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Overview
Overview Table of Contents
Transmittal Letter from the City Manager.................................................................................................i
Priority Goals and Strategies Division Responsibility.................................................................ii
Budget Overview.......................................................................................................................iii
Property Taxes/Property Values/Utility Rates...........................................................................iv
Sales and Use Taxes.................................................................................................................v
Budget Highlights......................................................................................................................vi
Capital Projects........................................................................................................................vii
Financial Highlights................................................................................................................. viii
Conclusion..................................................................................................................................x
October 1, 2005
To the Honorable Mayor Nelon, Members of the City Council and Citizens of Georgetown:
We are pleased to present to you the adopted Annual Operating Plan Element (Operating Plan) of the Georgetown
Century Plan for 2005/06. The Georgetown Century Plan is the comprehensive strategic plan by which
Georgetown strives to enhance its quality of life. The Operating Plan is an outline of the programs and services to
be provided by the City during the coming year. The Operating Plan continues the direction established by our
citizens and the City Council to meet the existing challenges and effectively plan for future needs. It is also an
opportunity to ensure energies and resources are directed to the programs, policies and issues that are shaped by
the Georgetown Century Plan and prioritized by the City Council.
The City’s budget process begins each year with the Capital Improvements Program (CIP) planning process. CIP
budgets are prepared on five and ten year planning horizons, based upon population and development projections.
Revenue estimates for utility operations, as well as development impact fees, are prepared to forecast the ability of
the rate base to fund needed capital maintenance, upgrades and expansions. Five year and ten year pro-forma
models for each utility are prepared, as well as ten year general fund models, which are prepared to determine the
impact of general infrastructure and facilities improvements on future property tax rates.
Each City department prepares a two-year operating budget. While only one year is formally adopted, the
projection of the second year (2006/07 projected budget) is presented to identify the impact of current year
programs and commitments on future budgets, and provides a “basis” for beginning the following year’s budget
process.
The City Council began its 2005/06 budget process by reviewing results and trends from the bi-annual citizen
surveys from 2004 and 2001. The success of previous programs and projects implemented over the past five years
were measured and priorities from the 2004/05 budget were reviewed. Managing growth issues and enhancing
economic development for on-going fiscal health of the City were the primary focus for the Council priorities. Staff
developed programs for each of the priorities and estimated costs for implementation of the programs. The City
Manager and staff then used the City’s fiscal and budgetary policy (included in the reference section) to prepare a
budget proposal that balanced the cost of providing new programs with an acceptable revenue scenario.
Budget Process for 2005/2006 Annual Operating PlanOctober 1, 2005 CIP Proces s Begi n s Fin a nci a l mo del s u p d ated Coun c il P r iori t ie s D e t e r min e d B as e Bu d g et P r o c e ss Be g i n s C I P P r e s e ntation to Coun c il Mi d -Year Review Divis i on Work Sess io ns A do p t Up d ate d F i n a n c i a l Po li c y City Manager's Budget Prepared Co u nc il Work Sessi o ns P ub li c Worksho p s /H e ari n g s B ud g e t Ad o p t i o n September 30, 2006
Oct Nov Dec Jan Mar April May June SeptAugJuly
ii
Many of the priorities from 2004/05 carried forward to the 2005/06 budget year as on-going priorities. The fifteen
2005/06 Council priorities, along with staff-developed strategies to address the goals are shown below. A more in-
depth description of the strategies is located in the budget highlights section of this letter.
CITY DIVISION RESPONSBILITY FOR IMPLEMENTATION
2005/06 COUNCIL PRIORITY GOALS & STRATEGIES Co mm u n it y D e v Community Svcs F ina n c e & Admin F ir e GUS Mg t Sv cs Police
2005/06 COUNCIL PRIORITY GOALS & STRATEGIES
1 Continue revitalization and economic development
*Implement Master Plan for Williams Drive Gateway redevelopment √√√ √
2 Continue maintenance of Overall Transportation Plan (OTP)
*Activate Transportation Advisory Board to identify funding opportunities for
transportation needs √√√ √
3 Continue implementation of Downtown Master Plan
*Implement historic abatement program √√ √
*Expand underground electric system conversion in Downtown √
*Complete Downtown Regional Water Quality Plan by constructing second
pond.√
*Expand wayfinding signage program √
4 Improve quality of services while keeping property taxes low
*Prepare specifications for an updated Customer Information System to
continue to provide excellent customer service to our utility customers √√ √
5 Continue funding for economic development/industrial recruitment
*Access funds generated by 4A sales tax for economic development through
creation of corporation bylaws √√
6 Improve emergency response levels
*Fund 11 new public safety positions in Fire & Police √√ √
*Purchase hydraulic rescue tool set √
*Purchase hike and bike trail access vehicle √
7 Alleviate immediate traffic congestion
*Develop plan to assume responsibility for signalization of traffic lights within
City, with expected implementation in 2007 √
*Assume maintenance responsibility for Austin Avenue from TxDot √
8 Expand sewer maintenance program to include Edwards Aquifer
*Implement Year 3 testing and Year 2 repairs of wastewater system through
capital maintenance program √
9 Expand and coordinate Parks system
*Complete Master Plan for Garey Park √
*Complete design for expansion of the Recreation Center √√
*Expand and renovate the Community Center in San Gabriel Park √√
*Continue playground replacement program in City parks √
10 Update City's comprehensive plan (Century Plan)
*Hire a consultant to coordinate the update process √
*Develop conservation subdivision ordinances √√
*Develop and implement voluntary and involuntary annexation plan √ √√√√√
11 Develop an Affordable Housing Program
*Implement Affordable Housing Task Force recommendations √
*Fund fee waivers for Habitat for Humanity project √√
12 Expand City's Record Management program
*Implement laser fiche program to other areas of the City as outlined in city-
wide records management plan √√
*Implement digital archiving for existing as-built utility plans √√ √
13 Expand recycling opportunities and environmental programs
*Construct transfer station that will offer additional recycling opportunities √
*Create a downtown recycling center √
*Pilot a hybrid vehicle program √
14 Ensure adequate staffing and competitive compensation for all employees
*Review staffing levels for non-public safety departments √√√ √√
*Review compensation and benefits for non-public safety employees √√√ √√
15 Implement Airport Master Plan
*Develop funding plan to implement Plan upon final approval √√
iii
2005/06 Budget by Type of Expense
Personnel
18%
Operations
48%
Capital Projects
26%
Debt Service
8%
BUDGET OVERVIEW
The 2005/06 Annual Operating Plan (Budget) is an operational and financial plan for the programs and services
provided by the City during the coming year. The proposed
$131.8 million budget includes funding for all services,
including utilities, as well as capital improvements for the
upcoming year. Of that amount, approximately $70.8 million is
for continued operations, $10.6 million for debt payments and
$33.9 million for capital improvement projects. Operating
interfund charges/transfers, which include internal service fund
transfers, are approximately $16.5 million. The 2005/06
Operating Plan is approximately 8% more than the 2004/05
budget.
Overall, on-going operating costs increased as a result of new
programs to address Council priorities, increased purchased
power costs and other fixed operational expenses.
• Georgetown Utility Systems – 8% increase is due to maintenance and contracted expenses that increase
in relation to customer growth. Six positions will also be added in 2005/06 to accommodate increased
demands for service.
• Community Development – 17% increase is due to contracted expenses for building inspections, as well
as for one-time programs for the update of City aerial photography and the update of the Comprehensive
Plan.
• Fire Services – 12% increase due to increased staffing and compensation for public safety needs. Five
positions are added, according to the staffing plan approved last year. 2005/06 is year 2 of 3 year plan.
• Management Services – 16% increase for programs for employee market adjustments, retirement and
insurance increases, as well as for increased social service contract funding.
• Community Services – the net budget decreases due to the completion of one-time projects in 2004/05
for San Gabriel Park, other capital related projects. These costs offset increases in the budget for a new
maintenance worker and urban forester.
• Police Services – 16% increase due to increased staffing and compensation for public safety needs. Six
positions are added, according to the staffing plan approved last year. 2005/06 is year 2 of 3 year plan.
• Finance and Administration – An adjustment to reduce the budget for one-time capital replacement costs
in 2004/05 offsets a small increase in operational costs for 2005/06, causing the budget to be relatively the
same as prior year.
• Capital Improvements – the increase
relates to the timing of projects in both
fiscal years. Major projects for 2006
include the construction of the new public
library, as well as an electric substation.
• Debt Payments – increased due to the
issuance of debt for the 2005 Certificates
of Obligation, as well as voter approved
General Obligation Bonds for the new
Library, and other projects. Debt Service
for GTEC, which has debt issued through
the City, also flows through the City’s
budget. GTEC debt increased for bonds
related to Wolf Ranch improvements.
• Interfund Charges – these amounts
vary from year to year due to project
funding and source of funds.
Total Budget per Capita
$2,613 $2,752 $2,556 $2,449 $2,679 $2,900
$3,193
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2000 2001 2002 2003 2004 *2005 *2006
*Projected
iv
Assessed Property Valuation
in billions
1,427
1,629
1,939
2,116
2,247
2,319
2,643
0
250
500
750
1,000
1,250
1,500
1,750
2,000
2,250
2,500
2,750
99/00 00/01 01/02 02/03 03/04 04/05 05/06
Existing Property New Property
Sales Tax per Capita
$152$147
$124$116
$105$101
$114
$-
$20
$40
$60
$80
$100
$120
$140
$160
2001 2002 2003 2004 *2005 *2006 *2007
*Projected
Property Taxes. The City Council adopted a property
tax rate of $0.34626 per $100 valuation, which is a
10.5% increase over the adjusted effective tax rate. The
effective property tax rate (the rate needed to collect the
same amount of revenue as last year based upon the
current year valuations) is $0.34103 which is 1.5% less
than last year’s adopted rate of $0.34626. Last May’s
adoption of 1/8 cent sales tax for property tax relief,
results in a $0.0277 decrease in the effective rate,
thereby lowering the adjusted effective rate to $0.31326.
The rollback rate, or the highest rate allowable without
risking a rollback election is $0.35914, also adjusted for
the sales tax relief. The property tax relief revenue is
used to offset the additional debt service associated with
voter approved general obligation debt for expanded facilities. Even with this tax rate increase, Georgetown
continues to have the lowest municipal tax rate in the Central Texas area.
Property Values. The assessed property valuation for
2005/06 is $2.64 billion, which is a 9% overall increase
over last year’s adjusted value of $2.4 billion. Of this
increase, $136 million is new and annexed property.
Existing property values increased 3.3% over last year.
The average home value for 2005/06 increased from
$163,751 in 2004/05 to $166,458 for 2005/06, a 1.7%
increase over prior year.
Utility Rates. The City has reviewed rates for 2005/06
and determined that water and wastewater rates are
sufficient to fund the costs of the system. The City will be
reviewing the cost of providing wastewater service to
customers who have wastewater service only and develop
a fixed rate for these customers. Potential increases in
Edwards Aquifer Recharge Zone environmental mandates,
capital needs and increased operational costs may require
a rate adjustment in 2006/07. A detailed review and plan will be discussed further in 2005/06.
Impact fees were reviewed by the advisory committee in the summer of 2005. The water impact fee increased from
$2,295 to $3,324 and the wastewater fee increased from $1,869 to $1,881. A defined area wastewater impact fee
was also created for the South Fork service area for $3,114.
Electric rates are currently sufficient to fund the cost of operating and maintaining the system. Future fuel related
increases and/or decrease will be adjusted through the Power Cost Adjustment (PCA) element of the rate.
Sanitation rates and Stormwater rates will remain the same as the current year. The construction of the transfer
station, in partnership with TDS, should help stabilize sanitation rates into the future.
Sales Taxes. In 2005, the City experienced an increase in
sales taxes on average of 14% over the previous fiscal year.
This increase is a result of a healthy building supply market in
the area, as well as the continued build out of the Rivery Town
Crossing. The Wolf Ranch shopping area, a Simon property
that includes Target, Old Navy and Kohl’s, opened earlier than
anticipated in July 2005. Historically, sales tax fluctuations
mirror economic conditions. Base line sales tax (without Wolf
Ranch) is expected to increase approximately 1%, with an
additional $600,000 budgeted for the full year of Wolf Ranch
operations. This projection is 65% of the developer’s estimation
of sales tax revenues, and provides a conservative estimate for
spending. This projection is the net amount of sales tax, after
the City’s payment of a sales tax rebate to Simon from the
general 1% sales tax revenue generated within the development.
Combined Sales & Property Taxes
Property Tax
Sales Tax
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
1996 1997 1998 *1999 2000 2001 2002 2003 2004 **2005 **2006
v
Sales tax now funds approximately 26% of the General Fund operating budget, yet sales tax revenue is the most
volatile revenue stream within the General Fund. Therefore, the City monitors this revenue stream closely for any
potential shortfalls that could impact the General Fund cash flow. The City budgets a contingency reserve of 90
days of general fund operations, to provide stability should sales tax revenues fall short and has adopted a budget
contingency plan as part of its Fiscal and Budgetary Policy.
Additional Sales and Use Taxes
In May 2001, voters authorized the adoption of an additional sales and use tax within the City at the rate of one-half
of one percent, with the proceeds thereof to be used for transportation system improvements to support economic
development. This tax became effective October 1, 2001. The additional revenue is not part of the City’s general
operating budget, but is budgeted and spent by a non-profit economic development corporation, Georgetown
Transportation Enhancement Corporation. GTEC was established expressly for the above purpose by the City
Council. GTEC’s activities are included in the City’s audited financial statements as a blended component unit.
In November 2002, voters authorized the adoption of an
additional sales and use tax within the City at the rate of one
quarter of one percent, with the proceeds thereof to be used
for maintenance of streets in existence at the time of the
adoption of the tax. This revenue is included in the City’s
operating budget in a Special Revenue Fund. This tax has a
four year sunset provision, and will be presented to the voters
again in November 2006 for renewal.
In May 2005, voters authorized the adoption of an additional
sales and use tax within the City at the rate of one eighth of
one percent, with the proceeds to be used to promote and
develop new and expanded business enterprise on behalf of
the City of Georgetown and becomes effective October 1, 2005. This additional revenue is not part of the City’s
operating budget, and will be budgeted and spent by a non-profit economic development corporation, Georgetown
Economic Development Corporation (GEDCO). This corporation was established by the City Council to oversee
this revenue. Activities will be included in the City’s audited financial statements as a discretely presented
component unit.
In May 2005, voters authorized the adoption of an additional sales and use tax within the City at the rate of one
eighth of one percent, with the proceeds to be used for property tax relief. This tax becomes effective October 1,
2005 and is used in the City’s 2005/06 property tax calculation. Revenue from this sales tax is included in the
City’s general operating budget.
BUDGET HIGHLIGHTS
The major program initiatives, linked to the Council’s priorities (paraphrased in bold italics) for the 2005/06 Annual
Operating Plan are outlined as follows:
• Community Development
The update of the Century Plan, Georgetown’s comprehensive plan, will be coordinated by the division during
the upcoming year. Community involvement, as well development of conservation subdivision ordinances, will
be included in this process. The division will also work on voluntary and involuntary annexation plans, as
directed by Council. The update of aerial photography will enhance the City’s Geographic Information Systems
database. The division will also work with Georgetown Utility Systems (GUS) to continue maintenance of the
Overall Transportation Plan by updating the traffic model, as well as providing support to the newly created
Transportation Advisory Board.
Sales Tax per Capita (1%)
$93.41
$89.99
$94.72
$108.28
$112.55
$113.63
$100.77
$105.44
$116.01
$124.13
$130.77 $16.38
$- $25 $50 $75 $100 $125 $150
19 9 6
199 7
19 9 8
19 9 9
2000
2001
2002
2003
2004
*2005
*2006
Wolf Ranch
vi
Employees Per 1,000 Population
20.59
17.42 16.39 15.83
13.77 13.47
12.20 11.84 11.50 10.92
10.12
0
5
10
15
20
25
1996 1997 1998 1999 2000 2001 2002 2003 2004 *2005 *2006
*Projected
• Community Services
This division will continue to expand and coordinate the parks system by preparing a master plan for Garey
Park, a 500 acre river-fronting parcel west of the City that is being donated to the City by Jack and Cammy
Garey. This master plan will provide the basis for making the changes necessary for the park to be useful to
citizens, while maintaining as much of the natural green space as possible. The Gareys will also donate $5
million upon their death towards making improvements. This amount will be matched by the City. Construction
for the expansion of the Community Center in San Gabriel Park, as well as design of the expansion of the
Recreation Center, both bond funded projects approved by the voters in November 2004 are also scheduled for
completion this year. Playground equipment, purchase of trail maintenance and field maintenance equipment
are also included in this budget.
• Finance and Administration
This division will assist other divisions for implementation of the Downtown Master Plan by preparing a
historic abatement program. Expansion of recycling opportunities and environmental programs will also
be accomplished through the creation of a downtown recycling center and construction of a refuse transfer
station. The Utility Office will also pilot a hybrid vehicle program for meter reading and other customer service
activities. Finance, Accounting and the Utility Office will coordinate with GUS to prepare specifications for a
Customer Information System to continue to improve quality of service. The division will provide support to
the new Georgetown Economic Development Corporation (GEDCO), which will administer the City’s 1/8 cent
4A sales tax, which was adopted in May 2005, to provide continued funding for economic development and
recruitment. The Facilities Maintenance Department will coordinate construction of the new public library,
expansion of the recreation center and construction of a new fire station during the upcoming year.
• Fire Services
Improving emergency response levels will continue to be the focus for Fire during 2005/06. The
coordination of an interlocal agreement to provide services within the new Emergency Services District (ESD)
will assist in funding for fire improvements. A new fire station on Industrial Boulevard will provide for the
relocation of Fire Station #1 from the downtown area. Five new firefighters will be added, implementing year 2
of a 3 year plan to increase staffing levels for public safety. Salaries for civil service employees will increase on
October 1, as a part of the City’s plan to ensure adequate staffing and competitive compensation for all
employees. Fire will also be involved in annexation planning to ensure access and response levels are
adequate in newly annexed areas.
• Georgetown Utility Systems (GUS)
An electric substation crew will be added to provide service in high demand areas. Keeping the Electric Fund
healthy ensures a good return on investment to the City’s General fund, thereby improving the quality of
services while keeping property taxes low. The Street Department, as well as the utility areas, will provide
support to implement the master plan for the Williams Drive Gateway, which is an area proposed for
revitalization and economic development. The continued conversion of overhead electric lines to
underground in the downtown area provides a link to the implementation of the Downtown Master Plan.
This division will also provide support to the City’s annexation initiative, and the update of the comprehensive
plan. The Water Services Department will continue to expand its sewer maintenance program to include
Edward’s Aquifer mandates by completing year four of the testing of the lines and year three of the repair of
the lines. This program, mandated by the Texas Commission on Environmental Quality maintains that all lines
over the Edward’s recharge zone must be tested every five years.
• Management Services
Management Services provides oversight to all divisions and
also includes several stand alone departments that are not
included elsewhere. Information Technology will work with
Finance to expand the City’s records management program
to include an imaging system. The Airport will be working on a
funding plan to implement the Airport Master Plan. Human
Resources will coordinate a classification and market study to
vii
ensure competitive compensation for all employees. Economic Development provides support and
information to the newly created 4A Economic Development Board, which will use a dedicated sales tax to
continue funding for economic development and industrial recruitment. The City Manager’s Office will
benchmark each department with comparable cities to ensure adequate staffing levels. The City Manager’s
Office will implement the recommendations from the Affordable Housing Task Force to develop an affordable
housing program. Fees will also be waived for Habitat for Humanity projects during the upcoming year to
support this effort. This division will ensure the completion of all strategies outlined in the 2005/06 Operating
Plan.
• Police Services
Police will strive to improve emergency response levels by adding six police officers and purchasing a hike
and bike trail access vehicle to provide coverage on City trails. Funding to increase police salaries was
approved to be more competitive with surrounding communities. Police will also be involved in annexation
planning to ensure access and response levels are adequate in new areas annexed by the City.
Capital Projects
Capital improvements make up 26% of the City’s proposed upcoming budget. The major projects, by type of
project, are listed below:
General Capital Projects
General capital projects are those that are funded through the general tax base, versus utility capital projects,
funded through utility rates. The following projects are included as general capital projects for 2005/06:
• Construction of the new Public Library - $7 million.
• Construction of Fire Station # 1 (relocation from downtown) - $1.75 million.
• Expansion and remodeling of the Community Center - $1.6 million.
• Parkland development - $370,000.
• River trail call boxes and lighting - $350,000.
The Airport will complete construction of a control tower, which is funded through grant funds and revenues from
Airport operations.
Street Improvements and Maintenance
The capital budget for street construction and
maintenance is funded through four primary sources:
General Fund revenue, quarter cent sales tax for
maintenance, service improvement program (SIP) fees
and half cent sales tax for transportation improvements
for economic development (through Georgetown
Transportation Enhancement Corporation- GTEC).
General, 1/4 cent sales tax and SIP funded projects:
• Church Street • Elm Street • Pine Street
• Myrtle Street • Walnut Street • Ranch Road
• Parkway • Main Street
Georgetown Transportation Enhancement Corporation (GTEC) projects are included in a separate budget that
is adopted by the GTEC board and approved by City Council during the budget adoption process. Projects are
administered and managed by City staff. A copy of GTEC’s approved budget is included in the reference section of
this document.
Street Maintenance Per Capita
$34.40
$46.66
$57.14
$73.27
$82.48 $90.21 $90.88
$54.49
0
20
40
60
80
100
99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07
viii
Utility Capital Projects
The City will fund over $16.9 million for utility and infrastructure improvements in 2005/06. The majority of these
projects are a part of the City’s on-going capital expansion and upgrades to ensure quality services to the citizens.
Electric – Improvements are scheduled throughout the system
Water Services – Improvements include line upgrades, mandated Edward’s Aquifer Recharge Zone
testing and repairs, and an upgrade at the Southside Water Treatment Plant
Stormwater – Construction of downtown regional ponds and the San Gabriel retaining wall.
FINANCIAL HIGHLIGHTS
The City is committed to sound financial planning and direction, and uses the City’s Fiscal and Budgetary Policy to
guide the budget process and financial administration. This policy is reviewed and updated annually as part of the
budget process and requires all funds be self-sustaining, meaning on-going operating revenues must fund on-going
expenses. Also, the policy has substantial debt coverage requirements. All enterprise funds that have debt
commitments are required to maintain 1.5 times coverage, meaning excess operating revenues must equal 1.5
times the annual debt service payment. The 2005/06 Annual Operating Plan meets the Council's goal that each
utility system is a self-supporting operation that provides a desirable and affordable level of service. All of the City’s
enterprise funds, including the Airport, are self-supporting and policy compliant in 2005/06.
The City-wide contingency reserves have been increased from $9.5 million to $10.4 million, due to the increase in
the total operating budget. This amount represents 75 days city-wide operating expenses, with $4.7 million for
General Fund, representing 90 days of operating expense in this fund. Capital is excluded from the contingency
calculation.
Revenues. The City's revenues continue to rise due to added
property tax revenue resulting from an increased total assessed
valuation and increased utility service demands. The City's overall
customer base for its electric, sanitation, wastewater and water
services has increased at a rate of 5-7% for the last three years.
The City continues to conservatively project a 5% increase in
revenues for utility growth. Since weather conditions affect the
electric and water revenues significantly, revenue projections
utilize conservative growth estimates to avoid budget shortfalls,
and utilize a rolling average consumption method to factor out any
weather aberrations.
General Fund. General Fund revenues are expected to increase
for 2005/06, through increased property taxes and increases in
sales taxes due to new retail development. Return on investment transfers are expected to increase due to overall
customer growth and higher revenues in the City’s utility system. Fee adjustments for building inspection fees and
parks fees will also contribute towards the increase. Court fines are expected to increase due to increased ticket
volume. Other revenues are expected to remain stable through upcoming year.
Proposed Debt. Revenue bonds are scheduled to be
issued for electric utility infrastructure projects. The
estimated amount of the utility bonds needed to fund the
Utility Capital Improvement Program is $3.48 million.
The City plans to time the issuance of this debt to
complement the issuance of the GTEC debt for
transportation improvements and match cash flow
needs. The debt issue is planned for late Fall 2005.
Short term obligations for $603,000 to fund public safety
vehicles, including patrol laptops in the vehicles will also
be issued, along with an additional $3.4 million to fund
general capital projects, including park improvements
and construction cost for the new fire station on
Industrial Boulevard.
$300
$402
$544 $618
$525
$681
$0
$200
$400
$600
$800
'96 '98 '00 '02 '04 '06
Tax Supported Debt Per Capita
Combined Utility Revenues
0 1 0,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000
00/01
01/02
02/03
03/04
04/05
Proj 05/06
Electric Water Wastewater Sanitation Stormwater
ix
In November 2004, voters approved a $22 million bond package that includes a new library, an expanded
recreation center and renovation of the City’s community center. The bonds for design work and renovation of the
community center were issued in fiscal year 2005, and construction bonds for the public library construction will be
issued in 2006. The bonds are being issued in stages to mirror cash flow needs and to minimize the impact on
property tax rates. The City’s debt per capita increased this year due to the issuance of these bonds, yet continues
to be lower than most comparable cities. The City‘s total tax-supported general debt is expected to be $36,246,884
by September 30, 2006.
Electric and Water Services Funds. Growth demands continue to impact service levels within the City’s two
largest utility funds. Operational costs continue to increase as the infrastructure expands. Growth in the City’s
outlying areas also creates demands on the City’s existing utility facilities.
The City's electric system continues to generate revenues sufficient for operations and maintenance and some
system improvements. Growth in the southern most area of the Electric service area will create increased
demands on substations in that area. Revenues related to this area are projected to offset any increase in
operating cost.
Growth, as well as, increased environmental mandates has also impacted the Water Services Fund, which includes
the City’s water, wastewater and irrigation utilities. Water utility costs continue to increase due to increased
operational costs, as well as increases in long term water supply cost and costs associated with the operation of
the Williamson County Raw Water Line. Contracting for additional water with the Brazos River Authority has
ensured the availability of a long-term water supply for Georgetown. Expenses in the wastewater utility have
increased due to Edwards Aquifer compliance issues and increasing treatment plant operational costs. The
expansion of effluent for irrigation purposes, which
provides large commercial customers a non-potable
water supply for irrigation needs, has been completed to
help mitigate the demand on the City’s water plants for
treated water.
The utility debt coverage ratio, a standard measure of
utility revenue debt capacity, or the number of times the
debt service payment could be funded through net
income from the utility, remains healthy at 3.11 times.
While this number is slightly less than previous years,
the amount is more than adequate to meet the City’s
fiscal and budgetary requirement of 1.5 times coverage
and the City’s utility bond requirements of 1.35 times
coverage.
Airport Fund. The Airport Fund is financially self-supporting and funds its on-going operations, as well as provides
a times coverage ratio of 1.68 times for its debt service coverage. The construction of an airport traffic control
tower, which is funded 90% through a federal grant administered through the Texas Department of Transportation,
will be completed in 2006. The Airport Master Plan update will be completed 2006, and will include expected
improvements to the Airport. Funding needs and a financial plan will be considered in the adoption of the updated
Plan.
Internal Service Funds. The internal service funds provide administrative services and asset management for
information, facility, and fleet services to City programs and departments by charging lease and administrative fees.
These fees are incorporated in each department’s budget.
Information Services Fund $1,495,142 Add and replace network and application technology and
hardware. The City began leasing its computer and phone
systems in 2003 to provide a citywide standard on computers and
a citywide phone system. Fees fund computer support services
and annual software maintenance contracts.
Times Coverage Ratio
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
2001/02 2002/03 2003/04 2004/05 2005/06
Combined Water Services Electric Minimum Policy Requirement
x
Facilities Maintenance Fund $887,051 Building maintenance and repairs to include HVAC, janitorial
services and minor remodeling. Repairs and scheduled
maintenance will be completed in 2005/06.
Fleet Management Fund $2,066,500 Add/replace 29 vehicles and equipment. The Council continues
the three-year replacement cycle for police vehicles and added
laptops as standard equipment in the patrol cars.
CONCLUSION
One of the priorities identified by City Council last Spring was to provide quality services to our citizens while
keeping property taxes low. We believe the 2005/06 Annual Operating Plan fulfills that goal. The new or expanded
programs that are funded in this budget will not only improve or expand service levels, but will also enhance the
quality of life for our citizens. We believe we’ve made an outstanding effort to ensure the goals and objectives set
forth by the Council have been met, as well as ensuring that Georgetown remains a safe and affordable place to
live and work. The proposed budget balances the needs of the community with the available funding to move the
organization toward fulfilling its mission of enhancing the unique character and quality of life for the citizens of
Georgetown.
Finally, we acknowledge the tremendous contributions and teamwork of all City staff in preparing the 2005/06
Annual Operating Plan. The management team worked together to assist in achieving the goals set by Council.
Each department worked to find savings in their operating budgets, and to make suggestions for program
improvements. Most notably, we want to recognize the Finance and Administration Division for their long and
dedicated hours in preparing the Annual Operating Plan.
Respectfully submitted,
Paul E. Brandenburg Micki Rundell, CGFO
City Manager Director of Finance & Administration