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Home My WebLink About08/21/2018 - Special Minutes - City CouncilWKSHP082118 Minutes Page 1 MINUTES OF THE CITY COUNCIL BUDGET WORKSHOP CITY OF COLLEGE STATION AUGUST 21, 2018 STATE OF TEXAS § § COUNTY OF BRAZOS § Present: Karl Mooney, Mayor Council: Bob Brick – arrived late 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 12:02 p.m. on Tuesday, August 21, 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. WKSHP082118 Minutes Page 2 Councilmember Nichols presented a cost comparison of other cities regarding the general fund expenditures per capita 2018. How do we spend money in our general fund expenditures per capita? Jeff Kersten, Assistant City Manager and Mary Ellen Leonard, Finance Director, continued their review of the proposed FY18-19 budget and citywide budget issues. OUTSIDE AGENCY FUNDING Jeff Kersten, Assistant City Manager, provided a brief overview of the outside agency funding requests. Requests from General Fund amounted to $1,451,681 for:  BV Economic Development Corporation ($350,000)  Arts Council ($35,000) for operations and maintenance.  Noon Lions Club – 4th of July ($15,000)  Aggieland Humane Society ($273,196)  Brazos County Health Department ($395,065)  Brazos County Appraisal District ($383,420) SPECIAL REVENUE FUNDS 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 ($362,476)  Easterwood Advertising ($114,376) The Community Development Fund & CDBG Local Account Fund ($228,000) is set up to administer grant funds from the US Department of Housing and Urban Development. 70 % of expenditures are for the CDBG program and 30% 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 $ 4,689,921 in FY19. System Wide Wastewater Impact Fee: FY18 impact fee revenues are projected to be $1,713,450 since inception by the end of FY18. The FY19 impact fee revenues are projected to be $1,811,600. These funds will be used for the debt service payment for the Lick Creek Wastewater Treatment Plant Expansion. Also, a transfer to pay for the debt service on the FY17 bonds related to this project totaling $328,881 is proposed and as additional bonds are issued for this $37 million project, additional funds will be transferred from this special revenue fund. WKSHP082118 Minutes Page 3 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 w ithin that same service area. For FY18, estimated collections across all zones total $283,000. FY19 will be the first year that the full fee will be in effect. Anticipated collections across all zones are estimated at $678,000. Only zone C has collected enough fees to be transferred to a project and the FY19 budget proposes to transfer all funds collected in that area, anticipated to be $595,000 to the existing project of Captstone / Barron Realignment. 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 $150K for construction of a restroom. 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, Dartmouth Synthetic TIRZ, Public, Educational and Government (PEG) Channel Building Fee Fund, R.E. Meyer Estate Restricted Gift Fund, and Fun for All Playground Fund. ENTERPRISE FUNDS The Electric Fund: FY18 Electric Fund revenue is estimated to be $5.4 million, and no rate increase is proposed of the Electric Fund in FY19. 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 an Electric T&D Supervisor, Projects Planning Coordinator, GIS Analyst, Backyard Bucket Truck, Substation Service Truck, and Increase for Energy Programs, and Substation Service Truck Upgrade. Capital project funding from cash is $638,067. The proposed FY19 non-operating budget is $39,314,023. Including a proposed one-time transfer of $10,000,000 from the Electric Fund to the General Government CIP Fund for purposes of building a New City Hall. Additionally, the proposed FY19 transfer to the Electric Capital Improvement Projects Fund is $14,975,000 substantially for AMI. These funds are transferred in lieu of additional debt issuance. Major capital projects include electrical system services for new customer additions (residential, commercial, apartments and subdivisions) and another significant FY19 Electric capital project is the initial implementation of Advanced Meter Infrastructure (AMI). The Water Fund FY17 to FY18 projected ending working capital stable, but reflects the rate increase of 6% that went into effect July 1, 2018. Service Level Adjustments include an additional Field Operations Supervisor to assist with existing preventative maintenance, due to system growth, aging infrastructure and increased regulatory and administrative requirements. Major WKSHP082118 Minutes Page 4 capital projects includes an estimated debt issue in the amount of $12,957,500 for Water capital projects. The Wastewater Fund revenues consistent with budget and a rate increase of 5% proposed for FY19. Service Level Adjustments include Plant Operations Maintenance Supervisor, and a Lead Power and Control Supervisor (Crew Leader). Major capital projects include an estimated $10,025,000 in current revenues that will be transferred from operations to fund Wastewater capital projects. In addition, the FY19 Proposed Budget includes an estimated debt issue in the amount of $23,800,000 for Wastewater capital projects. The Sanitation Fund revenues include a rate increase that went into effect on July 1, 2018 and is indexed to CPI. Next rate increase will occur October of 2019 (FY2020). Service Level Adjustments include Residential Route Manager & Automated Sideloader and Residential Solid Waste & Recycling Guide & Calendar. Funding in the amount of $49,190 is proposed in the Solid Waste Fund for Keep Brazos Beautiful (KBB) for operations, the Demonstration Garden at Texas Ave & George Bush location, beautification along with litter abatement, and educational programs. Non-operating expenditures include $352,963 for the Twin Oaks Landfill debt service payment. The Drainage Utility Fund: no rate change is proposed. There are no Service Level Adjustments. The Northgate Parking Fund: revenue is down from the FY18 budget by 9.8%. All capital related projects that were planned for FY18 will be completed in FY18 and projected to be break-even at end of FY18. Service Level Adjustments include a Study for the ‘Northgate Use and Implementation Plan, which will identify and address operational challenges in the Northgate district. This study is approximately $300,000 and will be split 50% with Community Services Division within the General Fund at $150,000 each. Mayor suspended Item No. 4 to discussion and possibly approve Item No. 5. SPECIAL REVENUE FUND – HOTEL TAX Hotel Tax revenue received is used for City expenditures related to tourism as well as to fund Outside Agency requests, and $4,828,521 or 72% of the City Expenditure FY19 proposed amount is for Veteran’s Park, Southeast Park and Capital items that are only partially fund ed through this Fund. FY18 projected revenue reflects 1% increase over FY18 estimate. Expenditures include $5.7 million for City operations, capital projects, preferred access payment, and miscellaneous programs and events. Also included is proposed funding of $3.44 million for HOT funded outside agencies including CVB, Arts Council, Easterwood Airport, Veterans Memorial, and the Chamber of Commerce. INTERNAL SERVICE FUNDS Self-Insurance Funds WKSHP082118 Minutes Page 5  Revenues in these funds come from charges to the departments. The City expense for healthcare will go up 5% this year and that will be charged to the departments. It is reflected in the departmental budgets already.  Property and Casualty Fund  Workers Compensation Fund  Unemployment Compensation Fund Property Casualty Fund Service Level Adjustment include the conversion of a part time non benefited employee to a full time FTE to assist with claims processing. This employee will be paid for from the Property & Casualty Insurance Fund in the amount of $38,828. Equipment Replacement Fund  Revenues: Contributions from departments based on useful life and anticipated replacement cost  Fleet  Copiers  Other Equipment  Public Safety Equipment  Expenditures:  88% of the expense is for Fleet Purchases and Replacement  No indirect charges are incurred by the fund Fleet Maintenance Fund  Revenues:  Contributions from departments based on usage of the department  Minimal fund balance is retained in the account as 15% requirement does not apply  Expenses:  56% of the expense is for Parts  No indirect charges are incurred by the fund – it’s parts and labor only  SLA’s  Fleet Service Mechanic  PTNB Warehouse Assistant Utility Customer Service  Revenues:  Contributions from utility funds based on usage of the department  Expenses:  Expenses are anticipated to be right at budget for FY18.  SLA’s  Temporary Assistance for UBS Implementation 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. MOTION: Upon a motion made by Councilmember Benham and a second by Councilmember Rektorik, the City Council voted seven (7) for and none (0) opposed, to hold two public hearings WKSHP082118 Minutes Page 6 on the tax rate of 50.5841 cents per $100 assessed valuation the Maintenance and Operations rate be 28.5502 cents per $100 assessed valuation; and the Debt Service rate be 22.0339 cents per $100 assessed valuation on September 5th at 7:00 p.m. September 13th at 6:00 p.m., and possible adoption of proposed tax rate on September 27th at 6:00 p.m., in the Council Chambers at City Hall. Mayor Mooney recessed the budget workshop at 2:06 p.m. The budget workshop reconvened at 2:28 p.m. and returned to agenda item 4. 6. Adjournment MOTION: There being no further business, Mayor Mooney adjourned the budget workshop of the College Station City Council at 2:59 p.m. on Tuesday, August 21, 2018. ________________________ Karl Mooney, Mayor ATTEST: _______________________ Tanya McNutt, City Secretary Karl Mooney (Sep 14, 2018)