,047

288,456

3,055,956

REVENUES Ad Valorem Taxes Sales and Use Taxes Franchise and Other Taxes Fines and Forfeitures

786,000

Impact Fees

250,000

310,000

Licenses, Permits & Fees

4,836,804

8,386,130

Charges for Services

26,234,193

35,035,693

Intergovernmental

33,272,800

1,149,000

150,000

275,000

75,000

4,545,000

Debt Proceeds

Miscellaneous

10,000

Interest Earnings

Transfers In

245,512

416,056

6,272,702

16,076,713

30,648,061

$32,934,509

$400,000

$6,422,702

$16,351,713

$2,031,241

$171,502,208

$58,147,286

$7,381,256

$27,584,524

$34,178,569

$3,182,251

$333,405,653

General Government

$9,374,821

$10,651,276

Public Safety

2,765,599

45,514,964

Community Services

634,012

4,375,155

Public Works

2,430,617

32,834,342

TOTAL REVENUES

TOTAL FUNDS AVAILABLE EXPENDITURES

Culture and Recreation

1,051,712

707,100

13,961,191

Utilities

23,103,059

4,157,627

28,097,577

Debt Service

4,964,319

11,585,255

Transfers Out

7,273,895

2,250,000

169,318

250,169

30,648,061

TOTAL EXPENDITURES

$35,341,272

$2,250,000

$4,157,627

$16,426,080

$957,269

$177,667,820

NET INCOME/(LOSS)

$(2,406,763)

$(1,850,000)

$2,265,075

$(74,367)

$1,073,972

$(6,165,612)

ENDING FUND BALANCE

$22,806,014

$5,131,256

$23,426,897

$17,752,489

$2,224,982

$155,737,833

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

General Fund The General Fund houses the basic services of municpal government. These services include Public Safety, Public Works, Community Services, Culture and Recreation, and General Government Administration. General Government Departments

Public Works Budget

Departments

Budget

Town Council

$975,976

Streets

$3,195,553

Non-Departmental

6,642,462

Traffic

639,379

Total General Government

$7,618,438

Total Public Works

Public Safety Departments

$3,834,932

Culture and Recreation Budget

Departments

Budget

Municpal Court

$870,198

Library

$1,413,654

Animal Services

980,481

Parks Administration

46,003

Police

25,314,063

Park Senior Program

493,953

Fire

20,385,888

Park Maintenance

4,328,995

Total Public Safety

$47,550,630

Total Culture and Recreation

$6,282,605

Community Services Departments

Budget

Development Services

$1,384,958

Engineering

1,167,858

Neighborhood Engagement

678,078

Building Inspection / Code

1,297,400

Total Community Services

$4,528,294 Community Services 6%

General Government 11%

Culture and Recreation 9% Public Works 6%

Public Safety 68%

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

General Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

$53,582,879

$50,941,151

$49,013,536

$43,765,391 $36,974,585 $32,732,391 $26,316,097

29,741,590

29,230,857

32,322,567

32,158,430

32,400,950

32,705,639

3,728,000

502,640

517,719

533,251

549,248

Charges for Services

2,714,724

1,871,000

2,009,546

1,965,000

1,940,000

1,915,000

1,890,000

1,865,000

Fines and Forfeitures

1,004,732

782,500

835,327

786,000

836,000

Franchise and Other Taxes

2,832,491

2,565,000

2,548,653

2,582,500

Interest

2,788,887

1,300,000

1,850,000

1,300,000

Interlocal Agreements

8,826,563

9,103,035

9,339,529

10,425,572

10,119,119

11,132,448

11,775,288 12,161,387

License and Permits

4,233,328

2,768,076

2,184,208

2,443,076

2,193,076

1,993,076

501,716

187,000

182,484

187,000

Sales and Use Taxes

8,386,583

7,561,797

7,582,703

7,809,965

8,580,918

8,660,654

8,749,010

Transfer In

2,927,535

1,098,422

1,181,309

1,172,716

1,175,498

1,130,319

1,303,332

$63,958,149

$56,467,687

$59,953,439

$64,566,852

General Government

985,668

446,633

383,168

421,722

421,255

411,722

422,722

447,222

Community Services

3,521,711

3,922,491

3,553,946

3,741,143

3,893,803

3,848,577

3,958,987

3,991,322

Public Safety

34,405,924

39,188,194

36,210,816

39,471,445

41,975,257

40,592,003

43,367,774 43,795,567

Culture and Recreation

4,039,729

4,126,585

3,868,475

5,007,783

5,204,898

5,166,920

5,305,227

5,392,566

Public Works

2,389,048

2,726,788

2,718,702

3,260,365

2,953,671

3,064,026

3,014,099

3,481,132

$45,342,080

$50,410,691

$46,735,107

$51,902,458

$54,448,884 $53,083,247 $56,068,808 $57,107,808

21,257,797

15,145,947

17,912,540

14,406,841

$66,599,877

$65,556,638

$61,881,054

$69,814,997

$68,855,725 $67,447,728 $71,103,428 $72,313,246

(2,641,728)

(9,088,951)

(1,927,615)

(5,248,145)

(6,790,806)

$50,941,151

$41,852,200

$49,013,536

$43,765,391

$36,974,585 $32,732,391 $26,316,097 $19,109,101

BEGINNING FUND BALANCE

Planning Years FY 2029

FY 2030

FY 2031

REVENUES Ad Valorem Taxes Payment in Lieu of Taxes

Miscellaneous

TOTAL REVENUES

33,510,690 33,579,697

$62,064,919 $63,205,534 $64,687,134 $65,106,250

EXPENDITURES

TOTAL OPERATING EXPENDITURES

Transfers Out TOTAL EXPENDITURES

Net Income/Loss

ENDING FUND BALANCE COMMITED RESERVES

76%

64%

79%

63%

54%

Town of Little Elm | 2027 Proposed Budget

14,364,480

(4,242,194)

49%

15,034,620 15,205,438

(6,416,294) (7,206,996)

37%

26%

Fund Summaries

General Fund Revenue General Fund revenue is made up of several categories of revenue from across multiple Town departments. These include: •

Ad Valorem (Property) Taxes – Property Taxes are based on the appraised values provided by Denton County Central Appraisal District.

•

Sales and Use Tax – Of the two percent sales tax on taxable sales within the Town, one cent is recorded as revenue in the General Fund.

•

Franchise Fees – Includes fees assessed for private use of public property.

•

Fines and Forfeiture – Includes all court fines and fees, and contractor and constructions fees, and other Town fees.

•

Licenses and Permits – Includes permits and licenses required by the Town for homes and businesses.

•

Charges for Service – Includes all revenues collected for services provided through the departments funded through the General Fund.

•

Intergovernmental – Activities of two or more governments providing assistance for a program.

•

Miscellaneous – Items not covered above.

Sales and Use Taxes 7,809,965 12%

Transfer In 1,181,309 2%

Miscellaneous 187,000 0% License and Permits 2,443,076 4%

Ad Valorem Taxes 32,158,430 50%

Interlocal Agreements 10,425,572 16%

Interest 1,300,000 2% Franchise and Other Taxes 2,582,500 4% Fines and Forfeitures 786,000 1%

Charges for Services 1,965,000 3%

Payment in Lieu of Taxes 3,728,000 6%

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

General Fund Revenue Summary Actual

Amended

Estimated

Proposed

Planning Years

FY 2025

FY 2026

FY 2027

Ad Valorem - Current

$36,332,065

$36,748,984

$39,244,640

39,795,619

40,478,450

41,271,663

42,509,814

43,033,848

Contra Property Tax

(6,371,395)

(7,614,127)

(6,940,484)

(7,733,189)

(8,173,500)

(8,662,024)

(9,095,124)

(9,549,881)

Penalty and Interest

97,192

75,000

90,504

75,000

Ad Valorem - Prior Year

(315,443)

10,000

(67,093)

10,000

Ad Valorem - Prior Year Contra

(3,663)

(5,000)

Vehicle Inventory Tax

2,835

16,000

$29,741,591

$29,230,857

$32,322,567

$32,158,430

$32,400,950

$32,705,639

$33,510,690

$33,579,967

$3,728,000

$502,640

$517,719

$533,251

$549,248

Town Sales Tax

$8,258,653

$7,816,797

$7,842,703

$8,084,965

$8,755,918

$8,835,654

$8,924,010

Contra Sales Tax

(21,293)

(400,000)

(300,000)

Mixed Drink Tax

100,196

145,000

140,000

125,000

$8,337,556

$7,561,797

$7,582,703

$7,809,965

$8,580,918

$8,660,654

$8,749,010

$2,302,875

$2,150,000

$2,000,000

$2,150,000

Franchise Fee - Gas

459,036

365,000

502,673

385,000

Franchise Fee - Cable

43,821

20,000

30,693

20,000

Franchise Fee - Telephone

21,021

25,000

9,387

22,500

Franchise Fee - Cell Nodes

5,736

5,000

5,900

5,000

$2,832,489

$2,565,000

$2,548,653

$2,582,500

Municipal Court Fines

$900,378

$757,500

$807,294

$758,500

$808,500

Court Credit Card Fees

29,700

25,000

26,614

27,500

Park and Wildlife Fees

933

1,419

$931,011

$782,500

$835,327

$786,000

$836,000

FY 2028

FY 2029

FY 2030

FY 2031

AD VALOREM TAXES

Total Ad Valorem Taxes PAYMENT IN LIEU OF TAXES SALES AND USE TAX

Total Sales and Use Tax FRANCHISE FEES Franchise Fee - Electric

TOTAL Franchise Fees FINES AND FORFEITURES

TOTAL FINES AND FORFEITURES LICENSES AND PERMITS Rental Registrations

$505,910

$250,000

$304,740

$275,000

Mobile Home Park Licenses

14,076

Annual Permits

394,077

35,000

50,925

35,000

7,600

5,000

7,300

5,000

2,861,950

2,100,000

1,500,000

1,750,000

1,500,000

1,300,000

220,235

100,000

120,000

100,000

Other Permits

4,017

6,500

7,287

6,500

Irrigation Permits

117,984

175,000

100,000

175,000

Sign Permits

18,370

12,500

8,390

12,500

Certificate of Occupancy Building Permits Contractor Regs/Reinspections

Garage Sale Permits

3,280

1,490

Alarm Permits

85,829

70,000

$4,233,328

$2,768,076

$2,184,208

$2,443,076

$2,193,076

$1,993,076

Total Licenses and Permits CHARGES FOR SERVICES Infrastructure Inspection Fees

$145,900

$75,000

$135,020

$100,000

Fire Code Inspection Fees

24,911

15,000

23,000

15,000

Platting Fees

26,209

10,000

17,454

10,000

Planning and Zoning Fees

5,350

5,000

5,130

5,000

Plan Review Fees

560,079

300,000

301,805

275,000

250,000

225,000

200,000

175,000

Animal Control Revenue

26,206

20,000

22,856

20,000

Facility Rentals

5,350

6,000

5,000

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

General Fund Revenue Summary Actual

Amended

Estimated

Proposed

FY 2024

FY 2025

FY 2026

Planning Years FY 2027

FY 2028

FY 2029

FY 2030

CHARGES FOR SERVICES Senior Travel/Entertainment Funds

7,658

2,700

5,000

Cottonwood Creek Marina - Land Use

10,000

Library Revenue

15,597

10,000

Concession Proceeds

10,913

15,000

10,000

15,000

Cottonwood Creek Marina - Sales

138,206

70,000

Boat Ramp Fees

52,255

50,000

Ambulance/Fire Runs

1,423,550

1,200,000

1,300,000

Fire Runs/Collection

60,207

40,000

11,581

40,000

Transfer from LEEDC

30,000

Police Record Requests

1,306

Special Events

6,450

2,700

5,000

$2,550,147

$1,856,000

$2,007,246

$1,965,000

$1,940,000

$1,915,000

$1,890,000

$1,865,000

Library Qtr Pledge Denton County

$62,900

$50,000

$65,800

$60,000

Fire Services Pledge Denton County

672,508

672,507

785,579

809,145

238,560

243,331

248,197

253,161

Ambulance Pledge Denton County

60,000

DCFWS-Police Service Agreement

868,861

928,883

1,021,771

1,123,948

1,236,343

1,359,978

1,427,977

Lakewood Village-Fire/EMS Services

90,200

99,000

154,680

156,393

105,141

106,924

Total Charges for Services INTERGOVENMENTAL REVENUE

City of Hackberry-PD Services

138,024

147,685

162,454

178,699

196,569

216,226

227,037

Paloma Creek Police Services

3,123,794

3,620,809

3,826,942

4,040,142

4,266,135

4,505,687

4,759,612

Paloma Creek Fire Services

954,231

951,567

1,332,080

1,439,110

1,554,321

1,616,494

1,681,154

Other Grants/Reimbursements

78,701

75,572

68,000

SRO Contracts - LEISD, DISD

1,616,922

1,632,007

1,744,847

1,865,587

1,994,778

2,133,012

2,238,663

Mutual Aid Reimbursements

212,409

FISD Miller/Roberts

2,500

DCFWS - Fire Services

421,086

424,349

439,012

43,012

439,012

Linden Hills Fire Service

65,701

112,188

128,433

138,715

American Recovery Act Funds

Crossroads Fire/Police Services

475,198

487,077

550,000

600,000

650,000

700,000

750,000

Lakewood PID

53,000

26,651

53,000

81,953

114,735

117,603

120,543

123,556

Total Intergovernmental Revenue

$8,770,334

$9,103,035

$9,339,529

$10,425,572

$10,119,119

$11,132,448

$11,775,288

$12,161,387

Interest Earnings

$2,788,886

$1,300,000

$1,850,000

$1,300,000

$2,201

$2,484

100

Miscellaneous Revenue

490,063

187,000

180,000

187,000

Total Miscellaneous Revenue

$492,364

$187,000

$182,484

$187,000

Transfer from Water Utility Fund

$2,022,911

$2,022,910

$1,022,240

$1,073,435

$1,068,719

$1,070,737

$1,033,619

Transfer from Solid Waste Fund

200,000

46,182

50,286

44,524

44,395

39,585 15,000

MISCELLANEOUS REVENUE Auction Proceeds Abatement Reimbursements

TRANSFERS

Transfer from CDC

15,000

Transfer from Other Funds

689,624

560,000

550,000

15,000

Total Transfers

$2,927,535

$2,797,911

$2,787,910

$1,098,422

$1,153,721

$1,143,243

$1,145,132

$1,103,204

TOTAL REVENUE

$63,605,241

$58,152,176

$61,640,627

$64,483,965

$62,045,924

$63,173,279

$64,701,947

$64,906,392

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Administrative Support Fund

This is an internal service fund that houses the departments providing administrative services to the rest of the organization and includes the following departments: Town Manager, Human Resources, Communications, Finance, IT, Town Attorney, Facility Maintenance, Fleet Maintenance, Marketing, and GIS. These are functions that were previously housed in the General Fund. Admin Services Departments Town Manager Finance Information Technology Town Attorney Marketing and Communications Facility Maintenance Fleet Maintenance GIS Non-Departmental Total Admin Services

Budget $2,455,449 $2,385,516 $2,969,956 $340,000 $986,155 $1,417,586 $713,103 $595,012 $960,000 $12,822,777

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Administrative Support Fund Summary

Actual

Amended Estimated

FY 2025 BEGINNING FUND BALANCE

FY 2026

Proposed

Planning Years

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

$358,127

$530,083

9,317,253

12,507,033

12,822,778

12,502,948

12,533,671

12,991,008

13,007,133

$9,317,253 $12,507,033

$12,507,033

$12,822,778

$12,502,948

$12,533,671

$12,991,008 $13,007,133

REVENUES Transfer In - Admin Overhead TOTAL REVENUES EXPENDITURES General Government

6,420,207

9,352,915

9,055,604

9,228,535

8,840,080

8,868,840

9,323,809

9,295,141

Community Services

359,936

530,765

499,997

634,012

597,774

616,306

613,731

640,467

Culture and Recreation Public Works TOTAL OPERATING EXPENDITURES Transfers Out TOTAL ADMIN FUND EXPENDITURES Net Income/Loss ENDING FUND BALANCE

272,714

832,050

792,250

824,329

875,731

865,229

894,828

908,788

1,741,627

1,966,605

1,806,455

1,966,583

1,980,045

1,973,559

2,008,902

2,012,775

$8,794,484 $12,682,335

$12,154,306

$12,653,460

$12,293,630

$12,323,933

180,771

169,318

209,318

209,738

$8,959,126 $12,863,106

$12,335,077

$12,822,778

$12,502,948

$12,533,671

164,642

$12,841,270 $12,857,172 149,738

149,961

$12,991,008 $13,007,133

358,127

(356,073)

171,956

$358,127

$2,054

$530,083

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Parks and Recreation Fund

This fund is the fiscal and accounting entity used to record financial transactions and balances related to the operation of the Town’s recreation programs. The Fund has four divisions – Aquatic Facility, Recreation Programming, Special Events and Athletics. Special events include July Jubilee, Brew and Que, AutumnFest and more. The two-story recreation center spans over 26,000 square feet, and includes elements such as a large state of the art fitness area, full-size gym, recreation classrooms, multi-purpose room, craft room, outdoor terrace, and spacious men’s and women’s locker rooms. The facility offers memberships, group exercise, programs and classes of all types, amenities, and facility rentals. The Cove at The Lakefront™ aquatic park opened in 2021. The aquatics facility is over 42,000 square feet, with a retractable roof that provides year-round entertainment and activities for all ages. The Cove™ has a FlowRider® Double, a zero-depth splash pad, a large play structure, multiple slides, an activity pool, entertainment areas, party rooms, and cabanas.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Parks and Recreation Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

$3,022,057

$3,229,631

$3,157,312

$2,685,801

$2,157,658

$2,073,329

$1,978,607

Events

1,070,722

1,069,000

1,092,556

1,099,000

Fees

4,427,046

4,582,000

4,468,500

4,607,000

4,639,500

4,701,500

4,726,500

4,736,500

Interest

145,215

100,000

95,000

100,000

Transfer In

50,000

1,725,143

2,020,269

1,965,739

1,874,297

2,024,313

2,126,181

$5,692,983

$7,476,143

$7,381,199

$7,826,269

$7,804,239

$7,774,797

$7,949,813

$8,061,681

1,218,526

1,227,095

1,156,034

1,156,593

1,181,860

1,176,980

1,191,426

1,188,163

2,387

28,456

21,605

28,780

30,219

29,905

30,733

30,902

Recreation Programs

1,245,975

1,679,769

1,373,450

1,787,094

1,637,413

1,357,141

1,399,164

1,399,393

Aquatic Center

3,017,121

3,587,865

3,225,886

3,264,628

3,463,157

3,267,656

3,383,431

3,402,464

$5,484,009

$6,523,184

$5,776,975

$6,237,095

$6,312,649

$5,831,681

$6,004,754

$6,020,922

1,400

1,676,543

1,878,685

1,837,732

1,845,445

1,857,781

1,861,618

TOTAL PARKS FUND EXPENDITURES

$5,485,409

$8,199,727

$7,453,518

$8,115,780

$8,150,381

$7,677,126

$7,862,535

$7,882,540

Net Income/Loss

207,574

(723,584)

(72,319)

(289,511)

(346,142)

97,671

87,278

179,141

Reserve For Maintenance

182,215

182,000

ENDING FUND BALANCE

$3,229,631

$2,506,047

$3,157,312

$2,685,801

$2,157,658

$2,073,329

$1,978,607

$1,975,748

COMMITED RESERVES

59%

31%

42%

33%

26%

27%

25%

BEGINNING FUND BALANCE

Planning Years

REVENUES

TOTAL REVENUES EXPENDITURES Special Events Athletic Programs

TOTAL OPERATING EXPENDITURES Transfers Out

Town of Little Elm | 2027 Proposed Budget

25%

Fund Summaries

Debt Service Fund

The purpose of this fund is to record property taxes levied and collected for the purpose of paying annual principal and interest payments on debt obligations with a legally binding pledge to repay with a commitment of an annual tax levy against property values certified by the Denton County Appraisal District. BOND RATINGS The Town has utilized two different rating agencies over the years – Standard and Poor’s and Moody’s Investor Services. The AA+ and Aa2 ratings from S&P and Moody’s respectively are considered high investment grade ratings of each agency and reflect the Town’s very strong economy, rapidly growing tax base, and strong financial position due to significant ongoing development while maintaining through conservative budgeting and formal policies, which will attract investors. The chart below reflects ratings since 2008.

Rating Entity

Current Rating

Prior Rating Period

Prior Rating

Standard & Poor’s

AA+

August 2021

Moody’s

Aa2

June 2021

Aa3

Standard & Poor’s

August 2020

Standard & Poor’s

January 2017

AA-

Standard & Poor’s

AA-

June 2013

A+

Moody’s

Aa3

April 2010

Moody’s

December 2008

Standard & Poor’s

A+

November 2008

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Debt Service Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

$2,658,563

$3,763,787

$4,237,057

$4,915,509

$5,322,474

$5,375,762

$6,161,040

Ad Valorem Taxes

9,421,442

8,674,390

8,745,978

6,341,198

7,064,343

7,204,388

7,341,968

7,451,275

Intergovernmental

114,625

122,057

120,253

123,278

New Debt Issuance

294,698

100,000

194,821

100,000

98,607

759,912

1,149,212

1,143,912

1,147,662

963,438

$9,830,765

$8,896,447

$9,159,659

$7,324,388

$8,436,833

$8,448,300

$8,589,630

$8,514,713

Principal Cost

6,526,952

6,665,170

4,941,850

4,820,000

4,865,000

3,950,000

3,013,500

Interest Cost

2,190,779

1,996,219

1,679,086

1,684,868

1,505,012

1,329,352

1,113,974

7,810

28,560

25,000

1,500,000

2,000,000

2,500,000

$8,725,541

$8,689,949

$8,686,389

$6,645,936

$8,029,868

$8,395,012

$7,804,352

$6,652,474

TOTAL DEBT SERVICE EXPENDITURES

$8,725,541

$8,689,949

$8,686,389

$6,645,936

$8,029,868

$8,395,012

$7,804,352

$6,652,474

Net Income/Loss

1,105,224

206,498

473,270

678,452

406,965

53,288

785,278

1,862,239

$3,763,787

$3,970,285

$4,237,057

$4,915,509

$5,322,474

$5,375,762

$6,161,040

$8,023,279

BEGINNING FUND BALANCE

Planning Years

REVENUES

Interest Transfers In TOTAL REVENUES EXPENDITURES

Other Debt Services Cost Future Debt Capacity TOTAL OPERATING EXPENDITURES Transfers Out

ENDING FUND BALANCE

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Special Revenue Fund

This fund was established to collect funds that must be used for a specific project. Special revenue funds provide an extra level of accountability and transparency to insure funding will go toward an intended purpose. Types of subaccounts included in this fund include the Municipal Court Technology, Court Security, Child Safety, Police Training -LEOSE, Fire Training -TCLEOSE, and designated parks and recreation funds collected through grants for specific purpose.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Special Revenue Fund Summary

BEGINNING FUND BALANCE

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

Planning Years FY 2028

FY 2029

FY 2030

FY 2031

$506,426

$614,244

$730,901

$786,701

$839,651

$894,451

$948,751

Rates, Fees, and Charges

141,716

107,700

134,968

107,500

Intergovernmental Funds

13,209

6,500

14,310

6,500

Interest

27,237

10,000

36,179

10,000

$182,162

$124,200

$185,457

$124,000

Municipal Court

22,253

29,500

26,300

25,500

28,350

26,500

27,000

30,350

Public Safety

33,134

27,700

27,500

27,700

$55,387

$57,200

$53,800

$53,200

$56,050

$54,200

$54,700

$58,050

18,957

15,000

$74,344

$72,200

$68,800

$68,200

$71,050

$69,200

$69,700

$73,050

107,818

52,000

116,657

55,800

52,950

54,800

54,300

50,950

$614,244

$666,244

$730,901

$786,701

$839,651

$894,451

$948,751

$999,701

REVENUES

TOTAL REVENUES EXPENDITURES

TOTAL OPERATING EXPENDITURES Transfers Out TOTAL FUND EXPENDITURES Net Income/Loss ENDING FUND BALANCE

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Street Maintenance Fund

The Town voted to continue the 1/4 cent sales tax street maintenance allocation in May 2021. The town issues an annual competitive bid for street maintenance and awards the bid for street repairs based on a comprehensive street maintenance inventory grid maintained by the Town’s engineer. Street Maintenance Project inventory is updated annually by Public Works and the Town Engineer and projects are prioritized and placed out to bid; the bids are value engineered and tailored to the budget resources.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Street Maintenance Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

$1,220,338

$1,109,476

$630,152

$573,393

$722,372

$891,285

$1,082,288

2,064,663

1,954,199

1,960,676

2,021,241

2,188,979

2,208,913

2,231,003

55,498

75,000

60,000

$2,120,161

$2,029,199

$2,020,676

$2,081,241

$2,248,979

$2,268,913

$2,291,003

2,231,023

2,500,000

2,138,000

2,100,000

TOTAL EXPENDITURES

$2,231,023

$2,500,000

$2,138,000

$2,100,000

Net Income/Loss

(110,862)

(470,801)

(479,324)

(56,759)

148,979

168,913

191,003

$1,109,476

$638,675

$630,152

$573,393

$722,372

$891,285

$1,082,288

$1,273,291

BEGINNING FUND BALANCE

Planning Years FY 2028

FY 2029

FY 2030

FY 2031

REVENUES Sales Tax Interest Earnings TOTAL REVENUES EXPENDITURES Street Maintenance Capital Outlay

ENDING FUND BALANCE

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Landscape Fund

This fund was set up by resolution of Council whereby all funds from lease/rental payments received from broadband and cellular providers is set aside for landscape improvements throughout the Town.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Landscape Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

$334,138

$495,789

$447,926

$413,563

$399,200

$365,450

$261,075

Rates, Fees, and Charges

286,355

225,000

268,000

245,000

240,000

235,000

Reimbursements

45,373

44,012

29,625

19,000

Interest

14,236

15,000

13,500

10,000

Transfer In

450,000

$795,964

$734,012

$775,512

$749,012

$729,625

$719,000

$714,000

634,313

888,952

823,375

783,375

763,375

823,375

763,375

TOTAL EXPENDITURES

$634,313

$888,952

$823,375

$783,375

$763,375

$823,375

$763,375

Net Income/Loss

161,651

(154,940)

(47,863)

(34,363)

(14,363)

(33,750)

(104,375)

(49,375)

ENDING FUND BALANCE

$495,789

$340,849

$447,926

$413,563

$399,200

$365,450

$261,075

$211,700

BEGINNING FUND BALANCE

Planning Years

REVENUES

TOTAL REVENUES EXPENDITURES Streetscape/Landscape

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

PEG Fund

Public Access Television is a form of non-commercial mass media where ordinary people can create content television programming which is cablecast through cable TV specialty channels. Public access television was created between 1969 and 1971 by the Federal Communications Commission (FCC). Public-access television is often grouped with public, educational, and government access television channels, by the acronym PEG.

Texas Statutes 66.009 Public , Educational, and Governmental access channels: Cable and Video companies doing business in a municipality and holding a state-issued certificate of franchise authority shall provide the municipality with capacity in its communications network to allow public, educational, and governmental PEG access channels for noncommercial programming.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

PEG Fund Summary

BEGINNING FUND BALANCE

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

Planning Years FY 2028

FY 2029

FY 2030

FY 2031

$75,114

$83,277

$82,132

$48,661

$44,661

$40,661

$36,661

Franchise Fees

13,389

35,000

5,565

5,000

Interest

3,777

1,000

2,290

1,000

$17,166

$36,000

$7,855

$6,000

9,003

30,000

9,000

39,471

10,000

TOTAL EXPENDITURES

$9,003

$30,000

$9,000

$39,471

$10,000

Net Income/Loss

8,163

6,000

(1,145)

(33,471)

(4,000)

ENDING FUND BALANCE

$83,277

$89,277

$82,132

$48,661

$44,661

$40,661

$36,661

$32,661

REVENUES

TOTAL REVENUES EXPENDITURES PEG Expenditures

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Grant Fund

The fund accounts for proceeds and expenditures relating to the Coronavirus Relief Fund and the American Rescue Plan Act of 2021. The American Rescue Plan Act of 2021, signed into law March 11, 2021, established the Coronavirus State and Local Fiscal Recovery Funds (“SLFRF”). The Fiscal Recovery Funds are intended to provide support to State, Local, and Tribal governments in responding to the impact of COVID-19 and in their efforts to contain COVID-19 on their communities, residents and businesses. The Fiscal Recovery Funds build on and expand the support provided to these governments over the last year including through the Coronavirus Relief Fund (CRF).

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Grant Fund Summary

BEGINNING FUND BALANCE

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

Planning Years FY 2028

FY 2029

FY 2030

FY 2031

CARES Act

Interest - CARES Act

American Recovery Act

Interest - American Recovery Act

Professional Services

PPE

Capital Expenditures

TOTAL FUND EXPENDITURES

Net Income/Loss

REVENUES

TOTAL REVENUES EXPENDITURES

TOTAL OPERATING EXPENDITURES Transfers Out

ENDING FUND BALANCE

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Hotel Occupancy Tax Fund

This fund accounts for all hotel occupancy taxes collected. Council amended the Town’s Code of Ordinances May 5, 2020 to include short-term rentals to pay a hotel occupancy tax. The Town’s hotel occupancy tax rate is 7%.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Hotel Occupancy Tax Fund Summary

BEGINNING FUND BALANCE

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

Planning Years FY 2028

FY 2029

FY 2030

FY 2031

$212,467

$385,659

$347,300

$282,735

$216,375

$151,368

$82,362

Hotel Tax

200,914

175,000

185,000

180,000

Interest

13,817

3,000

13,000

5,000

$214,731

$178,000

$198,000

$185,000

Personnel

Marketing

120,500

107,500

52,500

41,539

16,000

15,000

$41,539

$136,500

$122,500

$67,500

$99,859

$127,065

$128,859

$127,508

$131,506

$132,949

$41,539

$236,359

$249,565

$251,359

$250,008

$254,006

$200,449

173,192

(58,359)

(38,359)

(64,565)

(66,359)

(65,008)

(69,006)

(15,449)

$385,659

$327,300

$347,300

$282,735

$216,375

$151,368

$82,362

$66,913

REVENUES

TOTAL REVENUES EXPENDITURES

Professional Services TOTAL OPERATING EXPENDITURES Transfers out TOTAL FUND EXPENDITURES Net Income/Loss ENDING FUND BALANCE

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Donation Fund

The Donation Funds purpose is to account for the donations made by civic organizations, businesses, and citizens for specific uses.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Donation Fund Summary

BEGINNING FUND BALANCE

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

Planning Years FY 2028

FY 2029

FY 2030

FY 2031

$81,617

$86,637

$79,223

$78,023

$77,823

$77,623

$77,423

Fire Donations

665

1,500

Police Donations

1,500

Animal Shelter Donations

5,615

2,500

4,360

2,500

Library Donations

20,422

2,000

2,622

2,000

Parks and Rec Donation

4,000

Interest

4,331

2,000

5,160

2,000

$36,553

$6,500

$13,642

$6,500

Fire

Police

1,200

Senior Center

Animal Shelter

2,305

2,500

1,500

2,500

Library

25,648

4,000

19,556

4,000

3,000

Parks and Rec

3,580

TOTAL EXPENDITURES

$31,533

$7,700

$21,056

$7,700

$6,700

Net Income/Loss

5,020

(1,200)

(7,414)

(1,200)

(200)

ENDING FUND BALANCE

$86,637

$85,437

$79,223

$78,023

$77,823

$77,623

$77,423

$77,223

REVENUES

Senior Center Donations

TOTAL REVENUES EXPENDITURES

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Stormwater Drainage Fund

A Municipal Drainage Utility System and consequently the Stormwater Drainage Fund was created in November 2011 by Council approval of Ordinance 1087. The Drainage Utility Fund’s purpose is to protect the public health and safety of the Town’s residents from the loss of life and property caused by surface water overflows, surface water stagnation, and pollution arising from on point source runoff with boundaries of the Town of Little Elm.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Stormwater Drainage Fund Summary

BEGINNING FUND BALANCE

Actual

Amended

Estimated

Proposed

Planning Years

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

FY 2030

$2,084,263

$2,516,417

$2,464,533

$2,331,374

$2,190,884

$2,137,654 $2,041,082

808,671

772,000

770,000

778,000

784,000

790,000

FY 2031

REVENUES Rates, Fees, and Charges Intergovernmental Funds

795,000

Interest

106,149

65,000

70,000

68,000

69,000

70,000

Miscellaneous

24,000

$938,820

$837,000

$840,000

$846,000

$853,000

$860,000

$865,000

505,806

574,985

628,269

801,892

854,805

773,626

817,820

849,390

120,000

35,000

$505,806

$694,985

$748,269

$836,892

$854,805

$773,626

$817,820

$849,390

860

143,137

143,615

142,267

138,685

139,605

143,751

147,295

$506,666

$838,122

$891,884

$979,159

$993,490

$913,231

$961,572

$996,685

432,154

(1,122)

(51,884)

(133,159)

(140,490)

(53,231)

(96,572)

(131,685)

$2,516,417

$2,515,295

$2,464,533

$2,331,374

$2,190,884

$2,137,654

TOTAL REVENUES EXPENDITURES Stormwater Operations Stormwater Projects TOTAL OPERATING EXPENDITURES Transfers Out TOTAL FUND EXPENDITURES Net Income/Loss ENDING FUND BALANCE

Town of Little Elm | 2027 Proposed Budget

$2,041,082 $1,909,397

Fund Summaries

TIRZ No. 3 Fund

In October 2013, the Town Council of the Town of Little Elm approved Ordinance No. 1175 designating a contiguous geographic area within the Town of Little Elm, as a Tax Increment Reinvestment Zone to known as Reinvestment Zone Number Three.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

TIRZ No. 3 Fund Summary

BEGINNING FUND BALANCE

Actual

Amended

Estimated

Proposed

Planning Years

FY 2025

FY 2026

FY 2027

FY 2028

$620,141

$1,200,608

$1,272,092

$1,079,689

$931,317

$800,765

$672,713

FY 2029

FY 2030

FY 2031

REVENUES Ad Valorem Taxes

1,003,149

1,025,006

1,000,000

1,040,381

1,050,785

1,061,293

1,071,906

1,093,344

Sales Taxes

179,662

160,000

161,600

163,216

164,848

166,497

Interest

51,309

25,000

30,000

25,000

$1,234,120

$1,210,006

$1,190,000

$1,226,981

$1,239,001

$1,251,141

$1,263,403

$1,284,841

503,653

821,980

829,537

790,262

752,762

753,262

723,262

317,843

319,743

316,243

317,594

315,144

$503,653

$821,980

$829,537

$1,108,105

$1,072,505

$1,069,505

$1,070,856

$1,038,406

150,000

288,979

311,279

314,867

312,188

320,598

323,449

$653,653

$1,110,959

$1,118,516

$1,419,384

$1,387,373

$1,381,693

$1,391,455

$1,361,856

580,467

99,047

71,484

(192,403)

(148,372)

(130,552)

(128,052)

(77,015)

$1,200,608

$1,299,655

$1,272,092

$1,079,689

$931,317

$800,765

$672,713

$595,698

TOTAL REVENUES EXPENDITURES Economic Development Debt Service TOTAL OPERATING EXPENDITURES Transfers Out TOTAL FUND EXPENDITURES Net Income/Loss ENDING FUND BALANCE

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Governmental Impact Fee Funds

Impact Fees were established to assure the availability of funds for major capital projects needed as a result of development. The laws governing the collection and disbursement of impact fees require separate accounting and reporting of these funds. Additionally, an analysis and update of the fee structure is required every five years. Appropriations from these funds are being utilized to provide supplemental funding for eligible capital improvement projects.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Parks Impact Fee Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

$111,554

$117,131

Park Impact Fees

Interest Earnings

5,577

Planning Years FY 2028

FY 2029

FY 2030

FY 2031

$121,131

$126,131

$131,131

$136,131

$141,131

5,000

4,000

5,000

$5,577

$5,000

$4,000

$5,000

Net Income/Loss

5,577

5,000

4,000

5,000

ENDING FUND BALANCE

$117,131

$122,131

$121,131

$126,131

$131,131

$136,131

$141,131

$146,131

BEGINNING FUND BALANCE REVENUES

Transfers In TOTAL REVENUES EXPENDITURES Transfers Out TOTAL FUND EXPENDITURES

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Roadway Impact Fee Fund

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

$1,894,849

$3,341,184

$3,928,949

$4,048,949

$4,153,949 $4,248,949

North Roadway Impact Fees

924,891

237,834

South Roadway Impact Fees

407,002

75,000

242,618

60,000

50,000

45,000

Interest

114,442

65,000

107,313

60,000

55,000

50,000

$1,446,335

$140,000

$587,765

$120,000

$105,000

$95,000

TOTAL OPERATING EXPENDITURES

Transfers Out

TOTAL FUND EXPENDITURES

1,446,335

140,000

587,765

120,000

105,000

95,000

$3,341,184

$3,481,184

$3,928,949

$4,048,949

$4,153,949

$4,248,949 $4,343,949

$4,438,949

BEGINNING FUND BALANCE

Planning Years FY 2030

FY 2031 $4,343,949

REVENUES

Transfers In TOTAL REVENUES EXPENDITURES Capital

Net Income/Loss ENDING FUND BALANCE

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Governmental Capital Project Fund

The Capital Improvement Project Fund accounts for the acquisition, construction, or improvement of major capital facilities or projects throughout the Town of Little Elm. This dedicated Fund is used to track the revenue and expenses during the life of each project. Projects are not necessarily completed during one budget cycle but may be carried over from one budget cycle to the next.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Governmental Capital Project Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

$22,234,287

$25,753,302

$23,057,480

$23,516,175

$26,125,065

$28,595,284

$31,444,785

Intergovernmental

1,999,251

30,553,449

7,835,999

22,717,450

Interest

1,445,588

1,000,000

918,371

1,000,000

Licenses and Permits

1,123,909

1,290,000

725,000

1,106,250

952,500

1,316,250

1,380,000

BEGINNING FUND BALANCE

Planning Years

REVENUES Bond Proceeds Contributions

Other Sources

650,000

93,750

15,163,288

4,000,000

3,728,000

502,640

517,719

533,251

549,248

$19,732,036

$37,493,449

$13,573,120

$28,551,700

$2,608,890

$2,470,219

$2,849,501

$2,929,248

868,182

10,219,130

15,500,410

10,485,000

3,221,020

Public Works

1,503,800

25,937,939

2,286,062

24,221,985

Culture and Recreation

3,176,909

7,765,332

3,052,880

650,000

445,000

TOTAL EXPENDITURES

$16,213,021

$49,648,681

$16,268,942

$28,093,005

Net Income/Loss

3,519,015

(12,155,232)

(2,695,822)

458,695

2,608,890

2,470,219

2,849,501

2,929,248

ENDING FUND BALANCE

$25,753,302

$13,598,070

$23,057,480

$23,516,175

$26,125,065

$28,595,284

$31,444,785

$34,374,033

Transfers In TOTAL REVENUES EXPENDITURES General Government Public Safety Community Services

Transfers Out

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Utility Fund

This fund is a business-enterprise fund accounting for the Town’s water and sewer utilities including water distribution, sewer plan operations and treatment, water billing and meter reading. The system is self-supporting with rates and charges determined by an annual rate analysis to determine the adequacy of revenue to support operations, capital improvements and debt commitments.

Charges for Service 1,389,499 5%

Interest 1,100,000 4%

Fees 535,000 2%

Sewer Sales 7,890,903 28% Water Sales 16,953,791 61%

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Utility Fund Expenditures

Transfers Out 6,673,895 22%

Water Operations 2,631,957 9%

Wastewater Collections 922,324 3% Wastewater Treatment 2,419,115 8% Utility Administration 877,115 3%

Capital 622,000 2%

Utility Billing 841,979 3% Debt Service 4,964,319 17% Water Purchases 10,028,931 33%

The following departments make up the Utility Fund •

Water Operations - Personnel and water operation expenses

•

Wastewater Collections - Personnel and wastewater operation expenses

•

Wastewater Treatment - Personnel and expenses for the wastewater treatment plant

•

Utility Administration - Personnel who oversee water and wastewater operations

•

Utility Billing - Personnel and operations that oversee the meter billing and collection for water and wastewater services.

Additional Expenditures of the Utility Fund •

Capital Improvement Projects - Water and Wastewater infrastructure

•

Debt Service - Expenditures supporting bond payments for capital improvement projects to support new residential and commercial connections

•

Water Purchases - Water purchased from the North Texas Municipal Water District for distribution by the Town

•

Transfers - Payment in lieu of taxes for services provided by the Town Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Utility Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

$22,114,645

$23,475,373

Water Sales

14,494,171

15,686,585

Sewer Sales

BEGINNING FUND BALANCE

Planning Years FY 2028

FY 2029

FY 2030

FY 2031

$22,345,631 $20,233,189

$18,832,688

$17,594,283 $16,357,911

15,700,000

16,953,791

18,260,614

19,675,264

21,043,682

21,674,992

REVENUES 7,924,249

7,869,035

7,950,000

7,890,903

7,982,771

8,044,645

8,167,439

8,249,113

Fees

861,123

525,000

460,500

525,000

Charges for Services

559,857

1,328,712

1,389,499

1,449,598

1,509,943

1,546,690

1,571,644

2,031,958

1,100,000

1,400,000

1,100,000

1,964

10,000

$25,873,322

$26,519,332

$26,839,212

$27,869,193 $29,327,983

$30,864,852

2,546,300

3,123,746

2,487,590

Interest Miscellaneous Transfer In TOTAL REVENUES

$32,392,811 $33,130,749

EXPENDITURES Water Operations

2,631,957

2,722,560

2,698,146

2,789,207

2,802,756

Wastewater Collections

913,462

933,720

896,381

922,324

953,753

953,438

974,096

985,404

Wastewater Treatment

1,976,195

3,092,846

1,989,274

2,419,115

2,427,189

2,418,404

2,440,752

2,451,200

Utility Administration

885,335

1,038,120

1,167,485

877,115

1,014,026

977,112

970,073

974,359

Utility Billing

819,848

1,287,022

1,278,755

841,979

894,301

908,955

954,421

967,537

$7,141,140

$9,475,454

$7,819,484

$7,692,491

$8,011,830

$7,956,055

$8,128,548

$8,181,256

Water Purchases

7,784,939

8,602,831

8,362,914

10,028,931

11,598,878

13,143,259

14,692,722

16,161,494

Debt Service

2,214,094

4,968,109

4,964,319

4,465,763

4,388,732

4,238,694

4,227,218

TOTAL OPERATING EXPENDITURES

Capital

836,258

Transfers Out

194,000 234,360

6,536,163

6,584,086

$24,512,594

$29,824,480

1,360,728

ENDING FUND BALANCE

$23,475,373

COMMITED RESERVES

350

TOTAL UTILITY FUND EXPENDITURES Net Income/Loss

622,000

6,622,013

6,615,212

$27,968,953

$29,981,636 $30,728,483

$32,103,258

$33,629,182 $35,324,651

(3,305,148)

(1,129,741)

(2,112,443)

(1,400,500)

(1,238,406)

(1,236,371)

$20,170,225

$22,345,631

$20,233,189 $18,832,688

$17,594,283

$16,357,911 $14,164,010

247

292

6,673,895

30,000 -

246

224

Town of Little Elm | 2027 Proposed Budget

200

6,569,218

178

6,754,683

(2,193,902)

146

Fund Summaries

Solid Waste Fund

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Solid Waste Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

$1,953,425

$2,082,617

$1,708,362

$1,178,940

$650,405

$104,694 $(465,538)

Franchise Fees

334,209

280,000

300,000

288,456

294,225

300,110

306,112

312,234

Service Fees

BEGINNING FUND BALANCE

Planning Years FY 2030

FY 2031

REVENUES 4,048,224

4,186,763

4,130,000

4,311,804

4,527,395

4,732,004

4,947,242

5,139,595

Interest

88,065

48,000

61,229

48,000

Miscellaneous

51,596

$4,522,094

$4,514,763

$4,491,229

$4,648,260

$4,869,620

$5,080,114

TOTAL REVENUES

$5,301,354 $5,499,829

EXPENDITURES Personnel

84,437

72,131

79,000

173,123

185,380

182,820

189,850

193,145

Services

3,550,895

4,061,338

4,272,605

4,477,625

4,701,506

4,936,582

5,183,411

157,570

139,692

125,146

131,953

135,150

141,499

145,155

151,935

$3,792,902

$4,273,161

$4,265,484

$4,577,682

$4,798,155

$5,025,825

600,000

$4,392,902

$4,873,161

$4,865,484

$5,177,682

$5,398,155

$5,625,825

$5,871,586 $6,128,491

129,192

(358,398)

(374,255)

(529,422)

(528,535)

(545,711)

(570,232)

$2,082,617

$1,724,219

$1,708,362

$1,178,940

$650,405

$104,694

$(465,538) $(1,094,200)

Operations and Maintenance Capital Outlay TOTAL OPERATING EXPENDITURES Transfers Out TOTAL FUND EXPENDITURES Net Income/Loss

ENDING FUND BALANCE

Town of Little Elm | 2027 Proposed Budget

$5,271,586 $5,528,491 600,000

600,000

(628,662)

Fund Summaries

Utility Impact Fee Funds

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Water Impact Fee Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

$3,195,587

$3,329,579

Water Impact Fees

342,782

150,000

Interest

161,210

Planning Years FY 2028

FY 2029

FY 2030

FY 2031

$3,623,339

$1,598,339

$1,773,339

$1,923,339

$2,073,339

189,739

150,000

100,000

75,000

104,021

75,000

$503,992

$225,000

$293,760

$225,000

$175,000

$150,000

370,000

2,250,000

TOTAL FUND EXPENDITURES

$370,000

$2,250,000

Net Income/Loss

133,992

225,000

293,760

(2,025,000)

175,000

150,000

ENDING FUND BALANCE

$3,329,579

$3,554,579

$3,623,339

$1,598,339

$1,773,339

$1,923,339

$2,073,339

$2,223,339

BEGINNING FUND BALANCE REVENUES

TOTAL REVENUES EXPENDITURES Transfer Out

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Wastewater Impact Fee Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

$2,624,895

$3,156,833

$3,357,917

$3,532,917

$3,657,917

$3,782,917

$3,907,917

Water Impact Fees

390,494

100,000

107,743

100,000

50,000

Interest

141,444

75,000

93,341

75,000

$531,938

$175,000

$201,084

$175,000

$125,000

Net Income/Loss

531,938

175,000

201,084

175,000

125,000

ENDING FUND BALANCE

$3,156,833

$3,331,833

$3,357,917

$3,532,917

$3,657,917

$3,782,917

$3,907,917

$4,032,917

BEGINNING FUND BALANCE

Planning Years

REVENUES

TOTAL REVENUES EXPENDITURES Transfer Out TOTAL FUND EXPENDITURES

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Utility Capital Project Fund

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Utility Capital Project Fund Summary

BEGINNING FUND BALANCE

Actual

Amended

Estimated

Proposed

Planning Years

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

$28,903,334

$30,364,981

$21,161,822

$23,426,897

$23,803,325

$17,340,860

$21,524,854

REVENUES Bond Proceeds Intergovernmental

467,514

150,000

9,041,295

4,296,783

6,272,702

4,026,428

4,030,192

4,033,994

4,037,834

$9,508,809

$4,446,783

$6,422,702

$4,176,428

$4,180,192

$4,183,994

$4,187,834

Water Capital Projects

1,909,757

12,696,789

4,903,212

4,157,627

3,800,000

1,725,000

Wastewater Capital Projects

6,137,405

8,746,730

8,917,657

TOTAL EXPENDITURES

$8,047,162

$21,443,519

$13,649,942

$4,157,627

$3,800,000

$10,642,657

Net Income/Loss

1,461,647

(16,996,736)

(9,203,159)

2,265,075

376,428

(6,462,465)

4,183,994

4,187,834

ENDING FUND BALANCE

$30,364,981

$13,368,245

$21,161,822

$23,426,897

$23,803,325

$17,340,860

$21,524,854

$25,712,688

Interest Transfers In TOTAL REVENUES EXPENDITURES

Transfers Out

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Utility Vehicle Equipment Replacement Fund

The Utility Vehicle Equipment Replacement Fund (UVERF) operates under the principle that the funds are collected and segregated, over a period of time, to cover the replacement cost of existing Water-Wastewater vehicles and equipment.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Utility Vehicle and Equipment Replacement Fund Summary

BEGINNING FUND BALANCE

Actual

Amended

Estimated

Proposed

Planning Years

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

$301,522

$856,840

$1,158,784

$1,393,885

$1,679,853

$1,412,208

$1,677,117

586,469

428,303

416,056

394,168

375,265

319,909

336,041

5,439

1,000

$591,908

$429,303

$417,056

$395,168

$376,265

$320,909

$337,041

36,590

127,359

181,955

109,200

643,910

56,000

220,929

TOTAL EXPENDITURES

$36,590

$127,359

$181,955

$109,200

$643,910

$56,000

$220,929

Net Income/Loss

555,318

301,944

235,101

285,968

(267,645)

264,909

116,112

ENDING FUND BALANCE

$856,840

$1,158,784

$1,393,885

$1,679,853

$1,412,208

$1,677,117

$1,793,229

REVENUES Contributions Interest Auction/Insurance Proceeds TOTAL REVENUES EXPENDITURES Public Works

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Vehicle and Equipment Replacement Fund

The Vehicle Equipment Replacement Fund (VERF) operates under the principle that the funds are collected and segregated, over a period of time, to cover the replacement cost of existing vehicles and equipment.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Vehicle Equipment Replacement Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

$13,519,995

$16,424,839

$15,890,327

$16,551,549

$17,000,789 $18,573,196

3,517,366

2,656,003

2,672,778

2,681,089

2,707,490

2,747,061

Interest

446,301

250,000

289,433

250,000

Auction/Insurance Proceeds

258,723

117,023

Reimbursement

66,006

16,556

$4,288,396

$3,767,366

$3,940,378

$2,906,003

$2,922,778

$2,931,089

$2,957,490

$2,997,061

Contractual Services

General Government

146,286

12,994

222,600

73,064

Community Services

34,125

3,915

160,440

40,110

1,299,612

4,684,281

4,187,971

1,647,078

1,999,965

930,246

3,298,603

5,141,951

83,940

550,589

283,004

227,383

243,439

314,116

109,879

202,352

220,108

224,034

56,700

74,210

116,034

437,559

TOTAL EXPENDITURES

$1,383,552

$5,489,103

$4,474,890

$2,244,781

$2,473,538

$1,358,682

$3,747,116

$5,854,926

Net Income/Loss

2,904,844

(1,721,737)

(534,512)

661,222

449,240

1,572,407

(789,626)

(2,857,865)

ENDING FUND BALANCE

$16,424,839

$14,703,102

$15,890,327

$16,551,549

$17,000,789

$18,573,196 $17,783,570

$14,925,705

BEGINNING FUND BALANCE

Planning Years FY 2030

FY 2031 $17,783,570

REVENUES Contributions

TOTAL REVENUES EXPENDITURES

Public Safety Culture and Recreation Public Works

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Fire Equipment Replacement Fund

The Fire Equipment Replacement Fund (FERF) operates under the principle that the funds are collected and segregated, over a period of time, to cover the replacement cost of existing fire equipment.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Fire Equipment Replacement Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

$764,108

$880,616

$841,789

$224,200

$321,865

$196,823

$493,853

Contributions

475,966

455,173

477,932

478,972

476,034

560,715

562,415

Interest

30,760

2,300

25,000

23,000

$506,726

$457,473

$480,173

$500,932

$501,972

$499,034

$583,715

$585,415

390,218

519,735

519,000

1,118,521

404,307

624,076

286,685

304,450

TOTAL EXPENDITURES

$390,218

$519,735

$519,000

$1,118,521

$404,307

$624,076

$286,685

$304,450

Net Income/Loss

116,508

(62,262)

(38,827)

(617,589)

97,665

(125,042)

297,030

280,965

ENDING FUND BALANCE

$880,616

$818,354

$841,789

$224,200

$321,865

$196,823

$493,853

$774,818

BEGINNING FUND BALANCE

Planning Years

REVENUES

TOTAL REVENUES EXPENDITURES Fire Equipment

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Facility Maintenance and Replacement Fund

The Facility Maintenace and Repair Fund operates under the principle that the funds are collected and segregated, over a period of time, to cover the replacement and repair cost of existing Town facilities.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Facility Maintenance and Replacement Fund Summary

Actual

Amended

Estimated

Proposed

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

$452,734

$598,504

$564,657

$446,657

$448,657

$450,657

$452,657

Contributions

120,000

125,000

120,000

160,000

100,000

Interest

25,770

2,000

12,086

2,000

$145,770

$127,000

$137,086

$122,000

$162,000

$102,000

219,250

170,933

240,000

160,000

100,000

TOTAL EXPENDITURES

$219,250

$170,933

$240,000

$160,000

$100,000

Net Income/Loss

145,770

(92,250)

(33,847)

(118,000)

2,000

ENDING FUND BALANCE

$598,504

$506,254

$564,657

$446,657

$448,657

$450,657

$452,657

$454,657

BEGINNING FUND BALANCE

Planning Years

REVENUES

TOTAL REVENUES EXPENDITURES Facility Maintenance

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Community Development Corporation Fund

The Little Elm Community Development Corporation (CDC) is a 4B Corporation established under the Development Corporation Act of 1979. The corporation is tasked with the promotion and development of new or expanded business enterprises, parks, and other community projects. The CDC derives funding from a one-quarter cent sales tax collected in the Town of Little Elm. The CDC was established in October 2007 and has an independent board appointed by Town Council to govern the corporation. The CDC’s focus is the planning and growth of the parks and recreation system by applying the one-quarter cent sales tax towards capital projects that benefit parks and other related projects.

Town of Little Elm | 2027 Proposed Budget

Fund Summaries

Community Development Corporation Fund Summary

BEGINNING FUND BALANCE

Actual

Amended

Estimated

Proposed

Planning Years

FY 2025

FY 2026

FY 2027

FY 2028

FY 2029

$2,522,413

$2,880,534

$1,151,010

$1,968,082

$3,161,492 $4,377,586

$5,746,345

2,013,331

1,889,199

1,900,676

1,956,241

2,123,979

2,143,913

2,166,003

134,731

75,000

70,000

75,000

$2,148,062

$1,964,199

$1,970,676

$2,031,241

$2,198,979

$2,218,913 $2,241,003

$2,241,003

1,544,941

1,164,578

1,135,200

707,100

116,400

106,400

161,400

106,400

$1,544,941

$1,164,578

$1,135,200

$707,100

$116,400

$106,400

$161,400

$106,400

245,000

2,565,000

507,069

889,169

896,419

710,844

709,919

$1,789,941

$3,729,578

$3,700,200

$1,214,169

$1,005,569

$1,002,819

$872,244

$816,319

358,121

(1,765,379)

(1,729,524)

817,072

1,193,410

1,216,094

1,368,759

1,424,684

$2,880,534

$1,115,155

$1,151,010

$1,968,082

$3,161,492

$4,377,586 $5,746,345

$7,171,029

FY 2030

FY 2031

REVENUES Sales and Use Taxes Interest Transfer In TOTAL REVENUES EXPENDITURES Culture and Recreation TOTAL OPERATING EXPENDITURES Transfers Out TOTAL FUND EXPENDITURES Net Income/Loss ENDING FUND BALANCE

Town of Little Elm | 2027 Proposed Budget