HomeMy WebLinkAboutAgenda_GGAF_03.25.2015Notice of Meeting for the
General Government and Finance Advisory Board
of the City of Georgetown
March 25, 2015 at 3:30 PM
at Georgetown Public Library Classroom, located at 402 West 8th Street,
Georgetown, Texas
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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
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Legislative Regular Agenda
A Election of General Government and Finance Advisory Board (GGAF) Board Officers – Keith
Brainard, GGAF Chair
B Review minutes from the March 6, 2015 GGAF meeting - Danella Elliott, Executive Assistant
C Purchase to Zeno Imaging in the amount of $58,205.71 for Printer Maintenance and Supplies
Services - James Davis, IT Operations Manager and Mike Peters, IT Director
D Overview of the upcoming Banking Request for Application (RFA) and related Timeline – Lisa
Haines, Controller and Micki Rundell, Chief Financial Officer
E Discussion of the City’s miscellaneous long-term commitments, reservations and other unfunded
liabilities. – Micki Rundell, Chief Financial Officer
F Consideration and possible recommendation on the potential uses of YE 2014 General Fund
excess and other unexpected funds for appropriation to the 2014/15 Annual Budget – Micki
Rundell, Chief Financial Officer
G Review of the City’s Fiscal & Budgetary Policy and discussion of possible amendments for
2015/16. – Micki Rundell, Chief Financial Officer
H Discuss dates/times for future GGAF Meetings – Keith Brainard, 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 __________________, 2015, 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
Government and Finance Advisory Board
March 25, 2015
SUBJECT:
Election of General Government and Finance Advisory Board (GGAF) Board Officers – Keith
Brainard, GGAF Chair
ITEM SUMMARY:
According to the General Government and Finance Advisory Board Bylaws, Article III - Board
Officers, Section 3.1 - Officers:
The Board Officers are Chairman, Vice-Chairman and Secretary. The Chairman is appointed by
the City Council during the annual appointment process. The other Board Officers are elected by a
majority vote of the Members at the first meeting after the annual appointment process.
Mayor Ross recommended Keith Brainard as Chairman of the GGAF Board, and Council
approved this appointment on February 10, 2015. This item is to elect a Vice-Chairman and
Secretary by a majority vote of the members:
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Keith Brainard, GGAF Chair
ATTACHMENTS:
Description Type
GGAF Bylaws Backup Material
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 1 of 6
CITY OF GEORGETOWN
GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD
BYLAWS
ARTICLE I. NAME AND PURPOSE
Section 1.1. Name. General Government and Finance Advisory Board (“Board”).
Section 1.2. Purpose. It is the purpose and intent of the Council to create an advisory
board empowered to review and analyze the general government and finance activities
of the City that include but are not limited to the following areas: Finance
administration, including fiscal matters, debt and treasury management; accounting
and financial reporting; purchasing; the Municipal Court; facilities maintenance
including construction and renovation of City facilities; vehicle services; information
technology; compensation and benefits; City insurance; and other related items as
recommend by the City Manager, and to report, by official vote, their recommendations
to the City Council.
ARTICLE II. MEMBERSHIP
Section 2.1. Number of Members. The Board will be comprised of five (5) Members.
Section 2.2. Eligibility. All Members shall reside in the corporate City limits or the
extraterritorial jurisdiction of the City. Three Members shall be Members of the City
Council.
Section 2.3. Appointment of Board Members. Members of the Board shall be
appointed pursuant to and in accordance with the City Charter.
Section 2.4. Terms of Office. Generally, terms of office for each Member shall be two
(2) years. Generally, a Member may serve two (2) consecutive terms. Refer to Ordinance
Section 2.36.030A for additional provisions regarding terms of office.
Section 2.5. Vacancies. Vacancies that occur during a term shall be filled as soon as
reasonably possible and in the same manner as an appointment in accordance with the
City Charter. If possible, the Member shall continue to serve until the vacancy is filled.
An appointment to fill a vacated term is not included as a term for purposes of counting
consecutive terms.
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 2 of 6
Section 2.6. Compensation and Expenditure of Funds. Members serve without
compensation. The Board and its Members have no authority to expend funds or to
incur or make an obligation on behalf of the City unless authorized and approved by
the City Council. Members may be reimbursed for expenses authorized and approved
by the City Council and the Board.
Section 2.7. Compliance with City Policy. Members will comply with City
Ordinances, Rules and Policies applicable to the Board and the Members, including but
not limited to Ethics Ordinance Chapter 2.20 and City Commissions, Committees and Boards
Ordinance Chapter 2.36.
Section 2.8. Removal. Any Member may be removed from their position on the Board
for any reason, or for no reason, by a majority vote of the City Council.
ARTICLE III. BOARD OFFICERS
Section 3.1. Officers. The Board Officers are Chairman, Vice-Chairman and Secretary.
The Chairman is appointed by the City Council during the annual appointment process.
The other Board Officers are elected by a majority vote of the Members at the first
meeting after the annual appointment process.
Section 3.2. Terms of Office for Board Officers. Board Officers serve for a term of
one year. In the event of vacancy in the office of Chairman, the Vice-Chairman shall
serve as Chairman until the City Council appoints a replacement Chairman. A vacancy
in the other offices shall be elected by majority vote of the Members at the next
regularly scheduled meeting, or as soon as reasonably practical for the unexpired term.
If possible, a Board Officer shall continue to serve until the vacancy is filled.
Section 3.3. Duties.
a. The Chairman presides at Board meetings. The Chairman shall generally manage
the business of the Board. The Chairman shall perform the duties delegated to the
Chairman by the Board.
b. The Vice-Chairman shall perform the duties delegated to the Vice-Chairman by the
Board. The Vice-Chairman presides at Board meetings in the Chairman’s absence.
The Vice-Chairman shall perform the duties of the Chairman in the Chairman’s
absence or disability.
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 3 of 6
c. The Secretary shall perform the duties delegated to the Secretary by the Board.
ARTICLE IV. MEETINGS
Section 4.1. Time and Date of Regular Meeting. The Board shall meet once a month
on the same week of the month, the same day of the week, at the same time, and at the
same place. The regular date, time and place of the Board meeting will be decided by
the Members at the first meeting of the Board after the annual appointment process.
Section 4.2. Agenda. Items may be placed on the agenda by the Chairman, the City
Manager or designee, or at the request of a Member. The party (or individual)
requesting the agenda item will be responsible for preparing an agenda item cover
sheet and for the initial presentation at the meeting. Items included on the agenda must
be submitted to the Staff Liaison no later than one week before the Board meeting at
which the agenda item will be considered. Agenda packets for regular meetings will be
provided to the Members in advance of the scheduled Board meeting. Agenda packets
will contain the posted agenda, agenda item cover sheets, and written minutes of the
last meeting.
Section 4.3. Special Meetings. Special meetings may be called by the Chairman or by
three (3) Members.
Section 4.4. Quorum. A quorum shall consist of a majority of the Members. A
quorum is required for the Board to convene a meeting and to conduct business at a
meeting.
Section 4.5. Call to Order. Board meetings will be called to order by the Chairman or,
if absent, by the Vice-Chairman. In the absence of both the Chairman and Vice-
Chairman, the meeting shall be called to order by the Secretary, and a temporary
Chairman shall be elected to preside over the meeting.
Section 4.6. Conduct of Meeting. Board meetings will be conducted in accordance
with these Bylaws and City Council Meeting Rules and Procedures, as applicable to the
Board. See Ordinance Chapter 2.24.
Section 4.7. Voting. Each Member shall vote on all agenda items, except on matters
involving a conflict of interest, substantial financial interest or substantial economic
interest under state law, the City’s Ethics Ordinance, or other applicable Laws, Rules
and Policies. In such instances the Member shall make the required disclosures and
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 4 of 6
shall refrain from participating in both the discussion and vote on the matter. The
Member may remain at the dais or leave the dais, at the Member’s option, while the
matter is being considered and voted on by the other Board Members. Unless
otherwise provided by law, if a quorum is present, an agenda item must be approved
by a majority of the Board Members present at the meeting.
Section 4.8. Minutes. A recording or written minutes shall be made of all open
sessions of Board meetings. The Staff Liaison is the custodian of all Board records and
documents.
Section 4.9. Attendance. Members are required to attend Board meetings prepared to
discuss the issues on the agenda. A Member shall notify the Chairman and the Staff
Liaison if the Member is unable to attend a meeting. Excessive absenteeism will be
subject to action under Council policy and may result in the Member being replaced on
the Board. See Ordinance Section 2.36.010D. Excessive absenteeism means failure to
attend at least 75% of regularly scheduled meetings, including Board meetings and
Subcommittee meetings. If a Member is removed from the Board that position shall be
considered vacant and a new Member shall be appointed to the Board in accordance
with Section 2.5 above.
Section 4.10. Public Participation. In accordance with City policy, the public is
welcome and invited to attend Board meetings and to speak on any item on the agenda.
A person wishing to address the Board must sign up to speak in accordance with the
policy of the Council concerning participation and general public comment at public
meetings. Sign-up sheets will be available and should be submitted to the Chairman
prior to the start of the meeting. If any written materials are to be provided to the
Board, a copy shall also be provided to the Staff Liaison for inclusion in the minutes of
the meeting. Speakers shall be allowed a maximum of three minutes to speak, but may
take up to six minutes if another individual who signs up to speak yields the time to the
speaker. If a person wishes to speak on an issue that is not posted on the agenda, they
must file a written request with the Staff Liaison no later than one week before the
scheduled meeting. The written request must state the specific topic to be addressed
and include sufficient information to inform the Board and the public. A person who
disrupts the meeting may be asked to leave and be removed.
Section 4.11. Open Meetings. Public notice of Board meetings shall be provided in
accordance with the provisions of the Texas Open Meetings Act. All Board meetings
and deliberations shall be open to the public, except for properly noticed closed session
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 5 of 6
matters, and shall be conducted in accordance with the provisions of the Texas Open
Meetings Act.
Section 4.12. Closed Sessions. The Board may conduct closed sessions as allowed by
law, on properly noticed closed session matters, such as consultation with attorney on
legal matters, deliberation regarding the value of real property, competitive utility
matters, and economic development negotiations. A recording or certified agenda shall
be made of all closed sessions of Board meetings.
ARTICLE V. REPORTS TO CITY COUNCIL
The Board shall meet with City Council, as requested, to determine how the Board may
best serve and assist City Council. City Council shall hear reports from the Board at
regularly scheduled Council meetings.
ARTICLE VI. SUBCOMMITTEES
Section 6.1. Formation. When deemed necessary by a majority of the Board,
Subcommittees may be formed for specific projects related to Board matters.
Subcommittees comprised of non-Members may only be formed with the prior consent
and confirmation of the City Council.
Section 6.2. Expenditure of Funds. No Subcommittee, or member of a Subcommittee,
has the authority to expend funds or incur an obligation on behalf of the City or the
Board. Subcommittee expenses may be reimbursed if authorized and approved by the
Board or by City Council.
Section 6.3. Open Meetings. Subcommittee meetings and deliberations shall be open
to the public, except for properly noticed closed session matters, and shall be conducted
in accordance with the provisions of the Texas Open Meetings Act.
ARTICLE VII. BYLAW AMENDMENTS
These Bylaws may be amended by majority vote of the Board Members at any regular
meeting of the Board. The Board’s proposed amendments to the Bylaws must be
approved by City Council at the next Council meeting after the Board’s approval.
Bylaw amendments are not effective until approved by City Council.
General Government and Finance Advisory Board Bylaws
Revised February 2015
Page 6 of 6
Approved and adopted at a meeting of the City Council on the _____ day of
____________________, 2015.
ATTEST: THE CITY OF GEORGETOWN
_____ _____
City Secretary Mayor
Approved and adopted at a meeting of the Board on the ______ day of
_________________, 2015.
ATTEST: BOARD
_____ _____
Board Secretary Board Chairman
City of Georgetown, Texas
Government and Finance Advisory Board
March 25, 2015
SUBJECT:
Review minutes from the March 6, 2015 GGAF meeting - Danella Elliott, Executive Assistant
ITEM SUMMARY:
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Danella Elliott, Executive Assistant
ATTACHMENTS:
Description Type
3/6/15 GGAF Draft Minutes Backup Material
Minutes of the Meeting of the
GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF)
City of Georgetown, Texas
March 6, 2015
The General Government and Finance Advisory Board met at 3:00 p.m. on Friday, March 6, 2015 in the
Georgetown Public Library Classroom, located at 402 West 8thth Street, Georgetown, Texas.
MEMBERS PRESENT: Keith Brainard, Chair, Jerry Hammerlun, Ralph Mason, Thomas Bonham
MEMBERS ABSENT: Tommy Gonzalez
STAFF/OTHERS
PRESENT: Micki Rundell, Jim Briggs, Laurie Brewer, Trina Bickford, Lisa Haines, Leticia Zavala,
Mike Peters, Chris Bryce, Wayne Nero, Clay Shell, James Davis, Kevin Sanford (Weaver
and Tidwell, LLP)
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 3:00 p.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.
Council advised on August 26th to not have a Consent Agenda at Boards and Commission meetings; previously
posted items were moved and discussed on the Legislative Regular Agenda.
Legislative Regular Agenda
The Board will individually consider and possibly take action on any or all of the following items:
Keith Brainard, Chair, called to meeting to order at 3:00 p.m.
A. Review minutes from the January 28, 2015 GGAF meeting - Danella Elliott, Executive Assistant
Unanimously approved.
B. Recognition of Board Members – Keith Brainard, GGAF Chair
Mr. Brainard recognized Joe Pondrom, outgoing GGAF Citizen-at-Large member and presented him with a
plaque for his years of service and outstanding contribution to the GGAF Board. He also introduced new
member, Thomas Bonham, and welcomed him to the Board.
C. Discussion and possible recommendation to authorize payment to Tyler Technologies for online web
account management and payment processing fees in the amount of $87,000 - Leticia Zavala, Customer
Care Manager; Micki Rundell, Chief Financial Officer
Leticia explained that Insite is the City’s online account management and payment processing application.
Benefits to the customers include the ability to:
• Manage utility and municipal court accounts online via the website
• Access real time account data & accurate billings & account information.
• Pay their bill online 24 hours a day, 365 days a year
Benefits to the City/Utility include:
• Increased collection rates
• Improved productivity, allowing representatives to focus on higher return interactions
• Increased efficiency since it automatically integrates with existing Customer Information (Billing)
system (INCODE)
Customer Care handles approximately 37,100 total payments per month including transactions for customers in
the Western District, formerly Chisholm Trail Special Utility District. Web payments for the combined
transactions accounted for 13% of the total payments processed. We received approximately 4,400 payments
per month through the website in 2014. With the inclusion of the Western District the number is expected to
increase by 600 per month based on their payment history. A basis of 5,000 payments per month was used to
determine the estimated contract amount.
Costs include web publishing fees, customer inquiry fees, and transaction fees, and are separated by area below.
The Web Publishing fees and the Customer Inquiry fees are a fixed annual cost. The transaction fees are $1.25
each and are paid based on the number of payments taken through the website.
The total estimated cost for this service is $87,000, which equates to 0.6% of the total online utility revenue
collected through the website in 2014.
Unanimously approved.
D. Discussion and possible recommendation to renew a contract for utility bill printing and mailing services
with Dataprose and to approve funding at an annual cost of $232,560 - Leticia Zavala, Customer Care
Manager; Micki Rundell, Chief Financial Officer
Leticia reminded the Board that the City uses an inter-local agreement with the City of Plano to award the
utility bill printing and mailing service contract. She explained that the City benefits from the extended volume
pricing and allows us to meet our procurement requirements through the Plano Request for Proposal (RFP)
process. The City has had much success with Plano’s vendor, Dataprose, and looks to continue utilizing their
services. Plano secured a lower contract price through their RFP process in 2014.
The City of Georgetown processes and mails approximately 38,000 utility bills per month. These include late
notices along with the additional bills processed for the Western District (formerly Chisholm Trail Special
Utility District) customers.
We are continuing to provide and market an email option for customer bill presentment which eliminates our
postage costs for those customers. This option was introduced in June 2012 and has grown to include 5,800
participants or 15% of our total customer base.
The overall pricing averages $0.51 per bill which is on par with pricing paid last year. The printing and
insertion costs average $0.10 and the postage costs average $0.41.
Eighty percent (80%) of the estimated annual contract cost of $232,560 is related to postage and equates to
$186,048. The total cost for bill printing and insertion is $46,512.
The GGAF Board recommended that staff strongly encourage people to start receiving their bills electronically
versus paper. Educating the public and getting the word out is very important. Leticia said that this was high
on her list and she hopes that in the near future, this will be the way most citizens receive their information.
Unanimously approved.
E. Purchase of Library Audio-Video System from Ford Audio-Video for $56,638.84 – Mike Peters,
Information Technology Director and Keith Hutchinson, Public Communications Manager
Mike explained that this is a request for approval to purchase an integrated audio-video system for the Friends
and Hewlett rooms of the Georgetown Library, which will make the room more suitable for large presentations
and also allow for additional expansion into meeting broadcasts from these rooms. Key components include
video projection capabilities and wired/wireless audio. The City will also separately contract with SwagIt, LLC
to reinstall video broadcast equipment into these rooms, which is already owned by the City.
Ford Audio/Video is providing these products and services under TIPS contract 1121914.
This purchase qualifies for, and will be paid by, the City’s Public, Educational and Government (PEG) fee
funding, which was established following transfer to the state franchise agreement in 2013. Costs will be
recorded in the PEG fee fund.
Jerry asked if there were local vendors available, and Mike said that it was good to have all AV equipment with
the same vendor.
Unanimously approved.
F. Purchase of Cellular Digital Antenna System (DAS) for the Public Safety Operations and Training
Center (PSOTC) from Brycomm for $138,381.00 - Wayne Nero, Police Chief, Codi Newsom, Project
Manager and Mike Peters, Information Technology Director
Chief Nero said that this item is requesting approval to purchase a cellular Digital Antenna System (DAS) for
the Public Safety Operations and Training Center (PSOTC) in order to provide adequate cell service inside of
the building.
Cellular service inside of the building is currently marginal to poor throughout the building because of the
construction materials used, and the location/siting of the building. The DAS will re-broadcast signals from
four major cell phone carriers within the building at levels which will provide reliable and scalable service.
Brycomm is providing these products and services under DIR contract DIR-SDD-1901, and can be absorbed
within the PSOTC Total Project Cost. There is currently $40k being held for the system and just over $100k
in recognized savings from IT equipment. Chief noted that we are comfortable this can be done with the TPC
with savings remaining.
Thomas asked if FS #5 and the PSOTC could both be added. Mike will check into this possibility. He said that
the timeline for completion could be 3-4 months, but the rebroadcast agreements with each carrier would need
to be re-signed, which could take additional time.
Unanimously approved.
G. Consideration and possible action to approve the purchase of firefighting equipment and personnel
protective clothing from CASCO Industries using the Buy Board Contract at a price not to exceed
$90,000 for the remainder of fiscal year 2014-2015 – John Sullivan, Fire Chief
Asst Chief Clay Shell explained that the Georgetown Fire Department (GFD) periodically purchases new and
replacement equipment and personal protective clothing and equipment (PPE) on an as needed basis through the
year, and anticipates expenditures for the remainder of 2014-2015 will total approximately $90,000. Staff has
determined that the best value for the City is to procure the required gear from Casco Industries using their
competitively bid Buy Board Contract #432-13. Use of a competitively bid cooperative contract provides more
favorable pricing as the cooperative solicits for statewide usage volumes as opposed to that of the City only.
Currently, GFD anticipates procuring the following items immediately:
• 16 sets of structural PPE - $40,734.00
• 16 sets of wildland PPE - $14,016.00 (estimated cost)
• Ladder Safety Belts - $10,000.00
• Replacement PPE as needed
• Firefighting hand tools, equipment, and fire hose for new apparatus as needed
Unanimously approved.
H. Consideration and possible action to approve the purchase of emergency medical supplies from Bound
Tree Medical through a purchasing cooperative inter-local agreement between the City of Georgetown
and Williamson County at a price not to exceed $60,000 for the remainder of fiscal year 2014-2015 – John
Sullivan, Fire Chief
Asst. Chief Shell informed the GGAF Board that the GFD will stock their new TRVs during the coming
months, and periodically restock the vehicles as needed through the remainder of the fiscal year. Staff has
determined the best value to the City is to procure the required medical supplies under the purchasing
cooperative inter-local agreement between the City of Georgetown, Texas and Williamson County, Texas.
Bound Tree Medical, a Sarnova business based in Dublin, Ohio, is a distributor of emergency medical
equipment, supplies, pharmaceuticals and product expertise for fire departments, military, government
institutions and other emergency medical services (EMS) organizations that provide pre-hospital, emergency
care. Other cooperative contracts were considered and determined less advantageous.
The cost for emergency medical supplies required to initially equip the TRVs is $16,220.60. The Fire
Department will procure additional emergency medical supplies on an as needed basis to ensure the TRVs are
properly stocked at all times.
Unanimously approved.
I. Consideration and possible action to approve the purchase of emergency medical supplies from Life
Assist, Inc. through a purchasing cooperative inter-local agreement between the City of Georgetown and
Williamson County at a price not to exceed $90,000 for the remainder of fiscal year 2014-2015 – John
Sullivan, Fire Chief
Asst. Chief Shell again said that the GFD stock their new TRVs during the coming months, and periodically
restock the vehicles as needed through the remainder of the fiscal year. Staff has determined the best value to
the City is to procure the required medical supplies under the purchasing cooperative inter-local agreement
between the City of Georgetown, Texas and Williamson County, Texas.
Life-Assist is one of the nation's largest distributors of emergency medical supplies and equipment. Since 1977,
they have specialized in customer service, with customer satisfaction as their ultimate goal. Other cooperative
contracts were considered and determined less advantageous.
The cost for emergency medical supplies required to initially equip the TRVs is $53,077.60. The Fire
Department will procure additional emergency medical supplies on an as needed basis to ensure the TRVs are
properly stocked at all times.
Unanimously approved.
J. Discuss dates/times for future GGAF Meetings – Keith Brainard, GGAF Chair
Keith asked the GGAF Board to be thinking of the best day/time to hold future GGAF Meetings. He said that
the current time slot is not the best time for him, but wants to discuss this at a later meeting when everyone is
present and has had time to think of their preferences and prior commitments.
Ralph said that he is retired, thus very flexible.
This item will be on the next GGAF Agenda for March 25th.
K. Review and discussion of the Comprehensive Annual Financial Plan (CAFR) and audit results of the
audit for Fiscal Year Ended, September 30, 2014 – Micki Rundell, Chief Financial Officer and Lisa
Haines, Controller
Micki gave a presentation on the CAFR, and noted that the Budget is “how you spend your dollars”, and the
CAFR is “how the dollars were spent”. She then introduced Kevin Sanford, CPA, auditor for Weaver and
Tidwell, LLP, our external auditing firm.
Kevin went over the financial report and said that their firm will be issuing an “unmodified opinion”, which is
the highest rating a City can strive for. He said that they found no compliance items, and had already discussed
any questions they had with Micki and Lisa. Overall, it was a good audit and he was complimentary of the
staff. The firm is finalizing their recommendations and will present these findings within 45 days.
Keith said that he would like to discuss “surplus property” (how it is handled and how to spend the money) at
a future GGAF meeting, and would also like a list of all liabilities and obligations that the city has.
Ralph said that he is pleased with Mr. Sanford’s thorough report, and said it justifies making the right selection
of this audit firm last year.
Keith commended staff for their hard work and noted that the findings were very impressive. Jerry
complimented staff on the initiative to take the “modified approach” years ago.
Keith recognized Laurie Brewer, Assistant City Manager and Jim Briggs, Interim City Manager who were both
in attendance at the meeting.
Adjournment
The meeting was adjourned at 4:20 pm.
_____________________________________
Board Chair
City of Georgetown, Texas
Government and Finance Advisory Board
March 25, 2015
SUBJECT:
Purchase to Zeno Imaging in the amount of $58,205.71 for Printer Maintenance and Supplies
Services - James Davis, IT Operations Manager and Mike Peters, IT Director
ITEM SUMMARY:
This item is for a Managed Print Services (MPS) contract to handle all maintenance and toner
supplies for the City’s networked printers and multi-function printer fleet. This item was sent out
as an RFP which two companies responded to. All requirements were specified in the RFP and any
questions by potential bidders were promptly answered. Staff evaluated the two respondents based
on best value, services offered, and reference checks. Zeno Imaging was picked as the preferred
vendor based on this process.
The bid tab totals in the attachment are based on a per print, referred to as per click, count for each
printer per month. Pricing per “click” can vary by each printer manufacturer and model. Click
counts are calculated monthly with a true up handled quarterly.
The listed amount includes a $4,000 annual ($1,000/quarter) allowance for print volume charges in
excess of the budgeted per month click counts.
FINANCIAL IMPACT:
This item was budgeted during the FY 2015 budget process. Expenses will be recorded in account
570-5-0641-51-341 (Contracts).
SUBMITTED BY:
James Davis, IT Operations Manager and Mike Peters, IT Director
ATTACHMENTS:
Description Type
Printer Maintenance Bid Tab Backup Material
Vendor:Zeno Imaging Zeno Imaging - second tab TLC Office Systems TLC Office Systems
(BW & Color separated)Alternate
Machine Name
Total Monthly
Maintenance,
Supplies & Toner
Total Annual
Maintenance,
Supplies & Toner
Total Monthly
Maintenance,
Supplies & Toner
Total Annual
Maintenance,
Supplies & Toner
Total Monthly
Maintenance,
Supplies & Toner
Total Annual
Maintenance,
Supplies & Toner
Total Monthly
Maintenance,
Supplies & Toner
Total Annual
Maintenance,
Supplies & Toner
AIRPORT-HP4250 $12.36 $148.32 $12.36 $148.32 $9.85 $118.20 $26.59 $319.08
AIRPORT-MFP-300i $6.76 $81.12 $6.76 $81.12 $11.32 $135.84 $11.32 $135.84
ANIMAL-COLOR-MFP-2126 $127.46 $1,529.52 $127.46 $1,529.52 $139.52 $1,674.24 $139.52 $1,674.24
ANIMAL-P2135dn $1.87 $22.44 $1.87 $22.44 $6.95 $83.40 $6.95 $83.40
BLDG3-HP2015 $1.52 $18.24 $1.52 $18.24 $2.79 $33.48 $6.57 $78.84
CH-CITYSEC-MFP-4550 $184.09 $2,209.08 $184.09 $2,209.08 $114.25 $1,371.00 $114.25 $1,371.00
CH-FINANCE-CHECK-HP4250 $36.60 $439.20 $36.60 $439.20 $29.18 $350.16 $78.77 $945.24
CH-FINANCE-COLOR-HP4650 $23.78 $285.36 $23.78 $285.36 $37.48 $449.76 $37.48 $449.76
CH-FINANCE-COLOR-MFP-400 $294.33 $3,531.96 $294.33 $3,531.96 $144.97 $1,739.64 $144.97 $1,739.64
CH-FINANCE-HP4200 $17.39 $208.68 $17.39 $208.68 $19.55 $234.60 $42.98 $515.76
CH-FINANCE-HP8150 $50.07 $600.84 $50.07 $600.84 $35.42 $425.04 $106.03 $1,272.36
CH-HR-MFP-3051ci $53.39 $640.68 $89.74 $1,076.88 $113.70 $1,364.40 $113.70 $1,364.40
CH-HR-P3015 $3.95 $47.40 $3.95 $47.40 $6.33 $75.96 $11.84 $142.08
CH-MS-COLOR-MFP-5551ci $70.84 $850.08 $70.84 $850.08 $32.14 $385.68 $32.14 $385.68
CH-MS-MFP-3140 $9.05 $108.60 $9.05 $108.60 $17.60 $211.20 $17.60 $211.20
COB-COLOR-MFP-4550ci $3.90 $46.80 $222.92 $2,675.04 $85.42 $1,025.04 $85.42 $1,025.04
COURT-HP8150 $15.80 $189.60 $15.80 $189.60 $11.18 $134.16 $33.46 $401.52
COURT-JUDGE-HP1320 $0.79 $9.48 $0.79 $9.48 $2.08 $24.96 $4.55 $54.60
COURT-KM-MFP-KM2560 $6.04 $72.48 $6.04 $72.48 $10.55 $126.60 $10.55 $126.60
COURT-MFP-KM5050 $41.08 $492.96 $41.08 $492.96 $69.34 $832.08 $69.34 $832.08
FACILITIES-COLOR-5250DN $8.06 $96.72 $8.06 $96.72 $7.19 $86.28 $7.19 $86.28
FACILITIES-MFP-6525 $3.47 $41.64 $3.47 $41.64 $7.15 $85.80 $7.15 $85.80
FIRE1-MFP-HP4345 $13.74 $164.88 $13.74 $164.88 $12.18 $146.16 $29.91 $358.92
FIRE2-BC-MFP-255 $6.46 $77.52 $6.46 $77.52 $18.96 $227.52 $18.96 $227.52
FIRE2-HP3015 $5.05 $60.60 $5.05 $60.60 $8.09 $97.08 $15.13 $181.56
FIRE2-RIPRUN-2100DN $1.16 $13.92 $1.16 $13.92 $2.38 $28.56 $2.38 $28.56
FIRE3-MFP-KM2560 $5.23 $62.76 $5.23 $62.76 $9.13 $109.56 $9.13 $109.56
FIRE4-HP-P3015 $3.40 $40.80 $3.40 $40.80 $5.44 $65.28 $10.18 $122.16
FIRE5-MFP-255 $6.90 $82.80 $6.90 $82.80 $20.25 $243.00 $20.25 $243.00
FIRE5-RIPRUN-2100DN $1.19 $14.28 $1.19 $14.28 $2.43 $29.16 $2.43 $29.16
FIRE-ADMIN-COLOR-5250DN $81.88 $982.56 $81.88 $982.56 $69.58 $834.96 $69.58 $834.96
FIRE-ADMIN-ED-COLOR-HP5550 $25.40 $304.80 $25.40 $304.80 $38.94 $467.28 $38.94 $467.28
Bid Invitation No.:201520 Printer Maintenance
Division:Finance - IT
Bid Opening Date:02/27/2015, 2PM
FIRE-ADMIN-ED-MFP-HP4345 $35.55 $426.60 $35.55 $426.60 $31.51 $378.12 $77.39 $928.68
FIRE-ADMIN-MFP-520i $58.47 $701.64 $58.47 $701.64 $78.26 $939.12 $78.26 $939.12
GCAT-FIREDISPATCH-FS3900DN $3.22 $38.64 $3.22 $38.64 $4.34 $52.08 $4.34 $52.08
GCAT-IT-COLOR-C602DN-A $23.99 $287.88 $23.98 $287.76 $14.13 $169.56 $14.13 $169.56
GCAT-IT-MFP-305 $5.02 $60.24 $5.02 $60.24 $11.25 $135.00 $11.25 $135.00
GCAT-IT-T640 $1.11 $13.32 $1.11 $13.32 $3.22 $38.64 $3.22 $38.64
GCAT-LEGAL-FS1320D $1.45 $17.40 $1.45 $17.40 $3.90 $46.80 $3.90 $46.80
GCAT-LEGAL-HP3015 $5.63 $67.56 $5.63 $67.56 $9.03 $108.36 $16.88 $202.56
GCAT-LEGAL-MFP-520i $20.79 $249.48 $20.79 $249.48 $27.83 $333.96 $27.83 $333.96
GCAT-PDDISPATCH-FS3900DN $11.64 $139.68 $11.64 $139.68 $15.71 $188.52 $15.71 $188.52
GMC-AMR-HP4250 $0.79 $9.48 $0.79 $9.48 $0.63 $7.56 $1.70 $20.40
GMC-EAM-MFP-6525 $14.01 $168.12 $14.01 $168.12 $28.86 $346.32 $28.86 $346.32
GMC-ELECTRIC-COLOR-MFP-4550ci $140.89 $1,690.68 $140.89 $1,690.68 $70.31 $843.72 $70.31 $843.72
GMC-GUSADMIN-ADMIN-HP4250 $1.24 $14.88 $1.24 $14.88 $1.39 $16.68 $3.07 $36.84
GMC-GUSADMIN-COLOR-MFP-6550ci $660.41 $7,924.92 $660.41 $7,924.92 $379.16 $4,549.92 $379.16 $4,549.92
GMC-GUSADMIN-FS3900DN $0.87 $10.44 $0.87 $10.44 $1.17 $14.04 $1.17 $14.04
GMC-GUSADMIN-HP4250 $8.09 $97.08 $8.09 $97.08 $6.45 $77.40 $17.41 $208.92
GMC-GUSDISP-HP4200 $7.20 $86.40 $7.20 $86.40 $8.09 $97.08 $17.79 $213.48
GMC-INSP-COLOR-HP4650 $26.81 $321.72 $26.81 $321.72 $42.91 $514.92 $42.91 $514.92
GMC-INSP-MFP-4500i $15.82 $189.84 $15.82 $189.84 $21.27 $255.24 $21.27 $255.24
GMC-PLDS-ADMIN-HP4250 $5.68 $68.16 $5.68 $68.16 $4.53 $54.36 $12.22 $146.64
GMC-PLDS-COLOR-M750 $206.47 $2,477.64 $206.47 $2,477.64 $255.40 $3,064.80 $255.40 $3,064.80
GMC-PLDS-HP2015 $1.19 $14.28 $1.19 $14.28 $2.16 $25.92 $5.11 $61.32
GMC-PLDS-HP4200 $1.58 $18.96 $1.58 $18.96 $1.78 $21.36 $3.91 $46.92
GMC-PLDS-MFP-520i $30.75 $369.00 $30.75 $369.00 $41.16 $493.92 $41.16 $493.92
GMC-PLDS-TEAM-HP3015 $1.09 $13.08 $1.09 $13.08 $1.75 $21.00 $3.27 $39.24
GMC-PLDS-TECH-HP3015 $3.57 $42.84 $0.00 $0.00 $5.72 $68.64 $10.70 $128.40
GMC-PURCHASING-CHECK-HP4250 $16.86 $202.32 $16.86 $202.32 $13.44 $161.28 $36.28 $435.36
GMC-PURCHASING-HP4250 $10.85 $130.20 $10.85 $130.20 $8.65 $103.80 $23.34 $280.08
GMC-PURCHASING-MFP-520i $23.23 $278.76 $23.23 $278.76 $31.09 $373.08 $31.09 $373.08
GMC-STREETS-HP4250 $3.38 $40.56 $3.38 $40.56 $2.70 $32.40 $7.28 $87.36
GMC-SYSENG-COLOR-HP5550 $51.76 $621.12 $51.76 $621.12 $81.91 $982.92 $81.91 $982.92
GMC-SYSENG-HP5200 $1.75 $21.00 $1.75 $21.00 $2.65 $31.80 $4.75 $57.00
GMC-UBILL-BILLING-HP4200 $10.31 $123.72 $10.31 $123.72 $11.59 $139.08 $25.48 $305.76
GMC-UBILL-CALL-MFP-HP4345 $276.89 $3,322.68 $276.89 $3,322.68 $245.39 $2,944.68 $602.76 $7,233.12
GMC-UBILL-CONF-HP3015 $15.00 $180.00 $15.00 $180.00 $24.04 $288.48 $44.96 $539.52
GMC-UBILL-COUNTER-HP4200 $13.08 $156.96 $13.08 $156.96 $14.71 $176.52 $32.34 $388.08
GMC-UBILL-MFP-3550ci $112.98 $1,355.76 $112.98 $1,355.76 $81.62 $979.44 $81.62 $979.44
GMC-VEHSHOP-COLOR-HP4600 $21.13 $253.56 $21.13 $253.56 $39.61 $475.32 $39.61 $475.32
GMC-VEHSHOP-MFP-6525 $8.17 $98.04 $8.17 $98.04 $16.83 $201.96 $16.83 $201.96
GMC-WAREHOUSE-HP4250 $3.30 $39.60 $3.30 $39.60 $2.63 $31.56 $7.11 $85.32
LIB-ADMIN-COLOR-HP4600 $188.80 $2,265.60 $188.80 $2,265.60 $307.52 $3,690.24 $307.52 $3,690.24
LIB-ADMIN-FS3900DN $37.68 $452.16 $37.68 $452.16 $50.84 $610.08 $50.84 $610.08
LIB-ADMIN-MFP-4500i $55.99 $671.88 $55.99 $671.88 $75.30 $903.60 $75.30 $903.60
LIB-CATALOG-HP4200 $4.80 $57.60 $4.80 $57.60 $5.39 $64.68 $11.85 $142.20
LIB-CIRC-HP4250 $3.45 $41.40 $3.45 $41.40 $2.75 $33.00 $7.43 $89.16
LIB-DIRECTOR-FS3900DN $0.55 $6.60 $0.55 $6.60 $0.74 $8.88 $0.74 $8.88
Library Public #1 $23.04 $276.48 $23.04 $276.48 $997.51 $11,970.12 $997.51 $11,970.12
Library Public #2 $3.08 $36.96 $3.08 $36.96 $8.31 $99.72 $8.31 $99.72
LIB-REF COLOR-HP3000 $25.13 $301.56 $25.13 $301.56 $58.83 $705.96 $58.83 $705.96
LIB-TECH-FS3920 $5.55 $66.60 $5.55 $66.60 $6.21 $74.52 $6.21 $74.52
PARK-ADMIN-COLOR-FS5200DN $0.09 $1.08 $0.09 $1.08 $11.77 $141.24 $11.77 $141.24
PARK-ADMIN-COUNTER-HP4200 $15.18 $182.16 $15.18 $182.16 $17.07 $204.84 $37.53 $450.36
PARK-ADMIN-HP4250 $3.73 $44.76 $3.73 $44.76 $2.97 $35.64 $8.02 $96.24
PARK-ADMIN-MFP-520 $46.12 $553.44 $46.12 $553.44 $61.74 $740.88 $61.74 $740.88
PARK-MAINT-HP4250 $0.20 $2.40 $0.20 $2.40 $0.16 $1.92 $0.43 $5.16
PD-ADMIN-COLOR-MFP-400ci $142.93 $1,715.16 $142.93 $1,715.16 $78.37 $940.44 $78.37 $940.44
PD-ADMIN-FS3900DN $1.58 $18.96 $1.58 $18.96 $2.13 $25.56 $2.13 $25.56
PD-CID-COLOR-MFP-3051CI $29.90 $358.80 $29.90 $358.80 $125.42 $1,505.04 $125.42 $1,505.04
PD-CODE-COLOR-MFP-3051CI $60.06 $720.72 $60.06 $720.72 $84.43 $1,013.16 $84.43 $1,013.16
PD-CRIME-FS3900DN $19.02 $228.24 $19.02 $228.24 $25.66 $307.92 $25.66 $307.92
PD-CRIME-PHOTO-HP8750 $0.20 $2.40 $0.20 $2.40 $1.32 $15.84 $1.32 $15.84
PD-ECO-COLOR-HP4650 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
PD-INSPECTIONS-HP4250 $28.03 $336.36 $28.03 $336.36 $22.35 $268.20 $60.32 $723.84
PD-PATROL-COLOR-HP500 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
PD-PROP-EVID-HP4200 $33.16 $397.92 $33.16 $397.92 $37.29 $447.48 $81.98 $983.76
PD-RECORDS-HP3015 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
PD-SOD-COLOR-HP4600 $59.02 $708.24 $59.02 $708.24 $101.55 $1,218.60 $101.55 $1,218.60
PD-TRAFFIC-HP3015 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
PD-VICTIMSVC-HP3015 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
PD-VIPS-HP3015 $5.59 $67.08 $5.59 $67.08 $13.40 $160.80 $32.38 $388.56
RECCTR-ADMIN-COLOR-FS5200DN $0.24 $2.88 $26.84 $322.08 $24.67 $296.04 $24.67 $296.04
RECCTR-ADMIN-MFP-420i $63.95 $767.40 $63.95 $767.40 $83.23 $998.76 $83.23 $998.76
RECCTR-COUNTER-HP4250 $32.98 $395.76 $32.98 $395.76 $26.29 $315.48 $70.98 $851.76
RECCTR-TEEN-FS3920DN $10.35 $124.20 $10.35 $124.20 $13.96 $167.52 $13.96 $167.52
TENNISCENTER-HP4250 $5.85 $70.20 $5.85 $70.20 $4.66 $55.92 $12.58 $150.96
Totals $3,891.28 $46,695.36 $4,169.67 $50,036.04 $5,001.96 $60,023.52 $5,971.96 $71,663.52
ADDITIONAL REQUESTED PRICING
Expedited Delivery Fee $7.95 $0.00 $0.00
Price for Black and White " Per Click" Overages $0.0079 $0.01085 $0.01545
Price for Color Overages "Per Click"$0.0780 $0.06420 $0.06420
City of Georgetown, Texas
Government and Finance Advisory Board
March 25, 2015
SUBJECT:
Overview of the upcoming Banking Request for Application (RFA) and related Timeline – Lisa
Haines, Controller and Micki Rundell, Chief Financial Officer
ITEM SUMMARY:
The City currently contracts with JP Morgan Chase for depository services based upon a 2010
RFA process. State law requires that a City bid depository services at least every five years. The
City contracted for two years, and has done three, one-year extensions. Our current contract is
good through August 31, 2015, with no renewals remaining. We are extremely happy with the
quality of services provided by JP Morgan Chase.
Services provided include depository banking for 8 accounts and 14 merchant IDs, fraud
mitigation to include positive pay check verification, ACH debit block, and post no checks. Staff
recommends moving forward with the RFA process to ensure the City is receiving the best
possible service at the best price.
Coordination for this process, which is outlined in the Texas Local Government Code, will be
coordinated by Valley View Investment Advisors. Valley View’s contract for services was
approved last month, and this process was included in their scope of services.
KEY DATES:
April 8 – Distribute RFA to prospective financial institutions
April 8 & 15 – Advertise Bank Depository notice
April 30 – Applications due back to City
May 27 – Recommendation to GGAF
June 9 – Award Bank Depository contract at Council meeting
The City will send letters to all local banks inviting them to respond to the RFA.
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Lisa Haines, Controller and Micki Rundell, Chief Financial Officer
ATTACHMENTS:
Description Type
Banking RFA Timeline Backup Material
Valley View Consulting, LLC 1
TARGET DATE TIME DESCRIPTION OF EVENTS
Wednesday, March 11, 2015 11:30 AM Confirm proposed calendar/information/review process.
Wednesday, March 11, 2015 All Day Initial List of Requested Information & Calendar provided.
Thursday, March 19, 2015 All Day Requested Information delivered for review & project initiation.
Monday, March 23, 2015 3:00 PM Discuss Bank Depository RFA information & considerations with staff.
Monday, March 30, 2015 All Day First draft of Bank Depository RFA to staff.
Wednesday, April 1, 2015 2:00 PM Review draft of Bank Depository RFA with staff.
Thursday, April 2, 2015 All Day Deadline for submission of advertisement to the Williamson County Sun
Friday, April 3, 2015 All Day Revised draft of Bank Depository RFA to staff.
Monday, April 6, 2015 2:00 PM Review/finalize draft of Bank Depository RFA with staff.
Wednesday, April 8, 2015 All Day Advertise the Bank Depository notice in the official publication newspaper – 1st Notice
Wednesday, April 8, 2015 All Day RFA distributed to prospective financial institutions.
Monday, April 13, 2015 3:00 PM Deadline for questions.
Tuesday, April 14, 2015 5:00 PM Issuance of RFA addendum (if necessary).
Wednesday, April 15, 2015 All Day Advertise the Bank Depository notice (2nd notice).
Thursday, April 30, 2015 2:00 PM Applications due from interested financial institutions.
Tuesday, May 12, 2015 All Day Draft of analysis to staff.
Wednesday, May 13, 2015 2:00 PM Review applications analysis and discuss recommendations with staff.
Friday, May 15, 2015 All Day Reference checks. (if necessary)
Friday, May 15, 2015 10:00 AM Presentation/demonstration. (if necessary)
Monday, May 18, 2015 All Day Finalize recommendation
Thursday, May 21, 2015 All Day Deadline for agenda of Government & Finance Committee meeting
Wednesday, May 27, 2015 3:30 PM Government & Finance Committee meeting (VVC)
Tuesday, June 2, 2015 All Day Deadline for council agenda.
Friday, June 5, 2015 All Day Notify recommended Applicant.
Tuesday, June 9, 2015 6:00 PM Council meeting - award of the bank depository contract. (VVC)
Wednesday, June 10, 2015 All Day Notify successful Applicant by letter.
Wednesday, June 10, 2015 All Day Notify all unsuccessful Applicants.
Wednesday, June 10, 2015 All Day Return bid bond checks to unsuccessful Applicants.
Friday, June 12, 2015 All Day Agreements to attorney for review.
Monday, June 15, 2015 All Day Begin implementation. (if necessary)
Thursday, June 25, 2015 All Day Review of agreements by attorney completed. (minimum week to ten days)
Tuesday, June 30, 2015 All Day Execute agreements.
Wednesday, July 1, 2015 All Day Return bid bond check of successful Applicant.
Tuesday, September 1, 2015 All Day New Bank Depository Contract period begins.
CITY OF GEORGETOWN, TX
BANK DEPOSITORY SERVICES PROJECT
2015 CALENDAR OF EVENTS
3/11/2015 (rev 3/18/15)
City of Georgetown, Texas
Government and Finance Advisory Board
March 25, 2015
SUBJECT:
Discussion of the City’s miscellaneous long-term commitments, reservations and other unfunded
liabilities. – Micki Rundell, Chief Financial Officer
ITEM SUMMARY:
At its February 24 meeting, the City Council requested that the General Government and Finance
(GGAF) Board review the City’s various long-term liabilities and other unfunded commitments.
This request was made in context of reviewing the potential allocation of YE 2014 General Fund
excess and other General Fund unallocated revenues.
The Council requested staff to develop the listing of these unfunded items for review and
discussion, with the goal to have GGAF make a recommendation to possibly allocate the
excess/unallocated General Fund revenues to various that reserves, that may, in the future offset
and or mitigate future expenses.
This list includes items from all fund types, including the utility funds, airport and other special
purpose type funds. Some of these items are funded while others are not. Many of these items are
future maintenance needs that are currently not addressed within the City’s budget process, or,
they are items that are financial in nature and are addressed through an outside entity such as the
Texas Municipal Retirement System (TMRS) who administers the City’s retirement plan. They
also include such items as Other Post Employee Benefits (OPEB) which is actuarially determined
based on the City’s employee health plan and determined by accounting standards.
The list includes a description of the item, the current status; as well as; any other information
about the unfunded liability and its future financial impacts.
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Micki Rundell, Chief Financial Officer
ATTACHMENTS:
Description Type
LT Unfunded Liabilities Backup Material
CITY OF GEORGETOWN
Long-term Commitments, Reservations and Other Unfunded Liabilities
General Government & Finance (GGAF) Review
March 25, 2015
Unfunded Liability &
Commitments Description Status
Financial Impact/Notes
Cemetery SRF
City owns several cemeteries including
IOOF and is obligated to maintain facilities,
primarily mowing. Currently no perpetual
fees to plot owners.
Current plot sales are used to offset
maintenance costs. In 2014/15, Council
elected to reserve $75,000 annually for
future costs associated with maintaining the
property. Currently $100,000 is set aside for
perpetual care.
Currently cemetery operations are self-
funded through plot sales of
approximately $50K per year. The
cemetery is managed through Parks
Administration.
Self-Insurance ISF
Established in 2014 to provide and manage
employee health insurance. Includes both
employee contributions (premiums) and
City contributions thru the annual budget.
Initial plan was to build reserve fund over 3
to 5 year period and draw from other City
sources if necessary. Current ISF fund
balance at 9/30/2014 is $221,000 with
approximately $90K designated as “reserve”.
Since YE14 only had 9 months, this reserve is
reviewed on a calendar year basis.
Costs are allocated thru the budget to the
ISF based on employees within each
fund. The ISF is overseen by HR and
Finance, with annual plan elements
determined by the Employee Benefit
Committee.
Unfunded Actuarial
Accrued Liability (UAAL)
Recognizes the outstanding liability for the
City’s employee retirement plan through
TMRS. The City contributes monthly to
fund the UAAL, based on an annual
percentage of payroll.
As of 9/30/14, the UAAL was $17.8M as is
considered 81.3% funded. The City’s Fiscal &
Budgetary Policy sets the funding target at
80%. The 2015 TMRS contribution rate is 12%
Actual % of payroll costs is recognized
within each fund.
Other Post Employee
Benefits (OPEB)
While the City has no obligation to offer
additional retiree benefits, retirees are
eligible to participate in the City’s health
insurance program. That ability represents
a subsidy that impacts health insurance
costs to the City.
This is an actuarial calculation based on
current and future employees on future City
health insurance costs, and has numerous
and complex factors in its calculation.
Retirees pay their own premiums, and thus
the liability is considered “pay as you go”.
With additional employees being added,
potential future retiree impacts increase.
Thus, the current net OPEB liability is
$627,030, up $167K from PY.
Retirees pay their monthly premiums to
the ISF who in turn processes their health
insurance claims.
Unfunded Liability &
Commitments Description Status
Financial Impact/Notes
Power Contract Credit
Reserve
Financial assurance for wholesale power
contracts
Established to provide assurance to
wholesale power contract providers as fiscal
surety against any potential risk. These funds
are held as collateral at JPMorgan and vary
depending on the volatility of market
conditions in regards to the future value of
power contracts. Because these are future
expenses, the liability is not recognized until
the contract is executed.
Currently, the PCCR at JPMorgan is $6.5M
and is recognized within the Electric Fund
Rate Stabilization
Reserve
Intended to mitigate potential rate impacts
due to increased fuel costs or other
external factors.
Used to defer or minimize the future cost
increases or other impacts related to power
costs. Monitored and adjusted monthly as
needed through the Power Cost Adjustment
(PCA)
The RSR is maintained within the Electric
Fund and is $4.5M as of 9/30/14.
Potentially, a similar reserve could be
developed for the Water Fund.
Compensated Absence
Future costs associated with benefits such
as vacation, and sick leave for City
employees
Compensated Absence is accrued annually to
each proprietary fund type on a GAAP basis
and accounted for on the balance sheet of
each fund. For governmental funds (and for
budgetary basis), the expense is recognized
when due and payable.
Total citywide Comp Absence is $5.1M, of
that $4.1M is considered unfunded in the
Gen Fund. Employee payouts are on a
“pay as you go” basis. $30K is budgeted
annually to offset the costs of employee
benefit payout.
Major Public Safety
Equipment
Items that are either purchased when
employee is hired, then possibly reassigned
to another employee. Examples include
SCBA, body armor, handguns, Fire turnout
equipment
Enables major equipment (below $5,000
capital threshold) to be replaced periodically
so that equipment is up to safety standards
and up to date and avoid 1-time major costs
to replace total number at once.
Beginning in 2014/15, $60,000 was
included in both Fire & PD budget for
Major Equipment Replacement. Each
department developed and manages
replacement schedule. This expense is in
the General Fund.
Americans with
Disabilities Act (ADA)
Compliance Needs
Federally mandated standards for
accessibility to public buildings, parks,
sidewalks.
Currently, City has completed the facilities
and sidewalk ADA assessment and are
currently working on the park component.
As facilities are built or repurposed,
meeting ADA compliance will be included
in Project Costs. Funding for program
expansion will be needed (General Fund
sources)
Unfunded Liability &
Commitments Description Status
Financial Impact/Notes
Park Equipment
Maintenance &
Replacement
Addresses useful life of equipment type
assets in parks, ensuring maintenance and
public safety
Includes equipment not directly in a Facility,
such as benches, trail lighting, playground
equipment, restrooms, and signage.
Over the past 5 years, funding for Park
Maintenance and Replacement has
increased. $150K included in 2014/15
budget. Staff has listed all assets &
developed replacement schedule funded
by the Gen Fund, soon to be on EAM.
EMS/Fire SRF
2014/15 Annual Budget assumed EMS
Program to be operationally active by June
2015 with revenues to offset operating and
capital costs. Operating deficit would be
funded internally until capital costs were
recovered in 5 years.
Due to delays in program implementation
and negotiations with Williamson County,
operations for the program are delayed until
at least 10/1/15.
Capital has been expended, including TRV
and equipment, 9 new paramedics hired.
Resulting in projected budgeted SFR
deficit of $474K for operational cost only.
Could be potential audit issue for 2015 if
not addressed.
Sidewalk Maintenance Funding plan for repairing and maintaining
existing City sidewalks.
Currently, new sidewalks are built as
development occurs. Repairs are funded as
needed or if funding is available, when major
roads are repaired. Useful life of a sidewalk is
estimated at 40 to 50 years
Currently, $75K is budgeted for sidewalk
repair. $10M is allocated in proposed
2015 Bond Proposition for new sidewalk
construction. Funding source is General
Fund.
Major Technology
Replacement
City uses ISF for capital replacement of
equipment. Major software (and related
implementation) is funded as needed
through the annual budget.
Current system replacements are funded
when actually purchased, with costs allocated
if applicable
CIS billing to be replaced in 2015 & 2016
funded by utility funds. FS system
funding should be allocated to all Funds.
GIS and Public Safety primarily funded by
Gen Fund
Radio Equipment
Replacement
Public Safety communication system that is
the Motorola monopoly for emergency
communications
Technology is moving toward a new system
Replacement radios are compatible with
newer technology. Final phase could be
$1M to be funded primarily by Gen Fun
for Police & Fire
Roadway bridges Maintenance of City-owned bridges Average life is 50 years, street maintenance
tax not used for bridge repair.
Verify listing/condition of existing City
owned bridges. Funding from general
fund sources or debt
Airport Maintenance
Fund on-going maintenance of the Airport
grounds, runways and taxi ways. Terminal
and Tower included in Facilities ISF
Current revenues from Airport only support
daily operations, without debt service or
major capital expenses.
Current review/update of revenues and busin
plan underway. Funding for 90/10 FFA grant
match may require CO Bonds funded by taxes
until Airport is self-sufficient. Current debt
service for Airport is $165K, with $710K bonds
outstanding + $800K to be issued in 2015.
City of Georgetown, Texas
Government and Finance Advisory Board
March 25, 2015
SUBJECT:
Consideration and possible recommendation on the potential uses of YE 2014 General Fund
excess and other unexpected funds for appropriation to the 2014/15 Annual Budget – Micki
Rundell, Chief Financial Officer
ITEM SUMMARY:
On February 24, the City Council reviewed and discussed the General Fund YE 2014 excess and
unallocated funds for potential appropriation in the current fiscal year. Council requested that the
allocation of these funds be reviewed and discussed by GGAF, particularly in context of the City’s
unfunded future liabilities and other commitments.
This item is the companion to the previous GGAF item that included the detail listing of these
obligations. Council has requested that GGAF recommend any potential allocation of the General
Fund YE 2014 excess fund, as well as, the net unallocated current year General Fund revenues
from the Western District be set aside to address any of these obligations.
The City has approximately $475,000 in unbudgeted excess funds from FY 2013/14 that resulted
from revenues being greater than projected, as well as, expenditure savings within the General
Fund departments. In addition, the City’s General Fund will have approximately $450,000 of net
Return on Investment (ROI) revenue from the Western District that has not been allocated in the
2014/15 Annual Budget.
The City’s Fiscal and Budgetary Policy outlines the uses for such funds as follows:
Use of Unanticipated and Unappropriated General Fund Balances - Within 90 days after fiscal
year end, staff will report the projected general fund balance to Council. In the event that
unexpected, unbudgeted amounts are determined to be available in the General Fund after year
end, these funds may be used for any of the following purposes, as approved by the City Council:
1. to fund capital projects;
2. to fund equipment purchases in lieu of issuing debt;
3. to reduce outstanding city debt, including bonded indebtedness and unfunded pension
liabilities;
4. to fund contingent liabilities such as the benefit payout reserve, cemetery trust fund, and similar
obligations of the city;
5. to take other steps to reduce property tax rates or mitigate any future increases;
6. to hold those funds in reserve for future commitments or contingencies that may be pending,
and/or
7. to fund an economic uncertainty reserve of up to three (3) percent of annual General Fund
operating expenditures.
If not allocated in the process outlined above, the funds would remain within the General Fund
balance and be eligible for appropriation in the 2015/16 Annual Budget.
GGAF’s recommendation regarding the allocation of these funds, will be presented for
consideration by City Council on April 10, and could then be allocated through a budget
amendment in May.
See previous unfunded liabilities and commitments listing for information included on attachment.
FINANCIAL IMPACT:
NA
SUBMITTED BY:
Micki Rundell, Chief Financial Officer
City of Georgetown, Texas
Government and Finance Advisory Board
March 25, 2015
SUBJECT:
Review of the City’s Fiscal & Budgetary Policy and discussion of possible amendments for
2015/16. – Micki Rundell, Chief Financial Officer
ITEM SUMMARY:
The purpose of the Fiscal and Budgetary Policy (Policy) is to provide the framework for financial
operations of the City and to ensure prudent stewardship, financial planning and accountability. As
part of the Annual Budget process, the City Council reviews, amends if necessary and adopts the
Policy by ordinance each year. Prior to any Council action, the General Government and Finance
Advisory Board (GGAF) will review the Policy and make recommendations for any amendments
or clarifications that may be needed.
Each year the Policy is administratively amended to recognize date and amount changes within the
text; and to address any new financial or regulatory requirement that may need to be added. Other
amendments may be recommended in order to clarify wording or to further granulate a particular
Policy Area.
Potential amendments for consideration and discussion by GGAF are notated by page numbers
that included in the red-line draft document:
Page 8 – Codifies the utility standardized “cost of service” methodologies for establishing
the City’s utility rates, including Water, Wastewater, Electric and Stormwater Drainage.
These methodologies were adopted by the GUS Board as the basis for the current City
utility rates. This addition only codifies that action for future rate analysis.
Page 9 – The language about the Power Contract Credit Reserve and the Rate Stabilization
Reserve have been relocated to Page 10 “Long-term Liability Reserves”.
Page 9 – A major portion of the City’s General Fund Revenue is through internal cost
recovery. This amendment clarifies the “Internal Cost Recovery Fees” as a revenue source.
No other changes were made to this section other than adding this title to the
paragraph.
Page 10 – New section has been added to recognize the City’s various Long-Term Liability
Reserves. This includes both Proprietary and Governmental fund types. The Power Contract
Credit Reserve and Rate Stabilization Reserve are now included in the proprietary section
along with the Self-Insurance Reserve. Additionally, under the Governmental fund type, the
Cemetery Reserve and a non-ISF Capital Maintenance Reserve are also included.
Both of the governmental reserves are new specifically designated reservations within
this Policy
Page 13 – Updated the chart that summarizes the procurement approval requirements to
mirror state law, and clarified that all purchases must be approved according to preapproved
limits within each department and as directed and approved by the City Manager.
Page 29 – A note was added to cross reference the use of excess minimum reserves to
Section IV. L. Use of Unanticipated and Unappropriated General Fund Balances.
Page 29 – Language regarding aged receivables has been deleted in order to be compliant
with “Red Flag Rules” for customer account management.
Any other recommendations or amendments can be made at the direction of the GGAF
Board.
All other changes relate to updates in fiscal years and contingency amounts. Grammatical changes
have all been made where necessary.
Once recommendations for any Policy amendments have been finalized, the revised Fiscal and
Budgetary Policy will be forwarded to the City Council for review. Currently, that review is
scheduled April 10, 2015.
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Micki Rundell, Chief Financial Officer
ATTACHMENTS:
Description Type
F&B Overview Presentation Backup Material
F&B Draft Redline Cover Memo
1
FISCAL & BUDGETARY
POLICY OVERVIEW
2015 Preliminary Policy Discussion
March 25, 2015
Agenda
• Historical overview
• Policy “Compliance”
• Overview & Summary of Policy Areas
• Areas for potential amendments for 2015/16
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Historical Overview
• Fiscal and Budgetary Policy adopted 2001/02
– Updated & revised all financial policies/practices
– Based on recommended “BEST PRACTICES” by
Government Finance Officers Association (GFOA)
• Included plan to eliminate “WTTB”
– Up to 33% of Gen Fund operations funded by
transfer from Utility Funds
– “Scenario H” - fully implemented in 2003/04
• Review & update annually as part of the
budget process
Policy Compliance
SUSTAINABLE FUNDING SOURCES
MUST FUND ON-GOING EXPENSES
Excess balances from previous fiscal years
shall be re-appropriated through the next
budget process or used to reduce
outstanding debt obligations or both
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Policy Compliance
Requires 1.5 times coverage ratio for all
funds with debt service requirements
• Excess operating revenue net of operating
expenses must exceed annual debt payment
by 150% of debt payment
• Utility funds required by bond covenants
• Applies to GO debt repaid through self-
supporting fees
– GTEC, Stormwater & Airport Funds
– Electric & Water Services Funds
Policy Purpose
• Provides “fiscal discipline”
• Achieve and maintain long-term stable
and positive financial condition
• Provide guidelines for day-to day
planning and operations of City’s
financial management
• Also applies to both GTEC & GEDCO
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Outlines Operating Budget
• Links to City’s comprehensive plan and 5
Focus Areas
• Formalizes budget preparation and adoption
• Defines “Balanced Budget”
• Requires quarterly reports to Council
• Assigns control and accountability of funds
• Addresses various Contingency funds
Use of Unanticipated & Unappropriated
General Fund Balances
• After FYE, excess balances identified &
Council directs use…
– to fund capital projects;
– to fund equipment in lieu of issuing debt;
– to reduce outstanding city debt, including pension
liabilities;
– to fund other contingent liabilities;
– to take further steps to mitigate property taxes;
– to hold in reserve for future or pending
contingencies; and/or
– to fund an economic uncertainty reserve.
5
Revenue Management
• Defines “sustainable” revenue
–Revenue that is consistently available year to
year
• Budgets Property Tax at effective M&O
rate + needed I&S rate
–Budgeted increases only relate to debt service
–M&O increases determined by Council
• Utility Rates reviewed annually
–Detail regarding ‘COST OF SERVICE”
methodology for setting utility rates
Internal Cost Recovery
• Administrative allocations reviewed annually
by external auditors
– Recognize “true cost of service” at departmental
level
• Determines “Return on Investment” and
“Franchise Fee” from utility funds to General
Fund as ownership dividend
– Based as % of operating revenues for Water,
Wastewater, Stormwater Drainage customers
– Based on equivalent kWh for Electric customers
• Equates to 10% operating revenues and is included in
the rate methodology
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Expenditure Policies
• Authorizes point of control for appropriations at
the department level
– City Manager approves transfers between
department within the same fund
• Transfers between funds require Council authorization
• Budgets personnel costs at 100%
– Includes Vacancy Factor = 1% total General Fund
salaries
• Personnel count determined in budget
• Strategic Partnerships for Community Services -
funding level set at $5.00 per capita
• Retirement plan management included
Purchasing Policy - follows state law
All purchases must be approved according to
preapproved limits within each department
As directed and approved by the City Manager.
•
Dollar Limits: Procurements: Requirements:
Under
$3,000
Under the small
purchase limit
No competitive bids and City credit
cards may be used.
$3,000
up to
$50,000
Within informal bid
limit
A minimum of three informal
competitive bids required unless
exempted: HUB requirements apply in
accordance with state law.
$50,000
and above
In excess of the
informal bid limit
Formal solicitations, which includes
public notices, required unless
exempted. Advisory board review and
recommendation may be
required. Council approval required.
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Budget Contingency Plan
• Establishes guidelines for managing
revenue shortfalls
– Immediate actions include freezing hiring of
new positions
– Delay all “non-essential” spending
– City Manager reports conditions to Council
• Determines use of “Contingency Reserves”
– Outlines replenishment if used
– Service level reductions addressed by Council
including workforce reductions
Capital Improvement Program
• Prepare / update 5-year CIP schedule
–Includes estimated operational impacts
–Requires various Advisory Board approvals
prior to Council adoption
• Projects must be appropriated within
CIP Budget
• Funding must be identified prior to CIP
contract approval
– Requires all CIP contracts > than $50,000 be
approved by the appropriate Advisory Board
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Capital Maintenance
• Acknowledges deferred maintenance increases
future capital costs
• Includes PMIS standards for street maintenance
for GASB 34 Modified Approach
• Directs that on-going capital maintenance is
included in departmental operating budget
• Sets up Internal Service Funds to “lease”
equipment back to departments
• Require City Council approval for disposal of
Surplus Property items with expected sales value
in excess of $10,000
Financial Management
• Accounting & Financial Reporting
– Recognizes role of External Auditor to annually
audit all City accounts
– Requires preparation of the Comprehensive
Annual Financial Report (CAFR)
• Investment Policy
– Reviewed annually and conforms to all legal
requirements
• “Public Funds Investment Act”
• Requires quarterly reports to City Council
• Establishes Internal Control process
• Fixed Assets
– Sets capitalization criteria at $5,000
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Debt Management
• Requires annual debt condition report
• Outlines use of debt funding to include:
– General Obligation Bonds
– Revenue Bonds
– Certificates of Obligation
– Self-supporting debt
– Internal borrowings
– Other short-term borrowing
• Method of sale and debt structuring
• Requires post issuance compliance
• Outlines use of “Bond Reimbursement
Resolutions” for cash management
Financial Conditions, Reserves &
Stability Ratios
• City will maintain a 1 to 1 operating
coverage
• Requires minimum 75 days citywide
operating “contingency” reserves
– Allocated across City funds
• Includes General Fund reserves that equals
90 days of GF operating expenditures
• Designates specific financial indicators to
track for trend analysis
10
Staffing and Compensation
• Commitment to provide adequate staffing for
efficient operations
• Establishes Competitive Employee
Compensation Maintenance Plan that
includes:
– Cost of Living Adjustment (COLA)
– Pay Scale Review
– Pay for Performance
• Establishes City’s Employee Health Self-
Insurance Fund to manage employee health
care
2015/16 Proposed Revisions
• Codify utility cost of service rate methodology
• Designate “Internal Cost Recovery Fees”
• Add “Long-term Liabilities” section
– Relocate “reserve” language to this section
•Add Cemetery Reserve & Non-ISF Capital Maintenance
Reserve
• Change wording to be compliant with “Red
Flag Rules” regarding aged receivables
– Management of customer account information
•Any other recommendations are directed
1
City of Georgetown
Fiscal and Budgetary Policy
DRAFT – General Government & Finance (GGAF) Review
March 25, 2015
I. PURPOSE
The City of Georgetown is committed to financial management through integrity, prudent
stewardship, planning, accountability, full disclosure and communication. The broad
purpose of the Fiscal and Budgetary Policies is to enable the City and its related
component units, including the Georgetown Transportation Enhancement Corporation
(GTEC) and the Georgetown Economic Development Corporation (GEDCO) to achieve
and maintain a long-term stable and positive financial condition, and provide guidelines
for the day-to-day planning and operations of the City’s financial affairs.
Policy scope generally spans areas of accounting and financial reporting, internal
controls, both operating and capital budgeting, revenue management, investment and
asset management, debt management and forecasting. This is done in order to:
A. Demonstrate to the citizens of Georgetown, the investment community, and the bond
rating agencies that the City is committed to a strong fiscal operation;
B. Provide precedents for future policy-makers and financial managers on common
financial goals and strategies;
C. Fairly present and fully disclose the financial position of the City in conformity to
generally accepted accounting principles (GAAP); and
D. Demonstrate compliance with finance-related legal and contractual issues in
accordance with the Texas Local Government Code and other legal mandates.
These policies will be reviewed and updated annually as part of the budget preparation
process.
II. FUND STRUCTURE AND BASIS OF BUDGETING
The budgeted funds for the City of Georgetown include:
Governmental Funds: General Fund which accounts for all financial resources
except those required to be accounted for in another fund, and
include basic governmental services, such as Street
Maintenance, Planning and Development, Police, Fire and
Parks, as well as, solid waste management.
Special Revenue Funds (SRF) account for specific revenues
that are legally restricted for specified purposes. The City
2
currently budgets ____ SRF Funds and includes Tourism,
Parkland Dedication, Library Donations, Animal Services
Donations, and Street Maintenance Sales Tax.
Debt Service Fund is used to account for the payment of
general long-term debt principal and interest.
Capital Project Funds are used to account for the acquisition
or construction of major capital facilities other than those
financed by enterprise activities.
Proprietary Funds: Internal Service Funds account for good or services provided
by one internal department to another. The City uses this
system to recognize cost for fleet replacement and
maintenance, facility maintenance,and computer replacement
and maintenance and employee health insurance costs.
Enterprise Funds include the City’s “business like” activities
including all the utility funds and the airport.
Basis of Accounting and Basis of Budgeting
The City’s accounts and budgets for all Governmental Funds using the modified
accrual basis of accounting. This basis means that revenue is recognized in the
accounting period in which it becomes available and measurable, while expenditures are
recognized in the accounting period in which they are incurred. Because the
appropriated budget is used as the basis for control and comparison of budgeted and
actual amounts, the basis for preparing the budget is the same as the basis of
accounting. Exceptions to the modified accrual basis of accounting include:
• Encumbrances, which are treated as expenditures in the year they are encumbered,
not when expended.
• Grants, which are considered revenue when awarded, not received.
• Principal and interest on long-term debt, which are recognized when paid.
General government funds include the general fund, special revenue funds, debt service
fund and general capital project funds.
Proprietary Funds, which include the enterprise and internal service funds are
accounted and budgeted using the full-accrual basis of accounting. Under this method,
revenues are recognized when they are earned and measurable, while expenses are
recognized when they are incurred regardless of timing or related cash flows. The basis
for preparing the budget is the same as the basis of accounting except for principal
payments on long-term debt and capital outlay which are treated as budgeted expenses.
Exceptions include:
• Depreciation which is not budgeted
• Non-budgeted accruals such as compensated absences
3
III. FUND BALANCE POLICIES
The City’s Fund Balance is the accumulated difference between assets and liabilities
within governmental funds, and it allows the City to meet its contractual obligations, fund
disaster or emergency costs, provide cash flow for timing purposes and fund non-recurring
expenses appropriated by City Council. This policy establishes limitations on the
purposes for which Fund Balances can be used in accordance with Governmental
Accounting Standards Board (GASB) Statement Number 54.
The City’s Fund Balance will report up to five components:
A. Non-spendable Fund Balance – includes inherently non-spendable assets that will
never convert to cash, as well as, assets that will not convert to cash soon enough to
affect the current financial period. Assets included in this category are prepaid items,
inventory and non-financial assets held for resale.
B. Restricted Fund Balance – represents the portion of fund balance that is subject to
legal restrictions, such as grants or hotel/motel tax and bond proceeds.
C. Committed Fund Balance – describes the portion of fund balance that is constrained
by limitations that the City Council has imposed upon itself, and remains binding
unless the City Council removes the limitation.
D. Assigned Fund Balance – is that portion of fund balance that reflects the City’s
intended use of the resource and is established in a less formal method by the City
for that designated purpose.
E. Unassigned Fund Balance – represents funds that cannot be property classified in
one of the other four categories.
IV. OPERATING BUDGET
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.
A. Comprehensive Plan – The 2030 Plan is written from a perspective of some twenty
years into the future. It expresses what we envision and desire our community to be
in the year 2030, and it ref lects on all that we have accomplished since we launched
the revision of our Comprehensive Plan in 2006. The Plan utilizes a Vision
Statement to guide the desired outcomes for the community.
B. Council Vision – The Council has further defined the City’s Comprehensive Plan by
defining its vision to become the City of Excellence. This vision is to be
accomplished through five (5) focus areas. These focus areas become the City’s
strategic goals through development and implementation of defined Business Plans
for each focus area.
1. Economic Development
2. Signature Destination
3. Public Safety
4. Transportation
5. Utility Services
4
C. Five-Year City of Excellence Business Plan – A “dashboard” plan will be
developed that links the 2030 Plan with the City Council’s City of Excellence vision
and five focus areas (strategic goals) that further the implementation of the Vision.
From those strategic goals an implementation plan for each of the 5 focus areas will
be created.
1. A Five-Year Financial Forecast will be created and updated annually that will
identify potential tax impacts, rate adjustments and other factors that will impede
the implementation of the City of Excellence Business Plan.
2. Year-One of this Business Plan is the basis for the Annual Budget.
D. Preparation – 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 appr opriations
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.
1. Proposed Budget – A proposed budget shall be prepared by the City Manager
with participation of all of the City’s Division Directors within the provision of the
Charter and the 2030 Plan and the City of Excellence Vision.
a. The budget shall include four basic segments for review and evaluation:
• Revenues
• Personnel Costs
• Operations and Maintenance
• Capital and other non-project costs
b. The budget review process will include City Council participation in the
development of each segment and allow for citizen participation in the
process, and will allow for sufficient time to address policy and fiscal issues
by the City Council.
c. A copy of the proposed budget will be filed with the City Secretary when it is
submitted to the City Council. A copy will also be available at the
Georgetown Public Library for citizen review.
2. Adoption – Upon finalization of the budget appropriations, the City Council will
hold a public hearing, and subsequently adopt by Ordinance the final budget as
amended. The budget will be effective for the fiscal year beginning October 1st.
The Annual Budget document will be submitted annually to the Government
Finance Officers Association (GFOA) for evaluation and consideration for the
Distinguished Budget Presentation Award.
5
E. Balanced Budget – The goal of the City is to adopt and maintain a balanced
operating budget using sustainable funding sources that are expected to continue to
be available in subsequent fiscal years. Excess balances in operating funds from
previous fiscal years shall remain in the fund in which they were appropriated until
either such excess balances are proposed and adopted pursuant to Section IV. D. of
the thisthis policy; until they are used to reduce outstanding debt obligations of the
City; or both.
The Charter (Section 6.04) requires that an operating deficit created in any fiscal
year shall be paid off and discharged during the following year. In practice, deficit
has been interpreted to mean City funds as a whole. The City Council may choose
from time to time to allow individual funds to have a negative balance as long as
Operating Reserve requirements for the City as a whole are maintained.
F. Planning – The budget process will be coordinated so that major policy issues are
identified prior to the budget approval date. This will allow City Council adequate
time for consideration of appropriate decisions and analysis of financial impacts.
G. Reporting – Summary financial reports will be presented to the City Council
quarterly. These reports will be in a format appropriate to enable the City Council to
understand the overall budget and financial status.
H. Control and Accountability – Each Division Director, appointed by the City
Manager, will be responsible for the administration of his/her departmental budget.
This includes accomplishing the Goals and Objectives adopted as part of the budget
and monitoring each department budget for compliance with spending limitations.
Division Directors may transfer funds up to $20,000 within the operations and
maintenance or capital line items within a departmental budget category without
additional approval. All transfers within the Personnel line items require approval of
the Chief Financial Officer and City Manager. All other transfers of appropriation or
budget amendments require either City Council or City Manager approval as outlined
in Section IV.I and Section VI.B.4.
I. Budget Amendments – The Charter (Section 6.04) provides a method to amend 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 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 following criteria will be used in evaluation of budget amendments:
• Is the request necessary?
• Why was the item not budgeted in the normal budget process?
• Why can't a transfer be done within the Division to remedy the condition?
The Chief Financial Officer must certify availability of revenues or funding sources
prior to adoption.
6
The City will amend the budget at year end, if needed, for revenue based
expenditures that exceeded budgeted amounts due to increased revenue and
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.
J. Contingency Appropriations – The budget may include contingency appropriations
within designated operating department budgets. These funds are used to offset
expenditures for unexpected maintenance or other unanticipated expenses that
might occur during the year. Currently, the City maintains contingency appropriations
for insurance deductibles, unexpected legal expenses and equipment repairs.
K. Council Discretionary Account – The budget may contain appropriated funds to be
used at the discretion of the City Council. Actual expenditure of these funds is
specifically approved by the City Council on an item by item basis. The Council
Discretionary Account for 2014/152015/ is16 is $10,000 included in the General
Fund.
L. Use of Unanticipated and Unappropriated General Fund Balances - Within 90
days after fiscal year end, staff will report the projected general fund balance to
Council. In the event that unexpected, unbudgeted amounts are determined to be
available in the General Fund after year end, these funds may be used for any of the
following purposes, as approved by the City Council:
1. to fund capital projects;
2. to fund equipment purchases in lieu of issuing debt;
3. to reduce outstanding city debt, including bonded indebtedness and unfunded
pension liabilities;
4. to fund contingent liabilities such as the benefit payout reserve, cemetery trust
fund, and similar obligations of the city;
5. to take other steps to reduce property tax rates or mitigate any future increases;
6. to hold those funds in reserve for future commitments or contingencies that may
be pending, and/or
7. to fund an economic uncertainty reserve of up to three (3) percent of annual
General Fund operating expenditures.
V. REVENUE MANAGEMENT
A. Characteristics – The City will strive for the following optimum characteristics in its
revenue system:
1. Simplicity – The City, where possible and without sacrificing accuracy, will strive
to keep the revenue system simple in order to reduce compliance costs for the
taxpayer or service recipient.
7
2. Certainty – A knowledge and understanding of revenue sources increases the
reliability of the revenue system. The City will understand its revenue sources
and enact consistent collection policies to provide assurances that the revenue
base will materialize according to budget.
3. Equity – The City shall make every effort to maintain equity in its revenue
system; i.e., the City should seek to minimize or eliminate all forms of
subsidization between entities, funds, services, utilities, and customer classes,
and ensure an on-going return on investment for the City.
a. The City will make every effort to recognize the benefit that City tax payers
contribute to City programs and services.
b. The annual Parks and Recreation residential membership rates are
established at 75% of non-residential rates plus or minus 10% at the
discretion of the Parks and Recreation Director in keeping with the targeted
market cost recovery.
4. Revenue Adequacy – The City should require there be a balance in the revenue
system; i.e., the revenue base will have the characteristics of fairness and
neutrality as it applies to cost of service, willingness to pay, and ability to pay.
Overall Operational Cost Recovery for Parks and Recreation for the Recreation
and Tennis Centers is targeted to be between 50 – 60%, with some variance in
individual programs.
5. Realistic and Conservative Estimates - Revenues will be estimated realistically,
and conservatively, taking into account the volatile nature of various revenue
streams.
6. Administration – The benefits of a revenue source should exceed the cost of
levying and collecting that revenue.
7. Diversification and Stability – A diversified revenue system with a stable source
of income shall be maintained. This will help avoid instabilities in two particular
revenue sources due to factors such as fluctuations in the economy and
variations in the weather.
B. Other Considerations – The following considerations and issues will guide the City
in its revenue policies concerning specific sources of funds:
1. Cost/Benefit of Incentives for Economic Development – The City will use due
caution in the analysis of any incentives that are used to encourage
development. A cost/benefit (fiscal impact) analysis will be performed as part of
the evaluation.
2. Non-Recurring Revenues – One-time or non-recurring revenues should not be
used to finance current ongoing operations.
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3. Sustainable Revenues – “Sustainable" means revenue that is consistently
available year after year, and includes revenues realized subsequent to adopted
projections.
4. Property Tax Revenues – All real and business personal property located within
the City will be valued at 100% of the fair market value for any given year based
on the current appraisal supplied by the Williamson Central Appraisal District.
Conservative budgeted revenue estimates result in a projected ninety-eight
percent (98%) budgeted collection rate for current ad valorem taxes. Two
percent (2%) of the current ad valorem taxes will be projected as the budget for
delinquent ad valorem tax collection. For budgeting purposes, the City will
forecast the proposed property tax rate using the effective maintenance &
operations (M&O) rate plus the interest & sinking (I&S) rate needed to fund tax
supported debt service. Increases to the M&O rate will be deliberated and
determined by the City Council. Proposed tax revenue will be budgeted at a 98%
collection rate.
5. Interest Income – Interest earned from investments will be distributed to the
funds in accordance with the equity balance of the fund from which the monies
were provided to be invested.
6. User-Based Fees and Service Charges – For services associated with a user fee
or charge, the direct or indirect costs of that service will be offset by a fee where
possible. The City will review fees and charges no less than once every two
years to ensure that fees provide adequate coverage for the cost of services.
The City Council will determine how much of the cost of a service should be
recovered by fees and charges.
7. Enterprise Fund Rates – The City will review and adopt utility rates as needed to
generate revenues required to fully cover operating expenses, meet the legal
requirements of all applicable bond covenants, and provide for an adequate level
of working capital. Utility rates will be reviewed annually as part of the budget
process. A rate study will be conducted every 3 years to review rate
methodology and ensure revenues will meet future needs. All utility rates will be
based on standardized “cost of service” methodologies,
• Water Rates will recognize the at least 75% of the “fixed” cost of service,
including debt payments and ROI costs, within the monthly “base charge”
determined by meter size. “Volumetric charge” will recognize the balance
of fixed costs not included in the base rate, plus all variable costs
associated with procuring and treating water.
.
• Wastewater Rates are “flat and equal” for all residential customers based
on the cost of providing services. Commercial customer rates are varied
depending on size and specifications of each commercial customer.
• Electric Rates include 100% of fixed costs within the base rate, with all
variable costs included in the kWh rate.
• Stormwater Drainage Fees are based a mathematical calculation based
on impervious cover and applied in compliance with State Law.
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A restricted Power Contract Credit Reserve has been established to provide
financial assurances to the City’s wholesale power contract providers as fiscal
surety against any potential risk on the City’s behalf and will be maintained as
“restricted” fund balance on the City’s financial statements.
A Rate Stabilization Reserve (RSR) Account has been established in the
Electric Fund to offset and mitigate potential impacts to customer rates due to
increased fuel costs or other external factors that may negatively impact Electric
Rates. The Rate Stabilization Reserve (RSR) may provide funding for:
• Deferring or minimizing the rate impact of future cost increases
• Costs associated with providing additional power supply
• Filling contractual obligations
• Balancing of annual power costs
RSR funds will be monitored monthly to ensure the electric rate is being
managed per the Policy. Increases to RSR are made through the Power Cost
Adjustment rate as determined by the fund, at the recommendation of the
General Manager for Utilities.
8. Internal Cost Recovery Fees - Additionally, enterprise activity rates will include
transfers to and receive credits from other funds as follows:
a. General and Administrative Charges – Administrative costs should be
charged to all funds for services of general overhead, such as administration,
finance, customer billing, legal and other costs as appropriate. These
charges will be determined through an indirect cost allocation following
accepted practices and procedures and reviewed annually by the City’s
external auditors.
b. Payment for Return on Investment – The intent of this transfer is to provide
a benefit to the citizens for the ownership of the various utility operations they
own. For all utilities except for Electric:
• In-Lieu-of-Franchise-Fee. This transfer, currently 3% of operating
revenues generated inside the City, is consistent with the franchise rates
charged to investor owned utilities franchised to operate within the City.
• Return on Investment. The return on investment (ROI) transfer for In-
City utility customers is currently calculated at 7% of operating revenues
for all utilities. ROI for water and sewer customers outside the City is
10% of operating revenues. . There is no ROI calculated on solid waste
revenues.
The Franchise and Return on Investment for the Electric Utility is based
on kWh sold. For customers inside the City, a $0.0102 charge per kWh,
equivalent to the 3% and 7% paid by other utility customers, will be
included in the cost per kWh. For customers outside the City, a
$0.007253 charge per kWh, equivalent to the 7% ROI paid by utilities, will
be included in the cost.
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9. Intergovernmental Revenues – All potential grants will be examined for matching
requirements and must be approved by the City Council prior to making
application of the grant. It must be clearly understood that operational
requirements (on-going costs) set up as a result of a grant program could be
discontinued once the term and conditions of the program have been completed.
10. Revenue Monitoring – Revenues as they are received will be regularly compared
to budgeted revenues and variances will be investigated, and any abnormalities
will be included in the quarterly report to the City Council.
VI. LONG-TERM LIABILITY RESERVES
The City of Georgetown recognizes certain long-term unfunded commitments and
contingencies that will require substantial funding at some point in the future. The City is
committed to addressing these commitments in a fiscally prudent method by
acknowledging their future financial impacts and developing strategies and designated
reserve funds to mitigate those future impacts.
A. Proprietary Funds – These commitments are related to revenue volatility and
potential risk in future payments and are designated within the utility and self-
insurance funds.
1. A restricted Power Contract Credit Reserve has been established to provide
financial assurances to the City’s wholesale power contract providers as fiscal
surety against any potential risk on the City’s behalf and will be maintained as
“restricted” fund balance on the City’s financial statements.
2. A Rate Stabilization Reserve (RSR) Account has been established in the
Electric Fund to offset and mitigate potential impacts to customer rates due to
increased fuel costs or other external factors that may negatively impact Electric
Rates. The Rate Stabilization Reserve (RSR) may provide funding for:
• Deferring or minimizing the rate impact of future cost increases
• Costs associated with providing additional power supply
• Filling contractual obligations
• Balancing of annual power costs
RSR funds will be monitored monthly to ensure the electric rate is being
managed per the Policy. Increases to RSR are made through the Power Cost
Adjustment rate as determined by the fund, at the recommendation of the
General Manager for Utilities.
3. Self-Insurance Reserve will be included and maintained within the Employee
Self-Insurance Internal Service Fund to provide stabilization for employee health
insurance premiums. The amount of the reserve will be determined by the
actuarially determined “maximum” amount risk related to the potential claims to
the plan in one year. Initially, the reserve is targeted to be $1,000,000 by fiscal
year 2017/18.
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B. Governmental Funds - These long-term liabilities are general governmental
obligations of the City that could create expenditures in future fiscal years, and thus
potentially stain future General Fund resources, including property taxes.
1. Cemetery Reserve will be established for the purpose of funding continued
maintenance for City owned cemetery properties.
2. Non-ISF Capital Maintenance Reserve will be created to fund items not
included within Internal Service Fund maintenance and replacement schedule to
include items such as sidewalks, bridges and other unfunded liabilities as
needed.
VI.VII. EXPENDITURE POLICIES
A. Appropriations – The point of budget control is at the department level budget for
all funds. The Charter (Section 6.03) provides that any transfer of appropriation
between funds must be approved by the City Council and that the City Manager,
without City Council approval, is authorized to transfer appropriations among
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.
B. Personnel Costs – Costs related to salaries and benefits are budgeted at 100%
total costs, assuming open positions are filled throughout the fiscal year. New
positions that are added during the budget process may have staggered hire dates
with appropriate costs reflected in the budget.
1. Vacancy Factor – General Fund appropriations will include a vacancy factor
equal to 1% of total General Fund salaries and related benefits to offset salary
savings within the budget. The vacancy factor will be budgeted as a negative
expense within the General Government Department of the General Fund. For
2014/152015/16 the Vacancy Factor equals $ ______. This factor will be
reduced throughout the year as vacant positions are recognized within the
department budget.
2. Benefit Payout Reserve - The City will establish a benefit payout reserve equal to
15% of the accrued benefit liability for employees who are currently meet eligible
to retirement. Only terminating employee benefit expenses may be paid from this
reserve. This reserve shall be funded as an offset to the vacancy factor. For
2014/15 2015/16$ ______is budgeted for this reserve.
3. Position Control – The annual budget includes a set number of positions within
departments when approved and adopted by City Council. Additional positions
cannot be added without approval of the City Council. The City Manager may
approve the transfer of authorized positions between departments if funds are
available within the department.
4. Use of Excess Salary Savings – Departmental savings generated due to open
positions or other salary line item savings cannot be spent by the department
unless previously approved by the City Manager and validated by Finance as
“excess funds”.
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C. Special Purpose Funding – In order to support community assistance programs,
the City designates specific funding for special purposes, including Social Services,
Children’s Programs, and Public Art. The City reserves the ability to cap this special
purpose funding when necessitated by budget contingency or compliance issues,
such as revenue shortfalls, or other reasons as determined by City Council.
1. Strategic Partnerships for Community Services. – The City of Georgetown values
partnerships with organizations that are committed to addressing our
communities greatest public challenges and has identified key priorities in the
following areas:
• Public Safety
• Transportation
• Housing
• Parks & Recreation
• Veteran Services, and
• Safety Net
The City has targeted funding for these programs to be $5.00 per capita, which
may be adjusted to offset the effects of general inflation based upon CPI. If
previous funding levels are higher than the targeted amount, and to avoid
significant reductions in levels of funding, the City Council shall seek to attain this
target chiefly through population growth. These funds will be allocated and paid
according to the City Council’s guidelines for such programs.
The funding level for 2014/15 2015/16 is $400,049 for these type of initiatives
and is the same as in the previous year.
2. Public Art Funding - The City will annually allocate funding for Public Art on a
year to year basis depending on the availability of funds in an amount to be
determined at the discretion of the City Manager. Funding priority will be given to
projects that include a matching donation, including contributions from local
organizations and sponsors. Any unspent funds will accumulate and be
reallocated in the following budget year. Disbursement of these funds will be
determined by the City Council at the recommendation of the City’s Arts &
Culture Advisory Board.
Every effort will be made to include public art funding in future City facilities
whose primary purpose is for public use. These projects will include a
reasonable allowance for public art that fits the scope and purpose of the building
so long that it does not negatively impact the project cost beyond the original
budget. In the event there is cost savings in the construction of City Facilities,
the City Council may consider utilizing that savings on the purchase of public art
for the facility.
D. Purchasing – The City will maintain and regularly review a written Purchasing
Policy. All City purchases of goods or services will be made in accordance with the
City’s current Purchasing Policy and with State law.
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The following shows a summary of approval requirements for purchases.
Dollar Limits: Procurements: Requirements:
Under
$3,000
Under the small purchase
limit
No competitive bids and City credit
cards may be used.
$3,000
up to
$50,000
Within informal bid limit
A minimum of three informal
competitive bids required unless
exempted: HUB requirements apply in
accordance with state law.
$25,000
and above
Within City Manager’s
approval
In addition to the requirements above,
the City Manager must approve the
purchase.
$50,000
and above
In excess of the informal bid
limit
Formal solicitations, which includes
public notices, required unless
exempted. Advisory board review and
recommendation may be required.
Council approval required.
Dollar Limits: Procurements: Requirements:
Under
$3,000
Under the small purchase
limit
No competitive bids and City credit
cards may be used.
$3,000
up to
$50,000
Within informal bid limit A minimum of three informal
competitive bids required unless
exempted: HUB requirements apply in
accordance with state law.
$50,000
and above
In excess of the informal bid
limit
Formal solicitations, which includes
public notices, required unless
exempted. Advisory board review and
recommendation may be
required. Council approval required.
In addition to the above, all purchases must be approved accordingly to preapproved
limits within each department as directed and approved by the City Manager.
E. Contracts and Change Orders - Contracts and related change orders must follow
the City Purchasing Policies and State Law. In accordance with State Law, change
orders are limited to 25% of the total contract amount. Change orders greater than
$50,000 require the same advisory board review and Council approvals as the
original contracts.
F. Prompt Payment – All invoices approved for payment by the proper City authorities
shall be paid within thirty (30) calendar days of receipt of goods or services or invoice
date, whichever is later in accordance with State law. The City will take advantage of
all purchase discounts, when possible.
G. Risk Management – The City will pursue every opportunity to provide for the
Public’s and City employees’ safety and to manage its risks. The goal shall be to
minimize the risk of loss of resources through liability claims with an emphasis on
safety programs.
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H. Retirement Benefits – Proposals to revise benefits administered and provided by
the Texas Municipal Retirement System shall include a written description, and,
detailed and summary numerical assessments of the changes that would result from
the proposed benefit revision.
1. The numerical assessments shall include the following:
a. The estimated change to the TMRS contribution rate that would result from
the proposed change in benefits, expressed as a percentage of employee
pay and as an annual dollar amount to the General Fund and to each City
fund.
b. The estimated change to the City’s unfunded pension liability, expressed as
a dollar amount.
c. The estimated change to the City’s actuarial funding ratio.
2. The description and numerical assessments must be provided to the City Council
at least 72 hours prior to consideration and approval, and must be read aloud to
the Council prior to Council consideration.
3. The estimated changes to the City’s contribution rate and the unfunded pension
liability presented pursuant to the section must be based on information provided
by the TMRS actuary or by professional actuary authorized by the TMRS to
provide such information.
4. Proposals to revise TMRS benefits must be voted on individually as part of the
City Council’s legislative agenda.
5. The City has established 80% as the minimum funding goal for the City’s
unfunded pension liability. The City’s funded pension liability is 81.3% as of
December 31, 2013, as disclosed by TMRS. The City’s ultimate goal is 100%,
but will be achieved reasonably over time.
6. The City may elect to make an annual 1-time payment prior to further fund the
City’s unfunded pension liability. Such payment will be approved and authorized
by the City Council prior to December 31 in order to be recognized in the
following year’s TMRS employer contribution rate calculation.
7. Retirement Cost-of-Living Adjustment
a) Within 60 days of when the TMRS annual funding update becomes available
each year, staff will review and prepare a summary of costs and options for
potential cost-of-living adjustment (COLA) for City of Georgetown retirees.
b) Consistent with state statutes governing the Texas Municipal Retirement System,
the city may provide an automatic COLA for members of the TMRS who are
retired from the City of Georgetown and receiving a monthly retirement benefit
from the TMRS.
c) The city council may adjust the COLA provided to city retirees based upon the
funding level of the city’s pension plan, as calculated by the TMRS, as follows:
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When the funding level of the
city’s pension plan is
The COLA
should be
Less than 70.0%
Zero
70.0% to 79.9%
0.3% of CPI
80.0% to 89.9%
0.5% of CPI
90.0% and greater
0.7% of CPI
d) Adjustments made pursuant to subsection b. should reflect the effect of the
prospective change in the COLA on the funding level of the city’s pension plan.
VII.VIII. BUDGET CONTINGENCY PLAN
This policy is designed to establish general guidelines for managing revenue shortfalls
resulting from local and national economic downturns that adversely affect the City's
revenue streams.
A. Immediate Action - Once a budgetary shortfall is projected, the City Manager will
take the necessary actions to offset any revenue shortfall with a reduction in current
expenses. The City Manager may:
• Freeze all new hire and vacant positions except those deemed to be a necessity.
• Review all planned capital expenditures.
• Delay all "non-essential" spending or equipment replacement purchases.
The City Manager shall report in a timely manner to the City Council the projected
shortfall and the actions taken to resolve it.
B. Further Action -. If the actions identified in subsection A are insufficient to offset the
projected revenue deficit for the current fiscal year, the City Council may approve the
following actions, in the order listed:
1. Apply unspent, unobligated surplus funds from prior fiscal years to fund one-time
costs in the current fiscal year budget.
2. Notwithstanding Section XIV.A.2.b. of this policy, authorize a reduction in the
unobligated fund balance in the General Fund, pursuant to Section XIV.A.2.b. of
this policy, from 90 to 75 days.
3. Direct other reductions in services, including workforce reductions.
C. Replenish Fund Balance - As soon as practicable, without placing undue strain on
city services, the City Council shall increase the unobligated fund balance in the
General Fund, up to the 90-day amount required in Section XIV.A.2.b. of this policy.
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VIII.IX. CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET
The City’s goal is to maintain City facilities and infrastructure in order to provide excellent
services to the customers within the community, meet growth related needs, and comply
with all state and federal regulations.
A. Preparation – The City annually updates and adopts a five-year Capital
Improvement Program (CIP) schedule as part of the operating budget adoption
process. The plan is reviewed and adjusted annually as needed, and year one is
adopted as the current year capital budget. The capital budget will include all capital
projects, capital resources, and estimated operational impacts.
• Needed capital improvements are identified through system models, repair and
maintenance records and growth demands.
• Economic development projects that have capital infrastructure needs must be
reviewed and approved for funding by the City no later than March 1 to be
included in the annual CIP process. Any economic development project
approved for funding after March 1 will be included in the following year CIP
process unless otherwise authorized by City Council.
• A team approach will be used to prioritize CIP projects, whereby City staff from
all operational areas provide input and ideas relating to each project and its effect
on operations.
• Citizen involvement and participation will be solicited in formulating the capital
budget through neighborhood meetings, public hearings and other forums.
• Capital infrastructure necessary to meet the requirements of the City’s
Annexation Plan will be identified separately within the CIP plan, so that funding
alternatives can be developed if needed.
Prior to Council adoption, the following Advisory Boards will review the
Capital Projects budget:
Georgetown
Utility Systems
Advisory Board
(GUS)
Georgetown
Transportation
Advisory Board
(GTAB)
General Government
and Finance
Advisory Board
(GGAF)
Parks
Advisory
Board
Electric
Water
Wastewater
Streets
Stormwater Drainage
Airport
Facilities
Other General
Government Capital
Parks and
Recreation
B. Control – All capital project expenditures must be appropriated in the capital budget.
Availability of resources must be identified and then reviewed by the Finance
Division before any CIP contract is presented to the City Council for approval.
Prior to presentation to Council, the following Advisory Boards will review:
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Georgetown Utility
Systems
Advisory Board
(GUS)
Georgetown
Transportation
Advisory Board
(GTAB)
General Government
and Finance
Advisory Board
(GGAF)
All utility contracts and
other utility expenses
greater than $50,000
All Transportation,
Stormwater Drainage and
Airport expenditures and
contracts greater than
$50,000
All General Government
non-routine contracts and
expenditures greater than
$50,000
C. Financing Programs – Where applicable, assessments, impact fees, pro rata
charges, or other fees should be used to fund capital projects which have a primary
benefit to specific identifiable property owners.
Recognizing that long-term debt is usually a more expensive financing method,
alternative-financing sources will be explored before debt is issued. When debt is
issued, it will be used to acquire major assets with expected lives equal or exceeding
the average life of the debt issue.
Short-term financing including Capital Leasing and other tax-supported obligations
can be used to fund vehicles, computers and other operating equipment provided the
impact to the tax rate is minimal.
Caution should be used in replacing assets with short-term, tax-supported
obligations due to the repetitive nature of the replacements. The total amount of I &
S (interest and sinking) portion of the tax rate dedicated to fund short-term debt for
equipment replacement will not exceed $0.04.
IX.X. CAPITAL MAINTENANCE AND REPLACEMENT
The City recognizes that deferred maintenance increases future capital costs.
Therefore, a portion of all individual funds with infrastructure should be budgeted each
year to maintain the quality within each system.
A. Infrastructure Maintenance - On-going maintenance and major repair costs are
included as capital expense within the departmental operating budgets. These costs
are generally considered system repairs and are not capitalized for accounting
purposes. They include such items as park and recreation facility repairs, street seal
coat, water line repairs and other general system maintenance.
B. Modified Approach - Pavement Condition Index (PCI) - Governmental Accounting
Standards Board Statement # 34 provides for an alternative approach to depreciation
for measuring the value of infrastructure assets and the related costs incurred to
maintain their service life at a locally established minimum standard. The City has
elected to implement this modified approach in maintaining their non-enterprise fund
infrastructure assets. In order to adopt this alternative method, the City has
implemented an asset management system that determines if the minimum
standards are being maintained. This measurement system will be updated at least
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every 3 years. The City has elected to use this alternative method for reporting its
street infrastructure assets.
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The City uses the CarteGraph PavementView Pavement Management
Information System to track the condition levels of each of the street sections.
The condition of the pavement is based on the following factors:
• Type of Distress
• Amount of Distress
• Severity of Distress
• Deduct Values (function of first three)
The Pavement Condition Index (PCI) is a measurement scale is based upon a
condition index ranging from zero for a failed pavement to 100 for pavement with
perfect condition. The condition index is used to classify pavement in the following
conditions:
The City’s administrative policy is to achieve an average PCI level of 85. An 85 PCI
is considered maintaining the streets in a “good” condition. Staff will prepare a street
maintenance budget that meets this target for Council’s consideration during the
budget process. The PCI level as of 2014 87.30.
C. Internal Service Funds Capital Maintenance & Replacement) – The City currently
utilizes internal service funds to maintain and replace existing assets. Assessments
are made to the using funds for the use of equipment currently in use and to be
purchased during the year. In this way, suitable funds are available for the purchase
of operational assets without the issuance of debt.
A. Fleet Maintenance and Replacement - The City has a major investment in its
fleet of cars, trucks, tractors, and other equipment. The City will anticipate
replacing existing equipment, as necessary and will establish charges that are
assigned to the using departments to account for the cost of that replacement.
Vehicle maintenance is also allocated in this manner.
B. Technology – It is the policy of the City to plan and fund the maintenance and
replacement of its computer network and other technology systems. The City
currently uses a four-year replacement cycle for all desktop computers. A
reserve will be established within the ISF for replacement of major systems and
will be funded over time through excess revenues within the Fund. Funding for
major systems assumes that 50% of the replacement cost will be debt funded.
C. Facilities Maintenance – The City has established an on-going maintenance
program, which includes major repairs, equipment, as well as contracts for
maintaining City facilities. The City has anticipated a useful life of such
equipment and established a means of charging those costs to the various
departments in order to recognize the City’s continuing costs of maintaining its
facilities. Determination for facility repairs is based on useful life of the various
elements of each facility. A proportional cost for each element is expensed
PCI Rating
100 – 85 Good
85 – 45 Fair
45 – 0 Poor
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within the budget for capital replacement. An additional unscheduled repair
reserve equal to 10% value of annual internal service funding is also budgeted.
The estimate reserve for 2014/15 2015/16 equals $ _____.
D. Departmental Capital Maintenance & Replacement – The City also utilizes
department capital maintenance and replacement schedules for specialized assets
and equipment necessary to provide services.
1. Parks and Recreation - As part of the City’s on-going maintenance program, the
City also recognizes the need to regularly maintain and replace grounds,
equipment and facilities that are part of the City’s Parks and Recreation system.
Separate replacement and maintenance schedules will be maintained for these
items including, but not limited to, playground equipment, buildings, sport courts,
trees and grounds, and restroom facilities. The City’s goal is to provide level on-
going funding to ensure safe, well-maintained facilities for its citizens.
2. Public Safety Equipment – As part of the City’s on-going maintenance program,
the City also recognizes the need to regularly maintain and replace specialized
equipment in Police and Fire. Separate replacement and maintenance
schedules will be maintained for these items including but not limited to for Fire:
SCBA’s and other firefighting equipment and protective gear; and for Police:
bullet proof vests, armaments and other tactical equipment. The City’s goal is to
provide level on-going funding to ensure proper protection for employees and
citizens.
E. Surplus Property
1. From time to time it is necessary to dispose of certain vehicles or equipment that
have been procured with City funds and used in City services. Individual surplus
property items with expected sales value in excess of $10,000 must be approved
by the City Council prior to disposition.
2. City staff will maintain reports and records of all surplus property dispositions in
accordance with good internal controls. A report of all disposed items in excess
of $1,000 will be included with the quarterly financial reports provided to City
Council.
X.XI. ACCOUNTING, AUDITING AND FINANCIAL REPORTING
A. Accounting – The City is solely responsible for the recording and reporting of its
financial affairs, both internally and externally. The Chief Financial Officer (CFO) is
responsible for establishing the structure for the City’s Chart of Accounts and for
assuring that procedures are in place to properly record financial transactions and
report the City’s financial position.
B. General Government and Finance Advisory Board (GGAF) – The City may
establish a subcommittee consisting of (3) City Council members and (2) citizens
that may meet monthly to provide additional oversight to the City’s Finance
operations. This subcommittee will also review general government items that are
not reviewed by another City advisory board before being presented to City Council.
The City’s CFO will be the liaison for this subcommittee.
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C. Audit of Accounts – In accordance with the Charter, an independent audit of the
City accounts will be performed every year. The auditor is retained by and is
accountable directly to the City Council. The auditing firm will serve for up to 5
years, at which time, the City will re-bid these services and changing firms if deemed
necessary by GGAF and City Council.
D. External Reporting – Upon completion and acceptance of the annual audit by the
City’s auditors, the City shall prepare a written Comprehensive Annual Financial
Report (CAFR) which shall be presented to the City Council within 180 calendar days
of the City’s fiscal year end. The CAFR shall be prepared in accordance with
Generally Accepted Accounting Principles (GAAP) and shall be presented annually
to the Government Finance Officer Association (GFOA) for evaluation and
consideration for the Certificate of Achievement in Financial Reporting.
E. Internal Reporting – The Finance Department will prepare internal financial reports,
sufficient to plan, monitor and control the City’s financial affairs.
ASSET MANAGEMENT
A. Cash Management and Investments – The City Council has formally approved a
separate Investment Policy for the City of Georgetown that meets the requirements
of the Public Funds Investment Act (PFIA), Section 2256 of the Texas Local
Government Code. This policy is reviewed annually by the City Council and applies
to all financial assets held by the City and applies to all entities (component units)
included in the City’s Comprehensive Annual Financial Report (CAFR) and/or
managed by the City
1. Statement of Cash Management Philosophy - The City shall maintain a
comprehensive cash management program to include the effective collection of
all accounts receivable, the prompt deposit of receipts to the City’s depository,
the payment of obligations, and the prudent investment of idle funds in
accordance with this policy.
2. Objectives – The City’s investment program will be conducted as to accomplish
the following listed in priority order:
• Safety of the principal invested
• Liquidity and availability of cash to pay obligations when due
• Ensure public trust through responsible actions as custodians of public funds.
• Maximize earnings (yield) to the greatest extent possible consistent with the
City’s investment policy.
3. Safekeeping and Custody – Investments may only be purchased through
brokers/dealers who meet the criteria detailed in the investment policy, which
also addresses internal controls related to investments.
4. Standard of Care and Reporting – Investment will be made with judgment and
care, always considering the safety of principal to be invested and the probable
income to be derived. The Chief Financial Officer is responsible for the overall
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management of the City’s investment program and ensures all investments are
made in compliance with the investment policy. An investment report, providing
both summary and detailed information, will be presented to the City Council
quarterly.
5. Authorized Investments – The City can currently invest in the following:
• Certificates of Deposit
• U.S. Treasury and Agency securities
• Investment Pools that meet the requirements of the PFIA
• No-load Money Market Mutual Funds
• Fully collateralized Repurchase Agreements
• Obligations of Municipal Issuers in Texas rated not less than A or its
equivalent.
• Other investments as approved by City Council and not prohibited by law
B. Fixed Assets – These assets will be reasonably safeguarded and properly
accounted for, and prudently insured.
1. Capitalization Criteria - For purposes of budgeting and accounting classification,
the following criteria must be capitalized:
• The asset owned by the City.
• The expected useful life of the asset must be longer than one year, or extend
the life of an identifiable existing asset by more than one year.
• The original cost of the asset must be at least $5,000.
• The asset must be tangible.
• On-going repairs and general maintenance are not capitalized.
2. New Purchases – All costs associated with bringing the asset into working order
will be capitalized as part of the asset cost. This will include startup costs,
engineering or consultant type fees as part of the asset cost once the decision or
commitment to purchase the asset is made. The cost of land acquired should
include all related costs associated with its purchase.
3. Improvements and Replacement – Improvements will be capitalized when they
extend the original life of an asset or when they make the asset more valuable
than it was originally. The replacement of assets components will normally be
expensed unless they are a significant nature and meet all the capitalization
criteria.
4. Contributed Capital - Infrastructure assets received from developers or as a
result of annexation will be recorded as equity contributions when they are
received.
5. Distributions Systems - All costs associated with public domain assets, such as
streets and utility distribution lines will be capitalized in accordance with the
capitalization policy. Costs should include engineering, construction and other
related costs including right of way acquisition.
6. Reporting and Inventory – The Finance Division will maintain the permanent
records of the City’s fixed assets, including description, cost, department of
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responsibility, date of acquisition, depreciation and expected useful life.
Periodically, random sampling at the department level will be performed to
inventory fixed assets assigned to that department. Responsibility for
safeguarding the City’s fixed assets lies with the department supervisor or
manager whose department has been assigned the asset.
XII. DEBT MANAGEMENT
The City of Georgetown recognizes the primary purpose of capital facilities is to provide
services to the community. Using debt financing to meet the capital needs of the
community must be evaluated according to efficiency and equity. Efficiency must be
evaluated to determine the highest rate of return for a given investment of resources.
Equity is resolved by determining who should pay for the cost of capital improvements.
In meeting demand for additional services, the City will strive to balance the needs
between debt financing and “pay as you go” methods. The City realizes that failure to
meet the demands of growth may inhibit its continued economic viability, but also
realizes that too much debt may have detrimental effects on the City’s long-range
financial condition.
The City will issue debt only for the purpose of acquiring or constructing capital assets
for the general benefit of its citizens and to allow it to fulfill its various purposes as a city.
A Debt Condition Update report will be provided annually.
A. Usage of Debt - Long-term debt financing will be considered for non-continuous
capital improvements of which future citizens will be benefited. Alternatives for
financing will be explored prior to debt issuance and include, but not limited to:
• Grants
• Use of Reserve Funds
• Use of Current Revenues
• Contributions from developers and others
• Leases
• Impact Fees
When the City utilizes long-term financing, it will ensure that the debt is soundly
financed by conservatively projecting revenue sources that will be used to pay the
debt. It will not finance the improvement over a period greater than the useful life of
the improvement and it will determine that the cost benefit of the improvement,
including interest costs, is positive to the community.
The City may utilize the benefits of short-term debt financing to purchasing operating
equipment provided the debt doesn’t extend past the useful life of the asset and the
potential impact to the tax rate is within policy guidelines. The I & S (interest and
sinking) portion of the tax rate cannot exceed $0.04 for short-term debt (3-10 years).
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B. Types of Debt –
1. General Obligation Bonds (GO’s) – General obligation bonds must be authorized
by a vote of the citizens of Georgetown. They are used only to fund capital
assets of the general government and are not to be used to fund operating needs
of the City. The City’s ad valorem taxing authority backs general obligation
bonds. Conditions for issuance of general obligation debt include:
• When the project will have a significant impact on the tax rate;
• When the project may be controversial even through it is routine in nature; or
• When the project falls outside the normal bounds of projects the City has
typically done.
For debt programs that include multiple projects that will be issued over multiple
years at the discretion of the City Council, the City may approve a Contract with
the Voters to manage future property tax rate impacts. The Contract with the
Voters will be included in educational information for all applicable GO Bond
elections, and will include a maximum annual tax rate increase and a cumulative
total per bond authorization maximum tax rate increase. The City will include
these impacts in its annual Debt Condition report.
The City Council will carefully manage the unissued GO Bond authorization
through annual review of related projects to ensure full disclosure on future
timing of projects included in the bond package. Timing of authorized projects
and related bond issuance will be included in the Annual Budget and published
on the City’s website. Any changes to this schedule require specific Council
authorization.
2. Revenue Bonds – Revenue bonds will be issued to provide for the capital needs
of any activities where the capital requirements are necessary for the
continuation or expansion of a service. The improved activity shall produce a
revenue stream to fund the debt service requirements of the necessary
improvement to provide service expansion. The average life of the obligation
should not exceed the useful life of the asset(s) to be funded by the bond issue,
and will generally be limited to no more than twenty (20) years, An exception can
be made for plant expansions or related system expansions whose useful life is
in excess of 30 years. A cost benefit analysis will be done to fully disclose the
impacts of extending debt beyond 20 years.
3. Certificates of Obligation, Contract Obligations (CO’s) – Certificates of obligation
or contract obligations may be used to fund capital requirements that are not
otherwise funded by general obligation or revenue bonds. Debt service for CO’s
may be either from general revenues (tax-supported) or supported by a specific
revenue stream(s) or a combination of both. Typically, the City may issue CO’s
when the following conditions are met:
• When the proposed debt will have minimal impact on future effective property
tax rates;
• When the projects to be funded are within the normal bounds of city capital
requirements, such as for roads, parks, various infrastructure and City
facilities and equipment; and
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• When the average life of the obligation does not exceed the useful life of the
asset(s) to be funded by the issue.
Certificates of obligation will be the least preferred method of financing and will
be used with prudent care and judgment by the City Council. Every effort will be
made to ensure public participation in decisions relating to debt financing.
4. Self-supporting General Obligation Debt – Refers to certificates of obligation
issued for a specific purpose and repaid through dedicated revenues other than
ad valorem taxes. The annual debt requirements are not included in the property
tax calculation. Both the Airport and Stormwater Drainage funds will issue this
type of debt, In addition, the Electric and Water Services Funds can utilize this
method of funding non-system capital assets. The City also issues debt on behalf
of the Georgetown Transportation Enhancement Corporation (GTEC) whom then
pledges 4B sales tax revenue for the repayment of that debt.
5. Internal borrowing between City funds – The City can authorize use of existing
long-term reserves as “loans” between funds. The borrowing fund will repay the
loan at a rate consistent with current market conditions. The loan will be repaid
within ten (10) years. The loan will be considered an investment of working
capital reserves by the lending fund.
6. Other Short-term borrowing - The City may authorize the issuance of Public
Property Finance Contractual Obligations (PPFCO) which is short-term
obligations for the acquisition of personal public property, such as equipment.
PPFCOs are payable from either ad valorem taxes or another dedicated revenue
stream. Each issuance will be assessed to ensure cost effectiveness and the
repayment schedule will not exceed the useful life of the asset. Multiple
equipment acquisitions can be grouped in a single PPFCO issue in order to
develop economies of scale.
C. Method of Sale – The City will use a competitive bidding process in the sale of
bonds unless conditions in the bond market or the nature of the issue warrant a
negotiated bid. In such situations, the City will publicly present the reasons for the
negotiated sale. The City will rely on the recommendation of the financial advisor in
the selection of the underwriter or direct purchaser. The financial advisor must meet
all licensing requirements and comply with all MSRB regulations. The City’s financial
advisor will not act as the underwriter on any City bond issue.
D. Disclosure – Full disclosure of operating costs along with capital costs will be made
to the bond rating agencies and other users of financial information. The City staff,
with assistance of the financial advisor and bond counsel, will prepare the necessary
materials for presentation to the rating agencies and will aid in the production of the
Preliminary Official Statements. The City will take responsibility for the accuracy of
all financial information released.
E. Federal Requirements – The City will maintain written procedures to follow post
issuance compliance rules, arbitrage rebate and other Federal requirements.
• Post issuance tax compliance rules will include records retention,
arbitrage rebate, use of proceeds, and
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• Continuing disclosure requirements under SEC Rule 15c2-12, MSRB
standards, or as may be required by bond covenants or related
agreements.
F. Debt Structuring – The City will issue bonds with an average life of twenty (20)
years or less, not to exceed the useful life of the asset acquired. The structure
should approximate level debt service unless operational matters dictate otherwise.
Market factors, such as the effects of tax-exempt designations, the cost of early
redemption options and the like, will be given consideration during the structuring of
long term debt instruments. Exceptions to the 20 year average life include debt
issues for major system expansions, such as water, sewer or electric plants, in which
case the City may issue debt greater than 20 years since the average life of the
asset exceeds 30 years. A cost benefit analysis indicating the impacts of extending
debt beyond 20 years will be completed.
G. Debt Coverage Ratio – Refers to the number of times the current combined debt
service requirements or payments would be covered by the current operating
revenues net of on-going operating expenses of the City’s combined utilities
(Electric, Water, and Wastewater). The City will maintain a minimum debt service
coverage ratio of 1.5 times for these utilities as a whole. The bond ordinances allow
the City to forego a debt reserve fund for its utility debt if the coverage is maintained
at 1.35 times or better. Debt coverage for 2014/15 2015/16 is budgeted at___
times coverage. A coverage ratio of 1.5 times will also be required for all funds
issuing self-supporting debt.
H. Bond Reimbursement Resolutions – The City may utilize bond reimbursements as
a tool to manage its debt issues, due to arbitrage requirements and project timing.
In so doing, the City uses its capital reserve "cash" to delay bond issues until such
time when issuance is favorable and beneficial to the City.
The City Council may authorize a bond reimbursement resolution for General Capital
projects that have a direct impact on the City's ad valorem tax rate when the bonds
will be issued within the term of the existing City Council. In the event of unexpected
circumstances that delay the timing of projects, or market conditions that prohibit
financially sound debt issuance, the approved project can be postponed and
considered by a future council until circumstantial issues can be resolved.
The City Council may also authorize revenue bond reimbursements for approved
utility and other self-supporting capital projects within legislative limits. Currently
revenue bonds must be issued within 18 months after an eligible bond funded project
is begun.
The total outstanding bond reimbursements may not exceed the total amount of the
City’s reserve funds.
XIII. OTHER FUNDING ALTERNATIVES:
When at all possible, the City will research alternative funding opportunities prior to
issuing debt or increasing user-related fees.
A. Grants - All potential grants will be examined for any matching requirements and the
source of those requirements identified. A grant funding worksheet, reviewed by
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Finance, that clearly identifies funding sources, outcomes and other relevant
information will be presented and approved by the City Council prior to any grant
application being submitted. It must be clearly understood that any resulting
operation requirements of the grant could be discontinued once the term and
conditions of the project have been terminated. The City Council must authorize
acceptance of any grant funding.
B. Use of Reserve Funds - The City may authorize the use of reserve funds to
potentially delay or eliminate a proposed bond issue. This may occur due to higher
than anticipated fund balances in prior years, thus eliminating or reducing the need
for debt proceeds, or postpone a bond issue until market conditions are more
beneficial or timing of the related capital improvements does not correspond with the
planned bond issue. Reserve funds used in this manner are replenished upon
issuance of the proposed debt.
C. Developer Contributions - The City will require developers who negatively impact
the City's utility capital plans offset those impacts. These policies are further defined
within the City's utility line extension policy and other development regulations.
D. Leases - The City may authorize the use of lease financing for certain operating
equipment when it is determined that the cost benefit of such an arrangement is
advantageous to the City.
E. Impact Fees - The City will impose impact fees as allowable under state law for both
water and wastewater services. These fees will be calculated in accordance with
statute and reviewed at least every three years. All fees collected will fund projects
identified within the Fee study and as required by state laws.
XIV. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS
The City of Georgetown will maintain budgeted minimum reserves in the ending working
capital/fund balances to provide a secure, healthy financial base for the City in the event
of a natural disaster or other emergency, allow stability of City operations should
revenues fall short of budgeted projections and provide available resources to implement
budgeted expenditures without regard to actual timing of cash flows into the City.
A. Operational Coverage – The City’s goal is to maintain operations coverage of 1.0
(one), such that operating revenues will at least equal or exceed current operating
expenditures. Deferrals, short-term loans, or one-time sources will be avoided as
budget balancing techniques. Reserves will be used only for emergencies or non-
recurring expenditures, except when balances can be reduced because their levels
exceed guideline minimums as stated below.
1. Operating Reserves – The City will maintain reserves at a minimum of seventy-
five (75) days (20.83%) of net budgeted operating expenditures. Net budgeted
operating expenditure is defined as total budgeted expenditures less interfund
transfers and charges, general debt service (tax supported), direct cost for
purchased power and payments from third party grant monies. Total reserves for
2014/15 2015/16 are $ ____million. The amount of these funds are allocated
within the following operating funds and using the following guidelines to maintain
the fund balance, working capital and retained earnings (reserves) of the various
operating funds at levels sufficient to protect the City’s creditworthiness, as well
as, its financial position from unforeseeable emergencies.
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2. General Fund – The fund balance reserve in the General Fund should equal
ninety (90) days or 25% of annual budgeted General Fund operating
expenditures. 2014/15 2015/16 reserves are $ ____ million and are allocated as
follows:
a. Base Level Reserve – will equal sixty (60) days of current year budgeted
operating expenditures which will be designated for emergency use only.
b. Budget Stabilization Reserve – will equal thirty (30) days of current year
budgeted operating expenditures and will be designated to protect the City
against short term operating deficits. The funds will be available for the
following purposes:
i. Defer short term tax increases
ii. Cover revenue shortfalls
iii. Fund unanticipated expenditures
If the Budget Stabilization Reserve is depleted during the fiscal year, the
balance must return to the 30 day requirement within the following year’s
adopted budget.
3. Tourism Fund – A minimum sixty days (60) or 16.67% of operating expenditures
will be reserved within the fund balance. These funds are designated to be used
to offset any potential revenue shortfall that occurs during the fiscal year and
should be replenished in the following fiscal year’s budget.
4. Water Services Fund – Working capital reserves in should be 25% or ninety (90)
days of operating expenses, net debt service and long-term water contract costs.
These reserves are designated to be used to offset potential revenue shortfalls or
fund unexpected or emergency expenses that occur during the fiscal year.
These reserves should be replenished in the following budget cycle.
5. Stormwater Drainage Fund Other Funds – $250,000 for unforeseen emergencies
or other potential revenue shortfalls.
• Stormwater Drainage Fund - $ 250,000 for unforeseen emergencies or
potential revenue shortfalls
• Airport Fund – As funds are available, up to ninety (45) days or 0.125% of
operating expenses (less fuel costs) for unforeseen emergencies or
potential revenue shortfalls
6. Electric Fund – The remaining balance to meet the citywide requirement of
seventy-five (75) days of reserve funds will be maintained within this fund. It can
be used for unforeseen emergencies and expenditures. The Rate Stabilization
Account and the Power Contract Credit Reserve are not included in this
Contingency Reserve.
For all other non-enterprise funds, the fund balance is an indication of the balance of
each particular fund at a specific time. The ultimate goal of each such fund is to
have expended the fund balance at the conclusion of the activity for which the fund
was established.
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Reserve requirements will be calculated as part of the annual budget process and
any additional required funds to be added to the reserve balances will be
appropriated within the budget.
Funds in excess of the minimum reserves within each fund may be expended for City
purposes at the will of the City Council once it has been determined that use of the
excess will not endanger reserve requirements in future years. This action requires
an amendment to the City’s Annual Budget and is outlined in Section !V L. Use of
Unanticipated and Unappropriated General Fund Balances .
B. Liabilities and Receivables - Procedures will be followed to maximize discounts
and reduce penalties offered by creditors. Current liabilities will be paid within 30
days of receiving the invoice. Accounts Receivable procedures will target collection
for a maximum of 30 days of service. Receivables aging past 90 days will be sent to
a collection agency. The Chief Financial Officer is authorized to write-off non-
collectible, non-utility accounts that are delinquent for more than 180 days, and utility
accounts delinquent more than 180 days, provided proper delinquency procedures
have been followed, and include this information in the annual report to the City
Council.
C. Capital Project Funds – Every effort will be made for all monies within the Capital
Project Funds to be expended in a timely manner preferably within thirty-six (36)
months of receipt. The fund balance will be invested and income generated will
offset increases in construction costs or other costs associated with the project.
Capital project funds are intended to be expended totally, with any unexpected
excess to be transferred to the Debt Service fund to service project-related debt
service.
D. General Debt Service Funds – Revenues within this fund are stable, based on
property tax revenues. Balances are maintained to meet contingencies and to make
certain that the next year’s debt service payments may be met in a timely manner.
Fund balance should not fall below 45 days annual debt service requirements, in
accordance with IRS guidelines.
E. Investment of Reserve Funds – The reserve funds will be invested in accordance
with the City’s investment policy. Existing non-cash investment would be exempt
through retirement of the investment.
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F. Ratios/Trend Analysis - Ratios and significant balances will be incorporated into
both the mid-year and annual reports to the City Council. This information will
provide users with meaningful data to identify major trends of the City's financial
condition through analytical procedures. The following ratios/balances will be used
as key financial indicators:
• Fund Balance/Equity: Assets - liabilities
FB/E AL (Acceptable level) minimum reserve
requirement
• Working Capital: Current assets less current liabilities
CA - CL AL minimum reserve requirement
• Current Ratio: Current assets divided by current liabilities
CA/CL AL > 1.00
• Quick Ratio: "Liquid" current assets divided by current
liabilities
Liquid CA/CL AL > 1.00
• Debt/Assessed AV Taxes Debt divided by assessed Ad Valorem value
D/AV AL < 5
• Debt Ratio: Current liabilities plus long-term liabilities
divided by total assets
CL +LTL/TA AL < 1
• Enterprise Oper Coverage: Operating rev divided by operating expense
OR/OE AL > 1.25
• Times Coverage Ratio: Operating revenue less operating expense
divided by annual debt service
(OR-OE)/DSV AL > 1.5
The City will be to develop minimum/maximum levels for the above ratios/balances
through analyzing of City historical trends and future projections. These ratios will
also be compared to other similar or regional municipalities for further analysis.
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XV. INTERNAL CONTROLS
A. Written Procedures – Wherever possible, written procedures will be established
and maintained by the Chief Financial Officer for all functions involving cash handling
and/or accounting throughout the City. These procedures will embrace the general
concepts of fiscal responsibility set forth in this policy statement.
B. Internal Audit Program - An internal audit program will be maintained by the Chief
Financial Officer to ensure compliance with City policies and procedures and to
prevent the potential for fraud.
1. Departmental Audits – departmental processes will be reviewed to ensure dual
control of City assets and identify the opportunity for fraud potential, as well as, to
ensure that departmental internal procedures are documented and updated as
needed.
2. Employees or Transaction Review - Programs- Programs to be audited include
Petty Cash, City Credit Card accounts, time entry, and travel. All discrepancies
will be identified, and the employee’s Division Director will be notified. The City
Manager will also be notified depending on the seriousness of the infraction.
3. Results of all internal audits will be provided to City Council on a quarterly basis.
C. Division Directors Responsibility – Each division Director is responsible for
ensuring that good internal controls are followed throughout their department, that all
Finance Division directives are implemented and that all independent auditor internal
control recommendations are addressed. Departments will develop and periodically
update written internal control procedures.
XVI. STAFFING AND COMPENSATION
Realizing the importance and contribution of employee’s in achieving and maintaining
the City of Excellence, the City’s goal as an employer is to attract and retain quality
employees who provide excellent, friendly services to our community in an effective and
efficient manner.
A. Adequate Staffing – Staffing levels will be adequate for the fiscal functions of the
City to operate effectively. Workload allocation alternatives will be explored before
adding additional staff.
B. Competitive Compensation – In order to maintain a competitive pay scale, the City
is implementing a Competitive Employee Compensation Maintenance Policy to
address competitive market factors and other issues impacting compensation. The
program consists of:
1. Cost of Living Adjustment - (COLA) – To protect City employees from the
effects of general inflation, every odd numbered year, the City may fund a COLA
adjustment for all regular employees not included in a defined pay plan. The
COLA will be based on a three-year rolling average of the Consumer Price
Index (CPI) reported by the U.S. Bureau of Labor Statistics for Southern cities
pertinent to Georgetown’s population.
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2. Pay Scale Review – To ensure the City’s pay system is accurate and
competitive within the market, every even numbered year, the City will review its
pay plan for any potential market adjustments necessary to maintain the City’s
pay scale.
3. Pay for Performance – Each year the City will fund pay adjustments to aid in
retaining quality employees while recognizing increased job experience and
rewarding quality performance.
Adjustments are based on the previous year’s annual performance evaluation. The
percentage adjustments are determined by the employee’s position within their pay
grade, including merit adjustments for productivity and quality performance during
the previous fiscal year.
In addition, the City may also choose to fund a one-time on performance that
exceeds expectations during the review period.
C. Self-Insurance Program – The City is committed to providing quality healthcare
insurance that offers the most flexibility in health benefits and options to its
employees. In order to provide the most cost effective solution, the City has
determined that establishing a self-funded health insurance plan offers the greatest
opportunity to mitigate future cost increases while offering quality health care
services to its employees. The City has established a mechanism to manage the
accounts and payments associated with this program. Per GASB Statement No. 66,
such funding should be accounted for as a Special Revenue an Internal Service
Fund (SRFISF).
1. Employee Health Insurance SRF ISF- includes premium contributions from
employees and budgeted health insurance contributions included in the City’s
annual budget process.
2. Self-Insurance Reserves – Over time, all excess premiums or other savings
within the Employee Health Insurance SRF ISF will accumulate and be used for
employee premium rate stabilization. Until such balances occur, the City has
established an internal line of credit up to $1,000,000 to be used for liquidity and
operations if needed to be paid from the City’s Contingency Reserve funds.
3. Employee Premiums – Annual premiums will be recommended to City Council
through a collaborative process between the City’s Employee Benefit Committee
and external consultants using historical data and other analytic analysis.
City of Georgetown, Texas
Government and Finance Advisory Board
March 25, 2015
SUBJECT:
Discuss dates/times for future GGAF Meetings – Keith Brainard, GGAF Chair
ITEM SUMMARY:
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Keith Brainard, GGAF Chair