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Home My WebLink AboutMIN 07.11.2017 CC-WMinutes of a Meeting of the Governing Body of the City of Georgetown, Texas Tuesday, July 11, 2017 The Georgetown City Council will meet on Tuesday, July 11, 2017 at 2:00 PM at the Council Chambers, at 101 E. 711 St., Georgetown, Texas The city of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require assistance in participating at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please contact the City Secretary's Office, at least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 113 East 81 Street for additional information; TTY users route through Relay Texas at 711. Mayor Ross called the meeting to order at 2:00 PM. All Councilmembers were in attendance, with the exception of Councilmember Nicholson, District 2. Mayor Dale Ross, Ana Eby, District 1, John Hesser, District 3, Steve Fought, District 4, Ty Gipson, District 5, Rachael Jonrowe, District 6, and Tommy Gonzalez, District 7 were in attendance. Councilmember Nicholson, District 2, arrived shortly after the meeting began. Policy Development/Review Workshop — Call to order at 2:00 PM A. Workshop overview, discussion and feedback regarding the FY2018 City of Georgetown Budget and Tax Rate -- David S. Morgan, City Manager David Morgan, City Manager, provided a presentation on the FY2018 Proposed Budget and Tax Rate. Morgan said that this presentation will be a look at the end of the 2017 budget and the proposed 2018 budget. Morgan spoke on where he sees this budget and where we see ourselves as a community. Morgan displayed a slide and spoke on things in Georgetown making history. He explained that there are truly special things happening in Georgetown and it is a privilege to be serving during this unique time. Morgan mentioned the Solar Wind Turbines, Downtown West, Hillwood Groundbreaking, the Cedar Breaks Elevated Storage Tank, the Garey Park Groundbreaking and the Southwest Bypass. I fiStory in ca I Iistoric Town" ki it rm, . Morgan provided an agenda for the presentation. • Budget o Legal Requirements o Structure o Process Budget Drivers and Areas of Focus • Budget by Funds o Revenues o Operating Expenditure Highlights and Variances Morgan spoke on budget requirements of the City Charter City Charter Budget Workshop(s) shall be held within the City limits of Georgetown in meeting(s) open to the public prior to the adoption of the Budget. At least thirty (30) days prior to the end of each fiscal year the City Manager shall submit to the Council a proposed budget presenting a complete financial plan for the ensuing fiscal year. The budget shall be finally adopted not later than the twenty-seventh day of the last month of the fiscal year. He reviewed the Budget Process to Date and discussed the purpose of the budget workshops for July 11 th and July 12th, 2017. He explained that this presentation is not the proposed budget, but close. He noted that staff wanted Council to have the opportunity to review things ahead of the final proposed budget to allow time for important feedback. Morgan said the final proposed budget would be presented to the Council on July 25, 2017. F.TVRVTTR-A�(110P(d lijtti ,lam Budget Process To Date • Council Goals established — Strategies developed — Budget impact evaluated for implementation • Council budget workshops completed — Public Safety, Transportation CIP, Parks Capital Improvements, Facilities CIF Utilities CIP Council Goals, Transit, Comp & Benefits — Today and tomorrow are final workshops before City Manager proposed budget submitted on 7/25 Morgan spoke on Georgetown's Budgeted Funds. Georgetown's Budgeted Funds • Governments use a fund system of accounting — A fund is an accounting device --balancing set of books to account for a specific area — Funds demonstrate accountability and source/use rather than profitability — Governmental Accounting Standards Board (GASB) guides fund accounting for governments — Funds are set up by the Council depending upon restrictions/conditions placed upon the fund • Budgetary cornphance demonstrated by fund — General Fund is for majority of traditional governmental services not restricted to be in another fund (; i, akt It115'a� Georgetown's Budgeted Funds • Governmental Funds— demonstrates flow of resources — General Fund — all departments not required to be in another fund; "bread and butter" govt. operations such as police, fire, streets, parks, library — Debt Service Fund — accounts for repayment of general debt — General Capital Projects — construction and acquisition of governmental assets — Special Revenue Funds — revenues restricted for a specific purpose r..• 61 okt ,I I t I%%il� Georgetown's Budgeted Funds • Proprietary Funds— used for activities that are primarily supported by the activities; fees/user charges are designed to support their costs Enterprise — (services to external customers) • Electric, Water, Stormwater, Airport — Internal Service — (services to internal customers) • Fleet, Facilities, Joint Services, information Technology, Self -Insurance Morgan discussed things to be covered over the next two days. He announced that the next day's meeting would be held at the GCAT Building and would begin at 3:00 PM. He explained that the plan would be to get through as much as possible this day and then continue with the rest of the presentation the following day. • • Budget Theme • Council Goals and related budget initiatives • General Fund — Revenues — Tax Estimates • Final Roll due on 7/25 — Expenditures — Department Highlights • Capital Projects & Preliminary Debt Estimates lli+hs,I Illi �s� • Special Revenue Funds- - CVB, Street Maintenance, EMS, Council Discretionary • Enterprise Funds — Utility Funds - Electric, Water, Stormwater — Airport Fund • Internal Service Funds — Joint Services, Facilities, Fleet, Information Technology — Self Insurance Fund • Summary and Direction from Council Morgan spoke on making history in an historic town and explained key budget highlights and budget drivers. il<3Rt�l Ill\yh� "Ataking Flistory in a Historic Towtt" • Continued growth + long-term investments = Making history in a historic town • The City is building upon a solid foundation • Council's vision and goals represent a balanced approach to local government — Life in Balance — Legacy Projects that prepare for future growth — Quality Growth — Respecting our History — Creating a Legacy for the Future 9;IOKt,I Ill%%P� Key Budget Highlights • Continued growth in sales tax • Continued growth in new and existing property value – property rate anticipated to decline ■ Only fee increase is anticipated in our solid waste rate – negotiating TDS contract renewal • Continued investment in capital projects for infrastructure - $53M of new projects for FY18 Improving the fiscal health of all funds – Building rate stabilization funds in Electric – Recommending contingency funds for Airport – Significant pay-off of start up costs in the EMS fund – Setting aside $300K of on-going revenue to plan for the impact of future fire station #i7 operations —wt ,.,..N.� Budget Drivers Morgan said the tax rate is anticipated to be lowered. He noted that a solid waste rate fee will be covered in a future briefing of the Council as the City works through the new contract with TDS. Morgan said there will be some revenues and some expenses. Morgan noted that all funds will be improving. He spoke on setting aside recurring revenue in preparation of $1 million in annual expenses for Fire Station 7. Morgan reviewed the Council Vision and Council Focus Areas and explained that the visions and focus led to 14 different strategies, which he described. art• • ., (',IOK(.I Itw' Council Vision • Georgetown is a safe, healthy, happy connected, and truly diverse community where people can live, learn, work, retire, and play in an environment where we have ready access, throughout our lives, to arts, culture, essential services, and the natural environment. • Our educated and skilled population, fiscally responsible governance, excellent infrastructure, and the beauty of our natural and man-made environments, attract new residents and businesses and enable us to create balanced and diverse employment centers and economic levels. Our strong sense of D' community connects us regardless of our cultural, •' age, ethnic, or economic differences. Council Goals & Budget Highlights 1. Attract, hire, develop and retain the best people, and compensate them for the value they create — Compensation • 3% average merit based increase effective in January 2018 • Implementation of market increases — No increases in health insurance premiums (self insurance fund) — Continuation of tuition reimbursement program — Update of employee survey in 2018 — Continued emphasis on training and development 2. Create a Customer Service Mindset Branding, performance metrics — Expansion of hours for Customer Care 3. Implement the special event and destination strategy — Marketing and opening of Garey Park — Increased conference transportation incentives In Convention and Visitors Bureau Council Goals & Budget Highlights 4. Build and maintain an entertainment platform/venues — Garey Park operations— April 2018 opening 5. Expand and diversify the tax base (increase commercial percentage) — Contract planning services for major projects — Fundingfor analysis of economic development proposals — Fiscal Impact Model completion in September "'rAIF "\"" 2017 NATURAL i i — South Georgetown TIRZ analysis complete in BEAM August 2017 CLOSE & — Airport facility improvements PERSONAL Council Goals & Budget Highlights 6. Accumulate funds to account for unfunded and unanticipated liabilities — Increase in fundingto Council SRF 7. Create a strategy to increase mobility — Continued funding of major transportation CIP — Transit voucher pilot program funding — Increase in traffic analysis funding in Public Works — Williams Drive study implementation — Full year implementation of fixed -route transit — Bike Master Plan — CIP improvements Airport Road, NW Blvd/Rivery, FM 971 a.1 Glok(o IUKn� Council Goals and Budget Highlights 8. Attain and maintain superior public safety and enhance the perception of safety — 3 Police officers (SRO/Patrol) — Fire Station 6 design/construction and Station 7 preparation — Major equipment • SCBA and other safety equipment replacement • Radio equipment (4 year plan) • Fleet funding 9. Attract younger workers/young professionals to the Community — Austin Young Chamber —onetime sponsorship — Workplace culture initiatives Council Goals and Budget Highlights 10. Improve communications and advertising — Communications team — Implementation from community branding vision process 11. Create and maintain outstanding aesthetics, and a welcoming appearance and spirit — Increased ROW maintenance r (If Ufa•I Itw,Nl� Council Goals and Budget Highlights 12. Create an asset maintenance and revitalization plan — Increased funding for Right of Way maintenance — Implement strategies from Street Maintenance working group — Begin SRF and ISF funding to set aside capital replacement for Garey Park assets — Funded Enterprise Resource Planning software for Finance & Human Resources — Continued implementation of Customer Information System — Continued funding of Internal Service Fund replacements for IT Facilities and Fleet — Increased aquatics maintenance staff person to respond to new facilities — Human resources — staffing, training, compensation, equipment, safety • � {114>KK�I IU1\P� Council Goals and Budget Highlights 13, Create Comprehensive Annexation Strategy — Completion of Fiscal Impact Model in September 2017 — Comprehensive Plan Update Starting Fall 2018 14. Monitor, promote, and communicate a long-term water and utilities plan and strategy — Electric Rate Study — Capital Project Implementation of Water/Wastewater Infrastructure Development Morgan spoke on budget drivers and population growth Budget Drivers — Population Growth • 3rd year in a row to be in the top 5 in growth — 5.5% annual growth — Over 40% growth since 2010 Popuhtfon U.S. Census Data k: �. yn �t Morgan provided a graph of Development Requests from 2012-2016 and spoke on comparisons. Development Requests 2012-2016 Comparison of Submitted Development Applications 60 c ° ° •feta a C y C • NIS i � T • iGs4 aaao.ng Nqw"ta co,11Ncrs of Deal{" oft nsnnynLaf Pro Ile 'J. Lj={rt Heilfy and r,PD�oa.rx�rss D. set rte bea Growth Impacts and Budget Highlights were shown next. Morgan described the need for requested positions. Growth Impacts/Budget Highlights • Engineering contract support position • Open Records processing coordinator • Office support at West Side Service Center • Increases in landscape maintenance contract (Parks) • Contract planning and plan review services — Project -based to expedite review — Inspection services contracted during peak times Growth Impacts/Budget Highlights • Police positions • Meter Tech • Water crew • Expansion of hours in Customer Care • ERP support • Sanitation contract negotiations Morgan spoke next on the implementation of key initiatives. • Garey Park Opening April 2018 — 5 full time positions and 1.5 part time positions • San Gabriel Park — Phased Renovation • Enterprise Resource Planning System — 3 positions: I.T., Finance, HR • Downtown West — Construction beginning Fall 2017 • Transportation Initiatives — o NW Blvd. Bridge - $10.5M • Rivery-Williams to NW Blvd. - $4.5M o FM 971 - $3.9M o Leander Road Design - $1.55M o FM 1460 - $1.95M o Austin Avenue HWY 29 to 2243 - $300K o Rock Street - $23K o Phase II Signal and Ramp Improvements - $253K • Solid Waste and Recycling o Solid Waste Master Plan o Transfer Station Study o Increases Related to Events and Programs • Medication take back program Household hazardous waste • Recycling at festivals Morgan spoke on the General Fund and the transition of individual funds. General Fund • FY 17 - Overall expenditures under budget at $58.8M — Slightly less than budget of $59M • FY 17 Projected revenues $1.6M higher than budget — 3% more than $57.5M budgeted Sales Tax Revenue was shown next. Sales Tax Revenue • FY17: $13.7M — 7.9% more than budget r I. • FY18: $14.3M — 4% over projection — Continued growth in retail, food and SALESTnx informational sectors w..d.. .... n �a �a r..w•.ny Morgan spoke on the General Fund — Fund Balance and described where the money comes from and how it is broken out for different departments. He explained that there is a very detailed review of this in the Council budget binders, which can also be accessed here: htti),s://finance.gi'orgetown.org/ This entire document can be found on the City's website on the Finance Department page. i r• .� .i, (r1OK(J Io%%RJJJN� General Fund — Fund Balance ■ $1.91VI in projected fund balance above required contingency Preliminary $1M towards Council Discretionary in 2018 budget — $750,000 in 2017 — $515,000in 2016 $575,000 increase in the FY2018 90 day contingency required by policy • Remaining $300,000 for one time expenses in FY2018 `i`Y:0:.6AanyAl dudcat Where the Money Comes From/Goes General Fund I Y)018 RI VI NI11 , S.ik� Tax I Y)O IR 1 XN NSI S r•ul•„ Adfnin 11. TranVrv, Sr V% P n, 1'A Morgan spoke on property tax revenue. He explained that there was not a final number yet, because of properties still under protest. He said that the County would be providing the final number very soon. Morgan said that he will be speaking more about early payoff of debt and managing future debt in his presentation on July 25th. Morgan provided a slide depicting Utility ROI and Other Revenue. Utility ROI and Other Revenue • Return on Investment- the „ ,.•,. community's return for owning its own utilities — Increasing due to customer growth • Development revenue projected to continue to follow current trends • Sanitation revenue - Contracted services for trash and recycling — Revenue anticipated due to likely fee increases related to contract renewal • Otherrevenues • continue to increase or remain stable Morgan spoke on the General Fund Analysis • Year to Year Comparison on expenditures 7.6% increase in overall expenditures • Included 2 major increases o Increase due to expected sanitation contract rate o Increase due to Garey Park Operations — overall expenditures • Increase of 5% net of those two areas o Less than census population growth of 5.5% Morgan provided Operating Budget Highlights FIRM MTTTTKT,�� i.lukc,l lawn Operating Budget Highlights Police Department — Step and increases based upon meet and confer discussions included in base — 3 officers (One School Resource Officer - SO%funded by GISD) r ails lw 5olvic• Clueing Ih•Y•ar: High School• Calf• log Sorvk• awing Ih• You: MkkM* Schools sn r'eN rat. ... I�4 iao� idos. Operating Budget Highlights • Fire Department — Step increases based upon meet and confer discussions included in base — Promotional assessment centers — Increases in operations based upon volume of calls — Equipment replacement: • Breathing apparatus • Dispatch monitors • Protective eqp.,,pment d , r ,i -. - ig• i . Up 8-2%Jrorn lost year. Up 32.5% jrorn two year's aqo. (iici�;clli,wn� Operating Budget Highlights • Parks and Recreation — Garey Park operations — Aquatics Maintenance worker — Landscape and other increases due to growth • Arts and Culture —Funding for part-time Arts And Culture Coordinator i - .ry (II(w(I It )%-\ Operating Budget Highlights • Inspections — Increased training to build staff competency — Hiring of key positions in FY2017 — Contract review for plans during peak times — Contracted Inspections to assist in reducing waiting time for inspections P:Ilmhel o 3Isildifig Ifl'shP(?in)s MIIIIIIIII&N-PI U=111-1-714 ILIIo (.I Io%%r,� - mow Operating Budget Highlights Public Works — Funding for transit budget increases the base budget by $175K; offset by Georgetown Health Foundation grant — Voucher study for transit $25K (one time) — Bike study for $44K — Traffic Analysis $25K Morgan provided a One Time — General Fund list and description Cit<3F;�,1 iu�ora� One Time- General Fund • One time strategy using recurring revenue to begin planning for operational impact of Fire Station #7 — Comprehensive Plan $153K — Historic Records Preservation $55K — JAWS ADA software— library $3K — Garey Park Opening activities $15K — Master Bike Plan $44K — Austin Young Chamber sponsorship $5K — Voucher/Transit Study �za — Total $300K Morgan spoke on the Council SRF for FY2017 and described transfer and balances. ar•� ,. (�luhc �l 1U1�� Council SRF — FY2017 Available Fund balance 1,920,473 Projected Interest earnings FY17 2,000 2017 Unbudgeted Obligations One-time cost Havins property plot $ 25,000 LCRA Transmission Lines $ 80,000 Study for squall cs $ 20,000 Speedy Stop Sign litigation $ 95.000 Ma*etlng downtown buildings $ 30,000 Subtotal $ 250.000 Unfunded Llablitles/Other One -Una cost Economic Unceftainty Reserve S 650,000 ERP Project $ 250,000 --At time of Street Mainlenance $ 250.000 preparation - does Benefit Payout Reserve (Comp Ab) $ 222.000 not include hospice Subtotal $ 1,372,000 study Avaieble Fund Balance $ 30OA73 t.Ir IK(d IrMn� Transfers to Council SRF/Balances • $300K in fund balance • $1,000,000 projected transfer in FY2018 — Final number provided after 2017 year-end audit • $1.3M projected fund balance for FY18 General Capital Projects were discussed next. a ,,,. �rllfh<�I tllltilA� General Capital Projects - Parks • San Gabriel Park - $3.5M — Phase a Constructlon - • Re-dehne PfljAr II based On oppprtunities for the festival ,area in ConneCtron with the cornmunlhy renter for design of Phase III Contain construction txtween Morrow Street and the San Gabriel River to reduce park interruptions — resign services for Phase III Ilkvrltu rmA>IPI(• PLAN- SAN GABRIM PARR (�iMCA IOWn� �.,,, General Capital Projects - Parks • Trail extension — Katy Crossing — from SG Park to Katy Crossing Subdivision - $500K • 5200K funded through Parks and Wildlife grant • Parks ADA - $150K — Phased implementation ...[i(URGk1U�YN� General Capital Projects— Transportation NW Blvd Bridge $10.75M Rivery — Williams to NW Blvd $4.25M FM 971 $3.9M Leander Road design and ROW $1.55M FM 1460 close out 5750K Total $21.2M Nicol M. -Me General Capital Projects — Transportation NW Blvd Bridge $10.75M Rivery — Williams to NW Blvd $4.25M FM 971 $3.9M Leander Road design and ROW $1.55M FM 1460 close out S750K Total $21.2M General Capital Projects — Facilities • Fire Station 6 - FF&E $300K • Fire Station 7 - planning & site $600K • Design for CVB (HOT funded) $100K • GMC Assessment $100K — Review campus and future needs • Downtown West signage $125K • ADA transition phased $150K • Animal Service site evaluation $100K ■ Downtown Parking expansion 5250K • Total $1.725M Morgan spoke next on debt and provided slides depicting the spring 2018 Preliminary Debt Issue. Morgan said this is a Plan for preliminary debt plan, which the Council finalizes in February or March, when debt is sold. He explained that this is a placeholder for that. tiI)RC iIIowN� Spring 2018 Preliminary Debt Issue • General Obligation Bonds/Authorizations — 2008 Parks $4.OM — 2008 Transportation $5.85M • IncludeslnnerPeace ROW — 2015 Transportation S165M • Total GO $26.4M ... C I (OR(I A 1k Spring 2018 Preliminary Debt Issue • Certificates of Obligation — Enterprise Resource Planning Software • Amortize over 7 years — 800 MHz Radio replacement phase II • Amortize over 5 to 8 years — Public safety vehicles • Amortize over 5 years — Sidewalks — Facilities • Total CO $2.7M $0.5M $1.74M $0.5M S1.7M $7.3M Spring 2018 Preliminary Debt Issue • Self Supporting Debt — Airport $150K — Stormwater $900K • Utility Debt — Electric CIP $6.5M Spring 2018 Preliminary Debt Issue • General Obligation $26.4M • Cert of Obligation $7.3M • Self Supporting Debt $1.0M • Utility Debt S6.5M • Tota I $41.3M Morgan spoke on Operating SRFs, the Convention & Visitors Bureau Fund and the Paramedic Fund Operating SRFs • Major Operating Funds — CVB/Hotel Occupancy Tax — Paramedic Fund — Street Maintenance Fund — GTEC and GEDCO • Other donation/grant/dedicated funds — Parks, trees, animal shelter donations, library donations Convention & Visitors Bureau Fund ■ Collects Local Hotel Occupancy Tax of 7% • Use is restricted by state law ■ Used to fund visitor center and promote the City ■ New Funding • Conference shuttle/special event shuttles • Arts and culture grants paid from HOT funds ■ Reserve for capital for Visitor Center relocation r34La6 r u1.bvalr Paramedic Fund • FY17 Projected Revenue $2.41VI �f — 10.7% increase over budget — New billing vendor ,.. • FY17 Expenses — increased demand �•� • FY17 Expenses on budget at $2M • FY18 Expenses $2M — no major changes • FY18 Estimated Revenue $2.5M — Assumes 13 transports per clay with collection rate of $450 per call — Improvement in reducing the negative fund balance — Starting to reserve 5300k for future ambulance capital replacement • Billing fees currently under review • Proposal for addition of a subscription based service Morgan said that Chief Sullivan will talk later in the presentation about a possible need to increase fees. Morgan spoke on the Electric Fund and Electric Fund Key Initiatives. Electric Fund • FY 17 ending projected balances — Revenues for FY17 are slightly higher than budget — Purchased power expenses are 16% higher due to excess generation being sold into a depressed wholesale market and milder weather conditions — Ending 2017 budget fund balance at $12.1M • Includes $5M contingency • Includes $4.5M rate stabilization reserve L 11(w.1 14114 Electric Fund • FY18 - Operating revenues budgeted to increase 1% due to customer growth • Purchased power consistent with FY17 year end projection — July 2018 — projection for 100% renewable • Fund balance projected to be $10.6M — Increases rate stabilization funds to $5.51VI — Increases contingency to $5.11VI .. LI1()Rtil IUIYN� Electric Fund —Key Initiatives/Growth • Substation testing equipment $85K • Reliability testing and maintenance • Reduces contracted cost in the future • Meter Technician and equipment $107K • Reduces future labor savings for customer care and metering ■ Rate Study $40K • Update of 2012 study The Water Services Fund was shown and described next. Water Services Fund • FY17 - Operating revenues at $49.8M or 6% higher than budgeted due to continued growth —Capital recovery (impact) fees higher • Operating expenditures at 4.6% less than budget —Begin savings from in-house operations CIII�R(�I Rf,vn� Water Services Fund • FY18 — Decrease in overall revenue to anticipate a slow down in growth (impact fees) • FY18 — Increase in operations of 6% — Impact of new Customer Information System — Meter replacement project - $420k —Water Services crew - $175 • Rate increase likely in FY2019 — Impact of new treatment capacity and water supply Morgan described the Airport Fund followed by the Stormwater Fund. Airport Fund • FY17 — revenues slightly less (1.9%) than budget due to depressed fuel prices in market; offset by higher volumes sold ■ FY17- expenditures 3.35% less due to lower fuel • Fund balance of $436K — Allows fund to provide its own Contingency requirement Airport Fund • FY18 — revenues projected to increase based on projected fuel price increase —Also increases cost of fuel — New funding for service truck and mowers to improve staff effectiveness for routine airport maintenance Airport Fund • FY18 — Capital Improvements — $150K Taxiway Edge lighting (funded by self supported bonds) — Runway 18/36 Rehab ($16,500) — Ramp Rehab ($15,000) — Pavement Maintenance ($40,000) — Hangar Maintenance ($33,000) MITPITTMII,.LiI�)Rl l li�wn� Stormwater Fund • FY17 projections — revenues are 1% higher and expenses 2.6% less o FY18 — increase to revenue by 1.8% due to growth — Operational expenses decrease due to transfer of a technician to the General fund * Self supported bonds fund - Curb & Gutter - $500,000 - Serenada Culvert Improvements - $200,000 - Stormwater Infrastructure - 5200,000 - Ongoing TWDB Flood Protection Planning Study - due for completion December 31, 2017 Morgan explained that Joint Services Funds are funds that provide service to all departments. He spoke on Information Technology and the Self Insurance Fund. • � � � - �iiltlR��l I�)\\nom Joint Services Fund • Provides services to all departments • Legal, HR, Finance, Accounting, Purchasing, Customer Care, GUS Administration, Engineering — New Funding • 2 positions to support ERP Software in Finance and HR $160K • Internal Controls Study $50K • Expanded Customer Care call center hours $60K • GUS Office Specialist $50K • Contract Coordinator for Engineering $95K Information Technology • Provides technology support to all departments — Updated allocation methodology based upon best practices and use of systems — Includes partial funding for capital replacement — Full funding of capital replacement to be phased in over 2-3 years • New Funding • IT support staff for Finance/HR software • Increases due to new systems/contracted support • Two -factor authentication security Self Insurance Fund • Accounts for revenues and expenses related to employee health benefits • FY 2017 — projected ending balance of $1.2M higher than anticipated — Worked with GGAF and consultants on reserves • Rate Stabilization Reserve - $1.1M • Incurred But Not Reported (claims) - $556K • No FY18 rate increases for employee or employer • Ending FY18 anticipated Fund Balance - $1.5M Morgan provided the Budget Schedule Budget Schedule • July 25 — City Manager's Proposed Budget August 8 —1st Public Hearing on Budget and Tax Rate • August 15 — 2nd Public Hearing on Budget and Tax Rate • August 22 —1st Reading of Budget Ordinance • September 12 — 2nd Reading of Budget Ordinance Public Outreach and Education was discussed and Morgan summarized the presentation and information. .. els F'(.I II»''� Public Outreach and Education • Current - draft workbooks posted on website • Future - proposed Budget (7/25) posted — City website and eBook at Library; Facebook — Budget Video —summary of proposed budget — Press release on proposed budget ■ Public Hearings on Proposed Budget on 8/8 and 8/15 • Ordinance readings at public meetings8/22 and 9/12 • Adopted Budget in Brief published/on website • Adopted Budget (full book) published/on website/library • Budget Video on Adopted Budget on website/social media Summary • Budget continues the legacy projects and growth related initiatives set forth by the Council — Progress on Council goals — Continued growth driving increases in operational costs in utilities, public safety and other areas — 20 new positions related to new initiatives and growth • Major CIP initiatives to continue to address growth — $53M in CIP — Major transportation projects to alleviate congestion — Completion of SW Bypass, Downtown West, Garey Parks, San Gabriel Park Summary • Budget strengthens the City's financial position — Continued strong sales tax — Continued growth in new and existing property value — Anticipate property tax rate at or lower than current rate • Fee increase is anticipated in our solid waste rate, negotiating TDS contract renewal — EMS fees currently under review — Community center fees under review Improving the fiscal health of all funds Morgan told the Council that he would be happy to answer any questions that they may have. He congratulated the budget team and finance team and thanked them and all staff involved. He noted that all would continue to improve the budget process and the transparency. Mayor Ross asked Morgan to introduce the staff seated at the budget table. Morgan introduced Jim Briggs, General Manager of Utilities, Laurie Brewer, Assistant City Manager, Leigh Wallace, Finance Director and Paul Diaz, Budget Manager. The following portion of the presentation refers to detail in the 2018 Draft Budget Book which can be found here https://finance.georgetown.org (The entire document can be found on the City's website on the Finance Department page.) Paul Diaz, Budget Manager, spoke on the General Fund and provided a detailed review. Mayor Ross asked if the Council will see general fund again. City Manager, David Morgan, confirmed that the Council would have the opportunity for more questions and feedback on July 25th. Ross said Council should speak up with suggestions or questions so that the feedback can be implemented, prior to the July 251h presentation. Diaz spoke on property tax and sales tax and described a conservative analysis. Ross asked how accurate projections had been in the last 3 years. Diaz answered within Yz%. Diaz described the ROI Revenue as very stable. Laurie Brewer, the Assistant City Manager, spoke in detail on 2018 expenses. She described requests from departments and increases in costs such as fuel and utilities. Brewer said the detail would show requests that will be included in the proposed budget and requests that will not. Brewer said she would be looking for Council's feedback if they noticed something that should be included that was not, or vice versa. Brewer reviewed revenues and expenditures. She spoke on Planning Department changes. Brewer reviewed the Parks Department. Councilmember Gonzalez asked Brewer if she was comfortable with projections for Garey Park. Brewer explained that revenues could be over or under current estimates because there are a lot of unknowns at this time. She said staff has had detailed review with consultants and have discounted those figures, knowing it will take several years to see the revenues. She explained that they are being very conservative in order not to be caught off guard. Gonzalez asked if the Trail at Katy Crossing is the only project besides the San Gabriel Park and Garey Park projects. Brewer confirmed. Gonzalez asked about the Columbarium. Kimberly Garrett, Parks and Recreation Director, said it is currently in the design phase. Gonzalez said there could be revenue with such a project. Garrett agreed and said this will be going through evaluation and engineering and coming back to the Council in September. Gonzalez inquired about how this is funded. Garrett said the initial funds have come from cemetery reserves. Brewer went on to speak on the Garey Park Grand Opening, library needs, parks maintenance, the tennis center and recreation programs and the new Garey Park cost center, arts & culture, grants, and municipal court. Gonzalez asked about the workers comp increase in rec programs. Morgan and Brewer said they will get back to Council with the accurate answer. Morgan reminded Council that this is why staff likes to provide a presentation for review, prior to finalization. Brewer spoke on the two departments in the General Fund related to the Fire Department — Fire Support and Emergency Services. Gonzalez asked about the supplies portion of budget and if these increases were based on events. He asked how this is being monitored and tracked for billing. Fire Chief, John Sullivan asked Gonzalez if he is speaking about consumer supplies. Gonzalez confirmed. Sullivan explained supplies increased for EMS because of the increase in service. He said they currently have a new vendor handling the fee changes. Sullivan explained that the revenue side increases will counter the expenses. Sullivan spoke on overtime issues. He explained that emergency services has to overstaff because there is no way to know call volume. Sullivan said they have largely perfected the overtime model and will continue to monitor this. He explained that different options are looked at monthly. Morgan said float positions have decreased the overtime expense and improved moral. Gonzalez asked if the Fire Department is fully staffed. Sullivan said they are fully staffed but will not be truly fully staffed until two more recently hired paramedics have completed their training. Mayor Ross said this is always a math problem because of injuries, illness, vacations, etc. and the problem will always exist. Sullivan explained that true overtime costs are overstated because of the 53 hour work week for paramedics. Gonzalez said there is more to this to consider than just money, and moral is important. Morgan explained that there is a long lead time because of 3 months of training before a recruit is effective. Morgan said overstaffing the Fire Department will be examined in the future, as this is the practice of many cities, as a way of better managing overtime costs. Councilmember Nicholson asked about ISF and if that is related to CAD monitors. Sullivan referred the question to Chris Bryce, Information Technology Director. Morgan said the allocation model for these expenses changed because it is now based off of usage and explained that, because of technology, the Fire Department and Police Department, are heavy users of I.T. services. Bryce said departments are charged for the use of 16 different I.T. services. He explained that no new services were added to the Fire Department this year, but there was an increase in usage of I.T. Services. Brewer spoke next on Solid Waste. She spoke on the solid waste master plan, finalizing contract negotiations and increases to programs such as recycling and household trash. Brewer spoke on the Inspections Department and training, certifications, and inspection contracts. Brewer spoke on administrative services, which is the new name for what used to be the City Manager Department. She noted the employee survey, the transfer of the planning position, food expense, the Austin Young Chamber, culture and employee recognitions. Brewer spoke next on the City Council budget and explained the Council Goals facilitator, the subscriptions and dues. Councilmember Gonzalez asked about $55,000 in 2016 under other contacts in the City Council budget. Brewer explained that this was for the Lone Star Rail, which is no longer being funded. Brewer spoke on a proposed Open Records Processor position in the City Secretary Department, supporting more users for the City's Laserfiche program to improve efficiency, and a Chisholm Trail November Election and the final phase of the historic records preservation. Brewer spoke next on general government contracts. She said vacancies were accounted for and have been reduced in recent years. She noted that $750,000 is the offset for the vacancy factor. She spoke of the $400,000 for Strategic Partnership grants and the $150,000 Health District contribution. She went on to speak on the Police Department and described certification pay and the steps included. Brewer described increases in police administration and overtime. She explained adjustments made for actual spending and described the need for 3 new positions. Gonzalez asked about the SRO position and if this was one position that becomes 2 when Waggoner goes live. Chief Nero said the position is for a working sergeant that floats and said it is a dedicated sergeant for the SRO Program, but that the SROs are working officers at an assigned campus. Gonzalez noted that this equates to 2.2 personnel per supervisor. Nero said, prior to Civil Service, all detectives had been promoted to sergeants and when Civil Service was enacted, it automatically created some challenges. He explained that a decision and plan was made, at that time, to not arbitrarily demote persons. Nero said he has been working on this. He explained that it is hard to demote persons and his goal is to instead align the right people organizationally. Nero explained that the difference is $5 thousand to $7 thousand per year and not worth demoting someone, causing trouble or bad feelings. City Manager, Morgan, said there is additional background information that should have been included in the reference materials and staff will provide this to the Council. He said the materials will address self -initiated work. Mayor Ross said police and fire have accounted for 49% of budget and next year the figure is projected to be 45%. He said this would indicate that they must be doing well and making dollars stretch. Morgan said this is mainly due to expenses elsewhere in the budget increasing because of growth. Morgan said parks will go up because of Garey Park and police and fire will increase with growth, as will sanitations. He added that the fixed route bus system will be hitting the general fund. Ross said public safety, to a certain extent, is a fixed cost. Brewer went on to speak on Animal Services, Code Enforcement, Public Works and Streets, Transit Study and Bike Plan. Councilmember Gonzalez asked about pay increases. He said, with the City's growth, Code enforcement must be busy. Chief Wayne Nero said it is important to retain these employees. Nero said Georgetown trains employees and then loses them to the City of Austin because of pay. Gonzalez asked about possible employment contacts. Nero said if Georgetown could pay more as an employee receives more certifications, this might be a solution. He explained that the City will be in a better position next year, because of a good Code Enforcement Manager, recently hired, Brad Hofmann. Morgan said Georgetown's code enforcement is complaint driven currently and the ability to do regular inspections is imited. He said this will improve as the City gets more organized and enhances code standards. Gonzalez suggested an over -hire in this department because of turnover. Finance Director, Leigh Wallace, provided an overview of the Special Revenue Funds. She explained that there is a legal restriction on how revenue is brought in and how it can be spent. Wallace spoke on H.O.T. tax, Poppy Festival expenses, and expenditures moved from the general fund to the CVB fund, which is appropriate for grants and H.O.T. usage. Wallace spoke on reserving the remaining balance of the fund to possibly help with the CVB move and the Downtown West project. Wallace described the Council Discretionary Fund and how it may be used for specific one-time expenses. Wallace spoke on street maintenance fund and said that this represents the 1/4 cent sales tax approved in multiple elections. She noted that another street maintenance election would happen in 2018. She spoke on the revenues and expenses of the fund. Wallace said that Public Works Director, Octavio Garza, would be providing an update and details to the Council in September. Wallace spoke on GEDCO revenues and expenditures. She spoke on the revenues and expenses of the fund. She explained that GEDCO typically budgets the full amount of possible projects, just in case they come up, creating a fairly large variance. She noted the 2017 Rentsch Brewery performance agreement and the target industry analysis. For 2018, Wallace spoke on the Grape Creek lease and possible purchase of the building, monies appropriated for economic development projects and special economic development studies. Wallace spoke on GTEC revenues and expenditures. She noted moving forward with the design of Airport Road, and that construction would be held over until a later project makes it feasible. Wallace said the City will hold bond proceeds in reserve until ready to move forward with construction. Wallace noted that in 2018 there will be a proposed Tamiro II Plaza project, with GTEC support for sidewalks and parking improvements. GTEC will hold a public hearing on this project in August. Councilmember Gonzalez asked about GTEC's outstanding debt. Wallace said she will get back to Council on both GTEC and GEDCO. Wallace spoke next on the Paramedic Fund. She explained that there is a working group of staff watching this fund closely. She noted that trends are changing over time and the fund is coming into its own. She noted improved collection rates per call and increases in transports per day. Wallace said the fund is starting to pay down the initial start-up costs. Councilmember Gonzalez asked if the fund will break even in the next 2 years. Wallace said a 5 year model has been followed but she believes this will be the case. Wallace said the assumption would be for the fund to be positive soon, but there is a need to replace an ambulance. Gonzalez said it has been an amazing story on service and fee collection moving toward financial stability. Gonzalez thanked Chief Sullivan and all involved. Mayor Ross asked if the figures were considered conservative. Wallace and Morgan confirmed. Morgan noted that the 5 year model includes the hiring of 6 more paramedics, due to growth. Chief Sullivan spoke on proposed fee increases. He provided a fee schedule update and described the purpose of EMS fees. He spoke on being required to charge a fee like a doctor or facility. Sullivan spoke on the demand for service and the trends and increases in medical calls. Sullivan spoke on emergency transport revenue and the reimbursement model and Medicare maximums. Sullivan spoke on what is actually collectible. He explained that insurance does not pay, unless a person is transported to an emergency room or hospital facility. Sullivan explained the difficulty of trying to align what is billable and what is happening regionally. Sullivan spoke in detail on the "treat -no -transfer" challenge and its very poor collection rates. Sullivan said there are approximately 1,800 to 2,000 lift assists per year, which are non - reimbursable. Councilmember Gonzalez asked if these people are billed and noted that if they are not sent to collection for non-payment, the bill dies there. Gonzalez said this is a nominal problem, because those not paying their bill will likely not pay for the insurance either. Sullivan explained the program and the reduction to the federal government allowances. Gonzalez said whoever does sign up for the program, allows the City to collect something instead of nothing, but the City will still provide the same service. Gonzalez said this will help, unless the cost of running the program becomes prohibitive. Councilmember Hesser suggested having a workshop on this with all of the numbers provided. Morgan said this is introducing the topic and a workshop can be planned in the near future. Morgan said none of this program is factored into the proposed budget. Ross said this is not going to hold up the budget. Morgan said this topic will be brought back as a workshop. Morgan said this is just a discussion in the attempt to adequately recover costs and staff would like Council to be thinking about this in the future. Sullivan said GGAF needs feedback regarding the supplies charges and it would be a simple change. Mayor Ross asked for a 15 minutes break at 4.35 PM, with the intent to resume the meeting at 4.50 PM. Mayor Ross resumed the meeting at 4.55 PM. General Manager of Utilities, Jim Briggs, spoke on the Electric Fund. He described wind contracts and gas contracts. Briggs spoke on total revenues and expenses. He spoke on costs for purchase power and fund balances. Briggs noted that an increase in the rate stabilization fund is a Council goal and that a $1 million increase in rate stabilization will occur in 2018. Briggs spoke on the changes to technical services for water and electric and proposed new positions and meter installations because of growth. He spoke on equipment needs and the need to do an electric rate study. Briggs explained that, overall, the electric service is a smaller service territory than water, but is a competitive service territory, competing with Oncor, which could get more aggressive in the future. Briggs said they will start to see more commercial loads along the 135 corridor. Briggs spoke on capital improvements and total operating revenues. Briggs noted that water and wastewater sales have been higher than expected. Briggs spoke on non-operating expenditures. He explained that capital projects not completed in 2017 will be rolled to FY2018. Briggs noted that there has been no rate increase since 2013 and rate increases are generally associated with capital infrastructure. Briggs described the contract with Round Rock in an effort to save on capital costs. He explained that over the next 2 years, capacity will need to be added, because of growth. He spoke on collecting and the existing rate base for new development impact fees, by law. Briggs said the City will need to look at rate adjustments to pay for the needed capital improvement projects. Briggs spoke on wastewater improvement projects and maintenance. He spoke on the need to purchase land for the construction of a plant for the growth of the community. He explained the need for revenue appropriate to cover the bond for the project and for a water plant. He explained that the City would need to create adjustments in advance. He explained that the earlier contributions are made, the less impact to the rate payer. Briggs suggested discussion over the next year and making recommendations in the FY2019 budget. Councilmember Jonrowe asked if the Council will have discussion about water conservation. Briggs said this will be scheduled in December and January. Briggs noted that the City is now able to reduce water loss in the system and he will be providing these details to the Council this summer. City Manager, David Morgan, suggested stopping the budget presentation workshop, to be resumed at the Special Meeting Workshop the following day. He reminded everyone that the meeting the following day to continue the budget workshop would be held at the GCAT Building, 510 W. 9th Street, at 3PM. All documents referred to in this presentation can be found here. https:llfi ria nce.georgetown.o rg� (This entire document can be found on the City's website on the Finance Department page.) Mayor Ross adjourned the meeting to Executive Session under Sec. 551.074 and Sec. 551.074 at 5.40 PM. Executive Session In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session. B. Sec. 551.071: Consultation with Attorney - Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise the City Council, including agenda items Sec. 551.074: Personnel Matters - City Manager, City Attorney, City Secretary and Municipal Judge: Consideration of the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal Adjournment Mayor Ross adjourned the meeting to begin the Regular City Council Meeting at 6:00 PM. Approved by the Georgetown City Council on -7 -zl6 Date Dale Ross, Mayor Attest: City Se try