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Home My WebLink About2015BudgetOverview7-14.14REVISED 7.15.14City of ExcellenceCity Manager’s Proposed 2014/15 Annual Budget City Council Workshop July 14, 2014 1 City of Excellence Background & 5 Year Overview 2 City of Excellence - Background Council Direction in 2012 Develop 5 year business plans 3 Council Vision Began in 2012 as staff directive to develop 5-yr tax model Forecast based on 2030 Comprehensive Plan, planning documents & citizen input Council Goal – Georgetown will be…. the PREMIER community in Central Texas Georgetown is the “City of Excellence” 4 City of Excellence Defined by Council as… One that maximizes its citizen’s quality of life Five focus areas Economic Development Signature Destination Public Safety Transportation Utilities Each area has Business plan updated annually Directs the Annual Budget 5 City of Excellence Strategic Goals – what is accomplished annually Become basis for Annual Budget February 8, 2014 - Council defines strategic goals for each Focus Area Adopted April 22, 2014 Directly addressed in 2014/15 proposed budget 6 COE - CY Focus Area Highlights Economic Development Sales tax growth continues to be high Rivery/Sheraton Conference Center agreement completed Created the Georgetown South TIRZ Public Safety 3 Fire & Life Safety Inspectors and Emergency Manager Coordinator in place PSOTC construction underway City of Georgetown 7 COE – CY Focus Area Highlights Signature Destination Arts & Culture Center & Splash Pad – Oct 2013 Downtown Master Plan update completed Playscape completed Westside Park & Garey Park preliminary design and business planning underway Major projects completed by year end: McMaster Athletic Complex, River Ridge Pool, San Gabriel Trail Extension; San Jose Park, Chautauqua Park City of Georgetown 8 COE – CY Focus Area Highlights Transportation 1460 ROW purchase complete – construction to be bid August 1 $2 million in sidewalks including North Austin Ave and Mitchell Elementary school Utilities Wind energy contract signed CTSUD merger in September Enterprise Asset Management system goes live in September City of Georgetown 9 COE – Other CY Highlights Compensation & Benefits Final phase of comp study awarded October 2013 Merit increases awarded in February Public Safety steps fully funded Transitioned to self insurance and kept Aetna! New HR Director and department in place VDI and technology upgrades continue GO intranet site fully operational City of Georgetown 10 City of Excellence - Five Year Plan Develop a fiscally responsible plan with policies to support the Focus Areas while alleviating and reducing future tax impacts Economic Development Signature Destination Public Safety Transportation Utilities 11 City of Excellence – 2019 Nationally recognized as “COE” Continued moderate growth ahead of US Population 51,900 to 67,500 Fire Services area 78,000 to 98,000 Utility customers 28,000 to 42,000 Includes 8,000 new from CTSUD Original Sun City has built out New expansion underway Rivery conference center Open and operating Retail expansion in SE 12 Public Safety - 2019 Community continues to feel “SAFE” Public Safety Operations & Training Center Operational since 2015 Partnership with ESD #8 East Side Fire Station about to open Emergency Warning System in place Well equipped, trained & compensated staff 30 additional fire staff 13 additional police staff 13 Signature Destination - 2019 Downtown Thriving Arts Center New Parking Garage Sidewalks new and expanded with street and light posts Downtown West facilities Phase 1 completed Municipal Court & City Hall relocated Phase 2 underway Winery center Expanded retail mix 14 Signature Destination - 2019 Parks and Recreation Neighborhood parks, pools and playgrounds are well maintained River trails have been expanded West side park construction underway San Gabriel Park updated Festival area downtown underway 15 Utilities - 2019 Increase ROI contribution thru growth & business management Regional leader in water management Incorporated CTSUD Highly competitive power rates Low cost for economic development Environmentally sustainable Water policies and conservation Conservation demo center Drainage Management San Jose area buy outs complete 16 Transportation - 2019 Sidewalks: City-wide walkability expanded Transportation 2015 road bond program underway FM 1460 completed Austin Ave Bridges rebuilt Rivery Blvd extension complete Urban transit operating Traffic system in place Streets well maintained Airport is self sustaining! 17 GOAL: Attain “City of Excellence” at lowest possible tax rate COST GAP: We’ve made progress! 2012/13 - $0.66 to fund COE in 2017 2013/14 - $0.57 to fund COE in 2018 2019 - Property tax rate: $0.51 - As is $0.56 - With $30M road bonds City of Georgetown 18 City Manager’s proposed2014/15 Annual budget Continuing the City of Excellence 19 Proposal - Overview Total Budget = $231.1M 1.8% decrease from prior year 2013/14 amended budget = $235.2M General Fund = $52 Million $49.4 Million in 2013/14 projected Capital Improvements = $40.4 Million $55.2 Million in 2013/14 (amended) Purchased Power = $37.1 Million GUS = $46.9 Million 20 2014/15 Budgeted Revenues 21 2014/15 Budgeted Expenses 22 General Fund Variance 23 Council Strategic Goals Major driver for annual budget All addressed specifically by Focus Area Existing staff & funds used where possible New resources proposed to meet direction Other items funded only as required for: Completion - example: PSOTC operations Growth - example: population & customers Legal - example: MS4 24 City Manager’s Process Focus: Council Strategic Goals Base budgets reviewed Maintaining service levels & requirements considered Collaborative review by Executive Management Team Result – cross-divisional, consensus based proposal to Council 25 Economic Development Business Recruitment/Retention Convert PT Program Manager to Full-Time Business Development Manager - $54,000 Expand marketing and retention - $30,000 Develop plans for Major Gateways Williams Drive – 1st focus Update plan, evaluate study area and look at implementation options - $25,000 26 Economic Development Workforce Training Work with GISD Affordable Housing Develop incentive program Review UDC process Expand planning staff & software - $92,000 Create capacity to improve process 27 Public Safety Maintain competitive pay Evaluate structure, add lateral entry options Public Safety steps fully funded - $114,000 Fire-based Paramedic program 9 new fire fighters, 2 TRV’s - $1.4M Fee based program, self supporting on added costs Best practices & diversity Review fees, hiring strategies, programs City of Georgetown 28 Public Safety Police Crime Deployment Unit 3 new officers and equipment - $448,200 Create 5 officer unit to proactively identify address crime issues Narcotics, violent crime, property crime Best practices & diversity Review fees, hiring strategies, programs Add code enforcement officer PT Volunteer Coordinator Animal Shelter facility planning City of Georgetown 29 Signature Destination Downtown West Plan Develop phased plan to address Court, City Hall & Parking - $1.7M Downtown Master Plan Purchase Grace Heritage lot - $194,000 Signage, ADA repairs, underground electric, tree replacement - $547,000 Downtown ordinances Review and develop improvements City of Georgetown 30 Signature Destination Sidewalks 2nd street & 11th street - $500,000 Coordinated with Street projects Surveys & outreach Historic Resource Survey update - $50,000 Rivery Add coordinator in CVB late in FY - $27,000 Work with private sector on sales & marketing City of Georgetown 31 Signature Destination Future Park Plans Business plans for Westside & Garey parks Coordinate efforts with Wilco & Lake Georgetown Park System Maintenance Williams Drive Pool - $850,000 VFW improvements - $1.3M Ongoing repair and rehab efforts - $52,000 Playground audits, self assessments City of Georgetown 32 Transportation Enhance planning and education efforts Restructure Public Works using existing position - $108,000 Road bond election plan – May 2015 Committee established - $80,000 Street sales tax renewal Public transit Cap Metro partnership continued Next phase implemented $291,400 City of Georgetown 33 Transportation Trolley Coordinate efforts with Cap Metro and new Rivery development Airport Fund grant match for TXDoT required runway improvements Increase in hangar rentals and fuel Restructuring business operations City of Georgetown 34 Utilities Conservation 2 new positions & new programs - $252,800 Expand conservation programs to address water demand Integrate CTSUD Energy Add wind and solar options Marketing and public relations CIS implementation - $4.5M Data analysis - $64,000 35 Cross Cutting Themes HR issues addressed city-wide Organizational development $50,000 Continue to pursue best practices and customer focus Marketing & promoting of Georgetown Add position & continue reporting $74,000 Develop metrics Board & Commission training 36 Additional Support Added Electric & Water staff to meet needs of customer growth Implement IT Master Plan 2 additional support positions to maintain internal services Continue facility maintenance Maintain fleet Implement asset management system Replace 25 vehicles City of Georgetown 37 Employee Compensation& Benefits 38 Salaries & Compensation 2014/15 All Compensation Plan items included Cost of Living Adjustment - $431,000 All departments took reduction to fund this portion! Maintenance (merit) - $229,605 Both effective February 2015 Public Safety Step Increases included Cost for 2014/15 $114,000 City of Georgetown 39 Employee Benefits Health insurance Self insurance program included Results positive to date Jan 1, 2015 will start 2nd year of program 12% premium increase assumed Impacts of Affordable Health Care Act Market increases Same provider - Aetna Goal to have minimal impact to employees 40 TMRS - Update 2013 Unfunded Actuarial Accrued Liability (UAAL) - $17.9 million 2012 $10.6 million UAAL Increase in UAAL due to new valuation methodology 2013 Funded Ratio – 81.3% 2012 – 86.7% Down 6% due to more conservative valuation methodology Policy minimum target is 80% 41 TMRS - Update 2015 Required Contribution - 11.83% 2014 Contribution Rate – 11.91% 2015 Recommended - 12.50% $172,000 city-wide Proposal Use additional contributions to improve funded liability position of retirement program 42 TOTAL 31 FTE Staffing Additions 43 New Employees By Division 44 FTE’s Per Capita Continues lean focus in face of growth 45 Capital Improvement Projects Recap for 2014/15 46 City of Georgetown TO BE UPDATED 47 Utility CIP Highlights Electric substation & communication improvements - $2.4 M Solar Energy - $3.3 M Shell Road Water Line - $1.7 M Rabbit Hill Elevated Storage - $1.7 M Edwards Aquifer Replacements - $2.5M Westinghouse Lift Station - $3M City of Georgetown 48 Transportation CIP Highlights FM 1460 Construction - $4.7M Street Maintenance & Repairs - $2.1M Street Rehab - $900,000 2nd Street, W. 10th, W. 11th, Stadium Dr. Traffic signal Williams Dr & Jim Hogg - $300,000 Smith Branch Buyouts - $2.2M Airport Runway Repairs - $900,000 City of Georgetown 49 City of Georgetown TO BE UPDATED 50 GCP Highlights Parks Williams Drive Pool, VFW Park, Splash Pad Sidewalks 2nd Street, 11th Street, ADA work Downtown Purchase Grace Church parking lot, construct 8th & MLK parking Phase I of Downtown West Still being reviewed by Council City of Georgetown 51 Financial Information Revenues & Resources 52 2014/15 Policy Compliance Fiscal & Budgetary Policy compliance maintained Operating budget balanced with on-going, sustainable funding sources PY fund balances used for 1-time expenses Times coverage ratios maintained Conting ency reserves according to policy 53 2014/15 Contingency Reserves $18.82 million City-wide = 75 days 75 days City-wide operating expenses Increased from $17.7M in 13/14 due to operational increases $7.70 million in General Fund (90 days) $7.5M in 2014 – 2.6% increase Excludes Capital Projects, purchased power costs and interfund transfers/charges 54 Projected 2014/15 Debt Update! Actual bond amount determined at time of issuance. Project timing & any excess funds may reduce bonds issued. 55 The Good News – Growth! Sales tax continues to grow Current Year = 12.7% increase over prior year 5.0% increase included in 2014/15 Property tax values are rising 13.2% preliminary increase in Assessed Valuation Utility revenues continue to grow Growth rates average 3 - 5% 56 Financial Impacts – General Fund Revenues have continued to improve! 5% increase in sales tax for 2014/15 Matches economic forecast Development revenues projected to increase New permits greater than anticipated Property tax revenue as expected Interest rates - continue to be minimal 57 General Fund Revenue Sources *Charges for Services: Interest, franchise fees, development fees, parks & rec fees, muni court fees, and Fire/ESD Contract PRIOR YEAR PROJECTIONS BUDGETED 2014/15 58 59 1-Time General Fund Expenditures Funded with PY ending fund balances Capital maintenance on Streets D&CS Surveys & Updates Fire department new supplies & equipment Expanded home repair program Park maintenance & improvements 60 Financial Impacts – Utility Revenues Electric Revenues Revenues match projected population growth and increases in usage Water Services Revenues Budget increase due to population growth Cautious in case of rain and lower temperatures 5 year rolling average is used in forecast Tap fees / Impact fees Increase due to > development activity 61 2014/15 Utility Rates Water - NO CHANGE Wastewater - NO CHANGE Electric - NO CHANGE Stormwater - NO CHANGE Sanitation - Small – pass thru 62 Outstanding Items Funding for City Secretary Position and Archiving General Fund cost - $90,000 in 2014/15 CTSUD Transaction not complete - Budget impacts not included yet Sanitation increase General Fund revenues & expenses to be adjusted accordingly 63 Outstanding Items - Airport Airport continues to be in the “RED” Business Plan – implement in 2014/15 Self-funded within 4 – 5 years Increase hangar rentals Review fueling services Incorporate customer service/business operations into Customer Care 64 Proposed 2014 Property Tax Rate 65 Property Tax Overview Ad Valorem Taxes (in proportion to value) Based upon value of property Determined by outside agency Williamson Central Appraisal District WCAD determines “market value” City does not determine value of property WCAD does not set the tax rate City’s property tax rate set by Council 66 Property Tax Overview Two Elements of Property Tax Rate Operations and Maintenance (O&M) Funds on-going General Fund operations Public safety, library, social services, parks & streets Interest and Sinking (I&S) Funds payments on debt for general government (not utility related) improvements Tax Rate = O&M rate + I&S rate Calculation: Tax rate x taxable value/$100 = your City tax levy ($ paid to City) 67 Property Tax Overview - Definitions “Effective” Tax Rate “A calculation, based upon new valuations, that gives the City the exact dollars in revenue as generated in the previous year” Typically, when values rise, effective rate is lower Typically, when values lower, effective rate higher City’s Effective Tax Rate Calc impacted by Over 65 Tax Freeze and Abatements If proposed rate higher than effective rate, state law requires special notices to be published 68 Property Tax Overview - Definitions “Rollback” Tax Rate Taxpayers may petition for rollback tax election if City proposes tax increase over the “rollback rate” “Rollback” rate = Sum of 8% increase over the “effective” O&M rate, plus the I&S rate 8% increase in the O&M rate could trigger a rollback election 69 Property Tax Overview - Definitions Truth In Taxation State laws that regulate public hearings & published notices for taxing entities Depending on the proposed rate, various publications and hearings may be required 70 2014/15 Assessed Valuation Tax roles will be certified on July 25th Preliminary Assessed Valuation $5.3B Includes $163M NEW property (new & annexed) 13.2% above prior year 9.2% increased value on existing property 2014/15 Average Home = $221,723 16.2% Increase over PY ($190,802) 71 2014/15 Assessed Valuation $216M in NEW “frozen values” Total frozen = $1.65B 31.1% of total valuation is “frozen” 15% annual increase for 2014 Increased impact of “Abated Property” Citicorp values increases abated 75% 72 Proposed Tax Rate = $0.43500 Funds City Manager’s Proposed Budget $0.00450 NET decrease over prior year $0.43950 Debt decrease = $0.00103 O&M decrease = $0.00347 5.06% above the “effective” tax rate of $0.414038 73 Certified Property Values & Tax Rates PRELIMINARY ASSESSED VALUE $5.3 BILLION Tax Rolls Certified on July 25 74 Assessed Valuation by Type 75 Proposed 2014 Tax Rate = $0.43500 < $0.021 MORE than Effective Rate of $0.414038 Maintenance & Operations 2014/15 = $0.21250 1.61% LESS than PY rate of $0.21597 Interest & Sinking (Debt) 2014/15= $0.22250 0.46% LESS than PY rate of $0.22353 Total debt includes $11.25 cents for voter approved bonds 76 2014 TAX RATE Components 77 Tax Rate Breakdown 78 Tax Rate Comparison Proposed 2014/15 City rate update only, but prior year for all other entities 79 Conclusions & Next Steps 80 Conclusions Budget IS “lean” Funds “needs” not “wants” Council Strategic Goals funded & addressed Resources reallocated where needed Efficiency & Effectiveness reviews continue Financial reserves funded per policy 75 days = $18.82M Financial policy compliance maintained 81 Conclusions Tax rate is lower than last year Remains among lowest in area Service levels maintained & expanded Growth and legal requirements addressed Maintenance issues addressed Streets, parks and sidewalks Employee compensation addressed Merit and cost of living included 82 Next Steps Tax Rate Public Hearings August 12 – 1st Public Hearing August 19 – 2nd Public Hearing Budget Adoption August 26 – Regular Meeting Public Hearing 2014/15 Annual Budget 1st Reading Tax & Budget Ordinances September 9 – Regular Meeting 2nd Reading Tax & Budget Ordinances All GTEC/GEDCO budget items 83 SUMMARY… the Proposed 2014/15 Annual Budget…. Meets needs & expectations of our citizens and is the… Next Step in the “City of Excellence” 84 QUESTIONS? 85