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