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HomeMy WebLinkAbout02-Overview - City Summary October 1, 2008 To the Honorable Mayor Garver, Members of the City Council and Citizens of Georgetown: We are pleased to present to you the City of Georgetown Annual Budget for 2008/09. The Annual Budget is the outline of the programs and services to be provided by the City during the coming year. We believe that the 2008/09 Annual Budget is a sound financial plan that provides the requested level of services and infrastructure improvements needed for our growing community and continues the direction established by our citizens and the City Council to meet the existing challenges and effectively plan for future needs. It is also an opportunity to ensure energies and resources are directed to the programs, policies and issues that are shaped by the Georgetown 2030 Plan, the City’s recently adopted comprehensive plan and prioritized by the City Council. Community Growth – 2007/08 in Review The previous year has been filled with challenges and great opportunities, as the City’s tax base grew to over $4.2 billion. Increased demand for quality affordable services continue to confront City leaders as our population now exceeds 47,000. The citizens of Georgetown have come to expect higher than average services, therefore the 2008/09 budget continues efforts to maintain that quality of life while retaining the historic “small town charm” that makes Georgetown unique. Funding those services continues to be a challenge. Expanded revenue sources have been developed over the past several years to help offset potential tax increases and bring new funds into the City. One such revenue source has been the expansion of the City’s Electric Utility into the City of Round Rock with service to the Round Rock Outlet Mall and Scott and White Hospital. Another example is the sale of water services to municipal utility districts outside our ETJ (extra territorial jurisdiction). In both cases, the City generates added revenues without the requirements of providing any public services. 2008 was another landmark year for business activity in Georgetown, as evidenced by Fortune magazine listing Georgetown as the 2nd best place in the country to launch a new business. Commercial property values grew over 21% in 2008, marking the 4th straight year commercial valuations have grown by over 20%. The Citicorp data center began operations in its new 300,000 square foot facility in February 2008, thus increasing not only property valuations, but electric sales as well. The Texas Life Sciences Commercialization Center, a partnership with area universities and other local governments to encourage development of bio-science technologies, continues to expand with Deaton Engineering joining the program this year. Two other local employers, Airborn and Texas Outdoor Power Equipment, have announced expansion plans for next year. Build out of both Wolf Ranch and Rivery retail centers have also occurred. A major hotel/convention center is scheduled to open by 2010 at the Rivery, providing much needed meeting space to the community, as well as, improvements to Rivery Park. A second Walgreen’s drug store is under construction on HW29, across from Wolf Ranch. Two new hotels are being built along IH35 that will jump start the implementation of the Williams Drive Gateway Master Plan redevelopment project. Several other smaller commercial and retail centers were either under construction or newly completed in 2008. Overall, over 1 million square feet of new commercial property, valuing over $72 million, was added in 2007/08. The historic downtown area continues to provide a focal point for the community, as new and expanded businesses make the “Square” their home. The County Courthouse reopened in December 2007 after a three year, $9 million renovation project, funded by Williamson County that restored the building’s historic structure. Construction continues on the Monument Cafe project, which not only relocates a popular eatery, but will bring over 35,000 square feet of new mixed use development to the area when completed. Tamiro Plaza, a new four-story building one block off the square, will open in November with medical offices and a new upscale restaurant. The City’s Facade Fund grant program has disbursed over $114,000 to improve and preserve historic buildings on the square. The City also completed the first phase of the wayfinding signage project, to encourage and support local businesses on the square. Preservation of the historic square continues to be an important priority for the City Council, as it truly is the “Jewel of Georgetown”. Residential growth continues, although at a slower pace than in previous years. The City issued 768 residential permits, valued at over $203 million, yet it is the lowest number since 2003. While residential development has slowed, build-out continues in Sun City, and other non-age restricted developments throughout the community. Three large master-planned developments, adding as many as 3,000 homes, are scheduled to be built within the next five years. The 600 unit Sierra Ridge project, being developed by the Georgetown Housing Authority, is aimed to fulfill the need for added options for affordable housing in Georgetown. In addition, the City Council formally adopted a new comprehensive plan, the Georgetown 2030 Plan, in February 2008. This Plan provides a vision for the future and is designed to address growth issues facing the community over the next 20+ years. This year-long project required citizens throughout the community to come together and agree on what made Georgetown unique and provides a foundation for policies, strategies and actions needed to ensure that the Georgetown of 2030 is as special as it is today. While managing growth will continue to challenge City leaders, the commitment to provide residents with that “something special” that makes for a truly unique hometown feeling will last far beyond the current budget cycle. Needless to say, it’s an exciting time to be in Georgetown. The 2008/09 Budget Process The City Council began its 2008/09 budget process in late February 2008, with the presentation of the 2008 Citizen Quality of Life Survey results and input from the City’s advisory boards and commissions. After reviewing this feedback, the City Council updated and confirmed the budget Priority Areas (strategic goals necessary to implement the 2030 Plan) for the upcoming year. Phased strategies from 2007/08, as well as, new strategies for 2008/09 were then compiled with estimated project costs included. The City Council was then asked to individually rank each strategy on a scale of 1 to 4, with 1 being the most important. The results were then compiled and a priority listing was developed. This year’s priorities are centered on managing growth, preserving the City’s quality of life, and enhancing economic development within the community. Utilizing the City’s fiscal and budgetary policy, the City Manager and management team focused on developing new programs for the highest rated strategies, resulting in a budget proposal that balanced the cost of providing new programs with an acceptable revenue scenario. ii 2008/09 Budget Overview The 2008/09 Annual Budget is an operational and financial plan for the programs and services provided by the City during the coming year. The adopted $214.7 million budget includes funding for all services, including utilities, as well as capital improvements for the upcoming year. Of that amount, approximately $134.6 million is for continued operations, which includes $46.6 million for purchased power costs. In addition, the budget includes $15.8 million for debt payments and $52.9 million for capital improvement projects, of which $13.2 million are re-appropriated from the previous year’s budget. Operating interfund charges/transfers, which include internal service fund transfers, are approximately $11.4 million. The 2008/09 Annual Budget is approximately 15.5% greater than the 2007/08 amended budget. Overall, on-going operating costs increased as a result of new programs to address Council priorities, increased purchased power costs and other fixed operational expenses. Budgetary Variances  Community Development – 3.4% decrease due to the delay of hiring two vacant building inspection positions until adequate development revenue projections are attained, as well as, the transfer of a planning position to Transportation Services. Due to the overall slow down in the development area, cost savings were budgeted by delaying the hiring of open positions. Additional funds were added for neighborhood cleanups and maintenance promotions within Code Enforcement.  Community Services – 14.7% increase related to the opening of the new Recreation Center, scheduled for January 2009. The budget includes 9 full-time equivalent positions to provide year-round staffing of the City’s new indoor pool. Operational costs associated with this expansion are also included. New events and activities are planned to increase revenues to help offset the added expenses of the Center. Park improvements include continued funding of playground equipment replacement. Public access computers were also replaced at the Library. An expanded marketing and advertising campaign to increase visitors is also included for the Convention & Visitors Bureau.  Finance and Administration – 33% increase due to the change in method of accounting for capital purchases in the Fleet Fund. In previous years, capital purchases were accounted for in a general capital project fund, but are now accounted for directly within the Fleet Internal Service Fund, whose operations are included in this division. A contract specialist position is added in the Purchasing Department to review and ensure proper documentation of all citywide contracts. Additional funding is also included for increased costs of printing and mailing utility bills. iii  Fire Services – 23% increase due to increased staffing and compensation for public safety needs. Six additional firefighters and related promotions will implement a second “squad” at Fire Station 3 in Sun City. The new firefighters are being funded by Williamson County Emergency Services District (ESD) No. 8 in an effort to improve response times within the ESD. Staff compensation was also increased to match 95% of Round Rock’s Public Safety pay plan. In addition, funds were also included to purchase new radio equipment.  Georgetown Utility Systems (GUS) – 12.5% increase due to increased staffing within the Electric and Water utilities. Two new Electric crews were added to streamline new system construction and reduce the dependence on outside contractors. Two other system support positions were added to alleviate workload and mange system growth within the utility systems. An engineering associate responsible for mapping electric infrastructure was also included. Two new apprentice positions were added in Water Services to improve service delivery. Increased treatment costs for water and wastewater are also funded. Purchased power costs increased 14.2% due to rising energy costs, as well as, increased customer growth, including new services to Citicorp data center and Scott and White Hospital.  Management Services – 17% increase primarily due to replacement costs of computer equipment for Information Technology, as well as, the full annual impact of operating their new data center. Social services increased to match the Council’s policy of providing funding equal to 1% of the General Fund operating budget. The Main Street program was transferred from Community Services to provide efficiencies within Economic Development through targeted downtown development. Additional funding for the facade grant program is also included. Recruitment funding in Human Resources was also increased.  Police Services – 6% increase as a result of the increase in compensation to match 95% of Round Rock’s Public Safety pay plan. Funds are also included to purchase standardized handguns for all officers who previously were required to purchase them individually. Funding is also increased to support the volunteer policing program enacted previously.  Transportation Services – 14.3% increase due to new programs, including the update to the Stormwater Master Plan and Overall Transportation Plan, both funded as one time costs. A dedicated utility patching crew was added in the Street Department, funded by the utility funds to coordinate and streamline utility street cuts and relocations. A planning position was transferred from Community Development to focus on long-range transportation issues. Also funded is the acquisition of traffic signals on Williams Drive, as well as, continued development of a signal maintenance program for City owned traffic signals. The transportation engineer position was also transferred to GUS to consolidate engineering activities within one department of the City.  Capital Improvements – 20% increase due to the renovation of the recently purchased Albertson’s building for use by Police and Municipal Court scheduled to begin in early 2009. Extensive water and wastewater improvements related to the 2006 annexations process will be under taken, as well as, a major expansion of the Lake Water Plant clearwell and purchase of land for a future water treatment plant. Drainage improvements along Maple Street and Northwest Blvd. are also planned. In addition, over $2 million will be expended for street maintenance in 2009. General Capital projects include renovation of the Georgetown Municipal Complex to increase capacity within the facility. Replacement of Self-Contained Breathing Apparatus (SCBA) to meet safety regulations is also funded.  Debt Payments – 6.8% increase due to the issuance of General Obligation (GO) bonds in May 2007 for the Recreation Center Expansion. Utility debt service increases are related to the May 2008 revenue issued for electric and wastewater improvements. The 2007 GO bonds completed the issuance of the November 2004 voter approval of $21.5 million for new City facilities, including the Library and Recreation Center expansion.  Interfund Charges – these amounts vary from year to year due to project funding and source of funds. iv Revenue Overview The City Council adopted a property tax rate of $0.35622 per $100 valuation, which is a 1.5% increase over the effective tax rate. The effective property tax rate (the rate needed to collect the same amount of revenue as last year based upon the current year valuations) is $0.35078, which is 1.6% less than last year’s adopted rate of $0.35659. The rollback rate, or the highest rate allowable without risking a rollback election is $0.37144. This year’s rate includes $0.0283 of sales tax used to reduce property taxes. Georgetown continues to have one of the lowest municipal tax rate, in the Central Texas area. The proposed 2008 rate of $0.35622 includes a 1.1% decrease in operations and maintenance (O&M) funding. All new general fund programs are funded through either property taxes collected on new development, or another revenue source, such as sales tax or Return on Investment (ROI) from utilities. Interest and sinking (I&S) increased by 1.5% due to additional debt service for the General Obligation bonds for the Recreation Center expansion issued in May 2007. Overall, the total tax impact from the November 2004 bond election is $0.03975. The assessed property valuation for 2008/09 is $4.2 billion, which is an 11.3% overall increase over last year’s adjusted value of $3.7 billion. Of this increase, $276 million is new and annexed property. Existing property values increased 3.8% over last year. The average home value for 2008/09 increased from $183,970 in 2007/08 to $193,263, a 5% increase over prior year. The 2008/09 Annual Budget includes a 3% overall increase in total sales tax, which increased slightly more then 9% in 2007/08. Growth in base line sales tax (without Wolf Ranch) continues and has averaged about 9.5% in 2007/08 due primarily to utility growth and recognition of some internet sales. Building materials have steadily declined throughout 2008, as the development process has slowed within the Central Texas Area. This decline has been offset to some extent by local retail as more citizens “shop Georgetown”. At Wolf Ranch, an 800,000 square foot retail center developed by Simon Properties that opened in July 2005, revenue continues to grow at about 1.5% annually. Wolf Ranch is currently home to Target, Old Navy and Kohl’s and numerous smaller retailers. The City rebates 53% of the 1% general sales tax generated at Wolf Ranch to the developer as an economic development incentive. Wolf Ranch revenue is expected to remain flat in 2009. Impacts from rising fuel costs, as well as, other commodities may further stall sales tax revenue growth. Georgetown residents have had a historically higher than average disposable income that has helped to insulate the City from unfavorable economic conditions. But with the weakening national economy, these conditions may no longer apply. Staff has taken these factors into account in projecting a 3% overall revenue increase. If revenues fall below this estimate, the 2008/09 Annual Budget has several built-in contingencies. These include delayed hiring for several new and open positions, as well as, hiring of positions based only on achievement of revenue benchmarks. Sales Tax revenue now funds 20% of the General Fund budget. Due to the volatility of this revenue stream, the City maintains 90+ days of contingency reserve funding within the General Fund to offset any potential revenue shortfall. The City has reviewed rates for 2008/09 and determined that water and wastewater rates are sufficient to fund the costs of operating the systems. The implementation of the flat rate sewer program in 2007 has eliminated variances in wastewater revenue, and therefore, a rate adjustment is not expected until 2010 at the earliest. Timing of any future adjustment will be determined by system growth or regulatory mandates. Water rates are currently adequate to meet funding requirements for the next several years, although changes in conservation rates may be recommended next spring as part of the City’s overall water conservation plan. v Electric rates were adjusted in October 2007, before the dramatic changes in fuel costs were incurred. This summer the City began charging a Power Cost Adjustment (PCA) due to the increased fuel prices charged by the City’s primary electric supplier, the Lower Colorado River Authority (LCRA). This fuel increase is a direct pass through to the City’s utility customers based on per kWh use. The PCA is expected to increase in winter 2008, as LCRA increases their fuel costs to the City. Garbage rates vi were increased in 2007/08 to reflect the cost of providing services under the new solid waste contract with Texas Disposal Service (TDS) approved last fall and the City’s costs of contract oversight, as well as, the operation of various City conservation programs. Rising fuel prices will require the City to pass-on a “fuel factor” to users. Under the contract, TDS can request an increase if fuel prices rise beyond projected levels. Increased prices in 2008 have made this a reality. The actual amount of the monthly “fuel factor” will be determined in the upcoming months. Stormwater rates are projected to remain the same for the upcoming year. Yet, increasing environmental mandates, including several Environmental Protection Agency (EPA) requirements that become effective in 2010, will require a rate increase next year. This is also impacted by the on-going maintenance of the expanding drainage system. In any case, a full rate analysis will be conducted in 2009. Budget Program Highlights The major program initiatives, linked to the Council’s Priority Areas (paraphrased in bold italics) for the 2008/09 Annual Budget are outlined as follows:  Community Development The division will continue efforts for community long-range planning by identifying, reserving and rezoning land within the City for future commercial and employment areas. In addition, creation of development standards for Mixed Use Land areas will ensure quality growth, and a new ordinance will be developed to ensure adequate public facilities into the future. The division will also work on continuing the City’s voluntary and involuntary annexation plan. A Development Engineering Associate is added after mid-year to improve service delivery and increase operational efficiency within the Planning Department. The Division will also assist in alleviating traffic congestion with the development of a comprehensive bicycle route and sidewalk network that is interconnected to link residential areas to schools, shopping and recreational areas. A study to redesign street standards will also be undertaken to decrease driver speed and allow for parking, sidewalks and bicycle lanes on new streets. $10,000 of additional funding is included for the promotion of expanded neighborhood cleanups to improve building maintenance and expand recycling opportunities and environmental programs by Code Enforcement.  Community Services This division will continue to expand and coordinate the parks and recreation system through the implementation of the recently updated Parks and Open Space Master Plan. Over $600,000 is added for nine full-time equivalent positions, along with increased operational funding, to facilitate the opening of the new Recreation Center expansion. Funding is also included to continue the expansion and revitalization of existing neighborhood parks. The Convention and Visitor’s Bureau will spend $25,000 to continue revitalization and economic development through an aggressive marketing and advertising program to promote the City’s array of arts, heritage and cultural festivals and events to bring more visitors to the community.  Finance and Administration The division will continue implementation of the City’s Facility Plan by coordinating the design and renovation of the recently purchased Albertson’s building into a new police and municipal court facility, as well as, renovation and expansion of the Recreation Center, scheduled for completion January 2009. Renovation of both the Georgetown Municipal Complex (GMC) and Fire Station 2 will also be undertaken. Increased security systems for City facilities is also funded, as is continued funding for the “Welcome to Georgetown” and wayfinding signage program. The Division will increase operational efficiency and financial integrity by adding a Contracts Specialist position to ensure compliance and standardization of City contracts. Efforts to continue revitalization and economic development involve analyzing the cost benefit to the City to purchase or lease industrial and commercial properties for job creation and expansion of the tax base.  Fire Services Improving emergency response levels will continue to be the focus for Fire during 2008/09. $254,699 is included to add 6 additional firefighters at Station 3 in Sun City, with $84,649 included for necessary promotions to implement a second squad at that station. This program is being funded by the Williamson County Emergency Services District (ESD) No. 8 to provide improved response to the District. $400,000 is included for the replacement of Self-Contained Breathing Apparatus (SCBA). Funding for portable radios is also added this year.  Georgetown Utility Systems (GUS) The division will increase operational efficiency and financial integrity when Systems Engineering inventories the City’s stormwater drainage system in preparation for regulatory changes in 2010. Energy Services will also become more efficient with the addition of 2 new crews totaling over $799,165, including equipment to replace construction services currently being outsourced. 2 technical support positions are also added to provide better oversight and management of the system to further develop an approved System Control Center. Environmental Services and Water Services will expand recycling opportunities and environmental programs through aggressive advertisements promoting the City’s recycling and composting programs, as well as, through the development of a pretreatment program to control and monitor industrial pollutants in the sewer system. Environmental programs will be furthered by participation in a solar energy pilot program. Working with Transportation Services, the Division will assist in implementing a fiber network for use in alleviating traffic congestion. By working with other area water providers to expand the City’s service area, where feasible, the Water Administration department will improve the quality of services while keeping property taxes low for our residents. $100,416 for two new water apprentices is funded this year for better management of the water and sewer systems. In addition, GUS Administration continues to investigate potential new power suppliers for the City’s growing electric needs.  Management Services Management Services provides oversight to all divisions and also includes several stand alone departments that are not included elsewhere. Information Technology will prepare a citywide technology disaster recovery plan to increase operational efficiency and financial integrity. Human Resources will develop an on-going funding plan to implement market compensation for personnel and ensure competitive compensation for all employees. Con- tinued implementation of the city-wide records management program will improve the quality of services while keeping property taxes low. $25,000 is included to increase funding for the Main Street Facade and Sign Reimbursement grant program to continue implementation of the Downtown Master Plan. Funding is also included for a consultant to help determine than target recruitment of specific businesses for the downtown area. Efforts will proceed to continue revitalization and economic development through further implementation of the Williams Drive Gateway redevelopment plan. This division will ensure the completion of all strategies outlined in the 2008/09 Annual Budget. vii  Police Services Police will strive to improve emergency response levels through increasing the compensation plan to equal 95% of Round Rock’s pay plan, thereby, improving retention and recruitment efforts in filling open positions within the department. In addition, funds are included to purchase new standardized handguns for City officers. Increased funding for the Volunteers in Policing program is also included.  Transportation Services To alleviate traffic congestion, as well as, continue efforts for community long-range planning, the division will be responsible for updating the Overall Transportation Plan in accordance with the Georgetown 2030 Plan. $150,000 is funded to develop a plan to assume responsibility of traffic lights within the City, with expected implementation in 2010. As part of this process, the division will further implement a traffic management program to include signals, signs and markings, speed limits and other traffic calming measures. $365,337 is funded by the utility systems for a three-person patching crew in the Street department to improve the quality of services while keeping property taxes low by repairing utility street cuts that were previously outsourced. $175,000 is funded to prepare the Stormwater Master Plan update and implementation, as well as, the drainage master plan for the planned Transit Oriented Development (TOD). $75,000 is also funded to further research options for implementing a fixed route bus system in Georgetown. Capital Projects Capital improvements make up 24.66% of the City’s upcoming budget. The major projects, by type, are listed below: General Capital Projects General capital projects are those that are funded through the general tax base, versus utility capital projects, funded through utility rates. The following projects are included as general capital projects for 2008/09:  Downtown Improvements: o Maple Street Realignment $650,000 in conjunction with Southwestern University  City facility renovations: o $5 million for Phase 1 of Police/Municipal Court relocation to the renovated Albertson’s building o $936,500 for the renovation of the utility services area at the Georgetown Municipal Complex o $529,00 for the expansion and renovation of Fire Station #2 Street Improvements and Maintenance The City’s street maintenance program is funded through a dedicated 1/4 cent sales tax and the General Fund. The 1/4 cent sales tax for street maintenance was reauthorized by voters in November 2006 for 4 additional years. The 2008/09 budget also includes 3% of the General Fund budget for on-going and proactive street maintenance. This year’s General Fund contribution is $1.3 million. 2008/09 Street Maintenance Projects include: 15th Street, Church St to Hutto Rd Scenic Drive, Leander Rd to 2nd St Del Webb Blvd, Williams Dr to Sun City Blvd Riata Trails Subdivision Quail Valley Subdivision Old Town, Church & 8th to College & 2nd viii Utility Capital Projects The City will fund over $37.7 million for utility and infrastructure improvements in 2008/09. The majority of these projects are a part of the City’s on-going capital expansion and upgrades to ensure quality services to customers. Electric – Improvements are scheduled throughout the system. Water Services – Improvements include line upgrades, mandated Edward’s Aquifer Recharge Zone testing and repairs, Lake Water Plant Clearwell improvements, and water and sewer projects necessitated by the 2006 Annexation process. Funding to purchase land for a future water treatment plant is also included. Stormwater Drainage – Funds drainage improvements, including Williams Drive Gateway area and Maple Street culvert improvements. Financial Highlights The City is committed to sound financial planning and direction, and uses the City’s Fiscal and Budgetary Policy to guide the budget process and financial administration. This policy is reviewed and updated annually as part of the budget process and requires all funds be self-sustaining, meaning on-going operating revenues must fund on-going expenses. Also, the policy has substantial debt coverage requirements. All enterprise funds that have debt commitments are required to maintain 1.5 times coverage, meaning excess operating revenues must equal 1.5 times the annual debt service payment. The 2008/09 Annual Budget meets the Council's goal that each utility system is a self-supporting operation that provides a desirable and affordable level of service. All of the City’s enterprise funds, including the Airport, are self-supporting and policy compliant in 2008/09. The City-wide contingency reserves, representing 75 days City-wide expenses, has increased 8.6% from $13.35 million to $14.52 million due to the increase in the total operating budget. This increase results from expanded services in the Electric department, as well as, increased costs associated with the opening of the expanded Recreation Center in early 2009. Included in the total contingency is $6.5 million within the General Fund, representing 90 days of operating expenses. This is an 11% increase over the $5.85 million General Fund contingency in 2007/08. Capital improvements and purchased power costs are excluded from the contingency alculation. rage consumption method to factor out any weather aberrations. c The City's revenues continue to rise due to added property tax revenue resulting from an increased total assessed valuation, increases in sales tax revenues and increased utility service demands. The City's overall customer base for its electric, sanitation, wastewater and water services has increased at a rate of 5-7% for the last four years. The City continues to conservatively project a 5% increase in revenues for utility growth. Since weather conditions affect the electric and water revenues significantly, revenue projections utilize conservative growth estimates to avoid budget shortfalls, and utilize a rolling ave ix General Fund General Fund revenues are expected to increase for 2008/09, through increased property taxes and increases in sales taxes due to new retail development and growth in the City’s customer base. Garbage revenue, previously accounted for as an enterprise fund, is now included in the General Fund and is expected to increase as customer growth continues. Return on Investment (ROI) transfers are expected to increase due to overall customer growth and higher revenues in the City’s utility system, particularly the Electric system as it expands services within the Round Rock service area. Fee adjustments at the Recreation Center will also contribute towards the increase. Court fines are expected to increase due to increased ticket volume. Other revenues are expected to remain stable through the upcoming year. A review of the City’s development related fees is underway and should be completed by December 2008. Any fee adjustments related to this study have not been included in this budget, but will be added at mid-year once the fees are established. Any projected increase in fees will help fund several growth related positions that are currently scheduled to be hired in June 2009, if revenue benchmarks have been met. General Fund expenditures have risen in 2008/09 primarily due to increased compensation for public safety and the opening of the new Recreation Center. Non-public safety personnel were provided a 4% cost of living adjustment. Increased benefit costs for all employees also factor into the overall increase in operations. The addition of contract costs for solid waste and operations of the collection station have also increased overall expenditures. Ending fund balance is expected to be $2.7 million less than projected in 2007/08 due to funding various one-time programs and costs, including some that were originally planned to be funded by debt. Electric and Water Services Funds Growth demands continue to impact service levels within the City’s two largest utility funds. Operational costs continue to increase as the infrastructure expands. Annexation within the City’s outlying area requires expansion of City services, and creates additional demands on the City’s existing utility facilities. The City's Electric Fund continues to generate revenues sufficient for operations and maintenance and some system improvements. Growth within the southern most Electric service area continues to expand with the addition of a new $400 million data center that opened in February 2008. When fully operational, this project is expected to not only generate significant revenues to the Electric utility, but also provide over $700,000 annually as ROI to the General Fund. In 2006, the City became the electric provider for several large developments within the City of Round Rock, including a new outlet mall, as well as, a regional hospital. The revenue generated in this area provides substantial income to the Electric utility, but also contributes an estimated $300,000 in ROI to the City’s General Fund, without increasing General Fund expenditures. This area is expected to further develop in 2009 with additional retail outlets. Expenses within the Electric utility continue to increase along with the demands for services. This year, nine new positions were added to improve service delivery and reliability. New staffing is also expected to reduce contracted expenses as projects that were previously outsourced will now be completed with City staff. Increased health and retirement benefits have also impacted total expenses within the fund. Budgeted ending working capital is $2.6 million less than projected year end working capital in 2007/08 as previous excess will be used to fund capital improvements in 2008/09, and reduce potential debt issues. Growth, as well as, increased environmental mandates has also impacted the Water Services Fund, which includes the City’s water, wastewater and irrigation utilities. Revenues are expected to increase due to customer growth and demand, although revenues related to new development are expected to slow during the upcoming year. In 2008, the City began supplying water to several Municipal Utility Districts (MUD) that are outside the City. These customers pay out-of-City rates and require no other City services and are expected to contribute over $50,000 in ROI income to the General Fund in 2008/09. x Water utility expenses continue to increase due to increased operational costs, as well as, increases in long term water supply cost and costs associated with the operation of the Williamson County Raw Water Line. Contracting for additional water with the Brazos River Authority has ensured the availability of a long-term water supply for Georgetown. Expenses in the wastewater utility have increased due to Edwards Aquifer compliance issues and increasing treatment plant operational costs. The expansion of effluent for irrigation purposes, which provides large commercial customers a non-potable water supply for irrigation needs, has been completed to help mitigate the demand on the City’s water plants for treated water. The City continues to pursue options for regional wastewater service on the City’s western boundary and is taking a leadership role in developing methods to promote sanitary sewer service and eliminate the proliferation of septic, thus ensuring water quality for the Georgetown area. These actions will become critical as rapid growth continues within the area. Budgeted ending working capital is $5.6 million less than projected 2007/08 ending working capital due to the cash funding of several large water projects that would have previously been debt funded. Stormwater Drainage Fund Revenue is expected to increase due primarily to customer growth and is sufficient to fund the on-going operations of the utility in the upcoming year. Increased number of detention facilities, as well as, increasing environmental mandates will require a rate increase in 2009/10. Expenses in the fund are expected to increase as the City takes on maintenance of several large drainage facilities, including the recently constructed downtown drainage pond. Projected ending working capital is substantially less than previous year due to the cash funding of several large construction projects, including drainage improvements to Maple Street. Airport Fund The Airport Fund is financially self-supporting and funds its on-going operations, as well as provides a times coverage ratio of 1.55 times for its debt service coverage. Revenues are expected to increase due to increased fuel and terminal sales. Construction of the new airport traffic control tower was completed in July 2007, and became operational in December 2007. Staffing costs of the tower are funded federally through the Texas Department of Transportation. Yet, expenses have increased due to the cost of maintenance for the tower, which is funded by the City. Increased health and benefit costs are also contributing to the increase. Ending working capital is expected to increase slightly in 2008/09, as excess funds are reserved for future capital improvements or maintenance at the Airport. Internal Service Funds The internal service funds provide administrative services and asset management for information, facility, and fleet services to City programs and departments by charging lease and administrative fees. These fees are incorporated in each department’s budget. Information Services Fund $ 2,139,978 Add and replace network and application technology and hardware. Fees fund computer support services and annual software maintenance contracts. Facilities Maintenance Fund $ 2,136,653 Building maintenance and repairs to include HVAC, janitorial services and minor remodeling. Repairs and scheduled maintenance will be completed in 2008/09. The City now has 37 facilities that require on-going maintenance. Fleet Management Fund $ 2,899,689 Add / replace 33 vehicles and equipment. The Council continues the four- year replacement cycle for police vehicles and continues adding digital cameras as standard equipment in patrol cars which began last year. xi Proposed Debt The 2008/09 budget includes approximately $28.7 million in new bonds to be issued in May 2009 to fund utility infrastructure, as well as, facility improvements. Utility Revenue Bonds will be issued to fund electric, water and sewer system improvements and are repaid through existing utility rates. Facility improvements are funded through Certificates of Obligation (CO) which are then repaid through property taxes. The largest component of the proposed 2009 CO is to purchase and fund Phase I of related improvements to the old Albertson’s building for relocation of the Police department and Municipal Court. Purchase of this building was approved in May 2008 through a bond reimbursement resolution which requires the bonds to be issued at a later date (May 2009). The actual dollar amount of bonds to be issued may be adjusted before May 2009. Changes in the scope of projects or increases in construction costs may increase the amount of bonds to be issued. Whereas, delays in project timing, as well as, revenues from prior year being greater than anticipated may in fact lower the total amount of the bond issue. Any excess fund balance, whether due to higher than projected revenues or expenses that were less then estimated can be used to further reduce the amount of debt issued. In November 2004, voters approved a $22 million bond package that included a new library, an expanded recreation center and renovation of the City’s community center. These bonds have been issued in stages to mirror cash flow needs and to minimize the impact on property tax rates. The City’s debt per capita increased substantially due to the final issuance of the Recreation Center expansion bonds in May 2007. The City’s debt per capita continues to be lower than most comparable cities. The City‘s total tax-supported general debt is estimated to be $69 million by September 30, 2009. The utility debt coverage ratio, a standard measure of utility revenue debt capacity, or the number of times the debt service payment could be funded through net income from the utility, remains healthy at a budgeted 2.48 times, and exceeds the City’s fiscal and budgetary requirement of 1.5 times coverage and the City’s utility bond requirements of 1.35 times coverage While the budgeted number is slightly more than previous years, the additional coverage is used in funding system maintenance and various mandated improvements roughout the various utilities. th xii Conclusion The 2008/09 Annual Budget continues the tradition of fiscal responsibility to our citizens, yet recognizes the contributions of our employees through cost of living and other compensation adjustments, as well as, funding for retirement, all of which is being funded in a rapidly declining economic environment. This budget continues the prudent fiscal and budgetary policies implemented in previous years and provides services to the community through new and expanded programs. Yet, the proposed 2008/09 tax rate is slightly less than last year, and utility rates are stable. Growth is still occurring, therefore, the demands for expanded services within our community continue, providing an on-going challenge for not only 2008/09, but for the future as well. We believe we’ve made an outstanding effort to ensure the goals and objectives set forth by the City Council have been met, as well as ensuring that Georgetown remains a safe and affordable place to live and work. This budget balances the needs of the community with available funding to provide quality services to the citizens of Georgetown and continues the City Council’s commitment to preserving and enhancing Georgetown’s unique character and quality of life. Finally, we acknowledge the tremendous contributions and teamwork of all City staff in preparing the 2008/09 Annual Budget. The management team worked together to assist in achieving the goals set by City Council. Each department worked to find savings in their operating budgets, and to make suggestions for program improvements. Most notably, we want to recognize the Finance and Administration Division for their long and dedicated hours in preparing the Annual Budget. Respectfully submitted, Paul E. Brandenburg Micki Rundell, CGFO City Manager Director of Finance & Administration xiii 1 Long-Term Planning in Georgetown Section 213.002 of the Texas Local Government Code grants municipalities the authority to “adopt a comprehensive plan for the long-range development of the municipality”. Georgetown has a long and successful history of community involvement in the development of a comprehensive plan to guide growth within the community. As early as 1964, the citizens of Georgetown realized the importance of such a plan in shaping the long-term growth of the City. In fact, in 1986, voters approved a City Charter amendment requiring a comprehensive plan. This amendment committed the City to plan as a “continuous and ongoing governmental function,” with the common goal of maintaining and enhancing a high quality of life for the City’s residents. The Charter establishes that the comprehensive plan must contain the “Council's policies for growth, development and beautification of the land within the corporate limits and the extraterritorial jurisdiction of the City, or for geographic portions thereof including neighborhood, community or area-wide plans.” In 1986, the City began a community-wide process to develop a new comprehensive plan that would guide the City into the next century. The “Georgetown Century Plan” was adopted by City Council in 1988. The Century Plan focused on 17 policy statements that were defined through various “Functional Plans”. The Century Plan was amended throughout the next twenty years, and while the City’s planning activities continued, the Century Plan no longer addressed today’s challenges in managing growth and change. Since the adoption of the Century Plan, the City has tripled in population, along with a dramatic geographic enlargement of the city limits and the area of extraterritorial jurisdiction (ETJ). It no longer provided an adequate policy response or the tools and strategies needed to address the challenges the City will face in managing growth over the next two decades. GEORGETOWN “2030 PLAN” The process to update the City’s comprehensive plan began in 2006 and utilized a broad cross-section of citizens that provided input and ideas throughout the process. Meetings were held that allowed citizens and stakeholders the opportunity to voice their ideas and concerns about community growth over the next 20 years. The Georgetown 2030 Comprehensive Plan or the “2030 Plan” is the product of a careful design process that incrementally built consensus on the desired future of the City and the means to achieve that future. The 2030 Comprehensive Plan builds on the foundation established by the Century Plan and advances the state-of-the-art of planning for the City’s future by establishing a Vision Statement that reflects the shared values and aspirations of citizens, and becomes the policy touchstone and the destination for the comprehensive plan. “2030 VISION STATEMENT” In 2030, Georgetown is a growing city, recognized throughout the region and the nation as a premier community of choice by virtue of its exceptional livability; proud historic heritage; welcoming, engaging people; safe neighborhoods; variety of well-paying jobs; excellent public schools; vibrant arts and cultural offerings; and well-planned infrastructure, transportation, and public facilities. We have taken advantage of our strategic location by embracing sound, managed growth, and harnessing and guiding it to deliberately shape Georgetown as we choose it to be. In embracing sound growth and encouraging a variety of densities and architectural styles, we have promoted sustainable development patterns that are compatible with our natural resources and historic character. We have encouraged innovation in development practices, raised quality standards for new development, re-invested in downtown and historic neighborhoods, and revitalized areas in transition. We have achieved greater economic autonomy by attracting quality employment and an array of local retail and commercial services to grow our tax base, safeguard our fiscal health and retain our talented youth. All of our neighborhoods are safe and thriving, and offer quality, affordable housing to households of all ages, lifestyles and economic means. 2 We have achieved our Vision by exercising leadership and by mobilizing citizens, civic and neighborhood organizations, local businesses and institutions to work together in partnership with the City of Georgetown, its elected and appointed leaders and staff. We have crafted our Vision to articulate community values and aspirations, structured into the following four major themes: Quality of Life Sustainable Development Balanced Transportation / Efficient Mobility Effective Governance GEORGETOWN 2030 PLAN – POLICY PRINCIPALS 1.0 Quality of Life 1.1 Community Character A. The City of Georgetown is regarded throughout Central Texas and the nation as a safe, livable and beautiful “community of choice.” B. We have retained our unique identity and heritage by protecting the historic character of downtown and our older neighborhoods. C. We have raised the bar for development quality by encouraging innovation among forms of development that maintain and enhance community character and conserve land and natural resources, consistent with market demand. D. We have enhanced the community’s visual character through greater attention to roadway aesthetics, conservation of our tree canopy and green spaces, standards for appropriate signage and enhanced gateway corridors. E. We have preserved our irreplaceable natural resources, our lakes, rivers and hill country scenery. Through a variety of means - including strategic acquisition and development of park lands, trails and greenways, successful partnerships, and effective use of incentives for voluntary preservation - our open spaces are protected for future generations. F. We have expanded public recreational use and enjoyment of our parks and open spaces by expanding sports facilities and by enhancing our network of greenways and trails, which link major open spaces, recreational areas and our rivers and lakes. 1.2 People A. Georgetown residents are educated, engaged, caring, diverse and committed to the community. B. Georgetown residents - whether long-time residents or newcomers; young households or retirees - become deeply rooted in the community and are actively involved in community service through their faith-based involvement, civic organizations and a variety of volunteer activities. C. Georgetown residents are well informed and engaged with local government on key issues affecting growth and change in the community. D. Georgetown residents recognize and embrace their diversity and respond to opportunities to come together in common purpose, overcoming generational, cultural, geographic and socio-economic barriers. 3 E. Georgetown residents are tolerant, compassionate, and reach out to those in need. F. Georgetown residents are receptive to positive change and nurture future leaders. G. Georgetown residents respond to the needs of all economic levels of residents through the provision of affordable housing and adequate and accessible health and social services. 1.3 Educational and Cultural Opportunities A. Georgetown nurtures its most valuable resource—its youth—by promoting and supporting the highest level of excellence in public education and by actively engaging them in the life of the community. B. Southwestern University is a valued resource and a partner in community affairs. The City and University collaborate in initiatives to expand economic opportunities, to attract clean, knowledge-based employment, and to provide cultural enrichment to citizens and opportunities to engage the student body in the community. C. Georgetown seeks and creates partnerships to promote lifelong learning and provide affordable higher education for all, along with special venues for learning to make Georgetown an educational destination in Central Texas. D. Georgetown is a cultural destination in Central Texas, thanks to our vibrant community of artists and artisans, performing arts venues, and array of arts, heritage and cultural festivals and events. 2.0 Quality Growth / Sustainable Development 2.1 Throughout Georgetown we have... A. Attracted desired forms of balanced development, creating quality urban, suburban, and rural places that offer a choice of setting and lifestyle. B. Encouraged residential developments that are well connected to the larger community are planned and designed to compliment the heritage and natural character of Georgetown, and offer a variety of housing types and price ranges. C. Encouraged sound, compact, quality growth, including pedestrian-friendly development patterns that incorporate mixed uses and densities, conserve resources, and accommodate public transportation, alternative fuel vehicles, biking, and walking as convenient substitutes for automobile use. D. Reserved well-planned and well-located sites for future employment centers, sufficient to meet our long range need for economic diversification and suitable to attract desired “clean” businesses. E. Maintained the quality and diversity of our housing stock in all of our neighborhoods, which are framed by safe, attractive streets. 2.2 In downtown Georgetown and our older neighborhoods we have… A. Supported home-grown businesses and planned for an optimal mix of businesses, services, retail and entertainment suited to the scale and historic charm of downtown. B. Attracted or created an array of civic, arts and other cultural activities and events to expand the level of downtown activity. C. Promoted downtown and in-town housing including infill, mixed use and the creation of apartments and lofts over retail. 4 2.3 Along our major highway corridors we have… A. Promoted development compatible with safe, efficient traffic circulation through sound standards for access management, limited installation of curb cuts and parking facility connectivity. B. Selectively determined appropriate locations and applied design standards for large commercial developments and other high traffic generating uses. C. Set high design standards for all commercial development and signage. D. Encouraged mixed-use, and “village center” development types as alternatives to conventional strip center and stand-alone “pad” sites. 2.4 In our suburban fringe we have… A. Exercised influence to prevent premature and incompatible development. B. Encouraged the staged, orderly expansion of contiguous development to coincide with the expansion of roads and infrastructure. C. Encouraged conservation development and other approaches that retain rural character and promote retention of open space. D. Provided for the City’s long range growth with strategically timed annexations. E. Consolidated development patterns within the city limits, where feasible, through judicious annexation and capital investments. 3.0 Balanced Transportation / Efficient Mobility A. Georgetown has implemented improvements to the local road and traffic control system, including new thoroughfare linkages to enhance connectivity, improved and coordinated traffic signalization, and standards for access management to enhance traffic flow and safety. B. Georgetown is progressing towards a functional, well-integrated, multi-modal transportation system, which provides convenient public transportation choices within Georgetown and access to the region’s major activity centers in and around Austin. C. Georgetown has reduced its reliance on conventional fuels and automotive traffic by promoting alternative fuel vehicles; by retrofitting bike lanes and sidewalks in underserved areas to enhance bicycle and pedestrian mobility; by incorporating these facilities in new developments; and by encouraging compact mixed-use and other “walkable” development types. D. Georgetown has assisted in carefully locating employment and commercial centers, schools, and other high-traffic generators. 4.0 Effective Governance A. Our City government retains its reputation for providing a high level of responsiveness to citizens and in exercising visionary leadership in planning and investing for the future. B. We have created and enforced innovative, effective and fair regulatory codes and development standards to guide growth and improve development quality. We have streamlined the regulatory process, particularly for desired development types and locations. C. Georgetown has achieved a high level of service coordination, both internally and with County, State and other city service providers. 5 D. Georgetown has anticipated and planned for the long-range need for public facilities including police, fire, recreation and libraries. E. The City has coordinated with the Georgetown Independent School District for the appropriate siting and timing of new school construction, consistent with the City’s growth management strategy. F. Georgetown has maintained and improved its fiscal strength by:  Actively promoting sustainable economic development through recruitment of desired industries and employers.  Guiding a compact growth pattern, which reduces public facility costs.  Carefully prioritizing spending consistent with adopted capital improvement plans and budgets.  Judicious use of incentives and subsidies for desired development. G. Georgetown has taken a leadership role in the use of advanced technology to incorporate sustainable “green infrastructure,” including initiatives to:  Conserve water resources through reduced consumption.  Effectively re-use treated wastewater for irrigation.  Encourage renewable sources of energy.  Promote maximum recycling.  Promote the use of alternative fuels.  Provide high speed internet access for all citizens. H. The City has followed through on its commitment to plan for the future, by adopting a comprehensive plan; by consistently applying it as a criterion in all decision-making; by implementing actions called for in the plan; and by periodic monitoring and updating of the plan. Link to Annual Budget The City staff and elected and appointed City Officials rely on the comprehensive plan to provide direction and guidance for recommending and authorizing the expenditure of public funds. The City Council used the guiding principals included in the 2030 Plan to develop wide-scope Priority Areas to further the progression in implementing the Vision Statement of the 2030 Plan. Goals that pertain to each Priority Area are determined, carrying out the principals included in the Plan. Goals will include various strategies to be implemented in the Annual Budget. Priority Areas and related goals may require multiple years for implementation through strategies that vary from year to year. The Annual Budget specifically defines the methods or processes by which the City Manager and City staff will go about achieving the desired results planned for each Priority Area. Goals, Strategies and Objectives Goals represent specific outcomes that will promote or enhance implementation of a Priority Area and the Vision Statement of the 2030 Plan. Strategies are the specific actions needed to accomplish goals. Both goals and strategies are identified through strategic planning sessions with the senior management team and key division staff guided by the Vision Statement and policy principals of the 2030 Plan and City Council direction. The Annual Budget includes a detailed look at each operational area, or department, within the City's divisions. Each division/department within the City has developed it own unique set of Major Department Goals which enhance its purpose and connection to the 2030 Plan. Annually, each department reviews and updates these goals and determines its Major Department Goals for the upcoming year. Major Department Strategies are specific plans to achieve Major Department Goals, which in turn reflect both the specific purpose of the particular department and objectives for furthering the implementation of the 2030 Plan. Strategies may require multiple years to be achieved. Five-Year Plans The City uses a five-year planning horizon to prepare the capital projects program and financial forecasts. The five-year capital projects program and the anticipated funding sources are incorporated into and adopted with the Annual Budget. The capital planning process is discussed in more detail with the Capital Projects section. Five-year financial forecasts are prepared to guide policy and priority decisions of staff and Council. The financial forecasts meet fiscal and budgetary policies (see Reference Section) and are based on historical trends, programs, and projects outlined during the other planning processes, and reasonable economic and growth projections. The revenue forecasts from these models are included in the Financial Summary section. The following table provides an overview of the 2008/09 Priority Areas and their related connection to the 2030 Plan Policy Principals. 6 PRIORITY AREA 2030 PLAN POLICY PRINCIPALS PRIORITY AREAS A2.1Continue revitalization and economic development B3 . 0Alleviate traffic congestion C2 . 2Continue implementation of Downtown Master Plan D4 . 0Improve quality of services while kee ping property taxes low E 4.0 A Improve emergenc y response levels F1 . 1 E xpand and coordinate Parks & Recreation system G 2.0 Continue efforts for community long-range planning H1.2 Encourage and support Affordable Housing programs I 4.0 G Expand rec ycling opportunities and environmental program initiatives J 4.0 Ensure adequate staffing & competitive compensation for all employees K 4.0 D Continue implementation of City's Facility Plan L 4.0 Increase operational efficiency and financial integrity 7 2008/09 Strategies Linked to the 2030 Plan In March, the City Council provided direction to staff for the upcoming fiscal year, by numerically ranking a proposed list of new strategies and programs to implement the previously identified priority areas. The proposed list was a culmination of previous year strategies that were on-going, as well as, new programs that were recommended by staff or by input from advisory boards. The list included an estimated cost, assigned division and department, as well as, funding requirement (one-time or on-going). Each Council member was asked to rank the individual programs between 1 (Very High Priority) and 4 (Low Priority) depending on their own preferences. The results were summarized and are included within this section of the budget document. The City Manager then matched available funds to the highest priority projects. Below is a summary of strategies included in the 2008/09 Annual Budget aligned with each individual Policy Principal from the Georgetown 2030 Plan along with Council ranking that required funding to be implemented. Strategies that required staff time or existing resources are included in the summary charts and within the individual department pages of this document. Strategies and Programs phased/continued from 2007/08 to 2008/09  Inventory Stormwater Drainage system for development and implementation of a Stormwater Master Plan as required to meet federal regulations Policy Principal 4.0 D - MANDATED  $100,000 to fund the Stormwater Drainage Master Plan  $75,000 is included to complete Transit Oriented Development Drainage Plan  Continue funding to increase public safety compensation to 95% of Round Rock Policy Principal 4.0 G - RANKING 1.25  $732,240 is added to increased compensation for both Fire and Police  Implement the Master Plan for Williams Drive Gateway Redevelopment Policy Principal 2.3 B - RANKING 1.38  $1.1M is planned in 2009/10 to purchase right of way  Renegotiate or investigate potential new provider for power contracts Policy Principal 4.0 G - RANKING 1.50  On-going efforts are underway in GUS Administration and Electric Services  Expand Water service territory to coincide with the provision of other City services where feasible Policy Principal 4.0 F - RANKING 1.63  On-going efforts are underway in GUS Administration and Water Services  Continue funding for Wayfinding and Gateway signage program Policy Principal 1.1 D - RANKING 1.88  $50,000 is funded in Facilities to continue program  Continue support of Main Street Facade and Sign grant program Policy Principal 1.1 B - RANKING 2.13  An additional $28,300 is funded as 1-time expense in the General Fund to expand this program  Increase customer education through aggressive advertisement and promotion of the City’s recycling and composting programs and opportunities Policy Principal 4.0 G - RANKING 2.13  $13,750 is added to expanded programs in Environmental Services  Develop and implement service agreement with Jonah SUD and CTSUD to read and bill water meters of mutual customers Policy Principal 1.1 F - RANKING 2.38  On- going efforts by Water Services and Finance Administration 8 New Strategies and Programs for 2008/09  Develop industrial pretreatment program to control and monitor industrial pollutants in the sewer system Policy Principal 4.0 G - MANDATED  $180,000 is included in Wastewater Services  Develop a strategy for the acquisition of traffic lights Policy Principal 3.0 A - RANKING 1.13  $150,000 is funded for signal acquisition in Streets Department  Update of the Overall Transportation Plan Policy Principal 3.0 - RANKING 1.25 Develop a comprehensive bicycle route and sidewalk network Policy Principal 3.0 C - RANKING 2.0 Study design for residential streets that are narrower by design to decrease driver speed and allow for parking, sidewalks, bicyclists and pedestrian travel Policy Principal 3.0 A - RANKING 2.0  A total of $180,000 is included in the General Fund as a 1-time project to be used by Transportation and Community Development for these long-term planning projects  Identify, reserve and rezone land for long-term commercial and employment centers Policy Principal 2.1 D - RANKING 1.38  $15,000 is included in Community Development’s Planning department  Implement a traffic management program to include signals, signs and markings and other traffic calming measures Policy Principal 3.0 A - RANKING 1.5  $150,000 funded in Transportation Administration to develop signalization program for Austin Avenue and Williams Drive  Increase efforts to develop and promote the community’s arts, heritage and cultural festivals to bring more visitors to the City Policy Principal 1.3 D - RANKING 1.63  $25,000 is included in Convention Visitors Bureau funded by Hotel Occupancy Tax  Promote neighborhood cleanups in areas that require specific and concentrated efforts for cleanup and building maintenance Policy Principal 1.1 B - RANKING 2.13  An additional $10,000 is included in Code Enforcement  Utilize Downtown Retail Consultant to determine whether to target national/regional retailers to downtown and how does the City go about recruiting these chains Policy Principal 2.2 C - RANKING 2.38  $20,000 included in Main Street Department budget The following charts are all strategies and programs considered by City Council, including the ranking of each and funding status for 2008/09. 9 Strategies and Programs phased /continued from 2007/08 to 2008/09 2030 Plan COUNCIL Policy Priority Project / Strategy Funded Assigned PRIORITY Principal Area Division/Dept RANKING 4.0 D L Begin development of plan to inventory the City’s Stormwater Drainage System prior to federal regulations that will be implemented in 2010 Yes GUS/SysEng MANDATED 4.0 G E Continue development of a funding plan to increase public safety compensation to 95% of Round Rock Yes FIRE / PD / HR 1.25 2.3.B A Implement the Master Plan for Williams Drive Gateway redevelopment Yes MGT SVC/City Mgr 1.38 4.0 G L Renegotiate or investigate a potential new provider for power contracts beyond 2016 (2011 notification date) Yes GUS/Admin 1.50 4.0 F D Expand Water CCN to coincide with the provision of other City services where feasible.Yes GUS/Water Admin 1.63 4.0 D J Develop an on-going funding plan to fully implement market compensation for non-public safety personnel that matches Round Rock compensation for like positions Yes MGT SVC/HR 1.63 1.1.D K Continue funding for Wayfinding and Welcome to Georgetown signage Yes F&A/Facilities 1.88 3.0.B B Research options for implementing a Fixed Route Bus System- Yes TRANS MGT SVC/City Mgr 2.00 1.1.B C Continue support of Main Street Facade and Sign Reimbursement Grant program Yes MGT SVC/MainSt 2.13 4.0 G I Increase customer education through aggressive advertisement and promotion of the city’s recycling and composting programs and opportunities Yes GUS/EnvironSvc 2.13 4.0 C D Develop and implement service agreement/contract with Jonah SUD and CTSUD to read and bill water meters of mutual customers Yes GUS/Water Svc F&A/Admin 2.38 1.1.F F Continue to expand and revitalize existing neighborhood parks Yes COMM SVC/Admin 2.50 10 Proposed New Strategies and Programs for 2008/09 2030 Plan COUNCIL Policy Priority Project / Strategy Funded Assisgned PRIORITY Pricipal Area Division/Dept RANKING 4.0 G I Develop industrial pretreatment program to control and monitor industrial pollutants in the sewer system Yes GUS/WaterSvc MANADATED 3.0 A B Develop a strategy with Streets and System Engineering for the acquisition of traffic signal lights and implement a plan to insure resource allocation in the fiber system to accomplish this plan. Yes GUS/TRANS 1.13 3BUpdate the Overall Transportation Plan Yes COMM DEV/Planning 1.25 2.1.D G Identify, reserve, and rezone land for long-term commercial and employment Yes COMM DEV/Planning 1.38 4.0 G I Participate in a solar demonstration pilot program Yes GUS/Admin 1.43 3.0 A B Implement a traffic management program to include signals, signs and markings, speed limits, conduct speed surveys, monitor and implement traffic calming measures Yes TRANS/Streets 1.50 1.3.D A Increase efforts to develop and promote the communities array of arts, heritage and cultural festivals and events to bring more people to visit the community Yes COMM SVC/CVB 1.63 4.0 G I Utilize the Regional Stormwater Master Plan (RSMP) by building detention ponds and upgrading waterways as needed within the City Yes TRANS/Drainage 1.63 1.1 D G Develop a Conservation and Environmental Resources Plan No COMM DEV/Planning 1.75 4.0 D E Develop the Public Safety Element to the 2030 Plan No COMM DEV/Planning 1.75 1.1 D F Implement a plan to protect the river corridors by acquiring flood plain along the banks of the rivers and develop into parks, trails and green space LT No COMM SVC/Parks 1.75 4.0 G I Develop a single stream recycling program No GUS/EnvironSvc 1.75 2.1.C G Regulating Plans for Mixed Use Land Use areas (start process, set priorities, consultant fees for one or two plans)Yes COMM DEV/Planning 1.88 3.0 C B Develop a comprehensive bicycle route and sidewalk network plan that results in an interconnected system of bicycle paths and sidewalks throughout the community that link all residential areas to schools, shopping, parks and recreational areas Yes COMM DEV/Planning 2.00 3.0 A B Study a new design for residential streets that are narrower by design to decrease driver speed, and allow for parking, sidewalks, bicyclists, and pedestrian travel OTP update Yes COMM DEV/Planning 2.00 4.1.A L Install security cameras and alarms in substations and critical city facilities to guard against vandalism, theft, or sabotage Yes F&A/Facilities 2.00 1.1.B I Promote neighborhood cleanup efforts in areas that require specific and concentrated efforts for cleanups and building maintenance Yes COMM DEV/CodeEnf 2.13 2.1.D A Analyze the cost/benefit of the purchase of industrial commercial property as a publicly owned Business Park to create jobs and increase tax base by controlling the land prices, type of development, and adherence to covenants and deed restrictions. Yes F&A/Admin 2.13 4.0 B I Develop a Green Building Program No GUS/ADMIN 2.13 2.2 C Utilize Downtown Retail Consultant - one time expense to help downtown determine whether it is wanting to target national/regional chain stores to downtown and how exactly we go about recruiting these chains Yes MGMT SVC/Main Street 2.38 2.1 A G Create adequate public facilities ordinance Yes COMM DEV/Planning 2.38 4.0 A L Develop the System Control Center in to an ERCOT approved center Yes GUS/EnergySvc 2.38 1.2 C G Partially fund a "City Council Enterprise GIS Dashboard". A GIS Dashboard is a web page that contains easy to use interactive maps and real-time data from various databases. Key geographic and non-geographic information for everyday decision making is provided by the dashboard No COMM DEV/GIS 2.50 1.1.E I Develop an environmental beautification program No GUS/EnvironSvc 2.50 2008 Citizen Quality of Life Survey 2008 marks the fourth time the City has conducted the Citizen Quality of Life Survey, a bi-annual survey (previously conducted in 2006, 2004 and 2002) to gather citizen input and feedback on City services, as well as, other issues and concerns impacting the community. The success of previous programs and projects implemented over the past five years are also measured and new areas for service improvement are identified. Transportation related issues continue to be the dominating factor influencing the community, with managing growth and preserving the City’s quality of life also being a major concern. Top Issues Facing Georgetown 35% 30% Improve Traffic25% Managed Growth20%Public Transportation 15%Employment Opportunities 10%Affordable Housing 5% 0% 2008 2006 2004 2002 12 This year, questions included asking citizens if they were willing to pay more in taxes to improve roads and sidewalks and to develop a public transit system. In all cases, over 50% of the respondents were willing to increase taxes to improve these services. The same was true for expanding and renovating the City’s park system. This feedback was an important factor in determining the City Council’s decision to place a $46 million street and road bond and a $35.5 million park bond before voters in November 2008. Both of these propositions would fund multiple projects over the next 10-15 years. The survey also provides invaluable information related to on-going or projects recently undertaken, as well as, the services the City provides. It also gauges the community’s outlook for the future. Key findings included:  90.1% of respondents supported expanding energy and water efficiency standards for new and renovated housing construction.  77.3% believe the maintenance condition of local streets is good or excellent and 34.5% feel the maintenance condition has improved in the last two years, while only 10.5% believe it’s gotten worse. Quality of Life in Georgetown 60% 70% 65%  72.8% of residents feel “very safe” with 27.3% feeling “safe” in Georgetown.  54.3% feel that the Quality of Life is getting better in Georgetown. 54.3%40% 50% 33.5%20% 30% 9.3% 24.5%10% 0% 10% Getting Better About the same Worse City Neighborhood The overall quality and reliability of the City’s utility services is also measured as part of the survey. This year’s results show a slight decrease in overall service that can be attributed to higher electric fuel costs and higher sewer and garbage rates. Water is still the highest rated utility, with 87.5% rating excellent or good. The ratings were consistent for all City services. The survey also confirmed that location and good, caring people continue to be the top reasons why Georgetown is such a great place to live. For residents who have lived in Georgetown more than 5 years, managing growth was the highest priority. 3 out of 4 citizens surveyed believe managing future development will be the top issue facing Georgetown in the next five years. Value and quality of services continued to be within acceptable levels even through in most cases they were slightly lower than 2006. These results indicate that growth has impacted the City’s service abilities. Overall, citizens continue to show a high level of satisfaction with both their utility services and the value they receive for their City tax dollars. 13 Value for Utility Dollars % Excellent/Good 66.4% 73.0% 70.6% 65.3% 60% 65% 70% 75% 80% 2002 2004 2006 2008 Value for Tax Dollars % Excellent/Good 57.3% 62.0% 66.3% 68.5% 50% 55% 60% 65% 70% 2002 2004 2006 2008 Utilities Quality & Reliablity % Excellent/Good 75% 80% 85% 90% 95% 10 0 % 2002 2004 2006 2008 Electric Water Sewer Garbage 14 Budget Adoption and Management Process Budgeting is an essential element of the financial planning, control and evaluation process of municipal government. The “operating budget” is the City’s annual financial operating plan. The annual budget includes all of the operating departments of the general fund, proprietary funds, debt service funds, special revenue funds, and capital improvement funds of the City. Comprehensive Plan – The Georgetown 2030 Plan is the City’s comprehensive plan as required by the City of Georgetown Charter (Section 1.08) to preserve, promote and protect public health and general welfare, prevent overcrowding, ensure adequate transportation, availability of necessary utilities and services, and conserve and protect the City’s natural resources. The 2030 Plan is the City’s master plan. The City’s Annual Budget is designed to further the implementation of the 2030 Plan. City Charter Requirements– The Charter (Section 6.02) requires “a proposed budget prepared by the City Manager and submitted to the City Council at least thirty days prior to the end of the fiscal year. The budget shall be adopted not later than the twenty-seventh day of the last month of the fiscal year. No budget will be adopted or appropriations made unless the total estimated revenues, income and funds available shall be equal to or in excess of such budget or appropriations, except otherwise provided”. Therefore, the budget will be presented to the City Council no later than the 1st day of August to provide the City Council time to adopt the budget in the required time frame. Preparation – During January and February, all Capital Planning is preformed. Master plans and forecasts are reviewed and the five-year Capital Improvement Plan (CIP) is updated and funding requirements are identified. The City’s long-range financial models are also being updated, forecasting revenue and potential rate adjustments necessary to fund the operations and the required CIP. Review of the 2008 Bi-Annual Citizen’s Quality of Life Survey results, along with feedback from the City’s Advisory Boards, is presented to the City Council for use in determining priorities for the upcoming year. During early March, the City Manager and the Management Team hold public workshops with the City Council to update and develop the Priority Areas and related goals for the next fiscal year. The City Council’s direction for implementing these goals then provide the basis by which the City Manager prepares the City Manager’s Proposed Budget, allocating resources to best meet the goals needed to execute the Priority Areas to further the implementation of the 2030 Vision Statement. Public Participation - The budget review process includes City Council participation in the development of each segment and allows for citizen participation in the process, while allowing for sufficient time to address policy and fiscal issues by the City Council. The City Council holds “Budget Workshops” to allow the public to provide comment and feedback on the City Manager’s Proposed Budget. A copy of the City Manager’s Proposed Budget is also filed with the City Secretary and a copy is also available at the Georgetown Public Library for citizen review. Budget information is also posted to the City’s website. Budget Process for 2008/2009 Annual Budget O cto b e r 1 , 2 0 0 7 CI P Pr o c e s s B e gi n s Fin an ci a l m o d el s u p da te d Co u n c i l P r i o r i t i e s D e t e r m i n e d Ba s e B u dg e t P r oc e s s B e g i n s CI P P r e s e n tat i o n t o C o un c i l Mi d - Y e a r R e v i e w D ivis i o n W ork S e s s i on s R ev i ew a nd Up d ate F i n an cia l P o lic y C it y M a n a ge r ' s Bu d g et P rep a red C o un c il W ork S e s s i o n s Pu b lic W o r k s h o p s /He a r i n g s F in a l B u d g e t Ad o p t i on (1s t R e a d i n g ) S ep t e mb e r 9, 2 00 8 (2n d Re a d i n g ) Oct Nov Dec Jan Feb Mar April May June SeptAugJuly 15 Adoption – Once the budget appropriations are finalized, the City Council will hold a public hearing, and subsequently adopts by Ordinance the final proposed budget as amended. The budget will be effective for the fiscal year beginning October 1st. Appropriations – The point of budget control is at the department level budget for all funds. The budget is adopted by personnel, operations and capital (POC) totals within departments. Total appropriations are presented by Funds/by Divisions on page 36 and by Funds/by POC on page 38. POC detail by department is also included on each division summary page, as well as, within each department’s budget pages. The Charter (Section 6.030.) provides that any transfer of appropriation between funds must be approved by the City Council. The City Manager may transfer without City Council approval appropriations between departments within the same operational division and fund. The City Manager may also authorize transfer of salary adjustment monies between funds that are budgeted in a citywide account. Budget Amendments – The Charter (Section 6.04) provides a method for budget amendments and emergency appropriations. The City Council may authorize with a majority plus one vote, an emergency expenditure as an amendment to the original budget. This may be done in cases of grave public necessity or to meet an unusual and unforeseen condition that was not known at the time the budget was adopted. In practice, this has been interpreted to include revenue-related expenses within the enterprise funds and timing differences on capital improvement projects. The City will amend the budget at year end, if needed, for revenue based expenditures that exceeded budgeted amounts due to increased revenue, as well as to recognize any grant funded expenditures for grants received after the budget was adopted or last amended. The City will also amend the budget if necessary as part of the Mid-Year Review process for any capital project timing adjustments from prior year, as well as, any other known adjustments needed and approved at that time. 2008/2009 Annual Budget Calendar of Events for Budget Adoption & Implementation Planning and Preparation January – February  Budget process schedule set.  Capital Improvement Program (CIP) internal department meetings to discuss proposed projects, including 5-year model update. Preliminary funding estimates prepared.  Management Team begins preliminary review and update of staff recommended priorities for 2008/09.  2008 Quality of Life Survey conducted.  Strategic planning process begins.  Finance meets with City’s Boards and Commissions.  Internal Service Fund (ISF) meets with divisions for 2008/09 needs. March – April  Survey results presented to Council.  Council holds 2008/09 Budget Priority Planning and Strategy ranking sessions.  ISF allocations are prepared.  Departmental narrative and program requests are distributed.  2008/09 Base Budgets and Service Level Improvements (SLI) are completed. May  Mid-year Review of 2007/08 Annual Budget presented to Council.  2008/09 CIP presentation to Council.  Base Budget and SLI changes are updated; preview 2008/09 budget concerns.  Preliminary tax rate calculation / revenue projected.  Public workshops on budget issues.  Finance prepares program summary report. June  Five-year financial forecast models updated.  City Manager’s CORE budget is balanced and workbook prepared including recommended Service Level Improvements and New Programs. Budget packages prepared in accordance with Council guidelines and Georgetown 2030 Plan.  Revenue and expenditure projections finalized. July  2008/09 City Manager’s Proposed Budget presented to Council.  Annual review and update of Fiscal and Budgetary policy.  Tax roll finalized.  Property tax rate and revenue projections finalized. Adoption August – September  Proposed budget is linked to long-term goals from comprehensive plan.  Finalize 2008/09 programs.  Finalize 2008/09 proposed tax rate.  Certified tax roll is accepted by Council.  Final recommendations and Budget Summary distributed to Council and public.  Public hearings on proposed budget and tax rate held.  Budget and tax rate ordinances presented to and adopted by Council. October 1  Implement 2008/09 Annual Budget. 16 Budget Amendments Budget amendments may be made during the year in accordance with state law and City Charter. See detailed requirements in the budget and Financial Policies included in the Reference Section. Typically, budget amendments are proposed to Council as part of the Mid Year Annual Budget Review in May of each year and at fiscal year end. 17 HOME RULE CITY CITY COUNCIL CITY ATTORNEY CITY ATTORNEY CITY SECRETARY CITY MANAGER MUNICIPAL COURT JUDGE Economic Development Main Street Human Resources TRANSPORTATION ASSISTANT CITY MANAGER - GUS FINANCE AND ADMINISTRATION ASSISTANT CITY MANAGER POLICE FIRE COMMUNITY DEVELOPMENT Stormwater Drainage Streets Administration Accounting Utility Billing Municipal Court Support Services Purchasing Administration COMMUNITY SERVICES Parks Recreation Library Convention and Visitors Bureau Administration Airport Information Technology Field Operations Support Services Administrative Services Operations Administration Planning & Development Services Inspection Services Housing Administration Energy Services Water Services Systems Engineering Administration Vehicle Service Center Animal Services BOARDS AND COMMISSIONS Mayor (elected at large) Seven Councilmembers (elected by district) CITIZENS OF GEORGETOWN 17 HOME RULE CITY CITIZENS OF GEORGETOWN CITY COUNCIL CITY SECRETARY CITY MANAGER Mayor (elected at large) Seven Councilmembers (elected by district) BOARDS AND COMMISSIONS MUNICIPAL COURT JUDGE Economic Development Main Street Human Resources ASSISTANT CITY MANAGER - GUS TRANSPORTATION Stormwater Drainage Energy Services Streets Water Services Administration Systems Engineering FINANCE AND ADMINISTRATION Administration ASSISTANT CITY MANAGER Accounting COMMUNITY SERVICES Utility Billing Parks Municipal Court Recreation Support Services Library Vehicle Service Center Convention and Visitors Bureau Purchasing Administration Administration Airport POLICE Information Technology FIRE Field Operations Operations Support Services Administration Animal Services Administrative Services COMMUNITY DEVELOPMENT Planning & Development Services Inspection Services Housing Administration 18 Community Profile Overview Founded July 4, 1848, Georgetown was originally the agricultural trade center for the county and surrounding area. After the Civil War, reconstruction brought prosperity to Georgetown through four main industries -- cattle, cotton, the university and the railroad. Georgetown has enjoyed consistent growth and development through the years. In recent years the City has become more industrialized and commercially oriented. Along with the commercial growth, Georgetown has successfully promoted tourism, which has brought a significant economic benefit to the community. The City of Georgetown’s estimated 2008 population was 47,353 within the city limits, with an estimated population of 62,100 including the extraterritorial jurisdiction. Georgetown is a Home Rule Charter City and operates under the Council-Manager form of government. A mayor and seven council members are elected from single-member districts, with elections being held the first Saturday in May. Historic Georgetown Since the 1982 Georgetown has been synonymous with Main Street, a downtown economic development effort administered through the Texas Historical Commission and the National Main Street Center. Over $120 million has been reinvested in revitalization efforts in the downtown area. Private and public entities joined in partnership to restore and renovate downtown commercial structures, public buildings as well as building new structures to help anchor the commercial district. This unprecedented success has made our community the shining star of the Texas Main Street program and an example for small cities nationwide to follow. It has been the building block for Georgetown’s recent economic development gains. The restoration of Georgetown’s "living room", one of a few remaining Victorian era downtown squares in the country, has revitalized the heart of Georgetown into a thriving district with shops and restaurants. In 1997, Georgetown gained recognition for the successful effort of its citizens to preserve the historic character and char of the city when it became the first city in Texas to win the Great American Main Street Award. The Georgetown Square is considered by many to be the finest example in the state of a Victorian town square. Our historic square is certainly the magnet that draws people to Georgetown. However, once they're here, people soon realize there's much more to our community. It's a town with a strong identity and people who care about it... people that make sure we never stop trying to enhance both Georgetown's appeal and the lives of those who choose to live here. Cultural Activities Cultural activity thrives in Georgetown. Southwestern University's contribution of quality theater, dance, fine arts and lecture events add a valuable dimension to our cultural life. The Art deco-styled Palace Theatre, located on the downtown square, was renovated and rejuvenated by townspeople. The Palace Theatre showcases events such as plays and musicians, as well as, other types of performing arts. Georgetown always has a full calendar of local events including the “up the Chisholm Trail Cattle Drive” down Main Street each September. Other major annual events include the Fourth of July Celebration, Christmas Stroll, Red Poppy Festival each Spring and the Wine and Food Festival held each August. 19 Recreation Georgetown offers a wealth of recreation opportunities through its award winning Parks and Recreation program. In Georgetown there are currently thirty city parks, comprising 463 total developed acres. The parks range from a half-acre neighborhood park to the one hundred-acre city wide San Gabriel Park. There are almost 9 miles of Hike/Bike Trails, including a 1.7 granite trail that loops around San Gabriel Park, three cemeteries, athletic complex, five swimming pools, downtown pocket parks and tennis center, as well as, a wide range of facilities including: softball and baseball fields, soccer fields, playground equipment, individual and group picnic shelters, basketball and tennis courts and disc golf. The Tennis Center facility includes a full size swimming pool and baby pool, 11 tennis courts and activity center on 7 wooded acres. San Gabriel Park, considered to be the “jewel” of Georgetown also has a sunken garden, gazebo, football stadium, rodeo area, creative playscape for children and is home to the newly renovated Community Center. Phase II completion of the City’s Recreation Center’s major expansion is scheduled for January 2009. Phase III of the project, which is the renovation of the existing portion of the building, is scheduled to begin in January, with completion and opening scheduled for April 2009. The addition will include an indoor pool, an outdoor splash pool, a new gymnasium, an indoor track, new rooms for exercise classes and activities and an expanded weight room. Areas in the existing Recreation Center will be renovated for teen and senior activities. The 47,000 square-foot expansion will provide a total of more than 65,000 square feet of interior space once the project is completed. The City of Georgetown Parks and Recreation Division was presented with an “Outstanding Park Award” from the National Softball Association (NSA) for McMaster Athletic Complex. The complex has won the National Softball Association’s award every year since its opening in 2001, and is recognized by the Association as one of the most outstanding softball complexes in the state. Georgetown’s hike and bike trail was designated a National Recreation Trail by the U.S. Department of the Interior, the only trail in Texas to be so recognized in 2006. The new $9.8 million Georgetown Public Library opened in January 2007. The new library is 55,000 square feet and allows for the expansion of book collections and other materials. It also includes a larger reference area and more computer work stations, as well as, expanded children’s areas with a performance stage and seating area. Two large community rooms are also located on the second floor. The Library also houses the “Red Poppy Coffee Company”, a locally owned coffee house. Education Georgetown Independent School District (GISD) serves a diverse population of Williamson County students from pre-K to 12th grade. The district serves elementary students in three pre-K-2 campuses, three 3-5 campuses, and four K-5 campuses. Secondary students attend one of three middle schools and a ninth-grade campus which opened in August 2008, before attending the district's high school. An alternative high school campus serves students who participate in a self-paced general curricular program. There are also three private schools and two parochial schools in the area. Georgetown is also the home of Southwestern University, an independent, selective four-year undergraduate college, offering a traditional liberal arts and sciences curriculum. Southwestern was the first institution of higher learning in Texas, chartered by the Republic of Texas in 1840 and has received national recognition for its academic program and cost-effectiveness. The latest U.S. News & World Report Best Colleges edition ranked Southwestern as the top-rated national liberal arts university in Texas. Georgetown – Then and Now This is a comparison of Georgetown today and as it was a decade ago.  Tax rate, including debt portion, is 1.7% higher – among lowest in Central Texas area  Population has grown by 90%  Tax base has grown by 248% 20 1998/99 2008/09 Population 26,400 50,383 Customer Growth 8.0%4.56% Building Permits Issued 716 792 Unemployment Rate 2.37%4.10% Appraised Values $1,199,831,232 $4,176,836,943 Average Home Value $100,000 $193,263 Total Budget $73,271,213 $214,700,611 Total Tax Rate $0.35000 $0.35622 Maintenance on Streets $985,936 $4,647,160 Debt Service Tax Rate $0.14000 $0.15500