HomeMy WebLinkAbout07/17/2023 - Special Minutes - City CouncilSPM071723 Minutes Page 1
MINUTES OF THE CITY COUNCIL SPECIAL (BUDGET) MEETING
IN-PERSON
CITY OF COLLEGE STATION
JULY 17, 2022
STATE OF TEXAS §
§
COUNTY OF BRAZOS §
Present:
John P. Nichols, Mayor
Council:
Mark Smith
William Wright
Linda Harvell
Elizabeth Cunha
Bob Yancy
Dennis Maloney
City Staff:
Bryan Woods, City Manager
Jeff Capps, Deputy City Manager
Adam Falco, City Attorney
Leslie Whitten, Deputy City Attorney
Tanya Smith, City Secretary
Council attending Funeral for Former Parks Director prior to the call the of the Special (Budget)
Meeting.
1. Call to Order and Announce a Quorum 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 12:00 p.m. on Monday, July 17, 2023, in the
Council Chambers of the City of College Station City Hall, 1101 Texas Avenue, College Station,
Texas 77840.
Majority of the Council concurred not be Broadcast the Special (Budget) Meetings.
2. SPECIAL (BUDGET) ITEMS
2.1. Presentation, discussion, and possible action on the FY 2023-2024 Proposed Budget.
Mary Ellen Leonard, Finance Director, provided a review of the proposed FY23-24 budget and
citywide budget issues. The proposed FY24 budget is $$492,013,771; which in this amount,
$357,068,355 is included for the operations and maintenance budget, and $134,945,416 is included
for the capital budget. Compared to FY23, the operating and maintenance budget increased
approximately 10% while the capital budget increased 54%. A public hearing is to be scheduled for
July 27th, adoption of the budget scheduled for August 24th, and according to the charter, final action
on the proposed budget must take place on or before September 27th.
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Mrs. Leonard 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 FY24 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 Economy
Growth in Population
The city has grown 28.4% between the 2010 and 2020 Censuses.
A&M is increasing the number of freshmen on campus this fall by ~10K – which puts
CS at 76K students.
Students to residents = approx. 60% residents – that will go down with the number of
students being added.
Unemployment Rate
The unemployment rate is expected to be 2.9% which is below the state average of 4.0% and
national average of 3.4%.
Unemployment in CS/B in FY22 was about 3.4% - which makes workers hard to find
Economic Development
The city continues to invest in economic development projects to create more jobs and
stimulate the economy.
FY24 Factors Influencing Service Delivery
Inflation
The cumulative price increase between 2020 and 2024 is 21.03%.
Interest Rates
Federal policy has a significant impact on the availability of capital funding and can reduce
citizens’ buying power.
Labor
Continued marketplace competition for recruiting and retaining a best-in-class workforce.
Regulatory
Both Federal and State legislative changes as well as policy changes at A&M can affect our
service delivery.
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Recession
The risk of a recession can have a negative impact on sales tax collections, a major source of
revenue in the General Fund.
Jeff Kersten, Assistant City Manager, stated that City Council should be aware of these factors and
take proactive steps to mitigate them for our grow ing City. The FY24 Budget is a plan to address the
most pressing factors influencing service delivery.
Addressing Interest Rates & Recession
Monitor Federal Funds Rate for an inverted yield curve.
Continuing to monitor multiple sources of sales tax data analytics for early warning of
recession.
FY25 and FY26 Forecasts prepared assuming lower than average YoY revenue gains to be
conservative.
Addressing Regulatory Changes
Budget includes funding for legislative monitoring in Austin during sessions.
During State legislative session, CMO Implemented a regulatory risk management system to
track, monitor, and analyze proposed legislation and assess their potential impact on the city.
Continue relationships with Texas A&M related to developments at the University that affect
City services.
Addressing Inflation
FY23 Budgets were increased by $6.5 Million to address rising inflation in purchased power,
contractual obligations, and fixed costs.
FY24 Budgets were increased by an additional $6.6 Million to address rising inflation in
purchased power, contractual obligations, and fixed costs.
Vehicles were pre-ordered since FY21 to address supply chain issues. Only long-lead vehicles
are planned to be pre-ordered in FY24.
Addressing Labor
FY23 Original Budget = 1,041.5 - FY23 Revised = 1,038.5 (due to reductions in Electric and Water
Services)
Budget includes strategy to address financial and non-financial compensation to reduce the
labor shortage.
Compensation strategy includes Cost of Living, Merit, Time in Position and Specific Position
adjustments.
Indirect Financial Compensation includes no increase in Healthcare Insurance and continued
plan to fully fund retirement benefits.
Discussion of the General Fund will include:
Revenue Overview
Proposed Property Tax Rate
Expense Requests
Fund Balance & Future Years
Mr. Kersten stated that the General Fund Revenue is the primary governmental fund of the City of
College Station that includes Utility Transfer 14%, Sales Tax 36%, Ad Valorem Taxes 36%, and all
other Revenue is 14%.
Preliminary Taxable Values
Taxable Assessed Value up 19.3%
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BCAD reserve estimate 3.0%
Year over Year category increases
Single Family – 24.3%
Multi Family – 31.0%
Commercial – 21.0%
Average Taxable Residence value increase limited by law to 10%
New Value up 2.35%
Includes $17.5M from Fuji
Tax Rate Calculations
Recommended Tax Rate: No-New Revenue and Voter Approval Rates are Estimated.
Current Rate Change Proposed FY24
Debt Service Fund 21.1441 (0.0000) 21.1441
General Fund 31.3172 (1.0187) 30.2985
Total 52.4613 (1.0187) 51.4426
Estimated No New
Revenue Rate
47.5470 45.7681
Estimated Voter
Approval Rate
(after total increment)
53.7996 51.4893
Jeff Kersten, Assistant City Manager, explained the taxable value within the City is determined by
this county agency as of January 1 of each year. Market conditions and other factors determine that
valuation. For College Station, the Brazos Central Appraisal District (BCAD) provides us with a
preliminary property valuation number in April for property within City limits. The information
provided by BCAD is then used to prepare the FY24 Proposed Budget. Total estimated taxable values
before the freeze adjustment are $14 billion dollars. New value added to the tax rolls as of January 1,
2023 totaled $289,823,206 or 2.3%. The valuations on existing property assessed by BCAD increased
by 20.3%. The net taxable value estimate reflects an increase of approximately 19.3% over values as
of 1/1/2022.
No-New Revenue Rate
Rate to be charged if there was
only new revenue from new
valuations (Floor)
SPM071723 Minutes Page 5
Property Tax Calculation
Mr. Kersten also presented the year over year sales tax changes, which are the Average Sales Tax
Growth YoY is 2.18% (Inflation adjusted = Constant Dollar) and the Budget assumes 2.5% over YEE
in actual dollars.
At 1:50 p.m., the Mayor recessed the Special (Budget) Workshop.
The Special (Budget) Workshop reconvened at 2:03 p.m.
General Fund – Recurring Expenses
Mary Ellen Leonard, Finance Director, gave a summary on turnover rates which is a company replaces
employees over time – negative rates are good, and you are then replacing those employees and filling
any new positions. Vacancy is roles that are either vacated and not filled or have been added and not
filled over time.
Types of Compensation: Non-Financial Compensation, Direct Financial Compensation, and Indirect
Financial Compensation (Benefits)
Monetary Compensation “Buckets”
Public Safety Specific Pay
As in prior years, uniformed public safety employees receive a budget step increase
based on experience and position that equates to approximately 1.5-2% above what
non-step employees receive.
Cost of Living Adjustment
Assuming 6% (scale) increase for both step and non-step employees across the city
Merit Increase
A pool of recurring funds merit increases for non-step employees.
Longevity / Tenure Pay (Time in Position)
A pool of recurring funds for length of time at the City
Specific Position Adjustments
A pool set aside for specific positions needing market compensation adjustments.
General Fund Operating Department
Key General Fund Service Level Requests
Police 28%
Fire 23%
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Public Works 7%
Parks 11%
Planning 5%
Support Services 26%
Police – Total Request of (1.3M) for K-9 Officer, Training: Safety Vehicle, Mental Health Solutions,
Police Officers & Vehicles (COPS Grants).
Fire – Total Request of (270K) for Paramedic Training, which this SLA covers the overtime and
training costs and will assist the department’s EMS Response Time.
Public Works – Total Request of ($734K) for Reaccreditation (APWA), Traffic Calming, Licensed
Irrigation Specialist + Truck, Attenuator Truck, Stolen Sign Replacement Funds and Thermoplastic
Markings (maintenance).
Parks – Total Request of ($721K) for Master Plan, Cameras at 7 Operation Shops, Veterans Park
Cameras, Compact Utility Loader, Turf Field Mower, Debris Blower O7M Cost and Library
Circulation.
Planning – Total Request of ($218K) for Flood Hazard Assessment, Digitizing Historical Files, City-
Initiated Middle Housing, Rezoning Surveying and Advertisement.
General Fund Ancillary Departments
Key General Fund Service Level Requests
Information Technology 30%
CIP / Facilities Operations 17%
Mayor & Council 4%
Economic Development 6%
Human Resources 7%
Finance and Court 21%
City Manager’s Office 7%
Attorney 4%
Community Services 4%
IT - Total Request of ($471K) for Disaster backup and recovery license, 2 Additional Host Servers,
and Aerial Imagery.
CIP / Facilities Operations – Total Request of ($966K) for Facilities Corrective Maintenance, and
Facility Maintenance Technicians w/ Service Trucks.
Mayor & Council – Total Request of ($31K) for Food and Beverages, and Community Sponsorships.
Community Services – Total Request of ($44K) for Community Development Staff Split Funding
with Community Service Administration.
Economic Development – Total Request of ($100K) for USA Track and Field Junior Olympics
Championships (w/ expected revenue).
SPM071723 Minutes Page 7
Human Recourses – Total Request of ($30K) for Employee Recognition / Event Funding.
Mary Ellen Leonard, Finance Director, presented an overview of the Grant Fund, which this city match
on awarded Grants for FY23 is $516K and city match known so far on applied for Grants is FY24 is
$225K.
General Fund Five Year Forecast
Mary Ellen Leonard, Finance Director, explained that total fund balance at the end of FY24 is
anticipated to be $65,822 – divided into 3 sections, which are Assigned ($38K), Required ($22K) and
Unassigned ($6K). At the end of FY24 there will be two GASB pronouncements that will need to be
implemented (Compensation Absences and Cloud Computing) and we have estimated that $8.5 m will
be needed for compensated absences and $1.0M for Cloud Computing
Assigned Fund Balance
SPM071723 Minutes Page 8
3. Adjournment.
There being no further business, Mayor John P. Nichols adjourned the Special (Budget) Meeting of
the City Council at 5:34 p.m. on Monday, July 17, 2022.
________________________
John P. Nichols, Mayor
ATTEST:
___________________________
Tanya Smith, City Secretary