HomeMy WebLinkAboutAgenda CC 04.14.2015 WorkshopNotice of Meeting of the
Governing Body of the
City of Georgetown, Texas
APRIL 14, 2015
The Georgetown City Council will meet on APRIL 14, 2015 at 3:00 P.M. at 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.
Policy Development/Review Workshop -
A Review and direction regarding the lease for Grace Heritage Church to the Georgetown Heritage
Society -- Matt Synatschk, Historic Preservation Officer and Laurie Brewer, Assistant City Manager
B Review of the City’s Fiscal & Budgetary Policy and discussion of possible amendments for 2015/16 --
Micki Rundell, Chief Financial Officer
C Council Compensation Committee Report -- Patty Eason, Councilmember District 1 and Jerry
Hammerlun, Councilmember District 5
D Discussion and possible direction regarding current city-wide facilities projects, progress and direction
regarding the city center project, and discussion regarding next steps -- Laurie Brewer, Assistant City
Manager
E Discussion and possible direction to staff on Street Network Connectivity Policies -- Jordan J.
Maddox, AICP, Principal Planner and Edward G. Polasek, AICP, Transportation Services 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.
F Sec. 551.071: Consultation with 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
- EMS Contract Discussion
Sec. 551.072: Deliberation Regarding Real Property
- Inner Peace
Sec. 551.074: Personnel Matters
- Interim City Manager, City Attorney, City Secretary and Municipal Judge: Consideration of the
appointment, employment, evaluation, reassignment, duties, discipline, or dismissal
- Interim City Manager Compensation
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
April 14, 2015
SUBJECT:
Review and direction regarding the lease for Grace Heritage Church to the Georgetown Heritage Society --
Matt Synatschk, Historic Preservation Officer and Laurie Brewer, Assistant City Manager
ITEM SUMMARY:
The City of Georgetown currently leases the Grace Heritage Center, located at 811 South Main Street, to the
Georgetown Heritage Society for use as offices and event venue. The current lease expires in August of
2015. Staff is requesting direction regarding the creation of a new operating agreement between the City and
GHS.
History
The City of Georgetown acquired Grace Heritage Center from the Episcopal Church in 1992. The historic
structure was moved from the previous location and restored through a partnership between the City and the
Georgetown Heritage Society. The 1992 concept plan (Exhibit 1) outlines the goals for the City and GHS in
restoring the structure and creating a civic space for the benefit of the community. The goal of the concept
plan was to “preserve downtown Georgetown’s historic integrity and character, maintain an active, involved,
well-informed citizenry, protect historic resources, and promote an active tourism industry in Georgetown.”
The concept plan was supplemented by a Funding Agreement (Exhibit 2). The funding agreement outlined
the specific duties for the City and GHS as they related to the project. The City agreed to provide the
following for the project:
1. Waive all City permitting fees
2. Provide $25,000 towards the restoration
3. Construct new restrooms
4. Pay for water pollution abatement plan for the site
5. Continue to lease the McKamy property
6. Pay for utilities during construction
7. Provide all labor and materials to construct parking lot on the McKamy property
8. Provide assistance from the Planning Department on plan reviews
9. Provide load management assistance to provide energy efficiency in HVAC system and
weatherization of the church
10. Provide $10,000 towards construction of the park, relocation of the marker at the corner of Ninth &
Church, and landscaping
11. Maintain landscaping, exterior of church (after completion of renovation), parking lot, park, and
restrooms
GHS agreed to the following:
1. Obtain the required permits
2. Provide funds for costs exceeding the City’s $25,000 contribution
3. Complete initial renovation phase, including;
a. New roof
b. Exterior paint
c. Foundation skirt
d. Seal windows
e. Replace steeple
Cover Memo
Item # A
4. Complete renovation phase, including:
a. Bring structure up to current city codes
b. Install ADA ramp
c. Install HVAC system
d. Reconstruct porch and steps from rear door of church
e. Construct and locate a sign
5. After completion of renovation:
a. Pay for staffing of Heritage Society office and coordinate volunteers
b. Maintain historical records for the City
c. Coordinate tour groups
d. Maintain the interior of the church, including cleaning
The operating arrangement between the City and GHS was finalized in 2000 with the execution of a new
lease agreement. The new 5 year agreement included the following provisions:
1. City maintenance of grounds, landscaping and structural repairs to the structure
2. The City paid the initial utilities for a period of six months beyond the issuance of the Certificate of
Occupancy
3. GHS would open the building to the public from 10:00 am to 5:00 pm Monday through Saturday
Upon the expiration of the 2000 lease agreement, the City entered in to a new lease agreement in 2005, for a
period of 10 years. Under the new lease agreement, the City is responsible for:
1. Exterior maintenance of the structure
2. Maintenance and daily operations of the restrooms
3. Maintenance of landscaping and site features
In exchange for the lease, GHS is responsible for the following services:
1. Renting Grace Heritage Center for public use
2. Providing Walking Tour and Step-On Motor coach tour guides
3. Publish “Exploring Historic Georgetown” booklet for Visitor Center
4. Publish “A Walking Tour of Downtown Georgetown” brochure for the Visitor Center
5. Make available “Courthouse of Williamson County” brochure, four volume “Georgetown’s
Yesteryears” book series and “Sentimental Journey” educational book for sale to the public
6. Host annual holiday Heritage Home tour
7. Furnish stock of Georgetown-related inventory to Visitor Center
8. Promote and enrich Georgetown’s heritage through educational programs
9. Support work to update information relevant to Heritage Tourism
Items 1 and 2 were identified as having a direct impact on the number of visitors to Georgetown, resulting in
financial benefits to area retailers and increased word-of-mouth advertising for the City.
GHS is also required to provide an annual report to the City, pay for the utilities for the building and “use its
best efforts to keep minimum hours of operation for Grace Heritage Center open to the public as volunteer
and/or paid staff permits.”
The current lease agreement expires on August 23, 2015. GHS has the option to extend the term of the lease
for an additional 10 years if GHS is in full compliance with the terms of the lease.
Cover Memo
Item # A
Georgetown Art Works
Exhibit 5 is the current operating agreement for Georgetown Art Works, the non-profit that oversees the
operations for the Georgetown Art Center, located at 816 South Main Street. The agreement set clear
expectations for the City and GAW, including hours of operations, number and types of exhibits, public
events and other activities designed to keep the Art Center a vibrant activity center for the community.
Exhibit 6 is a copy of the Georgetown Heritage Society's Letter of Intent to renew the 2005 lease agreement.
Exhibit 7 is the GHS response to a request for information regarding the lease requirements.
Staff wishes to pursue developing a new operating agreement with the Georgetown Heritage Society and
seeks Council direction for creating the terms of the new agreement.
FINANCIAL IMPACT:
None.
SUBMITTED BY:
ATTACHMENTS:
Exhibit 1 - 1992 Concept Plan
Exhibit 2 - 1992 Funding Agreement
Exhibit 3 - 2000 Lease Agreement
Exhibit 4 - 2005 Lease Agreement
Exhibit 5 - Georgetown Art Works Operating Agreement
Exhibit 6 - GHS Lease Renewal Letter of Intent
Exhibit 7 - GHS Response to Lease Inquiry
Cover Memo
Item # A
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STATE OF TEXAS §
§
COUNTY OF WILLIAMSON §
OPERATING AGREEMENT
THIS OPERATING AGREEMENT is made the day of __________________,
_______, by and between the CITY OF GEORGETOWN, a Texas home-rule municipal
corporation (“City”) and ___________________________, a non-profit corporation
(“Operator”). For and in consideration of the mutual covenants and agreements herein
contained, it is mutually agreed as follows:
1. Space Provided. City hereby agrees to provide space to Operator in the Old Fire
Station #1 located at 103 W. 9th Street, Georgetown, Williamson County, Texas, as
shown in Exhibit “A” (the “Space Provided”), attached to this Agreement and
incorporated by reference.
2. Operating Term. The Term of this Operating Agreement shall be for three years,
beginning on September 1, 2014 and ending on August 31, 2017 (the “Term”).
3. Use of Property. The Operator will utilize the Space Provided to operate an art
center to benefit the City of Georgetown area according to the requirements shown
in Exhibit “B” (the “Operating Requirements”), attached to this Agreement and
incorporated by reference. No other use of the Space Provided shall be permitted by
the Operator without expressed written permission by the City. The City shall
maintain approval over the use of the Space Provided at all times. Operator’s use of
the Space Provided is nonexclusive.
4. Prohibited Use. Operator may not use or permit any part of the Space Provided to
be used for:
(a) any activity that is a nuisance or is offensive, noisy, or dangerous; or
(b) any activity that violates any applicable law, regulation, ordinance,
governmental order, or this Operating Agreement.
5. Revenue. All revenue from the operation of the gift shop in the Art Center and art
classes offered by the Operator, and further described in Exhibit B, shall be retained
Attachment number 5 \nPage 1 of 10
Item # A
by the Operator and shall be used only to pay for the operating costs and expenses
of the Art Center.
6. Non-Discrimination. Operator will operate the art center without discriminating
against any person or class of persons and will seek participation by all interested
members of the public.
7. Oversight. The Georgetown Arts and Culture Board shall provide oversight to the
art center. Each month Operator will provide a report that includes door count,
name of exhibit, number of classes and class attendance, number of volunteer hours,
a financial report, and attendance of artist reception.
8. Utilities. Operator shall be liable to pay the electric and water costs incurred in the
operation of the art center during the Term of this Agreement.
9. Meeting Space. City shall provide meeting space for scheduled public meetings of
Operator at no cost.
10. Improvements. If Operator desires to make any improvements to the Space
Provided, Operator must request and receive the City’s written approval prior to
construction or implementation of any proposed improvements. Operator shall be
liable to pay all costs of any improvement. The City assumes no financial
responsibility or obligation for payment of the cost of any improvements. Any
improvements to the Space Provided made by Operator shall remain and become
property of the City at the end of an Operating Term.
11. Insurance. Operator will provide insurance written by companies licensed to
conduct business in the State of Texas. Operator shall keep in full force and effect
during a Operating Term of this Operating Agreement insurance in the amounts
and types included on the sample Insurance Certificate attached as Exhibit “C” and
incorporated by reference. The insurance policies will name the City, its officers,
officials, employees and volunteers as additional insureds. All insurance policies
shall be subject to the examination and approval of City for sufficiency as to form,
content, form of protection, coverage and insurance company. Operator shall
furnish a Certificate of Insurance to City evidencing compliance with the required
insurance requirements at the time Operator delivers the executed Operating
Agreement to City. Operator agrees to provide a copy of any insurance policy on
the City’s request. All insurance policies shall provide that the insurance coverage
shall not be canceled or materially changed without a minimum of thirty (30) days’
Attachment number 5 \nPage 2 of 10
Item # A
advance notice in writing to the City. Operator’s failure to timely comply with the
insurance requirements shall be cause for termination of the Operating Agreement.
12. Indemnity. City, its officers, officials, employees and volunteers, shall not be liable
to Operator, its directors, officers, officials, employees, members, customers,
volunteers, agents or representatives, for any damage caused by negligence of
Operator, its directors, officers, officials, employees, members, customers,
volunteers, agents or representatives. Operator assumes all liability and
responsibility for loss, damages, claims, injuries, lawsuits, judgments or causes of
action of any type. Operator releases, fully indemnifies, holds harmless and agrees
to defend City, its officers, officials, employees and volunteers, from any and all
liability, loss damages, claims, injuries, lawsuits, judgments or causes of action of
any type.
13. Default. Operator’s violation of any provision of this Operating Agreement shall
constitute a default. Operator shall have thirty (30) days from the receipt of a notice
of default to cure the default. If the Operator fails to cure the default the City may
immediately terminate this Operating Agreement.
14. Notices. Notices or other correspondence concerning this Operating Agreement
shall be in writing and are effective when mailed, hand-delivered, or transmitted by
facsimile or electronic transmission as follows:
To City: To Operator:
City Manager ______________________________
113 E. 8th Street ______________________________
Georgetown, Texas 78626 ______________________________
T: 512.930.3723 T: ____________________________
F: 512.930.3622 F: ____________________________
Email: paul.brandenburg@georgetown.org E-mail: ________________________
15. Access by City. City may enter the Space Provided at any time for any purpose.
16. Condition of Property. Operator has inspected the Space Provided and accepts the
Space Provided in its present condition “AS IS” unless expressly provided otherwise
in this Operating Agreement. City has made no express or implied warranties as to
the condition or permitted use of the Space Provided. At the time this Operating
Agreement ends, Operator will surrender the Premises in the same condition as
Attachment number 5 \nPage 3 of 10
Item # A
when received, normal wear and tear excepted. Operator will not cause damage to
the Space Provided and will not cause or allow hazardous materials or
environmental contaminants on the Space Provided. If Operator leaves any
personal property in the Space Provided after expiration of an Operating Term, City
may, at its sole option: (1) require Operator, at Operator's expense, to remove the
personal property within ten (10) after written notice to Operator; or (2) retain such
personal property as forfeited property.
17. Records. Operator shall provide a complete copy of its Articles of Incorporation,
Bylaws and/or other governing documents with the executed Operating Agreement.
Operator shall provide an annual report as required by Exhibit B to this agreement.
In addition, City shall be entitled to inspect and copy Operator’s records concerning
or related to the art center upon request with reasonable notice.
18. Entire Agreement. This Operating Agreement constitutes the sole and only
agreement of the parties, and supersedes any prior understandings or written or
oral agreements between the Parties, concerning the subject matter of this Operating
Agreement. There are no verbal or written representations, understandings,
stipulations, agreements or promises pertaining to this Operating Agreement that
are not incorporated in this Operating Agreement. If a provision of this Operating
Agreement shall be held to be invalid, illegal or unenforceable, such invalidity,
illegality or unenforceability shall not affect any other provision of this Operating
Agreement and this Operating Agreement shall be construed and interpreted as if
such invalid, illegal or unenforceable provisions had not been included. All exhibits
referenced in this Operating Agreement are attached and incorporated by reference
for all purposes.
19. Applicable Law. This Operating Agreement shall be construed and interpreted in
accordance with Texas law. The parties agree that this Operating Agreement is
performable in Williamson County, Texas.
20. Amendment. This Operating Agreement may not be modified or amended except
in writing signed by the City and Operator.
21. Non-Assignment. Operator shall not assign or transfer any right or interest in the
Operating Agreement, in whole or in part, without prior written approval of the
City. Operator shall not sublease or rent out any part of the premises without prior
written consent of the City. This Operating Agreement shall bind the parties, and
their respective legal representative, successors, and permitted assigns.
Attachment number 5 \nPage 4 of 10
Item # A
22. No Third-Party Beneficiaries. This Operating Agreement shall not be construed as
affording any rights or benefits to anyone other than City and Operator.
EXECUTED this day of _______________, 2014.
_______________________________________
By: ___________________________________
Name: ________________________________
Title: __________________________________
STATE OF TEXAS §
§ ACKNOWLEDGMENT
COUNTY OF WILLIAMSON §
This instrument was acknowledged before me on this the _____ day of
__________, 2012, by _____________________________, a person known to me in his
capacity as _______________________________________ of the
_________________________________________.
_______________________________________
Notary Public – State of Texas
Attachment number 5 \nPage 5 of 10
Item # A
City of Georgetown, Texas
By: _____________________________
Dale Ross, Mayor
ATTEST:
________________________________
Jessica Brettle, City Secretary
APPROVED AS TO FORM:
________________________________
Bridget Chapman, City Attorney
STATE OF TEXAS §
ACKNOWLEDGMENT
COUNTY OF WILLIAMSON §
This instrument was acknowledged before me on this the _____ day of
__________, 2014, by Dale Ross, a person known to me in his capacity as Mayor of the
City of Georgetown, Texas.
_______________________________________
Notary Public – State of Texas
Attachment number 5 \nPage 6 of 10
Item # A
EXHIBIT “A”
Plan provided courtesy Gary Wang/Wang Architects
Attachment number 5 \nPage 7 of 10
Item # A
EXHIBIT “B”
OPERATING REQUIREMENTS
During the Operating Term of the Operating Agreement, Operator shall be responsible for:
A. Providing space for an exhibition gallery, instructional space, meeting facilities, and
a gift shop. Secondary functions may include but are not limited to: oversight of
outdoor sculpture installations, art installations in a pocket park, instructional
programs for pre-schoolers, summer camps and after school art programs;
coordination of advertising space for the local arts community such as local
galleries, the Palace Theatre, the Georgetown Symphony Society, Southwestern
University, and the Georgetown ISD; and other arts and culture related activities
such as small musical performances, when space is available. The Operator shall be
allowed to rent the Space Provided or a portion thereof for meetings or other events
consistent with the uses outlined above to third parties. Such rentals shall be subject
to all applicable Operating Requirements contained in the Agreement and
specifically this Exhibit.
B. Hours of operation shall be Tuesday through Saturday, 10 a.m. to 6 p.m. and
Sunday 1 p.m. to 5 p.m. (44 hours per week). The art center shall be open an
additional two evenings per month for a minimum of 2 hours per for a total of 180
hours per month.
C. The gallery of the art center shall have between six and ten major shows per year. A
reception for the featured artist(s) shall be held with each exhibit.
D. Operator shall have a gift shop in the art center and revenue from the shop shall be
used to pay operating costs of the art center.
E. Operator shall provide art classes for children and adults. Revenue from class
registrations shall be used to pay operating costs of the art center.
F. Operator shall provide all equipment to operate an art center, which may include:
a. Cash register
b. Moveable walls for art display
c. Flat screen television
d. DVD player
e. Desktop photocopier
f. Stereo
g. Coffee pot
Attachment number 5 \nPage 8 of 10
Item # A
h. Folding chairs and tables
i. Information board
j. Office supplies
k. Art supplies
l. Easels
m. Safe
n. Storage cabinet
o. Office furniture
p. Gift shop display cases
q. Postage
r. People counter for main entrance
s. Public address system
G. Operator will provide all regular housekeeping of the premises, including
restrooms, gift shop, instructional space, and gallery space.
H. Operator shall include a member from the Arts and Culture Board or the library
administration as a non-voting attendee at all meetings of the Operating Board.
I. Alcohol Policy. If the Operator sells alcohol, or leases the premises to a sublessee
who will serve alcohol, the Operator shall receive prior written approval by the
City. Whenever alcohol is served on the premises, the Operator and its lessee are
subject to all state and federal laws and regulations, including the Texas
Alcoholic Beverage Code.
J. Monthly Reports. The Operator shall provide the City with monthly written reports
with information that includes: door count, name of exhibit, number of classes and
class attendance, number of volunteer hours, a financial report, and attendance of
artist receptions and other special events.
K. Annual Report. The annual report shall provide totals for the information compiled
in monthly reports and shall present a strategic plan to the City of Georgetown Arts
and Culture Board by the end of the first year of the term of this Agreement. The
Georgetown Arts and Culture Board and the Executive Director of Georgetown Arts
Works will hold an annual meeting to discuss the annual report.
Attachment number 5 \nPage 9 of 10
Item # A
EXHIBIT “C”
INSURANCE REQUIREMENTS
Minimum insurance limits for Operator to provide throughout the operating term of this
Operating Agreement, at the Operator’s expense are as follows:
Minimum liability for damage claims through public use or arising out of accidents or
injuries occurring in or around the described premises,
- $100,000.00 per person each occurrence,
- $300,000.00 accident each occurrence,
- $100,000.00 property damage each occurrence.
The Operator also shall obtain insurance to cover the Operator’s property including
equipment located in the Space Provided.
Attachment number 5 \nPage 10 of 10
Item # A
Attachment number 6 \nPage 1 of 1
Item # A
1
April 6, 2015
Georgetown Heritage Society
RE: Email request for information dated April 2, 2015 from Jackson Daly, Executive Assistant to the
Assistant City Manager
In response to the City’s request dated April 2, 2015:
1. Dollar investment into Grace Heritage Center by the Heritage Society, including supplemental costs
provided to assist in the 1992 renovation (on top of the City’s $25,000 contribution*)
* Note: GHS records show the contribution by the City totaled $28,438
Grace Center Improvements
- Funds expended on the rehabilitation of Grace Heritage Center from 1990 – 2004
o $107,877
- 2007
o Sound System; $1,500
- 2008
o Landscape Project; $2,400
- 2010
o Window Shades; $1,400
o Interior/Exterior Lighting; $1,850
o Floor refinishing; $1,482
- 2011
o Pew Seats; $2,700
o Antique Pump Organ donation
- 2015
o New folding chairs; $650
Old chairs were donated to a homeless shelter in Temple
o Security System/Panic Button; $1,100, $400 annual maintenance fee
o Library/Research Room/Bride’s Room conversion; $500 (in progress)
Annual Grace Center Expenditures
- Utilities ($2,700)
- Phone ($1,500)
- Cleaning ($500)
- Insurance ($1,800)
- Part-time Staff/Wedding Agent ($20,000)
2. 2005-2006, 2006-2007, 2009-2010 Annual Reports
- Please see attached
2009-2010 Annual Report is not included
Attachment number 7 \nPage 1 of 4
Item # A
2
3. 2014-2015 Annual Report
- Not available. Due September 23, 2015.
4. Hours of Operation for Grace Heritage Center
- Thursday and Friday, 9 am until 5 pm; and by appointment.
- In addition, the Center is open for First Fridays, Christmas Stroll, Georgetown Swirl, Ladies
Night Out, monthly programs held at Grace Heritage Center and available as requested by
the City and Arts & Culture District stakeholders.
5. An example of the release form for subleasing Grace Heritage Center
- Please see attached
6. Proof of Insurance
- Please see attached
7. Updated financials
- Please see attached
8. Documentation of following services found in Exhibit A of the lease document
A. Rent Grace for public use.
- Grace Heritage Center is available for use for a variety of occasions
i. Rentals promoted on GHS website
ii. Rentals promoted through external events (for example: Georgetown Chamber
Bridal Show)
- Rental Form available at GHC and on-line
- Rental Policy available at GHC and on-line
B. Provide Walking Tour and Step-On Motor Coach tour guides.
- GHS fills requests for tour guides as received (for example: Austin Detours day-out,
September, 2014)
- Tours of Grace Center offered two days a week and anytime the Center is open
- Heritage Tour option available/promoted on website
- Walking Tour script available
- Driving Tour script available
C. Publish “Exploring Historic Georgetown” booklet for Visitor Center
- Original copyright, 1987, revised and reprinted 1995
- Booklet revised & reprinted in 2011; renamed Historic Homes of Georgetown
- Booklet revised & reprinted in 2014 to include Olive Street National Register Historic
District
Attachment number 7 \nPage 2 of 4
Item # A
3
D. Publish “A Walking Tour of Downtown Georgetown” brochure for the Visitor Center
- Brochure updated in 2009
- Available at GHC, CVB, Museum and Georgetown Public Library
E. Make available “Courthouses of Williamson County” brochure, four volume “Georgetown’s
Yesteryears” book series and “Sentimental Journey” education books for sale to public.
- All publications available
i. Publications reprinted as needed (for example: Vol II of ‘Yesteryears’ series
currently being prepared for reprinting)
- In addition, The Gracious Gift: The Negro Fine Arts School; ‘A Brief History of Grace’
brochure; GHC Rental Policy & Application
F. Host annual holiday Heritage Home Tour
- GHS hosts an annual Holiday Home Tour in Historic Georgetown
- The 2014 Holiday Home Tour in Historic Georgetown featured Georgetown’s newest
National Register Historic District, Olive Street.
i. Record crowds (sold out of 1500 tickets)
ii. Updated event to include food court and evening candlelight tour
iii. Program/Ticket featured information on Tour homes and included self-guided
tour of Olive Street District properties.
G. Furnish stock of Georgetown-related inventory to Visitor Center
- A variety of products have been offered over the years, including
i. Three varieties of holiday ornaments
1. *Resin miniature of Grace Center (sold out in original casting in 2002,
restocked in 2014)
2. *Pewter ornament featuring Grace Center, new in 2012
3. Resin miniature of Presbyterian Church, 2003; sold out
4. Resin miniature of Williamson County Courthouse, 2004; sold out
5. Old Grace Church ornament, 2010, sold out
ii. *Illuminated ceramic Williamson County Courthouse and Grace Chapel
iii. *Notecards featuring historic Georgetown structures
iv. *Georgetown print, signed and numbered by artist Michelle Rideout
v. *Books, Brochures and Booklets
vi. *Exclusive sterling silver Jewelry John collectible bell necklace
vii. Shopping bag, sold out
* Currently available
H. Promote and enrich Georgetown’s heritage through educational programs
- Monthly programs are offered in variety of formats (for example: lunch & learn, mid-
week evenings, Saturday mornings) at locations including the Williamson County
Courthouse, Library, Grace Center
Attachment number 7 \nPage 3 of 4
Item # A
4
I. Support work to update information relevant to Heritage Tourism
- GHS supports work to update information relevant to heritage tourism
i. Recent examples include:
1. 2014 Updated Driving Tour booklet (Historic Homes of Georgetown)
a. In 2015, booklets donated to Library & CVB for use with Bike
Rental program
2. 2014 new GHS website
3. 2013 Social media (Face Book)
4. 2013 Initiated, managed and funded Olive Street National Register
Historic District established August, 2013. Hosted community-wide
Reception, October, 2013.
- In addition, GHS offers
i. Free use of GHS holdings of archival files of photographs and properties
ii. Commemorative bricks for Walk of History path at GHC
iii. Heritage Home Markers available to homes and structures 50 years old +
Attachment number 7 \nPage 4 of 4
Item # A
City of Georgetown, Texas
City Council Agenda
April 14, 2015
SUBJECT:
Review of the City’s Fiscal & Budgetary Policy and discussion of possible amendments for 2015/16 -- Micki
Rundell, Chief Financial Officer
ITEM SUMMARY:
The purpose of the Fiscal and Budgetary Policy (Policy) is to provide the framework for financial
operations of the City and to ensure prudent stewardship, financial planning and accountability. As part of
the Annual Budget process, the City Council reviews, amends if necessary and adopts the Policy by
ordinance each year. Prior to any Council action, the General Government and Finance Advisory Board
(GGAF) will review the Policy and makes recommendations for any amendments or clarifications that may
be needed.
Each year the Policy is administratively amended to recognize date and amount changes within the text; and
to address any new financial or regulatory requirement that may need to be added. Other amendments may
be recommended in order to clarify wording or to further granulate a particular Policy Area.
Potential amendments that were recommended by GGAF at its March 25 meeting are notated by page
numbers that included in the red-line draft document:
Page 8 – Codifies the utility standardized “cost of service” methodologies for establishing the City’s
utility rates, including Water, Wastewater, Electric and Stormwater Drainage.
These methodologies were adopted by the GUS Board as the basis for the current City utility
rates. This addition only codifies that action for future rate analysis.
Page 9 – A major portion of the City’s General Fund Revenue is internal cost recovery. This
amendment clarifies the “Internal Cost Recovery Fees” as a revenue source.
No other changes were made to this section other than adding this title to the paragraph.
Page 10 – A new section on “Long-term Liability Reserves” has been added and includes the
Cemetery Reserve.
GGAF will continue to review long-term commitments and other under-funded liabilities for
future additions
Page 13 – Updated the chart that summarizes the procurement approval requirements to mirror state
law, and clarified that all purchases must be approved according to preapproved limits within each
department and as directed and approved by the City Manager.
Page 28 – A note was added to cross reference the use of excess minimum reserves to “Section IV. L.
Use of Unanticipated and Unappropriated General Fund Balances”.
Page 28 – Language regarding aged receivables has been deleted in order to be compliant with “Red
Flag Rules” for customer account management.
In addition, references to fiscal year 2014/15 have been updated and designated amounts have been left
blank. These amounts will be included once they have been determined and will be included in the final
document that is included in the 2015/16 adopted budget.
FINANCIAL IMPACT:
N/A
SUBMITTED BY:
Micki Rundell, Chief Financial Officer
ATTACHMENTS:
F&B Draft Redline w-GGAF Recommendations
F&B Overview Presentation
Cover Memo
Item # B
1
City of Georgetown
Fiscal and Budgetary Policy
DRAFT
General Government & Finance (GGAF) Recommendations included
GGAF Review March 25, 2015
City Council Review April 14, 2015
I. PURPOSE
The City of Georgetown is committed to financial management through integrity, prudent
stewardship, planning, accountability, full disclosure and communication. The broad
purpose of the Fiscal and Budgetary Policies is to enable the City and its related
component units, including the Georgetown Transportation Enhancement Corporation
(GTEC) and the Georgetown Economic Development Corporation (GEDCO) to achieve
and maintain a long-term stable and positive financial condition, and provide guidelines
for the day-to-day planning and operations of the City’s financial affairs.
Policy scope generally spans areas of accounting and financial reporting, internal
controls, both operating and capital budgeting, revenue management, investment and
asset management, debt management and forecasting. This is done in order to:
A. Demonstrate to the citizens of Georgetown, the investment community, and the bond
rating agencies that the City is committed to a strong fiscal operation;
B. Provide precedents for future policy-makers and financial managers on common
financial goals and strategies;
C. Fairly present and fully disclose the financial position of the City in conformity to
generally accepted accounting principles (GAAP); and
D. Demonstrate compliance with finance-related legal and contractual issues in
accordance with the Texas Local Government Code and other legal mandates.
These policies will be reviewed and updated annually as part of the budget preparation
process.
II. FUND STRUCTURE AND BASIS OF BUDGETING
The budgeted funds for the City of Georgetown include:
Governmental Funds: General Fund which accounts for all financial resources
except those required to be accounted for in another fund, and
include basic governmental services, such as Street
Maintenance, Planning and Development, Police, Fire and
Parks, as well as, solid waste management.
Attachment number 1 \nPage 1 of 31
Item # B
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Special Revenue Funds (SRF) account for specific revenues
that are legally restricted for specified purposes. The City
currently budgets ____ SRF Funds and 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.
Proprietary Funds: Internal Service Funds account for good or services provided
by one internal department to another. The City uses this
system to recognize cost for fleet replacement and
maintenance, facility maintenance,and computer replacement
and maintenance 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’s accounts and budgets for all Governmental Funds using the modified
accrual basis of accounting. This basis means that revenue is recognized in the
accounting period in which it becomes available and measurable, while expenditures are
recognized in the accounting period in which they are incurred. Because the
appropriated budget is used as the basis for control and comparison of budgeted and
actual amounts, the basis for preparing the budget is the same as the basis of
accounting. Exceptions to the modified accrual basis of accounting include:
• Encumbrances, which are treated as expenditures in the year they are encumbered,
not when expended.
• Grants, which are considered revenue when awarded, not received.
• Principal and interest on long-term debt, which are recognized when paid.
General government funds include the general fund, special revenue funds, debt service
fund and general capital project funds.
Proprietary Funds, which include the enterprise and internal service funds are
accounted and budgeted using the full-accrual basis of accounting. Under this method,
revenues are recognized when they are earned and measurable, while expenses are
recognized when they are incurred regardless of timing or related cash flows. The basis
for preparing the budget is the same as the basis of accounting except for principal
payments on long-term debt and capital outlay which are treated as budgeted expenses.
Exceptions include:
• Depreciation which is not budgeted
• Non-budgeted accruals such as compensated absences
Attachment number 1 \nPage 2 of 31
Item # B
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III. FUND BALANCE POLICIES
The City’s Fund Balance is the accumulated difference between assets and liabilities
within governmental funds, and it allows the City to meet its contractual obligations, fund
disaster or emergency costs, provide cash flow for timing purposes and fund non-recurring
expenses appropriated by City Council. This policy establishes limitations on the
purposes for which Fund Balances can be used in accordance with Governmental
Accounting Standards Board (GASB) Statement Number 54.
The City’s Fund Balance will report up to five components:
A. Non-spendable Fund Balance – includes inherently non-spendable assets that will
never convert to cash, as well as, assets that will not convert to cash soon enough to
affect the current financial period. Assets included in this category are prepaid items,
inventory and non-financial assets held for resale.
B. Restricted Fund Balance – represents the portion of fund balance that is subject to
legal restrictions, such as grants or hotel/motel tax and bond proceeds.
C. Committed Fund Balance – describes the portion of fund balance that is constrained
by limitations that the City Council has imposed upon itself, and remains binding
unless the City Council removes the limitation.
D. Assigned Fund Balance – is that portion of fund balance that reflects the City’s
intended use of the resource and is established in a less formal method by the City
for that designated purpose.
E. Unassigned Fund Balance – represents funds that cannot be property classified in
one of the other four categories.
IV. OPERATING BUDGET
Budgeting is an essential element of the financial planning, control and evaluation
process of municipal government. The “operating budget” is the City’s annual financial
operating plan. The annual budget includes all of the operating departments of the
general fund, proprietary funds, debt service funds, special revenue funds, and capital
improvement funds of the City.
A. Comprehensive Plan – The 2030 Plan is written from a perspective of some twenty
years into the future. It expresses what we envision and desire our community to be
in the year 2030, and it ref lects on all that we have accomplished since we launched
the revision of our Comprehensive Plan in 2006. The Plan utilizes a Vision
Statement to guide the desired outcomes for the community.
B. Council Vision – The Council has further defined the City’s Comprehensive Plan by
defining its vision to become the City of Excellence. This vision is to be
accomplished through five (5) focus areas. These focus areas become the City’s
strategic goals through development and implementation of defined Business Plans
for each focus area.
1. Economic Development
2. Signature Destination
3. Public Safety
4. Transportation
5. Utility Services
Attachment number 1 \nPage 3 of 31
Item # B
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C. Five-Year City of Excellence Business Plan – A “dashboard” plan will be
developed that links the 2030 Plan with the City Council’s City of Excellence vision
and five focus areas (strategic goals) that further the implementation of the Vision.
From those strategic goals an implementation plan for each of the 5 focus areas will
be created.
1. A Five-Year Financial Forecast will be created and updated annually that will
identify potential tax impacts, rate adjustments and other factors that will impede
the implementation of the City of Excellence Business Plan.
2. Year-One of this Business Plan is the basis for the Annual Budget.
D. Preparation – The Charter (Section 6.02) requires “a proposed budget prepared by
the City Manager and submitted to the City Council at least thirty days prior to the
end of the fiscal year. The budget shall be adopted not later than the twenty-seventh
day of the last month of the fiscal year. No budget will be adopted or appr opriations
made unless the total estimated revenues, income and funds available shall be equal
to or in excess of such budget or appropriations, except otherwise provided”.
Therefore, the budget will be presented to the City Council no later than the 1st day of
August to provide the City Council time to adopt the budget in the required time
frame.
1. Proposed Budget – A proposed budget shall be prepared by the City Manager
with participation of all of the City’s Division Directors within the provision of the
Charter and the 2030 Plan and the City of Excellence Vision.
a. The budget shall include four basic segments for review and evaluation:
• Revenues
• Personnel Costs
• Operations and Maintenance
• Capital and other non-project costs
b. The budget review process will include City Council participation in the
development of each segment and allow for citizen participation in the
process, and will allow for sufficient time to address policy and fiscal issues
by the City Council.
c. A copy of the proposed budget will be filed with the City Secretary when it is
submitted to the City Council. A copy will also be available at the
Georgetown Public Library for citizen review.
2. Adoption – Upon finalization of the budget appropriations, the City Council will
hold a public hearing, and subsequently adopt by Ordinance the final budget as
amended. The budget will be effective for the fiscal year beginning October 1st.
The Annual Budget document will be submitted annually to the Government
Finance Officers Association (GFOA) for evaluation and consideration for the
Distinguished Budget Presentation Award.
Attachment number 1 \nPage 4 of 31
Item # B
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E. Balanced Budget – The goal of the City is to adopt and maintain a balanced
operating budget using sustainable funding sources that are expected to continue to
be available in subsequent fiscal years. Excess balances in operating funds from
previous fiscal years shall remain in the fund in which they were appropriated until
either such excess balances are proposed and adopted pursuant to Section IV. D. of
the thisthis policy; until they are used to reduce outstanding debt obligations of the
City; or both.
The Charter (Section 6.04) requires that an operating deficit created in any fiscal
year shall be paid off and discharged during the following year. In practice, deficit
has been interpreted to mean City funds as a whole. The City Council may choose
from time to time to allow individual funds to have a negative balance as long as
Operating Reserve requirements for the City as a whole are maintained.
F. Planning – The budget process will be coordinated so that major policy issues are
identified prior to the budget approval date. This will allow City Council adequate
time for consideration of appropriate decisions and analysis of financial impacts.
G. Reporting – Summary financial reports will be presented to the City Council
quarterly. These reports will be in a format appropriate to enable the City Council to
understand the overall budget and financial status.
H. Control and Accountability – Each Division Director, appointed by the City
Manager, will be responsible for the administration of his/her departmental budget.
This includes accomplishing the Goals and Objectives adopted as part of the budget
and monitoring each department budget for compliance with spending limitations.
Division Directors may transfer funds up to $20,000 within the operations and
maintenance or capital line items within a departmental budget category without
additional approval. All transfers within the Personnel line items require approval of
the Chief Financial Officer and City Manager. All other transfers of appropriation or
budget amendments require either City Council or City Manager approval as outlined
in Section IV.I and Section VI.B.4.
I. Budget Amendments – The Charter (Section 6.04) provides a method to amend for
budget amendments and emergency appropriations. The City Council may authorize
with a majority plus one vote, an emergency expenditure as an amendment to the
original budget. This may be done in cases of grave public necessity to meet an
unusual and unforeseen condition that was not known at the time the budget was
adopted. In practice, this has been interpreted to include revenue-related expenses
within the enterprise funds and timing differences on capital improvement projects.
The following criteria will be used in evaluation of budget amendments:
• Is the request necessary?
• Why was the item not budgeted in the normal budget process?
• Why can't a transfer be done within the Division to remedy the condition?
The Chief Financial Officer must certify availability of revenues or funding sources
prior to adoption.
Attachment number 1 \nPage 5 of 31
Item # B
6
The City will amend the budget at year end, if needed, for revenue based
expenditures that exceeded budgeted amounts due to increased revenue and
recognize any grant funded expenditures for grants received after the budget was
adopted or last amended. The City will also amend the budget if necessary as part
of the Mid-Year Review process for any capital project timing adjustments from prior
year, as well as, any other known adjustments needed and approved at that time.
J. Contingency Appropriations – The budget may include contingency appropriations
within designated operating department budgets. These funds are used to offset
expenditures for unexpected maintenance or other unanticipated expenses that
might occur during the year. Currently, the City maintains contingency appropriations
for insurance deductibles, unexpected legal expenses and equipment repairs.
K. Council Discretionary Account – The budget may contain appropriated funds to be
used at the discretion of the City Council. Actual expenditure of these funds is
specifically approved by the City Council on an item by item basis. The Council
Discretionary Account for 2014/152015/ is16 is $10,000 included in the General
Fund.
L. Use of Unanticipated and Unappropriated General Fund Balances - Within 90
days after fiscal year end, staff will report the projected general fund balance to
Council. In the event that unexpected, unbudgeted amounts are determined to be
available in the General Fund after year end, these funds may be used for any of the
following purposes, as approved by the City Council:
1. to fund capital projects;
2. to fund equipment purchases in lieu of issuing debt;
3. to reduce outstanding city debt, including bonded indebtedness and unfunded
pension liabilities;
4. to fund contingent liabilities such as the benefit payout reserve, cemetery trust
fund, and similar obligations of the city;
5. to take other steps to reduce property tax rates or mitigate any future increases;
6. to hold those funds in reserve for future commitments or contingencies that may
be pending, and/or
7. to fund an economic uncertainty reserve of up to three (3) percent of annual
General Fund operating expenditures.
V. REVENUE MANAGEMENT
A. Characteristics – The City will strive for the following optimum characteristics in its
revenue system:
1. Simplicity – The City, where possible and without sacrificing accuracy, will strive
to keep the revenue system simple in order to reduce compliance costs for the
taxpayer or service recipient.
Attachment number 1 \nPage 6 of 31
Item # B
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2. Certainty – A knowledge and understanding of revenue sources increases the
reliability of the revenue system. The City will understand its revenue sources
and enact consistent collection policies to provide assurances that the revenue
base will materialize according to budget.
3. Equity – The City shall make every effort to maintain equity in its revenue
system; i.e., the City should seek to minimize or eliminate all forms of
subsidization between entities, funds, services, utilities, and customer classes,
and ensure an on-going return on investment for the City.
a. The City will make every effort to recognize the benefit that City tax payers
contribute to City programs and services.
b. The annual Parks and Recreation residential membership rates are
established at 75% of non-residential rates plus or minus 10% at the
discretion of the Parks and Recreation Director in keeping with the targeted
market cost recovery.
4. Revenue Adequacy – The City should require there be a balance in the revenue
system; i.e., the revenue base will have the characteristics of fairness and
neutrality as it applies to cost of service, willingness to pay, and ability to pay.
Overall Operational Cost Recovery for Parks and Recreation for the Recreation
and Tennis Centers is targeted to be between 50 – 60%, with some variance in
individual programs.
5. Realistic and Conservative Estimates - Revenues will be estimated realistically,
and conservatively, taking into account the volatile nature of various revenue
streams.
6. Administration – The benefits of a revenue source should exceed the cost of
levying and collecting that revenue.
7. Diversification and Stability – A diversified revenue system with a stable source
of income shall be maintained. This will help avoid instabilities in two particular
revenue sources due to factors such as fluctuations in the economy and
variations in the weather.
B. Other Considerations – The following considerations and issues will guide the City
in its revenue policies concerning specific sources of funds:
1. Cost/Benefit of Incentives for Economic Development – The City will use due
caution in the analysis of any incentives that are used to encourage
development. A cost/benefit (fiscal impact) analysis will be performed as part of
the evaluation.
2. Non-Recurring Revenues – One-time or non-recurring revenues should not be
used to finance current ongoing operations.
Attachment number 1 \nPage 7 of 31
Item # B
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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.
Conservative budgeted revenue estimates result in a projected ninety-eight
percent (98%) budgeted collection rate for current ad valorem taxes. Two
percent (2%) of the current ad valorem taxes will be projected as the budget for
delinquent ad valorem tax collection. For budgeting purposes, the City will
forecast the proposed property tax rate using the effective maintenance &
operations (M&O) rate plus the interest & sinking (I&S) rate needed to fund tax
supported debt service. Increases to the M&O rate will be deliberated and
determined by the City Council. Proposed tax revenue will be budgeted at a 98%
collection rate.
5. Interest Income – Interest earned from investments will be distributed to the
funds in accordance with the equity balance of the fund from which the monies
were provided to be invested.
6. User-Based Fees and Service Charges – For services associated with a user fee
or charge, the direct or indirect costs of that service will be offset by a fee where
possible. The City will review fees and charges no less than once every two
years to ensure that fees provide adequate coverage for the cost of services.
The City Council will determine how much of the cost of a service should be
recovered by fees and charges.
7. Enterprise Fund Rates – The City will review and adopt utility rates as needed to
generate revenues required to fully cover operating expenses, meet the legal
requirements of all applicable bond covenants, and provide for an adequate level
of working capital. Utility rates will be reviewed annually as part of the budget
process. A rate study will be conducted every 3 years to review rate
methodology and ensure revenues will meet future needs. All utility rates will be
based on standardized “cost of service” methodologies,
• Water Rates will recognize the 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 “flat and equal” for all residential customers based
on the cost of providing services. Commercial customer rates are varied
depending on size and specifications of each commercial customer.
• Electric Rates include 100% of fixed costs within the base rate, with all
variable costs included in the kWh rate.
• Stormwater Drainage Fees are based a mathematical calculation based
on impervious cover and applied in compliance with State Law.
Attachment number 1 \nPage 8 of 31
Item # B
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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.
b. Payment for Return on Investment – The intent of this transfer is to provide
a benefit to the citizens for the ownership of the various utility operations they
own. For all utilities except for Electric:
• In-Lieu-of-Franchise-Fee. This transfer, currently 3% of operating
revenues generated inside the City, is consistent with the franchise rates
charged to investor owned utilities franchised to operate within the City.
• Return on Investment. The return on investment (ROI) transfer for In-
City utility customers is currently calculated at 7% of operating revenues
for all utilities. 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 is based
on kWh sold. For customers inside the City, a $0.0102 charge per kWh,
equivalent to the 3% and 7% paid by other utility customers, will be
included in the cost per kWh. For customers outside the City, a
$0.007253 charge per kWh, equivalent to the 7% ROI paid by utilities, will
be included in the cost.
Attachment number 1 \nPage 9 of 31
Item # B
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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.
10. Revenue Monitoring – Revenues as they are received will be regularly compared
to budgeted revenues and variances will be investigated, and any abnormalities
will be included in the quarterly report to the City Council.
VI. 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.
1. Cemetery Reserve will be established for the purpose of funding continued
maintenance for City owned cemetery properties
VI.VII. EXPENDITURE POLICIES
A. Appropriations – The point of budget control is at the department level budget for
all funds. The Charter (Section 6.03) provides that any transfer of appropriation
between funds must be approved by the City Council and that the City Manager,
without City Council approval, is authorized to transfer appropriations among
departments, within the same operational division and fund. The City Manager may
also authorize transfer of salary adjustment monies between funds that are budgeted
in a citywide account.
B. Personnel Costs – Costs related to salaries and benefits are budgeted at 100%
total costs, assuming open positions are filled throughout the fiscal year. New
positions that are added during the budget process may have staggered hire dates
with appropriate costs reflected in the budget.
1. Vacancy Factor – General Fund appropriations will include a vacancy factor
equal to 1% of total General Fund salaries and related benefits to offset salary
savings within the budget. The vacancy factor will be budgeted as a negative
expense within the General Government Department of the General Fund. For
2014/152015/16 the Vacancy Factor equals $ ______. This factor will be
reduced throughout the year as vacant positions are recognized within the
department budget.
2. Benefit Payout Reserve - The City will establish a benefit payout reserve equal to
15% of the accrued benefit liability for employees who are currently meet eligible
to retirement. Only terminating employee benefit expenses may be paid from this
reserve. This reserve shall be funded as an offset to the vacancy factor. For
2014/15 2015/16$ ______is budgeted for this reserve.
3. Position Control – The annual budget includes a set number of positions within
departments when approved and adopted by City Council. Additional positions
Attachment number 1 \nPage 10 of 31
Item # B
11
cannot be added without approval of the City Council. The City Manager may
approve the transfer of authorized positions between departments if funds are
available within the department.
4. Use of Excess Salary Savings – Departmental savings generated due to open
positions or other salary line item savings cannot be spent by the department
unless previously approved by the City Manager and validated by Finance as
“excess funds”.
C. Special Purpose Funding – In order to support community assistance programs,
the City designates specific funding for special purposes, including Social Services,
Children’s Programs, and Public Art. The City reserves the ability to cap this special
purpose funding when necessitated by budget contingency or compliance issues,
such as revenue shortfalls, or other reasons as determined by City Council.
1. Strategic Partnerships for Community Services. – The City of Georgetown values
partnerships with organizations that are committed to addressing our
communities greatest public challenges and has identified key priorities in the
following areas:
• Public Safety
• Transportation
• Housing
• Parks & Recreation
• Veteran Services, and
• Safety Net
The City has targeted funding for these programs to be $5.00 per capita, which
may be adjusted to offset the effects of general inflation based upon CPI. If
previous funding levels are higher than the targeted amount, and to avoid
significant reductions in levels of funding, the City Council shall seek to attain this
target chiefly through population growth. These funds will be allocated and paid
according to the City Council’s guidelines for such programs.
The funding level for 2014/15 2015/16 is $400,049 for these type of initiatives
and is the same as in the previous year.
2. Public Art Funding - The City will annually allocate funding for Public Art on a
year to year basis depending on the availability of funds in an amount to be
determined at the discretion of the City Manager. Funding priority will be given to
projects that include a matching donation, including contributions from local
organizations and sponsors. Any unspent funds will accumulate and be
reallocated in the following budget year. Disbursement of these funds will be
determined by the City Council at the recommendation of the City’s Arts &
Culture Advisory Board.
Every effort will be made to include public art funding in future City facilities
whose primary purpose is for public use. These projects will include a
reasonable allowance for public art that fits the scope and purpose of the building
so long that it does not negatively impact the project cost beyond the original
budget. In the event there is cost savings in the construction of City Facilities,
the City Council may consider utilizing that savings on the purchase of public art
for the facility.
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Item # B
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D. Purchasing – The City will maintain and regularly review a written Purchasing
Policy. All City purchases of goods or services will be made in accordance with the
City’s current Purchasing Policy and with State law.
Attachment number 1 \nPage 12 of 31
Item # B
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The following shows a summary of approval requirements for purchases.
Dollar Limits: Procurements: Requirements:
Under
$3,000
Under the small purchase
limit
No competitive bids and City credit
cards may be used.
$3,000
up to
$50,000
Within informal bid limit
A minimum of three informal
competitive bids required unless
exempted: HUB requirements apply in
accordance with state law.
$25,000
and above
Within City Manager’s
approval
In addition to the requirements above,
the City Manager must approve the
purchase.
$50,000
and above
In excess of the informal bid
limit
Formal solicitations, which includes
public notices, required unless
exempted. Advisory board review and
recommendation may be required.
Council approval required.
Dollar Limits: Procurements: Requirements:
Under
$3,000
Under the small purchase
limit
No competitive bids and City credit
cards may be used.
$3,000
up to
$50,000
Within informal bid limit A minimum of three informal
competitive bids required unless
exempted: HUB requirements apply in
accordance with state law.
$50,000
and above
In excess of the informal bid
limit
Formal solicitations, which includes
public notices, required unless
exempted. Advisory board review and
recommendation may be
required. Council approval required.
In addition to the above, all purchases must be approved according ly to preapproved
limits within each department as directed and approved by the City Manager.
E. Contracts and Change Orders - Contracts and related change orders must follow
the City Purchasing Policies and State Law. In accordance with State Law, change
orders are limited to 25% of the total contract amount. Change orders greater than
$50,000 require the same advisory board review and Council approvals as the
original contracts.
F. Prompt Payment – All invoices approved for payment by the proper City authorities
shall be paid within thirty (30) calendar days of receipt of goods or services or invoice
date, whichever is later in accordance with State law. The City will take advantage of
all purchase discounts, when possible.
G. Risk Management – The City will pursue every opportunity to provide for the
Public’s and City employees’ safety and to manage its risks. The goal shall be to
minimize the risk of loss of resources through liability claims with an emphasis on
safety programs.
Attachment number 1 \nPage 13 of 31
Item # B
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H. Retirement Benefits – Proposals to revise benefits administered and provided by
the Texas Municipal Retirement System shall include a written description, and,
detailed and summary numerical assessments of the changes that would result from
the proposed benefit revision.
1. The numerical assessments shall include the following:
a. The estimated change to the TMRS contribution rate that would result from
the proposed change in benefits, expressed as a percentage of employee
pay and as an annual dollar amount to the General Fund and to each City
fund.
b. The estimated change to the City’s unfunded pension liability, expressed as
a dollar amount.
c. The estimated change to the City’s actuarial funding ratio.
2. The description and numerical assessments must be provided to the City Council
at least 72 hours prior to consideration and approval, and must be read aloud to
the Council prior to Council consideration.
3. The estimated changes to the City’s contribution rate and the unfunded pension
liability presented pursuant to the section must be based on information provided
by the TMRS actuary or by professional actuary authorized by the TMRS to
provide such information.
4. Proposals to revise TMRS benefits must be voted on individually as part of the
City Council’s legislative agenda.
5. The City has established 80% as the minimum funding goal for the City’s
unfunded pension liability. The City’s funded pension liability is 81.3% as of
December 31, 2013, as disclosed by TMRS. The City’s ultimate goal is 100%,
but will be achieved reasonably over time.
6. The City may elect to make an annual 1-time payment prior to further fund the
City’s unfunded pension liability. Such payment will be approved and authorized
by the City Council prior to December 31 in order to be recognized in the
following year’s TMRS employer contribution rate calculation.
7. Retirement Cost-of-Living Adjustment
a) Within 60 days of when the TMRS annual funding update becomes available
each year, staff will review and prepare a summary of costs and options for
potential cost-of-living adjustment (COLA) for City of Georgetown retirees.
b) Consistent with state statutes governing the Texas Municipal Retirement System,
the city may provide an automatic COLA for members of the TMRS who are
retired from the City of Georgetown and receiving a monthly retirement benefit
from the TMRS.
c) The city council may adjust the COLA provided to city retirees based upon the
funding level of the city’s pension plan, as calculated by the TMRS, as follows:
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Item # B
15
When the funding level of the
city’s pension plan is
The COLA
should be
Less than 70.0%
Zero
70.0% to 79.9%
0.3% of CPI
80.0% to 89.9%
0.5% of CPI
90.0% and greater
0.7% of CPI
d) Adjustments made pursuant to subsection b. should reflect the effect of the
prospective change in the COLA on the funding level of the city’s pension plan.
VII.VIII. 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. Notwithstanding Section XIV.A.2.b. of this policy, authorize a reduction in the
unobligated fund balance in the General Fund, pursuant to Section XIV.A.2.b. of
this policy, from 90 to 75 days.
3. Direct other reductions in services, including workforce reductions.
C. Replenish Fund Balance - As soon as practicable, without placing undue strain on
city services, the City Council shall increase the unobligated fund balance in the
General Fund, up to the 90-day amount required in Section XIV.A.2.b. of this policy.
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Item # B
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VIII.IX. CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET
The City’s goal is to maintain City facilities and infrastructure in order to provide excellent
services to the customers within the community, meet growth related needs, and comply
with all state and federal regulations.
A. Preparation – The City annually updates and adopts a five-year Capital
Improvement Program (CIP) schedule as part of the operating budget adoption
process. The plan is reviewed and adjusted annually as needed, and year one is
adopted as the current year capital budget. The capital budget will include all capital
projects, capital resources, and estimated operational impacts.
• Needed capital improvements are identified through system models, repair and
maintenance records and growth demands.
• Economic development projects that have capital infrastructure needs must be
reviewed and approved for funding by the City no later than March 1 to be
included in the annual CIP process. Any economic development project
approved for funding after March 1 will be included in the following year CIP
process unless otherwise authorized by City Council.
• A team approach will be used to prioritize CIP projects, whereby City staff from
all operational areas provide input and ideas relating to each project and its effect
on operations.
• Citizen involvement and participation will be solicited in formulating the capital
budget through neighborhood meetings, public hearings and other forums.
• Capital infrastructure necessary to meet the requirements of the City’s
Annexation Plan will be identified separately within the CIP plan, so that funding
alternatives can be developed if needed.
Prior to Council adoption, the following Advisory Boards will review the
Capital Projects budget:
Georgetown
Utility Systems
Advisory Board
(GUS)
Georgetown
Transportation
Advisory Board
(GTAB)
General Government
and Finance
Advisory Board
(GGAF)
Parks
Advisory
Board
Electric
Water
Wastewater
Streets
Stormwater Drainage
Airport
Facilities
Other General
Government Capital
Parks and
Recreation
B. Control – All capital project expenditures must be appropriated in the capital budget.
Availability of resources must be identified and then reviewed by the Finance
Division before any CIP contract is presented to the City Council for approval.
Prior to presentation to Council, the following Advisory Boards will review:
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Item # B
17
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.
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.
IX.X. CAPITAL MAINTENANCE AND REPLACEMENT
The City recognizes that deferred maintenance increases future capital costs.
Therefore, a portion of all individual funds with infrastructure should be budgeted each
year to maintain the quality within each system.
A. Infrastructure Maintenance - On-going maintenance and major repair costs are
included as capital expense within the departmental operating budgets. These costs
are generally considered system repairs and are not capitalized for accounting
purposes. They include such items as park and recreation facility repairs, street seal
coat, water line repairs and other general system maintenance.
B. Modified Approach - Pavement Condition Index (PCI) - Governmental Accounting
Standards Board Statement # 34 provides for an alternative approach to depreciation
for measuring the value of infrastructure assets and the related costs incurred to
maintain their service life at a locally established minimum standard. The City has
elected to implement this modified approach in maintaining their non-enterprise fund
infrastructure assets. In order to adopt this alternative method, the City has
implemented an asset management system that determines if the minimum
standards are being maintained. This measurement system will be updated at least
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every 3 years. The City has elected to use this alternative method for reporting its
street infrastructure assets.
The City uses the CarteGraph PavementView Pavement Management
Information System to track the condition levels of each of the street sections.
The condition of the pavement is based on the following factors:
• Type of Distress
• Amount of Distress
• Severity of Distress
• Deduct Values (function of first three)
The Pavement Condition Index (PCI) is a measurement scale is based upon a
condition index ranging from zero for a failed pavement to 100 for pavement with
perfect condition. The condition index is used to classify pavement in the following
conditions:
The City’s administrative policy is to achieve an average PCI level of 85. An 85 PCI
is considered maintaining the streets in a “good” condition. Staff will prepare a street
maintenance budget that meets this target for Council’s consideration during the
budget process. The PCI level as of 2014 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 the using funds for the use of equipment currently in use and to be
purchased during the year. In this way, suitable funds are available for the purchase
of operational assets without the issuance of debt.
A. 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.
B. Technology – It is the policy of the City to plan and fund the maintenance and
replacement of its computer network and other technology systems. The City
currently uses a four-year replacement cycle for all desktop computers. A
reserve will be established within the ISF for replacement of major systems and
will be funded over time through excess revenues within the Fund. Funding for
major systems assumes that 50% of the replacement cost will be debt funded.
C. 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
PCI Rating
100 – 85 Good
85 – 45 Fair
45 – 0 Poor
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equipment and established a means of charging those costs to the various
departments in order to recognize the City’s continuing costs of maintaining its
facilities. Determination for facility repairs is based on useful life of the various
elements of each facility. A proportional cost for each element is expensed
within the budget for capital replacement. An additional unscheduled repair
reserve equal to 10% value of annual internal service funding is also budgeted.
The estimate reserve for 2014/15 2015/16 equals $ _____.
D. Departmental Capital Maintenance & Replacement – The City also utilizes
department capital maintenance and replacement schedules for specialized assets
and equipment necessary to provide services.
1. Parks and Recreation - As part of the City’s on-going maintenance program, the
City also recognizes the need to regularly maintain and replace grounds,
equipment and facilities that are part of the City’s Parks and Recreation system.
Separate replacement and maintenance schedules will be maintained for these
items including, but not limited to, playground equipment, buildings, sport courts,
trees and grounds, and restroom facilities. The City’s goal is to provide level on-
going funding to ensure safe, well-maintained facilities for its citizens.
2. Public Safety Equipment – As part of the City’s on-going maintenance program,
the City also recognizes the need to regularly maintain and replace specialized
equipment in Police and Fire. Separate replacement and maintenance
schedules will be maintained for these items including but not limited to for Fire:
SCBA’s and other firefighting equipment and protective gear; and for Police:
bullet proof vests, armaments and other tactical equipment. The City’s goal is to
provide level on-going funding to ensure proper protection for employees and
citizens.
E. Surplus Property
1. From time to time it is necessary to dispose of certain vehicles or equipment that
have been procured with City funds and used in City services. Individual surplus
property items with expected sales value in excess of $10,000 must be approved
by the City Council prior to disposition.
2. City staff will maintain reports and records of all surplus property dispositions in
accordance with good internal controls. A report of all disposed items in excess
of $1,000 will be included with the quarterly financial reports provided to City
Council.
X.XI. ACCOUNTING, AUDITING AND FINANCIAL REPORTING
A. Accounting – The City is solely responsible for the recording and reporting of its
financial affairs, both internally and externally. The Chief Financial Officer (CFO) is
responsible for establishing the structure for the City’s Chart of Accounts and for
assuring that procedures are in place to properly record financial transactions and
report the City’s financial position.
B. General Government and Finance Advisory Board (GGAF) – The City may
establish a subcommittee consisting of (3) City Council members and (2) citizens
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that may meet monthly to provide additional oversight to the City’s Finance
operations. This subcommittee will also review general government items that are
not reviewed by another City advisory board before being presented to City Council.
The City’s CFO will be the liaison for this subcommittee.
C. Audit of Accounts – In accordance with the Charter, an independent audit of the
City accounts will be performed every year. The auditor is retained by and is
accountable directly to the City Council. The auditing firm will serve for up to 5
years, at which time, the City will re-bid these services and changing 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.
ASSET MANAGEMENT
A. Cash Management and Investments – The City Council has formally approved a
separate Investment Policy for the City of Georgetown that meets the requirements
of the Public Funds Investment Act (PFIA), Section 2256 of the Texas Local
Government Code. This policy is reviewed annually by the City Council and applies
to all financial assets held by the City and applies to all entities (component units)
included in the City’s Comprehensive Annual Financial Report (CAFR) and/or
managed by the City
1. Statement of Cash Management Philosophy - The City shall maintain a
comprehensive cash management program to include the effective collection of
all accounts receivable, the prompt deposit of receipts to the City’s depository,
the payment of obligations, and the prudent investment of idle funds in
accordance with this policy.
2. Objectives – The City’s investment program will be conducted as to accomplish
the following listed in priority order:
• Safety of the principal invested
• Liquidity and availability of cash to pay obligations when due
• Ensure public trust through responsible actions as custodians of public funds.
• Maximize earnings (yield) to the greatest extent possible consistent with the
City’s investment policy.
3. Safekeeping and Custody – Investments may only be purchased through
brokers/dealers who meet the criteria detailed in the investment policy, which
also addresses internal controls related to investments.
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Item # B
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4. Standard of Care and Reporting – Investment will be made with judgment and
care, always considering the safety of principal to be invested and the probable
income to be derived. The Chief Financial Officer is responsible for the overall
management of the City’s investment program and ensures all investments are
made in compliance with the investment policy. An investment report, providing
both summary and detailed information, will be presented to the City Council
quarterly.
5. Authorized Investments – The City can currently invest in the following:
• Certificates of Deposit
• U.S. Treasury and Agency securities
• Investment Pools that meet the requirements of the PFIA
• No-load Money Market Mutual Funds
• Fully collateralized Repurchase Agreements
• Obligations of Municipal Issuers in Texas rated not less than A or its
equivalent.
• Other investments as approved by City Council and not prohibited by law
B. Fixed Assets – These assets will be reasonably safeguarded and properly
accounted for, and prudently insured.
1. Capitalization Criteria - For purposes of budgeting and accounting classification,
the following criteria must be capitalized:
• The asset owned by the City.
• The expected useful life of the asset must be longer than one year, or extend
the life of an identifiable existing asset by more than one year.
• The original cost of the asset must be at least $5,000.
• The asset must be tangible.
• On-going repairs and general maintenance are not capitalized.
2. New Purchases – All costs associated with bringing the asset into working order
will be capitalized as part of the asset cost. This will include startup costs,
engineering or consultant type fees as part of the asset cost once the decision or
commitment to purchase the asset is made. The cost of land acquired should
include all related costs associated with its purchase.
3. Improvements and Replacement – Improvements will be capitalized when they
extend the original life of an asset or when they make the asset more valuable
than it was originally. The replacement of assets components will normally be
expensed unless they are a significant nature and meet all the capitalization
criteria.
4. Contributed Capital - Infrastructure assets received from developers or as a
result of annexation will be recorded as equity contributions when they are
received.
5. Distributions Systems - All costs associated with public domain assets, such as
streets and utility distribution lines will be capitalized in accordance with the
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capitalization policy. Costs should include engineering, construction and other
related costs including right of way acquisition.
6. Reporting and Inventory – The Finance Division will maintain the permanent
records of the City’s fixed assets, including description, cost, department of
responsibility, date of acquisition, depreciation and expected useful life.
Periodically, random sampling at the department level will be performed to
inventory fixed assets assigned to that department. Responsibility for
safeguarding the City’s fixed assets lies with the department supervisor or
manager whose department has been assigned the asset.
XII. DEBT MANAGEMENT
The City of Georgetown recognizes the primary purpose of capital facilities is to provide
services to the community. Using debt financing to meet the capital needs of the
community must be evaluated according to efficiency and equity. Efficiency must be
evaluated to determine the highest rate of return for a given investment of resources.
Equity is resolved by determining who should pay for the cost of capital improvements.
In meeting demand for additional services, the City will strive to balance the needs
between debt financing and “pay as you go” methods. The City realizes that failure to
meet the demands of growth may inhibit its continued economic viability, but also
realizes that too much debt may have detrimental effects on the City’s long-range
financial condition.
The City will issue debt only for the purpose of acquiring or constructing capital assets
for the general benefit of its citizens and to allow it to fulfill its various purposes as a city.
A Debt Condition Update report will be provided annually.
A. Usage of Debt - Long-term debt financing will be considered for non-continuous
capital improvements of which future citizens will be benefited. Alternatives for
financing will be explored prior to debt issuance and include, but not limited to:
• Grants
• Use of Reserve Funds
• Use of Current Revenues
• Contributions from developers and others
• Leases
• Impact Fees
When the City utilizes long-term financing, it will ensure that the debt is soundly
financed by conservatively projecting revenue sources that will be used to pay the
debt. It will not finance the improvement over a period greater than the useful life of
the improvement and it will determine that the cost benefit of the improvement,
including interest costs, is positive to the community.
The City may utilize the benefits of short-term debt financing to purchasing operating
equipment provided the debt doesn’t extend past the useful life of the asset and the
potential impact to the tax rate is within policy guidelines. The I & S (interest and
sinking) portion of the tax rate cannot exceed $0.04 for short-term debt (3-10 years).
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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 through it is routine in nature; or
• When the project falls outside the normal bounds of projects the City has
typically done.
For debt programs that include multiple projects that will be issued over multiple
years at the discretion of the City Council, the City 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;
Attachment number 1 \nPage 23 of 31
Item # B
24
• When the projects to be funded are within the normal bounds of city capital
requirements, such as for roads, parks, various infrastructure and City
facilities and equipment; and
• When the average life of the obligation does not exceed the useful life of the
asset(s) to be funded by the issue.
Certificates of obligation will be the least preferred method of financing and will
be used with prudent care and judgment by the City Council. Every effort will be
made to ensure public participation in decisions relating to debt financing.
4. Self-supporting General Obligation Debt – Refers to certificates of obligation
issued for a specific purpose and repaid through dedicated revenues other than
ad valorem taxes. The annual debt requirements are not included in the property
tax calculation. Both the Airport and Stormwater Drainage funds will issue this
type of debt, In addition, the Electric and Water Services Funds can utilize this
method of funding non-system capital assets. The City also issues debt on behalf
of the Georgetown Transportation Enhancement Corporation (GTEC) whom then
pledges 4B sales tax revenue for the repayment of that debt.
5. Internal borrowing between City funds – The City can authorize use of existing
long-term reserves as “loans” between funds. The borrowing fund will repay the
loan at a rate consistent with current market conditions. The loan will be repaid
within ten (10) years. The loan will be considered an investment of working
capital reserves by the lending fund.
6. Other Short-term borrowing - The City may authorize the issuance of Public
Property Finance Contractual Obligations (PPFCO) which is short-term
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.
B. Method of Sale – The City will use a competitive bidding process in the sale of
bonds unless conditions in the bond market or the nature of the issue warrant a
negotiated bid. In such situations, the City will publicly present the reasons for the
negotiated sale. The City will rely on the recommendation of the financial advisor in
the selection of the underwriter or direct purchaser. The financial advisor must meet
all licensing requirements and comply with all MSRB regulations. The City’s financial
advisor will not act as the underwriter on any City bond issue.
C. 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.
D. Federal Requirements – The City will maintain written procedures to follow post
issuance compliance rules, arbitrage rebate and other Federal requirements.
Attachment number 1 \nPage 24 of 31
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• 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.
E. 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.
F. Debt Coverage Ratio – Refers to the number of times the current combined debt
service requirements or payments would be covered by the current operating
revenues net of on-going operating expenses of the City’s combined utilities
(Electric, Water, and Wastewater). The City will maintain a minimum debt service
coverage ratio of 1.5 times for these utilities as a whole. The bond ordinances allow
the City to forego a debt reserve fund for its utility debt if the coverage is maintained
at 1.35 times or better. Debt coverage for 2014/15 2015/16 is budgeted at___
times coverage. A coverage ratio of 1.5 times will also be required for all funds
issuing self-supporting debt.
H. Bond Reimbursement Resolutions – The City may utilize bond reimbursements as
a tool to manage its debt issues, due to arbitrage requirements and project timing.
In so doing, the City uses its capital reserve "cash" to delay bond issues until such
time when issuance is favorable and beneficial to the City.
The City Council may authorize a bond reimbursement resolution for General Capital
projects that have a direct impact on the City's ad valorem tax rate when the bonds
will be issued within the term of the existing City Council. In the event of unexpected
circumstances that delay the timing of projects, or market conditions that prohibit
financially sound debt issuance, the approved project can be postponed and
considered by a future council until circumstantial issues can be resolved.
The City Council may also authorize revenue bond reimbursements for approved
utility and other self-supporting capital projects within legislative limits. Currently
revenue bonds must be issued within 18 months after an eligible bond funded project
is begun.
The total outstanding bond reimbursements may not exceed the total amount of the
City’s reserve funds.
XIII. OTHER FUNDING ALTERNATIVES:
When at all possible, the City will research alternative funding opportunities prior to
issuing debt or increasing user-related fees.
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A. Grants - All potential grants will be examined for any matching requirements and the
source of those requirements identified. A grant funding worksheet, reviewed by
Finance, that clearly identifies funding sources, outcomes and other relevant
information will be presented and approved by the City Council prior to any grant
application being submitted. It must be clearly understood that any resulting
operation requirements of the grant could be discontinued once the term and
conditions of the project have been terminated. The City Council must authorize
acceptance of any grant funding.
B. Use of Reserve Funds - The City may authorize the use of reserve funds to
potentially delay or eliminate a proposed bond issue. This may occur due to higher
than anticipated fund balances in prior years, thus eliminating or reducing the need
for debt proceeds, or postpone a bond issue until market conditions are more
beneficial or timing of the related capital improvements does not correspond with the
planned bond issue. Reserve funds used in this manner are replenished upon
issuance of the proposed debt.
C. Developer Contributions - The City will require developers who negatively impact
the City's utility capital plans offset those impacts. These policies are further defined
within the City's utility line extension policy and other development regulations.
D. Leases - The City may authorize the use of lease financing for certain operating
equipment when it is determined that the cost benefit of such an arrangement is
advantageous to the City.
E. Impact Fees - The City will impose impact fees as allowable under state law for both
water and wastewater services. These fees will be calculated in accordance with
statute and reviewed at least every three years. All fees collected will fund projects
identified within the Fee study and as required by state laws.
XIV. FINANCIAL CONDITIONS, RESERVES, AND STABILITY RATIOS
The City of Georgetown will maintain budgeted minimum reserves in the ending working
capital/fund balances to provide a secure, healthy financial base for the City in the event
of a natural disaster or other emergency, allow stability of City operations should
revenues fall short of budgeted projections and provide available resources to implement
budgeted expenditures without regard to actual timing of cash flows into the City.
A. Operational Coverage – The City’s goal is to maintain operations coverage of 1.0
(one), such that operating revenues will at least equal or exceed current operating
expenditures. Deferrals, short-term loans, or one-time sources will be avoided as
budget balancing techniques. Reserves will be used only for emergencies or non-
recurring expenditures, except when balances can be reduced because their levels
exceed guideline minimums as stated below.
1. Operating Reserves – The City will maintain reserves at a minimum of seventy-
five (75) days (20.83%) of net budgeted operating expenditures. Net budgeted
operating expenditure is defined as total budgeted expenditures less interfund
transfers and charges, general debt service (tax supported), direct cost for
purchased power and payments from third party grant monies. Total reserves for
2014/15 2015/16 are $ ____million. The amount of these funds are allocated
within the following operating funds and using the following guidelines to maintain
Attachment number 1 \nPage 26 of 31
Item # B
27
the fund balance, working capital and retained earnings (reserves) of the various
operating funds at levels sufficient to protect the City’s creditworthiness, as well
as, its financial position from unforeseeable emergencies.
2. General Fund – The fund balance reserve in the General Fund should equal
ninety (90) days or 25% of annual budgeted General Fund operating
expenditures. 2014/15 2015/16 reserves are $ ____ million and are allocated as
follows:
a. Base Level Reserve – will equal sixty (60) days of current year budgeted
operating expenditures which will be designated for emergency use only.
b. Budget Stabilization Reserve – will equal thirty (30) days of current year
budgeted operating expenditures and will be designated to protect the City
against short term operating deficits. The funds will be available for the
following purposes:
i. Defer short term tax increases
ii. Cover revenue shortfalls
iii. Fund unanticipated expenditures
If the Budget Stabilization Reserve is depleted during the fiscal year, the
balance must return to the 30 day requirement within the following year’s
adopted budget.
3. Tourism Fund – A minimum sixty days (60) or 16.67% of operating expenditures
will be reserved within the fund balance. These funds are designated to be used
to offset any potential revenue shortfall that occurs during the fiscal year and
should be replenished in the following fiscal year’s budget.
4. Water Services Fund – Working capital reserves in should be 25% or ninety (90)
days of operating expenses, net debt service and long-term water contract costs.
These reserves are designated to be used to offset potential revenue shortfalls or
fund unexpected or emergency expenses that occur during the fiscal year.
These reserves should be replenished in the following budget cycle.
5. Stormwater Drainage Fund Other Funds – $250,000 for unforeseen emergencies
or other potential revenue shortfalls.
• Stormwater Drainage Fund - $ 250,000 for unforeseen emergencies or
potential revenue shortfalls
• Airport Fund – As funds are available, up to ninety (45) days or 0.125% of
operating expenses (less fuel costs) for unforeseen emergencies or
potential revenue shortfalls
6. Electric Fund – The remaining balance to meet the citywide requirement of
seventy-five (75) days of reserve funds will be maintained within this fund. It can
be used for unforeseen emergencies and expenditures. The Rate Stabilization
Account and the Power Contract Credit Reserve are not included in this
Contingency Reserve.
Attachment number 1 \nPage 27 of 31
Item # B
28
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 !V L. 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 30 days of service. Receivables aging past 90 days will be sent to
a collection agency. The Chief Financial Officer is authorized to write-off non-
collectible, non-utility accounts that are delinquent for more than 180 days, and utility
accounts delinquent more than 180 days, provided proper delinquency procedures
have been followed, and include this information in the annual report to the City
Council.
C. Capital Project Funds – Every effort will be made for all monies within the Capital
Project Funds to be expended in a timely manner preferably within thirty-six (36)
months of receipt. The fund balance will be invested and income generated will
offset increases in construction costs or other costs associated with the project.
Capital project funds are intended to be expended totally, with any unexpected
excess to be transferred to the Debt Service fund to service project-related debt
service.
D. General Debt Service Funds – Revenues within this fund are stable, based on
property tax revenues. Balances are maintained to meet contingencies and to make
certain that the next year’s debt service payments may be met in a timely manner.
Fund balance should not fall below 45 days annual debt service requirements, in
accordance with IRS guidelines.
E. Investment of Reserve Funds – The reserve funds will be invested in accordance
with the City’s investment policy. Existing non-cash investment would be exempt
through retirement of the investment.
Attachment number 1 \nPage 28 of 31
Item # B
29
F. Ratios/Trend Analysis - Ratios and significant balances will be incorporated into
both the mid-year and annual reports to the City Council. This information will
provide users with meaningful data to identify major trends of the City's financial
condition through analytical procedures. The following ratios/balances will be used
as key financial indicators:
• Fund Balance/Equity: Assets - liabilities
FB/E AL (Acceptable level) minimum reserve
requirement
• Working Capital: Current assets less current liabilities
CA - CL AL minimum reserve requirement
• Current Ratio: Current assets divided by current liabilities
CA/CL AL > 1.00
• Quick Ratio: "Liquid" current assets divided by current
liabilities
Liquid CA/CL AL > 1.00
• Debt/Assessed AV Taxes Debt divided by assessed Ad Valorem value
D/AV AL < 5
• Debt Ratio: Current liabilities plus long-term liabilities
divided by total assets
CL +LTL/TA AL < 1
• Enterprise Oper Coverage: Operating rev divided by operating expense
OR/OE AL > 1.25
• Times Coverage Ratio: Operating revenue less operating expense
divided by annual debt service
(OR-OE)/DSV AL > 1.5
The City will be to develop minimum/maximum levels for the above ratios/balances
through analyzing of City historical trends and future projections. These ratios will
also be compared to other similar or regional municipalities for further analysis.
Attachment number 1 \nPage 29 of 31
Item # B
30
XV. INTERNAL CONTROLS
A. Written Procedures – Wherever possible, written procedures will be established
and maintained by the Chief Financial Officer for all functions involving cash handling
and/or accounting throughout the City. These procedures will embrace the general
concepts of fiscal responsibility set forth in this policy statement.
B. Internal Audit Program - An internal audit program will be maintained by the Chief
Financial Officer to ensure compliance with City policies and procedures and to
prevent the potential for fraud.
1. Departmental Audits – departmental processes will be reviewed to ensure dual
control of City assets and identify the opportunity for fraud potential, as well as, to
ensure that departmental internal procedures are documented and updated as
needed.
2. Employees or Transaction Review - Programs- Programs to be audited include
Petty Cash, City Credit Card accounts, time entry, and travel. All discrepancies
will be identified, and the employee’s Division Director will be notified. The City
Manager will also be notified depending on the seriousness of the infraction.
3. Results of all internal audits will be provided to City Council on a quarterly basis.
C. Division Directors Responsibility – Each division Director is responsible for
ensuring that good internal controls are followed throughout their department, that all
Finance Division directives are implemented and that all independent auditor internal
control recommendations are addressed. Departments will develop and periodically
update written internal control procedures.
XVI. STAFFING AND COMPENSATION
Realizing the importance and contribution of employee’s in achieving and maintaining
the City of Excellence, the City’s goal as an employer is to attract and retain quality
employees who provide excellent, friendly services to our community in an effective and
efficient manner.
A. Adequate Staffing – Staffing levels will be adequate for the fiscal functions of the
City to operate effectively. Workload allocation alternatives will be explored before
adding additional staff.
B. Competitive Compensation – In order to maintain a competitive pay scale, the City
is implementing a Competitive Employee Compensation Maintenance Policy to
address competitive market factors and other issues impacting compensation. The
program consists of:
1. Cost of Living Adjustment - (COLA) – To protect City employees from the
effects of general inflation, every odd numbered year, the City may fund a COLA
adjustment for all regular employees not included in a defined pay plan. The
COLA will be based on a three-year rolling average of the Consumer Price
Index (CPI) reported by the U.S. Bureau of Labor Statistics for Southern cities
pertinent to Georgetown’s population.
Attachment number 1 \nPage 30 of 31
Item # B
31
2. Pay Scale Review – To ensure the City’s pay system is accurate and
competitive within the market, every even numbered year, the City will review its
pay plan for any potential market adjustments necessary to maintain the City’s
pay scale.
3. Pay for Performance – Each year the City will fund pay adjustments to aid in
retaining quality employees while recognizing increased job experience and
rewarding quality performance.
Adjustments are based on the previous year’s annual performance evaluation. The
percentage adjustments are determined by the employee’s position within their pay
grade, including merit adjustments for productivity and quality performance during
the previous fiscal year.
In addition, the City may also choose to fund a one-time on performance that
exceeds expectations during the review period.
C. Self-Insurance Program – The City is committed to providing quality healthcare
insurance that offers the most flexibility in health benefits and options to its
employees. In order to provide the most cost effective solution, the City has
determined that establishing a self-funded health insurance plan offers the greatest
opportunity to mitigate future cost increases while offering quality health care
services to its employees. The City has established a mechanism to manage the
accounts and payments associated with this program. Per GASB Statement No. 66,
such funding should be accounted for as a Special Revenue an Internal Service
Fund (SRFISF).
1. Employee Health Insurance SRF ISF- includes premium contributions from
employees and budgeted health insurance contributions included in the City’s
annual budget process.
Self-Insurance Reserves – Over time, all excess premiums or other savings within the
Employee Health Insurance SRF ISF will accumulate and be used for employee
premium rate stabilization. Until such balances occur, the City has established an
internal line of credit up to $1,000,000 to be used for liquidity and operations if needed to
be paid from the City’s Contingency Reserve funds.
Self-Insurance Reserve will be included and maintained within the Employee
Self-Insurance Internal Service Fund to provide stabilization for employee health
insurance premiums. The amount of the reserve will be determined by the
actuarially determined “maximum” amount risk related to the potential claims to
the plan in one year. Initially, the reserve is targeted to be $1,000,000 by fiscal
year 2017/18.
2. Employee Premiums – Annual premiums will be recommended to City Council
through a collaborative process between the City’s Employee Benefit Committee
and external consultants using historical data and other analytic analysis.
Attachment number 1 \nPage 31 of 31
Item # B
4/8/2015
1
FY2016 Annual Budget
FISCAL & BUDGETARY
POLICY OVERVIEW
2015 Policy Discussion
April 14, 2015
FY2016 Annual Budget
BUDGET PROCESS
DEBT
OVERVIEW
FOCUS AREA:
SIGNATURE
DEST. & CIP
FIVE YEAR PLAN
UPDATE
COMPENSATION,
BENEFITS, &
SELF INSURANCE
FOCUS AREA:
UTILITY & CIP
BUDGET
PARKING LOT
FOCUS AREA:
TRANSPORTATION
& CIP
FOCUS AREA:
CROSSCUTTING
THEMES
ANNUAL
BUDGET
PRESENTATION
FOCUS AREA:
ECONOMIC
DEVELOPMENT
& CIP
BUDGET
PUBLIC
HEARINGS
FOCUS AREA:
PUBLIC SAFETY
GENERAL
CAPITAL
PROJECTS
BUDGET
ADOPTION
FISCAL & BUDGETARY
POLICY
Attachment number 2 \nPage 1 of 11
Item # B
4/8/2015
2
FY2016 Annual Budget
AGENDA
•Historical Overview
•Policy “Compliance”
•Overview & Summary of Policy Areas
•Areas for potential amendments for FY2016
FY2016 Annual Budget
HISTORICAL OVERVIEW
•Fiscal and Budgetary Policy adopted 2001/02
•Updated & revised all financial policies/practices
•Based on recommended “BEST PRACTICES” by Government Finance
Officers Association (GFOA)
•Included plan to eliminate “WTTB”
•Up to 33% of General Fund operations funded by transfer from
Utility Funds
•“Scenario H” – fully implemented in 2003/04
•Review & update annually as part of the budget process
Attachment number 2 \nPage 2 of 11
Item # B
4/8/2015
3
FY2016 Annual Budget
POLICY COMPLIANCE
SUSTAINABLE FUNDING SOURCES
MUST FUND ON‐GOING EXPENSES
Excess balances from previous fiscal years shall be reappropriated
through the next budget process or used to reduce outstanding
debt obligations or both.
FY2016 Annual Budget
POLICY COMPLIANCE (CONT ’D)
Requires 1.5 times coverage ratio for all
funds with debt service requirements
•Excess operating revenue net of operating expenses must
exceed annual debt payment by 150% of debt payment
•Utility funds required by bond covenants
•Applies to GO debt repaid through self‐supporting fees
•GTEC, Stormwater & Airport Funds
•Electric & Water Services Funds
Attachment number 2 \nPage 3 of 11
Item # B
4/8/2015
4
FY2016 Annual Budget
POLICY PURPOSE
•Provides “Fiscal Discipline”
•Achieve and maintain long‐term stable and positive financial
condition
•Provide guidelines for day‐to‐day planning and operations of
City’s financial management
•Also applies to both GTEC & GEDCO
FY2016 Annual Budget
OUTLINES OPERATING BUDGET
•Links to City’s comprehensive plan and 5 Focus Areas
•Formalizes budget preparation and adoption
•Defines “Balanced Budget”
•Requires quarterly reports to Council
•Assigns control and accountability of funds
•Addresses various Contingency funds
Attachment number 2 \nPage 4 of 11
Item # B
4/8/2015
5
FY2016 Annual Budget
UNANTICIPATED & UNAPPROPRIATED
•Use of Unanticipated & Unappropriated General Fund Balances
•After FYE, excess balances identified & Council directs use…
•to fund capital projects
•to fund equipment in lieu of issuing debt
•to reduce outstanding city debt, including pension liabilities
•to fund other contingent liabilities
•to take further steps to mitigate property taxes
•to hold in reserve for future or pending contingencies
•to fund an economic uncertainty reserve
FY2016 Annual Budget
REVENUE MANAGEMENT
•Defines “sustainable” revenue
•Revenue that is consistently available year‐to‐year
•Budgets Property Tax at effective M&O rate + needed I&S rate
•Budgeted increases only relate to debt service
•M&O increases determined by Council
•Utility Rates reviewed annually
•Detail regarding “COST OF SERVICE” methodology for setting utility rates
Attachment number 2 \nPage 5 of 11
Item # B
4/8/2015
6
FY2016 Annual Budget
INTERNAL COST RECOVERY
•Administrative allocations reviewed annually by external auditors
•Recognize “true cost of service” at departmental level
•Determines “Return on Investment” and “Franchise Fee” from
utility funds to General Fund as ownership dividend
•Based as % of operating revenues for Water, Wastewater, and
Stormwater Drainange customers
•Based on equivalent kWh for Electric customers
•Equates to 10% operating revenues and is included in the rate
methodology
FY2016 Annual Budget
EXPENDITURE POLICIES
•Authorizes point of control for appropriations at the
departmental level
•City Manager approves transfers between department within the same
fund
•Transfers between funds require Council authorization
•Budgets personnel costs at 100%
•Includes Vacancy Factor = 1% total General Fund salaries
•Personnel count determined in budget
•Strategic Partnerships for Community Services – funding level set
at $5.00 per capita
•Retirement plan management included
Attachment number 2 \nPage 6 of 11
Item # B
4/8/2015
7
FY2016 Annual Budget
PURCHASING POLICY‐FOLLOWS STATE LAW
•All purchases must be approved according to preapproved
limits within each department
•As directed and approved by the City Manager
Dollar Limits: Procurements: Requirements:
Under $3,000 Under the small
purchase limit
No competitive bids and City credit cards may
be used.
$3,000 up to $50,000 Within informal bid limit A minimum of three informal competitive bids
required unless exempted: HUB requirements
apply in accordance with state law.
$50,000 and above In excess of the informal
bid limit
Formal solicitations, which includes public
notices, required unless exempted. Advisory
board review and recommendation may be
required. Council approval required.
FY2016 Annual Budget
BUDGET CONTINGENCY PLAN
•Establishes guidelines for managing revenue shortfalls
•Immediate actions include freezing hiring of new positions
•Delay all “non‐essential” spending
•City Manager reports conditions to Council
•Determines use of “Contingency Reserves”
•Outlines replenishment if used
•Service level reductions addressed by Council including workforce
reductions
Attachment number 2 \nPage 7 of 11
Item # B
4/8/2015
8
FY2016 Annual Budget
CAPITAL IMPROVEMENT PROGRAM
•Prepare / update 5‐year CIP schedule
•Includes estimated operational impacts
•Requires various Advisory Board approvals prior to Council adoption
•Projects must be appropriated within CIP Budget
•Funding must be identified prior to CIP contract approval
•Requires all CIP contracts > than $50,000 to be approved by the
appropriate Advisory Board
FY2016 Annual Budget
CAPITAL MAINTENANCE
•Acknowledges deferred maintenance increases future capital
costs
•Includes PMIS standards for street maintenance for GASB 34
Modified Approach
•Directs that on‐going capital maintenance is included in
departmental operating budget
•Sets up Internal Service Funds to “lease” equipment back to
departments
•Require City Council approval for disposal of Surplus Property
items with expected sales value in excess of $10,000
Attachment number 2 \nPage 8 of 11
Item # B
4/8/2015
9
FY2016 Annual Budget
FINANCIAL MANAGEMENT
•Accounting & Financial Reporting
•Recognizes role of External Auditor to annually audit all City accounts
•Requires preparation of the Comprehensive Annual Financial Report
(CAFR)
•Investment Policy
•Reviewed annually and conforms to all legal requirements
•“Public Funds Investment Act”
•Requires quarterly reports to City Council
•Establishes Internal Control process
•Fixed Assets
•Sets capitalization criteria at $5,000
FY2016 Annual Budget
DEBT MANAGEMENT
•Requires annual debt condition report
•Outlines use of debt funding to include:
•General Obligation Bonds
•Revenue Bonds
•Certificates of Obligation
•Self‐supporting debt
•Internal borrowings
•Other short‐term borrowing
•Method of sale and debt structuring
•Requires post issuance compliance
•Outlines use of “Bond Reimbursement Resolutions” for cash
management
Attachment number 2 \nPage 9 of 11
Item # B
4/8/2015
10
FY2016 Annual Budget
FINANCIAL CONDITIONS, RESERVES &
STABILITY RATIOS
•City will maintain a 1‐to‐1 operating coverage
•Requires minimum 75 days citywide operating “contingency”
reserves
•Allocated across City funds
•Includes General Fund reserves that equals 90 days of GF
operating expenditures
•Designates specific financial indicators to track for trend
analysis
FY2016 Annual Budget
STAFFING AND COMPENSATION
•Commitment to provide adequate staffing for efficient
operations
•Establishes Competitive Employee Compensation Maintenance
Plan that includes:
•Cost of Living Adjustment (COLA)
•Pay Scale Review
•Pay for Performance
•Establishes City’s Employee Health Self‐Insurance Fund to
manage employee health care
Attachment number 2 \nPage 10 of 11
Item # B
4/8/2015
11
FY2016 Annual Budget
FY2016 PROPOSED REVISIONS
•Codify utility cost of service rate methodology
•Designate “Internal Cost Recovery Fees”
•Add “Long‐term Liabilities” section
•Relocate “reserve” language to this section
•Add Cemetery Reserve & Non‐ISF Capital Maintenance Reserve
•Change wording to be compliant with “Red Flag Rules”
regarding aged receivables
•Management of customer account information
•Any other recommendations are directed
Attachment number 2 \nPage 11 of 11
Item # B
City of Georgetown, Texas
City Council Agenda
April 14, 2015
SUBJECT:
Council Compensation Committee Report -- Patty Eason, Councilmember District 1 and Jerry Hammerlun,
Councilmember District 5
ITEM SUMMARY:
Please see attached for a Final Report and supporting documentation from the 2015 Council Compensation
Committee.
FINANCIAL IMPACT:
To be determined.
SUBMITTED BY:
Jessica Brettle, City Secretary
ATTACHMENTS:
2015 Council Compensation Committee Report
February 23, 2015 Council Compensation Committee Meeting Minutes
March 2, 2015 Council Compensation Committee Meeting Minutes
March 23, 2015 Council Compensation Committee Meeting Minutes
Memo- Pay Per Meeting Option
Cover Memo
Item # C
Council Compensation Report to the Georgetown Mayor and City Council
April 2015
The Council Compensation Committee was appointed by Mayor Ross and charged (Section 2.15 Home
Rule Charter) with:
1. Reviewing the salaries of the Mayor and Council members.
2. Making a recommendation regarding those salaries.
The committee is composed of Patty Eason and Jerry Hammerlun serving as Co-Chairs and Tom Swift,
David Giese, Steve Johnston, Kathy Krause and Ki Browning.
The Council Compensation Committee held three meetings (Minutes attached). The focus of those
meetings was:
• February 23, 2015 – Reviewed the history of compensation for the Mayor and Council in
Georgetown in the last ten years with a focus on the Compensation Committee
recommendations since April 2010 and examined comparative compensation data for other
cities in the area. There was substantial discussion on the reality of the typical commitment
needed to serve on the Georgetown City Council and as Mayor. Committee members shared
diverse opinions on balancing the reality of the commitment with the concept of public service
and the thought that people should serve based on a sense of responsibility to the community.
The discussion to end the first meeting focused on the need for Georgetown to continue at
attract qualified, committed, passionate people to serve who represent all sectors of our diverse
community.
• March 2, 2015 – The committee members shared their thoughts and reflections on the
information that had been shared at the February 23rd meeting. There was considerable
discussion of the “cost” of serving and the various personal expenses incurred in the
performance of Mayor/Council duties and the feasibility of utilizing an expense report to
document those costs. Consensus of the group was that an expenses report approach would be
unwieldy and unnecessary. Committee members were very interested in a compensation
approach used in Garland that is a combination of a base rate plus an additional amount for
specific meetings attended. The City Secretary and the Committee Co-Chairs agreed to develop
a list of meetings that would be considered for reimbursement if Georgetown were to follow a
Garland-type approach.
• March 23, 2015 – The City Secretary shared a report that included significant data on the topic
of a “per-meeting” reimbursement program and the challenges connected with such an
approach. (Copy of report attached) The key challenge of this approach was the approval of
which meetings/activities would be reimbursed and the administrative reality of the process.
After discussion of the challenges connected with such an approach the Committee decided to
focus on a lump sum amount approach and the Committee members offered their thoughts on
what that amount should be. Amounts suggested by the Committee ranged from nothing
($0.00) to $1,500 for Council members and $2,500 for the Mayor. After much discussion the
Committee approved (6-1) recommending compensation of a lump sum amount of $800 for
Council members and $1,100 for the Mayor.
Attachment number 1 \nPage 1 of 2
Item # C
As Co-Chairs of the Committee we appreciate the thoughtful and thorough work of the Committee
members and the City Secretary. Attracting fully committed and passionate people to run for the
Georgetown City Council is critical to the future success of this community. The entire Committee
appreciated the opportunity to serve the City of Georgetown. Most of all we appreciate the current
Mayor and Council members for their commitment to Georgetown.
Compensation Committee
Co-Charis:
Patty Eason
Jerry Hammerlun
Attachment number 1 \nPage 2 of 2
Item # C
Notice of Meeting of the
Council Compensation Committee
of the City of Georgetown, Texas
Monday, February 23, 2015
The Georgetown City Council will meet on Monday, February 23, 2015 at 3:00 PM at the Main Floor Conference
Room of City Hall, located at 113 E. 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 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
- Eason called the meeting to order at 3PM. All members were present except for Krause. All members
introduced themselves to each other.
Eason said it is important to have people at every level be able to represent their community on the Council,
especially minorities.
B Review of current compensation and reimbursement for the City Council
Hammerlun reviewed the history of the compensation for Council. He reviewed the typical life of a Council
member. He spoke about the Council meeting and said that, on Tuesdays, Workshop and Council. He said at
5PM the Council moves to Executive Session with dinner until 6PM. He said a typical Council meeting is about
6 hours and it takes about the same amount of time to prepare for a Council meeting. He said Georgetown has its
only electrical utility, planning business, zoning, etc. He said the diversity that is necessary…no way to properly
participate without 5 or 6 hours. He said Council members are also on two boards and commissions, which can
also be 2-4 hours long. He said, for him, it is about a 50-60 hour a month commitment. He said a normal day is
about five to six emails from consitutents…significant issues come up that necessitate more in depth research.
He said, in addition to that, there are Council members that serve on regional boards representing Georgetown.
Hammlerun said he is not running again because he cannot afford to run. Eason spoke about how Hammerlun
has had to go above and beyond on a project such as the Public Safety Facility on a combination of legal and
construction issues. Swift asked if the above and beyond is typical of most Council members. Eason and
Hammerlun both said it is very typical. Swift said it is…Hammerlun gave another example of Council being in
talks with the County….two colleagues were told they need to participate in a subcommittee to work with the
County on this issue. Eason spoke about how the GGAF Board started….she said it grew so that it became a
whole new board. He spoke about how the month of July and August being much more busy. Eason said it is
certainly something you had to make arrangements for in your life. They mentioned events that occur throughout
the community that they have to attend.
Eason spoke about her history on the Council and the history of Council compensation. Listen to her discussion
here. Hammerlun said the Council needs to have…Eason said the reason she does not support the idea of an
expense listing…her hourly rate was not something she could put down on paper. She said all of the men who
were working could put down the hourly rate. Hammerlun said he is not in favor at all of the expense
reimbursement form. Hammerlun and Eason both think it is not a good idea to do back to this. Johnston said,
when he was on the Council, it was a full time job. He said they received zero compensation at the time. He
said he find this interesting. He said he knew the Council got compensated but did not know….single member
and then at large. He said he does not have a clear opinion yet. He said he does not mean that negatively. He
said, since he was not compensated. Giese said this would be about 25% of a full time job. Eason said a lot of
people she knows can not commit to this service because they cannot afford to do it. Hammerlun spoke
Attachment number 2 \nPage 1 of 2
Item # C
about….Jonrowe has expenses that has to be dealt wth…Hammerlun said his reasons are not compensation, but
travel. Hammerlun said the rubber meets the road if doubling the amount would encourage more people.
Johnston said you don’t want Council members to use that as an incentive as well. Eason said for some people
the cost of gas…do not have the city’s resources. Swift spoke about volunteering time…you don’t have to lose
money. Eason said she does not agree with that because, even if they come up with an amount, it will never
reimburse people for their time. There was an agreement that there be a monthly stipend with no expense option.
Hammerlun said the key is that we have to have quality people to serve. Eason said it has taken her 12 years to
find someone to run…Hammerlun said it should continue to be the goal . Swift said if the City is preventing
osomeone who is brilliant but needs to eat,.. Hammerlun said…we have them in a lot of positions but not all of
them. Swift said he offers it only as a position to think…diversity and how we really get it. He said, if the city
really wants it, that it’s not just lip service. He said, if we are clear on that, is what we are doing here a step
toward that objective. She said there is definitely a political aspect of this…
Spoke about the spreadsheet of….she looked at
Geise asked and Hammerlun said that the Mayor has to attend a lot of event. He said, by Charter, he is the
designated representative. Mayor attended 11 events in January...
C Discussion and possible recommendation regarding changes to the City Council’s compensation and
reimbursement
D Set next meeting of the committee
ADJOURNED- Mion by Hammerlun, second Giege to approve. Approved 7-0 AT 4:28PM
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 ____________, 2014, at _________, and remained so posted for at least 72 hours preceding the scheduled
time of said meeting.
______________________________________
Jessica Brettle, City Secretary
Attachment number 2 \nPage 2 of 2
Item # C
Minutes of the Meeting of the
Council Compensation Committee
of the City of Georgetown, Texas
Monday, March 2, 2015
The Georgetown Council Compensation Committee will meet on Monday, March 2, 2015 at 3:00 PM at the Main
Floor Conference Room of City Hall, located at 113 E. 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 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 –
Hammerlun called the meeting of the committee to order at 3:00PM. All committee members were present.
B Consideration and possible action to approve the minutes of the February 23, 2015 Council Compensation
Committee Meeting
Motion by Johnston, second by Giese to approve the minutes. Approved 7-0
C Discussion and possible recommendation regarding changes to the City Council’s compensation and
reimbursement
Hammerlun spoke about what was discussed at the last meeting of the committee. He suggested that each
member share their thoughts on the compensation for the Mayor and Council since the last discussion.
Giese said he appreciated the benchmark data of the cities around the area. He said he repackaged some of the
data and put it in a comparison mode. He summarized his thoughts and said he sees that Georgetown is
competitive. He asked about the difference in Round Rock and why they would get paid so much more. Eason
said she would bet that Round Rock didn’t have this kind of committee structure in place to determine
compensation. Giese spoke about the complexity of the Georgetown community and how that would relate to
suitable compensation for the Mayor and Council. He also spoke about the population factor. He said it seems
Georgetown is currently in the middle of the pay range. Johnston said Giese’s comments were well said and it
seems this is a ballpark type of thing. He said there does not seem to be a standard or rules for this type of
situation. Johnston said he called the City of Garland and said Mayor and Council gets paid an amount per month
plus $50 per work session. Swift asked and Johnston said when he served on Council the pay was zero. He said,
because he came from a background where there was no compensation, he is not used to this. Swift said he feels
the pay is ridiculously low. He did some calculations of how much it would work out to be per hour to serve on
the Council. He said the other cities are wrong as well if they are not addressing the time their members spend
serving. He said he feels like, if the city is not going to compensate, it certainly needs to do something about the
expenses. He said the expense report option seems unwieldy and unnecessary. He said expense should be taken
into account but not necessarily treated as a separate issue. He said at $400, the current compensation is
insufficient. He said an increase in pay would be appropriate but he is not sure how much more. Browning
agreed and said not a lot of people are going to consider serving at $6 an hour, 60 hours a month as an
appropriate level of compensation. She said Georgetown is going to potentially double in size and there needs to
be better people serving on the Council. She said that amount is not going to be enough. She added she thinks
there needs to be an increase, but does now know what that amount should be. Hammerlun said he would like to
look at the annual budgets of the cities on the benchmark data provided to the committee.He noted, for him the
electric utility is a significant reason why the city is different. He said the operation of the airport has become
extremely significant as well. He spoke about the merger with CTSUD and said water is a huge issue and needs
to be managed and understood and dealt with on a regional basis. He said, because of Council and staff, the City
Attachment number 3 \nPage 1 of 2
Item # C
is responsible for the largest water system in the state of Texas. He said population is a good point but, no matter
what, the issues are the same. He said, for him, some upward adjustment is necessary. Eason mentioned the
Council is also in the process of hiring the new City Manager. Hammerlun said the Council manages four
positions, does the interviews and hires and fires those positions. Hammerlun asked and Eason restated her
diversity concerns. She said the reason she would like to see some additional monetary compensation is that
when people do not receive compensation, it limits the resources if a person is not of a certain income level.
Eason spoke about travel and how it takes up a lot of time. She noted Jonrowe is highly connected to her
constituents and travels to Austin for meetings. She said, being a stay at home mom, she has to worry about who
will take care of her kids while she is gone. She continued to speak about why it is important to try to attract
diversity on the City Council. There was some discussion about when public meetings are held during the day
and in the evenings throughout the week. Hammerlun spoke about social media and how all Council members
receive many emails from constituents and staff. Giese spoke about the role and how it is a public service role.
He said the city wants to attract and retain talent. He noted he does not think council members should bear
expenses themselves. He said he thinks it should be paid for to travel to San Marcos or other board meetings. He
noted bearing expenses is appropriate. He spoke about the expense reports that were used in the past and noted
this is where he got stuck. He said the question is how much to pay each member to cover the expenses. He said,
to him, the expense reports are still an option. Eason spoke about why she did not participate in the expense
report system and why she does not like that option. Hammerlun spoke about the various expenses that arise
when preparing for a meeting and said he like the “pay per meeting” approach that Johnston mentioned. Johnston
suggested that the Mayor receive $550 per month plus $50 per meeting and the Council should receive $450 per
month and $50 per meeting. He said the important issue is to clarify what would be an “official meeting” in this
instance. Hammerlun said he likes Johnston’s recommendation. Swift said he likes the idea in principle and said
they also need to address the cost of attending meetings outside of the city. There was discussion about paying a
higher rate for meetings that are held outside of the city. Hammerlun also spoke about paying the Mayor for
attending events in his official capacity. He said one idea would to differentiate the base amount to cover the
attendance at those events. Giese said where he struggled is to determine whether the base amount is appropriate
when looking at the comparison to other cities. He spoke about why he still likes the idea of expense reports.
Johnston said there is also a political consideration and most people are unaware that the Mayor and Council get
paid at all. He spoke about how serving as the Mayor or a City Council member is a public service. There was a
lot of discussion of the pros and cons of expense reports. There was also discussion about the “paying per
meeting” option and how that would work. Swift spoke about paying the Mayor for attending required events
and creating a two-tier payment for in-city and out-of-city meetings. Eason said, when the Mayor cannot attend
something, he has to delegate it to the Mayor Pro Tem. Eason said she would like to hear from staff on how this
would get reported and tracked. Brettle spoke about how staff does take attendance and how this would be
tracked. Brettle spoke about her concern with determining what would be a “meeting.” Johnston spoke about
what types of meetings would qualify for reimbursement. Hammerlun asked if Brettle could prepare a list of
meetings for the committee to consider. He said the committee could have one more meeting to see how this
proposal would function. Brettle spoke about how staff would feel much better with a solid list of meetings so
there is no room for interpretation. Eason said she would like to look at an example of how this would work.
D Set next meeting of the committee
The committee determined that the next meeting will be held on Monday, March 23, 2015 at 3PM in the Main
Floor Conference Room of Georgetown City Hall.
Adjournment –
Motion by Swift, second by Johnston to adjourn. Approved 7-0
Meeting adjourned at 4:08PM
Attachment number 3 \nPage 2 of 2
Item # C
Minutes of the Council Compensation Committee
of the City of Georgetown, Texas
Monday, March 23, 2015
The Georgetown Council Compensation Committee will meet on Monday, March 23, 2015 at 3:00 PM at the Main
Floor Conference Room of City Hall, located at 113 E. 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 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
Hammerlun called the meeting to order at 3PM. All members were present.
B Consideration and possible action to approve the minutes of the March 2, 2015 Council Compensation
Committee Meeting
Motion by Johnston, second by Giese to approve the minutes. Approved 7-0
C Discussion and possible recommendation regarding changes to the City Council’s compensation and
reimbursement
Hammerlun summarized the information that was provided to the committee. He showed the group a copy of his
calendar for the month of March, which was a common month but a little heavier than usual in terms of City
Council related commitments. He also handed out to the committee an example of the types of email requests
each Council member may receive throughout their time on the Council. He said this is a good example of what
it is like to be a Council member. He added every month is not consistent. He noted it points out that it will be
very challenging for them to prepare an Ordinance and determine which meetings will be compensated and
which will not be compensated. He indicated that the co-chairs are leaning in the direction of maintaining some
sort of lump sum amount per month instead of paying the Mayor and Council per meeting attended.
Eason spoke about how she met with Brettle and came up with examples of what the city would pay each
Council member and the Mayor if the city moved forward with the “paying per meeting” concept. She said,
using that method, they are creating a politically charged process. She noted, after looking at the examples, it
seems there is a standard amount to pay each member. Eason spoke about how Hammerlun included his
meetings with City Manager candidates on his list of official meetings and she did not. She said that is a good
example of how this method would cause confusion. She noted she is in favor of the lump sum idea and said it is
the most equitable way of handling the compensation for Mayor and Council.
Giese asked and both Hammerlun and Eason said their estimate of expenses would be over $1,000 a month.
Giese said he has concern that if we do not show great commitment, the Council will not have members who
work full time as well as serve on the Council. He said the City needs diversity on the Council. There was much
discussion about how involvement in events and meetings can vary greatly depending on the Council member
and his or her schedule. Swift said it should not cost a Council member to be a representative. He said he is
concerned that the Mayor and Council members are being expected to spend their own money to do this service
for the city. Swift said the committee ought to be thinking more toward $2,500 for the Mayor and $1,500 per
Council member. He said the data from the other towns should not serve as much guidance for Georgetown.
Giese said there are two things to be debated, the methodology and the dollar amount. Giese suggested that the
committee decide on the methodology first. Hammerlun and Eason said they both think lump sum is the best
idea. The entire committee was in agreement that the compensation should be paid in a lump sum.
Attachment number 4 \nPage 1 of 2
Item # C
Motion by Swift, second by Krause to approve the method of compensating the Mayor and Council with a lump
sum amount per month. Approved 6-1 (Giese opposed)
There was much discussion about the amount for the monthly lump sum. Hammerlun said he estimates he would
spend between $800 and $1,000 a month on City Council related costs. Swift spoke about how he wants to make
sure no one is spending their own money to serve. He said, in his opinion, $1,500 a month should be the starting
point. Eason addressed the issue of expenses and said a person with a business and an office versus a mom that
has to get a babysitter or a wife who has to get someone to sit with her husband all have different issues to
consider. Hammerlun said it is important to remember that this is a public service as well. Hammerlun said he
does not think the political will on Council could take the compensation up to the dollar amounts that Swift is
suggesting. Johnston said he thinks it is impossible to determine how to compensate the Mayor and Council for
their work. He said those people who serve do it on a voluntary basis because they have a passion to do so and
the ability to do it. He said he comes from a background where the Council did not get paid and he is very
uncomfortable with coming up with a dollar amount. He said he thinks the amount they are compensated now is
a token amount at best. He added he thinks a token amount is all it can ever be. He said, as a tax payer, the
Council should not be compensated very much. Browning said doubling the current amount is conservation yet
generous. She said she agrees that the service is huge and it is impossible to compensate for everything they give
to the community. She said, however, she does not agree with someone paying to be on the Council. Hammerlun
said he is compelled to say that the city needs focus, engaged intelligent, quality members serving because of the
complex issues throughout the city. There was much discussion regarding the level of compensation.
Motion by Johnston to pay the Council the current amount. Motion dies for lack of second.
Giese said he still thinks the compensation should but expense driven but said the problem is there no data to
back it up. He looked at how Georgetown would compare to the other cities. He spoke about how the current
amount does not seem to cover the expenses. There was discussion regarding doubling the current amount for
the Mayor and Council.
Motion by Swift, second by Browning that the compensation for Council be set at $800 and Mayor at $1,100 per
month. Approved 6-1 (Johnston opposed)
D Set next meeting of the committee
Adjournment –
Meeting adjourned at 4:04PM
Attachment number 4 \nPage 2 of 2
Item # C
Compensation Committee Discussion‐ March 2015
Section of the Georgetown City Charter regarding Mayor’s responsibilities:
Sec. 2.06. ‐ Mayor and Mayor Pro Tem.
The Mayor shall preside at all meetings of the Council and shall be recognized as head of the
City government for all ceremonial purposes, for the purpose of receiving services of civil
process, for emergency purposes, and for military purposes; but the Mayor shall have no regular
administrative duties. The Mayor, as a member of the Council, shall be entitled to vote only in
case of a tie upon all affairs considered by the Council and shall have no veto power. At its first
meeting following each regular election of Councilmembers, the Council shall, by election,
designate one of its number as Mayor Pro Tem, who shall serve in such capacity during the
pleasure of the Council. The Mayor Pro Tem shall act as Mayor during the absence or disability
of the Mayor, and shall have power to perform every act the Mayor could perform if present;
provided, however, that in all cases the Mayor Pro Tem shall be entitled to vote.
The following are statistics on the amount of official events the current Mayor has attended since he
was sworn into office:
June 2014‐ 3
July‐ 9
August ‐ 7
September ‐ 6
October ‐ 15
November ‐ 8
December ‐ 3
January 2015‐ 5
February ‐ 6
Official events include, but are not limited to: groundbreakings, grand openings, proclamation
presentations, speeches, non‐profit event appearances and out of town city events such as the
bond rating trip (2 full days)
*NOTE‐ The events on this list do not include meetings with constituents and city staff.
If the City wishes to pay the Mayor and City Council members per official meeting attended, the
following steps are proposed:
Ordinance amendment adding a provision to pay the Mayor and each City Council member per
meeting attended.
o The Ordinance would contain a general statement such as: “The City will reimburse the
Mayor and City Council members $____ per required meeting attended in his or her
official capacity as a voting member. These required meetings include, but are not
limited to, Advisory Boards, Regional Boards and Council‐Approved Subcommittees.”
The City Secretary’s Office will maintain a list of required meetings eligible for reimbursement.
The list must be approved by the Council and can be changed by a majority vote of the Council
at any time throughout the year.
Attachment number 5 \nPage 1 of 3
Item # C
o The following is an example of the meetings to be included on that list:
1. City Council Workshop
2. City Council Regular Meeting
3. City Council Special Meeting
Note: The amount of Special Meetings held can vary greatly each year
depending on city activities. Examples of past issues requiring Special
Meetings include City Manager Recruitment and Interviews, Personnel‐
related meetings, Redistricting Meetings, “Visioning Sessions” and other
Council retreats.
4. Animal Shelter Advisory Board
5. Georgetown Economic Development Corporation (GEDCO)
6. General Government and Finance Advisory Board (GGAF)
7. Georgetown Utility Systems Advisory Board (GUS)
8. Georgetown Transportation Advisory Board (GTAB)
9. Georgetown Transportation Enhancement Corporation (GTEC)
10. Williams Drive TIRZ
11. Downtown Georgetown TIRZ
12. Rivery Park TIRZ
13. Lone Star Rail District (and subcommittees)
14. Capital Area Council of Governments (CAPCOG)
15. Capital Area Metropolitan Planning Organization (CAMPO)
16. Clean Air Coalition
17. Texas Life‐Sciences Collaboration Center Board of Directors
18. Williamson County Conservation Foundation
19. Council appointed subcommittees such as Council Compensation Committee,
EMS Subcommittee and Architectural Selection Committees
20. Bond Rating Trip
Establish a reporting mechanism.
o The city “board liaisons” keep attendance at their board meetings and can follow
Council attendance at those meetings. However, the city would require the Mayor and
City Council members to submit monthly reports regarding their attendance at all
eligible meetings on the list.
Attachment number 5 \nPage 2 of 3
Item # C
EXAMPLES: These calculations are based on $400 per month for Council, $550 per month for the Mayor,
$50 per meeting (in‐city), $80 per meeting (out of city), $50 per official event attended by the Mayor.
Mayor Dale Ross (based on October 2014 calendar)
$550 per month
15 Official City Events ‐ $750
2 City Council Workshops‐ $100
2 City Council Regular Meetings‐ $100
1 TLCC Board of Director’s Meeting ‐ $50
1 CAMPO Meeting (out of city) ‐ $80
TOTAL: $1,630
Patty Eason‐ City Council District 1 (based on March 2015 calendar)
$400 per month
2 City Council Workshops‐ $100
2 City Council Regular Meetings‐ $100
2 Council Compensation Committee Meetings‐ $100
1 Georgetown Economic Development Corporation Meeting (GEDCO)‐ $50
1 Georgetown Utility Systems (GUS) Advisory Board‐ $50
1 City Manager Interviews‐ $50
1 Williamson County Conservation Foundation Meeting‐ $80 (out of city)
1 Lone Star Rail District Board of Directors‐ $80 (out of city)
1 Lone Star Rail District Committee‐ $80 (out of city)
TOTAL: $1,090
Jerry Hammerlun‐ City Council District 5 (based on March 2015 calendar)
$400 per month
2 City Council Workshops‐ $100
2 City Council Regular Meetings‐ $100
1 City Council Special Meeting (City Manager Interviews)‐ $50
2 Council Compensation Committee Meetings‐ $100
2 General Government and Finance Advisory Board (GGAF) Meetings‐ $100
1 Georgetown Transportation Enhancement Corporation (GTEC) Meeting‐ $50
2 Architectural Selection Committee Meetings‐ $100
Meeting with City Manager candidate‐ $50
Phone call with City Manager candidate‐ $50
TOTAL: $1,100
Rachael Jonrowe‐ City Council District 6 (based on March 2015 calendar)
$400 per month
2 City Council Workshops‐ $100
2 City Council Regular Meetings‐ $100
1 City Council Special Meeting (City Manager Interviews)‐ $50
3 Architectural Selection Committee Meetings‐ $150
1 Georgetown Art Works Meeting‐$50
1 Georgetown Transportation Advisory Board (GTAB) Meeting‐ $50
1 Animal Shelter Advisory Board Meeting‐ $50
1 CAPCOG Meeting (out of city)‐ $80
1 Clean Air Coalition Meeting (out of city)‐ $80
Bond Rating Trip with City Staff (2 days) (out of city)‐ $160
TOTAL: $1,270
Attachment number 5 \nPage 3 of 3
Item # C
City of Georgetown, Texas
City Council Agenda
April 14, 2015
SUBJECT:
Discussion and possible direction regarding current city-wide facilities projects, progress and direction
regarding the city center project, and discussion regarding next steps -- Laurie Brewer, Assistant City
Manager
ITEM SUMMARY:
FINANCIAL IMPACT:
Financial impacts for these projects will be discussed during the budget adoption process.
SUBMITTED BY:
Laurie Brewer/jd
Cover Memo
Item # D
City of Georgetown, Texas
City Council Agenda
April 14, 2015
SUBJECT:
Discussion and possible direction to staff on Street Network Connectivity Policies -- Jordan J. Maddox,
AICP, Principal Planner and Edward G. Polasek, AICP, Transportation Services Director
ITEM SUMMARY:
A follow-up to an October workshop on street connectivity, this discussion will focus on the importance of a
connected street network as Georgetown grows and the public costs of a disconnected system. Council will
hear how the current and future street network is built by developers guided by Fire Code and Unified
Development Code provisions which aim for a connected system that supports transportation mobility and
public safety. The workshop will conclude with a discussion of potential policy options to improve and add
flexibility to the current system.
FINANCIAL IMPACT:
None at this time.
SUBMITTED BY:
Jordan Maddox
Cover Memo
Item # E
City of Georgetown, Texas
City Council Agenda
April 14, 2015
SUBJECT:
Sec. 551.071: Consultation with 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
- EMS Contract Discussion
Sec. 551.072: Deliberation Regarding Real Property
- Inner Peace
Sec. 551.074: Personnel Matters
- Interim City Manager, City Attorney, City Secretary and Municipal Judge: Consideration of the
appointment, employment, evaluation, reassignment, duties, discipline, or dismissal
- Interim City Manager Compensation
ITEM SUMMARY:
FINANCIAL IMPACT:
To be determined
SUBMITTED BY:
Cover Memo
Item # F