HomeMy WebLinkAboutAgenda CC 07.12.2022 WorkshopN otice of M eeting of the
Governing B ody of the
C ity of Georgetown, Texas
J uly 12 , 20 22
The Georgetown City Council will meet on J uly 12, 2022 at 3:00 P M at Council and Courts Building,
510 W 9th Street Georgetown, Texas 78626
The City of Georgetown is committed to compliance with the Americans with Disabilities Act (AD A).
If you require assistance in participating at a public meeting due to a disability, as defined under the
AD A, reasonable assistance, adaptations, or accommodations will be provided upon request. P lease
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 808 Martin Luther King J r. Street, Georgetown, TX 78626 for additional
information; TTY users route through Relay Texas at 711.
Policy De ve lopme nt/Re vie w Workshop -
A P resentation and discussion regarding the FY2022 assessed value trends, the projected tax impact
of five-year capital improvement plan and tax-supported debt -- Nathan P arras, Assistant Finance
Director
B P resentation and discussion regarding various city-wide fee increases -- Nathan P arras, Assistant
Finance Director
C P resentation and discussion regarding the City's Real Estate Services division -- J im
Kachelmeyer, Assistant City Attorney; and Lauren Boenig, Real Estate Services Coordinator
Exe cutive Se ssion
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: Consul tati on w i th Attorney
Advice from attorney about pending or contemplated litigation and other matters on which the
attorney has a duty to advise the City Council, including agenda items
- Litigation Update
Sec. 551.072: Del i berati ons about Real P roperty
- P otential lease of office space - 295 S E Inner Loop
Sec. 551.086: Certai n P ubl i c P ow er Uti l i ti es: Competi ti ve M atters
- P urchased P ower Update
Adjournme nt
Ce rtificate of Posting
I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that
this Notice of Meeting was pos ted at C ity Hall, 808 Martin Luther King Jr. S treet,
G eorgetown, T X 78626, a plac e readily ac cessible to the general public as required by law, on
Page 1 of 61
the _____ day of _________________, 2022, at __________, and remained so pos ted for
at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting.
__________________________________
R obyn Dens more, C ity S ec retary
Page 2 of 61
City of Georgetown, Texas
City Council Workshop
July 12, 2022
S UBJEC T:
P resentation and discussion regarding the FY2022 assessed value trends, the projected tax impact of five-year capital
improvement plan and tax-supported debt -- Nathan P arras, Assistant Finance Director
I T EM S UMMARY:
Annually during the Budget process, staff bring forward an analysis of the Five-Year Capital Improvement P lan and the
General Debt Service Fund model. This tool assesses the impacts of issuing property-tax backed debt and allows for
scenario testing and the adjustment of multiple variables including assessed value, sales tax, tax rate distribution, and debt
service requirements.
Staff will recommend a balanced model to Council and seek the Council’s feedback on the funded projects. This
information then becomes part of the City Manager ’s P roposed Budget.
F I NANC I AL I MPAC T:
.
S UBMI T T ED BY:
Sharon P arker
AT TAC HMENT S :
Description
Tax S upported C I P and debt F Y2023-F Y2027
C I P F Y202-F Y2027 S chedule
Tax R ate Analysis
Page 3 of 61
FY2023-FY2027 TAX
SUPPORTED CAPITAL
IMPROVEMENTS AND DEBT
Page 4 of 61
2
FY2023: CAPITAL IMPROVEMENT PROGRAM
AGENDA
•Property tax overview
•Changes in assessed values
•Overview of tax supported debt model
•Summary of 5-year tax-supported capital improvement program
•Council feedback
Page 5 of 61
3
FY2023: CAPITAL IMPROVEMENT PROGRAM
PROPERTY TAX OVERVIEW
•Appraisal Roll will be certified on July 25th by Williamson Central Appraisal
District (WCAD).
•After the certification date, staff will meet with the Williamson County Tax
Assessor Collector’s Office and verify the Truth in Taxation form.
•This form calculates the No New Revenue rate and the Voter Approval rate.
•State requirement and must be published in the local paper and on City and WCAD websites.
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4
FY2023: CAPITAL IMPROVEMENT PROGRAM
PROPERTY TAX OVERVIEW
•The No New Revenue rate is the property tax rate the City would need to charge
the same properties as the previous year in order to produce the same amount of
property tax revenues while using the new valuations of the current year.
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5
FY2023: CAPITAL IMPROVEMENT PROGRAM
PROPERTY TAX OVERVIEW
•The Voter Approval rate is the maximum tax rate the City can set before requiring
an election to approve the tax rate. After adjustments for debt calculations, the
Voter Approval rate is equal to the No New Revenue rate times 3.5%.
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6
FY2023: CAPITAL IMPROVEMENT PROGRAM
PROPERTY TAX OVERVIEW
•A taxing unit that did not use all of its revenue growth may bank that unused
growth as long as the taxing unit averaged below 3.5 percent of the voter-
approval rate over three years.
•Unused Increment rate is the three-year rolling sum of the difference between
the actual tax rate and the voter-approval tax rate.
•Current unused increment is $0.00025
•Equates to approximately $25,000 in revenue based on current AV estimates
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7
FY2023: CAPITAL IMPROVEMENT PROGRAM
PROPERTY TAX OVERVIEW
•The total tax rate is made of two pieces:
•Operations and Maintenance (O&M) –used to fund salaries and benefits as
well as operational supplies for Public Safety, Parks & Recreation, Planning,
etc. in the General Fund
•Debt Service or Interest and Sinking (I&S) –used to pay principal and
interest on tax supported capital projects
•The 3.5% cap to the Voter Approval Rate only applies to the O&M side of the
tax rate
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8
FY2023: CAPITAL IMPROVEMENT PROGRAM
PROPERTY TAX OVERVIEW
•Truth in Taxation –Tax Rate Calculation Variables
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FY2023: CAPITAL IMPROVEMENT PROGRAM
CHANGES IN ASSESSED VALUE GROWTH
•Based on preliminary taxable values
•$2.67 billion in growth from existing properties
•$1.03 billion in new value
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10
FY2023: CAPITAL IMPROVEMENT PROGRAM
CHANGES IN ASSESSED VALUE GROWTH
•Based on FY2023 preliminary estimates
•Adjusted taxable value to include impact of increased Homestead Exemption
FY2022 FY2023 Estimate Variance
Total Taxable Value 7,610,830,867 10,309,383,811 35.5%
New Improvements and Personal Property 573,265,466 1,032,112,625 80.0%
Tax Ceiling 3,167,086,627 4,014,507,310 26.8%
TIRZ Value 297,861,078 413,913,296 39.0%
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FY2023: CAPITAL IMPROVEMENT PROGRAM
OVERVIEW OF TAX SUPPORTED DEBT MODEL
•Debt repaid with property taxes
•General Obligation Bonds (Voter approved)
•Parks and trails
•Roads and bridges
•Sidewalks and intersections
•Non-public safety facilities*
•Certificate of Obligation Bonds
•Public Safety facilities
•Renovation
•Capital Equipment
•Vehicles
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FY2023: CAPITAL IMPROVEMENT PROGRAM
OVERVIEW OF TAX SUPPORTED DEBT MODEL
•H.B. 1869 passed into law in 2021
•New definitions of what is eligible for certificates of obligation (no voter
approval)
•Affect to Georgetown –some facilities will shift to bond elections
•Purchasing/Warehouse/Fleet Relocation
•Parks and Recreation Administration Relocation
•Georgetown Municipal Complex II
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FY2023: CAPITAL IMPROVEMENT PROGRAM
OVERVIEW OF TAX SUPPORTED DEBT MODEL
•As older bond issues are fully paid off, payments for
existing debt decline
•City Council prioritizes capital projects and new
debt to pay for them
•The tax rate (interest and sinking) brings in the
appropriate amount of revenue to pay new and
existing debt
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FY2023: CAPITAL IMPROVEMENT PROGRAM
OVERVIEW OF TAX SUPPORTED DEBT MODEL
•Assumptions from FY2023-FY2027
•Growth in Assessed Value:
•FY2023 –30%
•FY2024 –12%
•FY2025 and FY2026 –7%
•Flat growth in tax ceiling revenue
•Interest rates 4% -4.36%
•Distribution of O&M and I&S tax ceiling revenue held at 50% each
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FY2023: CAPITAL IMPROVEMENT PROGRAM
OVERVIEW OF TAX SUPPORTED DEBT MODEL
•Model results
•Projections for FY2023 through FY2027 show the capacity to issue approximately $50 million in debt
•The debt side of the tax rate is projected to increase by $1.27 cents in FY2023
•Preliminary, estimated total tax rate of $38 cents per $100 of assessed valuation
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FY2023: CAPITAL IMPROVEMENT PROGRAM
SUMMARY OF 5-YEAR TAX SUPPORTED CAPITAL IMPROVEMENT PROGRAM
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FY2023: CAPITAL IMPROVEMENT PROGRAM
COUNCIL FEEDBACK
•Get Council’s feedback on the proposed CIP projects for FY2023
•Includes parks capital replacement schedule -$526 thousand in FY2023
•Staff will provide an updated estimate on the No New Revenue and the Voter Approval rates at
the Budget Workshops on July 19th and 20th
•Certified tax roll on July 25th
•FY2023 Proposed Budget presented to Council on August 9th and start the tax rate adoption
process
Page 20 of 61
FY2023 FY2024 FY2025 FY2026 FY2027 Beyond 5 Years
120 General Capital Projects
Facilities
PRJ000136: Georgetown Municipal Complex Renovation - 3,000,000 5,500,000
PRJ000191: Festival/Public Space - Georgetown City Center 1,300,000 1,375,000 500,000 - -
PRJ000252: Fire Logistics Building 1,000,000 - - - -
PRJ000338: Downtown Austin Ave Parking Garage - Bond Funded 7,150,000 - - -
PRJ000XXX: 8th Street Parking Lot Covered Market Space - - - - 150,000
PRJ000XXX: Animal Shelter - 700,000 6,300,000
PRJ000XXX: Facility Services Renovation/Expansion - - 900,000 - -
PRJ000XXX: Fire Station No. 1 Renovation 520,000 4,250,000 - -
PRJ000XXX: Fire Station No. 3 Renovation - 450,000 3,750,000 -
PRJ000XXX: Fire Station No. 4 - Relocation - - 1,500,000 795,000 7,250,000 -
PRJ000XXX: Fire Station No. 8 825,000 7,250,000 -
PRJ000XXX: GMC II 2,534,400 11,404,800 11,404,800
PRJ000XXX: Parks and Recreation Administration Relocation - - - - -
PRJ000XXX: Public Safety Operation and Training Center Phase III - - - - 3,000,000
PRJ000XXX: Public Works Relocation - - - - 4,200,000
PRJ000XXX: Purchasing/Warehouse/Fleet Services Relocation - - - - - -
PRJ000XXX: Recreation Center - New - - 36,000,000
PRJ000XXX: Recreation Center Renovation 2,000,000 12,000,000
PRJ000XXX: Signature Gateway - Downtown 50,000 450,000 - - -
Facilities Total 10,020,000 9,309,400 26,054,800 34,274,800 14,500,000 43,350,000
Fleet
PRJ000280: Public Safety Vehicles - Fire 3,527,500 1,675,000 1,721,000 1,764,000 660,000 8,787,500
PRJ000281: Public Safety Vehicles - Police 1,319,000 1,170,500 803,500 1,047,500 1,357,000 4,769,600
PRJ000XXX: Fire Boat and Trailer 215,000
Fleet Total 5,061,500 2,845,500 2,524,500 2,811,500 2,017,000 13,557,100
Other
PRJ000124: Radio Replacement 570,000 - - - -
Other Total 570,000 - - - -
Parks
PRJ000253: Southeast Community Park - - 11,600,000
PRJ000278: Regional Trail Development 490,000 -
PRJ000293: San Gabriel Park - Phase 3 6,500,000 - - -
PRJ000XXX: Blue Hole Park Improvement - - - 1,200,000
PRJ000XXX: Neighborhood Park Improvements - MP High Priority 135,000 540,000
PRJ000XXX: Neighborhood Park Improvements - MP Medium Priority 375,000 1,500,000
PRJ000XXX: New Neighborhood Park Development 500,000 500,000 1,000,000
PRJ000XXX: Parks Equipment Replacement (Previously SRF) 526,000 544,300 496,500 1,305,700 329,500
PRJ000XXX: Parks Safety Improvements 485,000 485,000
PRJ000XXX: Regional Trail - Berry Creek Trail W. Phase 1 1,300,000 4,000,000
PRJ000XXX: Regional Trail - MP Low Priorities 58,900,000
PRJ000XXX: Regional Trail - MP Medium Priorities 5,300,000
Page 21 of 61
FY2023 FY2024 FY2025 FY2026 FY2027 Beyond 5 Years
PRJ000XXX: Regional Trail - Pecan Branch 1,300,000 4,000,000
PRJ000XXX: Regional Trail - SE Georgetown Utility Corridor 7,900,000
PRJ000XXX: Regional Trail - Smith Branch Trail South 900,000 2,500,000
PRJ000XXX: Regional Trail -Trailheads and Access Points 700,000 700,000 700,000
PRJ000XXX: San Gabriel Park - Phase 4 11,550,000
PRJ000XXX: Westside Park Development - 1,500,000 8,500,000 -
Parks Total 8,001,000 2,764,300 6,236,500 13,280,700 10,529,500 97,450,000
Streets
PRJ000014: Berry Creek Drive - - - - 3,900,000
PRJ000138: 2015 Road Bond Priority 1 - Downtown Sidewalks 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,025,000
PRJ000140: Austin Ave Bridge 5,715,000
PRJ000143: Leander Rd -
PRJ000209: Southeast Inner Loop 7,169,400 14,099,600 4,792,000
PRJ000258: DB Wood (Oak Ridge to W illiams Dr) 11,343,000
PRJ000267: Allocations - Intersections/Bike Lanes/Sidewalks 3,500,000 1,750,000 1,750,000
PRJ000277: Intersection Improvements - 1,155,000 - - -
PRJ000XXX: North East Inner Loop/Stadium Drive - - - - 2,000,000
PRJ000XXX: Preliminary Engineering Pool - - - - 2,050,000
PRJ000XXX: SH29 (Haven to SH130) - - - - 4,100,000
PRJ0X0XXX: Williams Drive 2,037,600 2,435,400 5,715,000
Streets Total 25,050,000 26,155,000 13,257,000 1,000,000 1,000,000 13,075,000
Fire
PRJ000135: Cardiac Zoll Monitors 150,000
PRJ000XXX: EMS Stryker Stretchers 181,000
Fire Total 331,000
120 General Capital Projects Total 49,033,500 41,074,200 48,072,800 51,367,000 28,046,500 167,432,100
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City of Georgetown, Texas FOR PURPOSES OF ILLUSTRATION ONLY
Projected 5yr Mobility Bond Program with a $0.0127 Increase in the 2022 I&S Tax Rate: $68,000,000 in Mobility Projects ($149,594,000 in Existing Projects)
Debt Capacity Analysis as of June 28, 2022. Analysis should be updated annually.
(A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K) (L) (M) (N) (O) (P) (Q)
Freeze-Adj. Less: Net $4,000,000 $25.034MM / $24MM $17.074MM / $24MM $28.073MM / $20MM $51,367,000 $28,046,500 Proj. Total Less: Total Net Est.
FYE Assessed Est. AV Existing Self-Supporting Tax-Supp. Series 2022 Series 2023 Series 2024 Series 2025 Series 2026 Series 2027 Tax-Supp. Frozen Tax-Supp. I&S
9/30 Value Growth D/S Debt Service D/S 9/7 4.0% 5/15 3.97% / 4.1% 5/15 4.17% / 4.3% 5/15 4.37% / 4.5% 5/15 4.37% 5/15 4.36% D/S Revenues D/S Tax Rate Change
2022 7,601,224,903$ 36,074,494$ (12,859,079)$ 23,215,415$ -$ -$ -$ -$ -$ -$ 23,215,415$ (4,869,427)$ 18,345,988$ 0.2397$ -$
2023 9,881,592,374 30.00%42,187,953 (12,936,563) 29,251,391 672,288 - - - - - 29,923,678 (5,235,725) 24,687,953 0.2524 0.0127
2024 11,067,383,459 12.00%36,189,348 (12,741,408) 23,447,941 671,400 8,770,481 - - - - 32,889,822 (5,235,725) 27,654,097 0.2524
2025 11,842,100,301 7.00%35,213,360 (12,452,525) 22,760,834 675,200 3,520,265 7,865,094 - - - 34,821,393 (5,235,725) 29,585,668 0.2524
2026 12,671,047,322 7.00%32,321,969 (12,197,506) 20,124,463 673,000 3,520,350 2,924,675 9,654,031 - - 36,896,519 (5,235,725) 31,660,794 0.2524
2027 13,051,178,742 3.00%31,885,268 (12,094,712) 19,790,556 675,000 3,522,715 2,926,020 3,530,675 7,401,125 - 37,846,091 (5,235,725) 32,610,366 0.2524
2028 13,442,714,104 3.00%29,981,900 (11,811,098) 18,170,802 676,000 3,522,155 2,924,885 3,527,600 4,190,400 7,657,688 40,669,529 (7,082,712) 33,586,818 0.2524
2029 13,845,995,527 3.00%29,763,875 (11,683,504) 18,080,371 676,000 3,518,670 2,926,270 3,526,525 4,186,200 1,967,250 34,881,286 (6,523,297) 28,357,989 0.2069
2030 14,261,375,393 3.00%28,448,052 (11,239,256) 17,208,796 - 3,517,260 2,930,010 3,532,275 4,193,475 1,960,325 33,342,141 (6,301,877) 27,040,264 0.1915
2031 14,689,216,655 3.00%27,669,381 (11,255,522) 16,413,858 - 3,522,720 2,920,840 3,529,400 4,191,600 1,966,925 32,545,343 (6,147,153) 26,398,190 0.1815
2032 15,129,893,154 3.00%21,473,259 (5,910,662) 15,562,597 - 3,519,690 2,924,190 3,528,125 4,190,800 1,966,475 31,691,877 (5,984,708) 25,707,170 0.1716
2033 15,583,789,949 3.00%21,371,686 (6,144,166) 15,227,519 - 3,518,325 2,929,415 3,533,225 4,190,800 1,964,150 31,363,434 (5,874,251) 25,489,184 0.1652
2034 16,051,303,647 3.00%20,748,708 (5,866,914) 14,881,795 - 2,928,420 2,926,350 3,529,250 4,191,475 1,964,950 30,422,240 (5,699,818) 24,722,422 0.1556
2035 16,532,842,757 3.00%20,217,286 (5,832,746) 14,384,540 - 2,923,060 2,520,160 3,526,425 4,192,550 1,963,650 29,510,385 (5,526,231) 23,984,154 0.1465
2036 17,028,828,039 3.00%16,881,097 (4,613,021) 12,268,076 - 2,929,625 2,518,995 2,849,525 4,198,850 1,960,300 26,725,371 (5,137,644) 21,587,727 0.1281
2037 17,539,692,881 3.00%14,753,360 (3,554,696) 11,198,664 - 2,927,500 2,519,820 2,851,950 2,974,975 1,959,800 24,432,709 (4,786,077) 19,646,632 0.1131
2038 18,065,883,667 3.00%11,676,548 (3,134,665) 8,541,883 - 2,926,890 2,517,420 2,845,550 2,978,800 1,397,025 21,207,568 (4,291,138) 16,916,430 0.0946
2039 18,607,860,177 3.00%9,684,600 (3,121,075) 6,563,525 - 2,927,590 2,516,795 2,850,550 2,978,575 1,396,525 19,233,560 (3,944,051) 15,289,509 0.0830
2040 19,166,095,982 3.00%8,040,875 (2,656,288) 5,384,588 - 2,929,395 2,517,730 2,851,275 2,974,300 1,394,225 18,051,513 (3,705,028) 14,346,484 0.0756
2041 19,741,078,862 3.00%8,052,313 (2,658,013) 5,394,300 - 2,922,100 2,515,010 2,847,725 2,975,975 1,395,125 18,050,235 (3,641,650) 14,408,585 0.0737
2042 20,333,311,228 3.00%3,591,350 (503,188) 3,088,163 - 2,925,910 2,518,635 2,849,900 2,978,150 1,394,000 15,754,758 (3,231,277) 12,523,481 0.0622
2043 20,943,310,564 3.00%- - - - 2,925,210 2,518,175 2,847,350 2,975,600 1,395,850 12,662,185 (2,670,474) 9,991,711 0.0482
2044 21,571,609,881 3.00%- - - - - 2,513,630 2,850,075 2,978,325 1,395,450 9,737,480 (2,105,526) 7,631,954 0.0357
2045 22,218,758,178 3.00%- - - - - - 2,847,625 2,975,875 1,397,800 7,221,300 (1,590,099) 5,631,201 0.0256
2046 22,885,320,923 3.00%- - - - - - - 2,978,250 1,397,675 4,375,925 (985,547) 3,390,378 0.0150
2047 23,571,880,551 3.00%- - - - - - - - 1,395,075 1,395,075 (321,819) 1,073,256 0.0046
2048 24,279,036,967 3.00%- - - - - - - - - - - - -
2049 25,007,408,076 3.00%- - - - - - - - - - - - -
2050 25,757,630,319 3.00%- - - - - - - - - - - - -
2051 26,530,359,228 3.00%- - - - - - - - - - - - -
486,226,680$ (165,266,605)$ 320,960,075$ 4,718,888$ 69,718,331$ 59,374,119$ 69,909,056$ 74,896,100$ 39,290,263$ 638,866,832$ (116,598,428)$ 522,268,404$ 0.0127$
Assumptions:
(1) FY 2022 certified Assessed Valuation ("AV") provided by the Williamson County Appraisal District as of July 29, 2021. Approximately $224M in TIRZ value from four (4) TIRZ is deducted from FY 2022 AV. FY 2022 certified AV includes a 60% discount of the Total Under Review values.
(2) AV growth rates provided by the City as of May 23, 2022. Projected AV growth shown for purposes of illustration only.
(3) All financing assumptions are as of June 28, 2022 for purposes of illustration only. Series 2022 Limited Tax Note assumes a private placement in September 2022 at a flat 4.0%. For all existing projects 80% of each new issuance was amortized over 20 years at 3%
and 20% of each new issuance was amortized over 10 years at 2%. For the Mobility projects, new issuances were amortized over 20 years at 4.1%. For all new debt, the rate increases 0.20% for each new issuance until Series 2025. Preliminary, subject to change.
(4) Total frozen tax revenues through FY 2027 provided by the City. Frozen tax revenues after FY 2027 are assumed to remain constant and the portion attributable to the I&S tax rate is calculated on a pro rata basis assuming a constant M&O tax rate of $0.1613 (at 99.00% collections).
(5) Est. tax collections rate: 99.00%
$217,594,000 Projected New Issuances
Specialized Public Finance Inc.7/7/2022Page 23 of 61
City of Georgetown, Texas
City Council Workshop
July 12, 2022
S UBJEC T:
P resentation and discussion regarding various city-wide fee increases -- Nathan P arras, Assistant Finance Director
I T EM S UMMARY:
In an effort to align with cost recovery models and complexity of development/planning reviews, staff is recommending
various fee adjustments. The fee evaluation and new revenue generated by the proposed fee increases are included as part
of the F Y2023 budget development that will be presented during budget workshop on J uly 19th and 20th.
F I NANC I AL I MPAC T:
.
S UBMI T T ED BY:
Sharon P arker
AT TAC HMENT S :
Description
F Y2023 F ee S c hedule R eview
Page 24 of 61
Fee Schedule Review
Page 25 of 61
2
Fee Schedule Review
AGENDA
•Purpose
•Proposed Fee Changes:
•Parks
•Planning and Development
•Garbage
•Fire Services
•Library
•Next Steps
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3
Fee Schedule Review
PURPOSE
•Annual review of the fee schedule as part of the budget process.
•Economic pressures from inflation and supply chain
•Growth of the organization and the City:
•Increase and complexity of the type of development
•Include more outside consulting costs to keep up with development pressures
•Effort to align with various cost recovery studies
•53 new positions funded in FY2022
•3% merit-based salaries increase programmed into the FY2022 Budget
•Additional 3% base pay increase approved by Council in March 2022
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4
Fee Schedule Review
PARKS AND RECREACTION
•Background: The Parks and Recreation department recently went through a
cost recovery study. The study evaluated how revenues aligned with current
expenses. Recommendations from the study, which include fee increases,
will be implemented in January 2023. Fee increases will occur over
multiple years to meet minimum cost recovery targets as well as to align
with benchmarks conducted.
•Resolution to approve study on July 12th consent agenda
•Proposed fee changes equate to $200,000 in new revenue
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5
Fee Schedule Review
PARKS AND RECREACTION
•Eliminate the “Membership” concept and fee structure in favor of an
“Admissions” and “Passes” concept.
•Simplify and mimic admission structure at all facilities
•Passes or daily admissions should be facility-specific (Tennis Center, Pools,
or Recreation Center).
•Increase the age of a Senior from 55 to 60.
•Implement an auto renew process for passes.
•Implement fee increases for admission and passes that are supported
through benchmarking assessment.
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6
Fee Schedule Review
PARKS AND RECREACTION
(Annual)
Recreation Center
Pass
Current Fee Proposed Change New Fee
Adult 19+$235 $30 $265
Senior 60+$120 $30 $150
Youth $120 $30 $150
Family $395 $60 $455
*Non-Resident Fees increase $5 monthly, $60 annually
*Monthly auto-renew option available
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7
Fee Schedule Review
PARKS AND RECREACTION
*Non-Resident Fees increase $5 monthly, $60 annually
*Monthly auto-renew option available
(Annual)
Tennis Center Pass
Current Fee Proposed Change New Fee
Adult 19+$150 $115 $265
Senior 60+NA NA $150
Youth $75 $75 $150
Family $240 $215 $455
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8
Fee Schedule Review
PLANNING AND DEVELOPMENT
•Background: Permitting and Processing Fees were increased on November 1, 2021, by 3%. Since
that time, the combination of inflationary pressure and cost of labor has shifted significantly.
Projecting those pressures to extend through FY2023, staff recommends increase to all permitting
fees effective October 1, 2022.
•Generally, the fee expenses align with staff time expense
•Proposed fee changes equate to approximately $555,000 in new revenue for New Residential Single
Family
•Proposed fee changes for New Commercial Multi-Family: See below
Fee Type Current Fee Proposed Change New Fee New Annual Revenue
Generated
New Residential Single
Family
Varies (see schedule)20% Varies (see schedule)$555,000 Based on
2500 SF Homes
New Commercial Multi-
Family
Varies (see schedule)$300 Per Unit Varies (see schedule)$108,000 based on 360
Unit Complex
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9
Fee Schedule Review
PLANNING AND DEVELOPMENT
•Background: Land Development Processing Fees were increased on November 1, 2021 by 3%. Since
that time, the combination of inflationary pressure and cost of labor has shifted significantly.
Projecting those pressures to extend through FY2023, staff recommends a 10% increase to
development fees effective October 1, 2022.
•Generally, the fee expenses align with staff/consultant time expense
•One specific fee needs further adjustment to better reflect expenses –PUD or Mixed-Use Rezoning
(see below)
•Proposed fee changes equate to approximately $315,000 in new revenue
Fee Type Current Fee Proposed Change New Fee New Annual Revenue
Generated
All Land Development New
Application Fees
Varies (see schedule)10% Varies (see schedule)$260,000
PUD or Mixed Use District
Rezoning
$1,030 (1st 5 acres) + $100
per each add’l 5 acres;
maximum fee of $4,000
Increase base fee $2,765 to
reflect average staff time
cost; increase max. similarly
$3,795 (1st 5 acres) + $100
per each add’l 5 acres;
maximum fee of $7,000
$55,000
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10
Fee Schedule Review
GARBAGE
•Background: TDS wholesale rate will increase by 4% and are calculated based on variety of items.
The City will raise the TDS wholesale on all customers (residential, multifamily, and commercial) and
the administrative fee by 4%.
•Staff forecasts to recover the one-time fuel surcharge of $226 thousand as part of the current year
revenues exceeding projections
•Proposed fee changes for Residential: See below
Fee Type Current Fee Proposed Change New Fee New Annual Revenue
Generated
Retail Rate (Tier I)$20.92 $0.90 $21.82 4% of current revenue
Retail Rate (Tier II)$30.96 $1.22 $32.18 4% of current revenue
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11
Fee Schedule Review
FIRE AND FIRE INSPECTION SERVICES
•Background: The fire department recently went through a cost recovery study and utilized our
billing partner, Emergicon, to recommend changes to maintain regional competitiveness. Note that
>60% of GFD transports are Medicare and have a max allowable cost (MAC) that limits revenue
options.
•Proposed fee changes equate to $155,000 in new revenue from non-Medicare billings.
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12
Fee Schedule Review
FIRE AND FIRE INSPECTION SERVICES
•Background: The Fire Department recently went through a fee schedule review. The review
evaluated how current fees aligned with the area. The recommendations below reflect the
proposed changes from the fee schedule study.
•Proposed fee changes for fire inspection services equate to $261,250 in new revenue.
Fee Type Current Fee Proposed Change New Fee New Annual Revenue
Generated
Site Plan Review (Covers
all inspections)
$0 $1,000 $1,000 $180,000
Building Plan Review
(assuming our average
is 10,000 Sq.Ft. building
$200/52,000 Sq.Ft.$650 $150/building plus
.07/Sq.Ft.
$81,250
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13
Fee Schedule Review
LIBRARY SERVICES
•Background:Library staff have reviewed area Libraries’ fee structures
and plan to implement these changes to current fees
•Proposed fee changes equate to $11,500 in new revenue
Fee Type Current Fee Proposed Change New Fee New Annual Revenue
Generated
NonResident Member
ship
$25
$20/Seniors
$10
$10
$35
$30
$7,000
Room
Rentals (nonprofit
users)
$5/hr Classroom
$10/hr Friends
or Hewlett
$5/hr Classroom
$10/hr Friends
or Hewlett
$10/hr Classroom
$20/hr Friends
or Hewlett
$4,500
Room Rentals
(other users)
$20/hr Classroom
$50/hr Friends
or Hewlett
$30/hr Classroom
$75/hr Friends
or Hewlett
$50/hr Classroom
$125/hr Friends
or Hewlett
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14
Next Steps
•These fee changes are currently assumed in the FY2023 draft budget revenues
•Fee/Cost review currently under review and will come back to Council
•Electric
•Utility fees for meters, connections, engineering, and re-reads
•Airport revenue review
•Stormwater cost of service
•Sanitation Cost of service
•Impact fees
•Council feedback on proposed changes
•Proposed fee schedule attached with details
•Adopt fees with the FY2023 budget
•Departments will bring their fee ordinances Aug 23rd and Sept 13th
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City of Georgetown, Texas
City Council Workshop
July 12, 2022
S UBJEC T:
P resentation and discussion regarding the City's Real Estate Services division -- J im Kachelmeyer, Assistant City
Attorney; and Lauren Boenig, Real Estate Services Coordinator
I T EM S UMMARY:
Staff will present an overview of the Real Estate Services division of the City, including its 2021 transition from Systems
Engineering to the City Attorney's Office, current policies and practices, FY22 policy changes, and proposed F Y23
initiatives.
F I NANC I AL I MPAC T:
N/A
S UBMI T T ED BY:
J im Kachelmeyer, Assistant City Attorney
AT TAC HMENT S :
Description
R eal Es tate S ervices O verview P resentation
Page 39 of 61
Overview of
Real Estate Services
City Council Workshop
July 12, 2022
Page 40 of 61
22
• Overview of Real Estate Services Division
• Org Chart
• Transition to City Attorney’s Office
• Website and Guides
• Real Estate Services:
• Overview of Acquisition, Disposition, & Land Management
• Key Policy Changes in FY 2022
• Proposed FY 2023 Policy Initiatives
• Requested Feedback
Agenda
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33
Overview of Division
•Real Estate is currently located within the Legal department andmanaged jointly by the City Attorney’s and City Manager’s Offices.
Jim Kachelmeyer, Assistant City Attorney
(and Interim Real Estate Manager*)
Lauren Boenig, Real Estate Services
Coordinator
*Real Estate Manager position currently vacant
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44
Overview of Division: Transition
• In 2021, Real Estate temporarily
relocated into City Attorney’s Office
(CAO) due to vacancies.
RE Services
Coordinator
Asst. City
Manager
Real Estate
Manager
System Eng.
Director
CIP Manager
City
Attorney
Real Estate
Services
Coordinator
Asst. City
Attorney
City Manager’s
Office
Real Estate
Manager (vacant)
• CAO mapped processes, identified existing policies,
created a budget, & set up communication protocols.
• Transition allowed Engineering to
devote more resources to capital
projects, development review.
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55
Overview of Division: Transition
•Example process maps:
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66
Overview of Division: Transition
•Example process maps:
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77
Overview of Division: Transition
•Example process maps:
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88
Overview of Division: Transition
• Proposed to remain in CAO through FY23.
• Intend to reclassify, fill vacant position by FY23.
City
Attorney
Real Estate
Services
Coordinator
Asst. City
Attorney
City Manager’s
Office
Real Estate
Manager (vacant)
City Attorney
Real Estate
Services
Coordinator #1
Asst. City Attorney /
Real Estate Manager
City
Manager’s
Office
Real Estate
Services
Coordinator #2
(vacant)
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99
Overview of Division: Website
realestate@georgetown.org https://realestate.georgetown.org/
Page 48 of 61
1010
Overview of Division: Guides
realestate@georgetown.org https://realestate.georgetown.org/
Page 49 of 61
1111
Overview of Division: Guides
realestate@georgetown.org https://realestate.georgetown.org/
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1212
Real Estate Services - Acquisition
•Overview
•Acquisition of real property rights for City infrastructure, such as roadways, utility lines, drainage improvements, trails, and sidewalks
•Acquisition of real property for parks and City facilities
•Acquired through condemnation, or as a condition of development approval
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1313
Real Estate Services - Acquisition
•Overview
•Acquisition of real property rights for City infrastructure, such as roadways, utility lines, drainage improvements, trails, and sidewalks
•Acquisition of real property for parks and City facilities
•Acquired through condemnation, or as a condition of development approval
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1414
Real Estate Services - Acquisition
•Overview
•Acquisition of real property rights for City infrastructure, such as roadways, utility lines, drainage improvements, trails, and sidewalks
•Acquisition of real property for parks and City facilities
•Acquired through condemnation, or as a condition of development approval
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1515
Real Estate Services - Acquisition
• Key Policies:
• Dedication by plat of rights-of-way & easements required by UDC
• ETJ and off-site utilities require separate instruments
• If not platting, real estate interests must be conveyed prior to acceptance of
the infrastructure / commencement of service
• Title insurance required 1) if easement will serve more than two lots, 2) for
critical infrastructure, and 3) for all drainage easements
• All easements are exclusive, but City will allow Grantor to reserve some
rights if necessary to support the development (with Council approval)
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1616
Real Estate Services - Acquisition
• FY2022 Changes
• Adopted standard easement nomenclature, updated easement templates
• Updated Development Manual to require new plat notes
• Updated fiscal surety documents, parkland improvement agreement
• Drafted modifications to Utility Extension and Improvement Policy to prevent
“stacking” (ordinance coming soon)
• Updated Development Manual to allow some overlapping easements
• Modified site plan review process to allow easement conveyance at acceptance
• Closing documents added to electronic signature policy
• Proposed FY2023 Initiatives
• Limit use of title insurance to critical infrastructure
• Delegation of some acceptance authority
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1717
Real Estate Services - Disposition
•Overview
•Abandonment, vacation, and sale of City rights-of-way and easements
•Sale of City property
• Key Policies
• Governed primarily by state law (and Ch. 12.10 of Code)
• All abandonments require Council authorization
• Abandonment of right-of-way requires fair market value compensation,
as determined by an appraiser (with exceptions)
• Sale of parkland requires public vote
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1818
Real Estate Services - Disposition
• FY2022 Changes
• Adopted conditional abandonments to provide more certainty to applicants
• Transitioned abandonments application process to MyGovernmentOnline
• Broadened review process to include stakeholder depts
• Proposed FY2023 Initiatives
• Re-write 12.10 to clean up inconsistencies
• Transition from quit claim deeds to releases
• Parkland inventory
Page 57 of 61
1919
Real Estate Services - Disposition
• FY2022 Changes
• Adopted conditional abandonments to provide more certainty to applicants
• Transitioned abandonments application process to MyGovernmentOnline
• Broadened review process to include stakeholder depts
• Proposed FY2023 Initiatives
• Re-write 12.10 to clean up inconsistencies
• Transition from quit claim deeds to releases
• Parkland inventory
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2020
Real Estate Services – Land Mgmt
•Overview
•Use of City property by others, including:
•City’s license to encroach program
•Construction access across adjacent City property
•Lease of City facilities
• Key Policies
• Governed by state law, City charter, and Ch. 12.09 of Code
• Council approval required for encroachments into right-of-way
• Leases must be <30 years & use of parkland requires a Ch. 26 hearing
• Per Texas Constitution, must have consideration
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2121
Real Estate Services – Land Mgmt
• FY2022 Changes
• Broadened license review process to include stakeholder depts
• Revised 12.09 to remove inefficiencies, increase flexibility
• Created program for requesting temporary use of City property
• Leases added to electronic signature policy
• Proposed FY2023 Initiatives
• Update standard license agreement, delegate some approval authority
• Study possible transition to annual license fees
• Adopt standard Public Facility Maintenance Agreement, cell tower lease
• Audit of existing City leases (& present to Council)
• Sidewalk café, sandwich board license ordinances
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2222
Requested Feedback
1. Council feedback on transition of Real Estate Services.
2. Does Council agree with the policy changes made in FY22?
3. Does Council support the proposed FY23 policy initiatives?
Staff plans to return in September with a resolution adopting Council’s
preferred policies and delegating authority to City Manager to implement
said policies.
Page 61 of 61