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HomeMy WebLinkAbout02 - OverviewOctober 1, 1996 To the Honorable Mayor Wood and members of the City Council: Georgetown residents share a basic concern that the high quality of life currently found in this community should be maintained and enhanced. The City plays an important role in defining quality of life by developing and maintaining a pleasant, attractive, dynamic, and healthy community. The Georgetown Century Plan is the comprehensive strategic plan documenting the process by which Georgetown will strive 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 work and reflects the direction established by our citizens and the City Council to meet existing challenges and effectively plan for future needs. Guidance in preparation and approval of the Operating Plan is arguably the most important service that the Council provides during the year. The budget process is designed to produce a management -oriented budget document with the fourfold theme of providing financial control, management information, planning and policy development. The 1996/97 Operating Plan is based on the ends established by the Council at this year's retreat, the subsequent budget workshops, public hearings and the City's mission statement: The Mission of the City of Georgetown is to initiate action which will preserve and enhance the quality of life and Georgetown's unique character by preparing for the future through the: • Preservation of Georgetown's rich heritage and natural resources; • Promotion of well-planned development, cost-effective professional management and competent, friendly services; and • Protection of its citizens, the environment and all other assets. Budget Overview The 1996/97 operating and capital budget, or Operating Plan, represents a $65.9 million total financial plan. This represents a 16.7% increase from the 1995/96 budgeted expenditures. The $9.4 million increase in this financial plan includes twenty-three new full time staff positions for fire, police, library, planning and code enforcement as well as additional utility and street crews; public safety software and planning database improvements, additional grants for economic development and housing and a $4.6 million increase in capital improvement projects. The increases are a direct result of the City's staggering 10% growth rate over the prior year, the increasing demand for City services and the pressures of a changing regulatory environment. Georgetown's total taxable appraisal value increased 19.7% to $633 million. The increase is primarily due to $91 million of new property added through annexations and new construction. Existing property values CITY HALL ° 609 MAIN STREET POST OFFICE BO: 409 1 GEORGETOWN, TEXAS 713627-0409 1 51 2/930-3651 " TDD 51 2/930-3549 1 FAX: 512/930-3659 increased a modest 2.7% after two years of sharp increases. The 1996/97 property tax rate is $.3785 per $100 property valuation, compared with $.37 in 1995. It is 2.3% above the effective tax rate of $.36754. Georgetown's community owned utilities (electric, sanitation, stormwater drainage, wastewater and water) continue to maintain excellent operating performance and allow for system expansion and improvements with no base rate increases for electric, wastewater or water services since 1991192. There are also no rate increases included for sanitation or stormwater drainage. Economic Outlook Georgetown and the Central Texas region continue to experience strong economic growth. Sales tax figures for Georgetown increased an average of 7% per year for the last three years with similar growth anticipated in the coming years. Housing starts have increased drastically in the past few years. The City, Georgetown Industrial Foundation and the Chamber of Commerce continue to be successful in bringing increased economic activity and opportunities to the area. These cooperative efforts have helped build a diversified and stable commercial and industrial base to keep Georgetown as a strong, economically viable piece of the region and not merely a "bedroom/commuter' community. Georgetown is part of the Austin Metropolitan Statistical Area (MSA) which is also enjoying continued prosperity. Sales tax figures show a 9% growth rate over the previous year and employment growth has been 6% annually for the past four years. The Texas Comptroller for Public Account's economic forecast projects that the Austin MSA will see continued growth. Sun City Georgetown. The Del Webb Corporation began development of a 9,500 home, 5,300 acre, active retirement community called Sun City Georgetown in 1995. Sun City Georgetown, on the northwestern edge of the City, will provide 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 infrastructure as well as annexation of the site. 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, 1996, 384 homes have been completed and hundreds more are in various stages of construction. The impact on service demands and operating costs is evident in the new positions being added in this years budget. The initial phases of water, wastewater and electric infrastructure to serve the development were completed in 1995/96. The City's third fire station, located within the development, is scheduled to begin construction in the spring of 1997. 1996/97 Operating Plan Element'- Transmittal Letter Page ii of xi Budget Highlights: Ends and Means At the annual retreat, the City Council ranked the fourteen Century Plan policy areas according to importance for the upcoming year. The highest ranked areas were Transportation and Utilities/Energy. The operating budget is a direct reflection of these priorities. The following summarizes the means by which staff will accomplish the Council's ends for the City of Georgetown. 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 The Council chose transportation as the most important issue facing Georgetown in the upcoming year. With the growth that is occurring in Georgetown now, traffic volume and flow are of chief concern. This budget continues the City's proactive approach to transportation planning by providing significant funds for projects to meet transportation needs. The budget provides $2.7 million in new street improvement projects for 1996/97 including: • Construction of Northwest Boulevard to Serenada Drive, • Widening of Lakeway Drive from Williams Drive to Lonesome Trail, • Widening of Airport Road from Lakeway Drive to Vortac, • Improvement of 22nd Street at Leander Road (Texas Capital Fund grant), • Widening of San Jose Street at 22nd Street, • Realignment of San Jose Street at Holly Street, and • Rebuilding of 15th Street from Maple Street to Church Street. Road improvements started during 1995/96 that will be completed in 1996/97 are the • Construction of Northwest Boulevard to Lakeway Drive, Construction of Quail Valley from F.M. 1460 to Maple Street, • Rebuilding of Country Club Road to the San Gabriel River, • Rebuilding of 15th Street from Hutto Road to Maple Street, and • Construction of Railroad Street. In addition to the above street improvements, numerous other improvements are included in this budget. • A Rapid Response Team for the Street Department is added. This two -person crew will respond immediately to emergency calls and minor service requests, including pot hole repairs, graffiti cleaning, dead animal removals from roads, etc. Crews working on larger projects will not be interrupted for these trouble calls. This response team will significantly enhance the City's attention to its customers while allowing larger projects to progress with fewer interruptions or distractions. • The extension of Leander Road from Austin Avenue to Farm to Market 1460 will begin in 1996/97. The City's cost for this project, $700,000 for right-of-way purchases, is also included in the Annual Operating Plan. The "flipping" of Interstate Highway 35 ramps around Williams Drive, the City's share of a bridge below the Lake Georgetown dam and the Rivery bridge across the North San Gabriel River are included in the five year capital improvement program (CIP) schedule. • This is year three of the Council's five year plan to increase the property tax revenues dedicated to streets. The proposed budget allocates four cents of property tax revenues (up from 3.3 cents in 1996/97 Operating Plan Element - Letter to Council Page iii of xii fiscal year 1995/96), or $253,000, for ongoing street maintenance, repair and construction. The ultimate goal of five cents will be met in 1998/99. • As part of our ongoing efforts to recognize the full cost of maintaining assets, a special revenue fund (SRF) has been established to pay for the Street Department and street improvements. All revenue from the dedicated property tax and the franchise fees paid by utility providers will be spent exclusively on street operations, maintenance, and improvements. Franchise fees relate to streets in that companies pay a franchise fee for use of public rights-of-way. The SRF functions like the internal service funds in concept and scope. Utilities/Energy Policy End: 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 were identified as another top priority for 1996/97. Issues include infrastructure expansions and improvements, energy and resource conservation, and protection of investments in the face of an approaching deregulated 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 implemented during 1996/97, 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 $4.1 million cost is allocated among Electric, Water and Wastewater CIP and will be funded with utility system revenue debt. The City will implement time of use rates by April 1, 1998. The new rates and system provide tremendous ability to manage the efficiency of the electric system and reduce peak electric and water demands. Future phases of the system will allow quality of life services such as home security and fire alarm systems. Water. The 1996/97 budget includes $3.8 million in water projects. Retrofitting for the Lake Water Treatment Plant will expand rated capacity from 5.2 to 7.5 million gallons per day. The City will also replace a line on Austin Avenue from 12th to 17th Streets and construct the West Loop water line from DB Wood Road to Williams Drive. The latter project will tie Oakcrest to the City's system and will eliminate that neighborhood's low water pressure. The extensive water conservation education campaign, started this past summer, will continue in 1996/97. The next phase of the campaign to reduce our peak water demands is to implement conservation rates for residential customers with high usage. The rates are scheduled to be adopted in January 1997. The higher rates should discourage excessive water usage as well as shift the financial burden of expanding the water treatment plants to customers with higher usage. Another high Council priority is to secure adequate water supply for the future. The budget includes $210,000 to purchase rights to an additional 10,000 acre feet of water from the Brazos River Authority. This purchase will nearly double our current supply, bringing our total water supply to 22,173 acre feet. This level will meet Georgetown's water supply needs through 2038. Wastewater. The 1996/97 budget includes $1.8 million in wastewater projects. Projects include the extension of sewer lines out Williams Drive and the planning, permitting and engineering work for the Pecan 1996/97 Operating Plan Element - Letter to Council Page iv of xii Branch Wastewater Treatment Plant to be built in 1997/98. The budget also includes the reconstruction of wastewater collection lines along Hart Street and in the Oakcrest area. Electricity. Electrical deregulation has been discussed and debated for some time, but no specific time frame was ever mentioned. This summer, however, U.S. Congressman Schaefer introduced a bill calling for electric deregulation to take effect by December 15, 2000. Electric wheeling will force power suppliers to compete for customers. Georgetown, having already anticipated such a law, is well positioned to compete. Implementation of the CCC system, reduction of General Fund transfers, continual customer service improvements and other strategies should give the City of Georgetown a competitive edge. In addition to actively pursuing these strategies, the budget includes $3.9 million for electric capital projects and three additional electric workers to keep up with the expansion of the City's electric system. The City will soon have over 10,000 electric customers. This is a 22% increase from two years ago. 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. Means for Accomplishment Fire Services. The budget includes issuing debt for the construction of a fire/EMS station in Sun City. SIP fees paid by Del Webb will be used to purchase the additional fire pumper truck for the station. The station, while primarily functioning as a fire station, will provide a variety of city services. Citizens will be able to pay utility bills, file police reports, volunteer for programs, or talk with a city inspector at the same facility. The budget includes four additional firefighters to meet current service demands. Additional firefighters will be needed in 1997/98 to staff the new station. Police Services. Significant additional resources are included to maintain the City's commitment to community oriented policing. The growth will soon require the creation of a fourth patrol district. The addition of three new officers in 1996/97 is the first half of a plan to implement the new district in 1997/98. The budget also includes a K-9 officer that will greatly enhance relations with the youth and the rest of the community. Continuing the City's commitment to a drug free community, the budget includes new equipment to increase the effectiveness of two drug enforcement officers. Two additional communications operators are added to maintain sufficient dispatch support. Public Safety. The 1996/97 budget includes a needs assessment for a new public safety facility and the acquisition of land for the site. This facility, which is included in the new Facilities & Services Functional Plan, is planned for 1998/99. Both Fire and Police will benefit significantly from the purchase and initial implementation of a new public safety software system. The budget includes $260,000 for the first phase of the public safety software. Employee & Organizational Services. The commitment to the "pay for performance" system is continued in the budget with funds set aside for employee merit increases. The market adjustments done in 1995/96 have greatly increased the City's ability to recruit and retain quality staff. Maintaining high quality city employees and minimizing turnover are critical to keeping good customer service adequate and to meet the demands of rapid growth. Public Library. Four additional part-time personnel and one part-time to full-time upgrade for the Public Library are included. The new staff will improve library service by allowing day and evening shifts, quicker tum around on books and more front line service to patrons. Also, the budget for new library books has 1996/97 Operating Plan Element - Letter to Council Page v of xii been increased by 25% to $71,000. Similar increases over the next four years will bring the Library up to the national standard for books per capita. Information Resources. The City will continue to upgrade and expand its information resources and systems. The City computer network that will link all city buildings will be complete by December 1996. This will enhance productivity and customer service. Significant funds and staff resources are directed to the City's planning and Geographic Information System (GIS) databases. These projects are key to the new redesigned development process included in this budget. The public safety software system and replacement of parks and recreation software are also planned. Finance Policy End: All municipal operations are conducted in an efficient business -like manner and sufficient financial resources for both short-term and long-term needs are provided. Means for Accomplishment Staff will continue to plan for future growth and to time project construction and related debt issuances to minimize tax and rate increases. The 1996/97 budget includes a `what it takes to balance" transfer out from the Electric Fund of less than $1 million, compared to more than $2 million in 1993/94. The General Fund continues to require large subsidies from the utility funds, but rising sales tax receipts and new property have helped to offset some of the needs. The greatest challenges facing the City will be expanding and maintaining roadways without large tax increases and delaying construction of both the next major water plant expansion and the raw water supply line from Lake Stillhouse Hollow. Education Policy End: Diverse and comprehensive educational opportunities are available through public and private cooperative efforts. Means for Accomplishment The joint automated phone information system shared between Williamson County and the City will be completed during the year. A grant proposal will be submitted to provide public Internet access at the Library. Also, staff will support, where appropriate, the Austin Community College Extension Program at Georgetown Independent School District and the Workforce Development and Smart Jobs Programs for local businesses. Environmental & Resource Conservation Policy End: The physical qualities that make Georgetown attractive are protected. Means for Accomplishment An emerging issue that the City will face in the upcoming year deals with personal communication system (PCS) towers. Responding to the growth in the number of pager, portable phone and car phone users, and the need to reduce the federal deficit, the Federal Communications Commission (FCC) has begun auctioning off public.airwaves to the highest bidder. By later this year, there could be numerous companies establishing wireless networks in Texas. The increased competition is resulting in the proliferation of PCS towers across the nation. Staff is currently researching the implications for Georgetown and planning the City's approach for accommodating the PCS providers, while also preserving the aesthetics of the community. 1996/97 Operating Plan Element - Letter to Council Page vi of xii Health and Human Services Policy End, Comprehensive, affordable health and human services aro available through public and private organizations. Means for Accomplishment An exciting and proactive undertaking planned for next year is the Georgetown Project. The project will Gose 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 attempts to coordinate 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 Hospital, Southwestern University, the University of Texas, and local businesses. The City of Georgetown intends to be an active partner in this coalition and will be the largest single funding source with $70,000 included in the 1996/97 budget. City divisions will coordinate projects to address issues or concerns highlighted by the efforts of the Georgetown Project. Growth and Physical Development Policy End: 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 1,400 new building permits this year compared to 602 in 1994/95. Revenue estimates for 1996/97 are based on a projected 1,200 permits. To encourage continued development and prosperity within our community, the budget includes implementation of a redesigned development process. The new development process will streamline procedures and enable one-stop processing. After many months of research, planning, and discussions with local developers, staff has designed an outstanding model for excellent customer service. The greatly increased development activity dictates several additional employees be added. The redesigned process will reduce the number of additional employees needed to six additional positions. The positions will include two development planners, a development engineer, an electric system planner, a development accounts specialist and a telephone receptionist. Significant improvements to the planning database and additional office space are included as part of this project. The redesigned process also adds a code enforcement officer to better enforce city codes. 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 of Georgetown is committed to encouraging diversified growth and establishing a broad tax base. The 1996/97 budget continues funding for the Georgetown Industrial Foundation at $140,000. Increased emphasis is needed on sales tax generating companies. An economic development entity will be created to facilitate potential business creation, expansion, and relocation. The Advanced Metal Systems, Inc. project is anticipated to move forward with funding from the Texas Capital Fund for street improvements. 1996/37 Operating Plan Element - Letter to Council Page vii ofxii The Reedholm Instruments building will be completed during the year. Staff will work closely with Williamson County officials to develop the exposition center/show barn. Historic Preservation Policy End: Prehistoric, historic, and cultural resources are preserved, protected and promoted. Means for Accomplishment To preserve and maintain the historic beauty of our City's downtown, the budget dedicates an additional park worker exclusively to the downtown. The worker will maintain the square and Founders Park by picking up trash, maintaining the landscaping and park benches, and cleaning the public restrooms behind Grace Church. Furthermore, $20,000 has been allocated to renovate the "shotgun" house located behind the Public Library_. This project will require extensive community involvement to determine its optimum use. Also, the City has just purchased the Heritage Baptist Church site. Plans will be developed during the year concerning the type and scope of a downtown parking facility for that location. Finally, both funds -and staff time are allocated to develop the Historic Preservation Plan Element of the Century Plan. Urban Design Policy End: Georgetown has a positive, identifiable image and an attractive appearance. Means for Accomplishment Late in 1996/97, staff will begin the process to update the Urban Design Plan Element of the Century Plan. The working groups and plan drafting will occur in 1997/98. Governmental Affairs Policy End: A high level of cooperation and involvement exists among Georgetown's citizens and governmental organizations. Means for Accomplishment Staff will devote some time, during the legislative session, as members of the Texas Municipal League Fiscal Impact Analysis Team and the Congressional Budget Office Local Fiscal Impact Team. The City will work with Williamson County and the City of Round Rock on crime scene investigations and will continue work on the 800 MHZ communications tower. During the. current year, the City participated in a joint fuel purchasing contract with a number of entities. The joint savings were significant. The City will continue to be a part of this joint agreement and pursue others. The budget also includes $10,000 of seed money for Georgetown's 150th birthday celebration committee. Housing Policy End: The City cooperates with builders, developers and property owners to provide safe and adequate housing opportunities for all citizens. 1996/97 Operating Plan Element - Letter to Council Page viii of xii Means for Accomplishment In fiscal year 1996/97, the City will again apply for another Home Grant. Also, street improvements will be made on 22nd and Leander Streets as part of the tax credit apartment complex, "The Oaks." Recreation and Cultural Affairs Poligy End: All citizens actively participate in community -wide social, cultural, and recreational activities. Means for Accomplishment Significant parks and recreation projects include paving the parking lots at Blue Hole Park and the new athletic complex portion of the Hike and Bike Trail. Paving the Blue Hole lot continues the City's efforts to beautify and increase the use of the park by the community. In that same spirit, $130,000 to build restrooms at Blue Hole Park and to renovate the restrooms in San Gabriel Park is also included in this budget. The park near Walnut and 17th Streets will continue to be improved. Initial planning will occur for a ten -acre park in Reata Trails. We will initiate the grant request to the Texas Parks & Wildlife Department for continuation of the River Corridors project. Budget Highlights: Financial Financial Summary 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. The City has historically maintained relatively low debt and used operating revenues to fund both City services and capital improvements. In 1994/95 the City issued $12 million in revenue debt to fund infrastructure for Sun City and other growth; however, no additional revenue debt was required in 1995/96. Debt issues planned for 1996/97 are $1.6 million for the Sun City Fire Station construction and purchase of public safety facility land, $2.9 million for street projects, and $4.1 million for the Customer Choice & Control (CCC) system. The CCC project is the only utility system revenue debt in 1996/97. The general obligation debt issuances in 1996/97 will result in an estimated 7% tax increase, or 2.6 cents, in 1997/98. The revenue debt coverage ratio will be 4.16, far above the 1.5 minimum requirement. The minimum contingency reserve has been increased from $5.7 million to $6.4 million. The City has also met its commitment for minimizing rate and tax increases by including no utility rate increases. Although property tax rates are increased by 2.9%, the tax rate is comparable to that in 1988/89 and is among the lowest in the area. Significant Financial Issues Revenues. The City's revenues (as shown in the chart below) continue to rise due to increased sales tax revenues and demand for utility services. The City's overall customer base for its electric, sanitation, wastewater and water services has historically increased at 4% per year. Beginning with 1995/96, the customer growth has exceeded 10%. 1996/97 Operating Plan Element - Letter to Council Page ix of xii 95/96 Projected Actual Property Taxes 2,006,025 Sales Taxes 1,872,600 Electric 13,868,456 Water 5,691,299 Wastewater 3,162,000 Sanitation 1,252,021 Stormwater Drainage 251,861 Capital Recovery Fees 2,802,050 Misc. Fees & Revenue 2,965,157 Airport 431,940 Interest (All funds) 952,427 Grants & Special Revenue 1,398,840 Bond Proceeds 0 Utility Franchise Fees 740,244 Fund Balances 2,118,062 Subtotal 39,512,982 Interfund Charges & Transfers 10,998,396 TOTAL 50,511,378 * Percent change of 96/97 Adopted from 95/96 Projected Actual General Fund. The General Fund will have a substantial, but diminished, deficit. In 1996/97, the General Fund will require a `what it takes to balance" transfer of $1.8 million. The transfer is 16.3% of budgeted expenditures, compared to 1995/96, where it was $2.3 million or 24.1 % of budgeted expenditures. The 1997/98 opening of the Sun City Fire Station, and other additions required to keep up with growth, will cause an increase in the transfer next year. The rising taxable property over the past four years has helped the fund's position. The increasing service demand will be managed through transfers and limiting growth in City services available for the short term. City staff will continue to seek strategies to provide Council with long-term recommendations to improve the financial condition of the General Fund. 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. The funds are projected to have sufficient revenues and developer reimbursements (Del Webb) to service the planned debt without a rate increase for at least the next two fiscal years. These funds will also continue to pay debt service obligations, ongoing operations, and supplement shortfalls in the Stormwater Drainage Fund and the General Fund. The City adopted capital recovery fees in 1995/96 that begin accumulating during 1996/97. These fees will provide funding for wastewater and water infrastructure expansion in future years. Sanitation Fund. A significant accomplishment in the budget is that the Sanitation Fund will be self supporting for the first time. This has been accomplished by small rate increases and cost containment measures implemented over the past two years. In 1996/97, the City will eliminate the free, 3 -yard per month disposal at the Collection Station. The monthly bulky waste pickup program already provides a 1996/97 Operating Plan Element - Letter to Council Page x of xii similar service and will continue to be provided without additional charge. Customer rate increases may be needed in the future as the EPA's Subtitle D regulations regarding landfills continue to increase service costs. Internal Service Funds. The City's use of internal service funds to provide maintenance, insurance and replacement of vehicles; repair and maintenance of City -owned buildings and upgrades and expansion of computer hardware and software has proven successful in sustaining the funding levels needed to maintain the City's assets. In 1996/97 the City's internal service funds will provide $362,625 to add, upgrade and replace computer hardware, software and training including 31 new and replacement PC's; $260,000 to purchase the first phase of a new Public Safety Computer System; $540,250 for database and automation for the redesigned development process; $1,220,694 for 18 replacement vehicles and 11 additional vehicles; and $341,622 for building maintenance and repairs. Special Projects & Special Revenues. The Operating Plan reflects significant grant projects in 1996/97. State -funded economic development grants totaling $2.8 million for Reedholm Instruments, Advanced Metal Systems and various others are included. The budget also includes $337,500 for a 1996 CDBG Home grant that is pending approval. Personnel. The 1996/97 Plan shows a net increase of 23 full-time employees. Staff additions have been across-the-board. The rapid rise in City service demands resulting from growth and the Sun City development will provide great challenges to City staff to maintain existing services. The employee - developed Values Statement (as presented on the inside cover of this document) continues to guide staff in providing services and meeting the challenges of the growing economy. The Operating Plan also includes approximately $370,000 designated for staff salary adjustments and performance incentives. Conclusion Growth issues will continue to dominate Council and staff time. Sun City Georgetown will generate substantial growth for years to come. 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 1996/97 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 Nowiski, Finance Administrative Assistant for their long and dedicated hours in preparing the Operating Plan. Respectfully submitted, til tom/ Bob Hart City Manager 1996/97 Operating Plan Element - Letter to Council Page xi of xii City of Georgetown Officials } - - - LEO WOOD Mayor GEORGE ARROYOS Councilmember Dist. 1 SHELLEY DAVIS Councilmember Dist. 2 FERD TONN Mayor Pro Tem Councilmember Dist. 7 LEE BAIN Councilmember Dist. 4 SUSAN HOYT Councilmember Dist. 3 CHARLES BURSON Councilmember Dist. 6