HomeMy WebLinkAbout07/15/2024 - Special Minutes - City CouncilMINUTES OF THE CITY COUNCIL SPECIAL (BUDGET) MEETING
IN -PERSON
CITY OF COLLEGE STATION
JULY 15, 2024
STATE OF TEXAS
COUNTY OF BRAZOS
Present:
John P. Nichols, Mayor
Council:
Mark Smith
William Wright
Linda Harvell
Elizabeth Cunha
Bob Yancy
Dennis Maloney
Citv Staff:
Bryan Woods, City Manager
Jeff Capps, Deputy City Manager
Adam Falco, City Attorney
Leslie Whitten, Deputy City Attorney
Tanya Smith, City Secretary
1. Call to Order and Announce a Ouorum is Present.
With a quorum present, the Special (Budget) Meeting of the College Station City Council was called
to order by Mayor John P. Nichols via In -Person at 11:00 a.m. on Monday, July 15, 2024, in the
Council Chambers of the City of College Station City Hall, 1101 Texas Avenue, College Station,
Texas 77840.
2. SPECIAL (BUDGET) ITEMS
2.1. Presentation, discussion, and possible action on the FY 2024-2025 Proposed Budget.
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.
SPM071524 Minutes Page 1
Outside Agencies vs. Snonsorshin
0UTSIDE AGENCIES
• Provide services City doesn't
offer
• Legally required to support
• Limited OIaM support provided
• Quarterly financial reporting
required
• City has "seat at the table" via
Council or Staff
OUTSIDE AGENCY FUNDING
SPONSORSHIPS
• Community Events
• Funding supports a sense of
place valued in College Station
• City Manager or Council driven
• No additional involvement from
City other than the event
Requests from the General Fund amounted for the following:
Agencies with No Requested Increase:
• Amber Alert Network Brazos Valley ($5,000)
• Arts Council Marketing / Public Art Support ($35,000)
• Brazos County Health District ($478,029)
• BV Economic Development Corporation ($350,000)
• B/CS Chamber of Commerce ($25,000)
• Noon Lions Club ($17,500)
Agencies with Requested Increase:
• Aggieland Humane Society ($276,000)
✓ $27,600 increase for Sheltering Fees, which includes the Standards of Care in Animal
Shelters, Kennel Supplies and Salaries.
• Brazos County Appraisal District ($859,858)
✓ 6% increase for personnel services, in the efforts to continue to be competitive with salaries
and benefits, they have included a 2.5% cost of living increase as well a 4.5% merit pool,
as well as supplies and administrative expenses.
HOTEL TAX FUND AGENCY FUNDING
Agencies with No Requested Increase:
• Veterans Memorial ($30,000)
Agencies with Requested Increase:
• Arts Council Affiliate Funding ($617,048)
✓ $396,000 — Affiliate Pass -through Sub -granting: These funds will 100% pass through
to affiliate arts and culture organizations who apply for grants through the Arts Council
Bryan/College Station Annual Program & Marketing Grant.
✓ $16,500 — Art Council's affiliate marketing: New category of marketing to allow the
Arts Council a place to advertise those affiliates who receive grant funds together to
gain longer stays for visitors. This will let visitors know of the many art and cultural
activities they see and partake in during their stay here. Please see pages 11-12 for the
plans for these funds.
✓ $86,936 — Arts Council O&M: These funds will partially support marketing and grant
management staff salaries, tourism marketing interns, and operating expenses for
galleries and grant software.
SPM071524 Minutes Page 2
✓ $48,400 — Arts Tourism Marketing: These funds will be used for marketing and
advertising the Brazos Valley and College Station as an arts destination to out of market
travelers. Please see pages 11-12 for the plans for these funds.
✓ $69,212 — Public Art: These funds will be used for repairs and maintenance needed to
preserve current public art to continue growing mural projects by partnering with city
individuals and businesses and starting a one-year studio Artist in Residence program.
✓ $13,500 — Arts Council O&M: These funds will be used for partial support for audit
expenses, copier lease and office supplies, and a programs intern.
✓ $25,000 — Local Arts Marketing: These funds will be used for local marketing and
advertising for the Arts Council's events and programs. Please see page 12 for the plans
for these funds.
SOLID WASTE FUND (No request for increase)
• Keep Brazos Beautiful / Solid Waste Fund ($48,230)
COMMUNITY DEVELOPMENT FUND
• Unlimited ($97,500)
✓ New Request of funding to cover all direct program expenses mentioned above, ensuring
the effective delivery of essential services to youth aging out of foster care.
• Salvation Army (500,000)
✓ New Request for Funding that can be made over a 5-year pledge and be used for the
construction of the new Center of Hope.
• Brazos Transit District ($334,000)
✓ New Request from BTD to the City of College Station, the City of Bryan, and Brazos
County for help in offering financial support of our community's public transportation
system to avoid a reduction in service.
At 12:18 p.m., the Mayor recessed the Special (Budget) Workshop.
The Special (Budget) Workshop reconvened at 12:51 p.m.
Jeff Kersten, Assistant City Manager, presented the proposed FY 2024-2025 budget and noted that
budget workshop meetings are scheduled for July 15th, 16th, and 17th to review the proposed budget
of $540,511,673. In this amount, $366,160,031 is included for the operations and maintenance budget,
and $174,351,642 is included for the capital budget. Compared to FY24, the operating and
maintenance budget increased approximately 2.5% while the capital budget increased 29%. A public
hearing is to be scheduled for July 25th, and adoption of the budget scheduled for August 22nd.
Fund Type
Governmental Funds
Enterprise Funds
Special Revenue Funds
Capital Expenses
Subtotal OEW
Subtotal Capital
atal Net Budge
Proposed Net Budget
$ 151,754,058
186,207,217
28,198,756
$ 366,160,031
174,351,642
$ 174,351,642
540,511,673
SPM071524 Minutes Page 3
Mr. Kersten explained that College Station is expected to have a growing population, a low
unemployment rate, and increased economic development, making it an attractive place to live and
work. Also, Inflation is a key factor in determining the FY25 Budget and failure to attract and retain
top talent is predicted to be the number two risk in North America three years from now, aging
workforce.
Local Economv
Growth in Population
• The city has grown 80% between the 2000 and 2020 Censuses.
✓ A&M Enrollment on the College Station campus for Fall 2023 was —77,000 with a
potential enrollment of 80,000 soon.
Community Living Demands
• Ensuring an adequate water supply, reliable utilities and mobility infrastructure while
supporting community activities and minimizing taxes are all pressing needs.
Mr. Kersten stated that the General Fund Revenue is the primary governmental fund of the City of
College Station that includes Utility Transfer 13%, Sales Tax 34%, Ad Valorem Taxes 35%, and all
other Revenue is 18%.
Preliminary Taxable Values
• Net Taxable Value up 7.14%
✓ BCAD reserve estimate 3.0%
• Year over Year category increases
✓ Single Family — 8.92%
✓ Multi Family — 6.72%
✓ Commercial — 0.03%
• Average Taxable Residence value went from $360,783 to $397,125 or an increase of 11.46%
• However, the taxable increase on a homesteaded residence is limited bylaw to 10%
✓ New Value contributed 2.04%
Tax Rate Calculations
Property Values Allowable rate is Amount is set to Combines M&t0 Rate,
from Last year get adjusted for: meet principal Debt Rate and any
adjusted for 3.5% cap and interest unused increment.
continued hearings Reduced for payments due
etc. at BCAD Sales tax % that fiscal year.
Recommended Tax Rate: No -New Revenue and Voter Approval Rates are Estimated.
SPM071524 Minutes Page 4
Current Rate
Change
Estimated FY25
Debt Service Fund
21,1442
(0.0000)
21.1442
General Fund
30.1644
(0.0000)
30.1644
Total
51.3086
(0.0000)
51.3086
Estimated No New
45.5159
50.0202
Revenue Rate
Estimated Voter
51.3086
52.4914
Approval Rate
(after total increment)
Mr. Kersten also presented the year over year sales tax changes, which are the average sales tax growth
in the region, the fiscal and budgetary policy statement revisions, and fee ordinance, which are rates
ties to the CPI-U - index 3.5%. Mr. Kersten also provided an overview on the future Tax Rate
considerations for upcoming years:
• The FY26 future -year forecast reflects 5 additional police officers.
• Twelve firefighters will be added to the budget via a Budget Amendment during FY25 with
costs showing up in FY26.
• General Fund assigned balance has $3.5 million to use to fund staffing for Fire Station #7
• Cost for an additional 12 firefighters to appear FY27.
• Public Safety employees cost approximately $130,000 a piece a year.
• One cent on the tax rate provides $1.1 million
• To fully staff Fire Station #7 and the planned additional police resources, additional revenue
above the projections at the current tax rate will be required.
In Balance (Out of
Balance) 3,708 440 (2,930) (4,670) (3,980) (3,640) (2,620)
Jeff Kersten, Assistant City Manager, explained the water rate decision points, which is 90% of
College Station water users use under 8,000 gallons and are charged the minimum of $2.75. For
FY25, the budget is proposing a 10.0% increase in water rates to address the capital needs to secure
future water supplies. The anticipate additional rate increases will be needed for the water utility to
fund the new wells, water collection lines and well rehabilitation projects needed to secure our current
and future water supply.
Electric (Usage + Service Charge)
Electric (TDA)
Water
Drainage
Sanitation
Roadway
Sewer
Bill
101.71
101.71
0.00
13.32
13.38
0.07
26.15
28.77
2.62
7.11
7.36
0.25
19.59
20.27
0.69
9.68
10.02
0.34
27.08
27.08
0.00
SPM071524 Minutes Page 5
Mr. Kersten explained that there are no planned Electric rate increases for the foreseeable future at
this time. Wastewater may need a 3-5% rate increase in FY29, but there are a lot of variables prior to
the decision point and sanitation rates will be brought to Council later when the cost -of -service study
is completed. As for other fees on the utility bill are tied to the CPI-U index and increase annually.
ARPA Fund Sources / Uses
Revenue Replacement (PD Salaries FY22) 516,140,725
One -Time Premium Pay FY22 603,213
Rehire of Government Staff Pre -Pandemic 3,784,255 -
SUBTOTAL $20, 528,193
'Projected through Sept. 2024
Bee Creek Trunkline Phase 3 $6,950,133
McCullouch Utility Rehab 2,000,000
SUBTOTAL $8,950,133
i
he expected completion of these
ojects is Dec. 2025
GENERAL FUND — STAFFING DISCUSSION
Bryan Woods, City Manager, gave a summary on City of College Station Budgeted vs. Actual
Workforce.
• Living close to large metropolitan areas such as Houston and Austin have become a double-
edged sword.
• With minimal commute, staff initially hired by our city are being recruited by other cities with
the possibility of earning higher wages.
• Average vacancy across the city is —9.0% for FY24
• Vacancy rate has hovered around 10% since FY22.
• Capital Projects, Economic Development, Human Resources, IT, Planning, Utility Customer
Service and Water Operations all have vacancy rates exceeding 10%.
Mr. Woods explained that 72% of General Fund expenses are related to salaries and benefits. As the
population grows the number of full-time people to provide the same service grows, salary and benefit
cost to add an employee is—100,000, and salary, benefit and basic equipment cost to add a public
safety employee is—130,000. There is also FTE additions for overtime that consist of operations staff
and support staff. In FY20-24 the city added 64 operations staff and 5 support staff and for FY25
there are proposes for 18 more operations staff and 5 more support staff, including 12 firefighters to
be added via a budget amendment during FY25. Mr. Woods briefly provided an overview on the Pay
Strategy to Compete in the Local Marketplace, Pay Strategy to Compete in the Local Marketplace,
and the Employee related Insurance Funds.
Pay Strategy to Compete in the Local Marketplace
• At their May 2024 meeting, The Texas A&M University System Board of Regents announced
a performance -based merit pool of 4.0%.
• The City's proposed FY25 pay scales increases of 3.0% for all employees and a 1.0% market
adjustment or 1.5% - 2.0% step increase as earned.
SPM071524 Minutes Page 6
• Merit pay for the top 25% of non -step employees
• The City is also considering experimenting with non -monetary compensation such as variable
work schedules, wellness benefits and reimbursements, and more.
Benefits Strategy to Compete in the Local Marketplace
• In FY19, the city chose not to increase the cost of healthcare insurance to employees
• Since FY19, the cost of healthcare has gone up 10.05% on average.
• This is the 5th year without an increase in healthcare cost to employees
• The result of NOT increasing the cost of insurance to the employee is an additional benefit of
about 1.3% to employees annually.
• Adopting the new repeating COLA option. provides an additional benefit to employees who
end up qualifying for City retirement.
Employee Related Insurance Funds
• Net claims (claims paid minus medical and pharmacy credits received) are projected to
increase 8% above the FY24 year-end estimate.
• The Employee Health Clinic provides acute and preventive primary care, occupational
medicine, workers' compensation care, and wellness services.
• The City's Employee Clinic moved to Baylor Scott & White effective July 1, 2024.
At 2:54 p.m., the Mayor recessed the Special (Budget) Workshop.
The Special (Budget) Workshop reconvened at 3:07 p.m.
General Fund Operating Department
Key General Fund Service Level Requests
• Police • Solid Waste
• Fire • Drainage w/ Capital Projects
• Public Works w/ Street Capital Projects • Planning
• Fleet • Parks w/Capital Projects
The City Manager's provided a brief overview of general fund operating departments request for
funding.
Police — Total Request of (906K) for K9 Sergeant, Support Services Police Assistant, Inventory
Control Software, Dispatch AQUA Licenses, PLS Dispatch PRO, and 2 Police Officers & 1 Vehicle.
Fire — Total Request of (154K) for HAAS Alert - Increase Responder Safety and Electric Vehicle Fire
Blankets. Twelve firefighters will be added to the budget via a Budget Amendment during FY25 with
costs showing up in FY26 ($1.5M).
Public Works — Total Request of ($795K) for Traffic Signs & Markings Technician, Thermoplastic
Pavement Markings (maintenance increase), Streets - 16 Yard Dump Truck, Streets - Small Pad Foot
Roller and Traffic Calming.
Kev Street Capital Projects
SPM071524 Minutes Page 7
VARIOUS STREETS REHAB PROJECTS
3,650,000
ROCK PRAIRIE RD REHAB • WD FITCH TO CITY LIMITS
2,450,000
STREETS REVOLVER
5,000,000
CAPSTONE REALIGNMENT
5,000,000
GREENS PRAIRIE RD - COUNTY PORTION
4,900,000
ROCK PRAIRIE RD EAST - TOWN LAKE TO W.D. FITCH
3,000,000
CITYWIDE SIDEWALK/PATH IMPROVEMENTS
5,000,000
SIGNAL AND OTHER STREET PROJECTS
439,500
DEBT ISSUANCE COST / OTHER
638,794
Fleet - Total Request of ($225K) for Afterhours preventative maintenance program (2 Technicians)
and PTNB Warehouse Asst. to FT.
Solid Waste — Total Request of (1.2M) for Residential Automated Vehicle + FTE and Bulk & Brush
Grapple Vehicle - Spare
Drainage -Total Request for (1.1M) for Drainage Infrastructure Condition Assessment Crew Leader
+ Equipment Operator, Boom Mower, Drainage maintenance increase, Flood Study and LOMR, and
Flood Hazard Assessment.
MINOR DRAINAGE IMPROVEMENTS 200,000
CULVERT @ MILLIFF/REDMOND 1,400,000
IMPR @ UNIVERSITY OAKS 0. STALLINGS 001' -
SOUTHWOOD DRAINAGE IMPROVEMENTS 750,000
Planninli — Total Request of ($232K) for 2010 BPG Master Plan Update, Preliminary Engineering
Report, Survey Control Monument Update and Residential Tree Planting Program.
Parks — Total Request of ($424K) for Wolf Pen Master Plan / Feasibility Study, Turf Fertilizer
Sprayer/Spreader, Turf Aerator Replacements (x2), Park Ranger O & M Funds, Compact Utility
Loader, Volunteer and Communitv En2a2ement Coordinator, and Concrete Planer.
TEXAS INDEPENDENCE PARK DEVELOPMENT 5,000,000
CITY BASEBALL FIELDS 5,200,000
MABLE CLARE THOMAS PARK INFRASTRUCTURE IMP. mr� 650,000
PARKS CITYWIDE REVOLVING PROJECT 2,500,000
CENTRAL PARK OPERATIONS SHOP & FIELD REPAIRS 450,000
DEBT ISSUANCE COST / OTHER 230,297
General Fund Ancillary Departments
Kev General Fund Service Level Requests
• Information Technology
• CIP / Facilities Operations w/ Capital Projects
IT - Total Request of ($39K) for Fiber reel trailer replacement and Outside training, travel, and
uniform increase.
SPM071524 Minutes Page 8
CIP / Facilities Operations — Total Request of ($180K) for Facilities Asset Manager.
EXISTING FACILITIES RENOVATIONS
5,000,000
CITY GATEWAY SIGN #3
150,000
PUBLIC WORKS FACILITIES DESIGN
5,000,000
NEW CITYWIDE FIBER
1,100,000
CITYWIDE RADIO REPLACEMENTS
5,500,000
DEBT ISSUANCE COSTS / OTHER
203,895
GENERAL OBLIGATION BONDS
CERTIFICATES OF OBLIGATION
3. Adiournment.
MF
7,500,000 $ 6,000,000
7,600,000 $ 1,000,000
There being no further business, Mayor John P. Nichols adjourned the Special (Budget) Meeting of
the City Council at 6:04 p.m. on Monday, July 15, 2024.
Jo P. Nichols, Mayor
ATTE T:
Tanya Smith, City Secretary
SPM071524 Minutes Page 9