HomeMy WebLinkAboutMIN 07.14.2008 CC-SThe City Council of the City of Georgetown, Texas, met in Special Session on the
above date with Mayor George Garver presiding.
Council Present: Council Absent.
Patty Eason, Gabe Sansing, Keith Brainard, Bill All Council Present
Sattler, Pat Berryman, Dale Ross, Ben Oliver
Staff Present:
Paul Brandenburg, City Manager; Tom Yantis, Assistant City Manager; Jim Briggs, Assistant City
Manager for Utility Operations; Patricia E. Carls, City Attorney; Sandra D. Lee, City Secretary; Micki
Rundell, Director of Finance and Administration; Leticia Zavala, Controller;
Mayor Garver called the meeting to order at 4:03 p.m.
A. Overview, discussion, and possible action regarding the 2008109 City Manager's Proposed Budget -- Micki
Rundell, Director of Finance and Administration and Paul Brandenburg, City Manager
Mayor Garver noted that Council is elected to set policy for the City. He said the ultimate policy that is
incorporated each year into the budget is derived by careful consideration of the information provided by the
staff. He noted that the City is fortunate to have staff that spends a lot of time refining the numbers, and making
informed recommendations that may be accepted, rejected, or modified by the Council. He thanked staff for
their leadership, patience, and understanding. He said City Manager Brandenburg would "walk" the Council
through the documents, allowing time for Council to ask questions for clarification.
Brandenburg said the recommended budget is the culmination of an 11 -month process that begins with the
Capital Improvement Program (CIP). He said the Georgetown Utility System Board reviews the CIP, and
surveys are put out to the residents for input on policy and direction, along with priority sessions with Council.
He told Council the biggest and most important policy decision they will make is the annual budget.
He noted last week the Council was given a budget workbook, saying there is also a "red -line" notebook
containing further line -item detail that is available to Council at any time.
With a slide presentation, Brandenburg began his overview of the $200.5 million proposed budget, saying it is
the first time the budget has exceeded $200 million, being a 7.9% increase over the prior year at $185.58
million. He said there is $39.8 million in capital projects which is a decrease from the prior year because the
roll -forward projects are not included. He demonstrated pie charts to show the Budgeted Revenue, Budgeted
Expenses and General Fund Revenue Sources. Sansing confirmed that sanitation has now been added to the
General Fund.
Brandenburg said there are 19 proposed new positions for the General Fund -- 9 for community services,
specifically for operating the addition to the recreation center; 1 for community development; 6 for fire services
(funded by the Emergency Service District (ESD), and 3 for the Streets Department (funded by utilities). He said
there will be 1 position, a full-time contract specialist, from the Joint Service Fund; 10 positions from the Electric
Fund, and 2 positions from the Water Fund.
There were questions from the Council.
City Council Meeting Minutes/July 14, 2008
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(funded by the Emergency Service District (ESD), and 3 for the Streets Department (funded by utilities). He said
there will be 1 position, a full-time contract specialist, from the Joint Service Fund; 10 positions from the Electric
Fund, and 2 positions from the Water Fund.
There were questions from the Council.
Brandenburg reviewed the priorities determined by the Council in March of 2008, and noted several "rolled
forward" priorities, such as Public Safety Compensation equaling 95% of Round Rock's compensation for police
and fire; the mandated inventory of the stormwater drainage system; renegotiating/investigating the electric
power contract; expanding the water Certificate of Convenience and Necessity (CCN); implementing services
agreements with Jonah Special Utility District and Chisholm Trail Special Utility District to bill for mutual water
customers; Master Plan implementation for the Williams Drive Gateway redevelopment; GISD right of way
purchase planned for 2009/10; continued wayfinding and gateway signage program; continued support of the
Main Street Facade and Sign Grant Programs; and increased customer education on recycling and composting
programs.
There were questions from the Council.
Brandenburg listed the following new 2008/09 Programs: Mandated program for industrial pretreatment;
development of a strategy for acquisition of traffic lights; implementation of a traffic management program;
update of the Overall Transportation Plan; identification of areas for commercial and employment centers;
promotion of neighborhood cleanups; and exploration of options for downtown retail developments and retailers.
There were questions and comments from the Council.
Rundell gave a financial overview. She assured Council that all funds are within fiscal and budgetary policy.
She said the amount of the contingency reserves is $14.5 million city-wide, saying the overall budget increased
by 7.9% over the prior year, listing multiple factors for the increase, such as increased fuel costs, increases in
healthcare costs, public safety compensation at 95% of Round Rock, and TMRS retirement.
She said the budget includes a 4% COLA for non-public safety, saying the employees will need to fund more of
the costs for their healthcare. She said it is proposed to increase public safety compensation to equal 95% of
the Round Rock pay scale, which increases fire by 12% and police by 8%, for total funding of $732,000. She
explained the TMRS Funding, saying it is currently at 11.3% of the payroll, with a total that equals an increase of
$8231000, $530,000 in the General Fund. There were questions and comments from the Council.
She said the good news is the estimated property tax for 2008/09, saying the taxable value for 2008 is $4.2
billion, an overall increase in appraised valuation of 11%. She explained the effective tax rate estimated at
$0.35348. She said the adopted 2007 tax rate is $0.35659. She said the proposed tax rate is $0.35631,
including $0.029 sales tax for property tax relief. She estimated the average increase to the homeowner for
$150,000 value (after exemptions) was $534.89, and this year will be $550.49. She emphasized that those
whose tax rates are frozen will not see an increase in their tax payment.
She explained the proposed sales tax projections, saying even some tax revenue from catalog sales will come
to the City, projected to be a little less than $7.76 million, and predicted a 3.5% overall net increase from
2007/08.
She said there are no rate increases planned for water and sewer rates, and the electric rates were
reviewed/adjusted in Fall 2007, saying the only change will be a power costs pass-thru from LCRA. She said
there is no increase in base garbage rates but there will be a fuel factor to be passed on to the users, beginning
in September, due to increases in fuel prices. There were questions and comments from the Council. She said
there will be no increase in stormwater drainage this year, but will probably need to do a rate adjustment next
year.
She said there will be recreation -related program fee adjustments and implementation of development fees
planned for October 2008.
Brandenburg explained the Capital Improvement Program (GIP), reminding Council there had been a workshop
in May to review the CIP. He explained the totals to be spent on CIP projects: $13.8 million on water services;
$8.4 million on electric projects; $2.1 million on street maintenance; $2.1 million on drainage improvements; and
$13.3 million on general projects and equipment. He listed the specific General Capital Projects as remodel of
the new police/municipal court facility; remodel at the Georgetown Municipal Complex; expansion of Fire Station
#2; and upgrade or replacement of self-contained breathing apparatus to meet NFPA compliance. There were
questions and comments from Council.
City Council Meeting Minutes/July 14, 2008
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Rundell gave a review of the projected 2008/09 debt for a projected total of $24,880,000, saying all of it will
probably not be issued, depending on conditions such as weather and delays in construction. There were
questions from the Council.
Brandenburg explained the budget adoption process, saying much of it is required by law, such as truth in
taxation, special dating requirements and public hearings.
Motion by Eason, second by Ross to bring the CARTS Operated Transit back into the budget. She said she
was the Chair of the Task Force and had majority support of the Council for several years. She said
transportation has always been a priority and the CARTS Operated Transit was seen as a response to gridlock
and traffic.
Brainard asked about the procedure to be used. He suggested that Council provide their "wishes" and see how
they add up compared to Brandenburg's suggestions. Brandenburg explained that this budget is balanced to
avoid a tax rate increase and suggested if the CARTS Program is put back in, other items would need to be
removed. Berryman suggested the City go to the private organizations to see if they will contribute to the transit
system to keep the cost down for the City. Brandenburg said the other entities have already been asked to
participate, but the amounts offered were not large enough to assist with the funding. Polasek said the intent
was to get as much contribution as possible and then budget the remainder. Sattler suggested doing the transit
system on a trial basis. He suggested picking the Sun City route to downtown to see if any of the downtown
merchants would be interested in funding to bring people downtown to shop. There were further comments and
questions from the Council.
Polasek noted that once the City reaches 50,000 population, it would be allowed to participate in funding, but
because the City is not a member of Capital Metro, it would have to be negotiated. Brandenburg said he has
been involved in the development of the transit system since it's inception, but the City can't afford it without a
tax increase. He suggested that Council work on a plan to phase it in over several years. Sansing suggested a
trial for 90 days, for all routes, to see which ones are used and whether to keep the system. It was determined
that CARTS now has two buses that could possibly be used. Motion by Sattler, second by Sansing to do a trial
run for three months using a CARTS bus and start with two routes with the terminus point downtown; and work
with the Downtown Georgetown Association to see if they would supply money and see if the people would pay
to get to downtown, between now and Christmas. Eason said that route doesn't deal with routes for where
people really need to go, such as hospitals and medical centers. Sansing said to add another route to the
hospital and caring place, etc.
Oliver said he would vote against this test, because the consultant said the ridership would not be good at first.
He suggested staff come back with a proposed route. Eason said she would withdraw her original motion and
said she wants the item of public transit put back into the budget, asking staff to come back with a dollar
amount. Brandenburg suggested this issue needs a business plan, but Dave Marsh of CARTS is out of town, so
staff could not bring it back in tomorrow night's budget meeting. Berryman said she would prefer to see a logical
business pian and a way to approach this as a partnership with the businesses that will benefit. Brandenburg
said money in the existing budget could be used to develop a business plan.
Mayor asked if Council wants to come back tomorrow night to continue this discussion. Oliver suggested that
Council focus their attention in the time remaining to suggest adding or removing items. He said staff has
prepared a fine document overall. Berryman said Council has entrusted the staff with Council's direction, and
staff has come back with what it would take to prepare a budget. Motion by Ross, second by Sansing to accept
the City Manager's budget as submitted. Eason said she thinks this budget needs more discussion. Sansing
said he thinks the transit issue can be geared up without using this year's budget. Oliver said if Ross's motion
doesn't pass he would make a subsequent motion to direct staff to go back and look at public transportation and
find a way to phase it in. Brandenburg said he would like to find out tonight any further items on which Council
wants further information to be brought back. Ross withdrew his motion. Motion by Berryman, second by
Eason for staff to go back and examine this transit issue for implementaiton of a smaller trial and explore the
need for private as well as public participation. Brainard said he has confirmation from Rundell that a slight
decrease in the TMRS expense would save the City some funds. Rundell was asked to bring back new figures.
Sattler noted that he had questions about the Executive Summary. Vote on the motion: 7-0. Sattler said he
could visit with Micki and Paul regarding the linkages to the 2030 Plan.
Mayor confirmed that there is no indication that Council wishes to meet again tomorrow night. Brandenburg
thanked the staff.
City Council Meeting Minutes/July 14, 2008
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The meeting was adjourned at 06:44 PMI
me
ayor George Garver City Secretary Sandra Lee
City Council Meeting Minutes/July 14, 2008
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