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Home My WebLink About02/18/2025 - Special Minutes - City CouncilMINUTES OF THE CITY COUNCIL SPECIAL MEETING (RETREAT) CITY OF COLLEGE STATION FEBRUARY 18, 2025 STATE OF TEXAS COUNTY OF BRAZOS Present: John Nichols, Mayor Council: Mark Smith William Wright David White Melissa Mcllhaney Bob Yancy Scott Shafer § § § City Staff: Bryan Woods, City Manager Jeff Capps, Deputy City Manager Jeff Kersten, Assistant City Manager Jennifer Prochazka, Assistant City Manager Michael Ostrowski, Chief Development Officer Adam Falco, City Attorney Leslie Whitten, Deputy City Attorney Tanya Smith, City Secretary 1. Call to Order and Announce a Quorum is Present. With a quorum present, the meeting of the College Station City Council was called to order by Mayor Nichols at 9:00 a.m. on Tuesday, February 18, 2025, in the Training Room, 800 Krenek Tap Rd, College Station, TX 77840. 2. SPECIAL ITEMS 2.1. Presentation, discussion and possible action regarding strategic planning. Bryan Woods, City Manager, provided a brief overview of what will be discussed over the next two days: Strategic, Operational and Tactical. FY26 Budget overview and Financial forecast FY26 Early Forecast (Things we do know) • Revenues — • Sales tax through January (November Sales) equals FY25 Budget. • Currently assuming a 2.0% increase for FY26. • Utility transfers to remain unchanged. CCM 021825 Minutes Page 1 • Interest income should be significant again as the Fed rates remain higher than pandemic levels. • Expenses — • Fixed Costs and Contractual Obligation adjustments resulted in $200K of savings • 12 Firefighters for Fire Station #7, funded by SAFER at 100% for 3 years, will begin in FY25 • 12 Firefighters for Fire Station #7, funded by SAFER at pre -pandemic levels for 3 years, beginning in FY26 • 12 additional Police Officers have been added in FY26 • Step increases for Public Safety. • COLA increase for non -step staff with 25% of staff eligible for merit pay. • No employee increase for healthcare premiums needed. FY26 Early Forecast (Things we don't know) • Revenue — • Property Tax valuations. • Recommended property tax rate. • Federal Grant funding and other changes. • State Legislature funding and other changes. • Expenses — • Direction from Council from the Strategic Retreat. • Target Budget adjustment savings of - $500K after departmental reviews. • Department Service Level Adjustment requests (one-time and recurring). • Adjustments needed to address vacancy rates significantly over the target rate of 3%. • Capital Projects updated timing • Hotel Tax and other Special Revenue Funds • Utility rate changes (metered and CPI-U) FY 26 Early Forecast (Balancing of Five -Year Forecast) • We evaluate the impact of any assumption changes or service level changes over a five-year period. • 1 cent on the tax rate is estimated to generate approximately $1.2 million in recurring revenue FY26 Forecast FY27 Forecast FY28 Forecast FY29 Forecast FY30 Forecast FY31 Forecast TOTAL REVENUES TOTAL RECUR EXP: Inc/(Dec) to FB - Recurring: (2,500) (2,630) (1,490) (1,870) (520) 420 $121,040 $124,190 $127,500 $129,460 $132,910 $136,820 $123,540 $126,820 $128,990 $131,330 $133,430 $136,400 FY26 Early Fund Balance (General Fund Available Fund Balance) CCM 021825 Minutes Page 2 BEGINNINGTOTAL FUND BALANCE $85,840 Assigned Balances Reserves 31,410 Future Rec or Convention Center 11,600 Eco Dev Project or Incentives 6,600 Federal Uncertainty 5,000 Grant matching 1,750 Vehicles 1,500 State or Council Requests / Elections 770 Total Assigned Fund Balance 58,630 ENDING UNASSIGNED FUND BALANCE $27,210 FY26 Canital Plan • WHAT WE KNOW — • — $9.7 million of real estate gains currently saved in Capital Funds for business park infrastructure • Funding has outpaced construction, resulting in unspent balances in capital funds. • FY25 Funding plan was to issue —$86 million for both Governmental Debt and Utility Obligations • FY25 Debt Capacity was —$15 million for each of the 5 years from FY26 to FY31 • 1 cent on the tax rate is estimated to fund a $17 million project in General Government (streets, facilities, parks) • WHAT WE DON'T KNOW — • Timing and amount of issuance for FY25, could range from just water / wastewater of —$30 million to total FY25 plan. • Can possibly call early $4.0 million of FY13 GO debt • Projected spending timelines for existing capital projects. • State Legislature impact on issuance of CO's. FY26 Timeline by Month • Jan -Mar: Personnel, Fixed Costs, Contractual Obligations, Target Budget preparation • Develop the Early Forecast for specific areas/funds. • Adjust positions, benefits, and vacancies. • Analyze trends, update projections. • Apr -Jun: Analysis, consolidation, and assumption finalization • Reviews by CMO and Budget Congress to finalize allocations • Evaluate property tax valuation and tax rate impacts • Workshop Presentation materials & analysis • Jul -Aug: Council Review & Approval • Based on legal deadlines. • City Manager Budget Presentation to Council as required by charter. CCM 021825 Minutes Page 3 • Council Review and Input provided (Budget Workshops). • Public Hearings & Community Input. • Council Budget & Tax Rate Adoption. • Sep -Dec: Final Document generation & preparation • Final Edits & Distribution • Year -End Review: Fund balances & audit support • Planning for Next Year: Process improvements & Way Too Early Forecast Council asked questions of the department directors regarding items of interest on programs, processes, opportunities and challenges. • Capital Projects Operations Mayor Nichols recessed the meeting at 12:15 p.m. The meeting resumed at 12:39 p.m. Council continued with questions they have for department directors regarding items of interest on programs, processes, opportunities and challenges. • Economic/Tourism • Water Services • Electric Services • Community Services 3. Future Agenda Items and Review of Standing List of Council Generated Future Agenda Items. No future items at this time. 4. Adjournment. There being no further business, Mayor Nichols adjourned the Meeting of the City Council at 2:40 p.m. on Tuesday, February 18, 2025. Tanya Smith, City Secretary CCM 021825 Minutes e vk.ke__ Jog P. Nichols, Mayor Page 4