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Home My WebLink AboutAgenda CC 08.18.2015 SpecialNotice of Meeting of the Governing Body of the City of Georgetown, Texas AUGUST 18, 2015 The Georgetown City Council will meet on AUGUST 18, 2015 at 6:00 P.M. at the Council Chambers, 101 E. 7th St., 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, least four (4) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 113 East 8th Street for additional information; TTY users route through Relay Texas at 711. Regular Session (This Regular Session may, at any time, be recessed to convene an Executive Session for any purpose authorized by the Open Meetings Act, Texas Government Code 551.) A Call to Order - A Special Meeting of the City Council B Second Public Hearing on the proposed 2015 Property Tax Rate and the FY2016 Annual Budget - - Micki Rundell, Chief Financial Officer Adjournment Certificate of Posting I, Jessica Brettle, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all times, on the _____ day of _________________, 2015, at __________, and remained so posted for at least 72 continuous hours preceding the scheduled time of said meeting. __________________________________ Jessica Brettle, City Secretary City of Georgetown, Texas City Council Agenda August 18, 2015 SUBJECT: Call to Order - A Special Meeting of the City Council ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Cover Memo Item # A City of Georgetown, Texas City Council Agenda August 18, 2015 SUBJECT: Second Public Hearing on the proposed 2015 Property Tax Rate and the FY2016 Annual Budget -- Micki Rundell, Chief Financial Officer ITEM SUMMARY: The Texas Tax Code requires the City Council to hold two public hearings on the proposed tax rate prior to adoption if the proposed rate exceeds the current effective tax rate. The 2015 proposed tax rate of $0.4350 exceeds the effective rate of $0.41715 by 4.5%. The increase is required to pay City operating costs and various new enhancements to City services to meet the growing demands of the community. Also, additional debt service funding is included for an October 2015 bond package to include the 1st $10M of the 2015 Road Bond package and $1.7M of the 2008 Parks Bond to complete funding for the 1st phase of the San Gabriel Park rehabilitations. The Council is not required to adopt this rate; however, this is the maximum rate the Council may consider. An overview of the tax calculation and related General Fund revenue and expenditure information will also be provided at the hearing and was reviewed with Council at budget workshops held on July 16 & 17, and when the City Manager’s Proposed Budget was presented to Council on July 28. The City Manager’s proposed 2015/16 Annual Budget is available with the City Secretary, on the City’s website and at the Georgetown Public Library. SPECIAL CONSIDERATIONS This public hearing and the hearing conducted on Tuesday, August 11 fulfill the requirements of the Texas Local Government Code, Section 102.006 providing for public comment on the proposed 2014/15 Annual Budget and for adoption of the City’s 2015 tax rate under Chapter 26 of the Texas Property Tax Code. Both the 2015 Tax Rate and 2015/16 Annual Budget are scheduled for first reading at the August 25, 2015 regular Council meeting. FINANCIAL IMPACT: The City Manager’s proposed 2015/16 Budget is $284 million, and has been reviewed and adjusted by Council at its July 28 meeting. SUBMITTED BY: Micki Rundell, Chief Financial Officer - bh ATTACHMENTS: Presentation Publication Notice of Property Tax Rate Cover Memo Item # B 8/4/2015 1 FY2016 Annual Budget City of Georgetown 2015/16 Annual Budget 2016 Property Tax Rate Public Hearing August 11, 2015 FY2016 Annual Budget Major Impacts On FY2016 Budget •Managing Growth –7.6% growth in 2014; 11.4 new residents a day –Development pipeline shows growth trend will continue •Information Technology –Replacement of legacy systems no longer supported –Using technology to enhance service delivery •Ongoing Maintenance of Infrastructure –Continued funding Internal Service Funds for capital replacement and maintenance –Ongoing commitment to street maintenance Attachment number 1 \nPage 1 of 17 Item # B 8/4/2015 2 FY2016 Annual Budget Major Impacts On FY2016 Budget •Key Service Investments –City of Georgetown EMS Activation –Western District Merger –In‐house utility plant operations –CVB Service Delivery –Parks and Recreation Enhancements •Preparing for our Future (Studies/Reviews) –Facility evaluations/studies –Surveying and Goal Setting FY2016 Annual Budget TOTAL BUDGET = $285M •23.3% increase over prior year –Inclusion of Rural Water in FY2016 –Increased General Capital Projects ‐$37.4M –Increased Contingency Reserves •General Fund = $54M –Up 2.7% increase over FY2015 •Total Water Services & Electric Funds = $128.2M –Purchased Power = $34M Attachment number 1 \nPage 2 of 17 Item # B 8/4/2015 3 FY2016 Annual Budget FY2016 Contingency Reserves = $22.23M •Emergency reserves –Uses determined by Fiscal & Budgetary Policy •75 days city‐wide operating expenses –Increased from $18.82M –Due to operational increases & addition of Rural Water operations in FY2016 •Includes: –General Fund = 90 days operating expense –$7.695M ‐2.9% increase or $230,000 in FY2016 FY2016 Annual Budget $285M BUDGET BY FUND Attachment number 1 \nPage 3 of 17 Item # B 8/4/2015 4 FY2016 Annual Budget Major Goals ‐FY2016 Budget •Initiate Voter Approved Bonds –Road Bonds for Southwest Bypass –1st phase ‐Garey Park –1st phase ‐San Gabriel Park rehabilitation –Goal to minimize impact on property tax rate •Launch EMS operations –Planned for October1 •Continued investment in maintenance & capital replacement –Increase funding for Parks maintenance FY2016 Annual Budget Major Goals ‐FY2016 Budget •Sustain competitive employee compensation & benefits profile –Funds Public Safety step program –Market adjustments for Public Safety –Market adjustments for non‐civil service employees –2% merit –10% increase for employee health insurance •Sustain & enhance emergency preparedness services –Adds Emergency Management Coordinator Attachment number 1 \nPage 4 of 17 Item # B 8/4/2015 5 FY2016 Annual Budget FY2016 General Fund Budget = $54M •2.7% increase over FY2015 Adopted Budget •Revenue up 4.38% in FY2016 •Includes $515,714 transfer of YE2015 Fund Balance to Council Discretionary SFR –For future allocation by Council FY2016 Annual Budget General Fund Budget = $54M Property tax revenue = $11.9M @0.434 Environmental Svcs 12%Return on Investment 14% Charges for Services 29% Sales Tax 22% Property Taxes 23% Attachment number 1 \nPage 5 of 17 Item # B 8/4/2015 6 FY2016 Annual Budget FY2016 Annual Budget Major Goals ‐FY2016 Budget •Provides resources needed to keep up with current growth ‐General Fund: –2 PT ballfield maintenance workers •Maintain tournament quality ball fields –School Resource Officer for middle schools •50% funded by GISD –Cataloging Librarian •Meet growing demands at Library –2 Building Inspectors •Improve response times and service delivery Attachment number 1 \nPage 6 of 17 Item # B 8/4/2015 7 FY2016 Annual Budget FY2016 Budget: General Fund Other new service enhancements: •Regional SWAT for Police •Additional technology improvements for Public Safety •Bridge deicing program in Streets •Strategic business planning ‐Planning Department •Citizen & Employee Surveys •Phase 2 – Historic Resource Survey •Animal Shelter Master Plan •Williams Drive corridor study •Council goal setting facilitation & implementation FY2016 Annual Budget General Fund –PROPERTY TAX •2015 Assessed Valuation = $5.9 Billion –11.2% increase over 2014 –Existing property increased 8.11% over PY –Frozen values increased 18.6 % to $1.97B •Represents 33.3% of TOTAL TAX BASE •New & Annexed value = $203M •Average Taxable Homer Value = $246,986 –Up $23,164 over 2014 Attachment number 1 \nPage 7 of 17 Item # B 8/4/2015 8 FY2016 Annual Budget 2015 TAX RATE •PROPOSED RATE = $0.43400 –Same as 2014 Tax Rate –4.04% greater than Effective Tax Rate •Effective Tax Rate = $0.41715 –Rate needed to generate same revenue as PY on current assessed valuation •Rollback Rate = $0.44221 –Maximum rate without a rollback election •Projected tax bill for “average home” = $1,018.97 –9.9% increase over PY average bill FY2016 Annual Budget 2015 PROPOSED TAX RATE = $0.43400 •Maintenance & Operations = $0.20716 –Funds General Fund operations •Interest & Sinking = $0.22684 –Includes $0.0014 for October Bond Issue •$10M Road Bond –First phase of Southwest Bypass funding •$1.7M for San Gabriel Park improvements Attachment number 1 \nPage 8 of 17 Item # B 8/4/2015 9 FY2016 Annual Budget FY2016 Annual Budget Attachment number 1 \nPage 9 of 17 Item # B 8/4/2015 10 FY2016 Annual Budget FY2016 –SALES TAX REVENUE •FY2015 projection dampened due to slowing trend indicators –Hyper‐growth slowing in several sectors •FY2016 BUDGET includes 2.5% increase over YE2015 –Total Sales Tax = $21.5M FY2016 Annual Budget Attachment number 1 \nPage 10 of 17 Item # B 8/4/2015 11 FY2016 Annual Budget FY2016 UTILITY RATES •Water or Sewer rates –No changes –W/WW Impact Fees to be adjusted October 2015 –Sewer to be reviewed in FY2016 •Electric Rates –No increases –Potential savings after January 2016 •Stormwater Drainage ‐$1.25per month increase –Funds MS4 mandated requirements •Sanitation ‐No change –Monthly yard waste pick up under existing contract to begin October 2015 FY2016 Annual Budget Major Goals ‐FY2016 Budget •Provides resources needed to keep up with current growth ‐Utility Funds: –10 positions in Electric Fund •Meet service demands & provide redundancy within system •24/7 Control Center operations –15 positions in Water Services Fund •Brings Water & Wastewater Plant operations in house •Up to $5M in savings over next 5 years –2 positions in Stormwater Drainage Fund •Meet needs of MS4 regulatory permit Attachment number 1 \nPage 11 of 17 Item # B 8/4/2015 12 FY2016 Annual Budget FY2016 Budget: Utility Funds Electric Fund enhancements: •100% “Green” logo replacement •Redundant radio system •Promote / Sponsorship of Holiday Lighting Water Services Fund enhancements: •Conservation Program –Irrigation & landscape rebates –Demonstration gardens •Western District meter audits •New Customer Information/Billing system FY2016 Annual Budget Major Goals ‐FY2016 Budget •Provides resources needed to keep up with current growth ‐Other Funds: –1 CSR position in Customer Care •Meet needs of Western District –2 positions in System Engineering •Support EAM system data management •Utility CIP Inspector –1 Mechanic in Fleet ISF •Growing demand from Western District & TRV program –2 PT positions in CVB/Tourism Fund •Support Vistior’s Center operations Attachment number 1 \nPage 12 of 17 Item # B 8/4/2015 13 FY2016 Annual Budget FY2016 Budget: Internal Service Funds Facilities ISF enhancements: •Lease of vertical life •Relocation ‐Planning department to Old Police Bldg Fleet ISF enhancements: •Funds for TRV maintenance Technology ISF enhancements: •Disaster Recovery backup system •Cyber protection and firewall upgrades •Parks & Recreation management software replacement •VoIP phone system replacement •Contract management software FY2016 Annual Budget FY2016 Budget: Other Funds Airport Fund enhancements: •Pavement management •Temporary PT positions •Foreign object debris removal equipment Tourism Fund enhancements: •New vehicle for CVB •Special event shuttle –In conjunction with new convention center •Expanded advertising Attachment number 1 \nPage 13 of 17 Item # B 8/4/2015 14 FY2016 Annual Budget FY2016 Budget: Other Funds Street Maintenance Sales Tax SRF enhancements: •$3.36M of expenditures planned for FY2016 –Expends accumulated fund balance Main Street Facade Fund enhancements: •8th Street Alley project – feasibility study –Funded through 2015 “Table on Main” fundraiser •Holiday Lighting funded through Electric Fund FY2016 Annual Budget FY2016 Budget: Capital Improvement Projects •Downtown projects $1,624,500 –Planning Festival area at Downtown West –Austin Ave Bridge design –Street light upgrades & replacements –ADA improvements –Reconfigure parking areas •Facility Projects $9,407,049 –Downtown West construction –GMC Remodel –Transfer station/landfill improvements –Fire Station 6 design in conjunction with ESD 8 –ADA improvements Attachment number 1 \nPage 14 of 17 Item # B 8/4/2015 15 FY2016 Annual Budget FY2016 Budget: Capital Improvement Projects •Parks projects $5,850,000 –Phase 1 –San Gabriel Park rehabilitation –Phase 1 –GareyPark construction –Parks ADA transition plan improvements •Transportation Projects $20,000,000 –Southwest Bypass FY2016 Annual Budget FY2016 Budget: Capital Improvement Projects ‐Utilities •Electric Fund $4,958,000 –Electric SCADA & substation improvements •Water Services Fund $25,877,000 –Plant expansions –Pecan Branch & Berry Creek interceptors –Pastor Pump station improvements –Western District line improvements •Transportation $4,684,000 –Street mainentenace •Stormwater Drainage Fund $1,150,000 –System drainage improvements Attachment number 1 \nPage 15 of 17 Item # B 8/4/2015 16 FY2016 Annual Budget 2015/16 Proposed Debt •2015A General Obligation Bonds ‐ $10,000,000 –Road Bonds issued in October included 2015 Tax Rate •2016 General Obligation Bonds ‐ $14,700,000 –San Gabriel Park improvements ‐$1.7M •Total cost –Phase 1 = $2.7M balance funded with $1M in remaining 2013 GO Bond proceeds –Garey Park ‐$3M to begin construction –Road Bonds ‐$10M to complete SW Bypass –Issued in April 2016 for 2016 Tax Rate for 2016/17 FY2016 Annual Budget 2015/16 Proposed Debt •2016 Certificates of Obligation ‐$3,248,000 (net) –Austin Avenue Bridge Design –Transfer station & landfill repair –Facilities and ADA improvements –Public Safety vehicles –Technology equipment •2016 Utility Revenue Bonds ‐$9,805,000 –SCADA & Substation improvements –Western District water improvements –Pecan Branch and Berry Creek interceptors Attachment number 1 \nPage 16 of 17 Item # B 8/4/2015 17 FY2016 Annual Budget FY2016 Budget: Next Steps •Public Hearings –August 11 –August 18 •Ordinances –August 24 –First Reading –September 8 –Second Reading •October 1 – FY2016 Begins FY2016 Annual Budget Questions? Thank you! Attachment number 1 \nPage 17 of 17 Item # B Attachment number 2 \nPage 1 of 1 Item # B