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Home My WebLink About07/29/2020 - Special Minutes - City CouncilWKSHP072920 Minutes Page 1 MINUTES OF THE CITY COUNCIL WORKSHOP VIA TELECONFERENCE CITY OF COLLEGE STATION JULY 29, 2020 STATE OF TEXAS § § COUNTY OF BRAZOS § Present: Karl Mooney, Mayor Council: Bob Brick John Crompton Linda Harvell John Nichols Dennis Maloney City Staff: Jeff Capps, Interim City Manager Jeff Kersten, Assistant City Manager 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 via Teleconference at 1:07 p.m. on Wednesday, July 29, 2020 in the Administrative Conference Room of the City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77840. 2. Special (Budget) Agenda 2.1 Presentation, possible action, and discussion on the FY 2020-2021 Proposed Budget. Jeff Kersten, Assistant City Manager, continued their review of the proposed FY20-21 budget in the General Fund and Outside Agency Requests. HOTEL TAX FUND AGENCY FUNDING WKSHP072920 Minutes Page 2 The HOT Revenue has been budgeted 73% below the FY20 budgeted revenue.  FY20 projected to be ($2.6M) below budget or (44%)  FY 21 forecasted to be down another ($1.7M) or (52%)  Revenue was up 6% pre-COVID-19  $113,595 in deferments to date revenue reduction not anticipated to pick up until FY23. HOT Funded City Departments:  Experience Bryan College Station brought in-house as new Tourism Department in August 2020  TAMU Preferred Access Payment anticipated to be higher for FY20 and FY21.  Administration is HOT Tax collection for Hotels and Short Term Rentals Natalie Ruiz, Economic Development Director, state that the overall goal is to incorporate tourism with our economic development efforts, consolidate and streamline all of our current sales and recruitment efforts for industry, retail and visitors. In order to accomplish that we need to finalize the separation from EBCS (currently underway), establish a city framework & plan for sales, servicing, marketing and key partnerships and then implement that framework. Mrs. Ruiz explained that in terms of timeline, we’re estimating that by February we will be ready to begin implementing that framework. The FY20 EBCS was budgeted in the amount of $3,351,800 and the FY21 COCS function is estimated in the amount of $3,320,000. HOT Capital Projects:  Design is progressing for the Texas Independence Ballpark at Midtown  Construction has been delayed until at least FY23  Elimination of Veteran’s Park Phase II Veteran’s Park and the new Southeast Park have each been partially funded by the use of this special revenue.  Assigned Fund balance:  $5,155,010 - Southeast Park Construction  $175,000 - Southeast Park Equipment and staff  $5,000,000 - Veteran’s Park Phase II – defunded to allow for City Tourism Department HOT Revenue is being budgeted worst case at 73% below FY20 budgeted revenue  City tourism department budget is $2.2M - 12% increase  Grant program budgeted at $1.1M – 64% increase Agencies - Eliminated:  Easterwood Airport Advertising Agencies with 10% Decreases:  Arts Council Affiliate Funding – 10% decrease  B.CS Chamber of Commerce – 10% decrease  Veterans Memorial – 10% decrease WKSHP072920 Minutes Page 3 Agencies Requesting Increases:  Health District  Amount Requested $434,572  Increase = 10% increase from FY20 budgeted level Agencies with 5% Reduction from FY20:  Aggieland Humane  Amount Requested $248,520  Art’s Council – General Fund  Amount Requested $33,250  BVEDC  Amount Requested $332,500  Lions Club  Amount Requested $16,625  Appraisal District  Amount Requested $415,193  Keep Brazos Beautiful (Solid Waste)  Amount Requested 5% decrease OUTSIDE AGENCY FUNDING Jeff Kersten, Assistant City Manager, provided a brief overview of the outside agency funding requests. Requests from General Fund amounted to $1,585,119 for: Agencies with No Requested Increase:  Arts Council ($35,000)  BV Economic Development Corporation ($350,000)  Keep Brazos Beautiful ($25,000)  Aggieland Humane Society ($261,600) 4.2% decrease Agencies Requesting Increases:  Noon Lions Club  Amount Requested $17,500  Increase = $2,500 or 17%  Future growth = 0%  Brazos County Appraisal District  Amount Requested $461,447  Increase = $78,027 or 20.4%  Future growth = 8%  Brazos County Health District  Amount Requested $434,572 - Health Board recommended a 10.0% increase  Amount Proposed $408,892 or 3.5% increase  Future growth = 10% WKSHP072920 Minutes Page 4 2.2. Presentation, possible action and discussion on the 2020-2021 ad valorem tax rate; and calling a public hearing on a proposed ad valorem tax rate for FY 2020-2021. Jeff Kersten, Assistant City Manager, gave a brief overview of the discussion on the tax rate. He stated we already discussed that the city is unlikely to have new revenue, the slowdown of development, existing property values appear to be decreasing, and the impact that COVID-19 is having on the valuation and sales tax. Staff recommended we hold the same tax rate; each cent on the tax rate generates approximately $800,000 and the average increase in single family home valuations from 2019 to 2020 is 1.09%. Mr. Kersten explained that due to not having any updated information from the tax office and appraisal district, we will need to bring back the discussion of calling a public hearing at a special meeting. 3. Adjournment MOTION: There being no further business, Mayor Mooney adjourned the budget workshop of the College Station City Council at 2:43 p.m. on Wednesday, July 29, 2020. ________________________ Karl Mooney, Mayor ATTEST: _______________________ Tanya Smith, City Secretary