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Home My WebLink About08/15/2017 - Special Minutes - City Council MINUTES OF THE CITY COUNCIL BUDGET WORKSHOP CITY OF COLLEGE STATION AUGUST 15 2017 STATE OF TEXAS § COUNTY OF BRAZOS § Present: Karl Mooney, Mayor Council: Blanche Brick Jerome Rektorik Linda Harvell Barry Moore Julie Schultz James Benham City Staff: Kelly Templin, City Manager Chuck Gilman, Deputy City Manager Jeff Capps, Assistant City Manager Jeff Kersten, Assistant City Manager Mary Ellen Leonard, Finance Director Courtney Kennedy, Budget Manager Carla Robinson, City Attorney Mary Ann Powell, Deputy City Attorney Tanya McNutt, City Secretary 1. Call to Order and Announce a Quorum is Present With a quorum present, the Budget Workshop of the College Station City Council was called to order by Mayor Karl Mooney at 3:11 p.m. on Tuesday, August 15, 2017 in the CSU Meeting/Training Facility, 1603 Graham Road, College Station, Texas 77842. 2. Executive Session: Council did not go into Executive Session. 3. Take action, if any, on Executive Sessions No action taken. 4. Presentation, possible action, and discussion on the FY 2017-2018 Proposed Budget. WKSHP081517 Minutes Page 1 Jeff Kersten, Assistant City Manager and Mary Ellen Leonard, Finance Director, continued their review of the proposed FY17-18 budget and citywide budget issues. SPECIAL REVENUE FUNDS The Community Development Fund & CDBG Local Account Fund is set up to administer grant funds from the US Department of Housing and Urban Development. 70.89% of expenditures are for the CDBG program and 29.11% are for the HOME program. The Roadway Maintenance Fee Fund is anticipated to retain only a minimal 5% fund balance as there is no 15% requirement on special revenue funds. Estimate to collect approximately $4 million in FY18. System Wide Water Impact Fee Fund:FY18 impact fee revenues are projected to be$377K. These funds will be used for the debt service payment toward the Well #9, Well#9 Collection Line, and State Highway 6 Water Line capital improvement projects. A transfer to pay for the debt service on the FY17 bonds related to these projects is proposed. Leveraging the impact fee revenue to pay for the debt service on eligible capital projects maximizes the project funding. System Wide Wastewater Impact Fee: FY18 impact fee revenues are projected to be$2.2 million. These funds will be used for the debt service payment for Lick Creek Wastewater Treatment Plant Expansion capital improvement projects. A transfer to pay for the debt service on the FY17 bonds related to this project is proposed. Leveraging the impact fee revenue to pay for the debt service on eligible capital projects maximizes the project funding. System Wide Roadway Impact Fee Fund requires four separate Funds for separate service territories, and fees collected in a particular service area must be used for capital projects within that same service area. The roadway impact fee was approved in three phases. Phase I in 2016 were no fees, Phase II in 2017, will be at a rate that is half the rate of the final Phase III fee in 2018. Mrs. Leonard gave a brief overview of the Court and Police special revenue funds: Court Technology Fee Fund, Court Security Fee Fund, Juvenile Case Manager Fee Fund, Truancy Prevention Fee Fund, Efficiency Time Payment Fee Fund, and Police Seizure Fund. The Cemetery special revenue funds were reviewed, including the Memorial Cemetery Fund, Memorial Cemetery Endowment Fund, and Texas Avenue Cemetery Endowment Fund. The Memorial Cemetery Fund expenditures include a transfer for one-half of the debt service. The Service Level Adjustments for the Memorial Cemetery Endowment Fund include the concrete drive within the Aggie Field of Honor. Other special revenue funds were reviewed: Wolf Pen Creek TIF Fund, West Medical District TIRZ No. 18 Fund, East Medical District TIRZ No. 19 Fund, Public Educational and Governmental (PEG) Channel Access Fund, and the R.E. Meyer Estate Restricted Gift Fund. ENTERPRISE FUNDS WKSHP081517 Minutes Page 2 The Electric Fund: FY18 Electric Fund revenue is estimated to be $104,078,540, and no rate increase is proposed of the Electric Fund in FY18. A cost of service study is currently in progress and results will be brought back to Council. Items being evaluated include rate design, the implementation of a rate stabilization fund and the optimal debt/cash ratio. Service Level Adjustments include a Substation Technician, Assistant Warehouse Supervisor, manhole support trailer, substation service trucks upgrade, safety/compliance training, and an Advanced Metering Infrastructure (AMI) study. Capital project funding from cash is $19,150,000. Major capital projects include overhead and underground lines, new service extensions and the Graham Road Substation. The Water Fund revenues include a proposed rate increase of 6% to be implemented in the 4th quarter of FY18. Service Level Adjustments include an Engineering and Development Coordinator, and Advanced Metering Infrastructure Study. Major capital projects include land acquisition for wells, elevate storage tank construction, State Highway 6 Water Line Phase III and the Woodson Village Rehab project. The Wastewater Fund revenues consistent with budget and no rate change proposed for FY18. There are no Service Level Adjustments. Major capital projects include several trunkline projects, Woodson Village Rehab,the Lick Creek Wastewater Treatment Plant Expansion and the Diversion Lift Station and Force Main project. The Sanitation Fund has a budget of $10,942,405 million and proposes rate increase in the 4th quarter of FY18.No service Level Adjustments are proposed for FY18. A cost of service study is currently in progress and results will be brought back to Council. Items being evaluated include a stratification of rates for residential, multifamily and commercial customers. This will result in varying rate increases in the 4th quarter of FY18. The Drainage Utility Fund: no rate change is proposed. There are no Service Level Adjustments. The Northgate Parking Fund: projected increase in working capital, and the revenue is better than expected due to additional garage lease and meter revenues. Service Level Adjustments include addition of Northgate District Coordinator. Several capital projects planned for FY18. Council moved to Agenda Item 5 for discussion and approval. OUTSIDE AGENCY FUNDING Jeff Kersten, Assistant City Manager, proved a brief overview of the outside agency funding requests. Requests from General Fund amounted to $1,363,624 for: • Research Valley Partnership ($350,000). • Arts Council ($35,000) for operations and maintenance. • Noon Lions Club—4th of July ($15,000) • Aggieland Humane Society ($263,047) • Brazos County Appraisal District($359,150) • Brazos County Health Department($341,427) WKSHP081517 Minutes Page 3 Keep Brazos Beautiful requested a total of$49,190 from the Sanitation Fund. Community Development Outside Agency funding in the amount of$149,131 was proposed. Proposed funding in the amount of$845,244 from the Hotel Tax Fund was proposed for various outside agencies: • Veterans Memorial ($25,000) • Chamber of Commerce ($25,000) • Arts Council O&M ($290,000) • Arts Council Marketing/Public Support($35,500) • Arts Council Affiliate Funding ($355,368) • Easterwood Advertising ($114,376) INTERNAL SERVICE FUNDS Self-Insurance Funds • Employee Benefits Fund (includes a 10%increase in City contribution and funding for the City health clinic) Change in administrator from BCBS to Cigna,PPO 10% increase, High Deductible increase 5%, City Contribution increase 5%. • Property and Casualty Fund • Workers Compensation Fund • Unemployment Compensation Fund Property Casualty Fund Service Level Adjustment included for the addition of PTNB Risk Claim support employee in the amount of$16,149. Retiree Healthcare 1. Problem: change in actuarial math under GASB 75 that goes into effect in FY18 could result in an$8 million impact. 2. Process: 15 different scenarios run to determine biggest impact on dollars with least impact on employees in connection with Healthcare RFP 3. Solution: change eligibility for preferred pricing for plan at retirement, and setup irrevocable trust to fund liability and mitigate increases. Equipment Replacement Fund • Revenues are derived from contributions from departments based on useful life and anticipated replacement cost for such items as fleet, copiers, public safety equipment, etc. • Expenditures: All of the expense is for fleet and equipment purchases and replacements, and no indirect charges in this Fund. Fleet Maintenance Fund • Revenues: charges for service received from other City departments, and minimal fund balance is retained in the account • Expenditures are for operations and maintenance; parts costs continue to increase • Service Level Adjustments are for temporary ICE Staff PTNB and training funds increase WKSHP081517 Minutes Page 4 Utility Customer Service • Revenues: charges to the Electric, Water, Wastewater, Sanitation, and Drainage utilities • Expenditures: operations and maintenance, and credit card charges are over budget due to increase in the credit card brand fees. Meter reading was contracted out in FY16. May need to propose a FY17 Budget Amendment to address overage. • Service Level Adjustments include temporary assistance for UBS Implementation, annual ERP training, and mobile service writers. 5. Presentation, possible action and discussion on the 2017-2018 ad valorem tax rate; and calling two public hearings on a proposed ad valorem tax rate for FY 2017-18. MOTION: Upon a motion made by Councilmember Harvell and a second by Councilmember Benham, the City Council voted six (6) for and one (1) opposed, with Councilmember Rektorik voting against, to hold two public hearings on the tax rate of 49.7500 cents per $100 valuation on August 30 and September 11, both at 7:00 p.m. in the Council Chambers at City Hall. Mayor Mooney recessed the budget workshop at 5:13 p.m. The budget workshop reconvened at 5:35 p.m. and returned to agenda item 4. 6. Adjournment MOTION: There being no further business, Mayor Mooney adjourned the bud.et workshop of the College Station City Council at 5:59 p.m. on Tuesday, Aug ..t , 2i 7 arl ••ney, ► ayor ATTEST: VdIL Tany. �1 utt, City Secretary Page 5 WKSHP081517 Minutes