HomeMy WebLinkAbout02 - Overviewr•
October 1, 1998
To the Honorable Mayor Wood and members of the City Council:
Georgetown residents share a basic belief that the high quality of life currently found in this community should not
only be maintained but enhanced. The City plays an important role in defining quality of life by developing and
maintaining standards which contribute to a pleasant, attractive, dynamic, and healthy community. The Georgetown
Century Plan is the comprehensive strategic plan by which Georgetown strives to enhance its quality of life. This
budget document serves as the Annual Operating Plan Element (Operating Plan) of the Georgetown Century Plan and
is prepared around the fourteen policy areas outlined in the Century Plan. The Operating Plan continues the direction
established by our citizens and the City Council to meet existing challenges and effectively plan for future needs.
The 1998/99 Operating Plan is based on the priorities established by Council at this year's retreat, the subsequent
budget workshops, citizen survey, public hearings and the City's mission statement:
To preserve and enhance the quality of life and unique character of Georgetown by:
Preserving its rich heritage and natural resources;
Promoting well-planned development, cost-effective professional
management and competent, friendly services; and
Protecting its citizens, the environment and all other assets.
Budget Overview
The 1998/99 Annual Operating Plan totals $73.3 million for all funds. Approximately $45.5 million is for continued
operations and debt service, $6.2 million for interfund charges/transfers, and $21.6 million for capital improvements.
The increases in 1998/99 are due to additional staffing in police and fire services, market and merit salary adjustments,
and demand -based costs such as purchased electric power. The General Fund, which accounts for basic tax supported
services, totals $11.2 million, an increase of 6.7% more than 1997/98 (after adjustments for departments transferred
to the Joint Services Internal Service Fund.) This increase mirrors the 8% growth in residents and utility customers
over the past year.
Property Tax Rate. In response to your direction to strengthen the General Fund's financial position, the tax rate
of $0.35 per $100 valuation represents an increase of 5.9%. This is the same rate as adopted for 1997 and continues
to.be among the lowest in the area. The additional $0.0196 cents above the effective tax rate of $0.33040 provides
one-half cent for transportation (increases from four and one-half cents to five cents this year) which
accomplishes the City's policy of dedicating five cents to streets by 1998/99;
one cent provides funds for public safety needs including fire station staffing, the City's match for the five
officer COPS grant, and salary adjustments to meet current market demands; and
CITY HALL • 609 MAIN STREET
POST OFFICE BOX 409 1 GEORGETOWN, TEXAS 78627-0409 ' 51 2/930-3651 ' TDD 51 2/930-3549 • FAX: 51 2/930.3659
just under one-half cent (.46) for debt service on facility expansions.
Property Values. Total taxable property for the City has risen 21%, from $984 million in 1997/98 to $1.19 billion
for 1998/99. The rise is a result of $117 million in new property and $40 million in annexed property during calendar
1997. Existing property values have increased by 5.5% since 1997.
Utility Rates. There are no water, wastewater or electric rate increases included in 1998/99. These rates have not
increased since 1991/92. Slight increases in sanitation and stormwater drainage are included. The sanitation rate
increases for the first time since 1995 by $0.50/month for residential and 7.5% for commercial customers to cover
additional costs incurred for the new contract with Texas Disposal Systems. The stormwater drainage fee increases
from $1.75 to $2.25 beginning October 1998. This $0.50/month increase is the last phase of a $1.00 increase to pay
the debt costs for a $2.2 million capital improvement program begun in 1997/98.
Staffing. The 1998/99 Plan includes 11 additional full-time positions and four new part-time positions for a total of
324 full-time equivalents (FTE's). The most significant increases in staffing are the additional firefighters needed to
open Fire Station No. 3 in December 1998. Limited other staff additions have been made. The rapid rise in City
service demands resulting from growth continues to provide great challenges to City staff to maintain existing services.
The employee -developed Values Statement continues to guide staff in providing services while meeting the challenges
of a growing community.
Economic Outlook. Georgetown and the Central
Texas region continue to experience strong economic
growth. Sales tax revenue for Georgetown has
increased an average of 14% per year for the last five
years. Growth of seven to ten percent is expected to
continue for the next two to three years. Housing starts
rose dramatically in 1995/96 and 1996/97, but have
begun to level out to a more reasonable pace. The
current rate of 800 - 900 permits per year is expected
for the next five years. Non-residential starts have
begun to increase with numerous new retail,
commercial and small industrial facilities in various
stages of construction.
Sun City Georgetown. The Del Webb Corporation
175
150
125
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„ 100
C 75
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50
25
BUILDING PERMITS
1,500
1,250
1,000
750
Q.
500
250
began development of a 9,500 home, 5,300 acre, active 0' ' ' ' ' ' ' ' ' ' ' ' ' 10
retirement community called Sun City Georgetown in '94 '95 196 '97 198 '99•
1995. Sun City Georgetown, in the northwestern ❑ value *Permits
quadrant of the City,''provides long-term retail and
commercial growth for the community. The City's
development agreement with the Del Webb Corporation provides for fire protection, wastewater, water and electric
services and transportation improvements, as well as annexation of the development. Del Webb pays a per unit fee
(called SIP fee) for its share of the improvements. The City will make all infrastructure and debt payments using the
SIP fees without cash shortfalls or increases in overall service rates for electric, wastewater and water.
As of September 30, 1998, 1,378 homes have been completed and more than 200 more are in various stages of
construction. The impact on service demands and operating costs is evident in the new positions added in the last three
budget years. The City's third fire station, located within the development, was completed in April 1998 and will be
fully staffed by December 1998.
9998199 Operating Plan Element - Transmittal Letter Page ii of xi
Budget Highlights: Ends and Means
At the annual retreat, the City Council reviewed the fourteen Century Plan policy areas and ranked priorities according
to importance for the upcoming year. The 1998/99 Operating Plan reflects those priorities. Not all policy areas are
listed; however, the most significant current and long-term initiatives and issues are summarized below. ,
Economic Development
Policy End: Georgetown's economy is self-sustaining through diversified growth, a broad tax base with minimal
impact from economic fluctuation, enhanced business opportunity and job creation.
Means for Accomplishment
The City and the Georgetown Industrial Foundation continue to be successful in bringing increased economic activity
and job opportunities to the -area. These cooperative efforts have helped build a diversified and stable commercial and
industrial base to keep Georgetown a strong, economically viable community in the region and not merely a
"bedroom/commuter" community. The 1998/99 budget continues funding for the Georgetown Industrial Foundation
at $140,000. The City has been awarded a record number of Texas Capital Fund (TCF) economic development grants
from the State of Texas and will spend considerable staff resources managing these projects. All project funds will
be provided from the businesses or the TCF. Using TCF grants, the City will build facilities for Advance Cable
Services, L.P. and Alu-Cut International, Inc.; construct road improvements to support Advanced Metal Systems, Inc.;
and construct road and utility infrastructure for Texas Electric Cooperatives Transformer Division; Hewlett Chevrolet,
Oldsmobile, Buick, Inc.; Presido Restaurant and a water theme park. Staff will also continue to work closely with
Williamson County officials to develop the exposition center and show barn and related entertainment facilities.
Another important aspect of the City's economic development program is a
strong, viable downtown. During 1997, Georgetown received the Great
American Main Street Award from the National Trust for Historic Preservation
for its downtowri restoration efforts over the past 15 years. The budget includes
$100,000 for the construction phase of a two-year project to provide parking on
city -owned land at 6th and Main, $140,000 to rehabilitate downtown streets, and
$50,000 to extend and improve sidewalks in the downtown area and connect
them to the City's Hike `n Bike Trail along the San Gabriel River.
Environmental & Resource Conservation
Polic,�End: The physical qualities that make Georgetown attractive are protected.
Means for Accomplishment
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Efforts are currently underway to produce a comprehensive agreement with Chisholm Trail Special Utility District,
the water provider for areas west and northwest of Georgetown. The agreement will provide for long-term water
distribution system improvements and supply to enable continued urbangrowth in those areas.
Facilities & Services
Policy End: The City provides for the safety of its citizens and supports the responsive delivery of coordinated services
by the City and other public agencies.
1998/99 Operating Plan Element - Transmittal Letter Page iii of xi
Means for Accomplishment
Police Services. Significant additional resources are included to maintain the City's philosophical commitment to
community oriented policing. A fourth patrol district has been created using a three-year federal COPS grant that
provided 75% matching funds for five additional patrol positions. Police Services will expand its problem solving
and crime analysis abilities with the completion of the public safety software project early in 1998/99. The $1.4
million remodel and expansion of the Police Services building will be completed in February 1999.
Fire Services.' The City's third fire station, located in Sun City, will be fully operational in December 1998. The
station opening requires eleven new firefighters. The station is the first joint facility for City fire services and
Williamson County emergency medical services. The City will complete design and begin construction on a fourth
statinn in the Shell Spur area during the fiscal year that will open during 1999/00.
Employee & Organizational Services. Maintaining,high quality employees and minimizing turnover are critical for
ggod customer service and for meeting the demands of rapid growth. Recruiting and retaining quality staff in the tight
Central Texas job market, with 2% unemployment and rising salaries, has become a major challenge and financial
commitment for the City. The Operating Plan includes $750,000 designated for market salary adjustments and the
"pay for performance" systema
Public Library. Demand for library services continues to grow dramatically. The Operating Plan includes an
additional children's librarian and the third of a four-year increase to the base book budget to bring the Library up to
the national standard for book purchases per capita. Within the next two years, the current Public Library building
will be at full capacity. Staff will work with. Council and the Library Board to generate plans for expansion or
relocation as part of the citywide facilities review.
OVERALL CITIZEN SATISFACTION
Survey Results & Measurements. In response to Council
direction, the City continues to expand its measurement 41% Delighted
system. In 1998, the City conducted a survey of citizen and
employee satisfaction and importance. The results were an
outstanding endorsement of the City's direction and services. s% Dissatisfied
While the positive results are encouraging, the rapid growth
makes maintaining the results a challenge. In 1998/99 staff
will continue to shift to results focused measures as well as
conduct the annual citizen and employee surveys.
53% Satisfied
City Facilities. The growth in staff and services over the past
few years has pushed many City facilities to capacity. During 1998/99, a facility needs review will be conducted and
an estimated $4.75 million in debt will be issued to expand and relocate facilities including the Public Library, City
Animal Shelter, City Hall and the Community Owned Utilities compound. The newly adopted Urban Design Plan
will be part of the criteria used to guide the design of these new facilities.
City Services. Communications to and from citizens is an important part of the City's effectiveness. During 1997/98,
the City revived its quarterly City Letter, completed its web site, located at www.georgetown. org/city, and continued
the joint city/county Infoline. In 1998/99, these efforts will be expanded through the purchase and installation of a
citywide complaint tracking and work order system to improve responses to citizen requests.
1998/99 Operating Plan Element - Transmittal Letter Page iv of xi
Growth and Physical Development
Polices Georgetown's land uses support economic, cultural and social activities for all residents, businesses and
organizations; and the City's development process encourages new and infill development.
Means for Accomplishment
The City will issue approximately 825 new building permits this year compared to 980 in 1997. Although new permits
have leveled off from the 1996 peak of 1,200, the growth rate of 5-71/o is still significant. A comprehensive annexation
program.will be initiated during 1998/99 in anticipation of the 2000 Census and potential state legislative actions
limiting the City's powers. This will help accomplish Council's goal to guide development and protect the
surrounding community, as well as, ensure an adequate population base for commercial lending markets and
redrawing of council districts.
Health and Human Services
Policy End: Comprehensive, affordable health and human services are available through public and private
organizations.
Means for Accomplishment
The City will continue its $70,000 annual funding to the Georgetown Project. This exciting venture was created to
close many gaps in the availability of human and social services which help to meet the needs of children, youth and
families. In the past, a sense of community helped to fill those gaps because, in a small town, people know their
neighbor's needs, and individuals step in to help. As Georgetown grows, that sense of community must be preserved.
The Georgetown Project coordinates efforts and resources around a common vision and set of community values.
No other community is addressing human services in such a comprehensive and proactive way, Those involved in
the project include- the City, the Georgetown Independent School District, Georgetown Ministerial Alliance,
Georgetown Health Care System, Southwestern University, the University of Texas, and local businesses. The City
of Georgetown is an active partner in this coalition through the Police Services' Youth Services Team, the Recreation
Department programs, the Public Library, the Community Owned Utilities' Safe Place program, and the Community
Services Division.
Housing
Policy End: The City cooperates with builders, developers and property owners to provide safe and adequate
housing opportunities for all citizens.
Means for Accomvlishment
The next Functional Plan element of the Century Plan will address housing. During the year, staff will work with the
Council and citizens to develop a comprehensive plan that will allow the City to make the most effective use of
Community Development Block Grants, Rural Development Administration and other programs to provide affordable
housing.
Recreation and Cultural Affairs
Policy End: All citizens actively participate in community -wide social, cultural, and recreational activities.
1998199 Operating Plan Element - Transmittal Letter Page v of xi
Means for Accomplishment
Parks. The budget allocates significant resources to the City's parks and recreational programs. It includes $675,000
to purchase the Beery Creek Racquet Club and staff the facility in February 1999. The facility includes a full size
swimming pool and baby pool, 11 tennis courts and an activity center on seven wooded acres. The budget also
includes funds to install park facilities on 11 acres of city -owned land in the Reata Trails subdivision. The City will
begin construction on phase III of River Corridors by extending the hike and bike trail system along the middle fork
of the San Gabriel River to the Rivery land and adding a new softball complex in the College Street area. The $1.25
million project is aided by a $500,000 Texas Parks & Wildlife Department grant and a $200,000 Lower Colorado
River Authority grant. Construction will begin in 1998/99 with completion expected in early 1999/00.
necreat:on, In addition to ne•x, su,in,,,,;,,aand te,,,,;s nrnoramc the Recreation Department will continue to expand
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its outdoor recreation program for youth. All of these programs are part of the City's commitment to work with youth
as well as establish a philosophy of life long recreation.
Transportation
Policy End: Georgetown's transportation system provides for the safe and efficient movement of -traffic, promotes the
economic interests of the community, and adequately serves the needs of individuals.
Means for Accomplishment
Transportation continues to be one of the most important issues facing Georgetown in the upcoming years. With the
growth occurring in Georgetown, traffic is of chief concern. This budget continues the City's proactive approach to
transportation planning by providing $2.1 million for transportation projects, including
• Construct Holly Street connection to College Street to route traffic away from Williams
Middle School, VFW Park and Mary Bailey Center;
• Construct street; parking and sidewalk improvements downtown;
• Upgrade curbs and roadway, and correct drainage problems along 7th and 8th Streets from
Holly Street to IOOF Cemetery;
• Construct Olive Street to Maple Street connection to improve Annie Purl School traffic
movement;
• Complete rebuilding of Country Club Road;
• Seal coat, overlay and microsurfacing work in Old Town, Park View Estates and San Gabriel
Heights neighborhoods; and
• Sidewalk repair and installation in school and park areas with annual funding allocations
increased from $25,000 to $50,000 for 1998/99 and forward.
In addition to the above street improvements, numerous other improvements are included in this budget.
• State projects to begin in 1998/99 include the extension of,Leander Road from Austin Avenue to Farm to
Market 1460; the "flipping" of Interstate Highway 35 ramps at Williams Drive, State Highway 29, and the
Inner Loop; and the widening of Austin Avenue including the two bridges spanning the San Gabriel Rivers.
0 This is the final year of the Council's five-year plan to increase the property tax revenues dedicated to streets.
The proposed budget allocates 5.0. cents of property tax revenues, or $594,000, for ongoing street
maintenance, repair and construction. This property tax dedication is in addition to the franchise fees for
street operation and maintenance funding.
1998/99 Operating Plan Element - Transmittal Letter Page vi of xi
• The special revenue fund (SRF), established in 1996/97 to pay for the Street Department and street
improvements, continues to provide substantial funds for services and projects. All revenues from the
dedicated property tax and the franchise fees ($885,000 ) paid by utility providers are spent exclusively on
street operations, maintenance, and improvements. Franchise fees relate to streets in that utility companies
pay a fee for use of public rights-of-way.
• The Georgetown Municipal Airport will begin construction work to rehabilitate runway 18-36 and align
taxiways A & C, with 90% of the projects paid by grants. Construction of a 36 -space T -hangar will also start
in 1998/99 and is part of the planned debt issuance. The $750,000 project will be repaid from hangar lease
revenues.
Urban Design
Policy End: Georgetown has a positive, identifiable image and an attractive appearance.
Means for Accomplishment
Late in 1997/98, Council adopted the Urban Design Plan Element of the Century Plan as recommended by the citizen -
led work group. Significant staff time will be allocated to implementing the Plan, identifying policy decisions for
Council action and adjusting development standards. Code enforcement continues to be an important priority for the
community. Over the last two years, numerous dangerous buildings have been removed and neighborhoods improved.
In 1998/99, funds to pay for the demolition of more substandard structures are included. Staff will also be reviewing
the current process for improvements and streamlining among divisions involved.
Utilities/Energy
Polio Georgetown's utility systems provide safe and reliable service which meets the needs of all citizens and
promotes the economic health of the community.
Means for Accomplishment
Community utility services continue to be a priority for Georgetown. Issues include infrastructure expansions and
improvements, energy and resource conservation, and protection of investments in the face of an approaching
restructuring of the electric market. The proposed budget includes numerous capital improvements and other projects
which meet Council priorities.
Customer Choice & Control (CCC). The CCC project is the City's fixed, wireless network and is critical to the
City's competitive electric strategy, the water conservation strategy and to improving the quality of services provided
to Georgetown. The first phase of CCC, to be fully operational in 1998/99; consists of the automated electric and
water meter reading system and the electronic control and scanning system (System Control and Data Acquisition or
SCADA) for the City's electric and major water and wastewater infrastructure. The system allows time of use rates
and system management tools that give the City staff the ability to manage the efficiency of the electric system and
peak electric and water demands. Future phases of the system will allow quality of life services such as home security
and fire alarm systems.
Electric. Electrical restructuring has been discussed and debated for some time. The most current estimate is January
1, 2002, although the City's target for preparation remains at January 1, 2001. In anticipation of restructuring, the City
began developing a market and services strategy during 1997/98. As a result of this process, the budget includes
1998/99 Operating Plan Element - Transmittal Letter Page vii of xi
$453,000 to purchase and install a customer information system to replace the current utility billing system, as well
.as, implement a variety of marketing initiatives and expanded customer services.
Utility Capital Projects. Georgetown will spend $11 million on capital projects to maintain and expand the City's
utility systems. The significant projects are highlighted below.
Electric $3.2 million Continuation of tree trimming program; installation of new services in Sun
-City, Berry Creek, Crystal Knoll, Katy Crossing, and Georgetown Village;
upgrade feeders from Gabriel Substation�to serve northeast section of City,
including Pecan Branch Plant and Park; and neighborhood lighting for
crime prevention.
Water $2.4 million Completion of the Austin Ave. (12th to 17th Street) waterline, Sun City
pump station, Park Water Plant upgrade, Rabbit Hill pump station, water
park project, and completion of the fixed wireless meter reading system.
Wastewater $4.2 million Completion of Williams Drive Wastewater, Smith Branch Phase II, Smith
Branch Feeder, Shell Spur (for Fire Station #4), Oakcrest Rehabilitation,
and engineering and acquisition of easements for the $4.8 million Pecan
Branch Wastewater Plant to be constructed in 2000/01. '
Stormwater Drainage $1.2 million TXDOT Retaining Wall; Norwood West, San Gabriel Overlook, and
Gabriel View drainage will be completed during the year. Berry Creek
drainage, Gabriel View and Elm Street and 9th will be initiated, ongoing
curb and gutter program will continue.
Budget Highlights: Financial
The City is committed to sound financial planning and direction as reflected in the Finance Policy portion of the
Georgetown Century Plan and the Budget and Financial Policies adopted as part of the budget. It has been the
Council's goal to achieve Finance Focus End 5.1 which states "Each utility system is a self -supported operation that
provides a desirable and affordable level of service." All -of the city's enterprise funds, including the Airport, are
self-supporting beginning with the 1998/99 budget. The City has also met its commitment for minimizing rate and
tax increases by including no utility rate increases in electric, wastewater and water. Property tax rates have been
increased by 5.9%; however, the tax rate is comparable to the rate ten years ago and is among the lowest in the area.
The minimum contingency reserve has been increased from $7.02 million to $7.34 million to meet policy
requirements. Amore detailed look at the City's revenues and funds is provided in the Financial Summary Section.
Debt. The $4.75 million planned general obligation debt issuance will fund facility improvements or replacements
needed over the next two years. The debt will provide funds to expand/replace the Public Library, construct a new
animal shelter, renovate City Hall, build a 36 -space T -hangar at the Georgetown Airport, renovate and expand the
Community.Owned Utilities compound, construct Fire Station No. 4 at Shell Spur and purchase land for a future south
side fire station. The debt will require a'h cent, or 1.4%, in additional property taxes to be levied as noted in the
earlier discussion on property tax rates. No utility revenue debt is anticipated until 1999/00. All utility system projects
will be funded through available cash from operating revenues and impact fees or from existing bond proceeds.
In June 1998, the City refunded all $24.67 million existing utility system revenue debt to modernize existing
covenants, remove reserve requirements and take advantage of low interest rates. This transaction resulted in an
1998199 Operating Plan Element - Transmittal Letter Page viii of xi
annual debt service savings of $322,000 or 13%. This will dramatically improve existing cash flow in all of the utility
funds and will reduce the cost of future debt issuances because of the eliminated reserve requirements. The revenue
debt coverage ratio for 1998/99 will be 6.56, far above the 1.5 minimum requirement.
Revenues. The City's revenues (as shown in the chart) continue to rise due to increased property taxes from new and
annexed areas, sales tax revenues and demand for utility services. The City's overall customer base for its electric,
sanitation, wastewater and water services has increased at a rate of 10% or more for the last two to three years.
However, the growth is expected to level out at a more reasonable 5 - 7% per year.
97/98 98199 99/00
96/97 Projected Adopted Projected
Actual Actual Budget Budget
OPERATING REVENUES:
Property taxes
Sales taxes
Charges for Services
Capital Recovery Fees
Service Improvement Fees
Utility Revenues
Grants
Interest
Other Revenue
Total Operating Revenues
OTHER SOURCES:
Bond Proceeds
Fund Balances
Interfund Transfers
2,494,648
3,464,907
4,226,131
4,486,426
2,159,689
2,370,000
2,572,450
2,798,570
4,419,475
5,321,997
6,416,950
6,835,635
274,555
333,000
398,685
480,250
2,215,216
1,995,200
1,360,425
1,360,425
25,111,716
27,181,601
29,048,395
30,792,490
1,211,759
1,727,392
2,666,918
125,798
803,117
1,194,670
1,194,826
1,024,849
5,616,840
8,282,407
8,410,289
5,598,930
44,307,015 51,871,174 56,295,069 53,503,373
9,350,046 11,670,258 4,750,000 2,900,000
(1,618,692) (6,686,758) 6,062,665 5,759,579
5,368,235 6,265,772 6,163,479 6,711,669
TOTAL REVENUES & SOURCES 57,406,604 63,120,446 73,271,213 68,874,621
General Fund. Although all other City funds will be self-supporting, the General Fund continues to rely on
substantial transfers. The deficit will remain large over the next several years as outlined in the fiscal impact study
prepared as part of the analysis of Sun City. In 1998/99, the General Fund and Joint Services Fund will require a
"what it takes to balance" transfer of $2.5 million. The transfer is less than the 1997/98 transfer of $3.5 million;
however, the transfers are still higher than the long-term goal of reducing them to less than $1 million. The Council's
commitment to gradually increase the property tax rate will help alleviate some of the transfers. Additional efforts
will be managed through the policy limit on transfers and limiting growth in City services available for the short term.
Electric, Wastewater and Water Funds. The City's electric, wastewater and water systems are projected to generate
revenues sufficient for operations and maintenance and some system improvements without rate increases for the
seventh consecutive year. The funds are projected to have sufficient revenues and developer reimbursements to
service future debt without a rate increase for at least the next three fiscal years. These funds will also continue to pay
debt service obligations, ongoing operations, and supplement shortfalls in the General Fund.
Sanitation & Stormwater Drainage Funds. The Sanitation Fund includes proposed $0.50 residential and 7.5%
commercial rate increases to cover additional costs incurred for the new contract. This is the first sanitation rate
increase since October 1995. The stormwater drainage fee increases $1.75 to $2.25 beginning October 1998, and will
1998199 Operating Plan Element - Transmittal Letter Page ix of xi
pay the debt costs for the capital improvement program included with this budget proposal with no operating deficits
in the fund.
Internal Service Funds. The internal service funds provide administrative, information, facility, and fleet services
and asset replacement to City programs and departments by charging lease and administrative fees.
Information Resource Fund $941,000 Add and replace desktop, network and application technology and
hardware, including 33 new and replacement PC's, installation of
human resources software system and conversion to Microsoft
Office.
FnCilitios Alflyintovnm-o F7md om9,nnn R„ilding maintenance and repairs to include HVAC, janitorial
services and minor remodeling.
Fleet Management Fund $1,358,000 Add or replace 19 vehicles.
Special Projects & Special Revenues. The Operating Plan reflects significant grant projects in 1998/99. State,-
funded
tate-funded economic development grants totaling $4.5 million are included in the Capital Projects section.
Emerging Issues
As we look toward the year 2000 and beyond, there are several issues that must be considered in order to maintain
Georgetown's friendly sense of community that is so important.
Electric Restructuring. Although Georgetown has already taken many steps to prepare for electric restructuring, the
developments in state and federal legislation and the energy and telecommunications industries will continue to be
closely monitored. With a new state legislation session beginning in January 1999, staff will be heavily involved in
proposed legislation.
Rights-of-Way/Franchise Fees. Recent state and federal legislation in telecommunications have brought a potential
threat to the, ability of local government to control and collect fees for use of public rights-of-way. The Texas
legislature appointed an interim committee to study potential changes that would adversely impact local government's
control and revenues. Staff is already participating in and supporting efforts to educate legislators in order to maintain
local government controls.
Fire Services. The past few years have seen Georgetown's fire services move from a rural, volunteer -based
organization to a suburban, paid -force. The commercial and industrial growth the City is experiencing will further
require Georgetown's approach, organization and philosophy to change to meet this type of expansion.
Youth & Families. A critical point to maintaining the sense of community in Georgetown as it grows is how we
approach our children and youth. The children and youth focused programs in the Recreation Department, the
Library, the Youth Services Team in Police Services, and the Georgetown Project all address this growing need.
Air Quality. As part of the greater Austin area (Travis, Williamson, and Hays Counties), Georgetown will be greatly
impacted by the Environmental Protection Agency's new air quality standards. With these new standards, the Austin
MSA will likely be declared a non -attainment area. The budget includes funds to participate with a regional group
that is working to encourage voluntary behavior changes to reduce air emissions in the Austin area. .
1998/99 Operating Plan Element - Transmittal Letter Page x of xi
Year 2000. The City's project to review its exposure to the year 2000 changeover is underway. No significant
problems have surfaced and most major systems are already year 2000 compliant. However, additional council
contingency funds were set aside to correct any failing systems or equipment.
Water Supply. The City's existing raw water supply was originally projected to meet demands through 2040. With
the significant growth, the Trans -Texas statewide water plan and new alliances, the City's lonb term water supply has
been reduced somewhat, but will continue to be reviewed and reevaluated.
Conclusion
Growth issues will continue to dominate Council and staff time. The staff is prepared to respond to the growth and
associated service demands. I believe this budget accomplishes the goals set forth by the Council and improves the
productivity of employees through the provision of needed equipment and essential training. I greatly appreciate the
leadership and the direction each of you provided during the retreat and in the preparation of this budget document.
Finally, I acknowledge the tremendous contributions and teamwork of all City staff in preparing the 1998/99 Annual
Operating Plan Element. Most notably, I want to recognize Susan Morgan, Director of Finance and Administration;
Micki Rundell, Accounting Director; Laurie Brewer, Senior Accountant; and Laura Eix, Finance Administrative
Assistant for their long and dedicated hours in preparing the Operating Plan.
Respectfully submitted,
Bob Ha
City Manager
1998/99 Operating Plan Element - Transmittal Letter Page xi of xi
City of Georgetown Off i cials
LEO WOOD
Mayor
LORENZO VALDEZ
Councilmember Dist. 1
LEE BAIN
Councilmember Dist. 4
FERD TONN
Mayor Pro Tem
Councilmember Dist. 7
SHELLEY DAVIS
Councilmember Dist. 2
CHARLIE BARTON
Councilmember Dist. 5
SUSAN HOYT
Councilmember Dist. 3
CHARLES BURSON
Councilmember Dist. 6
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CHARLES BURSON
Councilmember Dist. 6