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HomeMy WebLinkAbout07/19/2022 - Special Minutes - City Council MINUTES OF THE CITY COUNCIL SPECIAL (BUDGET) MEETING IN-PERSON WITH TELECONFERENCE PARTICIPATION CITY OF COLLEGE STATION JULY 19, 2022 STATE OF TEXAS § § COUNTY OF BRAZOS § Present: Karl Mooney, Mayor Council: Bob Brick via remote John Crompton via remote Linda Harvell Elizabeth Cunha John Nichols Dennis Maloney City Staff: Bryan Woods, City Manager Jeff Capps, Deputy City Manager Adam Falco, Interim City Attorney Tanya Smith, City Secretary Ian Whittenton, Deputy City Secretary 1. Council Lunch. 2. Call to Order and Announce a Quorum is Present. (12:00 p.m.) With a quorum present, the Special (Budget) Meeting of the College Station City Council was called to order by Mayor Mooney via In-Person and Teleconference at 12:03 p.m. on Tuesday, July 19, 2022, in the Council Chambers of the City of College Station City Hall, 1101 Texas Avenue, College Station, Texas 77840. 2. Executive Session No Executive Session was held. 3. Reconvene from Executive Session and take action, if any. No Executive Session was held. 4. Pledge of Allegiance, Invocation, consider absence request. 5. SPECIAL (BUDGET) ITEMS 5.1. Presentation, discussion, and possible action on the FY 2022-2023 Proposed Budget. TQN182:33!Njovuft!Qbhf!2! Mary Ellen Leonard, Finance Director, provided a brief overview of the outside agency funding requests and the amount of funding received by each agency depends on Council direction and the availability of funds. Agencies are funded by the General Fund, Community Development Fund, Hotel Tax Fund, and Solid Waste Fund. Contract Partners have been identified based on their economic impact and the community services provided to the City. The Contract Partner agencies are Brazos Valley Economic Development Corporation (BVEDC) and Arts Council of the Brazos Valley (ACBV). Department Budget Agencies are agencies whose work directly supports the goals of a City Department. OUTSIDE AGENCY FUNDING Requests from the General Fund amounted for the following: Agencies with No Requested Increase: Arts Council ($35,000) BV Economic Development Corporation ($350,000) Keep Brazos Beautiful / Solid Waste Fund ($46,730) Noon Lions Club ($16,500) Brazos County Health District ($350,000) Amber Alert Network Brazos Valley ($5,000) Agencies with Requested Increase: Aggieland Humane Society ($276,000) $14,400 increase to cover increase in property repairs and maintenance. Brazos County Appraisal District ($576,000) $75,801 increase . HOTEL TAX FUND AGENCY FUNDING Agencies with No Requested Increase: B/CS Chamber of Commerce ($25,000) Veterans Memorial ($30,000) TQN182:33!Njovuft!Qbhf!3! Arts Council Marketing / Public Art Support ($35,500) Arts Council Operations and Maintenance / New Facility ($98,200) Agencies with Requested Increase: Arts Council Affiliate Funding ($375,300) Hotel Tax funded affiliate funding and operations and maintenance $46,000 to assist in the rebuilding of the local arts and return to full programming and grant distribution. United Way request funding of $10,000 to provide rides to citizens for doctor appointments and other appointments they cannot make because of expense and no transportation. At 1:23 p.m., the Mayor recessed the Special (Budget) Workshop. The Special (Budget) Workshop reconvened at 1:35 p.m Mrs. Leonard opened up an overview and discussion regarding the Utility funds. Utility Funds ENTERPRISE Electric Fund: Response to Winter Storm URI cost of $48,343,000 Due to reduced fund balance post Winter Storm Uri and more increases in Purchase Power costs, the City is not budgeting an FY23 Electric Risk Mitigation Fund transfer. Cost per meter absorbed by the city $1,120 Power Supply Replacement Cost = $13,665,000 Ancillary Costs = $34,678,000 The are future Legislative changes. o ERCOT rules are subject to change by Governor and / or TX Legislature. Natural gas price. o Raw Material used by plants is at an all-time high. Material / Labor Inflation. o Transformer o Specialized equipment o Labor shortages Jeff Capps, Deputy City Manager, provided an overview of the SLAs for Electric. Service Level Adjustments ($620,500) Vacuum Truck for Transmission and Distribution Dump Trailer Vehicle for Relays (Equinox equivalent) Funding Source Residential 49.09% Other Revenue 4.51% Fines and Penalties 1.02% Transmission Delivery Adjustment 12.20% Commercial 33.18% Future Years TQN182:33!Njovuft!Qbhf!4! Forecast developed in 2022 future years are subject to change based on the facts and circumstances at the time of analysis. The forecast currently does not include any rate changed beyond the proposed FY23 increase but the forecast does include potential TDA adjustments based on expected transmission costs. Water / Wastewater Capital : Water Services ($471,000) Service Truck - Water Production Emergency Fuel Trailer Pipe Cutting Equipment Backhoe with Breaker Attachment Environmental Compliance Coordinator LCWWTP Screenings and Grit Annual Hauling Solid Waste ($820,400) Residential Rear-loader Truck + Crew Solid Waste Supervisor & Truck Annual replacement of 2 roll-off containers Adopt A Street Supplies - Solid Waste At 3:13 p.m., the Mayor recessed the Special (Budget) Workshop. The Special (Budget) Workshop reconvened at 3:25 p.m. Jeff Kersten, Assistant City Manager, provided an overview of the Roadway Maintenance Fee Fund and noted that the full summary is in the proposed FY22-23 proposed budget. Roadway Maintenance Drainage SLA ($68,000) Slope Mower Drainage Utility Projects The City funds drainage projects via drainage revenue paid by residential and commercial customers for FY23, drainage capital appropriations total $1,266,500 for the following projects: Minor drainage improvements that cover unscheduled/emergency projects Replacement of the culvert at John Milliff Road and Redmond Drive and associated creek bank stabilization Replacement of the storm drain and culvert end treatments at University Oaks and Stallings FY23 Rate Recommendations - with the increase in inflation, fees and other revenues must go up to cover costs. Certain fees have been tied to the CPI-U in the fee resolution and the CPI-U increase thru May 2022 is 10%. Rates Tied to CPI: Solid Waste, Roadway Maintenance and Drainage. Other Adjustments: Electric Rates will increase 10%. Rate increases are NOT proposed for Water or Wastewater Services. Impact of Rate Increases on Monthly Bill TQN182:33!Njovuft!Qbhf!5! Residential Multi-Multi-Family Residential (w/Rate Difference Family (w/ Rate Difference Current Increase) Current Increase) Electric (usage + svc chg.) $93.10 $101.71 $8.61 $93.10 $101.71 $8.61 Electric (PDA) 11.17 13.25 2.07 11.17 13.25 2.07 Water 26.15 26.15 - - - - Drainage 6.10 6.71 0.61 2.80 3.08 0.28 Sanitation 16.80 18.48 1.68 7.80 8.58 0.78 Roadway 8.30 9.13 0.83 6.50 7.15 0.65 Sewer 25.55 25.55 0 27.09 27.09 0 AVERAGE BILL $187.18 $200.98 $13.81 $148.47 $160.86 $12.40 Jennifer Prochaska, Assistant City Manager provided a brief overview of the Northgate Parking and Community Development. Other Enterprise / Grant Funds Northgate Parking ($177,900) Northgate Surface Parking Lot Management System High-visibility Crosswalk Markings Channelizing Intersection at Wellborn and Church Northgate District Coordinator/Code Enforcement Officer Community Development Community Development Analyst HOT Tax Funds Jeff Kersten, Assistant City Manager, stated that this tax allows the city to collect up to its current tax rate of 7% on rental income of hotels and motels within the city limits. In accordance with Chapter 351 of the Tax Code, expenditures from this fund must directly enhance and promote tourism and the hotel industry in the City. Additions to the FY23 budget are from the Tourism Division and include an increase of three FTEs and parttime non-benefitted staff to help administer large events. There are also increases to help service sports and Christmas events in the city. In FY22, the city reexamined KPIs that are historically collected and began the process of assuring that they could be more succinctly focused on priorities TQN182:33!Njovuft!Qbhf!6! Tourism $683,900) Economic Development and Tourism Staff Assistant Tourism PTNB Staff Convention Sales Coordinator Sports Servicing Sports Sales Coordinator Servicing Commitments for Tourism Events Christmas in College Station HOT Fund Five Year Forecast . Fee Resolution Mary Ellen Leonard, Finance Director, gave a brief overview of the proposed changes to the Ordinance & Policy will enable the City to achieve a long-term stable and positive financial condition. prudent stewardship, planning, TQN182:33!Njovuft!Qbhf!7! accountability, and full disclosure. The more specific purpose is to provide guidelines regarding the -to-day financial affairs and in developing recommendations to the City Manager and City Council. Ordinance Revision to Part 4 to exercise, approve, and execute all contract renewals options subject to sufficient budgeted funds. o Purpose to minimize supply chain issues for renewals by reducing authorization time Fiscal and Budgetary Policy Statements. 2.8 Contingent Appropriation wording clarification that contingency within a fund is an accounting item. o Purpose clarify policy related to accounting journal entry. 3.8 Utility General Fund Transfers still under review. 17.1 Operating Reserves / Fund Balances General Fund increase the General Fund reserve percentage from 18% to 20%. o Purpose increase the reserve percentage for financial sustainability. Mrs. Leonard explained the services associated with a user fee or charge, the direct and indirect costs of that service will be offset by a fee where possible. There will be a review of fees and charges no less than once every three years to ensure that fees provide adequate coverage of costs of services. Full fee support (80100%) will be obtained from enterprise operations such as utilities, solid waste service, landfill, cemetery, and licenses and permits. Partial fee support I (5080%) will be generated by charges for emergency medical services, m Partial fee support II (20%50%) will be generated by charges for youth programs and activities. Minimum fee support (020%) will be obtained from other parks, recreational and cultural programs and activities. Fees below are adjusted annually based upon the Consumer Price Index published by the U.S. Department of Labor, Bureau of Labor Statistics. Index adjustments cannot fall below zero. The CPI- U increase thru May 2022 is 10%. Rates tied to CPI Licenses and Permits; Solid Waste; Roadway Maintenance; and Drainage Full Fee Support Manuel Adjustment Electric Rates will increase 10%; Garage fees to go up comparable to A&M Garages; and Cemetery & Parks fees increased to cover costs. Parks and Recreation Cost Recovery Continuum Mrs. Leonard explained that user prices are determined by establishing the aggregate cost associated with each service or program. These categories are reviewed every 35 years by City Management. The actual cost recovery is recorded each fiscal year as staff considers necessary adjustments and establishes performance benchmarks. Financial barriers will be addressed thru scholarships, work programs and financial assistance Minimum Cost Recovery 0% to 25% (i.e. Playgrounds, Parks, Greenways and Trails) LowCost Recovery 26% to 50% (i.e. Youth Based Programs and Services) MediumCost Recovery 51% to 75% (i.e. Adult based Programs and Services) TQN182:33!Njovuft!Qbhf!8! HighCost Recovery 76% to 100% (Enterprise Operations, cemetery, License/Permits) Closing Bryan Woods, City Manager, reviewed the direction Council provided as follows: Include a list of sponsorships in the budget Provide Council with a presentation on Electric, Water, and Wastewater supply Provide Council with a history of the Street Maintenance fund Various forms of public education about utility bills Provide Council with the cost of Rental Registration Budget Book will include Hotel Occupancy Tax and add Short Term Rentals Solid Waste Fees/ trash cans will stay the same Provide Council with information on interactive features at Veterans Park Memorial Trail Provide Council with a report on litter in Wolf Pen Creek Park. Provide Council with a report on the feasibility of city services using electric vehicles Revise language for Parks Department fees (pages 21 and 27 of proposed budget) Bird Blind funding in the amount of $150,000 Possible options for rehabilitation of Shady Drive 6. Adjournment. There being no further business, Mayor Mooney adjourned the Special (Budget) Meeting of the City Council at 5:37 p.m. on Tuesday, July 19, 2022. ________________________ Karl Mooney, Mayor ATTEST: ___________________________ Tanya Smith, City Secretary TQN182:33!Njovuft!Qbhf!9!