HomeMy WebLinkAboutAgenda_GGAF_06.19.2014Notice of Meeting for the
General Government and Finance Advisory Board
of the City of Georgetown
June 19, 2014 at 2:00 PM
at Georgetown Public Library Classroom, located at 402 West 8th Street,
Georgetown, TX
The City of Georgetown is committed to compliance with the Americans with Disabilities Act (ADA).
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Legislative Regular Agenda
A Review and discuss certain sections of the Fiscal and Budgetary Policy changes - Micki Rundell,
Chief Financial Officer
B Presentation, discussion, and direction regarding the phasing, funding, and priorities for the 5-Year
Capital Improvement Plan for Parks, Downtown, Sidewalks and City-wide Facilities – Laurie
Brewer, Assistant City Manager and Micki Rundell, Chief Financial Officer
CERTIFICATE OF POSTING
I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice
of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public
at all times, on the ______ day of __________________, 2014, at __________, and remained so
posted for at least 72 continuous hours preceding the scheduled time of said meeting.
____________________________________
Jessica Brettle, City Secretary
City of Georgetown, Texas
SUBJECT:
Review and discuss certain sections of the Fiscal and Budgetary Policy changes - Micki Rundell,
Chief Financial Officer
ITEM SUMMARY:
After the detailed review of the Fiscal and Budgetary Policy and proposed updates at the April 23,
2014 GGAF meeting, several items continued to be reviewed with comments provided by
members. This item is to review just those four items and make a recommendation to the City
Council for its consideration and review on June 24, 2014.
The four areas to be discussed are as follows.
· Use of unexpected and unappropriated General Fund balances – page 7 of redline copy
· Retirement plan funding targets and retire COLA provisions – pages 13 & 14 of redline copy
· Surplus property – page 19
· Internal audit program – n/a
A full review of these items for discussion is attached.
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Micki Rundell, Chief Financial Officer
ATTACHMENTS:
Description Type
Fiscal and Budgetary Redline Draft Cover Memo
Summary Memo Cover Memo
City of Georgetown, Texas
Fiscal and Budgetary Policy
As amended for GGAF
June 19, 2014
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Table of Contents
I. Purpose 2
II. Fund Structure and Basis of Budgeting 2-3
III. Fund Balance Policies 4
IV. Operating Budget 4-7
V. Revenue Management 7-10
VI. Expenditure Policies 10-14
VII. Budget Contingency Plan 14-15
VIII. Capital Improvement Program (CIP) Budget 15-16
IX. Capital Maintenance and Replacement 17-19
X. Accounting, Auditing and Financial Reporting 19
XI. Asset Management 19-21
XII. Debt Management 21-25
XIII. Other Funding Alternatives 25-26
XIV. Financial Conditions & Reserves & Stability Ratios 26-29
XV. Internal Controls 29
XVI. Staffing 29-30
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City of Georgetown
Fiscal and Budgetary Policy
Approved June 11, 2013
GGAF Committee April 23, 2014 As presented to
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
currently budgets 17 -____ SRF Funds and includes Tourism,
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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.
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
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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 reflects 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
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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 appropriations
made unless the total estimated revenues, income and funds available shall be equal
to or in excess of such budget or appropriations, except otherwise provided”.
Therefore, the budget will be presented to the City Council no later than the 1st day of
August to provide the City Council time to adopt the budget in the required time
frame.
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.
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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 B IV. D.
of the this 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. The City Manager will also
present a mid-year update to the City Council within 60 days following the end of the
second fiscal quarter that updates the status of projects and related financial goals
set forth in the budget.
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.IB 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.
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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 2013/14 2014/15 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;
and/or
6. to hold those funds in reserve for future commitments or contingencies that may
be pending.”
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.
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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.
3. Sustainable Revenues – “Sustainable" means revenue that is consistently
available year after year, and includes revenues realized subsequent to adopted
projections.
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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.
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
Assistant City Manager General Manger for Utilities.
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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. except sanitation. ROI for water and sewer customers
outside the City is 10% of operating revenues. both inside and outside
the City. 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.
8. 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.
9. 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. 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.
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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
2013/14 2014/15 the Vacancy Factor equals $214,270 ______. 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
2013/14, 2014/15 $30,000______ 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”.
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. Social Service Funding and
Children’s and Youth Program Funding – 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. Funding for these programs will be split
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83% for social services and 17% for youth funding. These funds will be allocated
and paid according to the City Council’s guidelines for such programs. Social
Service and Children’s and Youth Program Funding.
The funding level for 2013/14 2014/15 is $307,500 $400,049 for these type of
initiatives and is Social Service Funding and $92,549 for Children’s and Youth
Program Funding, both of which are the same as in the previous year.
Any given year, unallocated funds in either the social Services Fund or the
Children’s and Youth Program Funds can be allocated to the other fund, in an
amount not to exceed the estimated increase for the following year in the fund
receiving the transfer.
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.
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.
$10,000$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.
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In addition to the above, all purchases must be approved accordingly to preapproved
limits within each department.
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.
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 targeted minimum funding goal for the
City’s unfunded pension liability. The City’s funded pension liability is 86.7%
_____as of December 31, 2012_2013, as disclosed by TMRS. The City’s
ultimate goal is 100%, but will be achieved reasonably over time.
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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:
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. 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.
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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 XII B.1XIV.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.
XII B.1 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. XII B.1 of this
policy.
VIII. 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.
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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
Subcommittee
(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:
Georgetown Utility
Systems
Advisory Board
(GUS)
Georgetown
Transportation Advisory
Board (GTAB)
General Government
and Finance Advisory
Subcommittee
(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.
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IX. 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
every 3 years. The City has elected to use this alternative method for reporting its
street infrastructure assets.
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.
PCI Rating
100 – 85 Good
85 – 45 Fair
45 – 0 Poor
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C. Internal Service Funds and (Capital Maintenance & Replacement)funds – 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.
1. 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.
2. 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.
3. Facilities Maintenance – The City has established an on-going maintenance
program, which includes major repairs, equipment, as well as contracts for
maintaining City facilities, including Parks and Recreation. 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 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 2013/142014/15 equals $30,000
_____.
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.
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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.
X. 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 Subcommittee (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.
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, thereby changing firms
at least every 5 years 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.
XI. 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
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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
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.
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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
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.
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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).
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 full faith and credit of the City as well as the City’s ad valorem
taxing authority back 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 will 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
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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
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
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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
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 2013/14 2014/15 is budgeted at 2.45
___times coverage. A coverage ratio of 1.5 times will also be required for all funds
issuing self-supporting debt.
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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
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.
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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
$1.001.0 (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
2013/14 2014/15 are $17.85 ____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.
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. 2013/14 2014/15 reserves are $7.5 ____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.
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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. Other Funds –
Stormwater Drainage Fund - $ 250,000 for unforeseen emergencies or
potential revenue shortfalls
Airport Fund – As funds are available, up to ninety (9045) days or
250.125% 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.
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.
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.
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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.
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
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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.
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 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:
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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.
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 Fund (SRF).
1. Employee Health Insurance SRF - 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 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.
L:\Division\finance\Share2\GGAF Advisory Board\GGAF Meetings\2014\6.19.14\6.19.14 FB Policy Changes Summary Memo.docx
FISCAL AND BUDGETARY POLICY UPDATE 2014
SUMMARY AND ANALYSIS
GGAF COMMITTEE DISCUSSIONS & MEMBER SUGGESTED WORDING
For GGAF Review on June 19, 2014
GENERAL FUND BALANCE
Committee Discussions
The committee discussed a desire to ensure that excess fund balances are not spent without careful
consideration and with a strong preference at reducing new debt and other steps that will provide long‐
term tax rate mitigation and financial security.
Specific Wording Suggested by Council Member Brainard after the meeting:
“Economic Uncertainty Reserve Fund
a.) In addition to the fund balance reserve in the general fund, the city shall maintain a fund
known as the economic uncertainty reserve fund. The primary purpose of the economic
uncertainty reserve fund is to avoid service level reductions or tax increases in the event of
revenues that are less than budgeted amounts.
b.) Revenues in excess of general fund budgeted amounts, including sales tax receipts in
excess of budgeted amounts and other non‐recurring revenues as deemed by the city council,
shall be deposited into the economic uncertainty reserve fund.
c.) Notwithstanding other provisions of this policy, including Section V.B.2., the economic
uncertainty reserve fund may be used to avert budget reductions or tax increases that
otherwise may be required as a result of a revenue shortfall.
d.) The amount in the economic uncertainty reserve fund may not exceed 10 percent of
annual budgeted General Fund operating expenditures.
e.) Amounts in the economic uncertainty reserve fund in excess of three percent of annual
budgeted General Fund operating expenditures, may be used for any of the following purposes,
as approved by the city council:
a. to fund capital projects;
b. to fund equipment purchases in lieu of issuing debt;
c. to reduce outstanding city debt, including bonded indebtedness and unfunded
pension liabilities;
d. to fund contingent liabilities such as the benefit payout reserve, cemetery trust
fund, and similar obligations of the city; and
e. to reduce property tax rates.”
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Specific Wording Directly from the Current Fiscal & Budgetary Policy:
“XIV. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS
1. General Fund – The fund balance reserve in the General Fund should equal ninety (90) days
or 25% of annual budgeted General Fund operating expenditures. 2013/14 2014/15
reserves are $7.5 ____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.”
Analysis & Recommendations
Staff believes that Council’s desire is to carefully identify and form a policy approach to using
unbudgeted funds realized after year end, similar to the practice that occurred after year end in
November 2013. To accomplish this, staff recommends the following wording. It is substantially
excerpted from Mr. Brainard’s original suggestion.
“IV. OPERATING BUDGET
L. Use of Unanticipated and Unappropriated General Fund Balances ‐ Within 90 days after fiscal
year end, staff will report the projected ending 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;
L:\Division\finance\Share2\GGAF Advisory Board\GGAF Meetings\2014\6.19.14\6.19.14 FB Policy Changes Summary Memo.docx
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; and/or
6. to hold those funds in reserve for future commitments or contingencies that may be
pending.”
RETIREE COLA & TMRS FUNDING LEVEL
Committee Discussions & Member Suggested Wording
The committee discussed a desire to link retiree cost of living adjustments with the funding level of the
City’s retirement plan overall. The committee also discussed revising the target funding wording to
notate that the minimum level of funding is 80% with a goal of funding the retirement plan at 100%.
The committee discussed getting to the 100% target over time.
Specific Wording on Retiree COLA Suggested by Council Member Brainard after the meeting with
proposed edits:
“VI. H. 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 shall 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:
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.”
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Analysis & Recommendations
Staff have reviewed the proposal and had preliminary discussions with TMRS executive staff on how to
implement these targets and the potential financial impacts to the City. The Governmental Accounting
Standards Board has also issued Statement No. 68 that will go into effect for the City’s fiscal year ended
September 30, 2015. TMRS has been proactive in aggressively adjusting its own accounting standards
and audit services to best meet the funding and reporting needs of its participant cities. As of the
current date, new funding levels and reporting adjustments are not yet available from TMRS.
When the updated information becomes available from TMRS, usually in the January/February
timeframe, the options will be fully reviewed and financial impacts assessed. Staff will bring the
proposal to Council at that time for review and possible action.
SURPLUS PROPERTY
Committee Discussions
One of the recommended updates by staff was to further modernize the purchasing policies was to
eliminate the ordinance requirement for all surplus property items, regardless of amount, require
Council approval. Staff recommended establishing a $10,000 threshold before these items require
Council approval. Subsequent to the GGAF meeting, additional wording was suggested that was not
discussed at the committee level.
Specific Wording Suggested by Council Member Brainard after the meeting:
“Section IX. E.2:
City staff will provide a report to the General Government and Finance Committee listing
individual surplus property items liquidated by the City with a value of $1,000.00 and greater.
The report will specify the item, the sales price, the date of sale and the buyer.”
Analysis & Recommendations
The wording suggested is a more detailed item than is typically presented as part of the policy. Staff
recommends that the policy be amended to include a statement as follows:
“Section IX. E.2:
City staff will maintain reports and records of all surplus property dispositions in accordance
with good internal controls.
As a procedural matter, staff recommends meeting this request by adding a page to the quarterly
financial report that lists all surplus items over $1,000 that have been disposed of during the quarter.
The report page will include the item, sales price, date of sale and buyer.
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INTERNAL AUDIT
Committee Discussions
Council Member Brainard also brought forward a proposal to create an Internal Auditor or Internal Audit
function for the City. There was positive discussion among the committee about pursuing this option.
This would be an independent audit function that would report to Council similar to the external
financial auditors. The general consensus was that it needed to be discussed at the dais among Council
members and considered as part of the budget process.
Analysis & Recommendations
An internal auditor or audit function is a GFOA Recommended Best Practice and important tool for
providing good program oversight and a higher level of accountability to citizens. On a practical level,
Georgetown is still a relatively small city to have a full time internal audit position. However, there are
other options to accomplish this goal, such as contracting with an independent firm to perform some of
these services as the City grows into the need for full time staff position may be an option.
Staff recommends that after the new external auditors are hired, Council direct staff to work with the
new auditors and Council to outline the needs and expectations of that function. That direction will be
used to develop a plan and estimated costs to implement that function effectively for Georgetown over
the next two to three years.
City of Georgetown, Texas
SUBJECT:
Presentation, discussion, and direction regarding the phasing, funding, and priorities for the 5-Year Capital
Improvement Plan for Parks, Downtown, Sidewalks and City-wide Facilities – Laurie Brewer, Assistant
City Manager and Micki Rundell, Chief Financial Officer
ITEM SUMMARY:
General Capital Projects planning is a collaborative effort among several departments. Staff has been
meeting since February to discuss projects and funding sources. The five-year plan, and any recommended
changes, will be reviewed at the June 24, 2014 regular Council workshop and included in the five-year
business plan update.
The proposed Parks CIP for 2014/2015 includes funds for the River Trails expansion design, VFW Park
renovation, Founder's Park improvements, Village Park improvements, Blue Hole design, Emerald Springs
improvements, constructing a new splash pad, and the Williams Drive Pool improvements.
The Downtown Master Plan and Infrastructure CIP will address items identified in the Downtown
Master Plan as priorities for Downtown. For 2014/2015 the proposed funds will be used for on-going
funding for general repair and maintenance, ADA sidewalk repairs, streetlights, tree replacement, and
burying downtown utilities. New capital improvements include historic district street signs, design work for
the Grace Heritage Center rehabilitation and design work for a canopy in the library courtyard.
The Sidewalk CIP works in conjunction with the streets department to add appropriate sidewalks and
streetscaping. In 2014/2015 the streets department is requesting to renovate 11th Street between Main and
Rock Streets and 2nd Street between Austin Ave. and College Street. To capitalize on the work that is
already proposed to be completed, this CIP request funds to complete the sidewalks on 11th and 2nd
Streets.
The Fire Stations/Public Safety CIP for 2014/2015 requests funds for the Fire Station 6 ESD partnership
and for the emergency warning system. The General and Utilities Facilities CIP requests funds for the
conservation department's facility at the Westside Service Center. The City Center CIP requests funds for
portions of phase I of the City Center project. This includes renovating the current GCAT building, design
work to turn the current Council Chambers into the Visitor Center, design work to renovate the old library,
and design work for the old police station
Funding requests from 2015/2016 through 2018/2019 and beyond are enumerated in the attached capital
improvement plan.
FINANCIAL IMPACT:
See attached Financial Impact table.
SUBMITTED BY:
Laurie Brewer, ACM and Micki Rundell, CFO
ATTACHMENTS:
Description Type
GCP Financial Impact Cover Memo
General Capital Projects CIP Cover Memo
FINANCIAL IMPACT:
2014/15
Parks $ 2,882
Downtown MP & Infrastructure $ 765
Sidewalks & Downtown Elec. Inf. $ 500
Fire Stations/Public Safety $ 1,200
Facilities - General & Utility $ 750
Facilities - Downtown West Repurposing $ 1,680
TOTALS $ 7,777
Cash CO GO Albs Other Total
$ - $ 1,207 $ 1,400 $ - $ 275 $ 2,882
$ 365 $ - $ - $ - $ 400 $ 765
$ - $ 500 $ - $ - $ - $ 500
$ - $ 250 $ - $ - $ 1,600 $ 950
$ - $ - $ - $ - $ 1,500 $ 750
$ 130 $ 400 $ - $ 1,150 $ - $ 1,680
$ 495 $ 2,357 $ 1,400 $ 1,150 $ 3,775 $ 7,527
C ITY OF G EORGETOWN, TEXAS
C APITAL I MPROVEMENT P LAN
F ISCAL Y EAR 201 4 - 1 5
General Government and Finance Advisory Board
June 19, 2014
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Table of Contents
Downtown Master Plan
Introduction ........................................................................................ 01
Project List ......................................................................................... 03
Sidewalks
Introduction ........................................................................................ 06
Project List ......................................................................................... 08
Parks
Introduction ........................................................................................ 10
Project List ......................................................................................... 12
Public Safety, General Facilities & Downtown Facilities
Introduction ........................................................................................ 15
Project List ......................................................................................... 17
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Downtown Master Plan
Introduction
A general Capital Improvement Plan (CIP) is presented for the coming fiscal year to
implement infrastructure and facilities projects contemplated in the Downtown Master
Plan adopted by City Council in 2014. The downtown projects incorporate
recommendations from the Arts and Culture Board, the Parks and Recreation Board,
the Convention and Visitors Bureau Board, the Library Board, the Main Street Advisory
Board, and the Historic and Architectural Review Commission, and work to continue
developing Georgetown as a Signature Destination.
The 2014/15 Downtown CIP includes continuing funding for general repair and
maintenance, Americans with Disability Act (ADA) access improvements for sidewalks
in the downtown overlay district, and to continue placing utilities underground (funded in
the Utility CIP).
Grace Heritage Church also requires extensive renovations. Almost the entirety of the
siding needs to be replaced to ensure its continued use. The Georgetown Heritage
Society is aware that this renovation is needed, and staff is working to ensure the
Heritage Society’s new lease on Grace Heritage Church continues to support tourism
and historic preservation as Georgetown continues to develop into a Signature
Destination.
Additional requests for 2014/15 are:
• A tree replacement program to ensure that as trees are removed in the
downtown overlay district, they are replaced appropriately;
• Recurring funding to extend street lights throughout the overlay district;
• Adding historic district blade signs at all intersections in the downtown and old
town overlay districts;
• Design and engineering work for a canopy on the north side courtyard of the
library; and
• Purchase of the parking lot at Founders Park/Grace Heritage Center (previously
leased).
The major sidewalk developments planned for downtown in FY 2014/15 are along 2nd
Street from Austin Avenue to College Street to coincide with the street rehabilitation and
VFW Park renovations. The 11th Street sidewalks will also be redeveloped to coincide
with the 11th Street renovation.
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2014/15 2015/16 2016/17 2017/18 2018/19 Total
(Thousands of dollars)
Projected Annual Project Cost 741$ 1,062$ 1,487$ 487$ 487$ 4,264$
Bond Issuance Cost 1 3 7 - - 11
Sources of Funding
Certificates of Obligation 195 488 987 - - 1,670
Convention & Visitors Bureau 13 - - - - 13
Electric Revenues 340 415 340 340 340 1,775
Downtown TIRZ 194 162 167 147 147 817
City of Georgetown, Texas
Downtown Improvements
2014/15 to 2018/19
The Downtown five year Capital Improvement Program funding comes from a combination of cash contributions, debt
funding and interest income. Actual amount of debt issues will be determined upon project timing and available and
previously unallocated funds (previous year-end excess funds).
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Prior
Project Year 14/15 15/16 16/17 17/18 18/19
(Thousands of dollars)
Downtown Electric*240$ 340$ 415$ 340$ 340$ 340$
Downtown Master Plan 5 401 647 1,147 147 147
Totals 245$ 741$ 1,062$ 1,487$ 487$ 487$
*Less: Downtown Electric is funded and
budgeted in the Electric department capital fund 340 415 340 340 340
Net projects from General Capital
Project Fund.401$ 647$ 1,147$ 147$ 147$
Projected
City of Georgetown, Texas
Downtown Improvements
2014/15 to 2018/19
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Responsible Division: Georgetown Utility Systems
Financial Plan (thousands of dollars) :
Prior Budget
Year 14/15 15/16 16/17 17/18 18/19 Future Total
240 340 415 340 340 340 - 2,015
Description :
Funding Sources :
Funded with Electric operating revenues.
14/15 15/16 16/17 17/18 18/19
Underground Electric 300 300 300 300 300
Pedestrian Signal - 75 - - -
Street Lights 40 40 40 40 40
Notes:
City of Georgetown, Texas
Capital Improvement Projects
Downtown Electric*
Subprojects (000):
Photo / Map Placeholder
Projected
In an effort to expand successful retail opportunities beyond the 9-block core of the square, antique street lights will be
installed throughout the overlay district in conjunction with streetscape projects.A tree mitigation program is needed to
ensure that as trees are removed in the downtown overlay district,they are replaced appropriately.To ensure safety on
Austin Ave., the City will install a pedestrian signal at the intersection of Austin Ave. and 6th St. to help protect people as
they cross from downtown to restaurants north of the square.To continue to improve the appeal and usability of
Downtown, The City will perennially work to move utilities underground.
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Responsible Division: Downtown and Community Services
Financial Plan (thousands of dollars) :
Prior Budget
Years 14/15 15/16 16/17 17/18 18/19 Total
5 401 647 1,147 147 147 2,494
Description :
Funding Sources :
Funded with tax-spported Certificates
of Obligation bonds, Parkland
Dedication fees and TIRZ revenues.
14/15 15/16 16/17 17/18 18/19
Red Poppy Canopy 10 100 - - -
Tree Replacement 22 22 22 22 22
General Repair & Maintenance 25 25 25 25 25
Grace Heritage Church Rehab.25 250 - - -
Historic District Street Signs 25 - - - -
ADA Sidewalks Repair 100 100 100 100 100
Grace Heritage Church - Founders Park Parking Lot 194 - - - -
Trailhead/Cantilevered Bridge - 50 500 - -
Signature Gateway - 100 - - -
Mast Arms - - 500 - -
Artist Incubator - - - - -
Notes:
Subprojects :
City of Georgetown, Texas
Capital Improvement Program
Downtown Master Plan
Projected
Photo / Map Placeholder
To further develop Georgetown as a Signature Destination, adding historic district blade signs at all intersections in the
downtown and old town overlay districts will help ensure residents and visitors alike understand they are entering the
districts. Additionally, in an effort to create more outdoor seating, funding for designing a canopy on the north side
courtyard of the library is being requested. Future plans include installing mast arms at major intersections, developing
signature gateway signage, constructing a cantilevered bridge and trailhead on Austin Avenue, constructing an artist
incubator to compliment the Georgetown Art Center, and to develop the Rock Street pedestrian corridor.
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Sidewalks
Introduction
A general capital improvement plan is presented for the coming fiscal year to implement
infrastructure and facilities projects contemplated in the forthcoming sidewalk
prioritization plan. Currently, the City is developing a citywide sidewalk prioritization
schedule. Once the plan is completed, staff will reprioritize sidewalk projects for future
years. A portion of the sidewalk prioritization schedule includes sidewalks related to the
downtown master plan, which emphasize pedestrian circulation and trails to enhance
pedestrian activity in the area. In future years, sidewalk improvements will extend
beyond the downtown core, with a focus on walkability, as well as address accessibility
and safety issues.
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2014/15 2015/16 2016/17 2017/18 2018/19 Total
(Thousands of dollars)
Projected Annual Project Cost 500$ 1,250$ 3,500$ 1,000$ 1,250$ 7,500$
Bond Issuance Cost 4 9 25 7 9 54
Sources of Funding
Tax-supported Certificates of Obligation 504 1,259 3,525 1,007 1,259 7,554
City of Georgetown, Texas
Sidewalks
2014/15 to 2018/19
The Downtown five year Capital Improvement Program funding comes from a combination of cash contributions, debt
funding and interest income. Actual amount of debt issues will be determined upon project timing and available and
previously unallocated funds (previous year-end excess funds).
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Prior
Project Year 14/15 15/16 16/17 17/18 18/19
(Thousands of dollars)
Sidewalks 896$ 500$ 1,250$ 3,500$ 1,000$ 1,250$
Totals 896$ 500$ 1,250$ 3,500$ 1,000$ 1,250$
City of Georgetown, Texas
Sidewalks
2014/15 to 2018/19
Projected
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Responsible Division: Downtown and Community Services/Transportation Services
Financial Plan (thousands of dollars) :
Prior Budget
Year 14/15 15/16 16/17 17/18 18/19 Future Total
896 500 1,250 3,500 1,000 1,250 8,396
Description :
Funding Sources :
Tax-supported Certificates of Obligation
14/15 15/16 16/17 17/18 18/19
11th St. Sidewalks 250 - - - -
2nd St. 250 - - - -
Main St.- 250 2,500 - -
Rock St. Pedestrian Corridor - - - - 250
Other Sidewalks (study in progress)- 1,000 1,000 1,000 1,000
Notes:
Photo / Map Placeholder
City of Georgetown, Texas
Capital Improvement Projects
Sidewalks
Subprojects :
Projected
Currently, the City is developing a citywide sidewalk prioritization schedule. Once the plan is completed, staff will
reprioritize sidewalk projects for future years. A portion of the sidewalk prioritization schedule includes sidewalks related
to the downtown master plan, which emphasize pedestrian circulation and trails to enhance pedestrian activity in the
area. In future years, sidewalk improvements will extend beyond the downtown core, with a focus on walkability, as well
as address accessibility and safety issues.
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Parks
Introduction
In November 2008, voters authorized $35.5 million in general obligation bonds for Parks
and Recreation projects. The projects and related timings are being evaluated in future
years. The City has issued $7.5 million of this debt for Parks and Recreation projects.
Some of the major bond funded projects include purchase of land for a future west side
park, hike and bike trail expansion, planning and design for Garey Park, as well as
master planning and design for improvements to San Gabriel Park. These projects are
based on the Parks Master Plan and direction from the Parks Advisory Board and City
Council. In addition, there are several park renovation projects planned including
Williams Drive Pool, Emerald Springs Park, and VFW Park. Projects not part of the
general obligation bond program are generally funded through tax-supported
Certificates of Obligations, dedicated park fees or general fund revenues.
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2014/15 2015/16 2016/17 2017/18 2018/19 Total
(Thousands of dollars)
Projected Annual Project Cost 2,882$ 5,235$ 27$ 1,093$ 260$ 9,497$
Bond Issuance Cost 8 37 - 8 2 55
Sources of Funding
Certificates of Obligation 1,158 1,272 27 94 262 2,813
General Obligation Bonds, New - 4,000 - 1,007 - 5,007
General Obligation Bonds (prev. issued)1,400 - - - - 1,400
Parkland Dedication Fees 332 - - - - 332
City of Georgetown, Texas
Parks Capital Improvement Program
2014/15 to 2018/19
The Parks and Recreations five year Capital Improvement Program funding comes from a combination of cash
contributions, debt funding and interest income.Actual amount of debt issues will be determined upon project timing
and available and previously unallocated funds (previous year-end excess funds).
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Prior
Project Year 14/15 15/16 16/17 17/18 18/19
(Thousands of dollars)
Park Improvements
Park Improvements 623$ 1,482$ 1,235$ 27$ 93$ 260$
Park Capital
River Trails Expansion - 100 1,000 - 1,000 -
VFW Park - 1,300 - - - -
San Gabriel Park Improvements 1,000 - 2,000 - - -
Westside Park 50 - 500 - - -
Open Space / Preservation - - 500 - - -
Garey Park 1,500 - - - - -
Totals 3,173$ 2,882$ 5,235$ 27$ 1,093$ 260$
Projected
City of Georgetown, Texas
Parks Capital Improvement Projects
2014/15 to 2018/19
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Responsible Division: Downtown & Community Services
Financial Plan (thousands of dollars) :
Prior Budget
Years 14/15 15/16 16/17 17/18 18/19 Total
623 1,482 1,235 27 93 260 3,720
Description :
Funding Sources :
Funded with cash, parkland dedication funds, and
tax-supported Certicates of Obligation.
14/15 15/16 16/17 17/18 18/19
Founder's Park 70 - - - -
Village Park 75 - - - -
Blue Hole Park 82 766 - - -
Emerald Springs Park 105 - - - -
Splash Pads 300 - - - -
Williams Drive Pool 850 - - - -
Randy Morrow Trail - 25 - - -
McMaster Park - 193 - - -
New Park Development - 200 - - 200
Other Parks - 51 27 93 60
Notes:
Subprojects :
City of Georgetown, Texas
Capital Improvement Program
Park Improvements
Projected
Photo / Map Placeholder
The Parks and Recreation Department, as well as the Parks & Recreation Board, have been developing a
comprehensive list of all parks identifying needed maintenance and repairs, as well as opportunities for new park
development. Priorities identified include renovation of Williams Drive Pool, Emerald Springs Park, Village Park and
Founder's Park. Funding is also identified to begin the planning phase for future improvements to Blue Hole Park and a
splash pad in Southeast Georgetown.
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Responsible Division: Downtown & Community Services
Financial Plan (thousands of dollars) :
Prior Budget
Years 14/15 15/16 16/17 17/18 18/19 Total
1,500 1,400 4,000 - 1,000 - 7,900
Description :
Funding Sources :
2014/15 projects funded with voter authorized
General Obligation bonds issued in 2013. Future
projects will require new debt.
14/15 15/16 16/17 17/18 18/19
River Trails Expansion 100 1,000 - 1,000 -
VFW Park 1,300 - - - -
San Gabriel Park Improvements - 2,000 - - -
Westside Park - 500 - - -
Open Space / Preservation - 500 - - -
Garey Park - - - - -
Notes:
Photo / Map Placeholder
City of Georgetown, Texas
Capital Improvement Program
2008 Park Bond Improvements
Subprojects :
Projected
In 2008, the citizens of Georgetown passed bonds specifically related to Parks Projects identified in the Georgetown
Parks, Recreation and Trails Master Plan. This phase of improvement includes of renovations to VFW Park. In
addition, the Parks and Recreation Department will begin planning and design for San Gabriel Park improvements and
trail improvements.
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Public Safety, General & Downtown Facilities
Introduction
Public Safety
The plan includes several major projects to enhance public safety services and
response capability. The Public Safety Operations and Training Center (PSOTC) is
already underway and is expected to be complete by late Fall 2014. This facility was
funded by general obligation bonds approved by voters in May 2011. A tactical building
and range will be considered and added in future years. As the City grows and expands
its partnership with Emergency Services District #8 (ESD), additional fire stations will be
required. Two potential fire stations, one to be funded in partnership with the ESD are
included; however, these projects are still early in the planning stages. The Emergency
Warning and Notification System and response software for the City and surrounding
service areas is included at an estimated $1,000,000 in 2014/15. This system includes
both external warning sirens and an electronic notification system for the community. It
is anticipated that federal grants will fund this project.
General Facilities
The General Capital Projects schedule includes a $750,000 West Side Service Center
Conservation Department component to meet the needs of the growing customer base
on the west side of the City. Additionally, the schedule includes a request for a new
data center to be housed in the PSOTC, funds for a Georgetown Municipal Complex
(GMC) remodel, and funds for a GMC expansion in 2016/17.
Downtown Facilities
With the adoption of the Downtown Master Plan, the City is working towards providing
citizens with: an expanded outdoor public space for special events and gatherings;
indoor public space for meetings and small performances; an outdoor amphitheater;
additional public parking; consolidated city facilities; and renewed investment on the
west side of downtown. With the Police Department leaving downtown for the new
PSOTC, there will be additional city-owned vacant buildings downtown. In FY 2014/15,
the City Center Plan calls for renovating the GCAT building and the current Municipal
Court offices. Funding will also be required for developing plans to renovate the former
Police Station and former library, and the public improvements and festival space for the
City Center.
Finally, to help increase the availability of public parking, a parking garage feasibility
study is planned for 2014/2015.
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2014/15 2015/16 2016/17 2017/18 2018/19 Total
(Thousands of dollars)
Projected Annual Project Cost 3,730$ 11,200$ 8,944$ 300$ 2,500$ 26,674$
Bond Issuance Cost 10 46 63 2 18 139
Sources of Funding
Sale Proceeds - City Owned Facilities 1,150 2,220 - - - 3,370
Self-supporting Certificates of Obligation 755 2,414 3,323 - - 6,492
Tax-supported Certificates of Obligation 655 4,112 5,684 302 2,518 13,271
Interlocal Participation 300 2,500 - - - 2,800
CVB Fund 130 - - - - 130
Grants 750 - - - - 750
City of Georgetown, Texas
General Capital Improvement Program
2014/15 to 2018/19
The Facilities five year Capital Improvement Program funding comes from a combination of cash contributions, debt
funding and interest income. Actual amount of debt issues will be determined upon project timing and available and
previously unallocated funds (previous year-end excess funds).
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Prior
Project Year 14/15 15/16 16/17 17/18 18/19
(Thousands of dollars)
Public Safety Facilities -$ 1,300$ 5,500$ 300$ 300$ 2,500$
General Facilities 4,000 750 2,900 3,300 - -
City Center 95 1,280 2,800 5,344 - -
Parking 750 400 - - - -
Totals 4,845$ 3,730$ 11,200$ 8,944$ 300$ 2,500$
City of Georgetown, Texas
General Capital Improvement Projects
2014/15 to 2018/19
Projected
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Responsible Division: Police & Fire
Financial Plan (thousands of dollars) :
Prior Budget
Year 14/15 15/16 16/17 17/18 18/19 Total
- 1,300 5,500 300 300 2,500 9,900
Description :
Funding Sources :
Tax-supported Certificates of Obligations,
grants, and interlocal contributions
14/15 15/16 16/17 17/18 18/19
Fire Station 6 ESD 300 2,500 - - -
Fire Station 7 Eastside - - 300 300 2,500
Emergency Warning System & Signaling Software 1,000 - - - -
PSOTC Tactical Building and Range - 3,000 - - -
Notes:
Fire Station 6 costs to be funded in participation with the ESD #8.
Subprojects :
City of Georgetown, Texas
Capital Improvement Projects
Public Safety Facilities
Projected
As the City grows and expands its partnership with Williamson County Emergency Services District #8 (ESD #8),
additional fire stations will be required. Two future fire stations are in early planning stages. Station 6 will be in the
northwest service area and will be done in partnership with ESD #8, while the eastside station is projected to begin
design in 2016/17. The Emergency Warning and Notification System and software for the City and surrounding service
area is included at an estimated $1,000,000 in 2014/15. This system includes external warning sirens and software for
the community that will be partially funded by federal grants.
Photo / Map Placeholder
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Responsible Division: Georgetown Utility Systems, Finance & Administration
Financial Plan (thousands of dollars) :
Prior Budget
Year 14/15 15/16 16/17 17/18 18/19
4,000 750 2,900 3,300 - - 10,950
Description :
Funding Sources :
Self-supporting and tax-supported
Certificates of Obligations
14/15 15/16 16/17 17/18 18/19
Westside Service Center Conservation 750 - - - -
Data Center at PSOTC (city-wide redundancy)- 1,000 - - -
GMC Remodel - 1,900 - - -
GMC Expansion - - 3,300 - -
Notes:
Photo / Map Placeholder
City of Georgetown, Texas
Capital Improvement Projects
General Facilities
Subprojects :
Projected
Westside Service Center Conservation - The proposed utility annex will permanently house Conservation staff,
vehicles, and equipment. The facility will also be used to further Conservation's educational and research endeavors.
Data Center at PSOTC - A second data center makes the City less vulnerable to an IT system failure, with improved
system availability all City departments will benefit. GMC Remodel - This project is to remodel the existing front end
offices of the GMC to improve space utilization, functionality, and customer interaction. GMC Expansion - This project
includes the construction of a new fleet facility along with offices and/or additional shop space and work bays to
accomodate operations. The existing fleet facility will be used for Transportation and additional covered storage.
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Responsible Division: Downtown and Community Services / Finance & Administration
Financial Plan (thousands of dollars) :
Prior Budget
Year 14/15 15/16 16/17 17/18 18/19 Total
95 1,280 2,800 5,344 - - 9,519
Description :
Funding Sources :
Certificates of Obligations, CVB funds and
proceeds from the sale of City facilities.
14/15 15/16 16/17 17/18 18/19
GCAT Redesign 600 - - - -
Municipal Court/CVB Redesign 130 - - - -
Former PD Renovation 250 1,100 - - -
Former Library Renovation 300 1,700 - - -
Festival/Public Space - - 3,500 - -
Play Areas - - 244 - -
Plaza - - 750 - -
Amphitheater - - 250 - -
Tensile Structures - - 600 - -
Notes:
Subprojects :
City of Georgetown, Texas
Capital Improvement Projects
City Center
Projected
With the adoption of the Downtown Master Plan, the City is working towards providing citizens with an expanded
outdoor public space for special events and gatherings, indoor public space for meetings and small performances, an
outdoor amphitheater, additional public parking, consolidated city facilities, and sparking renewed investment on the
west side of downtown. This will also include expanding the audio/visual resources available in the library for the public
and renovating Grace Heritage Church.
Photo / Map Placeholder
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Responsible Division: Downtown and Community Services
Financial Plan (thousands of dollars) :
Prior Budget
Year 14/15 15/16 16/17 17/18 18/19 Future Total
750 400 - - - - 7,875 9,025
Description :
Funding Sources :
Previously issued tax-supported Certificates of
Obligation; possible partnerships
14/15 15/16 16/17 17/18 18/19
Parking Garage Study 400 - - - -
Notes:
Subprojects :
City of Georgetown, Texas
Capital Improvement Program
Parking
Projected
The City is working to complete an improved surface lot on the corner of MLK and 8th for short-term parking needs.
Structured parking will improve the availability of parking for festivals, as well as for increased business as a long-term
solution. This project would determine the feasibility of a structured parking facility on city-owned property. Various
methods of partnerships will be considered to address costs, access and use.
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