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HomeMy WebLinkAboutMIN 07.21.2020 CC-SNotice of a Meeting of the Governing Body of the City of Georgetown, Texas Tuesday, July 21, 2020 The Georgetown City Council will meet on Tuesday, July 21, 2020 at 2:00 PM at the Council Chambers at 510 West 91h 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 three (3) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 808 Martin Luther King, Jr Street for additional information; TTY users route through Relay Texas at 711. Mayor Ross called the meeting to order at 2:19 p.m. The following Council Members were in attendance: Mayor Dale Ross; Mary Calixtro, Council Member District 1; Mike Triggs, Council Member District 3; Steve Fought, Council Member District 4; Kevin Pitts, Council Member District 5; and Rachael Jonrowe, Council Member District 6. Council District 2 is vacant and Tommy Gonzalez, Council Member District was absent. All Council Members present via videoconferencing and a roll call was performed. Fought joined during Item B. 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 Mayor Ross noted that if all needed topics are covered at today's meeting then Council will not convene tomorrow (July 22, 2020). He also encouraged Council to ask questions at the top of the presentation as they should have all had a chance to review the information provided, or at the end of the presentation if they had a list of questions, whichever Council preferred. B. Workshop overview, discussion and feedback regarding the FY2021 City of Georgetown Budget and Tax Rate -- David Morgan, City Manager Morgan presented the item and noted that the budget team and department directors are participating in the meeting as well. He noted that PowerPoint presentation will also reference sections and pages in the budget book. Morgan stated that the purpose is to provide City Management Feedback on the budget status; discuss budget pressures and focus areas; provide detail on current budget planning; receive Council feedback prior to submission of the city manager proposed budget; and provide next steps in budget development and review process. Pitts asked about contingency funds per the fiscal policy and asked for clarification on what qualifies as an emergency use. Morgan responded that there is a broad definition and intended to be used in a catastrophic event and noted COVID-19. He added that there may be a reason to use the reserve for the COVID-19 pandemic, but staff has not suggested doing that yet. Morgan stated that the goal is to replenish those funds as the first step in the next fiscal year. Pitts asked if the amount referenced in the contingency fund is equal to exactly 90 days. Morgan responded yes and noted that the City has enhanced and expanded its contingency funds over the last few years. Morgan provided the Budget context and engagement starting with the Context of 2020 and 2021 noting the following: COVID-19 Pandemic led to closures with impacts to revenues, City facility and service changes, employee and public safety measures, and greater uncertainty in the near future; development growth continues with residential and commercial growth not slowing down; and the continuing of multi -year projects/initiatives with Fire stations 6 and 7, Workday implementation, and the Comprehensive Plan implementation. He explained the Budget engagement and online survey that received 660 Responses with almost 12,000 video views, 1,500 comments on sic open-ended questions, and a wide response rate from each city council district with a spread of 17.5% in District 5 to 6.3% in District 1. Morgan provided the Budget engagement feedback and noted that there was a desire for no change to property tax rate and user fees with 34.3% of respondents that would support an increase in user fees. He continued that 70% of respondents rate the value of city services for the City taxes paid as Good or Excellent and then provided the ratings for how the City is addressing the impacts of growth, funding changes to manage traffic, funding changes to support infrastructure/roads, funding change to support safety in our city, and other city services that should be prioritized related to maintaining or increasing services in the library. Morgan provided the key themes for FY2021 as follows: conservative revenue projections with COVID uncertainty with flat sales tax, lower development, court, and recreation revenue, and property tax rate same or lower; maintain overall service levels and staffing plan with reduced parks and recreation programming due to reduced revenue and COVID social distancing measures, other base budget cuts made, and employee market compensation only with no merit increases; continue the plan to open Fire Stations 6 and 7 successfully and hire six firefighters for float positions; address limited areas in stress related to Customer Care, Utility Control Center, and Fiber Management; carry forward key capital improvement projects related to traffic and public safety; and continue improvements in public/employee engagement with the Citizen Survey, Civic Leadership Program, and Employee Survey. He then explained the Budget focus and funding starting with the preliminary budget and noting: the City Manager Proposed Budget will be presented August 11, 2020; this version is a work in progress and intended to review with council for alignment and allows council to provide feedback to shape city manager's proposed budget; and Workbook format provides detail for transparency with funds and line item detail for current and proposed budgets, and historical balances provided. Morgan provided the Budget revenue assumptions as follows: staff is planning for tax rate of $0.42, which is the same as FY2020 and will stay under voter approval rate where a 3.5% increase allowed, shape debt/infrastructure plan to stay within current tax rate, and a final tax roll delivered on July 25, 2020; and COVID-19 impacts including flat sales tax revenue, continued electric revenue impacts due to lower load demand, and reimbursement for FY2020 COVID-19 expenses. He noted the Budget cost assumptions as follows: base budgets for existing staff, supplies, maintenance and costs which may include increases related to growth and utilities, maintenance, cost increases; continue to provide overall existing levels of service with reduced travel, training, and supplies and the continuation of a limited number of frozen positions, with six positions in the General Fund and Joint Services Fund; and service enhancements with new staffing, program funding to address growth or specific issues. Morgan reviewed the assumptions made to continue market and step pay adjustments noting that market adjustments will be implemented for police and fire sworn, along with step increases as follows: Police Market of $99,000 for 88 employees which is a 60% implementation and 0.3% to 1.5% average increase; Fire Market of $264,000 for 138 employees which is a 60% implementation and 1.7% to 2.5% average increase; Police Steps of $118,000 for 88 employees which is a 2 to 4% average annual step; Fire Steps for $176,000 for 138 employees which is a 2 to 4% average annual step; and non-public safety of $246,000 across all funds for 48% of employees and 40% of job titles for an average of a 2% increase. He stated that Public Safety investments include: Public Safety staffing of six firefighter float positions to meet minimum staffing levels and control overtime costs; and opening Fire Stations 6 and 7 and covering operational costs and staffing costs continue to be partially funded through SAFER grant, but grant revenue is reduced. Morgan explained the need to maintain service levels by increasing staffing in high growth areas as follows: in the General Fund Fire will get six firefighters and the Animal Shelter will get a part-time Veterinarian which will be a net $0 cost to the General Fund; Joint Services will received a Customer Care Customer Service Representative and an Engineering Project Manager; Information Technology will received a Fiber Supervisor, Fiber Technician, and System Analyst; Electric will receive a Utility Analyst and Control Center Operator; Water will receive a Utility Analyst; and this will be a total of 14.5 new positions. He noted the Workbook detail and analysis. Morgan stated that the Workbook has: a table of contents; set up by Fund with a Governmental reporting structure, revenues and highlights in summary, summary fund schedule with high level grouping, detailed line items for revenue and expense, and detail of new requests and current status; and a reference section. Morgan explained the Budget Workbook review and that he will walk through the variances between FY2020 and FY2021 noting: increases due to growth and demands; new requests currently included; variances due to reorganization or other reasons; adjustments for new Workday system because the City is currently in three systems historical, current workday and spreadsheets for FY21 Budget; and Budget program/adaptive Workday to begin August 1, 2020 with FY2022 Budget being prepared in the new system. He provided a Government Budget and accounting refresher and noted that funds are the City's reporting structure; each fund is self - balancing and represents a related set of accounts, and include assets, liabilities, revenue and expenses; fiscal and budgetary policy outlines specific requirements for most major funds; the General Fund is the primary operating fund of the city, traditional resources associated with city government containing public safety, street maintenance, parks, library, administration, and funded through sales taxes, fees, property taxes (operating portion) and return on investment from utility funds; General Debt Service funds debt payments for general debt through the debt service or "interest and sinking" portion of property taxes; Enterprise Funds include Electric, Water/Wastewater, Stormwater, Airport and operate more like traditional businesses with rates/fees that are set to recover costs; Internal Service Funds include Joint Services, Fleet, Facilities, Information Technology, Self -Insurance and provide internal support like these overhead costs are allocated out to other funds through formulas based upon demand; and Special Revenue Funds which are required legally, by council order or for better accounting management and contains convention and visitors bureau; street maintenance sales tax; grants, etc. Morgan then reviewed the General Fund and provided FY2020 Projections as follows: total revenues projected to end overall slightly lower than budget with lower parks, sanitation and EMS revenue and parks revenue is 48% lower ($1.4 million) due to closures and cancellations, Utility return on investment and franchises at budget, strong development revenue, Sales Tax projected to end at budget, and property tax projected to end at budget; and expenses show the Budget contingency planning reduced expenditures and continue to hold on vacant positions to preserve cash. He then exvlained the General Fund - Fund Schedule as follows: dl 1W Be nning Fund Balance 10,946,800 14,263,750 14,263,750 15,566,646 - 15566,W M Ending Fund Balance Actuals 13,499,527 Budget 13,234,623 Projected 15,566,646 14,739,724 126,984 14,866,7DB CAFRAd)ustment (200,081) - - Contingency 10,750,000 11,414,340 11,414,340 12,S00,000 126,752 12,626,752 Benefit Payout Reserve 340,00D 340,000 340,000 340,000 34QOD0 Economic Stability Reserve 1,759,446 1,759,446 1,759,446 1,759,446 Available Fund Balance 2,209,446 (279,163) 2,052,860 140,278 232 240,510 Sales Tax 16, 581,705 17,959,375 17,859,375 17,859,375 1 17,859,375 Property Tax 13,896,439 14,900,000 14,915,295 15,600000 15,600,000 Environmental Services 9,281,583 IQ155,450 1Q118,450 10,989:9691� 10,989,969 Transferin 7,686,360 S.433,100 8,433,100 8,753,009 462,685 9,215,694 Fire/EMS 7,059,201 7,175,152 6,793,885 7,177,004 7,177,004 Franchise Fee 5,646,478 5,890,270 5,892,057 6,253,270 6,253,270 Permits/Development 3,781,884 31968,500 4,685,897 4,355,500 (150000) 4,205,500 Allocation 2,428,000 2,707,730 2,707,730 3,405,258 3,405,258 All Other 2,040,178 1,902,420 2,404,282 1,425,745 1,425,745 PARD 2,693,468 2,833,100 1,476,005 1,893,234 _ 1,893,234 Muni Court 348,953 352,250 305,156 328392 328,392 Grand Total 71443 650 76,178347 75t591,232 78,040,756 312,685 78,353 441 Morgan reviewed the General Fund - FY2021 Revenues noting revenue assumptions of sales tax with a 0% increase over budget for $17,859,375 million, and new development like Wolf Crossing, Holt Cat and Academy Sports & Outdoors offsets other areas impacted by pandemic business closures with a 7.7% increase over FY19 ending balances as follows: 4,000,000 3,500,000 3,0LK1,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 General Fund Sales Tax Revenue Oct Nov Dec Ian Feb Mar April May June July Aug Sept tFY19 fFY20;21 Morgan reviewed Property Tax that totals $15,600,000 with: approximately $700,000 in new revenue; 3.5% increase allowed in voter approved rate; SB 2 allows cities to go up to 8% before requiring voter approval due to emergency declaration being declared; staff recommendation is to stay within 3.5%; no higher than $.42 (existing FY20 rate) per $100 value anticipated; final property tax roll anticipated on July 25, 2020; and $46 million in new property values. He reviewed the following graph: City of Gear getown Total Market value Peal Parcels s1�, (in billions) $9 ., 60.51 1 G 13 $7 61 r a iw r J I 7c K3 13 9 $1 Morgan reviewed Sanitation and noted that the current residential rate is $19.55 and the new proposed residential rate is $20.92 with anticipating proposing a rate adjustment of $1.37 and the 1.26% increase to the TDS Contract will equal $0.25, the transfer station costs (debt service) will equal $1.00; the fee for Household Hazardous Waste will equal $0.12 for an overall 7% increase and commensurate increase for commercial customers. He explained that the TDS Current Contract is part of an initial contract awarded in 2012, extended in 2017, and the contract term concludes October 31, 2022. Morgan provided the following aide: Request 1 In IFIF �-Ww Contract O- $15.91 18 Can't ask first N/A $15.87 year 2019 Requested 4% 4% $16.50 2020 Requested 1.26% $16.71 1.26% Morgan noted the Refuse Rate Index (RRI) with index numbers viewed at: https://data.bls.gov/cgi-bin/srgg.te as follows: Producer Price Index (PPI #2 Diesel): WPU05730302 Quantifies price fluctuations for goods and services in this case — diesel fuel Core Consumer Price Index iCP0 CUUROOOOSAOLIE The average change overtime in the prices paid by urban consumers for various products in the market. Producer Price index (PPI Equipment) WPU141301 Quantifies price fluctuations for goods and services in this case — Vehicle & Equipment Replacement Employment Cost Index (ECI) CIU20150000005201 Labor Cost PPI Industrial Truck Maintenance PCU333924333924 Quantifies price fluctuations for goods and services in this case —truck and vehicle maintenance Morgan noted the Formula = (2020-2019)/2019*Weighted % with PPI Diesel: (243.0- 273.2)/273.2*.06 = -0.66 Index 2019 2020 % Change Weight Total Producer Price Index (PPI 273.2 243.0 #2 Diesel): -0.11 6.00% -0.66% Core Consumer Price Index Producer Price Index (PPI Equipment) Employment Cost Index (ECI) PPI Industrial Truck Maintenance 261.114 267.268 254.70 257.9 135.5 139.5 256.5 258.9 0.024 17.00 % 0.40 % 0.013 10% 0.13% 0.03 38% 1.12% 0.01 29% 0.27% Total 1.26% Morgan explained the impact to rates as follow: V,Reside Fs 6YD@I r''47 �11 Morgan reviewed the Transfer Station purpose where materials must be direct -hauled in the collection vehicle or long -hauled using transfer trailers and factors that affect financial feasibility include: collection cost, disposal cost, distance/travel time to landfill, fuel costs, annual tonnage hauled, and payload of transfer trailers vs. collection vehicles. He added that the current landfill is approximately 90 miles round-trip. Morgan explained the TCEQ required improvements and that the City committed to the Texas Commission on Environmental Quality (TCEQ) to make certain improvements at the transfer station, and the improvements include covering areas where waste is exposed and better storm water management. He continued that the existing facility was originally opened in 1984 and improvements made in 2006-2009, and prior to investing in improvements to the existing facility, City Council provided guidance to compare that option to building a new facility at the same location. Morgan noted the Council Direction provided on April 24, 2018 for new facility improvements as follows: better separation of customer drop off and collection vehicles; increase operational efficiency; reduce wait time to unload vehicle; less downtime to process multiple streams; provide for 3 waste streams (trash, recycle, and compost); and require new TCEQ permit. He the noted the Council direction given on January 28, 2020 and provided estimated costs as follows: Estimated Cost w/20% Design Element Estimated Cost Contingency Transfer Station Building $ 3,400,000 $ 4,080,000 Scale House $ 100,000 $ 120,000 Covered Drop -Off Area $ 350,000 $ 420,000 Scales $ 270,000 $ 324,000 Site Work $ 2,760,000 $ 3,312,000 Road Alignment $ 500,000 $ 600,000 Water Line $ 300,000 $ 360,000 Compost Area Regrade $ 300,000 $ 360,000 Truck Wash $ 40,000 $ 48,000 TOTAL $ 8,020,000 $ 9,624,000 Morgan explained that the Transfer Station construction budget and rates show: Transfer Station construction costs are up to 10 million dollars; debt is sold and repaid over a 20-year period; payments are approximately $700,000 per year; and a new transfer station is expected to increase capacity and efficiency to last to 2050 or longer. He then provided the Commercial and Residential Rates as follows: L,E NUE 74 REVEWE External Roll-Off/Sanitation $100 per permit $180,000 $15,00 Commercial Permit Average 150 permits COG Internal 503,061 (dumpsters & $0.50 Landfill $220,546 $18,379 Commercial carts) $0.30 Recycling COG 26,801 accounts $1.00 $321,612 $26,801 Residential Per account Totals $722,158 $60,180 Morgan showed the Internal Commercial Detail as follows: Individual 8 $17.34 $17.34 $208.02 $129.80 to $147.80 Total = 74 2,565 $1,282 $15,393 Individual 6 $13.00 $13.00 $156.00 $129.80 to $147.80 Total = 83 2,158 $1,079 $12,948.00 Cart 0.5 $1.09 $1.09 $13.08 $29.33 to $30.80 Total = 355 770 $385 $4,622.10 Totai All $220,545 Business Annual Morgan reviewed the Impact to Rates as follows: M Comm Cart $29.33]r$29. k Yd @ 1/wk $106.04L107 Transfers New Efate ation Deal Transfer Station $1.00 $20.80 Mk1.00 $28.80 PL- $L09 $30.79 $5.20 $112.61 mQ§O $137.60 Morgan then reviewed the Household Hazardous Waste (HHW) Program and noted: in 2019 the City's contractor provided notice that it would no longer provide service, and City contracts with City of Round Rock to provide 50 vouchers per month (600/year) at a cost of $40 per voucher ($24,000/yr); the waiting list is over 200 residents as of July 2020; and in 2020 staff is seeking proposals for HHW program from multiple companies for FY21 program. He noted the HHW New Proposed Program that would include: a monthly Hazardous Waste Collection day for the residents within the city limits of Georgetown; residents informed of program through City marketing; no limit on number of residents who can participate; Saturdays from 8AM-2PM; monthly rate impact of $0.12; and costs of $66,000 per year (low bid to date) for the program and $40,000/year estimate for the disposal of material with the following impact to rates: He . Current,JoSntCr O/MG 'Transfer Transfer rHHW PService acitton ❑ebt S .12 Residential � ;.$19. �j $1.00 $2E . __ . +p.92 esidentl l 7.46, $27.8�a $1.00 $28. I$28.92 Comm Carte,29.33 $29.70_Jff $1.09 _.. $30.79$30.91 4 YD @ Op6 107. 5 $5. Ls112,M 6 Y❑ @ MIrl28 ML129.80 pr'$137.6mm L-B.YD@ 1/W- " 7.51.12 ,J 10.4QEL .$161.52 1111$161.64 Morgan provided a peer comparison based on 2020 residential 95-gallon carts as follows: 96 gal cart, Standard Residential Service $42.90 $26.09 $16.66 $18.69 $18.94 $19.55 $19.80 $20.23 $20.80 $20.82 $20.97 ��e �� ��e ate ���� �6b ° efi 0 � L Morgan reviewed the General Fund FY2021 revenues noting: Parks and Recreation revenue is reduced 29% over FY19 actuals due to expected continued impacts of COVID with the areas impacted being the Recreation Center, Recreation Programming, Tennis Center, and Aquatics with assumed program cuts, reduced hours at pools and other cost savings to partially offset the reduced revenue. He explained the General Fund FY2021 expenses noting that Council has been provided with a full list of department requests, base budget cuts over $800,000 total by reducing travel, training, supplies and having six frozen positions as follows: Parks Maintenance Worker, Challenge Course Coordinator, two part time recreation assistants, Court supervisor, Administrative Secretary in Administrative Services, and a Management Analyst in Public Works. Morgan noted the service level impacts of reduced pool operation at River Ridge Pool and reduced hours at other pools and reduced recreation programming. He stated that General Fund FY2021 Expenses for Public Safety include in Fire six new firefighter float positions totaling $431,411, station equipment totaling $78,400, and supplies for new stations totaling $19,000; and for Police DroneSense software costing $7,140. Morgan reviewed the General Fund FY2021 Expenses for Administrative and Council that include: redistricting costs of $40,000; Mobility Bond planning totaling $8,000; Citizen and Employee surveys totaling $31,000; City council goal setting work session totaling $9,500; Community Services training costing $6,000; Code enforcement officer development/steps totaling $8,000; Part Time Veterinarian totaling $50,000 which adds 0.5 full time employee with $35,000 existing contract services funding available in budget and $15,000 donation from Friends of the Animal Shelter; and Communications new van maintenance which is capital funded through PEG special revenue fund. CC0001 Non -Departmental CCO107 Planning CCO202 Parks Administration CCO210Library _ CCO211 Parks CCO212 Recreation C CO213 Te n n i s Center CCO214 Recreation Programs CCO215 Garey Park CCO218 Arts and Culture CC0316 Municipal Court CCO402 Fire Support Services/Administration CCO422 Fire Emergency Services l.1.U446 UVU CC0533 Environmental Services CC_O536Inspection Services CC0602 Administrative Services CC0605 Community Services CC0634 City Council Services CC0635 City Secretary Services CC0638General Government Contracts CCO6_55 Communications/Public Engagement CC0702 Police Administration CC0742 Police Operations CC0744Animal Services CCO802 Public Works CCO846 Streets CC0745Code Compliance Grand Total as follows: 361,000 524,860 524,860 1,087,0001 (287,000)1 800,000 1,369,134 1,937,189 1,656,891 1,754,866 (150,OW 1,604,866 600,757 624,953 619,947 651,010 - 651,010 2,688,859 2,788, 513 2,702,504 2,847,245 - 2,947,245 _ 2,605,753 2,781,344 2,64_0,419 2,690,310 _ - 2,690,310 2,639,488 2,798,294 2,686,073 2,858,535 - 2,858,535 411,338 464,354 351,183 432,157... - 432,157 1,246,310 F 1,370,707 1,098,537 1,337,608 - 1,337,608 760,203 976,612 914,087 1,002,995 - 1,002,995 39,077 T 36,729 53,694 _ 57,857 - 57,857 634,728 664,063 605,084 576,874 - 576,874 2,892,457 3,160,344 3,347,476 4,233,347 4,233,347 12, 859, 583 14,312, 200 14, 327, 630 15, 079,036 481,811 15, 560, 847 2,376,695 2,864,866 2,521,241 2,448,532 - 21448,532 7,740,074 8,532,355 8,480,012 9,431,924 - 9,431,924 f 1,237,826 1,347,040 1,282,436 1,372,623 1,372,623 1,605,930 1,933, 851 1,675,228 1,764,961 83, 000 1,847,961 265,738 253,593 295,999 6,0W 301,999 168,069 177,608 169,049 176,234 9,500 185,734 _ 801,804 819,283 761,473 960,243 30,0W 990,243 4,365,305 3,443,750 4,339,251 4,511,522 - 4,511,522 399,754 684,453 608,209 788,945 5,250 794,195 2,391,132 2,632,662 2,659,080 2,538,022 _ 2,538,022 12,397,439 13,821,765 13,297,025 14,039,285 7,1401 14,046,425 871,897 989,507 967,657 1,091,101 - 1,091,101 1,085,767 1,469, 053 1,235,203 1, 348,232 1,348,232 3,942,701 5,261,012 4,071,354 2,935,730 2,935,730 387,844 524,382 439,142 555,485 555,495 68.880.925 77.207.474 74.788.336 7$.8167,677 185,701 79,053,378 Morgan then took questions and feedback on the General Fund, Pitts asked about the subsidy for the Recreation Center, noting that it was about $900,000 last year. Morgan responded that it would be higher than that and staff anticipated revenues to be down. He stated that staff will get a clear number before the end of the session. Pitts stated that he was reviewing cuts and asked how they were proposed and what the process was. Morgan responded that staff looked for gaps in expenditures and looked at various funds and departments to identify a target for departments to make reductions. He continued that Fire and Police will be much different from City Secretary both in size and type of expenditures, and departments were provided different scenarios. Pitts noted that the library had no cuts and asked if there are efforts to make the library more family friends instead of a hub for homeless. Morgan responded that the Library has been recognized as being a family friendly location, and homeless residents can utilize the Library during open hours. He continued that staff works with parks, police, and library staff to assist, and there is funding associated with a social worker to assist with guiding people to the correct resources. Morgan stated that services are provided to all, not just homeless. Mayor Ross noted that the Library is one of about 700 in the entire US that has been designated as a family friendly location, and having a social worker onsite is a different discussion than whether or not the Library is family friendly. Pitts asked if staff has considered doing an RFI for another organization to run the rec center and possibly save funds. He continued that he would like to consider finding a way to fund two police officers that were not funded, with the primary goal of government being public safety and he would like to be proactive instead of reactive. Pitts stated that more help is needed, and he would like to see an 80% raise to Civil Service. Mayor Ross noted those as parking lot items that can come back to council. Morgan stated that last year or the year before Council asked for an Animal Control Officer position to be funded and staff can take a similar approach with the police officers. He continued that if Council is going to propose 80% funding for Civil Service it should be for police and fire. Morgan noted that since his time at the City the budgets have funded a significant amount and there is competitive compensation. Triggs stated that he would like to see two additional officers added and would like to see compensation raised to 100%. Jonrowe had no comments. Calixtro stated that she attended the Chamber breakfast today with Chief Nero's presentation and she agrees that they are front line with Fire Department. She stated that she is looking more at 70% funding of compensation and noted that a lot of people that are front line workers. Calixtro asked if there was a way to look at that and consider merit increase for all employees. She then asked when everything would go into effect if new officers are added. Morgan responded that it would be considered based on hire date. He stated that it takes $243,000 to fund 100% of market and $354,000 for two additional officers and equipment. Morgan stated that merit raises for entire staff of 2% would lead to looking at significant cuts in operations in other areas to reduce expenses and provide for addition staff and merit increases. Fought asked that staff take a hard look at raises for Police and Fire. Mayor Ross asked that staff provide the funding needs to Civil Service increase at 60%, 70%, 80%, 90%, and 100%. Triggs noted that he was under the impression that raises for non-public safety staff would be covered later in the presentation. Morgan responded no. Triggs stated that he would be in favor of merit increase for all employees. Morgan stated that he appreciates Council's support of staff and there are some limitations on what can be done via property taxes unless Council wants to send the rate to the voters. Mayor Ross asked when staff would provide responses to the feedback received today. Morgan responded July 28, 2020 if staff can get the information in time or on August 11, 2020. Mayor Ross asked that staff try to get the information to Council by July 28, 2020. Pitts asked if merit raises aren't possible then Council should consider a one-time payment for those that are not in line to receive a merit increase and wouldn't hit the budget as hard. Morgan said that those are things to consider, and Council can also consider during mid -year after determining how the City is being affected by sales tax. Mayor Ross called for a break starting 3:36 p.m. and the presentation resumed at 3:45 p.m. Laurie Brewer, Assistant City Manager presented the Capital Improvement Plan. She reviewed the Facilities FY21 CIP noting public safety training and operations tactical and firearms training center costing $4,500,000, Recreation Center HVAC costing $800,000, and Rec Center/Teen Center renovation costing $200,000. Brewer noted that Facilities are self- supporting with the Transfer Station costing $11 million total made up of: $1 million issued in FY2019 for design; repurpose approximately $5 million from FY2019 issue for the downtown parking garage; issue difference in FY2021 of $5 million; and debt service on entire project paid through increase in sanitation rates. She reviewed the equipment that is Tax supported including Public Safety Vehicles ($940,000 Police and $2,290,000 Fire) and $363,278 for radio replacement (final year), $225,000 for cardiac monitors, and $580,000 for SCBA replacement. Brewer noted Parks Capital Improvements and that the Parks CIP is a rollforward of FY2020 projects not funded during stagnant debt market and totaling $1,795,000 consisting of: Neighborhood Park Development costing $250,000 for Heritage Gardens; Parks Master Plan costing $200,000; Regional Trail through Wolf Crossing property $1,275,000; Tennis Center pool demo costing $70,000; new Parks projects for FY2021 costing $150,000 for a continuation of ADA Transition Plan providing upgrades to trails and facilities for accessibility. She noted the Transportation Capital Improvements consisting of DB Wood costing $4,000,000 and $14.4 million in future years, sidewalks costing $1,000,000, and intersection improvements costing $1,800,000. Brewer explained the Airport Capital Improvements that include: $750,000 for Airport Maintenance/Equipment Storage Facility; and grant funded projects for FY2021 consisting of design and building of an oil water separator for $40,000, ACTC Communications equipment for $55,000, reseal TWY A&F and repaint markings for $70,000, and engineering studies for $75,000. She noted the Stormwater Capital Improvements costing $1,000,000 and consisting of curb and gutter improvements costing $500,000, drainage improvements/flood mitigation projects costing $300,000, and stormwater inventory costing $200,000. Brewer reviewed the Electric Capital Improvements totaling $5,648,625 and consisting of continued system upgrades, $2.5 million related to new development, various feeder and transformer improvements, and the purchase of equipment for a reel turret trailer costing $104,000, and an underground pulling trailer costing $194,000. She provided the Water CIP totaling $28,650,000 and consisting of projects rolled from FY2020 that total $5,550,000 include Southwest Bypass water line costing $1,800,000, Southside Plant costing $2,250,000, Hoover design costing $750,000, and tank rehab costing. $750,000. Brewer then recapped the Water new CIP projects that total $23.1 million and include Round Rock connection and storage costing $9,200,000 Hoover pump station, line and elevated tank costing $6,100,000, Water Oak costing $3,500,000, South Plant costing $1,250,000, miscellaneous line and tank costing $750,000, and Aviation Drive costing $2,300,000 to address fire flow. She explained the Wastewater CIP totaling $2,650,000 and including: Edwards Aquifer Recharge Zone (EARZ) which is a TCEQ mandate and costs $1,500,000; lift station repair and upgrades as needed for approximately 40 stations system -wide and costs $550,000; and Cimarron Hills Treatment Plant Expansion which is a contractual commitment funded by Oaks at San Gabriel with construction slated for FY2023/FY2024 and $600,000 for design in FY2021 which will be developer reimbursed. Brewer vrovided a summary of CIP Five Year outlook as follows: - Enterprise Funds Electric i 5648,625 7,100,75D 7,454,5001 5,200,000 4,200,000 6,400,000 36,003,875 Wastewater 2,650;00D 4Z,750,000 12,250,000 2,050,000 800,000 57,550,000 118,050,000 Water 28.654D00 8,750,000 63,350,000 16,750,000 500,000 9,250,000 127,250,000 EnrerpriseFundsTotel 35,94%626 s86D0,750 83,054,50D 24,000,000 5,500,000 73,200,000 281,303,975 - General Capital Projects F ac i li ti [ s 4,700,000 _Fleet _ _ _ 3,230,ODD _Other _I 363,278 Parka 1,945,000 _ PubjiCSafety I 805,000 _ Streets _ 5.800.000 Gen Fund - Solid W ,:Ir% k500,000 Downtown TIRZ General Capital Projects Total _75,000 24,41B,278 GTEC GTEC GTEC Total Other Enterprise Funds Airport Stormwater Other Enterprise Funds Total 10,600,000 10,600,000 iC'0,000 G,000,OOD 12,150,000 2,781,5DD 3,227,40D , 2,647,500 750,000 Cy700000 — 4,250,00D MOW 14,600,000 1%OKOW 3,0GD,000— 1,300d100 Al 375,000 2,150,000 — 19,881,5f10 2�j � 1 �]r18Jit 15,850,000 _2L484S000 250,000 500,OOD 19*= . 825,000 75,000 75,000 75,000 75,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,825,001) 1,075,000 1,075,000 1,075,000 1,075,000 4%975.000 88,825,D00 11.383,DOD 25,753,40D 363,278 53 650,OW 67,545.000 1,305,000 13,100,000 : 45,100.000 i 5,400,ODO 128,708,000 Z4S4" 10,600,000 10,600,000 75,000 1,200,000 1,000,000 6,000,000 1,075,000 7,200,000 Grand Total 73MUM 7%S57,ZW 11143 9001 47272 .00 25S59000 20L9630001 SW 95553 Brewer paused for CIP questions and feedback. Council had no questions. Morgan stated that he was able to answer the question regarding the rec center subsidy. Leigh Wallace, Finance Director stated that the breakout for the recreation center cost center covers more than just operations and 53% of costs are recovered from revenue, where 47% is not recovered from other revenue sources. Morgan stated that the cost recovery model will come to council and that would be the correct time to bring forward a proposal for other entity to run the Rec Center. Morgan continued the presentation and reviewed the Electric and Water Funds. He provided the Electric Fund FY2020 projections as: operating revenues totals $90.3 million; electric charges are projected to be $2.2 million down from the budget of $85.5 million, and this decline is the direct result of lower load demand due to COVID-19; developer contributions are projected to total $2 million, which is $1.4 million more than budget; operating expenses total $83.4 million; electric resource expenses are projected to end on budget with the positive impact of renewable energy credit sales; and overall expenses are projected to end $1 million less than budget due to operational savings seen throughout the year. Morgan continued the Electric Fund FY2020 projections noting: non -operating revenues are projected to total $15.2 million, which is $10.2 million above budget and this is due to an anticipated sale of transformers to LCRA and the second year of the sale of the fiber system to the IT Fund including the sale of transformers totaling $9.6 million and fiber system sale installment totaling $651,000; non -operating expenses are projected on budget at $9.5 million for capital improvements and debt service; and a projected ending fund balance of $19.7 with $14.2 million in non -operating reserves and $1.3 million in reserved bond proceeds after contingency is met. He then explained the Electric Fund FY2021 revenues as follows: operating revenues totals $91.3 million which represents 1% growth due to residential and commercial growth and reimbursement from the S. Georgetown TIRZ for electric infrastructure expenses; operating expenses total $86.9 million which is a 4.2% growth over FY20 projections with operational savings continue from FY20 projections, and electric resource management is conservatively budgeted at $62.3 million; non -operating revenues total $5.6 million of bond proceeds for capital improvements; non -operating expenses total $9.5 million for capital improvements and debt service; and the ending fund balance is budgeted at $21.0 million with non -operating revenues at $16.2 million above contingency reserves. He also provided a list of proposed enhancements. the Electric Fund Schedule as follows: Beginning Fund Balance 2,103,921 6,614,742 6,614,742 19,698,736 19,698,736 FY2019 FY2020 FY21120 Ending Fund Balance Actuals 6,333,412 Budget 9,299,132 Projected 19,698,736 20,962,888 . (694,695) 20,268,193 CAFRAdjustment 168,154 - - Contingency 4,082,999 ! 4,142,159 4,190,234 4,018,754j^ 4,018,754 Non -operating Reserve 2,25Q413 4,555,000 14,208,502 16,249,439 r- 16,249,439 Reserved Bond Proceeds 1,300,000 - Available Fund Balance 168,154 6134973 0 694,695 (694,695) 0 Morgan providdedd the Electric Fund Revenues and Expenses as follows: f TActual FY2019 s Budget FY2= Pmfi�cted = Operating Revenue _ Electric Charges _ _ 80,255,956 85,509,803 83,311,754 85,036,003 85,036,003 Administrative Charges 2,261,048 3,192,616 3,192,616 3,222,103 3,222,103 Developer Contrib_u_tians_ 1,706,218 600,000 2,000,000 1,500,000 1,500,000 Fees I 48Z616 816,000 8DO,732 685,OOD 685,000 Transfers In 633,509 500,000 500,000 379,308 379,308 Penalties 800,107 450,000 325,000 450,000 450,000 Misc Revenue 2,371,653 35,000 167,000 35,000 35,000 Interest Income 78,214 40,000 10,000 5,000 5,000 Sales Tax 6,876 5,000 5,000 5,000 5,000 Operating Revenue Total 88,596,198 91,148,419 90,312,102 91,317,414 91,317,414 PY2019 y1on1' sAtualt Budget Projected ML Operating Expense CCW01Non-Departmental 3,855,750 4,832,792 4,798,059 4,75D,DOt1 274,500 5,024,500 CCO521Electric Technical Services 564,208 695,280 686,163 701,416 13,000 716.436 CC0522 Electric Administration 8,762,262 9,220,797 9,578,017 9,456,625 110,687 9,567,312 CCO524 Metering Services 2,036,716 2,183,541 1,933,060 1,878,347 151,768 7,030,115 CCO525T&DServices _ _ 4,465,187 4,905,579 4,318,232 4,495,006 22,87S 4,517,881 _ CC0537 Electric Resource Management 56JR2,299 59,931,221 59,813,414 62,331,349 62,331,349 CC0555Electric Systems _Operations 1.542.494 1,473,757 1,442,538 1,447,4bb 121,865 4569,331 CCO557Electrical Engineering 9S7,412 1,140,568 829,131 1145.604 _ 1,145,604 Operating Expense Total 78,366,327 84,393,535 83,398,613 OSA07,833 694,695 86,902,528 vu FY2020 Available Operating Fund Balance 12,333,791 ; 13,379,626 13,528,231 24,808,318 (694,695) 24,113,623 T - Non -Operating Revenue Bond Proceeds 5,010,000 5,01MDO 5,648,625 5,648,625 Sale of Property 1,504,207 10,000 10,261,01DO 10,000 10,000 Non-0peratingRevenueTota1 1,504,207 5,020,000 15,271,ODO 5,658,625 5,658,625 x -' N on -Operating Expe nse CCOOO1Non-Departmental 3,647,421 4,090,494 4,09D,494 4,152,805 4,152,805 000557Electrical Engineering 3,857,165 5,010,000 510101000 5,251,250 5,351,250 Non -Operating Expense Total 7,504,586 9,100,494 9,10m" 9,504,oS5 915041055 Pitts noted that some of the line items have changed names. Wallace explained cost centers in Workday and how they are applied. Pitts stated that he was looking at power costs and thanked Wallace for the explanation. Wallace noted the Electric Resource Management includes purchase power and would include consultant fees related to purchase power. Pitts noted that developer fees now collected on the front end and that amount is now higher than last year. Morgan responded that the practice of collecting revenue has changed and overall, the process and fee collection has changed. Council had no other questions. Brewer reviewed the Water Fund FY20 projections as follows: operating revenues totals $52 million which is an increase of 6.25% primarily due to development fee growth of $2 million; operating expenses total $42.7 million which is 1.5% lower than budget due to operational savings; non -operating revenues are projected at $35.7 million of bond proceeds for capital improvements and $26.4 million of impact fees; non -operating expenses total $105.6 million for capital improvements and for debt service which matches the fast growth of the water utility; projected ending fund balance of $31.6 million by end of FY2020 with $10 million in non -operating contingency and available fund balance of $11.8 million after meeting contingency requirements; operating revenues totals $52.6 million which is an increase of 1.1% over FY2020 projections. The increase reflects moderate customer growth; operating expenses total $45.6 million which represents a 7.1% growth over FY2020 projections, and this increase is primarily due to increases in whole sale water purchases, increases in utility costs, and metering allocations; non -operating revenues include $35.2 million of bond proceeds for capital improvements and $18.9 million of impact fees; non -operating expenses total $39.1 million for capital improvements and for debt service; the ending fund balance is $34.8 million with a $10 million non -operating reserve and available fund balance of $15.6 million after meeting contingency requirements; proposed enhancements total $375,000 and consist of a Business Analyst full time employee at $80,000, leak detection technology at $50,000, and wastewater plant upgrades at $245,000; and a Water Rate Study currently underway and the last rate update was in 2018 and indicated need for future rate increases due to treatment infrastructure, updated growth patterns and usage, results to Water Advisory Board and Council in next two months, and has an estimated implementation of January 2021. Eeglnning Fund Balance 89,12ILSM 9Z,139,373 020 92,134 373 FY2020 31,637,205 31,637,205 Ending undBialance Actuals 82,511,169 Budget .43, 26y087,321 Projected 31,637,205 34,760,964 (337,604) 34,423,360 CAFRAdjustment - Contingency 6,000,000 9,480,045 9,840,045 9,127,742 9,127,742 Non-operati ng Contingency 7,498,183 4000,000 1Q000,000 10,000,000 10,000,000 Available Fund Balance 69,012,986 6,607,276 11,797,160 15,IW,222 (337,6041 15,295,618 Brewer the provided the Water Fund revenues and expenses as follows: CC0001 Non -Departmental 5,368,794 3,767,733 3,699,500 4,090,375 3,000 4,093,375 CCO527 Water Services Administration 20,251,415 23,204,199 24,410,863 25,983,961. 81,604 26,055,565 CCO528 Water Contracts and Distribution 2,450,122 4,186,426 2,756,113 2,717,5001 2,717150D CC0529WaterPIantMRna_gement 2,180,209 3,482,597 3,251,311 3,972,383 3,972,383 CC0530 Wastewater Operations 559,175 816,598 766,100 896,1001 8_96100 CCO531 Wastewater Plant Management 2,696.176 3,318,076 3,388,422 3,470,331 3,470,331 CCO5321rrigation Operations 167,875 290,000 290,000 295,000 295,000 CC0553 Water Operations 4,241,161 4,300,180 4,136,579 i 4,155,173 8,000 4,163,173 Operating Expense Total 37,914,916 43,365,809 42,698,898 45,580,822 92,604 45,673,426 13 Available Operating Fund Balance Actuals AIL 103,298,468 020 -Budget 97,757,678 FY2020 Projected 101,493,695 38,593,052 . (92,604) 38,500,448 r►� 1 -' Non -operating Revenue jf Bond Proceeds - 1 9,300,000 9,300,000 161300100o 16,300,000 Impact Fees 15,803,197 26,550,000 26,449,377 18,925,W0 18,925,0W Non -operating Revenue Total 15,803,197 35,950,000 35,749,377 3S,225,000 35,225,000 T FY2019 FYZOZO FY2020 -:Non-Operating Expense _ CCO001Non-Departmental 3,760,437 3,377,415 3,191,415 4,083,411 4,083,411 CC0526SystemsEngineering 28,845,463 83,240,428 85,991,660 31,300,000 31,300,000 CC0529 Water Plant Management 408,527 9,202,789 9,502,789 300,000 300,000 CCO530Wastewater Operations 3,293,596 8,552,965 6,634,553 3,026,798 3,026,798 CC0531 Wastewater Plant Management 147,534 3,021,312 150,000 225,000 245,000 470,000 CC0532Irrigation Operations 124,938 125,450 125,450 121,879 - 121,879 Non -Operating Expense Total 36,580,495 107,520,357 105,595,967 39,057,088 245,000 39,302,088 Brewer paused for Water Fund feedback. Pitts noted that there is $28 million in CIP and was roughly $85 last year. He asked if any of those are going to help produce more treated water. Glenn Dishong, Director of Water Utilities, responded that it is a mixture. He continued that a lot what was spent last year and next year will facilitate the capacity of treated water from neighboring cities. Dishong added that the design of facilities that will produce substantially more water in the future. Pitts noted that in the next two years there is lots of funds for CIP. He stated that he knows the City has plenty of water on paper, but it is frustrating when neighboring entities don't have water restrictions, but the City does. Brewer stated that the City has been shifting from just in time restrictions to before just in time. Calixtro asked when the analyst would start. Brewer responded that the position is generally programmed in for October 1, 2020, but from practical standpoint November 1, 2020 for posting and recruiting. There was no additional Council feedback. Wayne Reed, Assistant City Manager, reviewed the Airport and Stormwater Funds. The noted that the Airport Fund contains the following: operating revenues totals $3.4 million; operating expenses total $3.5 million; non -operating revenues total $700,000 of bond proceeds for an airport storage facility that were previously planned in FY2020; non -operating expenses total $1.1 for capital improvements and debt service which also includes $240,000 of CARES act grant funded projects; and a projected ending fund balance of $930,000 by end of FY2021. Ending Fund Balance 1,451,989 1,272,191 1,219,047 1,168,532 (240,000)928,532 CAFRAdjustment (192,952) Contingency 264,442 256,021 25fi,021 , 332,917 - 332,917 Debt Service Reserve - 143,431 143,431 141,478 141,478 Available Fund Balance 994,595 872,739 819,595 694,137 {240,000} 454,137 Reed reviewed the Operating Revenues All Other Revenue Fuel and Terminal Sales _ Leases and Rentals 0 erating"nuesTotal Fund Revenues and Expenses as follows: 80,946 _ 83,000 84,000 79,500 79,500 2,446,977 2,901,500 2,502,01D0 2,502,0D0 2 s02,000 865,655 89("500 874,50D 874.500 874.500 3,393,478 3,881,000 3,460,500 3,456,000 3,456,000 ua FY2020 T -'Operating Expenses Fuel 1,934,792 2,270,000; 2,200,6D9 2,100,000 - 2,100,000 Operations 743,864 925,827 803,487 1,018,013 2,018,013 Personnel 407,610 501,098 475,573 420,071 420,071 Operating Expenses Total 3,086,266 3,696,925. 3,479,569 3,538,084 - 3,538,084 Available Operating Fund Balance 1,605,4681 1,490,611 %239,867 3,136,963 1,136,963 7Actuals i ,i Budget FY2020 Projected . Han -Operating Revenues Bond Proceeds_ 4 - 700,000 700,000 _ Grants 55,870 153,000 240,000 240,000 Bond Interest 3,526 600 5(X) 500 Non -Operating Revenues Total 532,209. 153,600 940,500 940,500 FY2019 TActuals FY2020 Budget FY202D Projected Non -Operating Expenses -- Bond Expense __------.. _.--- .- 7,940 15,000 1 A500 15,500 Capital 545,803 323,566 28,000 750000 240,000 990,D00 Debt Service 131,945 146,420 146,420 143,431 - 143,431 Non -Operating Expenses Total 695,699 484,986 174,420 908,932 240,000 1,148,931 Calixtro stated that she was thinking was that the airport did all of the operation and she didn't think that the City was that much involved in the operations. She asked what this covers, the ground, but not the tower. Reed responded yes, the ground, not the tower and these funds are for the City's operations of the Airport. Council had no additional questions. Reed then reviewed the Stormwater Fund that includes the follows: operating revenues totals $3.8 million; operating expenses total $2.9 million; non -operating revenues total $500,000 of bond proceeds for drainage improvements; non -operating expenses total $1.5 million for capital improvements and debt service; proposed enhancements include a vehicle for site inspections ($35,400) and a rate study ($30,000); and a projected ending fund balance of $1.6 million by end of FY2021. He then provided the Stormwater Fund Schedule as follows: Beginning Fund Balance FfZU19 1,877,923: F 12121 2,672,731 111 4A.4tl 2,672,731 nisr 2,617,677 - 1,617,677 i Ending Fund Balance 2,954,861 1,347,198 1,617,677 1,664,818 70,4001 1,594,418 CA F R Ad) ust ment — _ 1294,485) Contingency 250,000 545,203 545,203 389,470 389,470 Reserved for Debt Service - 436,765 436,765 480,662 480,662 Available Fund Balance 2,410,376 365,394 635,709 794,686 70,4OD) 724,286 Reed provided the Stormwater Fund Revenues and Expenses as follows: Operating Revenue Other Revenue Stormwater Fees Transferin Operating Revenue Total 44,519 2LOOD 21.000 21,D00 3,573,950 3,731,000 3,77000D 3,820,000 3,M,000 3,618,469 3 731,OW 3,791.000 3,84f 000 . 3r 1.000 T Operating Expense Operations 1,643,649 1.855,931 2.067,239 1,939,061, 35,400 1,974,461 Personnel 536,028 607,771 605-532 597,438 597,438 Transfers Out 609,293 4W.500 400,500 266,000 35,000 301,000 Operating Expense Total 4788,970 FY2019 2.SEA,202 FY2= 3,073,271 FY2020 2,802,499_ 70,400 2,872,899 Available Operating Fund Balance 2,707,422 3,132,941 3,390,460 2,656,178 (70,400) 2,585,778 AIRE& ' Man -Opt! rating Revenue Bond Proceeds 710,ODO 650,000 650,000 500,(M 500,000 Other Revenue 156,087 10,000 23,000 10.000 10,000 Non -Operating Revenue Total 866,087 660,000 673,000 530,0D0 510,000 = Mon eratin&Upense _ Ca�ltal 214,596 2,408,615 1,999,172 1,000,000 1,000,000 Debt Service d04,052 447,611 447,611 501,360 501,360 Non -Operating Expense Total 618,648 2,856,226 2,445783 1,501,360 1,501,360 Council had no questions. Morgan resented the Special Revenue Funds stated with the Tourism/CVB Fund noting: revenues total $1.05 million with hotel tax projected at FY2020 levels; expenses total $1.5 million with Red Poppy for April 2021, continued promotion of Georgetown as a destination, and no proposed enhancements; and a projected ending fund balance of $865,000 by end of FY2021. He resented the Tourism Fund Schedule as follows: Beginning Fund Balance 1,301,054 1,551,889. 1,551,889 1,269,484 1,269,494 Ending Fund Balance 1,540,1521 1,580,018 1,268,484 864,918 » i 864,918 CA;R Adjustment 11,738 CrsnlingencV 271,189 273,376 273,376 305,771 305,771 Reserved lur Capital 1,061,680 1,203,635 - Available Fund Balance 219,020 103,007 995,108 559,147 559.147 the Tourism Fund Revenues and Expenses as follows: HOTTax 1,393,228 1,300,000 900,000 900,000 1 900,000 MiscRevenue 106,730 117,783 78,675 95,000 95,000 Sponsorship 49,000 45,000 46,500 50,000 54000 interest Income 23,784 19,000 15,000 5,000 5,000 Grand Total72,742 1,4811,7� 1,040,175' Sr050�000 1,050000 FY2019 FYZMO FY2020 fraou Expenses Actuals Gudpt projected Personnel 356,522 388,953 354,071 402,920 402,920 Operations 955,340 1,035,0157 940,875 1,022,012 1,022,012 Transfer Out 21,783 29,634 28,634 28,634 28,634 Grand Total 1,333,G45 1,452,554 1,323,SM 1,1_53r566 1,453 %6 Council had no questions. Morgan reviewed the Council Discretionary Fund noting no significant changes. He continued that Council directed the excess General Fund revenue from FY2019 to go towards the General Fund economic stability reserve at the beginning of COVID-19 pandemic with $1.759 million available in General Fund ESR and Council can direct using those funds towards projects or transferred to this fund. Morgan stated that FY2021 revenues total $500 for interest income, there are no budgeted expenses in FY2021, and the projected ending fund balance of $111,000 by end of FY2021. Fought asked if Council is using part of that for the neighborhood studies. Morgan responded yes, once scope in confirmed, would propose using those funds. Fought asked if that was already taken out. Morgan responded no, but staff can reserve that amount and recommends reserving $200,00 for now. Fought stated that Council committed to project, so staff should move the funds. Morgan responded that staff was waiting on costs. Fought asked if staff can move at least $100,000. Morgan responded that staff can do that. Mayor Ross suggested moving an initial $100,000 with a note that another $100,000 can be added. Pitts noted that this is for one-time expenses. Morgan responded that is correct. Pitts asked if any one-time projects can be funded out of this fund such as pay increase mentioned earlier. Morgan responded yes, and the Fiscal and Budgetary Policy says that Council can use the economic stability reserve to compensate for lower revenue. He continued that those funds can be used for revenue reductions and there some flexibility. Morgan stated that Council funds may have to part of solution to make some of the compensation changes. Pitts noted the Parks Master Plan. Morgan confirmed that it is being funded through debt. He added that staff can look at one time expenses and the economic stability reserve. Morgan noted that staff cut all discretionary spending to keep the reserve and staff can look at using a portion of that and will bring back some proposals. He continued that Council may decide to wait and pull trigger on compensation at mid -year. Mayor Ross asked that staff bring back options for Council to consider on July 28, 2020. Morgan reviewed the Street Maintenance Fund noting: revenues total $3.9 million with sales tax revenue flat for FY2021; expenses total $4.4 million with cutler process and high performance pavement seal in addition to a detailed street listing on June 23, 2020 workshop; and a projected ending fund balance of $1.9 million by end of FY2021. Council had no questions. Brewer reviewed the GTEC Fund noting: revenues total $18.6 million with $7.9 million in sales tax (flat from FY2020) and $10.6 in bond proceeds to fund new street projects for economic expansion; and expenses total $16.8 million with $10.6 million in new projects with $2M for Costco area; $600,000 for Confido; $8 million for Aviation Drive; $3.8 million in debt service which includes transfer to General Debt Service; and a projected ending fund balance of $15.3 million by end of FY2021 with a fully funded contingency and debt service reserve. Brewer vresented the GTEC Fund Schedule as follows: FUllb ,Ii ir ., _ $eginningFund Balance Actuals 18,539,789', Budget 21,649,668' 020 Projected 21,649,668 FY2020 13,508,169 13508,159 Ending Fund Balance Actuals 20,686,127 Budget 11,528,794 Projected 1315081169 15,302,040 25,302,040 CAFRAdjustment _ (135,527) Contingency 1,468,7SO 1,984,375 1,984,375 1,984,375 1,984,375 Debt Service Reserve 3,225,642 3,602,792 3,494,232 3,494,282 Available Fund Balance 19,081,850 6,31B,Tn 7,921,002 9,823,433 - 9,923,433 Brewer presented the GTEC Revenues and Expenses as follows: Bond Proceeds 4,700,000 4,700,000 10,600,000 - 10,G00,000 Interest 480,236 230,000 225,000 60,000 60,000 Sales Tax 7,369,645 7,937,500 7,937,500 7,937,500 7,937,500 Grand Total 7,849,861 1207,51M 12,86R,S00 18,597,500 - 180507,500 r0 FY2020 Exptnse Allocation Actuals 3130,897 Budget 409,423 Projected 409,423 402,162. 402,162 Capital 1,985,185 13,509,855 15,259,855 10,600,000 10,600.000 Debt Service 836,900 932,350 932.350 1,053,050 1,053,050 Operations 122 800 800 800 800 Other 5,734,375 210001000 1,984,375 1,984,375 Transfers Out 2,490,440 2,401,571 Z401,571 2,763,242 2,763,242 Grand Total Brewer reviewed the GEDCO Fund noting: revenues total $2 million with forecasting flat sales tax from FY2020 to FY2021; expenses total $9.9 million with $3.3 million for previously approved projects, $2 million for Aviation Drive utility improvements, and $3.9 for future economic development projects; and a projected ending fund balance of $698,000 by end of FY2021 which meets the contingency and debt service policy. Brewer presented the GEDCO Fund Schedule as follows: Ending Fund Balance 8,305,73S 699,616 8,836,402 878,862 (180,000) 698,862 CAFRAdjustment 5175.439j - - - Contingency 460,603 499,299 489,298 496,093 496,093 Debt Service Reserve - .10.318 200,169 202,769 202,769 Reserved forCapital Available Fund Balance j 7,669,693 - 8,146,935 180,000 (180,000) Brewer bresented the GEDCO Revenues and Expenses as follows: Interest 178,542 76,D00 85,020 19,00t1 19,000 Other - - Sales Tax 1,842,411 1,984,375 1,984,375 1,984,375 1,984.375 Grand Total 2,020 953 2,060,175 2,069,395 2,003,375 2,003,375 Expense Allocation FY2019 Actuals 238,622 FY2020 Butiget 244,771 FY2020 Projected 244,771 283,783 283,783 Debt Service 103,725 104,211 104,211 90,572 90,572 ED Projects _ 30,151 8,803,855 700,000 9,256,391 9,256,391 Operations 110,167 139,034 115,123 130,000 180,000 310,000 Transfersout 205.189 207,669 207,669 200169 - 200,169 Grand Total 687,854 9,499,540_ 1371,774 9,960,915 180,00D 1q,7R0,915 Council had no questions. Mayor Ross called for a break at 4:49 and the presentation resumed at 4:55 p.m. Brewer presented the Internal Service Fund starting with the Joint Services Fund that includes: revenues total $18.03 million; expenses total $17.6M million; proposed enhancements total $491,638 which include an Infrastructure Project Manager in Engineering, a Customer Service Rep in Customer Care, overhead cost allocation study, on -going risk - based audit/internal audit, Workday training and programming, Itineris/UMAX contingency, and warehouse upgrades; and a projected ending fund balance of $2 million by end of FY2021. Brewer provided the joint Services Fund Schedule as follows: Beginning Fund Balance 1,369,078 Ending Fund Balance E 1,274.767 1,070,215 2,032,470 2,950,093 r - CAFR Adjustment �P (19,207) - - Contingency - 1,227,018 1,070,215 1.070,215 1,567,776 Reserved for Capital j Available Fund Balance ,l 28,542 0 962,255 t T1,382,317 Brewer provided the Joint Services Revenues and Expenses as follows: 2,032,4 2,467,634 (526,671)1 - Administrative Charges 17,731,222 17,691,145 17,_640,11_1 17,963,395 17,963,395 Fees _ _ 28,890 20,000 23,620 23,600 150,000 173,600 Piscfievenue 144,878 108,000 96,075 89,250 89,250 Transiersln - 313,405 331,751 - Penalties 13,920 Grand Total 17.918.910 18.332.550 A091,557 A076,245 150,Wo 18,226,245 CC000_1 Non -Departmental CC0302 Finance Administration CCO315 Accounting CCO317 Purchasing CC0321 Customer Care CCO502 GUS Administration CCO503 Organizational and Operational Excel CCO526Systems Engineering CCO_534 Conservation CCO547 Business System Services CCO637 Economic Development CCO639 Human Resources CC0640Citywide Human Resources 020 FY2020 T ctuals 1,407,595 Budget 741,194 Projected 1,089,171 565,999 35,000 600,999 957,379 1,050,021 963,711 1,044,276 196,000 1,240,276 1,041,479 1,128,153 1,124,962 1,231,454 - 1,231,454 763,425 923,989 888,375 930,637 18,800 949,437 4,665,988 5,115,458 5,020,817 5,682,957 109,854 5,792,811 1,419,084 - - 132,497 329,898 299,152 317,386 317,386 2,257,510 2,565,963 2,306,340 2,393,151 314,018 2,707,169 645,400 894,920 731,365 799,133 - 799,133 1,102,642 1,198,892 1,043,437 - 580,303 687,049 605,918 460,761 460,761 983,783 1,447,934 1,320,069 1,476,671 3,000 1,479,671 988,765 1,331,061 1,087,621 1,219,444 1,219,444 1,067,373 1,063,009 993,354 1,036,752 1,036,752 Brewer presented the Fleet Services Fund noting: revenues totals $7.2 million with revenues that are based on replacement schedules for City vehicles; expenses total $7.2 million; enhancements include the purchase of vehicles for new staff positions and the replacement of the courtesy van; and a projected ending fund balance of $2.9 million by end of FY2021. She then explained the Facilities Services Fund noting: revenues totals $3.7 million which is a 7.4% increase due to new fire stations and city center; expenses total $4.1 which includes $30,210 replacement of awnings at Animal Shelter; a projected ending fund balance of $1.8 million by end of FY2021 which meets contingency reserves and building capital asset replacement reserve. Brewer then presented the Information Technology Fund noting: revenues totals $9.6 million which is a 25% increase due to reorganization of business systems cost center (previously in Joint Services Fund) and allocated costs of maintenance for city's fiber network (previously in Electric Fund); expenses total $9.7 million; proposed enhancements include three full time employees related to reorganization with two positions for fiber (one position retained in electric for engineering support, so one net new position), one System Analyst for Geodigital, automated meter reading and meter data management, with a current position serving in two roles in electric and a position was retained in electric engineering, data center software costing $100,000 and integration software costing $6,000; a projected ending fund balance of $1.6 million by end of FY2021; and evaluating transfer of more fiber assets over a three to four year plan to transfer all assets from Electric Fund. She then provided the IT Fund Schedule as follows: M M , I Mill Beginning Fund Balance 2,732,490 2,452,003 2,452,003 1,790.215 1,790,215 Ending Fund Balance — 2.492,208 — 2,167,532 4 1,790,U5 2,996,144 (389,506); 1,606,638 CAFRAdjustment _ (40,205) Contingency 543.744 651,790 651.790 1,050,449 1,050,449 Re servedfor Capitat 882,727 1,031,7Ga 380,764 945.695 556,189 Available Fund Sal ance 1,025,532 4931979 757,661 to) (389,506). (0) Brewer provided the IT Revenues and Expenses as follows: Administrative Charges 6,845,996 7,643,973 7,643,873 9,624,591 9,614.591 Interest Income 51,582 30,000 30,000 8,000 8,000 Transfers In 1151000: 53,860 53,860 6,000 6,000 Grand Total 7 012 S78 ! 7,7Z7,733 7,727,733 . 622 591 6 D00 9 628 591 119 FY2020 FY2020 ials Budget Pro]eeted CC0001 Non -Departmental 376,500 586,329 589,329 - _ CC06521nfrastructure 6976,3601 25,875 7,079,192 2,219,982 9,0001 2,228,982 CL9662 Applications 70,000 1,246,591 91,967 1,338,557 CCO672 Fiber 651,000 110,870 185,540 296,410 CCD682ITAdminfstrati on 5,408,342 109,000 5,517,342 CCO592ITPubIJcSafeiy 430,878 - 430,878 Grand Total 7 25 860 8,012,204 8,389 521 9,06,662 39 06 91B1Z1fi9 Morgan presented the Self Insurance Fund noting: revenues totals $9.1 million which is a 0.76% slight decrease from FY20 projections; expenses total $9.5 million which is projected conservatively and includes 9.5% increase overall,10.4% projected increase in medical claims, and 16% increase in stop loss; and a budgeted ending fund balance of $3,979,850 million by end of FY2021 with both reserves funded in total and an ending fund balance increased by $1.1 million over FY20 budget. He then covered the next steps for the FY2021 proposed Budget calendar as follows: July 281h staff will provide follow-up information on compensation related to market and merit increases; August 111h present City Manager's proposed budget; August 1111, Regular Council Meeting where Council will set max tax rate and set dates for Public Hearings; September 9th Regular Meeting with public hearings, first reading of the budget, and first reading of the tax rate; and September 22nd Regular Meeting with second reading of the budget and second reading of the tax rate. Morgan noted the public outreach and that currently the draft workbook and presentation posted at finance.georgetown.org and in the future the proposed Budget will be posted on the City website and offered as an eBook at Library and linked on Facebook. He continued that staff will provide a press release on proposed budget, the adopted Budget in Brief will be published on website, the adopted Budget (full book) published on website and library, and the Budget video on the adopted Budget will be on the City's website and social media. Council and staff agreed that the meeting tomorrow is not needed. Calixtro noted the addition of 14 positions and asked for the total cost of compensation for those positions. Morgan responded that staff will have to add them up but noted that only six are in general fund. He continued that other positions would affect the funds they are in and the cost is $431,000 for firefighters including benefits, equipment, and gear. Morgan noted that if those are not funded then staff would have to make other adjustments. The following comments were made during the meeting using the Zoom client: Cody Stout, President of Georgetown Fire Association thanked Council and added that it is heartwarming to hear Council take their risk into account. He wanted to emphasize that the Fire Department has a higher degree of risk and offered to speak with Council if they have questions. Adjournment Motion by Fought, second by Triggs. Roll Call Vote Calixtro - Yes Triggs - Yes Fought - Yes Pitts - Yes Jonrowe - Yes Gonzalez - Absent Approved 5-0 (Gonzalez absent and District 2 vacant). Meeting adjourned at 5:19 p.m. Approved by the Georgetown City Council on V- Ld L c� Date d, z' (2'�" Z� 1 ��� Dale Ross, Mayor Attest: Cit ecretary