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Home My WebLink AboutMIN 08.15.2017 CC-SNotice of a Special Meeting of the Governing Body of the City of Georgetown, Texas Tuesday, August 15, 2017 The Georgetown City Council will meet on Tuesday, August 15, 2017 at 6:00 PM at the Council Chambers at 101 E. 71' 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 8" Street for additional information; TTY users route through Relay Texas at 711. Mayor Ross called the Special Meeting to order at 6:00 PM. All Councilmembers were in attendance, with the exception of Councilmember Ty Gipson, District 5 and Councilmember Tommy Gonzalez, District 7. Mayor Dale Ross, Councilmember Anna Eby, District 1, Councilmember Valerie Nicholson, District 2, Councilmember John Hesser, District 3, Councilmember Steve Fought, District 4, and Councilmember Rachael Jonrowe, District 6, were in attendance. Regular Session (This Regular session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A. Call to Order— A Special Meeting of the City Council B. Public Hearing on the proposed FY2018 Annual Budget— Leigh Wallace, Finance Director Leigh Wallace, the City Finance Director, provided an overview of the fiscal year 2018 budget. She began the presentation with a Budget Background and the Process to Date. 1� - - J` Mll1lllllllllllllllt iI0M,I 10%%T Budget Background/Process to Date • The City Council completed budget workshops on July 11th and 12t" providing feedback to staff ■ Following these workshops, city staff evaluated final revenue estimates and expenditure projections for FY2017/18 and included the City Council's feedback • The proposed budget was filed with the City Secretary on July 21 • Proposed Budget presented to Council July 25 • Set max tax rate at 42 cents on July 25 • First public hearing on tax rate August 8 Wallace spoke on Key Budget Highlights. Key Budget Highlights • Continued growth in sales tax • Continued growth in new and existing property value - property rate reduction • Fee increases anticipated negotiating solid waste contract renewal - EMS fees -• Communrty(enter • 21 new staff positions • 19 full time • 1 FTE part time • Compensation plan for employees funded • 3%average merit based increase for non -civil service • Steps, certification, assignment funded per agreements for civil service Key Budget Highlights • 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 #7 operations Wallace explained Property Tax Terms. • Effective Tax Rate = tax rate needed to raise same amount of property tax revenue from the same properties in both the 2016 and 2017 tax years • Rollback Rate = highest tax rate that the City can adopt before voters can petition for an election to limit the tax rate Wallace spoke on the Tax Rate for FY2018 Budget lnun<,i i�iv. Tax Rate for FY2018 Budget • Property Tax Valuations: ■ Total assessed valuation is certified at $7.3 billion, which is an overall increase of 8.8% over last year • New and annexed value represents $201M • Existing property value increased 5.9% over last year • Frozen and Disabled exemptions values increased 8.2% to $2.63 billion, which represents 359 of our tax base • The average toxoble home value increased $13,351 (5.3590) over the past year to $266,598. [110K(A iuty Tax Rate for FY2018 Budget Proposed Property Tax Rate (Tax Year 2017): • The proposed tax rate is $0.4200 per $100 valuation, which is a decrease of $.004 from the 2016 (FY17) Tax Rate. • The effective tax rate is $.404790, which represents the rate that would be needed to produce the exact same revenue as the previous year • The rollback rate is $0.433335 • The estimated tax increase for the average homeowner (on a $266,598 taxable value) would be $46.71 annually or a 4.3596 increase • This tax rate includes necessary funding for proposed operations and payment of debt • The proposed tax rate also includes the sale of $22.4M of voter approved debt for the Road Bond and $3.5M of voter approved debt for San Gabriel Park Wallace provided Fiscal Year Tax Comparisons Fiscal Year Tax Comparisons Fiscal Year 2018 Op&Maint Rate $0.19266 Debt Service $0.22734 Total Rate $0.42000 Fiscal Year 2017 Op&Maint Rate $0.19666 Debt Service 0.22734 Total Rate $0.42400 Average Taxable Home Value Average Taxable Home Value $266,598 $253,067 CityTax Paid City Tax Paid $1,119.71 $1,073.00 Difference: $46.71 Wallace described Property Tax Revenue for FY2018 Property Tax Revenue — FY2018 • General Fund — $13.4M in 2018 • Debt Service Fund — $13.5M in 2018 — Includes early defeasance of debt to provide future capacity for voter approved bond projects for transportation — $500K payment of principal reduction — Refunding savings of 6.6% or over $200K over life of bonds — Refunds 2009 GOs and COs issued at 3.5%-5% — Early fall timing Wallace spoke on General Fund Expenditure Highlights. (�r�3tti;r ru�rn General Fund — Expenditure Highlights • Parks • Garey Park operations — partial year • 5 full time 1.5 part time positions, equipment • Aquatics Support • Landscaping increase for additional areas and standards • Police • Three new police positions— 2 patrol,1 SRO • Fire Department • Promotional Assessment centers to improve promotion processes • SCBA and protective equipment replacement General Fund —Expenditure Highlights • Public Works • Increase in solid waste contracted expense • Rate Impact will be determined before final budget • Full year of transit operations • Partially offset by Georgetown Health Foundation grant • Voucher study • Bike Master Plan • Traffic Analysis contract support when needed • Landscaping increase for right of way maintenance • $1.2M in General fund maintenance for streets and sidewalks '�(JIONui I(WIN General Fund — Expenditure Highlights • Library and Arts • Part time Arts and Culture coordinator • Additional funding for staffing coverage • Administrative • Open Records position to support growth demands and improve responsiveness • Historic records preservation —final phase • Contract inspections and planning review during peak times The Spring 2018 Preliminary Debt Issue was provided and explained next. ar. C , .. illwh� Spring 2018 Preliminary Debt Issue • General Obligation $26.4M • Cert of Obligation $8.6M • Self Supporting Debt $1.01M • Utility Debt S6.5M • Total $42.5M Wallace spoke on specific funds, including the CVB Fund, the Paramedic Fund, the Street Maintenance Fund, and the Electric Fund. Convention & Visitors Bureau Fund • Continued growth in tourism and HOT revenue • Additional expenses to support hotel shuttles to shopping and dining areas • Arts and culture grants shifted to HOT funds • Reserve for capital for eventual Visitor Center relocation r,r ate.- - iiNior1r.-,F;-nm,rmfzn��( 11 OW d I ()%% N�� Paramedic Fund • FY2018 Expenses $2M — no major changes • FY2018 Estimated Revenue $2.5M — Assumes 13 transports per day with collection rate of $450 per call — Improvement in fiscal health of the fund — recovery of initial start up costs — Starting to reserve $300k for future ambulance capital replacement Street Maintenance Fund Dedicated fund for X cent sales tax • $3.91VI for maintenance between the curbs Pavement management subcommittee reviewing options and will provide recommendations on specific treatments • $750K reserve to save for future major arterial road maintenance ITEM CI10RGI i� Electric Fund Purchased power consistent with FY2017 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 Wallace described the Electric Fund Key Initiatives and Growth and went on to show the Water Services Fund. -4MFit VIII>hc,I Illi-.h�. Electric Fund —Key Initiatives/Growth • $9.3M capital improvements to expand and upgrade systems • 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 to review 5-10 year rate estimates �e (AIOW, IIn%., Water Services Fund • FY2018— Decrease in overall revenue to anticipate slow down in growth (impact fees); increase in service revenue • Capital improvements • $7.11VIlWater • Braun EST, S. Lake Plant permitting, SW Bypass waterline • $4.5M Wastewater • EARZ, Berry Creek Interceptor, San Gabriel interceptor • FY2018 — Increase in operations of 6% — Impact of new Customer Inft7rmation System — Meter replacement protect - $420k — water Services crew - $175 • Rate increase likely in FY2019 — Impact of new treatment capacity and water supply — Northlands Plant design Wallace provided information about the Airport Fund, followed by the Stormwater Fund and the Joint Services Fund. •�(itcWiI Iuwn� Airport Fund • FY2018 — 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 • Positive fund balance $565K — Includes contingency funds -$213K • FY2018 — Capital Improvements Airport Fund — $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) GrOKGI IOWN Stormwater Fund ` Capital improvements (funded by Self supported bonds) — Curb & Gutter- $500,000 — Serenada Culvert Improvements - $200,000 — Stormwater Infrastructure - $200,000 — Ongoing TWDB Flood Protection Planning Study — due for completion December 31, 2017 Joint Services Fund Provides services to all departments Legal, HR, Finance, Accounting, Purchasing, Customer Care, GUS Administration, Engineering — New Funding • 2 positionsto support ERP Software in Finance and HR $160K • Internal Controls Study $50K • Expanded Customer Care call center hours $60K • GUS Office Specialist $50K • Contract Coordinatorfor Engineering $95K Wallace spoke on Information Technology, the Self -Insurance Fund and Other Internal Service Funds. �C 00K(A nrwn� 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 Coordinatorfor Engineering $95K r Cii(iRl�� T�lw )r15� Self Insurance Fund ■ Accounts for revenues and expenses related to employee health benefits • Established reserves: • Rate Stabilization Reserve - $1.1M • Incurred But Not Reported (claims) - $556K • No FY18 premium increases for employee or employer • Ending FY18 anticipated Fund Balance - $1.5M L Other Internal Service Funds • Fleet Fund — capital replacement and maintenance of city's rolling stock • Replacement vehicles as scheduled • Additional vehicles purchased for new positions/programs • Garey Park, police officers, water crew, engineering • Facilities maintenance fund — maintenance of City's facilities • No major changes — maintenance fully funded for FY18 Wallace provided the upcoming Budget Schedule ■ August 15 — 2nd Public Hearing on Budget and Tax Rate ■ August 22 — 1 sc Reading of the Budget Ordinance • September 12 — 2nd Reading of the Budget Ordinance Wallace provided information on Public Outreach and Education Public Outreach and Education • Proposed Budget (7/25) posted — City website and eBook at Library; Facebook — Budget Video — released last week — Press release on proposed budget released • Public Hearings on Proposed Budget on 8/8 and 8/15 • Ordinance readings at public meetings 8/22 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 Mayor Ross opened the Public Hearing to receive comments on the proposed budget, in accordance with the local government code, at 6.20 PM. No persons signed up to speak on Item B. Mayor Ross closed the Public Hearing at 6:20 PM. Ross announced that the City Council would vote to adopt the budget at the first reading at 6:00 PM on Tuesday, August 22, 2017 at the City Council Chambers, 101 E. 7th St., Georgetown, Texas and at the second reading at 6:00 PM on Tuesday, September 12, 2017 at the City Council Chambers, 101 E. 71h St., Georgetown, Texas. Motion by Fought, second by Hesser to close the comment period of the Public Hearing on the proposed budget. Mayor Ross closed the comment period of the public hearing at 6.21 PM Approved: 5-0 (Gipson, Gonzalez absent) C. Conduct a public hearing on the proposed 2017 Property Tax Rate used for the FY2017 Annual Budget -- Leigh Wallace, Finance Director Mayor Ross called the second Public Hearing to receive comments on the proposed property tax rate, in accordance with the local government code, at 6.21 PM. No persons signed up to speak on Item C. Mayor Ross closed the Public Hearing at 6.21 PM. Ross announced that the City Council would vote to adopt the tax rate at the first reading at 6:00 PM on Tuesday, August 22, 2017 at the City Council Chambers, 101 E. 7th St., Georgetown, Texas and at the second reading at 6:00 PM on Tuesday, September 12, 2017 at the City Council Chambers, 101 E. 7th St., Georgetown, Texas. Motion by Fought, second by Hesser, to close the comment period of the public hearing on the proposed 2017 tax rate. Mayor Ross closed the comment period of the Public Hearing on the proposed 2017 property tax rate at 6.21 PM. Approved: 5-0 (Gipson, Gonzalez absent) Adjournment Motion by Fought, second Hesser to adjourn the meeting. Mayor Ross adjourned the meeting adjourned 6.22 PM. Approved by the Georgetown City Council on $j Date Auf--t- Dale Ross, Mayor Attest: City S r tary