HomeMy WebLinkAboutAgenda_GGAF_06.27.2018Notice of Meeting for the
General Gov ernment and Finance Adv isory Board
of the City of Georgetown
June 27, 2018 at 4:30 PM
at Friends Room, Georgetown Public Library
The City o f G eo rgeto wn is committed to comp lianc e with the Americans with Dis abilities Ac t (ADA). If yo u
req uire as s is tanc e in participating at a p ublic meeting d ue to a disability, as d efined und er the ADA, reas onab le
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Office, at leas t three (3) days prior to the sc hed uled meeting d ate, at (512) 930-3652 o r City Hall at 113 Eas t 8th
Street fo r add itional info rmation; TTY us ers ro ute through Relay Texas at 711.
Regular Session
(This Regular S es s io n may, at any time, b e rec es s ed to convene an Exec utive S es s io n fo r any p urpose
authorized b y the Op en Meetings Act, Texas Go vernment Co d e 551.)
A Draft Minutes for May 23, 2018
B Dis cus s ion and pos s ible actio n to recommend Counc il adopt c hanges to the Fis c al and Bud getary Polic y
during the annual bud get adoptio n p ro ces s for Fis c al Year 2019 -- Leigh Wallac e, Financ e Directo r
C Staff p res entatio n and d is cus s io n o n the City’s update proc es s for the 2030 C o mp rehens ive Plan. – Nat
Waggoner, Long Range Planning Manager
CERTIFICATE OF POSTING
I, Shelley No wling, C ity S ecretary fo r the C ity of Geo rgeto wn, Texas , d o hereby c ertify that this Notice of
Meeting was p o s ted at City Hall, 113 E. 8th Street, a p lace read ily acc es s ible to the general p ublic at all times ,
on the ______ d ay o f __________________, 2018, at __________, and remained so p o s ted fo r at leas t 72
c o ntinuo us ho urs p receding the sc heduled time o f s aid meeting.
____________________________________
S helley No wling, City Sec retary
Page 1 of 102
City of Georgetown, Texas
Government and Finance Advisory Board
June 27, 2018
SUBJECT:
Draft Minutes fo r May 23, 2018
ITEM SUMMARY:
Draft Minutes fo r May 23, 2018
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Sue Smith, Adminis trative As s is tant
ATTACHMENTS:
Description Type
DRAFT Minutes for May 23, 2018 Cover Memo
Page 2 of 102
Minutes of Meeting of the
GENERAL GOVERNMENT AND FINANCE ADVISORY BOARD (GGAF)
City of Georgetown, Texas
May 23, 2018
The General Government and Finance Advisory Board met on Wednesday, May 23, 2018 at 4:30 PM
in the Friends Room of the Library, located at 402 West 8th Street, Georgetown, Texas.
The City of Georgetown is committed to compliance with the Americans with Disabilities Act
(ADA). If you require assistance in participating at a public meeting due to a disability, as defined
under the ADA, reasonable assistance, adaptations, or accommodations will be provided upon
request. Please contact the City Secretary’s Office, at least three (3) days prior to the scheduled meeting
date, at (512) 930-3652 or City Hall at 113 East 8th Street for additional information; TTY users route
through Relay Texas at 711.
Board Members Present: City Staff Present:
Tommy Gonzalez, Chair
James Bralski, Vice Chair
David Morgan, City Manager
Laurie Brewer, Assistant City Manager
Chere’ Heintzmann, Secretary
Stu McLennan
Kevin Pitts
Leigh Wallace, Finance Director
Paul Diaz, Budget Manager
Elaine Wilson, Controller
Christi Rawls, Assist Controller
Chris Bryce, IT Director
James Davis, IT Operations Manager
Tadd Phillips, Human Resources Director
Nikki Ross, HR Benefits and Wellness
Sue Smith, Finance Admin
Others Present :
Legislative Regular Agenda
Tommy Gonzalez, Chair called the meeting to order at 4:31 p.m.
Welcome to newly elected council member, Kevin Pitts, to the GGAF Board.
A Review minutes from the April 25, 2018 General Government and Finance Advisory Board
Meeting
Sue Smith, Board Liaison
Board did not have any comments regarding the minutes from April 25, 2018 meeting.
Motion to approve the minutes by Stu McLennan, second by James Bralski. Approved 5-0 (All
members were present.)
Page 3 of 102
B Presentation and overview of the Employee Compensation, Benefits, and Wellness update
presented by Tadd Phillips, Human Resources Director.
Mr. Phillips gave an overview of how merit, market, and step programs work at the City.
Compensation and Benefits are a large part of the city budget. A modest increase in the
premiums will be needed in FY2019.
The number one contributor of turnovers of employees is retirement.
Mr. Phillips highlighted a total compensation letter that will be sent out to each city employee.
David Morgan added to the presentation with the information about how the benefits for the
police and fire departments work. There are 2 police associations within the Georgetown
Police Department. The Fire Department have their own associations. The Board discussed
reasons fire and police move to other local areas for employment.
HR has been taking bids for all health benefits for 2019. The results will be brought before
the GGAF Committee at the August, 2018 meeting.
TMRS—There are 177 retirees currently in the program. The funded ratio is healthy. The
Board discussed Mr. Phillip’s data relating to retiree cost of living adjustments. The board
members encouraged the City to continue to increase employee participation in the ICMA-
RC deferred compensation plan.
C Consideration and possible action to approve the appointment of Weaver and Tidwell as
the external audit agency.
A presentation was made by Elaine Wilson, Controller. It was decided to search 1 year early
for the audit agency, as they wanted the appointment of the agency prior to an upcoming
software project. The audit search committee looked for qualifications and cost. They
decided that Weaver and Tidwell would be the best choice. The preparation of the CAFR is
included in this agreement.
The motion was made by Stu McLennan with a 2nd made by Chere' Heintzmann to recommend
the appointment of Weaver and Tidwell for the external audit to be moved on to the City
Council agenda. All members agreed and this item will go on to Council for final approval.
D Consideration and possible action to approve the Professional Services Agreement with
Freese and Nichols, Inc. of Austin, Texas for the Facilities Efficiency Study 2018.
A presentation was made by Laurie Brewer, Assistant City Manager, explaining that many of
the buildings are at capacity and are in need of remodeling or re-design. The Fleet Shop is at
capacity and there is a concern about having enough space for the employees to work safely.
Parks and GUS were also included in this list. This needs to be done now. The overview
summary recommends that $112,000.00 be used to make the recommendations.
The motion was made by James Bralski and 2nd by Chere' Heintzmann for the approval of
the Professional Services Agreement. It was a unanimous decision and this item will move
forward to the City Council agenda.
Page 4 of 102
There were no additional items or comments.
Councilman Tommy Gonzalez called for a motion for the meeting to be adjourned. The
motion was made by Stu McLennan and 2nd by Chere' Heintzmann. All members voted to
adjourn.
The meeting was adjourned at 6:00PM.
__________________________________ ____________
Tommy Gonzalez Date
Board Chair
__________________________________ ____________
Chere’ Heintzman Date
Board Secretary
__________________________________ ____________
Sue Smith Date
Board Liaison
Page 5 of 102
City of Georgetown, Texas
Government and Finance Advisory Board
June 27, 2018
SUBJECT:
Disc ussion and p o s s ib le ac tion to rec o mmend C o uncil ad o p t changes to the F is c al and Budgetary Po licy
d uring the annual b udget ad o p tion proc es s fo r F is cal Year 2019 -- Leigh Wallac e, F inance Direc tor
ITEM SUMMARY:
Eac h year the Polic y is adminis tratively amended to recognize d ate and amount c hanges within the text; and
to ad d res s any new financial o r regulato ry requirement that may need to be added. Other amend ments may
b e rec o mmend ed to c larify wording o r to further d efine a particular polic y area.
Potential c hanges for cons id eration and disc us s io n are no ted in the overview p res entation. The full version
o f the p o licies with tracked c hanges is provided, as well as a clean c o p y. The purp o s e of this item is to
d is cus s and rec eive feedbac k o n the proposed c hanges to the F is cal and Bud getary Polic y fo r the
upc o ming budget.
The p urpose of the F is cal and Budgetary Polic y is to provid e the framework fo r financ ial operatio ns o f the
City and to ens ure p rudent s teward s hip, financ ial p lanning and ac countab ility. T he b o nd rating agencies
and external aud itors are the p rimary external parties that review the polic ies and compliance.
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Leigh Wallace, Financ e Directo r
ATTACHMENTS:
Description Type
Fis cal and Budgetary Policy 2019 Clean Copy Cover Memo
Fis cal and Budgetary Policy 2019 Tracked Cover Memo
FY19 Fis cal and Budgetary Policies GGAF Pres entation Cover Memo
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FY2019 Annual Budget
Fiscal and Budgetary Policy
Adopted: September 11, 2018
Contents
I. PURPOSE............................................................................................................................................ 2
II. FUND STRUCTURE AND BASIS OF BUDGETING ....................................................................................... 2
III. OPERATING BUDGET ........................................................................................................................... 3
IV. REVENUE MANAGEMENT .................................................................................................................... 6
V. EXPENDITURE MANAGEMENT .............................................................................................................. 9
VI. STAFFING AND COMPENSATION ......................................................................................................... 13
VII. FUND BALANCE POLICIES ................................................................................................................... 14
VIII. LONG‐TERM LIABILITY RESERVES ........................................................................................................ 15
IX. BUDGET CONTINGENCY PLAN ............................................................................................................ 15
X. CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET ............................................................................... 16
XI. CAPITAL MAINTENANCE AND REPLACEMENT ....................................................................................... 17
XII. ACCOUNTING, AUDITING, AND FINANCIAL REPORTING ......................................................................... 19
XIII. ASSET MANAGEMENT ....................................................................................................................... 19
XIV. DEBT MANAGEMENT ........................................................................................................................ 21
XV. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS .................................................................. 24
XVI. INTERNAL CONTROLS ........................................................................................................................ 28
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FY2019 Annual Budget
I. PURPOSE
The City of Georgetown is committed to financial management through integrity, prudent stewardship, planning,
accountability, transparency 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, operational and capital budgeting, revenue and expenditure
management, financial reporting, internal controls, investment and asset management, debt management and
forecasting. This is done in order to:
A. Demonstrate to the residents 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, Parks, as well as
Solid Waste Management.
Special Revenue Funds (SRF) account for specific revenues that are legally
restricted for specified purposes. Examples include Tourism, Parkland
Dedication, Library Donations, Animal Services Donations, and Street
Maintenance Sales Tax.
Debt Service Fund is used to account for the payment of general long‐term debt
principal and interest.
Capital Project Funds are used to account for the acquisition or construction of
major capital facilities other than those financed by enterprise activities.
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FY2019 Annual Budget
Proprietary Funds: Internal Service Funds account for goods or services provided by one internal
department to another. The City uses this system to recognize cost for fleet
replacement and maintenance, facility maintenance, computer replacement
and maintenance and employee health insurance costs.
Enterprise Funds include the City’s business like activities including all the utility
funds and the airport.
Basis of Accounting and Basis of Budgeting
The City 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 the liabilities 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.
Proprietary 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.
III. 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. Form of Government – The Charter (Section 1.03) established a Council‐Manager Government wherein the
City vests power in the City Council to “enact legislation, adopt budgets, determine policies, and appoint the
City Manager who shall execute the laws and administer the government of the City.”
B. Comprehensive Plan – The Charter (Section 1.08) requires that the City Council “establish comprehensive
planning as a continuous and ongoing governmental function in order to promote and strengthen the existing
role, processes and powers of the City of Georgetown.” The current comprehensive plan is the 2030 Plan
adopted in 2006.
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FY2019 Annual Budget
C. 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.”
1. Proposed Budget – A proposed budget shall be prepared by the City Manager with participation of
all of the City’s Directors within the provision of the Charter and the 2030 Plan.
a. The budget shall include four basic segments for review and evaluation:
Revenue
Personnel Costs
Operations and Maintenance Costs
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 resident 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 and approved budgets will be filed with the City Secretary when it is
submitted to the City Council and will be available on the City’s website.
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.
D. 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 III. C.
Preparation of 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.
E. 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.
F. Control and Accountability – Each 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
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FY2019 Annual Budget
limitations. 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 from
or to the Personnel line items require approval of the Finance Director and City Manager. All other
transfers of appropriation or budget amendments require either City Council or City Manager approval
as outlined in Section III.G Budget Amendments and Section V.C.4 Use of Excess Salary Savings.
G. Budget Amendments – The Charter (Section 6.04) and the Local Government Code 102.009 and 102.010
provide a method to amend the budget for emergency appropriations and municipal purposes. The
City Council may authorize, with a majority plus one vote, an amendment to the original budget. This
may be done in cases of grave public necessity, or to meet an unusual and unforeseen condition that
was not known at the time the budget was adopted. 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 Finance Director must certify availability of revenues or funding sources prior to adoption.
If needed, the City will amend the budget at year end for increased revenue and for expenditures
that exceeded budgeted amounts. The City may also amend the budget for any capital project timing
adjustments from prior year, as well as any other known adjustments needed and approved at that
time.
H. 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 items such as insurance deductibles, unexpected legal
expenses and equipment repairs.
I. Use of Unanticipated and Unappropriated General Fund Balances – Within 90 days after fiscal year end,
staff will report the projected General Fund balance to Council. In the event that unexpected,
unbudgeted amounts are determined to be available in the General Fund after year end, these funds
may be used for any of the following purposes, as approved by the City Council:
1. to fund capital projects;
2. to fund equipment purchases in lieu of issuing debt;
3. to reduce outstanding City debt, including bonded indebtedness and unfunded pension liabilities;
4. to fund contingent liabilities such as the benefit payout reserve, cemetery trust fund, and similar
obligations of the City;
5. to take other steps to reduce property tax rates or mitigate any future increases;
6. to hold those funds in reserve for future commitments or contingencies that may be pending,
and/or;
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FY2019 Annual Budget
7. to fund an Economic Stability Reserve of annual General Fund operating expenditures according to
Section XV, A, 2, b, Economic Stability Reserve.
IV. 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.
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 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 Recreation 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.
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FY2019 Annual Budget
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.
4. Property Tax Revenues – Annually, the City will forecast property tax revenue as part of the budget
process. Certified Assessed Value Reports from the Williamson Central Appraisal District are used to
forecast property tax. The City will comply with State law regarding publication notices and Truth in
Taxation requirements.
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 five years on a rotating schedule 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 Activity Rates – The City will review and adopt utility rates as needed to generate revenues
required to fully cover operating expenses, meet the legal requirements of all applicable bond
covenants, and provide for an adequate level of working capital. Utility rates will be reviewed
annually as part of the budget process. A rate study will be conducted every 3 years to review rate
methodology and ensure revenues will meet future needs. All utility rates will be based on
standardized cost of service methodologies and conservation goals.
Water Rates will recognize at least 75% of the fixed cost of service, including debt payments
and ROI costs, within the monthly base charge determined by meter size. Volumetric charge
will recognize the balance of fixed costs not included in the base rate, plus all variable costs
associated with procuring and treating water.
.
Wastewater Rates are fixed for all residential customers based on the cost of providing
services. Commercial customer rates are fixed and volumetric depending on size and
specifications of each commercial customer.
Electric Rates include 100% of fixed costs within the base rate, and demand rates, with all
variable costs included in the kWh rate. The Power Cost Adjustment (PCA) Factor and
Transmission Cost Adjustment (TCA) Factor are determined by comparing forecasted costs
against actual costs in a budget year, and seek to recover/credit variances within 6 to 12
months. For reference, see Code of Ordinances 13.04.075 and 13.04.080.
Stormwater Drainage Fees are based on a mathematical calculation using impervious cover
and applied in compliance with State Law.
Solid Waste and Environmental Services Rates are based on the wholesale cost of service and
retail incentives for conservation, plus a return to the General Fund for wear and tear of
heavy trucks on streets and for contract administration.
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FY2019 Annual Budget
8. Internal Cost Recovery Fees – Additionally, enterprise activity rates will include transfers to and
receive credits from other funds as follows:
a. General and Administrative Charges – Administrative costs should be charged to all funds for
services of general overhead, such as administration, finance, customer billing, legal and other
costs as appropriate. These charges will be determined through an indirect cost allocation
following accepted practices and procedures and reviewed annually by the City’s external
auditors.
b. Payment for Return on Investment – The intent of this transfer is to provide a benefit to the
citizens for the ownership of the various utility operations they own. For all utilities except for
Electric:
In‐Lieu‐of‐Franchise‐Fee. This transfer, currently 3% of operating revenues generated inside
the City, is consistent with the franchise rates charged to investor owned utilities franchised
to operate within the City.
Return on Investment. The return on investment (ROI) transfer for In‐City utility customers
is currently calculated at 7% of operating revenues for all non‐electric utilities. ROI for water
and sewer customers outside the City is 10% of operating revenues.
The Franchise and Return on Investment for the Electric Utility are both derived from the base
monthly charge gross revenue and kWh sold. For customers inside the City, the franchise fee is
$0.002947/kWh sold, and the Return on Investment is 7% of gross revenue of the base monthly
charge, and $0.007253/kWh sold. For customers outside the City, there is no franchise fee to
the City of Georgetown; however, those customers may be subject to franchise fees in the
jurisdiction in which they reside. Outside the City customers are charged a Return on Investment
equal to 7% of gross revenue of the base monthly charge, and $0.0102/kWh sold.
9. Revenue Monitoring – Received revenues 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.
10. 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 grant applications must be approved by the City Council prior to being submitted to
a granting agency. Prior to submittal to Council, departments will verify that the benefits of the
grant exceed the cost of grant administration and will also provide the required grant forms to
Finance for review in accordance with the Grant Acquisition, Management, and Compliance
Policy. Finance will review and sign the forms which provides detailed information including, but
not limited to, the term of the grant, any matching requirements, the resulting operational
requirements once the grant is discontinued, and a budget request detailing the line items to be
effected, all of which should be included in the Council agenda item packet requesting approval
to apply. The City Council must also authorize acceptance of any grant awards received.
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FY2019 Annual Budget
b. Use of Reserve Funds – The City may authorize the use of reserve funds to potentially delay or
eliminate a proposed bond issue. This may occur due to higher than anticipated fund balances
in prior years, thus eliminating or reducing the need for debt proceeds, or postpone a bond issue
until market conditions are more beneficial or timing of the related capital improvements does
not correspond with the planned bond issue. Reserve funds used in this manner are replenished
upon issuance of the proposed debt.
c. Developer Contributions – The City will require developers who negatively impact the City's utility
capital plans offset those impacts. These policies are further defined within the City's utility line
extension policy and other development regulations.
d. Leases – The City may authorize the use of lease financing for certain operating equipment when
it is determined that the cost benefit of such an arrangement is advantageous to the City.
e. Impact Fees – The City will impose impact fees as allowable under state law for both water and
wastewater services. These fees will be calculated in accordance with statute and reviewed at
least every three years. All fees collected will fund projects identified within the Fee study and
as required by state laws.
V. EXPENDITURE MANAGEMENT
A. Appropriations – The point of budget control is at the department level budget for all funds. The Charter
(Section 6.03) provides that any transfer of appropriation between funds must be approved by the City
Council and that the City Manager, without City Council approval, is authorized to transfer appropriations
among departments, within the same operational division and fund. The City Manager may also authorize
transfer of salary adjustment monies between funds that are budgeted in a citywide account.
B. Expenditure Monitoring – Expenditures and encumbrances will be regularly compared to budget, variances
will be investigated, and any abnormalities will be included in the quarterly report to the City Council.
Projected year‐end expenditures will be reported in the annual budget.
C. 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 – Major Funds with Personnel Budgets will include a vacancy factor of at least 1% of
total fund salaries and related benefits (retirement, FICA, Medicare) to offset salary savings within
the budget. The vacancy factor will be budgeted as a negative expense within the fund. This factor
will be reduced throughout the year as vacant positions are recognized within the department
budget.
Compliance Status – General Fund, Electric Fund, Water Fund and Joint Services Fund FY2019 in
compliance.
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FY2019 Annual Budget
2. Benefit Payout Reserve – The City will establish a benefit payout reserve equal to 15% of the accrued
benefit liability for employees in the General and Joint Services Funds who are currently eligible to
retire. Only terminating employee benefit expenses may be paid from this reserve. This reserve shall
be funded as an offset to the vacancy factor.
Compliance Status – Benefit payout reserve FY2019 in compliance.
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.
D. Special Purpose Funding – In order to support community assistance programs, the City designates specific
funding for special purposes, including Social Services, Children’s Programs, and Public Art. The City reserves
the ability to cap this special purpose funding when necessitated by budget contingency or compliance
issues, such as revenue shortfalls, or other reasons as determined by City Council.
1. Strategic Partnerships for Community Services – The City of Georgetown values partnerships with
organizations that are committed to addressing our communities’ greatest public challenges and has
identified key priorities in the following areas:
Public Safety
Transportation
Housing
Parks & Recreation
Veteran Services
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 Consumer Price Index. If previous funding levels
are higher than the targeted amount, and to avoid significant reductions in levels of funding, the City
Council shall seek to attain this target chiefly through population growth. These funds will be
allocated and paid according to the City Council’s guidelines for such programs.
Compliance Status – FY2019 in compliance.
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.
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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.
E. Purchasing – The City will maintain and regularly review written Purchasing Policies. All City purchases of
goods or services will be made in accordance with the City’s Charter, current Purchasing Policy and with
State law.
The following table shows a summary of requirements for purchases of goods and services and does not
substitute the formal Purchasing Policies.
Dollar Limits: Procurements: Requirements:
$3,000 and less Under the small purchase
limit
No competitive bids and City credit
cards may be used.
$3,001
up to
$50,000
Within informal bid limit A minimum of three informal
competitive bids required unless
exempted; Historically Underutilized
Business (HUB) requirements apply in
accordance with state law.
$50,001
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.
Common exemptions to the formal solicitation process include the procurement of professional services, the
purchase of goods or services from a sole source provider, and purchases for public health emergencies.
In addition to the above, all purchases must be approved according to signature authority limits.
F. Contracts, Change Orders and Amendments – Contracts and related change orders and amendments must
follow the City’s Purchasing Policies and State Law.
G. Prompt Payment – In accordance with State Law, 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.
H. 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.
I. 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.
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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 a 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 will amortize any unfunded actuarial liability (UAAL) over a period not to exceed the
amortization period used by the TMRS actuary. The City may amortize its UAAL more quickly by
making contributions to TMRS in excess of the rate specified by TMRS.
6. The City may elect to pay a higher contribution rate than required by the TMRS, to reduce the
City’s unfunded pension liability. Such payment will be approved and authorized by the City
Council as part of the City's annual budget process.
J. Retirement Cost‐of‐Living Adjustment
1. Within 60 days of when the TMRS annual funding update becomes available each year, staff will
review and may prepare a summary of costs and options for potential cost‐of‐living adjustment
(COLA) for City of Georgetown retirees.
2. 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.
3. The City Council may adjust the COLA provided to city retirees based upon the funding level of the
City’s pension plan, as calculated by the TMRS, as follows:
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When the funding level of the City’s
pension plan is
The COLA
should be
Less than 70.0%
Zero
70.0% to 79.9%
0.3% of CPI
80.0% to 89.9%
0.5% of CPI
90.0% and greater
0.7% of CPI
4. Adjustments made pursuant to Subsection J.3. should reflect the reciprocal effect of the prospective
change in the COLA on the funding level of the City’s pension plan.
K. Deferred Compensation Benefits – In addition to the retirement benefit administered by the TMRS, the City
will sponsor a Deferred Compensation 457 plan, which is a supplementary individual retirement savings plan.
The City will encourage employee participation in this plan.
VI. STAFFING AND COMPENSATION
City Council and Management recognize the importance of attracting, hiring, developing, and retaining the best
people, and compensating them for the value they create. Our outstanding and innovative City employees work
diligently to bring the Vision of Council to life and deliver exceptional services to our customers while
exemplifying our Core Values. The following programs are subject to available funding in the annual operating
budget.
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 has implemented a
Competitive Employee Compensation Maintenance Program to address competitive market factors and other
issues impacting compensation. The program consists of:
1. Annual Pay Plan Review – To ensure the City’s pay system is accurate and competitive within the
market, the City will review its pay plans annually for any potential market adjustments necessary
to maintain the City’s competitive pay plans.
2. Pay for Performance – Each year the City will fund performance based pay adjustments for regular
non‐public safety personnel. This merit‐based program aids in retaining quality employees by
rewarding their performance. Pay for Performance adjustments are based on the employee’s most
recently completed performance evaluation.
3. Public Safety Steps – Each year the City will fund anniversary step increases for public safety sworn
personnel consistent with public safety pay scale design.
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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 an Internal Service Fund (ISF).
1. Employee Health Insurance ISF – This fund contains premium contributions from employees and
budgeted health insurance contributions included in the City’s annual budget process. To maintain
stable revenue to this fund, and to clearly set expenditure expectations for departments, any
budgeted appropriations for employee health insurance that are unused at the end of each fiscal
year will be transferred back to the self‐insurance fund.
2. Self‐Insurance Reserves – Annually through the budget process, staff and the City’s Health Benefit
Consultant firm will evaluate and recommend to Council the appropriate funding levels for two
reserves.
a. Incurred but Not Reported (IBNR) Reserve: In the event the City stopped self‐insuring for
health benefits and was required to pay incurred costs, the City will reserve between 5 and
10 percent of the annual costs of claims, benefit administration and stop loss coverage.
Compliance Status – IBNR reserve FY2019 in compliance.
b. Rate Stabilization Reserve: To alleviate shocks to the City and employees due to sharp
increases in health insurance costs, the City will reserve between 10 and 20 percent of
annual claims, benefit administration and stop loss coverage. Staff and the benefits
consultant will consider a 3 year forecast on premiums when determining to utilize the funds
or rebuild the reserve.
Compliance Status – Rate stabilization reserve FY2019 in compliance.
3. Employee Premiums – Annual premiums will be recommended to City Council through a
collaborative process between the City’s Employee Benefit Committee and external Health Benefits
consulting firm using historical data, reserves history and other analytic analysis.
VII. 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.
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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 properly classified in one of the other four
categories.
VIII. LONG‐TERM LIABILITY RESERVES
The City of Georgetown recognizes certain long‐term unfunded commitments and contingencies that will require
substantial funding at some point in the future. The City is committed to addressing these commitments in a
fiscally prudent method by acknowledging their future financial impacts and developing strategies and
designated reserve funds to mitigate those future impacts.
A. The Finance Director will maintain a list of unfunded liabilities. The list will be included in the quarterly financial
report to Council and considered during the annual budget process.
IX. BUDGET CONTINGENCY PLAN
This policy is designed to establish general guidelines for managing revenue shortfalls resulting from local and
national economic downturns that adversely affect the City's revenue streams.
A. Immediate Action – Once a budgetary shortfall is projected, the City Manager will take the necessary actions
to offset any revenue shortfall with a reduction in current expenses. The City Manager may:
Freeze all new hire and vacant positions except those deemed to be a necessity.
Review all planned capital expenditures.
Delay all "non‐essential" spending or equipment replacement purchases.
The City Manager shall report in a timely manner to the City Council the projected shortfall and the
actions taken to resolve it.
B. Further Action – If the actions identified in subsection A are insufficient to offset the projected revenue deficit
for the current fiscal year, the City Council may approve the following actions, in the order listed:
1. Apply unspent, unobligated surplus funds from prior fiscal years to fund one‐time costs in the current
fiscal year budget.
2. Authorize the use of the General Fund Economic Stability Reserve pursuant to Section XV.A.2.b.
Economic Stability Reserve.
3. Authorize a reduction in the unobligated fund balance in the General Fund, pursuant to Section
XV.A.2.a. Base Level Reserve of this policy, from 90 to 75 days.
4. Direct other reductions in services, including workforce reductions.
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C. Replenish Fund Balance – As soon as practical, 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
XV.A.2.a. Base Level Reserve of this policy and shall restore the General Fund Economic Stability Reserve as
required in Section XV.A.2.b of this policy.
X. 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.
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
master planning processes, board meetings, public hearings and other forums.
Capital infrastructure necessary to meet the requirements of the City’s Annexation Plan will be
identified separately within the CIP plan, so that funding alternatives can be developed if needed.
Prior to Council approval, the following Advisory Boards will review the Capital Projects budget and
contracts for expenditures:
Georgetown Utility
Systems Advisory
Board
(GUS)
Georgetown
Transportation
Advisory Board
(GTAB)
General Government
and Finance
Advisory Board
(GGAF)
Parks
Advisory
Board
Georgetown
Transportation
Enhancement
Corporation
(GTEC)
Electric
Water
Wastewater
Streets
Stormwater
Drainage
Airport
Facilities, Fleet, IT and
Other General
Government Capital
Projects
Parks and
Recreation
Transportation
projects
related to
economic
development
B. Control – All capital project expenditures must be appropriated in the capital budget.
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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. Debt
financing is referenced in Section XIV. Debt Management of this document.
XI. 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 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
repair, 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 its 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 uses a Pavement Management Information System to track the condition levels of each of the street
sections. The condition of the pavement is based on the following factors:
Type of Distress
Amount of Distress
Severity of Distress
Deduct Values (function of first three)
The Pavement Condition Index (PCI) is a measurement scale is based upon a condition index ranging from
zero for a failed pavement to 100 for pavement with perfect condition. The condition index is used to
classify pavement in the following conditions:
The City’s administrative policy is to achieve an average PCI level of 85. An 85 PCI is considered maintaining
the streets in a “good” condition. Staff will prepare a street maintenance budget that meets this target for
Council’s consideration during the budget process. The PCI level as of 2014 was 87.30.
C. Internal Service Funds Capital Maintenance & Replacement – The City currently utilizes internal service funds
to maintain and replace existing assets. Assessments are made to other funds for the use of existing
equipment and to purchase new equipment. In this way, suitable funds are available for the purchase of
operational assets without the issuance of debt.
PCI Rating
100 – 85 Good
85 – 45 Fair
45 – 0 Poor
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FY2019 Annual Budget
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. The targeted asset replacement
reserve amount is the average (1/5th) of the next five years on the replacement schedule.
Compliance Status – Fleet replacement reserve FY2019 in compliance.
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. 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. The targeted amount is the average (1/5th) of the next five years on the replacement schedule.
While cash funding is preferred, major IT systems and projects may require debt that is amortized
over a shorter useful life appropriate for the software or hardware.
Compliance Status – IT replacement reserve FY2019 in compliance.
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. 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. The
targeted replacement reserve amount is the average (1/5th) of the next five years on the replacement
schedule.
Compliance Status – Facilities replacement reserve FY2019 not in compliance. It is estimated to take 3
years to build the replacement reserve.
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 playgrounds, 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. The current funding level is an annual
$200,000 transfer from the General Fund.
Compliance Status – Parks maintenance replacement FY2019 in compliance.
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‐
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FY2019 Annual Budget
going funding to ensure proper protection for employees and residents. The current funding level is
an annual appropriation in the General Fund of $70,000 for Fire and $88,000 for Police.
Compliance Status – Public safety equipment replacement FY2019 in compliance.
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 $50,000 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.
XII. 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 Finance Director is responsible for establishing the structure for the City’s
Chart of Accounts and for assuring that procedures are in place to properly record financial transactions and
report the City’s financial position.
B. General Government and Finance Advisory Board (GGAF) – The City may establish a subcommittee consisting
of at least 2 City Council members and not more than 3 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
Finance Director 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 change firms if deemed
necessary by GGAF and City Council.
D. External Reporting – Upon completion and acceptance of the annual audit by the City’s auditors, the City
shall prepare a written Comprehensive Annual Financial Report (CAFR) which shall be presented to the City
Council within 180 calendar days of the City’s fiscal year end. The CAFR shall be prepared in accordance with
Generally Accepted Accounting Principles (GAAP) and shall be presented annually to the Government
Finance Officer Association (GFOA) for evaluation and consideration for the Certificate of Achievement in
Financial Reporting.
XIII. 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 and 2257 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. Refer to the separate
policy for details regarding:
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FY2019 Annual Budget
1. Statement of Cash Management Philosophy
2. Objectives
3. Safekeeping and Custody
4. Standard of Care and Reporting
5. Investment Strategies
6. Authorized Investments and Approved Broker/Dealer List.
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 met in order to be capitalized:
The asset owned by the City
The expected useful life of the asset must be longer than one year, or extend the life of an
identifiable existing asset by more than one year
The original cost of the asset must be at least $5,000
The asset must be tangible.
On‐going repairs and general maintenance are not capitalized. Public Education and Government
(PEG) Funds will capitalize assets in aggregate over $1,000 on an annual basis.
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
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FY2019 Annual Budget
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.
XIV. 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. The City will seek input on major projects funded
with debt via bond elections, master planning exercises, board meetings, budget workshops, and other methods
as needed.
A Debt Condition Update report will be provided annually.
A. Usage of Debt – Long‐term debt financing will be considered for non‐continuous capital improvements of
which future citizens will be benefited. Alternatives for financing will be explored prior to debt issuance and
include, but not limited to:
Grants
Use of Reserve Funds
Use of Current Revenues
Contributions from developers and others
Leases
Impact Fees
When the City utilizes long‐term financing, it will ensure that the debt is soundly financed by
conservatively projecting revenue sources that will be used to pay the debt. It will not finance the
improvement over a period greater than the useful life of the improvement and it will determine that
the cost benefit of the improvement, including interest costs, is positive to the community.
The City may utilize the benefits of short‐term debt financing to purchase 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.
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FY2019 Annual Budget
B. Types of Debt
1. General Obligation Bonds (GO’s) – General obligation bonds must be authorized by a vote of the
citizens of Georgetown. They are used only to fund capital assets of the general government and
are not to be used to fund operating needs of the City. The City’s ad valorem taxing authority backs
general obligation bonds. Conditions for issuance of general obligation debt include:
When the project will have a significant impact on the tax rate;
When the project may be controversial even though it is routine in nature; or
When the project falls outside the normal bounds of projects the City has typically done.
For debt programs that include multiple projects that will be issued over multiple years at the
discretion of the City Council, the City may approve a Contract with the Voters to manage future
property tax rate impacts. The Contract with the Voters will be included in educational information
for all applicable GO Bond elections, and will include a maximum annual tax rate increase and a
cumulative total per bond authorization maximum tax rate increase. The City will include these
impacts in its annual Debt Condition report.
The City Council will carefully manage the unissued GO Bond authorization through annual review of
related projects to ensure full disclosure on future timing of projects included in the bond package.
Timing of authorized projects and related bond issuance will be included in the Annual Budget and
published on the City’s website. Any changes to this schedule require specific Council authorization.
2. Revenue Bonds – Revenue bonds will be issued to provide for the capital needs of any activities
where the capital requirements are necessary for the continuation or expansion of a service. The
improved activity shall produce a revenue stream to fund the debt service requirements of the
necessary improvement to provide service expansion. The average life of the obligation should not
exceed the useful life of the asset(s) to be funded by the bond issue, and will generally be limited to
no more than twenty (20) years. An exception can be made for plant expansions or related system
expansions whose useful life is in excess of 30 years. A cost benefit analysis will be done to fully
disclose the impacts of extending debt beyond 20 years.
3. Certificates of Obligation, Contract Obligations (CO’s) – Certificates of obligation or contract
obligations may be used to fund capital requirements that are not otherwise funded by general
obligation or revenue bonds. Debt service for CO’s may be either from general revenues (tax‐
supported) or supported by a specific revenue stream(s) or a combination of both. Typically, the City
may issue CO’s when the following conditions are met:
When the proposed debt will have minimal impact on future effective property tax rates;
When the projects to be funded are within the normal bounds of City capital requirements, such
as for roads, parks, various infrastructure and City facilities and equipment; and
When the average life of the obligation does not exceed the useful life of the asset(s) to be
funded by the issue.
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FY2019 Annual Budget
Certificates of obligation will be the least preferred method of financing and will be used with
prudent care and judgment by the City Council during the budget development process.
4. Self‐supporting Certificates of 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) and the Georgetown Economic
Development Corporation (GEDCO) whom then pledge 4A and 4B sales tax revenue for the
repayment of that debt.
5. Internal borrowing between City Funds – The City Council can authorize use of existing long‐term
reserves as loans between funds. The borrowing fund will repay the loan at a rate consistent with
current market conditions. The loan will be repaid within ten (10) years. The loan will be considered
an investment of working capital reserves by the lending fund.
6. Other Short‐term Borrowing – The City may authorize the issuance of Public Property Finance
Contractual Obligations (PPFCO) which is short‐term obligations for the acquisition of personal public
property, such as equipment. PPFCOs are payable from either ad valorem taxes or another dedicated
revenue stream. Each issuance will be assessed to ensure cost effectiveness and the repayment
schedule will not exceed the useful life of the asset. Multiple equipment acquisitions can be grouped
in a single PPFCO issue in order to develop economies of scale.
C. Method of Sale – The City will use a competitive bidding process in the sale of bonds unless conditions in the
bond market or the nature of the issue warrant a negotiated bid. In such situations, the City will publicly
present the reasons for the negotiated sale. The City will rely on the recommendation of the financial advisor
in the selection of the underwriter or direct purchaser. The financial advisor must meet all licensing
requirements and comply with all Municipal Securities Rulemaking Board (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
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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. Utility Debt Coverage Ratio – Refers to the number of times all utility supported 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 the 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. A coverage ratio of 1.5 times will also be required for all funds issuing self‐supporting
debt.
Compliance Status – Debt coverage ratio FY2019 in compliance.
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.
XV. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS
The City of Georgetown will maintain budgeted minimum reserves in the ending working capital/fund balances
to provide a secure, healthy financial base for the City in the event of a natural disaster or other emergency,
allow stability of City operations should revenues fall short of budgeted projections and provide available
resources to implement budgeted expenditures without regard to actual timing of cash flows into the City.
A. Operational Coverage – The City’s goal is to maintain operations coverage of 1.0 (one), such that operating
revenues will at least equal or exceed current operating expenditures. Deferrals, short‐term loans, or one‐
time sources will be avoided as budget balancing techniques. Reserves will be used only for emergencies or
non‐recurring expenditures, except when balances can be reduced because their levels exceed guideline
minimums as stated below.
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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, capital improvements, direct cost for
purchased power and payments from third party grant monies. 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. For asset replacement reserves, see Section XI. Capital Maintenance
and Replacement.
Compliance Status – 75 day citywide reserves FY2019 in compliance.
2. General Fund – General Fund reserves will be restricted on the balance sheet. Reserves are allocated
as follows:
a. Base Level Reserve – will equal ninety (90) days, or 25%, of current year budgeted operating
expenditures designated for emergency use only. If the Base Level Reserve is used during the
fiscal year, the balance must return to the ninety (90) day requirement within the following fiscal
year’s adopted budget.
Compliance Status – General Fund 90 day Reserve FY2019 in compliance.
b. Economic Stability Reserve – will equal up to 6% of current year budgeted operating
expenditures. The reserve will be designated to temporarily offset a decline in any General Fund
revenue source during the current fiscal year or in planning the future budget year. The reserve
may be used when growth in any General Fund revenue source from one fiscal year to the next
is below zero. The reserve will be available to support only existing programs approved in a prior
fiscal year. Used funds shall be restored up to the 6% reserve as soon as practical.
Compliance Status – General Fund Stability Reserve FY2019 at 2%.
3. Tourism Fund – A minimum ninety (90) days 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.
Compliance Status – Tourism Fund Reserve FY2019 in compliance.
4. Joint Services Fund – A minimum ninety (90) days of operating expenses will be reserved for
unexpected delays in revenue or emergency expenses.
Compliance Status – Joint Services Fund Reserve FY2019 partial compliance. It is estimated to take
approximately 3 years to build the reserve to 90 days.
5. Fleet Fund – A minimum ninety (90) days of operating expenses will be reserved for unexpected
delays in revenue or emergency expenses.
Compliance Status – Fleet Fund Reserve FY2019 in compliance.
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6. Facilities Fund ‐ A minimum ninety (90) days of operating expenses will be reserved for unexpected
delays in revenue or emergency expenses.
Compliance Status – Facilities Fund Reserve FY2019 in compliance
7. Information Technology Fund ‐ A minimum ninety (90) days of operating expenses will be reserved
for unexpected delays in revenue or emergency expenses.
Compliance Status – IT Fund Reserve FY2019 in compliance
8. Emergency Medical Services Fund ‐ A minimum ninety (90) days of operating expenses will be
reserved for unexpected delays in revenue or emergency expenses.
Compliance Status – EMS Fund Reserve FY2019 not in compliance. It is estimated to take more than
three years for this fund to build a 90 day reserve.
9. Water Services Fund – The Water Fund will maintain the following reserves and restrict them on the
balance sheet. 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.
A. Operations Contingency Reserve – A minimum ninety (90) days or 25% of operating
expenses, including wholesale water contracts and net of transfers, designated for
unexpected or emergency use during the fiscal year.
Compliance Status – Operating Water Fund Reserve FY2019 in compliance.
B. Non‐Operating Contingency Reserve – to maintain continuity of debt payments, capital
projects and to begin recovering from a natural disaster during the lag time of revenue
recovery. This reserve will be evaluated annually as part of the budget process,
considering the 5 year CIP and future debt requirements.
Compliance Status – Non‐operating Water Fund Reserve FY2019 in compliance.
10. Stormwater Drainage Fund – A minimum ninety (90) days or 25% of operating expenses, will be
reserved in 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.
Compliance Status – Stormwater Fund Reserve FY2019 in compliance.
11. Electric Fund – The Electric Fund will maintain the following reserves and restrict them on the
balance sheet:
A. Operations Contingency Reserve – A minimum ninety (90) days or 25% of operating
expenses, net of transfers and purchased power, designated for unexpected or emergency
use during the fiscal year and to be replenished in the following year’s budget.
Compliance Status – Operating Contingency reserve FY2019 in compliance.
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B. Non‐Operating Contingency Reserve – to maintain continuity and begin recovery process
from a natural disaster during the lag time of revenue recovery:
a. 1% of historical rate base (total assets plus accumulated depreciation)
b. 1/5th of the average cash funded portion of the 5 year CIP
c. At least 50% of annual debt service payment
Compliance Status – Non‐operating reserve FY2019 in partial compliance. It is estimated to
take 1 year to complete this reserve after enacting the new cost of service rate structure.
C. Rate Stabilization Reserve – Up to 10% of purchased power costs will be reserved to protect
against energy market exposure and to maintain wholesale power contracts and stability
until expenses are recovered through revenue generated in the Power Cost Adjustment
Factor.
Compliance Status – Rate stabilization reserve FY2019 not in compliance. It is estimated to
take 3 years to build this reserve after enacting the new cost of service rate structure.
12. Airport Fund – A contingency reserve of ninety (90) days of operating expenses will be maintained
in the fund for unforeseen or emergency expenditures. The reserve will represent all operating
expenses minus fuel costs and any transfers. Used funds should be replenished in the following year’s
budget.
Compliance Status – Airport Fund Reserve FY2019 in compliance.
For all other 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 and is outlined in Section III.
J. Use of Unanticipated and Unappropriated General Fund Balances.
B. Liabilities and Receivables – Procedures will be followed to maximize discounts and reduce penalties offered
by creditors. Current liabilities will be paid within 30 days of receiving the invoice. Accounts Receivable
procedures will target collection for a maximum of 90 days of service. The Finance Director 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 Comprehensive Annual Financial Report to the City Council.
C. Capital Project Funds – Every effort will be made for all monies within the Capital Project Funds to be
expended in a timely manner preferably within thirty‐six (36) months of receipt. Due to the long timeline of
some projects, unused cash or bond proceeds will be reserved on the fund schedule and appropriated when
needed. 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 approved for use according to the bond covenant and opinion of bond counsel.
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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.
Compliance Status – Debt Fund Reserve FY2019 in compliance.
E. Investment of Reserve Funds – The reserve funds will be invested in accordance with the City’s investment
policy.
F. Ratios/Trend Analysis – Ratios and significant balances will be incorporated into both the quarterly financial
reports to the City Council for the Electric, Water and General Debt Service Funds. 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:
Debt Ratio: Current liabilities plus long‐term liabilities divided by total
assets
CL +LTL/TA AL < 0.5
Times Coverage Ratio: Operating revenue less operating expense divided by
annual debt service
(OR‐OE)/DSV AL > 1.5
The City will develop minimum/maximum levels for the above ratios/balances through analyzing of City
historical trends and future projections.
XVI. INTERNAL CONTROLS
A. Written Procedures – Wherever possible, written procedures will be established and maintained by the
Finance Director 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 Finance Director 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 Director
will be notified. The City Manager will also be notified depending on the seriousness of the
infraction.
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3. The Finance Director and City Manager will present an annual audit plan to the General Government
and Finance board. Results of all internal audits will be provided to the GGAF and City Council at
year‐end.
C. Directors Responsibility – Each 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.
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Fiscal and Budgetary Policy
Adopted: September 112, 20187
Contents
I. PURPOSE............................................................................................................................................ 2
II. FUND STRUCTURE AND BASIS OF BUDGETING ....................................................................................... 2
III. OPERATING BUDGET ........................................................................................................................... 3
IV. REVENUE MANAGEMENT .................................................................................................................... 6
V. EXPENDITURE MANAGEMENT ............................................................................................................ 10
VI. STAFFING AND COMPENSATION ......................................................................................................... 14
VII. FUND BALANCE POLICIES ................................................................................................................... 15
VIII. LONG‐TERM LIABILITY RESERVES ........................................................................................................ 16
IX. BUDGET CONTINGENCY PLAN ............................................................................................................ 16
X. CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET ............................................................................... 17
XI. CAPITAL MAINTENANCE AND REPLACEMENT ....................................................................................... 18
XII. ACCOUNTING, AUDITING AND FINANCIAL REPORTING .......................................................................... 21
XIII. ASSET MANAGEMENT ....................................................................................................................... 21
XIV. DEBT MANAGEMENT ........................................................................................................................ 23
XV. OTHER FUNDING ALTERNATIVES ........................................................................................................ 27
XVI. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS .................................................................. 27
XVII. INTERNAL CONTROLS ........................................................................................................................ 32
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I. PURPOSE
The City of Georgetown is committed to financial management through integrity, prudent stewardship, planning,
accountability, transparency 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, operational and capital budgeting, revenue and expenditure
management, financial reporting, internal controls, investment and asset management, debt management and
forecasting. This is done in order to:
A. Demonstrate to the residents 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, 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 26 SRF Funds
andExamples includes Tourism, Parkland Dedication, Library Donations, Animal
Services Donations, and Street Maintenance Sales Tax.
Debt Service Fund is used to account for the payment of general long‐term debt
principal and interest.
Capital Project Funds are used to account for the acquisition or construction of
major capital facilities other than those financed by enterprise activities.
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FY2019 Annual Budget
Proprietary Funds: Internal Service Funds account for goods or services provided by one internal
department to another. The City uses this system to recognize cost for fleet
replacement and maintenance, facility maintenance, computer replacement
and maintenance and employee health insurance costs.
Enterprise Funds include the City’s “business like” activities including all the
utility funds and the airport.
Basis of Accounting and Basis of Budgeting
The City 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.
III. 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. Form of Government – The Charter (Section 1.03) established a “Council‐Manager Government” wherein the
City vests power in the City Council to “enact legislation, adopt budgets, determine policies, and appoint the
City Manager who shall execute the laws and administer the government of the City.”
B. Comprehensive Plan – The Charter (Section 1.08) requires that the City Council “establish comprehensive
planning as a continuous and ongoing governmental function in order to promote and strengthen the existing
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FY2019 Annual Budget
role, processes and powers of the City of Georgetown.” The current comprehensive plan is the 2030 Plan
adopted in 2006.
C. 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.”
1. Proposed Budget – A proposed budget shall be prepared by the City Manager with participation of
all of the City’s Directors within the provision of the Charter and the 2030 Plan.
a. The budget shall include four basic segments for review and evaluation:
Revenue
Personnel Costs
Operations and Maintenance Costs
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 resident 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 and approved budgets will be filed with the City Secretary when it is
submitted to the City Council and will be available on the City’s website.
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.
D. 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 III. C.
Preparation of 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.
E. 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.
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FY2019 Annual Budget
F.E. 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.
G.F. Control and Accountability – Each 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. 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 from
or to the Personnel line items require approval of the Finance Director and City Manager. All other
transfers of appropriation or budget amendments require either City Council or City Manager approval
as outlined in Section III.H Budget Amendments and Section V.C.4 Use of Excess Salary Savings.
H.G. Budget Amendments – The Charter (Section 6.04) and the Local Government Code 102.009 and
102.010 provides a method to amend for the budget amendments and for emergency appropriations
and municipal purposes. The City Council may authorize, with a majority plus one vote, an
emergency expenditure as amendment to the original budget. This may be done in cases of grave public
necessity, or to meet an unusual and unforeseen condition that was not known at the time the budget
was adopted. In practice, this has been interpreted to include revenue‐related expenses within the
enterprise funds and timing differences on capital improvement projects. The 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 Finance Director must certify availability of revenues or funding sources prior to adoption.
If needed, tThe City will amend the budget at year end, if needed, for increased revenue and for
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 may will also amend the budget if necessary for any capital project timing adjustments from
prior year, as well as, any other known adjustments needed and approved at that time.
I.H. 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 items such as insurance deductibles, unexpected legal
expenses and equipment repairs.
J.I. 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;
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FY2019 Annual Budget
3. to reduce outstanding City debt, including bonded indebtedness and unfunded pension liabilities;
4. to fund contingent liabilities such as the benefit payout reserve, cemetery trust fund, and similar
obligations of the City;
5. to take other steps to reduce property tax rates or mitigate any future increases;
6. to hold those funds in reserve for future commitments or contingencies that may be pending,
and/or;
7. to fund an Economic Uncertainty Stability Reserve of annual General Fund operating expenditures
according to Section XVI, A, 2, b, Economic Stability Uncertainty Reserve.
IV. 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.
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.
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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.
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.
5.4. 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, tThe
City will forecast the proposed the 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. Annually, the City
will forecast property tax revenue as part of the budget process. Certified Assessed Value Reports
from the Williamson Central Appraisal District are used to forecast property tax. The City will comply
with State law regarding publication notices and Truth in Taxation requirements.
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 fivetwo years on a rotating schedule 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 Activity Rates – The City will review and adopt utility rates as needed to generate
revenues required to fully cover operating expenses, meet the legal requirements of all applicable
bond covenants, and provide for an adequate level of working capital. Utility rates will be reviewed
annually as part of the budget process. A rate study will be conducted every 3 years to review rate
methodology and ensure revenues will meet future needs. All utility rates will be based on
standardized “cost of service” methodologies and conservation goals.
Water Rates will recognize at least 75% of the “fixed” cost of service, including debt
payments and ROI costs, within the monthly “base charge” determined by meter size.
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“Volumetric charge” will recognize the balance of fixed costs not included in the base rate,
plus all variable costs associated with procuring and treating water.
.
Wastewater Rates are fixed “flat and equal” for all residential customers based on the cost
of providing services. Commercial customer rates are varied fixed and volumetric depending
on size and specifications of each commercial customer.
Electric Rates include 100% of fixed costs within the base rate, and demand rates, with all
variable costs included in the kWh rate. The Power Cost Adjustment (PCA) Factor and
Transmission Cost Adjustment (TCA) Factor are determined by comparing forecasted costs
against actual costs in a budget year, and seek to recover/credit variances within 6 to 12
months. For reference, see Code of Ordinances 13.04.075 and 13.04.080.
Stormwater Drainage Fees are based on a mathematical calculation using impervious cover
and applied in compliance with State Law.
Solid Waste and Environmental Services Rates are based on the wholesale cost of service and
retail incentives for conservation, plus a return to the General Fund for wear and tear of
heavy trucks on streets and for contract administration.
A restricted Power Contract Credit Reserve has been established to provide financial assurances to
the City’s wholesale power contract providers as fiscal surety against any potential risk on the City’s
behalf and will be maintained as “restricted” fund balance on the City’s financial statements.
A Rate Stabilization Reserve (RSR) Account has been established in the Electric Fund to offset and
mitigate potential impacts to customer rates due to increased fuel costs or other external factors
that may negatively impact Electric Rates. The Rate Stabilization Reserve (RSR) may provide funding
for:
Deferring or minimizing the rate impact of future cost increases
Costs associated with providing additional power supply
Filling contractual obligations
Balancing of annual power costs
RSR funds will be monitored monthly to ensure the electric rate is being managed per the Policy.
Increases to RSR are made through the Power Cost Adjustment rate as determined by the fund, at
the recommendation of the General Manager for Utilities.
8. Internal Cost Recovery Fees – Additionally, enterprise activity rates will include transfers to and
receive credits from other funds as follows:
a. General and Administrative Charges – Administrative costs should be charged to all funds for
services of general overhead, such as administration, finance, customer billing, legal and other
costs as appropriate. These charges will be determined through an indirect cost allocation
following accepted practices and procedures and reviewed annually by the City’s external
auditors.
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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 non‐electric utilities. ROI for water
and sewer customers outside the City is 10% of operating revenues. There is no ROI
calculated on solid waste revenues.
The Franchise and Return on Investment for the Electric Utility are both is derived from the base
monthly charge gross revenue rate and kWh sold. The base rate revenue is multiplied by 7% for
all customers. For customers inside the City, the franchise fee is $0.002947/kWh sold, and the
Return on Investment is 7% of gross revenue of the base monthly charge, and $0.007253/kWh
sold. 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, there is no franchise fee to
the City of Georgetown; however, those customers may be subject to franchise fees in the
jurisdiction in which they reside. Outside the City customers are charged a Return on Investment
equal to 7% of gross revenue of the base monthly charge, and $0.0102/kWh sold. a $0.007253
charge per kWh, equivalent to the 7% ROI paid by utilities, will be included in the cost.
9. Intergovernmental Revenues – All potential grants will be examined for matching requirements and
must be approved by the City Council prior to making application of the grant. It must be clearly
understood that operational requirements (on‐going costs) set up as a result of a grant program
could be discontinued once the term and conditions of the program have been completed.
9. Revenue Monitoring – Received revenues 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.
10. 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 grant applications must be approved by the City Council prior to being submitted to a granting
agency. Prior to submittal to Council, departments will verify that the benefits of the grant exceed the cost
of grant administration and will also provide the required grant forms to Finance for review in accordance
with the Grant Acquisition, Management, and Compliance Policy. Finance will review and sign the forms
which provides detailed information including, but not limited to, the term of the grant, any matching
requirements, the resulting operational requirements once the grant is discontinued, and a budget request
detailing the line items to be effected, all of which should be included in the Council agenda item packet
requesting approval to apply. The City Council must also authorize acceptance of any grant awards
received.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
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to any grant application being submitted. It must be clearly understood that any resulting operation
requirements of the grant could be discontinued once the term and conditions of the project have been
terminated. The City Council must authorize acceptance of any grant funding.
b. Use of Reserve Funds – The City may authorize the use of reserve funds to potentially delay or eliminate a
proposed bond issue. This may occur due to higher than anticipated fund balances in prior years, thus
eliminating or reducing the need for debt proceeds, or postpone a bond issue until market conditions are
more beneficial or timing of the related capital improvements does not correspond with the planned bond
issue. Reserve funds used in this manner are replenished upon issuance of the proposed debt.
c. Developer Contributions – The City will require developers who negatively impact the City's utility capital
plans offset those impacts. These policies are further defined within the City's utility line extension policy
and other development regulations.
d. Leases – The City may authorize the use of lease financing for certain operating equipment when it is
determined that the cost benefit of such an arrangement is advantageous to the City.
e. Impact Fees – The City will impose impact fees as allowable under state law for both water and wastewater
services. These fees will be calculated in accordance with statute and reviewed at least every three years.
All fees collected will fund projects identified within the Fee study and as required by state laws.
V. EXPENDITURE MANAGEMENT
A. Appropriations – The point of budget control is at the department level budget for all funds. The Charter
(Section 6.03) provides that any transfer of appropriation between funds must be approved by the City
Council and that the City Manager, without City Council approval, is authorized to transfer appropriations
among departments, within the same operational division and fund. The City Manager may also authorize
transfer of salary adjustment monies between funds that are budgeted in a citywide account.
B. Expenditure Monitoring – Expenditures and encumbrances will be regularly compared to budget, variances
will be investigated, and any abnormalities will be included in the quarterly report to the City Council.
Projected year‐end expenditures will be reported in the annual budget.
C. 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 – Major Funds with Personnel Budgets greater than $4 million will include a vacancy
factor of at least 1% of total fund salaries and related benefits (retirement, FICA, Medicare) to offset
salary savings within the budget. The vacancy factor will be budgeted as a negative expense within
the fund. This factor will be reduced throughout the year as vacant positions are recognized within
the department budget.
Compliance Status – General Fund, Electric Fund, Water Fund and Joint Services Fund FY20198 in
compliance.
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2. Benefit Payout Reserve – The City will establish a benefit payout reserve equal to 15% of the accrued
benefit liability for employees in the General and Joint Services Funds who are currently eligible to
retire. Only terminating employee benefit expenses may be paid from this reserve. This reserve shall
be funded as an offset to the vacancy factor.
Compliance Status – Benefit payout reserve FY20198 in compliance.
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.”
D. Special Purpose Funding – In order to support community assistance programs, the City designates specific
funding for special purposes, including Social Services, Children’s Programs, and Public Art. The City reserves
the ability to cap this special purpose funding when necessitated by budget contingency or compliance
issues, such as revenue shortfalls, or other reasons as determined by City Council.
1. Strategic Partnerships for Community Services – The City of Georgetown values partnerships with
organizations that are committed to addressing our communities’ greatest public challenges and has
identified key priorities in the following areas:
Public Safety
Transportation
Housing
Parks & Recreation
Veteran Services
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 Consumer Price Index. If previous funding levels
are higher than the targeted amount, and to avoid significant reductions in levels of funding, the City
Council shall seek to attain this target chiefly through population growth. These funds will be
allocated and paid according to the City Council’s guidelines for such programs.
Compliance Status – FY20198 in compliance.
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.
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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.
E. Purchasing – The City will maintain and regularly review a written Purchasing Policiesy. All City purchases of
goods or services will be made in accordance with the City’s Charter, current Purchasing Policy and with
State law.
The following table shows a summary of requirements for purchases of goods and services and does not
substitute the formal Purchasing Policies.
Dollar Limits: Procurements: Requirements:
Under
$3,000 and less
Under the small purchase
limit
No competitive bids and City credit
cards may be used.
$3,0010
up to
$49,99950,000
Within informal bid limit A minimum of three informal
competitive bids required unless
exempted; Historically Underutilized
Business (HUB) requirements apply in
accordance with state law.
$50,0010
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.
Common exemptions to the formal solicitation process include the procurement of professional services, the
purchase of goods or services from a sole source provider, and purchases for public health emergencies.
In addition to the above, all purchases must be approved according to preapproved signature authority limits
within each department as directed and approved by the City Manager.
F. Contracts, and Change Orders and Amendments – Contracts and related change orders and amendments
must follow the City PurchasingCity’s 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.
G. Prompt Payment – In accordance with State Law, aAll 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.
H. Risk Management – The City will pursue every opportunity to provide for the Public’s and City employees’
safety and to manage its risks. The goal shall be to minimize the risk of loss of resources through liability
claims with an emphasis on safety programs.
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I. 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 a 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 will amortize any unfunded actuarial liability (UAAL) over a period not to exceed the
amortization period used by the TMRS actuary. The City may amortize its UAAL more quickly by
making contributions to TMRS in excess of the rate specified by TMRS.
6. The City may elect to pay a higher contribution rate than required by the TMRS, to reduce the
City’s unfunded pension liability. Such payment will be approved and authorized by the City
Council as part of the City's annual budget process.
J. Retirement Cost‐of‐Living Adjustment
1. Within 60 days of when the TMRS annual funding update becomes available each year, staff will
review and may prepare a summary of costs and options for potential cost‐of‐living adjustment
(COLA) for City of Georgetown retirees.
2. 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.
3. The City Council may adjust the COLA provided to city retirees based upon the funding level of the
City’s pension plan, as calculated by the TMRS, as follows:
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FY2019 Annual Budget
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
4. Adjustments made pursuant to subsection J.3b. should reflect the reciprocal effect of the
prospective change in the COLA on the funding level of the City’s pension plan.
K. Deferred Compensation Benefits – In addition to the retirement benefit administered by the TMRS, the City
will sponsor a Deferred Compensation 457 plan, which is a supplementary individual retirement savings plan.
The City will encourage employee participation in this plan.
VI. STAFFING AND COMPENSATION
City Council and Management recognize the importance of attracting, hiring, developing, and retaining the best
people, and compensating them for the value they create. Our outstanding and innovative City employees work
diligently to bring the Vision of Council to life and deliver exceptional services to our customers while
exemplifying our Core Values. The following programs are subject to available funding in the annual operating
budget.
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 has implemented a
Competitive Employee Compensation Maintenance Program to address competitive market factors and other
issues impacting compensation. The program consists of:
1. Annual Pay Plan Review – To ensure the City’s pay system is accurate and competitive within the
market, the City will review its pay plans annually for any potential market adjustments necessary
to maintain the City’s competitive pay plans.
2. Pay for Performance – Each year the City will fund performance based pay adjustments for regular
non‐public safety personnel. This merit‐based program aids in retaining quality employees by
rewarding their performance. Pay for Performance adjustments are based on the employee’s most
recently completed performance evaluation.
3. Public Safety Steps – Each year the City will fund anniversary step increases for public safety sworn
personnel consistent with public safety pay scale design.
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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 an Internal Service Fund (ISF).
1. Employee Health Insurance ISF – This fund contains premium contributions from employees and
budgeted health insurance contributions included in the City’s annual budget process. To maintain
stable revenue to this fund, and to clearly set expenditure expectations for departments, any
budgeted appropriations for employee health insurance that are unused at the end of each fiscal
year will be transferred back to the self‐insurance fund.
2. Self‐Insurance Reserves – Annually through the budget process, staff and the City’s Health Benefit
Consultant firm will evaluate and recommend to Council the appropriate funding levels for both a
rate stabilization reserve as well as an incurred but not reported (IBNR) two reserves.
a. Incurred But Not Reported (IBNR) Reserve: In the event the City stopped self‐insuring for
health benefits and was required to pay incurred costs, the City will reserve between 5 and
10 percent of the annual costs of claims, benefit administration and stop loss coverage.
Compliance Status – IBNR reserve FY2019 in compliance.
a.b. Rate Stabilization Reserve: To alleviate shocks to the City and employees due to sharp
increases in health insurance costs, the City will reserve between 10 and 20 percent of
annual claims, benefit administration and stop loss coverage. Staff and the benefits
consultant will consider a 3 year forecast on premiums when determining to utilize the funds
or rebuild the reserve.
Compliance Status – Both reserves FY2018 Rate stabilization reserve inFY2019 in compliance.
2.3. Employee Premiums – Annual premiums will be recommended to City Council through a
collaborative process between the City’s Employee Benefit Committee and external Health Benefits
consulting firm using historical data, reserves history and other analytic analysis.
VII. 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.
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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 properly classified in one of the other four
categories.
VIII. LONG‐TERM LIABILITY RESERVES
The City of Georgetown recognizes certain long‐term unfunded commitments and contingencies that will require
substantial funding at some point in the future. The City is committed to addressing these commitments in a
fiscally prudent method by acknowledging their future financial impacts and developing strategies and
designated reserve funds to mitigate those future impacts.
A. The Finance Director will maintain a list of unfunded liabilities. The list will be included in the quarterly financial
report to Council and considered during the annual budget process.
IX. BUDGET CONTINGENCY PLAN
This policy is designed to establish general guidelines for managing revenue shortfalls resulting from local and
national economic downturns that adversely affect the City's revenue streams.
A. Immediate Action – Once a budgetary shortfall is projected, the City Manager will take the necessary actions
to offset any revenue shortfall with a reduction in current expenses. The City Manager may:
Freeze all new hire and vacant positions except those deemed to be a necessity.
Review all planned capital expenditures.
Delay all "non‐essential" spending or equipment replacement purchases.
The City Manager shall report in a timely manner to the City Council the projected shortfall and the
actions taken to resolve it.
B. Further Action – If the actions identified in subsection A are insufficient to offset the projected revenue deficit
for the current fiscal year, the City Council may approve the following actions, in the order listed:
1. Apply unspent, unobligated surplus funds from prior fiscal years to fund one‐time costs in the current
fiscal year budget.
2. Authorize the use of the General Fund Economic Stability Uncertainty Reserve pursuant to Section
XVI.A.2.b. Economic Stability Uncertainty Reserve.
3. Notwithstanding Section XVI.A.2.a. Base Level Reserve of this policy, authorize a reduction in the
unobligated fund balance in the General Fund, pursuant to Section XVI.A.2.a. Base Level Reserve of
this policy, from 90 to 75 days.
4. Direct other reductions in services, including workforce reductions.
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FY2019 Annual Budget
C. Replenish Fund Balance – As soon as practical, 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
XVI.A.2.a. Base Level Reserve of this policy and shall restore the General Fund Economic Stability Uncertainty
Reserve as required in Section XVI.A.2.b of this policy.
X. 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
through master planning processes, board meetings,neighborhood meetings public hearings and
other forums.
Capital infrastructure necessary to meet the requirements of the City’s Annexation Plan will be
identified separately within the CIP plan, so that funding alternatives can be developed if needed.
Prior to Council approvaladoption, the following Advisory Boards will review the Capital Projects
budget and contracts for expenditures:
Georgetown Utility
Systems Advisory
Board
(GUS)
Georgetown
Transportation
Advisory Board
(GTAB)
General Government
and Finance
Advisory Board
(GGAF)
Parks
Advisory
Board
Georgetown
Transportation
Enhancement
Corporation
(GTEC)
Electric
Water
Wastewater
Streets
Stormwater
Drainage
Facilities, Fleet, IT and Parks and
Recreation
Transportation
projects
related to
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FY2019 Annual Budget
Airport Other General
Government Capital
Projects
economic
development
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 Board (GGAF)
All utility contracts and
other utility expenses
greater than $50,000
All Transportation,
Stormwater Drainage and
Airport expenditures and
contracts greater than
$50,000
All General Government
non‐routine contracts and
expenditures greater than
$50,000
C. Financing Programs – Where applicable, assessments, impact fees, pro rata charges, or other fees should be
used to fund capital projects which have a primary benefit to specific identifiable property owners. Debt
financing is referenced in Section XIV. Debt Management of this document.
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.
XI. 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
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FY2019 Annual Budget
not capitalized for accounting purposes. They include such items as park and recreation facility repairs, street
street repairseal 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 its 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 a the CarteGraph PavementView Pavement Management Information System to track the
condition levels of each of the street sections. The condition of the pavement is based on the following
factors:
Type of Distress
Amount of Distress
Severity of Distress
Deduct Values (function of first three)
The Pavement Condition Index (PCI) is a measurement scale is based upon a condition index ranging from
zero for a failed pavement to 100 for pavement with perfect condition. The condition index is used to
classify pavement in the following conditions:
The City’s administrative policy is to achieve an average PCI level of 85. An 85 PCI is considered maintaining
the streets in a “good” condition. Staff will prepare a street maintenance budget that meets this target for
Council’s consideration during the budget process. The PCI level as of 2014 was 87.30.
C. Internal Service Funds Capital Maintenance & Replacement – The City currently utilizes internal service funds
to maintain and replace existing assets. Assessments are made to other the using funds for the use of existing
equipment currently in use and to be purchased during the year new equipment. 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. The targeted asset replacement
reserve amount is the average (1/5th) of the next five years on the replacement schedule.
Compliance Status – Fleet replacement reserve FY2019 in compliance.
PCI Rating
100 – 85 Good
85 – 45 Fair
45 – 0 Poor
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1.2. Technology – It is the policy of the City to plan and fund the maintenance and replacement of its
computer network and other technology systems. 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. The targeted amount is the average (1/5th) of the next five years on the replacement schedule.
While cash funding is preferred, major IT systems and projects may require debt that is amortized
over a shorter useful life appropriate for the software or hardware.
Compliance Status – IT replacement reserve FY20198 in compliance.
2.3. Facilities Maintenance – The City has established an on‐going maintenance program, which includes
major repairs, equipment, as well as contracts for maintaining City facilities. 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. The
targeted replacement reserve amount is the average (1/5th) of the next five years on the replacement
schedule. An additional unscheduled repair reserve equal to 10% value of annual internal service
funding is also budgeted.
Compliance Status – Facilities replacement repair reserve FY20198 in partial in compliance. It is
estimated to take 3 years to build the replacement reserve.
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 playgrounds, 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. The current funding level is an annual
$200,000 transfer from the General Fund.
Compliance Status – Parks maintenance replacement FY2019 in compliance.
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 residentscitizens. The current funding
level is an annual appropriation in the General Fund of $70,000 for Fire and $88,000 for Police.
Compliance Status – Public safety equipment replacement FY2019 in compliance.
E. Surplus Property
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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 $50,000 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.
XII. 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 Finance Director is responsible for establishing the structure for the City’s
Chart of Accounts and for assuring that procedures are in place to properly record financial transactions and
report the City’s financial position.
B. General Government and Finance Advisory Board (GGAF) – The City may establish a subcommittee consisting
of at least 2 City Council members and not more than 3 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
Finance Director 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 changeing firms if
deemed necessary by GGAF and City Council.
D. External Reporting – Upon completion and acceptance of the annual audit by the City’s auditors, the City
shall prepare a written Comprehensive Annual Financial Report (CAFR) which shall be presented to the City
Council within 180 calendar days of the City’s fiscal year end. The CAFR shall be prepared in accordance with
Generally Accepted Accounting Principles (GAAP) and shall be presented annually to the Government
Finance Officer Association (GFOA) for evaluation and consideration for the Certificate of Achievement in
Financial Reporting.
E. Internal Reporting – The Finance Department will prepare internal financial reports, sufficient to plan,
monitor and control the City’s financial affairs.
XIII. 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 and 2257 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. Refer to the separate
policy for details regarding:
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.
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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
Finance Director 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. Investment Strategies
5.6. Authorized Investments and Approved Broker/Dealer List – 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 met in order to be capitalized:
The asset owned by the City
The expected useful life of the asset must be longer than one year, or extend the life of an
identifiable existing asset by more than one year
The original cost of the asset must be at least $5,000
The asset must be tangible
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On‐going repairs and general maintenance are not capitalized. Public Education and Government
(PEG) Funds will capitalize assets in aggregate over $1,000 on an annual basis.
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.
XIV. 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. The City will seek input on major projects funded
with debt via bond elections, master planning exercises, board meetings, budget workshops, and other methods
as needed.
A Debt Condition Update report will be provided annually.
A. Usage of Debt – Long‐term debt financing will be considered for non‐continuous capital improvements of
which future citizens will be benefited. Alternatives for financing will be explored prior to debt issuance and
include, but not limited to:
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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 purchase 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 City’s ad valorem taxing authority backs
general obligation bonds. Conditions for issuance of general obligation debt include:
When the project will have a significant impact on the tax rate;
When the project may be controversial even though it is routine in nature; or
When the project falls outside the normal bounds of projects the City has typically done.
For debt programs that include multiple projects that will be issued over multiple years at the
discretion of the City Council, the City may approve a Contract with the Voters to manage future
property tax rate impacts. The Contract with the Voters will be included in educational information
for all applicable GO Bond elections, and will include a maximum annual tax rate increase and a
cumulative total per bond authorization maximum tax rate increase. The City will include these
impacts in its annual Debt Condition report.
The City Council will carefully manage the unissued GO Bond authorization through annual review of
related projects to ensure full disclosure on future timing of projects included in the bond package.
Timing of authorized projects and related bond issuance will be included in the Annual Budget and
published on the City’s website. Any changes to this schedule require specific Council authorization.
2. Revenue Bonds – Revenue bonds will be issued to provide for the capital needs of any activities
where the capital requirements are necessary for the continuation or expansion of a service. The
improved activity shall produce a revenue stream to fund the debt service requirements of the
necessary improvement to provide service expansion. The average life of the obligation should not
exceed the useful life of the asset(s) to be funded by the bond issue, and will generally be limited to
no more than twenty (20) years. An exception can be made for plant expansions or related system
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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 during the budget development process. Every effort
will be made to ensure public participation in decisions relating to debt financing.
4. Self‐supporting Certificates of 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) and the Georgetown
Economic Development Corporation (GEDCO) whom then pledge 4A and 4B sales tax revenue for
the repayment of that debt.
5. Internal borrowing between City Funds – The City Council can authorize use of existing long‐term
reserves as “loans” between funds. The borrowing fund will repay the loan at a rate consistent with
current market conditions. The loan will be repaid within ten (10) years. The loan will be considered
an investment of working capital reserves by the lending fund.
6. Other Short‐term Borrowing – The City may authorize the issuance of Public Property Finance
Contractual Obligations (PPFCO) which is short‐term obligations for the acquisition of personal public
property, such as equipment. PPFCOs are payable from either ad valorem taxes or another dedicated
revenue stream. Each issuance will be assessed to ensure cost effectiveness and the repayment
schedule will not exceed the useful life of the asset. Multiple equipment acquisitions can be grouped
in a single PPFCO issue in order to develop economies of scale.
C. Method of Sale – The City will use a competitive bidding process in the sale of bonds unless conditions in the
bond market or the nature of the issue warrant a negotiated bid. In such situations, the City will publicly
present the reasons for the negotiated sale. The City will rely on the recommendation of the financial advisor
in the selection of the underwriter or direct purchaser. The financial advisor must meet all licensing
requirements and comply with all Municipal Securities Rulemaking Board (MSRB) regulations. The City’s
financial advisor will not act as the underwriter on any City bond issue.
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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. Utility Debt Coverage Ratio – Refers to the number of times all utility supported 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. A coverage ratio of 1.5 times will also be required for all funds issuing self‐supporting
debt.
Compliance Status – Debt coverage ratio FY20198 in compliance.
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.
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The total outstanding bond reimbursements may not exceed the total amount of the City’s reserve funds.
XV.I. 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.A. 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.A. 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.A. Leases – The City may authorize the use of lease financing for certain operating equipment when it
is determined that the cost benefit of such an arrangement is advantageous to the City.
E.A. 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.
XVI.XV. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS
The City of Georgetown will maintain budgeted minimum reserves in the ending working capital/fund balances
to provide a secure, healthy financial base for the City in the event of a natural disaster or other emergency,
allow stability of City operations should revenues fall short of budgeted projections and provide available
resources to implement budgeted expenditures without regard to actual timing of cash flows into the City.
A. Operational Coverage – The City’s goal is to maintain operations coverage of 1.0 (one), such that operating
revenues will at least equal or exceed current operating expenditures. Deferrals, short‐term loans, or one‐
time sources will be avoided as budget balancing techniques. Reserves will be used only for emergencies or
non‐recurring expenditures, except when balances can be reduced because their levels exceed guideline
minimums as stated below.
1. Operating Reserves – The City will maintain reserves at a minimum of seventy‐five (75) days (20.83%)
of net budgeted operating expenditures. Net budgeted operating expenditure is defined as total
budgeted expenditures less interfund transfers and charges, capital improvements, general debt
service (tax supported), direct cost for purchased power and payments from third party grant
monies. The amount of these funds are allocated within the following operating funds and using the
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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. For asset replacement reserves, see Section
XI. Capital Maintenance and Replacement.
Compliance Status – Total reserves FY20198 in compliance.
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.General Fund reserves will be restricted
on the balance sheet. Reserves are allocated as follows:
a. Base Level Reserve – will equal ninety (90) days, or 25%, of current year budgeted operating
expenditures which will be designated for emergency use only. If the Base Level Reserve is used
during the fiscal year, the balance must return to the ninety (90) day requirement within the
following fiscal year’s adopted budget.
Compliance Status – General Fund 90 day Reserve FY20198 in compliance.
b. Economic Stability Uncertainty Reserve – will equal up to 6% of current year budgeted operating
expenditures. The reserve will be designated to temporarily offset a decline in any General Fund
revenue source during the current fiscal year or in planning the future budget year. The reserve
may be used when growth in any General Fund revenue source from one fiscal year to the next
is below zero. The reserve will be available to support only existing programs approved in a prior
fiscal year. Used funds shall be restored up to the 6% reserve as soon as practical.
Compliance Status – General Fund Stability Reserve FY20198 at 2%.
3. Tourism Fund – A minimum sixty ninety days (9060) days or 16.6725% 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.
Compliance Status – Tourism Fund Reserve FY20198 in compliance.
4. Joint Services Fund – A minimum ninety (90) days of operating expenses will be reserved for
unexpected delays in revenue or emergency expenses.
Compliance Status – Joint Services Fund Reserve FY2019 partial compliance. It is estimated to take
approximately 3 years to build the reserve to 90 days.
5. Fleet Fund – A minimum ninety (90) days of operating expenses will be reserved for unexpected
delays in revenue or emergency expenses.
Compliance Status – Fleet Fund Reserve FY2019 in compliance.
6. Facilities Fund ‐ A minimum ninety (90) days of operating expenses will be reserved for unexpected
delays in revenue or emergency expenses.
Compliance Status – Facilities Fund Reserve FY2019 in compliance
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7. Information Technology Fund ‐ A minimum ninety (90) days of operating expenses will be reserved
for unexpected delays in revenue or emergency expenses.
Compliance Status – IT Fund Reserve FY2019 in compliance
8. Emergency Medical Services Fund ‐ A minimum ninety (90) days of operating expenses will be
reserved for unexpected delays in revenue or emergency expenses.
Compliance Status – EMS Fund Reserve FY2019 not in compliance. It is estimated to take more than
three years for this fund to build a 90 day reserve.
9. Water Services Fund – Working capital reserves should be 25% or ninety (90) days of operating
expenses, net debt service and long‐term water contract costs. The Water Fund will maintain the
following reserves and restrict them on the balance sheet. 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.
A. Operations Contingency Reserve – A minimum ninety (90) days or 25% of operating
expenses, including wholesale water contracts and net of transfers, designated for
unexpected or emergency use during the fiscal year.
Compliance Status – Operating Water Fund Reserve FY2019 in compliance.
B. Non‐Operating Contingency Reserve – to maintain continuity of debt payments, capital
projects and to begin recovering from a natural disaster during the lag time of revenue
recovery. This reserve will be evaluated annually as part of the budget process,
considering the 5 year CIP and future debt requirements.
Compliance Status – Non‐operating Water Fund Reserve FY20198 in compliance.
4.10. Stormwater Drainage Fund – A minimum ninety (90) days or 25% of operating expenses, will be
reserved in 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.$250,000 for unforeseen emergencies or other potential revenue shortfalls.
Compliance Status – Stormwater Fund Reserve FY20198 in compliance.
11. Electric Fund – The Electric Fund will maintain the following reserves and restrict them on the
balance sheet: 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.
A. Operations Contingency Reserve – A minimum ninety (90) days or 25% of operating
expenses, net of transfers and purchased power, designated for unexpected or emergency
use during the fiscal year and to be replenished in the following year’s budget.
Compliance Status – Operating Contingency reserve FY2019 in compliance.
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B. Non‐Operating Contingency Reserve – to maintain continuity and begin recovery process
from a natural disaster during the lag time of revenue recovery:
a. 1% of historical rate base (total assets plus accumulated depreciation)
b. 1/5th of the average cash funded portion of the 5 year CIP
c. At least 50% of annual debt service payment
Compliance Status – Non‐operating reserve FY2019 in partial compliance. It is estimated to
take 1 year to complete this reserve after enacting the new cost of service rate structure.
A.C. Rate Stabilization Reserve – Up to 10% of purchased power costs will be reserved to protect
against energy market exposure and to maintain wholesale power contracts and stability
until expenses are recovered through revenues generated in the Power Cost Adjustment
Factor.
Compliance Status – Electric FundRate stabilization rReserve FY20198 not in compliance. It is
estimated to take 3 years to build this reserve after enacting the new cost of service rate structure.
5.12. Airport Fund – A contingency reserve of ninety (90) 75 days of operating expenses will be
maintained in the fund for unforeseen or emergency expenditures. The 75 day reserve will represent
all operating expenses minus fuel costs and any transfers. Used funds should be replenished in the
following year’s budget.
Compliance Status – Airport Fund Reserve FY20198 in compliance.
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 and is outlined in Section III.
J. Use of Unanticipated and Unappropriated General Fund Balances.
B. Liabilities and Receivables – Procedures will be followed to maximize discounts and reduce penalties offered
by creditors. Current liabilities will be paid within 30 days of receiving the invoice. Accounts Receivable
procedures will target collection for a maximum of 9030 days of service. The Finance Director 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 Comprehensive Aannual Financial Rreport to the City Council.
C. Capital Project Funds – Every effort will be made for all monies within the Capital Project Funds to be
expended in a timely manner preferably within thirty‐six (36) months of receipt. Due to the long timeline of
some projects, unused cash or bond proceeds will be reserved on the fund schedule and appropriated when
needed. 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
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any unexpected excess to be approved for use according to the bond covenant and opinion of bond counsel
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.
Compliance Status – Debt Fund Reserve FY20198 in compliance.
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 quarterly financial
mid‐year and annual reports to the City Council for the Electric, Water and General Debt Service Funds. 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 < 0.51
Enterprise Operating Coverage: Operating revenue divided by operating expense
OR/OE AL > 1.25
Times Coverage Ratio: Operating revenue less operating expense divided by
annual debt service
(OR‐OE)/DSV AL > 1.5
The City will 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.
Page 66 of 102
32
FY2019 Annual Budget
XVII.XVI.INTERNAL CONTROLS
A. Written Procedures – Wherever possible, written procedures will be established and maintained by the
Finance Director 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 Finance Director 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 Director
will be notified. The City Manager will also be notified depending on the seriousness of the
infraction.
3. The Finance Director and City Manager will present an annual audit plan to the General Government
and Finance board. Results of all internal audits will be provided to the GGAF and City Council at
year‐end.
C. Directors Responsibility – Each 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.
Page 67 of 102
FY2019 Annual Budget
Fiscal and Budgetary Policies
Update
GGAF 6‐27‐18
Page 68 of 102
FY2019 Annual Budget
Purpose
•Fiscal and budgetary policies guide:
–Budget development and monitoring process
–Debt philosophy and process
–Accounting and audit procedures
•Reviewed annually by GGAF and Council as
part of budget development process
Page 69 of 102
FY2019 Annual Budget
Administrative Changes
•Clarify existing wording and formatting
•Remove old language that no longer applies
•Update compliance for FY 2019
Page 70 of 102
FY2019 Annual Budget
Substantive Changes
•Changing the meaning of the policy
–Calculation change
–Definition change
–Change in decision maker
•Adding new policies
Page 71 of 102
FY2019 Annual Budget
Revenue Management
•(Section IV)
–Enterprise Activity Rates (B.7.)
•Update Electric Reserve reference – covered in detail in
a later section
•Add Solid Waste services to description of how utility
rates are established
–Based on the wholesale cost of service, factoring in
conservation incentives, plus a return to the General Fund for
administrative costs of contract and wear and tear on City
streets
Page 72 of 102
FY2019 Annual Budget
Revenue Management
•(Section IV)
–Other Funding Alternatives(B.10.)
•Update Grants Description
–Updated with new grants administration and reporting policy
implemented in response to FY 2017 year‐end audit
compliance weakness
Page 73 of 102
FY2019 Annual Budget
Changes to Reserves
•Reserves in Multiple Funds
•Why have them?
–Economic downturns & catastrophic events
•Directly correlates to bond rating
•Continuity of debt payments, payroll, existing programs, and
projects
–Liquidity to move quickly on projects
–Build up cash for major capital replacements
•How much should they be?
•When should we use them and replenish them?
Page 74 of 102
FY2019 Annual Budget
The Golden Triangle
Reserves $
Time
Max
Min
Actual
Page 75 of 102
FY2019 Annual Budget
Staffing and Compensation
•(Section VI)
–Self‐Insurance Program (C.2)
•Reserves
–Define IBNR reserve of between 5 and 10% of annual costs
–Define Rate Stabilization Reserve of between 10 and 20% of
annual costs
–Define relationship between premium forecasts and use of
reserves
Page 76 of 102
FY2019 Annual Budget
Capital Maintenance and Replacement
•(Section XI)
–Internal Service Funds (C.1, 2, 3)
•Asset replacement reserves for Fleet, Facilities and IT
Funds
•Define reserve calculation as the average of the next five
years on the capital replacement schedule
•Fleet and IT in compliance
•Build Facility reserve up over several years
Page 77 of 102
FY2019 Annual Budget
Financial Conditions, Reserves, and
Stability Ratios
•(Section XV)
–Multiple Funds (Multiple Sub‐Sections)
•Remove language designating Electric Fund as
containing the remaining balance of the Citywide 75 day
contingency reserve
•Provide detail on distinct reserves for the Electric Fund
and Water Fund related to the rate studies
•Increase the number of funds to carry a 90 day
contingency reserve
Page 78 of 102
FY2019 Annual Budget
Financial Conditions, Reserves, and
Stability Ratios
•Impact of Changes to Reserves
–Citywide 75 days stays compliant
–Funds in compliance for 90 days: General, Tourism,
Fleet, Facilities, IT, Water, Electric, Stormwater,
Airport
–Funds needing to build to compliance to 90 days
over next several years: EMS, Joint Services
Page 79 of 102
FY2019 Annual Budget
Next Steps
•Receive GGAF Feedback
•Council Workshop July
•Adopt policies with budget in September
Page 80 of 102
City of Georgetown, Texas
Government and Finance Advisory Board
June 27, 2018
SUBJECT:
Staff presentation and disc ussion on the City’s up d ate p ro cess fo r the 2030 Comprehensive P lan. – Nat
Waggo ner, Lo ng R ange P lanning Manager
ITEM SUMMARY:
The p urpose of this item is to d is cus s and rec eive feedbac k o n the proc es s fo r the update to the 2030
Comprehensive Plan. T he p lan has not been updated in ten years.
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Nat Waggoner, Long Range Planning Manager
ATTACHMENTS:
Description Type
Comp Plan Pres entation Cover Memo
Page 81 of 102
2030 PLAN UPDATE
Steering Committee Meeting #1 | Project Management| June 7, 2018
Page 82 of 102
Part I
PROJECT OVERVIEW
Page 83 of 102
INTRODUCTIONS
Page 84 of 102
STEERING COMMITTEE
Technical
Advisory
Committee
Steering
Committee
Joint Sessions
P&Z/Council
General
Public
Alignment
Updated Demographics
Housing Element Update
Housing Toolkit
Gateway Development
Strategies
Williams Drive Subarea
Plan
Growth Scenarios
Future Land Use Map
Update
Public Engagement
Implementation Strategies
Adoption
Page 85 of 102
VISION STATEMENT
Visioning objectives:
City Council and community alignment on
vision for Georgetown
Building block for City Council goal‐setting
First step in future branding initiatives and work
on update of the comprehensive plan
Vision Development Process:
2 Community surveys; over 1100 online
responses
Workshops and meetings with Council
members, community event
Page 86 of 102
Part II
PLANNING PROCESSES
Session 1 – Comprehensive Planning
Page 87 of 102
Sec…to promote and strengthen the existing role, processes and
powers of City of Georgetown …to guide, regulate, and manage the
future development … to assure the most appropriate and beneficial
use of land, water and other natural resources, consistent with the
public interest.
SEC. 1.08 OF THE CITY CHARTER
Page 88 of 102
The comprehensive plan shall contain the Councilʹs policies for growth,
development and beautification of the land …, or for geographic portions
thereof including neighborhood, community or area‐wide plans.
…the adopted comprehensive plan shall have the legal status set forth
herein, and that all public and private development should be in conformity
with such adopted comprehensive plan or element or portion thereof.
SEC. 1.12 OF THE CITY CHARTER
Page 89 of 102
A COMPREHENSIVE PLAN
A PLAN IS A:
•Recommendation and foundation
document for development
•City policy guide/basis for decision‐
making
•Rational basis for zoning
•Basis for the Capital Improvement Plan
(CIP)
•Framework for public sector development
investments
A PLAN IS NOT:
•A zoning ordinance
•Rigid policy
•The final answer
Page 90 of 102
WHY WE NEED AN UPDATE
•New ability to evaluate cost to serve
•Utility demand and service expansion driven by notable
growth
•Overhauled tool to align Council goals, vision with
development strategies, tools and community partners
Page 91 of 102
•Developed through robust, innovative public engagement,
with methods to engage the public where they exist;
•Fiscally informed, and
•Aligns staff processes with Council goals/objectives in a
measurable, reportable (online), meaningful way.
WE NEED A PLAN THAT IS:
Page 92 of 102
COMPREHENSIVE PLAN SUPPORTS
Commissions/Boards How
Planning and Zoning Commission &
City Council
Appropriate land use types
Georgetown Transportation Advisory Board Estimate traffic and circulation needs ‐
Overall Thoroughfare Plan (OTP)
GUS ‐Utility modeling Intensity of land uses –
Utility modeling
Georgetown Independent School District
(GISD)
Existing and future subdivisions
Parks Board Demand and siting –
Parks & Rec
Page 93 of 102
Part III
WORK SESSION
Session 1 –Project Steering
Page 94 of 102
PROJECT CALENDAR
Page 95 of 102
COMMITTEE WORK PLAN ‐2018
Kick Off Jun‐18
Project Overview
Comprehensive Planning Process
Introduction of Public Engagement Plan
Discussion of Project Challenges and Remedies
Alignment &
Goal Setting
Jul‐18
Review contributing policies, goals and master plans
Provide recommendations for Public Engagement Plan
Introduce Housing Element and Toolkit Scope
Consultant team will be present.
Aug‐18
Review and discuss alignment matrix
Review demographics
Discuss Public Meeting #1
Sep‐18 Prepare for Public Meeting #1.
Technical Studies
Oct‐18
Review Public Meeting #1 outcomes
Discuss Housing Inventory
Nov‐18 Discuss Neighborhood Profiles
Discuss Preservation Analysis
Dec‐18
BUS TOUR
Prepare recommendations/findings of demographics, housing inventory &
classification.
Page 96 of 102
COMMITTEE WORK PLAN ‐2019
Technical Studies
Jan‐19
Review State of City Report
Prepare for Public Meeting #2
Williams Drive/Gateways
Feb‐19 Review Growth Scenarios #1
Mar‐19
Review Public Meet
Prepare summary of findings for Steering Committee, Joint Meeting.
Review Growth Scenarios #2
Review Housing Toolkit #1
Apr‐19
Review Growth Scenarios #3 (if needed)
Review Future Land Use Map #1
Review Housing Toolkit #2
Implementation
May‐19 Prepare for Public Meeting #3
Jun‐19
Review Public Meeting #3 outcomes.
Prepare summary of findings for Steering Committee, Joint Meeting.
Provide recommendations for Implementation matrix.
Jul‐19 Review Annual report template
Aug‐19 Prepare for Public Meeting #4
Adoption Sep‐19 Review Public Meeting #4 outcomes
Prepare summary of findings for Steering Committee, Joint Meeting
Oct‐19
Page 97 of 102
PUBLIC ENGAGEMENT PLAN
•2030.Georgetown.org
•Goals
•Strategies
•Engagement Opportunities
•Public Meetings
•Virtual Participation
•Meetings‐to‐go
•Surveys
•Idea Boards
•Outreach events
•Request a Planner
Page 98 of 102
STAKEHOLDERS
Government Events Business Civic Groups
Georgetown Transportation
Advisory Board (GTAB)
Music On the Square Real Estate Roundtable –Fall Sertoma Club
Georgetown Economic
Development Corporation
(GEDCO)
Book Mobile Real Estate Roundtable –
Spring
Kiwanis Club
General Government and Finance
Advisory Board (GGAF)
Retail Center Leadership Georgetown
Georgetown Housing Advisory
Board Story time at Library Georgetown Health
Foundation
PTA Meetings/GISD Christmas Stroll Downtown Quarterly Update
Georgetown Parks Advisory
Board
Chamber of Commerce Breakfast
Links
Georgetown Young
Professionals
Georgetown Commission on
Aging Senior Expo Georgetown Ministerial Alliance
Georgetown Library Board Market Days Southeast Georgetown
Community Council
National Night Out Georgetown Neighborhood
Alliance
Local athletic activities
Page 99 of 102
PUBLIC MEETING #1 – 10/2/18
•Citywide, 1 day engagement lead by the City
in partnership with businesses, community
leaders, neighborhoods
•Designed to
•Maximize participation
•Innovate in our approach to public engagement
•Get folks excited participating in the overall
process
•Easy, Simple format
•Meeting in a Box
•Coupled with National Night Out
Page 100 of 102
REFERENCES
Web based,
Implementation
Industry
Standards
Public
Engagement
Nashville
Next
Plano
Tomorrow
American
Planning
Association
Page 101 of 102
THANK YOU
2030.georgetown.org
2030@georgetown.org
Page 102 of 102