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Overview
Overview Table of Contents
Transmittal Letter from the City Manager .................................................................................... i
Budget Process .......................................................................................................................... ii
Budget Overview ....................................................................................................................... iii
Budgetary Variances ................................................................................................................. iii
Revenue Overview .................................................................................................................... iv
Budget Program Highlights ........................................................................................................ v
Capital Projects ........................................................................................................................ vii
Financial Highlights ..................................................................................................................viii
Conclusion ................................................................................................................................. xi
October 1, 2009
To the Honorable Mayor Garver, Members of the City Council and Citizens of Georgetown:
We are pleased to present to you the City of Georgetown Annual Budget for 2009/10. The Annual Budget is the
outline of the programs and services to be provided by the City during the coming year. We believe that the
2009/10 Annual Budget is a sound financial plan that addresses current economic conditions, provides the
requested level of services and infrastructure improvements needed for our growing community and 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 2030 Plan.
2008/09 Year in Review – Addressing the Local Economy
The previous fiscal year presented challenges beginning in
October 2008, when growth and development in the region
stalled and general revenues declined. The City quickly
implemented its “Budget Contingency Plan”, freezing the hiring
of all new and vacant positions, except for certain public safety
positions, and reducing all non-essential operating spending, as
well as, delaying several capital projects. Revenue projections
were also updated to recognize the potential shortfall in sales
tax and development related revenues. As a result, 28
positions were “frozen” in the 2008/09 budget, resulting in a
savings of over $1.6 million. This savings, along with reduced
spending in all departments has offset a revenue shortfall of $2.4 million in the General Fund. Fortunately, the City
ended 2007/08 with a $2 million excess in the General Fund that could be used to offset the shortfall. The City’s
Fiscal and Budgetary Policy requires that on-going expenses be funded with on-going revenues and that any
“excess” funds would only be used for 1-time expenses. Therefore, the 2008/09 shortfall was considered a 1-time
expense and therefore eligible to be funded from the excess. The Budget Contingency Plan was also used as the
basis to ensure a balanced 2009/10 budget.
2009 marked a general slow down in commercial activity, however several
projects that had began before the economic downturn were completed.
Central Texas PowerSports and Texas Outdoor Power Equipment both
opened new expanded facilities, with a combined value of over $7 million.
A second Walgreen’s drug store was completed on HWY 29, across from
Wolf Ranch.
Future development includes a
major hotel/convention center,
scheduled to open by 2010 at the
Rivery, providing much needed
meeting space to the community,
as well as, improvements to Rivery Park. Two new hotels are currently
being built along IH35 that will jump start the implementation of the
Williams Drive Gateway Master Plan redevelopment project. Several other
smaller commercial and retail centers were either under construction or
newly completed in 2009.
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The historic downtown area continues to provide a focal point for
the community, as new and expanded business make the
“Square” their home. The County Courthouse reopened in
December 2007 after a three year, $9 million renovation project,
funded by Williamson County that restored the building’s historic
structure. Sun Star (Tamiro) Plaza, a four story mixed use
development with street retail, office space and a restaurant, was
completed in December 2008. The Monument Café was
relocated in November 2008. This development has future
phases for mixed use development including a grocery and office
space. The Downtown Georgetown Association continues to be
active since preservation of the historic square continues to be
an important priority for the City Council, as it truly is the “Jewel
of Georgetown”.
Residential growth has continued at a much slower
pace than the previous recent boom years. The City
issued 519 residential permits with a value of $129
million, however the past two years have marked the
slowest growth years in Georgetown’s recent history.
In November 2008, the City conducted a successful
bond referendum as the City’s voters approved the
issuance of $81.5 million in bonds for road and park
projects. The authorization included $46 million for
transportation improvements, including FM971 and
FM1670, both of which will be implemented in
conjunction with other Williamson County projects. $35.5 million was approved for parks and recreation projects
that include the first phase of development for the future Garey Park, as well as, construction of a ne w
amphitheater in San Gabriel Park, expansion of hike and bike trails and other park improvements to further
implement the recently adopted Parks Master Plan. All bonds are expected to be issued over ten to fifteen years
and have a maximum tax impact of $0.08 to the city’s tax rate.
The general economic slowdown provides the City a unique opportunity for planning initiatives to ensure the City is
prepared when growth trends resume. The City adopted the Parks Master Plan in March 2009 to continue to
preserve river corridors and expand parks and green space. A Garey Park Master Plan also targets a specific
major park and will include an amphitheatre, equestrian areas, trails and meeting areas. Utility Master Plans,
including Water and Wastewater, were updated in June 2009. The Council formally adopted a new comprehensive
plan, the Georgetown 2030 Plan in February 2008. This Plan provides vision for the future and is designed to
address growth issues facing the community over the next 20+ years. This year-long project required citizens
throughout the community to come together and agree on what made Georgetown unique and provides a
foundation for policies, strategies and actions needed to ensure that the Georgetown of 2030 is as special as it is
today. W hile managing growth will continue to challenge City leaders, the commitment to provide residents with
that “something special” that makes for a truly unique hometown feeling will last far beyond the current budget
cycle.
The 2009/10 Budget Process
The City Council began its 2009/10 budget process in
April 2009, with the review of the 2008 (bi-annual)
Citizen Quality of Life Survey results and input from the
City’s advisory boards and commissions. After
reviewing this feedback, the City Council updated and
confirmed the budget Priority Areas (strategic goals
necessary to implement the 2030 Plan) for the
upcoming year. Phased strategies for multi-year
projects, as well as, new strategies for 2009/10 were
then compiled with estimated project costs included.
The City Council was then asked to individually rank
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each strategy on a scale of 1 to 4, with 1 being the most important. The results were then compiled and a priority
listing was developed. This year’s priorities are centered on transportation improvements, limiting the property tax
burden and preparing the utilities for future growth. Utilizing the City’s fiscal and budgetary policy, t he City Manager
and management team focused on balancing the budget in the economic downturn while utilizing resources to
address transportation and utility growth.
2009/10 Budget Overview
The 2009/10 Annual Budget is an operational and financial plan for the programs and services provided by the City
during the coming year. The adopted $189.1 million budget includes funding for all services, including utilities, as
well as capital improvements for the upcoming year. Of that amount, approximately $122.6 million is for continued
operations, which includes $38.6 million for purchased power costs. In addition, the budget includes $16.4 million
for debt payments and $41.9 million for capital improvement projects, of which $6.1 million are re-appropriated from
the previous year’s budget. Operating interfund charges/transfers, which include internal service fund transfers, are
approximately $8.1 million. The 2009/10 Operating Plan is approximately 11.9% lower than the 2008/09 amended
budget.
Overall, on-going operating costs decreased due to the savings resulting from the continued “freeze” of vacant
positions per the Budget Contingency Plan, as well as the timing of capital improvement projects.
Budgetary Variances
• Georgetown Utility Systems – Operations decreased 4.61% due to savings from 9 frozen employee
positions, 8 of which are in the Electric department. These frozen positions result in a savings of over
$655K. Purchased power expense decreased over the prior year’s original budget, but is higher than the
2009 end of year projections. The major focus for the division will continue to be capital maintenance and
service improvements. The implementation of new Automated Metering Infrastructure (AMI) will also
impact operations.
• Transportation Services – This division includes a $3.27M increase due to construction projects roll
forward to 2009/10 budget. Six frozen positions, including the Transportation Director position and a
service crew that was budgeted last year will not be filled. The savings for these positions is $260K.
• Community Development – The 15.57% decrease is related to the freezing of 5 open positions, three of
which are in the Planning Department and two are building inspection positions. These positions will be
frozen until the economy improves and building and development activity resumes to a more normal state.
• Fire Services – The budget for Fire Services is relatively flat with only a 1.63% increase over the prior
year’s budget. Step increases in salaries are offset by a frozen position in Fire Administration.
• Management Services – The 6.44% decrease is due to the frozen Assistant City Manager position. A
new department, Public Communications, was created to isolate operating costs associated with the
citywide communications function. The webmaster position was also transferred to the new department to
enhance the coordination of information being broadcast through the website and social networking sites.
• Finance & Administration – This 15.1% decrease over the prior year’s budget is due to limited funding of
capital replacement in the City’s fleet fund in 2010. The Information Technology department was moved to
F&A this year and reflects a $300K for potential network improvements and contingency funds that will be
needed to prepare for new technology projects.
• Community Services – Increased operating expenses associated with a full year of the expansion of the
Recreation Center are offset by reductions in expenses for frozen positions in the Library and Parks
Maintenance. The overall increase in this area is only .002%.
• Police Services – An increase in salaries due to step increases for sworn police officers is offset by four
frozen patrol positions. The overall variance from the prior year’s budget is less than 1%.
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• Capital Improvements – The budget reflects over $15 million less in capital improvements than
the.2008/09 amended budget. It also includes $6,040,345 of projects rolled from the 08/09 budget.
Improvements for the upcoming year include Fire Station 5 designated construction, the second year of the
Williams Drive widening project contribution to Williamson County, the widening of the intersection of
Williams Drive and DB Wood, $7.1 million of water mains, $3.2 million of pump and storage upgrades and
$2.5 million towards water treatment plant upgrades.
• Debt Payments – The 4% increase is related to Certificates of Obligations issued in May 2009, as well as
General Obligation Bonds issued at that time. Utility debt service also increased due to the 2009 limited
tax notes issued for electric improvements. These tax notes are fully supported through the electric fund
and do not impact the city’s tax rate.
• Interfund Charges – these amounts vary from year to year due to project funding and source of funds.
Revenue Overview
The City Council adopted a property tax rate of $0.35622 per $100 valuation, which is a 14.8% decrease from the
effective tax rate. The effective property tax rate is the rate needed to collect the same amount of revenue as last
year based upon the current year valuations. The adopted rate reflects the exact rate adopted in the previous fiscal
year. The rollback rate, or the highest rate allowable without risking a rollback election is $0.4349. This year’s rate
includes $865,600 of sales tax used to reduce property taxes. Georgetown continues to have the lowest municipal
tax rate in the Central Texas area.
The proposed 2009 rate of $0.35622 includes a 5.4%
increase in operations and maintenance (O&M)
funding. Interest and sinking (I&S) decreased by
6.9% due a one-time payment of General Fund
balance to pay down debt for the 2009/10 fiscal year.
The City Council elected to allocate $1.6M of excess
General Fund balance to lower the 2009/10 tax rate in
an effort to help minimize the economic impact to city
taxpayers. This “buy down” was a one-time action.
The City will address the need for a tax increase next
near when the local economy is expected to rebound.
The assessed property valuation for 2009/10 is $4.17 billion, which is a 1.57% overall decrease from last year’s
adjusted value of $4.2 billion. New and annexed property totaled $158 million. Existing property values decreased
5.3% from last year. The average home value for 2009/10 decreased from $193,263 in 2008/09 to $188,789, a
2.1% decrease from the prior year.
The 2009/10 Annual Budget includes a 2% increase overall increase in total sales tax. Revenues in 2008/09
decreased overall from the prior year due to a steady decline in building materials sold as well as a general decline
in retail sales due to the negative economic situation. This decline has been offset somewhat by the additional
local retail, primarily at Wolf Ranch, which gives citizens the ability to “Shop Georgetown”. Wolf Ranch is currently
home to Target, Old Navy and Kohl’s and numerous smaller retailers. Wolf Ranch revenue is expected to remain
flat in 2010.
Sales Tax revenue now funds 20% of the General Fund
budget. Due to the volatility of this revenue stream, the
City monitors this revenue source carefully and has
several contingency options available if revenues are
significantly less than projected. In addition, the City
maintains 90+ days of contingency reserve funding
within the General Fund to offset any potential revenue
shortfall.
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The City has reviewed rates for 2009/10 and determined that water and wastewater rates are sufficient to fund
the costs of operating the system. The implementation of the flat rate sewer program in 2007 has eliminated
variances in wastewater revenue, and therefore, a rate adjustment is not expected until 2011 at the earliest. Timing
of any future adjustment will be determined by system growth. Water rates are currently adequate to meet funding
requirements for the next several years, although minor changes in conservation rates and the base rate charge
are being reviewed to limit the need for additional water sources as well as delay the impact of future water plant
expansions.
Electric rates were adjusted in October 2007, before the dramatic changes in fuel costs were incurred. The City
charges a Power Cost Adjustment (PCA) to address fluctuations in fuel prices charged by the City’s primary electric
supplier, the Lower Colorado River Authority (LCRA). This fuel increase is a direct pass through to the City’s utility
customers based on per kWh use.
Garbage rates were increased in the 2009/10 budget due to an inflationary
adjustment allowed with the City’s solid waste contractor, Texas Disposal
Service (TDS) approved last fall. This increase also addresses the City’s
costs associated with contract oversight and the operation and maintenance
of the various City conservation programs. Rising fuel prices will require the
City to pass-on a “fuel factor” to users. Under the contract, TDS can request
an increase if fuel prices rise beyond projected levels. Increased prices in
2008 have made this a reality.
Stormwater rates are projected to remain the same for the upcoming year. Increasing environmental mandates,
including several EPA requirements that become effective in the next few years, may require a rate increase. This
is also impacted by the on-going maintenance of the expanding drainage system. Rates will be reviewed in 2010 to
address these issues.
Budget Program Highlights
The 2009/10 budget process focused primarily on maintaining service levels in an economic downturn. Therefore,
there were significantly fewer new programs than in previous years. The major program initiatives, linked to the
Georgetown 2030 Plan (paraphrased in bold italics) for the 2009/10 Annual Budget are outlined as follows:
• Community Development
The division will continue efforts for community long-range planning coordinating updates to the Unified
Development Code, and finalizing the Housing Element of the 2030 Plan. The division will also work with
Management Services to develop an Economic Development Plan Element of the 2030 Plan. The website will
be reviewed and updated to increase operational efficiency within the Planning Department and software will
be researched to help track projects and provide added services to customers. Geographic Information
Systems will also work to continue implementation of Phase III of the Georgetown GIS Plan, focusing on
integration with the new Customer Information System as well as the in-house development of GIS dashboards
and websites. The Building Inspection Department will coordinate the adoption of the 2009 International
Building and 2008 National Electric Codes during the upcoming year.
• Community Services
This division will continue to expand and coordinate the parks and
recreation system by planning projects for the implementation of the
recently updated Parks and Open Space Master Plan. The division will
continue to explore options for acquiring Lake Georgetown Parks from
the United States Army Corp of Engineers. The Convention and Visitor’s
Bureau will continue revitalization and economic development
through an aggressive marketing and advertising program to increase
promote the City’s array of arts, heritage and cultural festivals and events
to bring more visitors to the community.
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• Finance and Administration
The division will continue implementation of the City’s Facility Plan by coordinating the design and
renovation of the Georgetown Municipal Complex (GMC). The division will also improve emergency
response levels by coordinating the design for Fire Station No. 5. The Division will increase operational
efficiency and financial integrity by coordinating the selection and implementation of a Customer Information
System as well as various network upgrades.
• Fire Services
The division will improve emergency response levels through the purchase of a specialized apparatus for the
Airport that has foam to extinguish aircraft fuel fires. A working group will also increase operational efficiency
by evaluating the Quint/Squad response, as well as identifying response plans with the Community Services
and Police Divisions.
• Georgetown Utility Systems (GUS)
The division will increase operational efficiency with the selection and implementation of a new Customer
Information System/Advanced Metering Infrastructure System as well as the continued upgrading and
expansion of fiber optic data networks to accommodate smart grid applications. Environmental Services and
Water Services will expand recycling opportunities and environmental programs through the development
of a pilot program for single stream recycling. Working with Transportation Services, the Division will assist in
implementing a fiber network for use in alleviating traffic congestion through various capital improvements
and signalization planning. By working on a wholesale wastewater treatment agreement, the department will
improve the quality of services while keeping property taxes low for our residents. In addition, GUS
Administration continues to investigate potential new power suppliers for the City’s growing electric needs.
• Management Services
Management Services provides oversight to all
divisions and also includes several stand alone
departments that are not included elsewhere.
Human Resources will develop an on-going
funding plan to implement market compensation for
personnel and ensure competitive compensation
for all employees. Continue work with local,
regional, state and federal partners to develop
funding strategies for future road projects will
improve the quality of services while keeping
property taxes low.
• Police Services
Police will strive to improve emergency response levels through researching grant funding opportunities to
increase staffing. The division will also increase operational efficiency by enhancing departmental
communication and through implementation of a new Computer Aided Dispatch system.
• Transportation Services
The division is responsible for helping to alleviate traffic congestion. As part of this process, the division will
further implement a traffic management program to include signals, signs and markings, speed limits and other
traffic calming measures. The Division will also oversee infrastructure expansion, as well as, capital
maintenance to improve mobility within the city.
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Capital Projects
Capital improvements account for 22% of the City’s 2010 budget. The major projects, by type 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 2009/10:
Transportation Improvements
Williams Drive widening (joint project with Williamson County) $1.5 million
Widening of intersection at DB Wood and Williams Drive $1,598,000
South East Arterial 1 $339,000
City facility improvements including:
o $2.5 million for Fire Station 5
o $832K to remodel the Georgetown Municipal Complex
Street Improvements and Maintenance
The City’s street maintenance program is funded
through a dedicated 1/4 cent sales tax and the General
Fund. The 1/4 cent sales tax for street maintenance
was reauthorized by voters in November 2006 for 4
additional years and will be considered for re-
authorization again in November 2010. In addition, the
2009/10 budget includes 3.7% of the General Fund
budget for on-going and proactive street maintenance.
This year’s General Fund contribution is $1.25 million
of new funding, and $2.45 of roll forward funding from
previous years.
2009/10 Street Maintenance/Rehabilitation Projects include:
FM 2338 to Sun City Boulevard E. 11th St. S. Myrtle St. to Ash St.
Ash St. E. University to E. 8th St. W 10th St, MLK Jr. St. to S. Austin Ave
S. Church St, E. University to E. 11th St.
Utility Capital Projects
The City will fund over $32.4 million for utility and infrastructure improvements in 2009/10. 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
as determined by the Utility Master Plans.
Electric – Improvements are scheduled throughout the system.
Water Services – Improvements include line and pump upgrades, mandated Edward’s Aquifer Recharge
Zone testing and repairs, Lake Water Plant Clearwell improvements and plant expansion, as well as sewer
projects necessitated by the 2006 Annexation process.
Stormwater Drainage – Funds drainage improvements, including improvements at 18th St. and Eubank,
curb and gutter replacements, and other Stormwater Master Plan improvements.
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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
2009/10 Annual Budget 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 2009/10.
The City-wide contingency reserves have been
decreased 4.6% from $14.52 million to $13.85 million.
The decrease is attributed to lower city-wide operating
expenses and represents 75 days city-wide operating
expenses. Included in the total contingency is $6.74 million within the General Fund, representing 90 days of
operating expenses. Capital improvements and purchased power costs are excluded from the contingency
calculation.
The City’s overall revenue continues to increase,
primarily due to increased utility revenues, slightly
increasing sales tax and a rate increase for garbage
services. 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 4%
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 2009/10, through increased property taxes and slight
increases in sales taxes due to economic recovery. Return on investment transfers are expected to increase due to
overall customer growth and higher revenues in the City’s utility system, particularly the Electric system as it
expands services within the Round Rock service area. Most other revenue is expected to remain stable. A review
of the City’s development related fees has been completed and fee adjustments are expected to be brought to
Council for approval in December. The revenue impact is expected to be minimal.
General Fund expenditures have risen in 2009/10 primarily due to increased compensation for public safety as
well as health insurance premium increases for all employees. A price adjustment for contract costs for solid waste
and operations of the collection station have also increased overall expenditures. Ending fund balance is expected
to be $7.9 million, which is 17% higher than the contingency reserves required by the fiscal policy.
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. Annexation within the City’s outlying area requires
expansion of City services, and creates additional demands on the City’s
existing utility facilities.
The City's Electric Fund continues to generate revenues sufficient for
operations and maintenance and some system improvements. Growth
within the southern-most electric service area continues to expand.
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The City became the electric provider for several large developments within the City of Round Rock, including a
new outlet mall, as well as, a regional hospital in 2006.
Operating expenses within the Electric utility are slightly higher than in previous years due to additional staffing.
Capital improvements projects make up the most significant portion of the variance in budget from the previous
year.
Growth, as well as, increased environmental mandates has also impacted the Water Services Fund, which
includes the City’s water, wastewater and irrigation utilities. Revenues are expected to increase due to customer
growth and demand, although revenues related to new development are expected to slow during the upcoming
year. In 2008, the City began supplying water to several Municipal Utility Districts (MUD) that are outside the City.
These customers pay out of City rates and require no other City services and are expected to contribute over
$50,000 in ROI income to the General Fund in 2009/10.
Water utility expenses 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 City continues to pursue options for regional wastewater
service on the City’s western boundary and is taking a leadership role in developing methods to promote sanitary
sewer service and eliminate the proliferation of septic thus ensuring water quality for the Georgetown area. These
actions will become critical as rapid growth continues within the area.
Budgeted ending working capital for 2009 is $4.7 million higher than originally budget due to the timing of capital
improvements and revenues from the summer’s drought.
Stormwater Drainage Fund
Revenue is expected to increase due primarily to customer growth and is sufficient to fund the on-going operations
of the utility in the upcoming year. Increased number of detention facilities as well as increasing environmental
mandates will require the review of the rates. Expenses in the fund are expected to increase as the City takes on
maintenance of several large facilities, including the recently constructed downtown drainage pond. Projected
ending working capital is substantially less than previous year due to the cash funding of several large
construction projects including drainage improvements to Maple Street.
Airport Fund
The Airport Fund is financially self-supporting and funds its on-going
operations, as well as provides a times coverage ratio of 1.86 times for its
debt service coverage. Revenues are expected to increase due to
increased fuel and terminal sales. Ending working capital is expected to
decrease slightly as excess funds are being used to fund needed capital
improvements at the airport.
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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
$
2,056,291 Add and replace network and application technology and hardware. Fees
fund computer support services and annual software maintenance
contracts.
Facilities Maintenance
Fund
$
1,852,438 Building maintenance and repairs to include HVAC, janitorial services and
minor remodeling. Repairs and scheduled maintenance will be completed
in 2009/10. The City now has 37 facilities that require on-going
maintenance.
Fleet Management
Fund
$ 1,458,119 Add / replace 5 vehicles and equipment. Many replacements originally
scheduled for the upcoming budget cycle have been delayed to save funds.
Proposed Debt
The 2009/10 proposed budget includes approximately $22.2 million in bonds to be issued in May 2010 to fund utility
infrastructure, as well as, facility improvements. Utility Revenue Bonds will be issued to fund electric, water and
sewer system improvements and are repaid through existing utility rates. Facility improvements are funded through
Certificates of Obligation (CO) which are then repaid through property taxes. The largest component of the
proposed 2009 CO is to build Fire Station 5, planned for Shell Road. Additional debt may be needed for the
renovation of either the Albertson’s building or the old Library building for relocation of the Police department and
Municipal Court.
The actual dollar amount of bonds to be issued may be adjusted before May 2010. Changes in the scope of
projects or increases in construction costs may increase the amount of bonds to be issued. Whereas, delays in
project timing, as well as, revenues from prior year being greater than anticipated may in fact lower the total amount
of the bond issue. Any excess fund balance, whether due to higher than projected revenues or expenses that were
less then estimated can be used to further reduce the amount of debt issued.
In November 2004, voters approved a $22 million bond package that included a new library, an expanded
recreation center and renovation of the City’s community center. These bonds have been issued in stages to mirror
cash flow needs and to minimize the impact on property tax rates. The City’s debt per capita increased
substantially due to the final issuance of the Recreation Center expansion bonds in May 2007. The City’s debt per
capita continues to be lower than most comparable cities. The City‘s total tax-supported general debt is estimated
to be $58.7 million by September 30, 2010.
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 an
budgeted 2.45 times, and exceeds the City’s fiscal
and budgetary requirement of 1.5 times coverage and
the City’s utility bond requirements of 1.35 times
coverage While the budgeted number is slightly more
than previous years, the additional coverage is used
in funding system maintenance and various mandated
improvements throughout the various utilities.
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Conclusion
The latest economic downturn was not expected when last year’s budget was adopted. This downturn resulted in a
substantial decrease in City revenues and growth, which could have dramatically impacted City services. Yet, the
City met these obstacles without decreasing services or degrading its financial condition. The City’s conservative
approach in managing and projecting resources, including the proactive implementation of its Budget Contingency
Plan, enabled it to endure the downturn and end the fiscal year in a positive position.
The 2009/10 Annual Budget continues this tradition of fiscal responsibility to our citizens by continuing a budget
contingency plan that freezes costs while continuing to provide an acceptable level of service. This budget also
recognizes the contributions of our employees through a modest merit based pay adjustment.
We believe we’ve made an outstanding effort to ensure the community has a fiscally responsible budget that
continues to meet the goals and objectives set forth by the City Council. The goal of ensuring that Georgetown
remains a safe and affordable place to live and work even during an extended economic downturn was prominent
when staff prepared the proposals for each of the operating areas. This budget balances the needs of the
community with available funding to provide quality services to the citizens of Georgetown and continues the City
Council’s commitment to preserving and enhancing Georgetown’s unique character and quality of life.
Finally, we acknowledge the tremendous contributions and teamwork of all City staff in preparing the 2009/10
Annual Budget. The management team worked together to develop programs to achieve the goals set by City
Council while adhering to the financial constraints of an ongoing Budget Contingency Plan. 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 Budget.
Respectfully submitted,
Paul E. Brandenburg Micki Rundell, CGFO
City Manager Chief Financial Officer