HomeMy WebLinkAboutAgenda CC 02.28.2012 WorkshopNotice of Meeting of the
Governing Body of the
City of Georgetown, Texas
FEBRUARY 28, 2012
The Georgetown City Council will meet on FEBRUARY 28, 2012 at 3:00 P.M. at Council Chambers - 101
East 7th Street, Georgetown, Texas
If you need accommodations for a disability, please notify the city in advance.
Policy Development/Review Workshop -
A Discussion of the Comprehensive Annual Financial Report for Fiscal Year Ended September 30, 2011 --
Micki Rundell, Chief Financial Officer; Susan Morgan, Finance Director; and Lorie Lankford,
Controller
B Overview of the City’s current outstanding and proposed debt obligations -- Micki Rundell, Chief
Financial Officer
C Discussion and possible direction to staff on benchmarks for the 2012 employee compensation study --
Laurie Brewer, Deputy City Manager and Kevin Russell, Human Resources Director
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the items listed below will be discussed in closed session and are subject to action in the regular
session.
D Sec. 551.071: Consultation with Attorney
- Advice from attorney about pending litigation that has been filed against the City or contemplated
litigation and other matters on which the attorney has a duty to advise the City Council, including but
not limited to this week's agenda item
E Sec. 551.072: Deliberation about Real Property
- Discussion and deliberation concerning proposed real estate purchase of a 17 acre tract along the South
San Gabriel River on Hwy 29 for parkland
- Discussion and deliberation concerning proposed real estate purchase of an approximately 12.05 acre
tract at Inner Loop/FM 1460
F Sec. 551.074: Personnel Matters
- City Attorney Annual Performance Evaluation
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 _________________, 2012, 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
February 28, 2012
SUBJECT:
Discussion of the Comprehensive Annual Financial Report for Fiscal Year Ended September 30, 2011 --
Micki Rundell, Chief Financial Officer; Susan Morgan, Finance Director; and Lorie Lankford, Controller
ITEM SUMMARY:
The City’s auditors and City staff will present the City’s Comprehensive Annual Financial Report for the
Fiscal Year Ended September 30, 2011. The City’s external auditors, with the firm of CliftonLarsenAllen,
LLP, will also discuss the results of the auditors’ independent audit of the CAFR, compliance with auditing
standards, testing over internal controls and fraud risk assessment.
COMMENTS:
Acceptance of this report is included on the consent Council agenda.
FINANCIAL IMPACT:
SUBMITTED BY:
Cover Memo
Item # A
City of Georgetown, Texas
February 28, 2012
SUBJECT:
Overview of the City’s current outstanding and proposed debt obligations -- Micki Rundell, Chief Financial
Officer
ITEM SUMMARY:
Each year in preparation of the annual bond issuance process, staff prepares an overview of the City’s current
outstanding debt obligations, as well as, a preview of the upcoming bond issue that the Council will consider
in April 2012.
This overview will include Revenue Bonds related to the City’s utilities, as well as, both self-supporting and
taxable general debt obligations.
FINANCIAL IMPACT:
SUBMITTED BY:
ATTACHMENTS:
2012 Debt Overview Presentaion
Cover Memo
Item # B
City of Georgetown
Debt Overview
February 28, 2012
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Debt Update
• Types of Debt
–General Obligation
–Certificates of Obligation
• Limited Tax Notes
–Leases
–Revenue Bonds
• Current City Debt Conditions
• Upcoming Debt Issues
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Types of Debt
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General Obligation Debt
• Tax Supported
– City issues 20 Year Bonds
– Can be extended to match life of capital
asset
• Building amortize 30 years
• Voter Approved
• Includes amounts approved 2004 &
2008 bond elections
– First May 2011 Bonds to be issued in 2012 At
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Certificates of Obligation
• Allowed under State Law
– Considered “routine”
– Public Notice required
• Generally considered “Tax Supported”
• Majority - 20 year bonds
– Maturities match life of asset
• City issues self-supporting CO debt
– City saves on interest cost by issuing CO debt
rather than revenue bonds
– Repaid through fees or rates
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Self-supporting CO Debt
• Interest savings by issuing CO debt
rather than revenue bonds can be
1% or greater
–GTEC - funded thru sales tax revenue
–Stormwater Drainage Utility - funded
thru user fees
–Airport - funded thru user fees
–Utility Funds – funded through rates
• Electric and/or Water/Sewer At
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Other Tax Supported Debt
• Limited Tax Notes
– Used in 2009 for Electric debt
• Cost savings > $75,000 annually
• Will be refinanced in 2012 bond process
• Certificates of Participation
– Usually 3 year notes
– Previously used to fund public safety vehicles
– City currently has no outstanding Certificates
of Participation
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GO/CO Debt Outstanding
As of December 31, 2011:
• $ 74,674,860- Tax Supported
– Includes:
• $14,570,000– 2004 Authorization – All issued
• $14,545,000– 2008 Authorization
– $33,995,000 authorized not issued - Roads
– $33,000,000 authorized not issued – Parks
• Citizens authorized $29,500,000 in May 2011
for Public Safety Facility
• No bonds from this authorization have been issued At
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GO/CO Debt Outstanding
As of December 31, 2011:
• $25,135,140 - Self-supporting
– $14,939,078 - GTEC
– $3,400,799 – Stormwater Drainage
– $985,263 – Airport
– $5,810,000 – Electric LTN
• Will be refinanced in 2012 with Revenue Bonds
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CO Debt – Historical
Self-supported includes GTEC
Fiscal Year Tax Supported Self-Supported
2000/01 $21,170,615 $4,939,385
2001/02 $20,065,626 $4,734,374
2002/03 $19,092,455 $7,639,031
2003/04 $20,792,386 $16,663,851
2004/05 $28,140,892 $20,675,095
2005/06 $37,583,855 $21,111,145
2006/07 $52,326,112 $21,068,888
2007/08 $54,293,528 $20,661,472
2008/09 $57,097,773 $25,692,525
2009/10 $68,987,618 $26,217,382
2010/11 $74,674,860 $25,135,140
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General Debt Capacity
• Allowable Levy -
$1.50 per $100
valuation
• Current levy -
$0.1646
• Percentage of
Allowable used –
10.97%At
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GO/CO Debt - Historical
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Revenue Bonds
• Funds the City’s utility infrastructure
– Issued on Electric/Water/Wastewater system
• Currently 20 year bond – level debt service
– Supported through system revenue
– “Coverage” required
• 1.35 times - bond covenants
• 1.5 times - City Fiscal & Budgetary Policy
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Revenue Bonds
• Outstanding balances as of
December 31, 2011:
–$23,218,648- Electric Fund
–$35,511,352- Water Services Fund
(W/WW)
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Utility Revenue Bond Coverage
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Revenue Debt - Historical
Fiscal Year Water Electric
Services Services
2000/01 $22,115,101 $9,959,899
2001/02 $20,658,178 $9,346,822
2002/03 $25,224,894 $9,273,620
2003/04 $28,845,175 $10,058,588
2004/05 $30,195,976 $9,868,036
2005/06 $28,076,208 $17,808,792
2006/07 $27,268,155 $23,801,845
2007/08 $32,655,050 $24,624,950
2008/09 $30,359,178 $23,280,822
2009/10 $37,977,843 $24,882,157
2010/11 $35,511,352 $23,218,648
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Revenue Debt - Historical
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Current City Debt
Conditions
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Bond Ratings
• Rating Agencies review financial and
management conditions
• Determine “Credit Worthiness”
• Impacts cost of issuance and funds
• City’s Current Bond Rating:
–Moody’s
• A2 General Obligation & Revenue
–Standard & Poors
– AA+ General Obligation
– AA Revenue
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Population Growth
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Total Tax-Guaranteed Debt Per Capita
(Includes Self-supporting Debt)
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Total Tax Supported Debt per Capita
(Funded through Property Tax)
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Assessed Valuation
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Total Tax Supported Debt Compared to
General Sales Tax Revenue Growth
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City Assets Net of Related
Debt
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Debt to Assessed Valuation
Comparison
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Utility Customer Growth
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Outstanding Utility Debt per
Customer
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Total Electric Debt Compared
to Electric Assets
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Total Water Service Debt Compared
to Water Service Assets
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Upcoming Debt Issues
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2012 Bond Issue
• General Obligation Bonds – Public Safety
Facility
– $2.5M for design and preliminary engineering
• Consider issuing larger amount due to market
conditions and related risk
• Certificates of Obligation
– Fire Truck (10 yr) $500,000
– Public Safety vehicles (5 yr) $1,000,000
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2012 Bond Issue (con’t)
• Total Tax Supported “NET” proceeds =
$4,050,000*
– Issuance costs will be added
– CO “Not to Exceed” amounts
– Tax impact estimated = $0.0139
• Refunding opportunities
– Various outstanding bonds to be reissued at
lower rates = interest savings
• Final amount to be determined closer to sale date
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Next Steps Debt Issuance Process
• Council authorizes SPFI to proceed with
bond documents – Feb 28, 2012
• Council approves “NOTICE OF INTENT”
to issue CO Debt – March 13, 2012
– “Not to Exceed” amount finalized
• Offering documents finalized
• Rating Agency presentation
• April 24 - Bond Sale
– Council adopts Bond Ordinances
• May 15 - Bond Closing
– City receives bond proceeds
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QUESTIONS?
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City of Georgetown, Texas
February 28, 2012
SUBJECT:
Discussion and possible direction to staff on benchmarks for the 2012 employee compensation study --
Laurie Brewer, Deputy City Manager and Kevin Russell, Human Resources Director
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Cover Memo
Item # C
City of Georgetown, Texas
February 28, 2012
SUBJECT:
Sec. 551.071: Consultation with Attorney
- Advice from attorney about pending litigation that has been filed against the City or contemplated litigation
and other matters on which the attorney has a duty to advise the City Council, including but not limited to
this week's agenda item
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Cover Memo
Item # D
City of Georgetown, Texas
February 28, 2012
SUBJECT:
Sec. 551.072: Deliberation about Real Property
- Discussion and deliberation concerning proposed real estate purchase of a 17 acre tract along the South San
Gabriel River on Hwy 29 for parkland
- Discussion and deliberation concerning proposed real estate purchase of an approximately 12.05 acre tract
at Inner Loop/FM 1460
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Cover Memo
Item # E
City of Georgetown, Texas
February 28, 2012
SUBJECT:
Sec. 551.074: Personnel Matters
- City Attorney Annual Performance Evaluation
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Cover Memo
Item # F