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HomeMy WebLinkAboutAgenda_GGAF_02.26.2014Notice of Meeting for the General Government and Finance Advisory Board of the City of Georgetown February 26, 2014 at 2:00 PM at City Hall Main Floor Conference Room, located at 113 East 8th Street, Georgetown, TX The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA). If you require assistance in participating at a public meeting due to a disability, as defined under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon request. Please contact the City at least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 113 East 8th Street for additional information; TTY users route through Relay Texas at 711. Legislative Regular Agenda A Review minutes from February 7, 2014 GGAF meeting - Danella Elliott, Executive Assistant B Consideration and possible action to approve the renewal of printer and Multi Function Printer (MFP) maintenance contracts through TLC Office Systems for $66,960.96- Submitted by: James Davis, IT Operations Manager C Discussion and possible recommendation to authorize payment of fees to Tyler Technologies for online web account management and payment processing in the amount of $84,500 - Submitted by: Leticia Zavala, Customer Care Manager and Micki Rundell, Chief Financial Officer D Discussion and possible recommendation to renew a contract for utility bill printing and mailing services with Dataprose,and approve funding at an annual cost of $220,000 - Submitted by: Leticia Zavala, Customer Care Manager and Micki Rundell, Chief Financial Officer E Review and discussion of the Comprehensive Annual Financial Report and results of the audit for Fiscal Year Ended, September 30, 2013 - Submitted by: Micki Rundell, Chief Financial Officer Susan Morgan, CPA, Finance Director Lisa Haines, Controller F Discussion and possible action to set meeting times and location for the monthly meetings of the General Government and Finance Advisory Board - Submitted by: Steve Fought, GGAF Chair CERTIFICATE OF POSTING I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all times, on the ______ day of __________________, 2014, at __________, and remained so posted for at least 72 continuous hours preceding the scheduled time of said meeting. ____________________________________ Jessica Brettle, City Secretary City of Georgetown, Texas SUBJECT: Review minutes from February 7, 2014 GGAF meeting - Danella Elliott, Executive Assistant ITEM SUMMARY: FINANCIAL IMPACT: SUBMITTED BY: Danella Elliott ATTACHMENTS: Description Type 2.7.14 Minutes Cover Memo Minutes of the Meeting of the GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF) City of Georgetown, Texas February 7, 2014 The General Government and Finance Advisory Board met at 10:00 a.m. on Friday, February 7, 2014 in the Georgetown Municipal Complex Williamson Room, located at 300-1 Industrial Avenue, Georgetown, Texas. MEMBERS PRESENT: Steve Fought, Chair, Tommy Gonzalez, Joe Pondrom, Keith Brainard MEMBERS ABSENT: None STAFF PRESENT: Paul Brandenburg, Micki Rundell, Laurie Brewer, Mark Thomas, Paul Pausewang, Stan Hohman A copy of these minutes, containing detailed information on the items listed below will be available in the Finance and Administration Office, located at 113 East 8th Street, Georgetown, TX and can be found online at http://agendas.georgetown.org/ Executive Session In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon’s Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session that follows. Regular Session – Called to order at 10:00 a.m. The GGAF Board may, at any time, recess the Regular Session to convene an Executive Session at the request of the Chair of the GGAF Committee for any purpose authorized by the Open Meetings Act, Texas Government Code Chapter 551.) Public Wishing to Address Council On a subject that is posted on this agenda: Please fill out a speaker registration form. Clearly print your name and the letter of the item on which you wish to speak and present it to the Chair or Board Liaison, preferably prior to the start of the meeting. You will be called forward to speak when the Board considers that item. On a subject not posted on the agenda: Persons may add an item to a future Board agenda by contacting the Liaison prior to the creation of the agenda for the following meeting, with the subject matter of the topic they would like to address and their name. The Board Liaison can be reached at 512-930-3676 or by email at danella.elliott@georgetown.org Statutory Consent Agenda The Statutory Consent Agenda includes non-controversial and routine items that Board may act on with one single vote. A board member may pull any item from the Consent Agenda in order that the Board discuss and act upon it individually as part of the Regular Agenda. Legislative Regular Agenda A. Review minutes from the December 2, 2013 GGAF Meeting - Danella Elliott, Executive Assistant The minutes were unanimously approved with this correction: Keith Brainard should have been listed as “present”. B. Discussion and possible action regarding the creation of a Tax Increment Reinvestment Zone along Westinghouse Road - Micki Rundell, Chief Financial Officer and Mark Thomas, Economic Development Director Micki and Mark explained a little about the proposed creation of the TIRZ along Westinghouse Road, and gave a presentation outlining the proposal. Staff is recommending that a Tax Increment Reinvestment Zone be considered along Westinghouse road so that needed infrastructure including water, wastewater, electric and roads can be upgraded or extended to that area. The area on either side of Westinghouse road from I-35 to 1460 is a prime development area but lacks key infrastructure so that growth can occur. The TIRZ would accelerate development by removing barriers, including infrastructure costs. The property to be included in the proposed TIRZ currently is not developed. As infrastructure is completed new development will occur including destination retail, hotels, commercial, office, employment center, single family residential and some multi family projects. The new property taxes generated from the new projects will be re-invested into the zone to pay for the infrastructure. They noted that if Williamson County participates at 50%, it will create additional revenue of $1.6M by 2020 (an additional $6.2M cumulative) and more easily fund road projects such as: · Westinghouse Road (City will accept/repair/maintain), · Rabbit Hill Road Extension north (allow alternate N-S route) and · Blue Springs Extension (benefits) If the Zone is created: · the estimated increase in valuation within the zone could be as high as $700M by 2020 · City Revenues o 100% property tax = $3M by 2020 $14M cumulative revenue o Potential annual sales tax revenue = $75K conservatively projected by 2020 · Opportunities for job creation/expansion o Combination retail/commercial/residential If approved by Council, all elements should be finalized in May. The County will be considering this in April as well. Mark and Micki answered questions. Keith asked them to look at a variation of 25 years vs. 20 years. Micki noted that there is a $46M project list now (public improvements/road, etc). The committee suggested that it would be a good idea for Council to add a $50M cap. Unanimously approved to proceed to City Council with the recommendation of adding a $50M cap. C. Overview of the City’s current outstanding and proposed debt obligations – Micki Rundell, Chief Financial Officer Micki explained that each year, in preparation for the annual bond issuance process, staff prepares an overview of the City’s current outstanding debt obligations, as well as, a preview of the upcoming bond issue that the Council will consider in April 2014. Micki gave an overview presentation, including Revenue Bonds related to the City’s utilities, as well as, both self-supporting and taxable general debt obligations. Micki noted that we are not AAA rated because we own our own electric utility. We are the only electric utility in the state with that high of a rating. Keith Brainard said that he could not let this pass without saying “this is a striking chart”, referring to the Historical CO chart. Joe Pondrom noted that it was not unusual for a growth city and said that you cannot have growth without debt. Tommy Gonzalez noted that the debt was “voter approved”. Keith asked that we show population comparisons as debts have increased and to look at the miles of road/sidewalks for the past 10 years. It would be helpful to have an “overlay” showing key periods, i.e. opening of the Library, Rec Center, etc. to accompany the current graph. Micki will prepare this information for the Council presentation. The Committee thanked Micki for the informative presentation. Note: Mr. Brainard left the meeting after the debt presentation. D. Consideration and possible action for the approval to purchase vehicles and equipment in the amount of $338,677.67 – Stan Hohman, Service Center Supervisor and Micki Rundell, Chief Financial Officer Paul Pausewang went over the list of vehicle and equipment to be purchased: 1. TORO Sand Pro through Buyboard in the amount of $24,660; budgeted amount is $20,000 for the Parks Department. This is replacing 736-26 in the Fleet inventory. This unit will be sold at on-line auction this spring estimated amount $1,500. The proceeds from the sale being recording in the Fleet ISF to offset future purchases. 2. Jacobsen LF570 fairway reel mower through Buyboard in the amount of $45,257; budgeted amount is $42,000 for the Parks Department. This is replacing 736-42 in the Fleet inventory. This unit will be sold at on-line auction this spring estimated amount $2,500. The proceeds from the sale being recording in the Fleet ISF to offset future purchases. 3. Two 628 Jacobsen TurfCat 60” flail mower through Buyboard in the total amount of $37,609 (each cost $18,804) for the Parks Department. These units are replacing 736-46 in the Fleet inventory. This unit will be sold at on-line auction this spring estimated amount $2,500. The proceeds from the sale being recording in the Fleet ISF to offset future purchases. 4. Ford F-750 6 yard dump truck through Buyboard in the amount of $72,869; budgeted amount is $83,500 for the Stormwater Department. This is a new addition to the Fleet inventory and is funded from bond funded equipment account. 5. Ford F-750 6 yard dump truck through Buyboard in the amount of $72,869; budgeted amount is $85,000 for the Street Department. This is a new addition to the Fleet inventory and is funded from construction equipment account. 6. Small SUV through Formerly Bid Process in the amount of $19,720; budgeted amount is $25,000 for the Facilities Department. This is replacing 435-09 in the Fleet inventory. This unit will be held back for use in the IT Department. 7. ½ ton extended cab four wheel drive pickup through Formerly Bid Process in the amount of $23,562; budgeted amount is $26,000 for Electric Department. This is replacing 106-02 in the Fleet inventory. This unit will be held back to replace 106-36 which will be sold at on-line auction this spring estimated amount $1,500. The proceeds from sale being recording in the Fleet ISF to offset future purchases. 8. ½ ton extended cab pickup through Formerly Bid Process in the amount of $21,232; budgeted amount is $28,932 for Conservation Department. This is new addition to the Fleet inventory and is funded from Fleet ISF. 9. ½ ton extended cab pickup through Formerly Bid Process in the amount of $20,894; budgeted amount is $25,000 for Engineering EAM Department. This is new addition to the Fleet inventory and is funded from Fleet ISF. Out of the 10 vehicles & equipment requesting approval to purchase 6 of this are replacements and 4 new additions. These vehicles were approved and budgeted for the 2013/14 in the Fleet ISF. Line items as follows: · Items 1,2,3,6,7,8 & 9 are budgeted in account number 520-5-0351-52-700 Fleet ISF. · Item 4 is budgeted in account number 520-5-0351-52-705 Bond Funded Equipment. · Item 5 is budgeted in account number 520-5-0351-52-701 Bond Funded Construction Equipment. Tommy asked if they could provide a vehicle master list of all of the vehicles we have. Paul will get this list together and present it to the GGAF Committee and Council. Unanimously approved. E. Adjourn Adjournment The meeting was adjourned at 11:15 a.m. _____________________________________ Board Chair City of Georgetown, Texas SUBJECT: Consideration and possible action to approve the renewal of printer and Multi Function Printer (MFP) maintenance contracts through TLC Office Systems for $66,960.96- Submitted by: James Davis, IT Operations Manager ITEM SUMMARY: Staff requests renewal of merged maintenance contracts for network printers and Multi Function Printer devices for a period of one year. Originally printer and MFP maintenance contracts were separated between IT and Facilities. IT is now handling both maintenance contracts and merging them into a single contract. This reduces administrative resources required to manage and maintain two separate contracts. TLC Office Systems is a Texas Department of Information Resources (DIR) vendor. FINANCIAL IMPACT FINANCIAL IMPACT: This renewal was budgeted as part of the FY 2014 budget process. Expenses will be recorded in account 570-5-0641-51-341. SUBMITTED BY: James Davis, IT Operations Manager ATTACHMENTS: Description Type Printer Maintenance Quote Cover Memo City of Georgetown, Texas SUBJECT: Discussion and possible recommendation to authorize payment of fees to Tyler Technologies for online web account management and payment processing in the amount of $84,500 - Submitted by: Leticia Zavala, Customer Care Manager and Micki Rundell, Chief Financial Officer ITEM SUMMARY: Insite is the City's online account management and payment processing application that allows customers to manage their utility and municipal court accounts via our website. Real time account data provides customers with instant access to accurate billing and account information that is automatically integrated with our existing Incode Customer Information System (CIS) software. Customers have the ability to access and pay their bill online 24 hours a day, 365 days a year, giving them the ability to manage their account on their own schedule. Benefits to the City include increased collection rates, improved productivity, and increased efficiency through integrated automation with our existing software. Customer Care processes approximately 26,800 total payments per month and web payments account for 15% of the total processed. We received approximately 4,000 payments per month through the website in 2013, up from about 3,700 per month the prior year. With the inclusion of the Chisholm Trail Special Utility District (CTSUD) customers, the number will increase by 1,000 per month based on their payment history. A basis of 5,000 payments per month will be used for the calculation. The above cost includes web publishing fees, customer inquiry fees, and transaction fees, broken down in the schedule below: Web Publishing / Municipal Court $ 900 Customer Inquiry / Municipal Court $ 900 Web Publishing / Customer Care $ 600 Customer Inquiry / Customer Care $ 9,600 Transaction Fees / Customer Care $ 60,000 (4,000/month X 12 X $1.25) Transaction Fees / CTSUD $ 12,500 (1,000/month X 10 X $1.25) $ 84,500 The Web Publishing fees and the Customer Inquiry fees are a fixed annual cost. The transaction fees are $1.25 each and based on the number of payments taken through the website. FINANCIAL IMPACT: The total cost for this service is $84,500. The portion allocated to Customer Care is $72,000 and equates to 0.5% of the total online utility revenue collected through the website in 2013. It is funded in the 2013- 2014 Customer Care budget line item #540-5-0338-51-340 in the Joint Services Fund. The CTSUD portion of $12,500 will be reimbursed by CTSUD. SUBMITTED BY: Leticia Zavala, Customer Care Manager City of Georgetown, Texas SUBJECT: Discussion and possible recommendation to renew a contract for utility bill printing and mailing services with Dataprose,and approve funding at an annual cost of $220,000 - Submitted by: Leticia Zavala, Customer Care Manager and Micki Rundell, Chief Financial Officer ITEM SUMMARY: The City has traditionally used an inter-local agreement with the City of Plano to benefit from volume pricing and their Request for Proposal (RFP) process to award the utility bill printing and mailing service contract. The City has had much success with the City of Plano's vendor, Dataprose, and would like to continue utilizing their services. The City of Plano was able to secure a lower contract price due to their monthly volume which exceeds 100,000 bills per month. Plano's new contract is effective February 2014 and the City is eligible for the new rates. The rates secured by Plano are less than the rates the City could secure on their own without incurring the cost of preparing and releasing a RFP. Individually, the City of Georgetown processes and mails 28,000 – 30,000 bills (including late notices) per month. With the inclusion of the Chisholm Trail Special Utility District (CTSUD) customers, the number will increase to between 36,000 – 38,000 bills (including late notices) per month. Our goal is to continue to provide and market an email option for customer bill presentment. This option was released in June 2012 and has grown to include 3,100 participants or 11% of our customer base. This option allows us to mitigate the rising cost of postage by eliminating the postage for that segment of the customer base. FINANCIAL IMPACT: With the new City of Plano pricing, we will pay around $0.50 per bill which is a decrease from last year's cost of $0.53 per bill. The printing and insertion costs will average $0.10 and the postage costs will average $0.40. Eighty percent (80%) of the estimated annual contract cost of $220,000 is related to postage expense and equates to $176,000. The total cost for bill printing and insertion is $44,000. The total appropriation requested for this year is $220,000 and is calculated as follows: Customer Care: (30,000 (bills/month) x .50 (rate) x 12 (months)) = $180,000 CTSUD: ( 8,000 (bills/month) x .50 (rate) x 10 (months)) = $ 40,000 This Customer Care expense of $180,000 is funded in the 2013-2014 Customer Care budget, under Contracts and Leases GL#540-5-0321-51-310 in the Joint Services Fund. The CTSUD portion of $40,000 will be reimbursed by CTSUD. SUBMITTED BY: Leticia Zavala, Customer Care Manager City of Georgetown, Texas SUBJECT: Review and discussion of the Comprehensive Annual Financial Report and results of the audit for Fiscal Year Ended, September 30, 2013 - Submitted by: Micki Rundell, Chief Financial Officer Susan Morgan, CPA, Finance Director Lisa Haines, Controller ITEM SUMMARY: The City's auditors and City staff will present the City's Comprehensive Annual Financial Report (CAFR) for the Fiscal Year Ended September 30, 2013. Staff will present an overview of the results and CAFR document. The City's external auditor, Jerry McMillon, CPA, with the firm of CliftonlLarsonAllen, LLP, will also discuss the results of the auditors' independent audit of the CAFR, compliance with auditing standards, testing over internal controls and fraud risk assessment and conduct required communication under auditing standards with the committee. The committee will be asked to take action to recommend that Council accept the September 30, 2013 CAFR at the March 11, 2014 regular council meeting. A hard copy of the final CAFR will be provided at the meeting. FINANCIAL IMPACT: SUBMITTED BY: Susan Morgan, CPA, Finance Director ATTACHMENTS: Description Type CAFR Part 1 Cover Memo CAFR Part 2 Notes Cover Memo CAFR Part 3 Cover Memo Page 10 Transmittal Letter This unique character and small town charm was a key factor for Del Webb Corporation when it built its first Texas development in Georgetown with the 1995 opening of Sun City, Texas. Today, over 6,673 homes with over 12,600 retirees make Sun City and Georgetown their home. Georgetown is also home to Southwestern University, which continues to receive national recognition. The University has been named to Kiplinger’s list of the 100 best values in liberal arts colleges and has been noted as one of ‘America’s Best Value Colleges’ by the Princeton Review. With more than 1,300 students and 450 employees, the University provides substantial economic and cultural contributions to Georgetown. GEORGETOWN'S ECONOMIC OUTLOOK AND FINANCIAL CONDITIONS Economic Outlook While the Central Texas economy did feel the impact of the recession and credit crisis, it continues to perform better than the national economy with strong growth in building, employment and sales tax receipts. The Central Texas unemployment rate was 4.5% for December 2013, compared to 6.7% nationally. According to the Texas Comptroller of Public Accounts, Texas had fully recovered all of its lost jobs by September 2011 and has continued to see strong growth in new jobs, as well as, retail and business sales. The City’s commercial and job base continued to grow with the expansion of several small commercial and retail centers, new healthcare facilities, added retail and restaurants on the downtown square and an agreement that brings a major hotel/conference center to the City. Residential growth has continued to be healthy with 690 new residential permits in 2013, with a value of $294.9 million, compared to 664 permits valued at $171 million in 2012. Housing values have increased, with the average home in Georgetown valued at $190,802 on January 1, 2013, as compared to $185,915 on January 1, 2012. Sales tax revenues increased 13% over the prior year, demonstrating solid growth in the local economy for the fourth consecutive year. The first three months of the 2014 fiscal year continued this trend with sales tax receipts coming in 14% over the prior year. While optimistic that this growth will continue, the City takes a conservative approach to estimating its available resources for each upcoming budget year as national and world wide issues continue to show some uncertainty. Transmittal Letter Page 11 New development occurred in the downtown area with the opening of Gumbo’s signature restaurant and the completion of Grape Creek Winery, both located directly on the historic downtown square. The downtown area was further enhanced in 2013 with the opening of Thundercloud Subs in the former historic fire station truck bays and the Georgetown Arts and Culture Center in the historic fire station right next door. Another new restaurant, El Monumento, won the Texas Downtown Association’s “Best New Construction” award for 2013. New health care facilities, such as assisted living centers, were underway near Sun City. Two new behavioral hospitals, one built by Springstone, and the other operated by Signature Healthcare will add about $35 million to the City’s tax roll. Texas Life Sciences Collaboration Center (TLCC) is nearing completion on their second building with the new space almost fully leased and site plans underway for a third building. The City approved the development agreement for the Sheraton Hotel and Conference Center at the Summit at Rivery Park site. The development includes 220 rooms, 16,000 square feet of conference space, a parking garage and future retail and restaurant development valued at approximately $150 million at full build out. Groundbreaking is expected by summer of 2014. Georgetown takes an active role in water and wastewater planning with the Brazos River Authority (BRA) to find regional solutions to the ever increasing demand for services, while protecting the natural Page 12 Transmittal Letter environment within the area. Growth within the utilities continues to have strong positive impacts to the financial and economic conditions of Georgetown. MAJOR INITIATIVES Energy Services. With the ending of the City of Georgetown’s wholesale power agreement with the Lower Colorado River Authority (LCRA) in September 2012, the City extended its active management of its daily energy supply to cover the larger market exposures, congestion issues, and real time settlements that LCRA previously handled. The City currently has power arrangements to cover 100% of its projected needs through May 2015 and 80% of its needs to 2036. The financial impact of these changes has been lower purchased power costs, which are being passed on to customers through lower rates. The City’s new long term contracts are mostly renewable energy and therefore provide a hedge against carbon legislation costs. General fund franchise fee revenues are based on the number of kWh sold; therefore, no impact on other City funds is expected from lowering costs to customers. The City has further modernized its rate structure to reflect a cost of service basis with higher fixed monthly charges and lower variable kWh rates. This further stabilizes the City’s revenue stream and enhances its ability to use the electric utility to further enhance economic development opportunities. The City already provides power for the Premiere Outlet Mall, Scott and White Hospital and major restaurant and retailers in the north Round Rock area. The August 2013 announcement of a new Bass Pro Shop at the outlet mall site will further expand Georgetown’s commercial electric customer base. Regional Water. The City was approached by the Chisholm Trail Special Utility District (CTSUD) in 2011 about the possibility of merging with the City’s water system. The CTSUD provides water service to several areas within the City and the City’s ETJ and future growth centers. A detailed feasibility study was completed and the City Council and CTUSD gave final approval to the merger agreement in September 2013. This consolidation with the 7,300 customer district, expected to be completed in late spring 2014, will provide opportunities for the City’s future growth and development, and ensures consistent service and water supply to that regional area for years to come. Utility Rates. The City continues to review rate requirements for all utilities annually, as part of the budget process. Environmental mandates for water and wastewater continue to be the driving factor in rate analysis. Water and wastewater rates were reviewed by the City to ensure rates were funding the costs of providing services. Based on this review, the City adopted a new, more stable water rate structure that better balances fixed and variable components and emphasizes conservation. The initial net revenue impact to the City and its customers will be minor; however, it does give the City a more stable revenue base to implement more aggressive conservation rates as it works to extend its future water supply options. 19 Austin Dallas/Fort Worth San Antonio Lubbock El Paso Amarillo Houston Georgetown Location Georgetown is the northern most “gateway” to the gently rolling hills of Central Texas. While Georgetown offers the amenities and charm of a small community rooted in values of days gone by, it is strategically and centrally located in the middle of the four major metropolitan areas of Texas. Austin is 26 miles south, Dallas is three hours north, Houston is three hours southeast and San Antonio is just one-and-a-half hours south, placing Georgetown in a very advantageous position for cultural and economic development. Traveling to and from Georgetown is easy, as it is at the crossroads of IH-35 going north/south and State Highway 29 going east/west. Access to Georgetown via the Austin-Bergstrom International Airport was made much easier with the opening of State Highway 130, the toll road from Georgetown to San Antonio that parallels IH-35. 20 CITY OF GEORGETOWN, TEXAS MD&A 30 FINANCIAL ANALYSIS OF THE CITY AS A WHOLE Statement of Net Position: The following table reflects the condensed Statement of Net Position: 2013 2012 2013 2012 2013 2012 Current and other assets $ 80,594 $ 66,936 $ 54,140 $ 47,799 $ 134,734 $ 114,735 Capital assets 267,871 253,521 287,661 281,475 555,532 534,996 Total assets $ 348,465 $ 320,457 $ 341,801 $ 329,274 $ 690,266 $ 649,731 Deferred outflows of resources $ 1,259 $ - $ - $ - 1,259 $- Total assets and deferred outflows $ 349,724 $ 320,457 $ 341,801 $ 329,274 $ 691,525 $ 649,731 Long-term liabilities $ 131,220 $ 114,653 $ 63,558 $ 64,504 194,778 $ 179,157 Other liabilities 5,618 7,001 7,247 6,911 12,865 13,912 Total liabilities $ 136,838 $ 121,654 $ 70,805 $ 71,415 $ 207,643 $ 193,069 Net position: Invested in capital assets, net of related debt $ 178,195 $ 168,059 $ 226,874 $ 220,810 $ 405,069 $ 388,869 Restricted 1,109 1,749 1,109 1,749 Unrestricted 33,582 28,995 44,122 37,049 77,704 66,044 Total net position $ 212,886 $ 198,803 $ 270,996 $ 257,859 $ 483,882 $ 456,662 Summary Statement of Net Position (In thousands) Govtl Activities Bus-Type Activities Total Primary Government CITY OF GEORGETOWN, TEXAS MD&A 32  The City elected to early implement Governmental Accounting Standards Board Statement No. 65 in FY 2013, resulting in a one-time restatement of beginning Net Position of $2.8 million. The restatement was to reflect previously capitalized debt issuance costs that are now expensed in the year incurred. REVENUES  Program revenues are derived from the program itself and reduce the cost of the function to the City. Total program revenues for both governmental and business-type activities are described below.  Governmental activities program revenue for the fiscal year ended September 30, 2013 was $20.1 million, a 24.8% increase over last fiscal year. The Charges for Services category represents receipts primarily from environmental services, development and building inspection fees, parks fees, fire billing for services and court fines. Charges for services were $13.8 million in FY 2013, an 8.7% increase from FY 2012 revenues. Increases in the Williamson County Emergency Services District No. 8 contract and new rates for environmental services saw the largest increases. Other governmental program revenues included operating grants for parks, fire and police programs, and streets.  Business-type activities program revenue totaled $91.7 million, a 3.5% decrease over prior year. Capital grants and contributions were $641,000 higher than the prior year. Charges for Services, which represent receipts from utility customers for electric, water, and wastewater, decreased $3.9 million. Electric charges for service decreased 7.8% due to lower costs to the customers, which is offset by reduced purchased power costs. The long standing contract with LCRA for purchased power was terminated in September 2012 resulting in lower power supply costs. The lower cost has been passed through to the customers through the power cost adjustment (PCA). The PCA is changed as needed for fluctuations in fuel and transmission costs. Water charges for services increased 2.4% due to modest customer growth. Other program revenues include airport fuel sales, hangar rentals and stormwater drainage fees.  General revenues are revenues from taxes levied on behalf of the general government and other revenues used for general government activities not specific to a program or service. These revenues and notable changes are described below.  Property taxes totaled $17 million. Included in these taxes are real and personal property levies which are assessed October 1, and payable before the following January 31. CITY OF GEORGETOWN, TEXAS MD&A 33  Assessed valuations on existing properties were nearly flat, while total assessed valuation increased 3.7% compared to the prior year. The variance is attributed to $90 million in new and annexed property.  The ad valorem tax rate for fiscal year 2013 was $0.4100 per $100 of assessed valuation. This is an increase of $0.0225 over the prior year’s rate of $0.3875. The majority of the increase is funding new debt. The adopted tax rate is a 3.14% increase over the 2013 effective rate.  Sales taxes, the City’s second largest source of general revenue, totaled $17 million for fiscal year 2013, which was an increase of 13.3% compared to the prior year. This increase in sales tax can be attributed to the continued economic growth in both retail sales and building materials. Changes in the law regarding sales tax on internet sales have also impacted the increase. Sales tax revenues represented 27% of the general revenue total in 2013, excluding the return-on-investment transfers from the utility funds.  Hotel/motel taxes totaled $553,143, compared to $454,531 in FY 2012 and are included in other revenue. EXPENSES  Expenses for governmental activities totaled $53.2 million, versus $51.4 million in FY 2012. Total expenses were $1.8 million higher than the prior year. Major expenses include the Environmental Services (sanitation) contract, salaries for providing services in the public safety area, as well as for parks and streets maintenance. Salary increases from the market compensation plan was implemented at the beginning of 2012/13. Other explanations for the increases are noted below.  Culture-recreation increased 4.8% over the prior year due in part to salary adjustments and an added ½ FTE.  Development decreased 27.8%. The decrease can be attributed to the Planning department being realigned to Management Services.  Fire Services increased 5.9% due to the restructured STEP pay plan that was implemented January 2013 and the October 2012 opening of the new Fire Station No. 5.  Streets decreased 1.9% due to the timing of scheduled maintenance of the transportation system and vacant positions. City of Georgetown, Texas SUBJECT: Discussion and possible action to set meeting times and location for the monthly meetings of the General Government and Finance Advisory Board - Submitted by: Steve Fought, GGAF Chair ITEM SUMMARY: The committee wanted to revisit the times/location for the monthly GGAF meetings to ensure it is convenient for the current committee members. FINANCIAL IMPACT: SUBMITTED BY: Steve Fought, GGAF Chair