Presenters: Mary Fields

Commission Agenda Item No. 4
Action
FY 2009 Operating and Capital Budget
TPWD Budget and Investment Policy Resolutions
August 21, 2008

I. Executive Summary: The Commission will consider the approval of the FY 2009 Operating and Capital Budget, as well as the Budget and Investment Policy Resolutions.

II. Discussion: Staff will request approval of the Proposed FY 2009 Operating and Capital Budget and the Budget and Investment Policy Resolutions.

The proposed combined budget for fiscal year 2009 is based on legislative appropriations and other authority provided in special provisions and the supplemental appropriations bill.

Through the budget policy, the Commission authorizes the Executive Director to approve and execute, or have executed on his behalf, necessary expenditures, budget adjustments and transfers. Budget adjustments, excluding federal grants and bonds, which exceed $250,000 require prior approval of the Chairman of the Commission and the Chairman of the Finance Committee. The Investment Policy must be reviewed annually by the Commission as required by statute. All Texas Parks and Wildlife Department funds, with a few exceptions, are required to be deposited in the State Treasury. The policy also includes requirements for bank accounts, training and other reporting requirements.

III. Recommendation: Staff recommends the Texas Parks and Wildlife Commission adopt the following motion:

"The Executive Director is authorized to expend funds to operate the Texas Parks and Wildlife Department in accordance with the Proposed FY 2009 Operating and Capital Budget (Exhibits A and B). The Commission also approves the Budget Policy (Exhibit C), and the Investment Policy (Exhibit D)."

Attachments - 4

  1. Exhibit A - FY 2009 Agency Budget by Strategy
  2. Exhibit B - FY 2009 Operating and Capital Budget by Division/Object of Expense
  3. Exhibit C - Budget Policy
  4. Exhibit D - Investment Policy

Commission Agenda Item No. 4
Exhibit A

Texas Parks and Wildlife Department
FY 2009 Agency Budget by Strategy

Strategy FY 2009 Budget
A.1.1. Wildlife Conservation $23,196,163
A.1.2. Technical Guidance 487,634
A.1.3. Hunting and Wildlife Recreation 1,242,343
A.2.1. Inland Fisheries Management 11,632,806
A.2.2. Inland Hatcheries Operations 4,310,568
A.2.3. Coastal Fisheries Management 18,081,726
A.2.4. Coastal Hatcheries Operations 3,140,695
B.1.1. State Park Operations 64,231,223
B.1.2. Parks Minor Repair Program 4,541,549
B.1.3. Parks Support 6,867,023
B.2.1. Local Park Grants 14,959,392
B.2.2. Boating Access and Other Grants 7,120,178
C.1.1. Enforcement Programs 42,623,507
C.1.2. Warden Training Academy 2,299,296
C.1.3. Law Enforcement Support 2,176,701
C.2.1. Hunter and Boater Education 1,585,185
C.2.2. TP&W Magazine 2,697,146
C.2.3. Communication Products and Services 3,180,592
C.2.4. Outreach and Education 1,710,774
C.3.1. License Issuance 7,244,779
C.3.2. Boat Registration and Titling 1,488,033
D.1.1. Improvements and Major Repairs 99,726,107
D.1.2. Land Acquisition 4,630,594
D.1.3. Infrastructure Administration 4,715,858
D.1.4. Debt Service 7,615,245
E.1.1. Central Administration 10,447,916
E.1.2. Information Resources 9,630,283
E.1.3. Other Support Services 3,236,899
Other Activity-Payroll Related 38,072,419
Total $402,892,636
Method of Finance: FY 2009 Budget
General Revenue $87,402,001
GR Ded-Game, Fish, and Water Safety Account 9 125,142,201
GR Ded-State Parks Account 64 46,230,727
GR Ded — Other 15,023,086
Federal Funds 58,825,563
Bonds 50,792,813
Other Funds 19,476,245
Total Method of Finance $402,892,636

Commission Agenda Item No. 4
Exhibit B

Texas Parks and Wildlife Department
FY 2009 Operating and Capital Budget by Division and Object of Expense

Division Salaries & Other Operating Grants Debt Service Benefits Capital Budget Grand Total FTEs
Administrative Resources $6,192,626 $1,054,851     $1,637,950 $12,000 $8,897,427 138.0
Coastal Fisheries 9,246,904 10,043,526     2,445,806 276,668 22,012,904 200.8
Communications 4,479,486 4,436,199 278,000   1,094,814 71,000 10,359,499 90.3
Departmentwide   11,684,548   7,615,245   3,084,979 22,384,772  
Executive Administration 2,190,156 524,117     470,110 4,300,000 7,484,383 36.1
Human Resources 1,404,862 304,437     343,489   2,052,788 27.5
Information Technology 5,301,329 823,837     1,243,162 4,521,592 11,889,920 90.0
Infrastructure 5,273,887 13,988,945     1,342,204 7,514,145 28,119,181 148.0
Inland Fisheries 10,764,984 4,244,019     2,632,039 302,168 17,943,209 225.0
Law Enforcement 34,372,537 10,715,082     9,156,438 1,781,000 56,025,057 638.4
Legal 770,543 68,397     157,576   996,516 11.5
Local Parks 913,204 221,378 20,939,885   268,939   22,343,406 17.0
State Parks 45,249,563 26,265,762     13,325,997 2,517,286 87,358,608 1,277.0
Wildlife 14,948,571 9,072,655 348,807   3,953,897 464,938 28,788,867 320.5
Estimated Construction UB           66,969,908 66,969,908  
Land Acquisition UB           9,266,191 9,266,191  
Grand Total $141,108,652 $93,447,753 $21,566,692 $7,615,245 $38,072,419 $101,081,875 $402,892,636 3,220.1

Commission Agenda Item No. 4
Exhibit C

Budget Policy

It is the policy of the Texas Parks and Wildlife Commission to authorize the Executive Director to approve and execute or have executed on his behalf, expenditures, budget adjustments and transfers as follows:

  1. Adjust the budget to bring unexpended balances forward from prior year approved budgets.
  2. Adjust the budget for transfers between budgetary units, major expense categories, or line items.
  3. Adjust the budget to increase funds to allow payment of appraisal fees, witness fees, and investigation expenses on land acquisition and construction projects.
  4. Approve and/or execute contracts and interagency agreements necessary in the daily operation of the Department. Revenues derived from interagency agreements may be budgeted and expended.
  5. Adjust the budget for appropriated revenues, such as sale of equipment, donations, concessions, escrow, refunds, insurance proceeds, and publications revenue, so long as the expenditures are in agreement with the stated program goals and there will be sufficient cash during the fiscal year.
  6. Approve and/or execute construction, repair, or renovation budgets, contracts, interagency agreements, and change orders if necessary to complete a project as approved by the Commission. Adjust the budget from one Department facility major repair or development project to another or from available revenue to cover increased project costs or changes in scope.
  7. Allocate super combo license revenue to the related stamp funds according to the documented methodology and authorize the related transfers of revenue to appropriate accounts.
  8. Adjust the budget to cover the costs of lawsuits or settlements if deemed to be in the best interest of Texas Parks and Wildlife.
  9. Adjust the budget to place a Department facility into reasonable operation when its condition poses a health or safety hazard or seriously hampers its ability to function.
  10. Authorize classification changes anytime during a budgetary year, providing that such changes have been thoroughly justified and funds are available.
  11. Increase the number of positions when new facilities are placed into operation and/or new programs are implemented, staying within the authorized FTE limit.
  12. Adjust the budget to make capital expenditures for construction projects funded in part with proceeds of bonds issued by the Texas Public Finance Authority.
  13. Approve and/or execute the reimbursement of construction project costs with the proceeds of tax-exempt bonds issued by the Texas Public Finance Authority, pursuant to federal Internal Revenue Code guidelines.

The Chairman of the Commission and Chairman of the Finance Committee are authorized to increase, decrease or otherwise adjust the budget during the fiscal year based on revenue and expenditure information and document those actions as noted below. Any budget adjustments that exceed a threshold of $250,000, excluding federal and bond funds, require the prior approval of the Chairman of the Commission and Chairman of the Finance Committee through such means as a conference call or memo. Donations or gifts exceeding $500 shall be accepted by the Chairman of the Commission and Chairman of the Finance Committee on a monthly basis, with Commission acknowledgement of the acceptance of the donations at each scheduled Commission meeting.

This policy shall rescind any existing policy on budget adjustments and transfers.

In official recognition of the adoption of this resolution in a lawfully called public meeting of the Texas Parks and Wildlife Commission, we hereby affix our signatures this 21st day of August 2008.

Approved:

________________________________
Peter M. Holt, Chairman

________________________________
T. Dan Friedkin, Vice-Chairman

________________________________
Mark E. Bivins, Member

________________________________
J. Robert Brown, Member

________________________________
Ralph H. Duggins, Member

________________________________
Antonio Falcon, M.D., Member

________________________________
Karen J. Hixon, Member

________________________________
Margaret Martin, Member

________________________________
John D. Parker, Member


Commission Agenda Item No. 4
Exhibit D

Investment Policy

All funds administered by Texas Parks and Wildlife (TP&W) are required by law to be deposited in the treasury and invested by the Comptroller with the exception of the Operation Game Thief Fund, the Texas Park Development Fund, and the Lifetime License Endowment Account. Although not required, these funds, with the exception of the Operation Game Thief Fund, are also deposited in the treasury and invested by the Comptroller. TP&W will review the benefit of this arrangement and determine the feasibility of other investment opportunities.

  1. Objectives of TP&W
    1. Suitability of the investment to TP&W requirements
    2. Preservation and safety of principal
    3. Liquidity
    4. Marketability
    5. Diversification of the portfolio
    6. Yield
  2. Policy Guidelines
    1. TP&W funds, unless designated otherwise by Parks and Wildlife Code §11.042, shall be held in the treasury and invested by the Comptroller under Texas Government Code §404.024.
    2. Mitigation funds distributed to TP&W shall be deposited in the treasury and accounted for separately.
    3. Bank accounts authorized by the General Appropriations Act of the 79th Legislature, Article VI, Riders 3, 4 and 5, and Texas Government Code §403.241-403.252 and §660.025 should be either interest-bearing accounts or accounts with no fees. Any interest earned in excess of bank fees shall be deposited in the General Revenue Fund.
    4. All bank accounts will be insured up to $100,000 under FDIC. If at any time deposits exceed $100,000 in any financial institution, the custodian of the affected account(s) is required to obtain collateralization that meets state requirements to cover the amount exceeding $100,000.
  3. Investment Officers
    1. The Investment Officers shall be the Deputy Division Director of Administrative Resources and a designated financial analyst for TP&W, and will be responsible for TP&W investment activity.
    2. The Investment Officers shall attend investment training every other year from a program recommended by the Texas Higher Education Coordinating Board.
    3. The Investment Officers are required to disclose any personal business or familial relationship with a business organization offering to sell investments to TP&W.
    4. The Investment Officers are required to provide a written copy of the investment policy to every business organization engaging in investment activity with TP&W and must obtain written acknowledgement that the policy was received and reviewed and appropriate procedures and controls are in place to preclude unauthorized transactions.
    5. The establishment of any bank accounts under II.C. above must be approved by one of the Investment Officers. Continuance of bank accounts is dependent upon timely and accurate record keeping and reporting.
  4. Reporting
    1. Reports shall be prepared within 45 days of the end of each quarter and distributed to members of the TP&W Commission, the Executive Director and the Chief Financial Officer. These quarterly reports shall comply with state requirements for content.
    2. A report on changes to the Public Funds Investment Act shall be prepared and distributed to members of the TP&W Commission, the Executive Director and the Chief Financial Officer within six months of the end of a regular legislative session.
  5. Review
    1. The TP&W Commission shall review this policy at least annually.

In official recognition of the adoption of this resolution in a lawfully called public meeting of the Texas Parks and Wildlife Commission, we hereby affix our signatures this 21st day of August 2008.

Approved:

________________________________
Peter M. Holt, Chairman

________________________________
T. Dan Friedkin, Vice-Chairman

________________________________
Mark E. Bivins, Member

________________________________
J. Robert Brown, Member

________________________________
Ralph H. Duggins, Member

________________________________
Antonio Falcon, M.D., Member

________________________________
Karen J. Hixon, Member

________________________________
Margaret Martin, Member

________________________________
John D. Parker, Member


Back to Top
Back to Top