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Home My WebLink About08/20/2018 - Special Minutes - City CouncilWKSHP082018 Minutes Page 1 MINUTES OF THE CITY COUNCIL BUDGET WORKSHOP CITY OF COLLEGE STATION AUGUST 20, 2018 STATE OF TEXAS § § COUNTY OF BRAZOS § Present: Karl Mooney, Mayor Council: Bob Brick Jerome Rektorik Linda Harvell Barry Moore John Nichols James Benham City Staff: Jeff Capps, Interim City Manager Jeff Kersten, Assistant City Manager Aubrey Nettles, Special Projects Coordinator Mary Ellen Leonard, Finance Director Carla Robinson, City Attorney Mary Ann Powell, Deputy City Attorney Tanya Smith, 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 3:03 p.m. on Monday, August 20, 2018 in the CSU Meeting/Training Facility, 1603 Graham Road, College Station, Texas 77842. 2. Executive Session No Executive Session was held. 3. Take action, if any, on Executive Session, No action was required from Executive Session. 4. Presentation, possible action, and discussion on the FY 2018-2019 Proposed Budget. WKSHP082018 Minutes Page 2 Jeff Kersten, Assistant City Manager and Mary Ellen Leonard, Finance Director, provided a review of the proposed FY18-19 budget and citywide budget issues. The proposed FY19 budget is $360 million with $108 million (30%) is capital projects. Public hearings for the tax rate are scheduled for September 5th and September 13th at 7:00 p.m. Key decision points include public safety, maintenance needs, capital project planning and funding, compensation and benefits, a 5% wastewater rate increase, service level increases to address growth and maintenance needs; and a proposed tax rate for FY18 is 50.5841 per $100 assessed valuation, etc. The budget and tax rate are scheduled to be adopted September 27th. The revised FY18 Budget has an authorized decrease of 1.37%. Current estimate is that there will be a slight increase in fund balance when the year closes. GENERAL FUND FINANCIAL FORECAST Revenues: We will continue with conservative revenue estimates and includes property value and tax rate increases. Expenditures: New expenditures as proposed, the Pay Plan as proposed, and includes the estimated O&M on CIP projects. Mary Ellen Leonard, Finance Director, stated that the forecast is basically the current year end projection as compared to last year’s budget. The revised budget has a plan to draw down fund balance by $5.2 million. The current forecast anticipates not drawing down more than $3.2million. Mrs. Leonard said that the city is required to maintain a 15% fund balance in most funds. The FY19 budget is another draw down of $4.4 million and the current trend in the reduction of the fund balance. Also, Mrs. Leonard stated that if we continue on the current trajectory, we would be below the 15% minimum requirement in FY21.  Revenues: o Sales tax exceeds budget by $600K and that is not related to one time settlements o Natural Gas and BTU Franchise fees are exceeding planned receipts resulting in an additional $300K  Expenses: o Salary savings from departmental vacancies o Maintenance in Public Works forecasted to be under budget due to timing of corrective maintenance work o Significant salary savings from vacancies in departments. Filling qualified positions in all departments, especially upper levels is difficult and time consuming. GENERAL FUND Revenues Mary Ellen Leonard, Finance Director, presented an overview of the general fund budget, including the proposed revenue and components. Sales tax revenue is the single largest source of the general fund revenue at 37% or estimated at $29.1 for FY18 and budgeted for $29.8 million for FY19. The FY18 forecast is 2.0% higher than FY17 actuals with no significant one time sales tax settlements and purchases. The FY19 Budget reflects a .8341 cent per $100 assessed valuation WKSHP082018 Minutes Page 3 tax increase related to the 5% Homestead exemption to provide property tax relief to permanent city residents and to shift a small portion of the tax burden off of permanent residents to other taxpayers in the community. Therefore, we are proposing that FY19 budgeted revenue be 2.5% over the FY18 yearend estimate or $29.9 million. Expenditures Mary Ellen Leonard, Finance Director, provided department summaries, along with Service Level Adjustments (SLAs) and proposed projects:  Population growth in the city is a big factor in what needs are to be provided to the city. Our population at the end of 2017 was 117,191, which doubled by 2014. Some key factors to consider include growth, students and pay plan. To attract and retain a well- qualified workforce, the budget includes a 2% market increase and 1.5% merit pay pool.  Police: SLAs: sworn STEP Plan Modification, budget adjustment to memberships, subs, travel and training. Body Cameras are needed for SWAT and, CID plus CSTEP MDTs. The Service Level Adjustment total is $932,220.  Fire: SLAs: Step pay plan structure, SCBA Tech incentive pay, TIFMAS equipment, two (2) quick response vehicles, helmets, boots, and glove replacement, online paramedic school, seek and maintain Fire and EMS accreditations, increase EMS supply budget, co- medical director, operative IQ software, Knox key secure replacement and TCFP certifications and professional memberships. The Service Level Adjustment total is $887,489.  Public Works: $1,094,207 in service level adjustments for GIS Analyst/Asset management program, public works process mapping, corrective maintenance building funds, delineation of raised median noses, curb replacement funds - (Summit and Castlegate II), and ADA Facility corrective maintenance (Municipal Court/UCS).  Parks and Recreation: $225,589 in service level adjustments for Parks Operations Groundsworker Cityworks Hardware, Severe Weather Detection System, Synthetic Field Paint Removal Machines, and College Station History Book. Revenue projections for recreation programs are $872,350 with expenditures of $3,388,674.  Library: no SLA’s this budget year. At 4:57 p.m., the Mayor recessed the Budget Workshop. The Budget Workshop reconvened at 5:22 p.m.  Planning and Development Services: $200,000 in service level adjustments for 10 year update of the comprehensive plan, and implementation of neighborhood plans.  Information Technology: $527,535 in service level adjustments for digital strategy and policy development, IT project manager, redundant internet connection, office 365 migration, and quarterly PCI security scans.  Fiscal Services: $81,700 in service level adjustments for fiscal administration – finance support assistant, and purchasing – online bidding system.  General Government: $316,203 in service level adjustments, including the City Council’s Office (education, travel, and training), Legal (Legal Assistant I position, and Summer Law Clerk), the Community Services (Citizen Satisfaction Survey), the WKSHP082018 Minutes Page 4 Community Services (Northgate Future Use Implementation Plan), and Human Resources (temporary administrative support to facilitate the transition to electronic employee records, Citywide training development, and supplies and purchased services for the new fulltime position (Property Claims Assistant - currently a part-time non- benefitted position). Non-departmental expenditures include:  Economic Development: General Fund budget includes $500,000 transfer to Economic Development Fund for cash assistance Economic Incentives and a one-time SLA for Kalon Bio-therapeutics in the amount of $153,097.  General and Administrative transfers to offset expenditures incurred by service departments.  Public Agency Funding for various public agencies, such as Lions Club, RVP, Arts Council, Health District, Appraisal District, and Animal Shelter.  Other items including contingency, consulting, and SLAs for SLAs and Proposed Projects - SPRING Creek local Government fund. GENERAL GOVERNMENT CAPITAL PROJECTS - $108,400,352 Mary Ellen Leonard, Finance Director, explained the total amount of appropriations requested for utility needs is $35 million for FY19. These appropriations, coupled with what was approved in prior year that was planned utility expenditures on projects at $67.1 million for next year. Mrs. Leonard stated that if the projects are approved, the financing plan to meet the utility infrastructure needs generated by the City’s growth involves the issuance of $40,957,500 in certificates of obligation for utility projects in spring 2019. Streets and Transportation: street rehabilitation projects, including Greens Prairie and Marion Pugh; extension and capacity improvement projects, traffic and realignment projects, including Capstone and Barron Realignment, pedestrian projects, and Sidewalk/Neighborhood Plan/Street Modification Projects. The total appropriation request is $16.157 million when G&A and debt issuance costs is included, Expenditure request is $35 million and debt financing plan is $16.2 million for Streets. Parks: parking lot rehabilitation, project development for Southeast Park, field redevelopment and renovation of parks restrooms, and system-wide park improvements (lights at Central Park). Additional funding for Veterans Park related to the synthetic field development that you will see in a few slides when we discuss the HOT Funds. Parks Appropriation request is $10.5 million including G&A and Debt issuance Costs, Expenditure request is $12.3 million and debt financing plan is $8.4 million. Facilities Projects: Facility projects include the projects for existing City facilities including the ongoing work related to the new Police Station and Arts Council Building Renovations. Also planned in FY19 are Upgrades to the Fleet Facility Oil Pit and Storm Drain and Gateway Sign #3. Another significant facility project included in the FY19 Budget is a New City Hall. The project is expected to be designed in FY18 and FY19 with construction projected to begin in the latter part of FY19 and continue through FY21. Current forecasts indicate that a tax r ate increase will be WKSHP082018 Minutes Page 5 needed to support the debt service related to the construction of a New City Hall. To minimize the debt issue and therefore any tax rate needed, staff has identified additional funding sources including cash from the Electric Fund, the TIRZ 18 dissolvement and fund balance, the General Fund balance, and the PEG Fund Balance. Technology Projects: Technology capital projects include the Implementation of a Work Management System in the Parks and Recreation Department, a Mobile Computing Infrastructure project, continuation of the Fiber Optic Infrastructure project, and the addition of the E-Builder Software for vertical planning projects. Special Revenue Capital Projects: Special Revenue projects include Hotel Fund (Veterans Park Synthetic Fields, Southeast Park, equipment purchases), Community Development (Georgia Fitch Park, SW Parkway North Sidewalks), Fun for all Payground, Sidewalk Zones (various minor sidewalk projects), Park Land Dedication (various park projects), and Drainage Utility (Various minor drainage projects, Southwood Valley). DEBT SERVICE FUND The FY18 rate of 22.0339 cents will generate an estimated property tax revenue of $20.5 million and will satisfy the FY19 debt service requirement. 50% of the Cemetery debt service will be paid from the tax rate in FY19, with the other 50% coming from the Cemetery Fund. 5. Presentation, possible action and discussion on the 2018-2019 ad valorem tax rate; and calling two public hearings on a proposed ad valorem tax rate for FY 2018-19. This item was not discussed. 6. Adjournment MOTION: There being no further business, Mayor Mooney adjourned the budget workshop of the College Station City Council at 6:17 p.m. on Monday, August 20, 2018. ________________________ Karl Mooney, Mayor ATTEST: ________________________ Tanya Smith, City Secretary Karl Mooney (Sep 14, 2018)