HomeMy WebLinkAboutAgenda CC 08.11.2020 WorkshopN otice of M eeting of the
Governing B ody of the
C ity of Georgetown, Texas
Aug ust 11 , 20 20
The Georgetown City Council will meet on August 11, 2020 at 3:00 P M at Teleconference
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Page 1 of 126
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that R aise Your H and option onc e the item you wish to spe ak on has
opened. Whe n you are calle d upon by the M ayor, your de vice will be
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As another option, we ar e opening a city confe re nc e r oom to allow public
to “watch” the virtual mee ting on a bigge r scr ee n, and to “r aise your
hand” to speak fr om that public de vice . This Vie wing Room is loc ated at
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Distancing will be strictly enfor ce d. F ac e masks ar e r equire d and will be
provided onsite . U se of profanity, thre atening language , slander ous
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immediate ly r emove d from the me eting.
If you have questions or ne ed assistanc e, ple ase contact the City
Se cr etar y’s offic e at c s@ge orge town.org or at 512-930-3651.
Policy De ve lopme nt/Re vie w Workshop -
A P resentation and discussion of planning activities for the San J ose and Track Ridge Grasshopper
neighborhood plans -- Nat Waggoner, P M P, AICP Long Range P lanning Manager and Susan
Watkins, AIC P, Housing Coordinator
B P resentation and discussion regarding possible sale of P ower Transformers to Lower Colorado
River Authority -- Daniel Bethapudi, General Manager of the Electric Utility
C P resentation and discussion regarding downtown extended dining and retail -- Michaela Dollar,
Economic Development Director; Kim Mc Auliffe, Downtown Development Manager; & Travis
Baird, Real Estate Services Manager
D P resentation and discussion regarding the FY2021 City of Georgetown Budget and Tax Rate --
David Morgan, City Manager
Exe cutive Se ssion
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the items listed below will be discussed in closed session and are subject to action in the
regular session.
E Sec. 551.071: Consul tati on w i th Attorney
Advice from attorney about pending or contemplated litigation and other matters on which the
attorney has a duty to advise the City Council, including agenda items
- Litigation Update
- P E C Franchise
Sec. 551.072: Del i berati ons about Real P roperty
- P urchase of P roperty - P arks Administration
Sec. 551.086: Certai n P ubl i c P ow er Uti l i ti es: Competi ti ve M atters
- Competitive Matters – P urchased P ower Update
- Renewal and Amendment of Shell Energy N A Energy Manager/Q SE Agreement
Adjournme nt
Ce rtificate of Posting
Page 2 of 126
I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that
this Notice of Meeting was pos ted at C ity Hall, 808 Martin Luther King Jr. S treet,
G eorgetown, T X 78626, a plac e readily ac cessible to the general public as required by law, on
the _____ day of _________________, 2020, at __________, and remained so pos ted for
at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting.
__________________________________
R obyn Dens more, C ity S ec retary
Page 3 of 126
City of Georgetown, Texas
City Council Workshop
August 11, 2020
S UBJEC T:
P resentation and discussion of planning activities for the San J ose and Track Ridge Grasshopper neighborhood plans --
Nat Waggoner, P M P, AIC P Long Range P lanning Manager and Susan Watkins, AIC P, Housing Coordinator
I T EM S UMMARY:
Staff will provide the Council an update on the outreach and budget activities co mpleted since the J uly 14 workshop
including fe e dback fro m neighborho od represe ntatives. Staff is seeking suppo rt from the Council to begin formally
engaging both neighborhoods.
F I NANC I AL I MPAC T:
Staff will utilize existing budgeted funds for outreach outlined in this presentation. The scope of the neighborhood plans
will drive the cost to prepare both plans. P reliminary estimates identify a need for $200,000 to complete both
neighborhood plans.
S UBMI T T ED BY:
Nat Waggoner, P M P, AIC P and Susan Watkins, AICP
AT TAC HMENT S :
Description
P resentation
Page 4 of 126
Small Area Planning -San Jose and TRG Neighborhoods
City Council Workshop
August 11, 2020
Community
Outreach Vision Implementation
Page 5 of 126
Purpose of
Presentation
Action Steps since the City
Council Workshop on
07/14/2020
Outline proposal for
neighborhood communication
steps that will lead to draft scope
Page 6 of 126
Presentation
Outline
Path to partnership
Outreach
Community leadership
Path to partnership
Page 7 of 126
Feedback requested
Does the City Council support the process to gather
information from the neighborhood?
Page 8 of 126
Path to partnership
Meet
Listen
Learn
Plan
Confirm
Ask questions
Be present
Show interest
Trusted leaders
Concerns
Values
Vision
Develop a
partnership to
co-achieve
vision
Develop a plan
scope
Is this
partnership
going to
achieve the
vision?
Jul Aug Sept Oct
Page 9 of 126
Build core team of
existing neighborhood
leadership
Engage leaders to help
identify best ways to engage
with neighborhood
Strategize together to
establish tools and
process
Take action and
evaluate feedback
together
Community leadership
Page 10 of 126
San Jose Neighborhood
0.06 square miles
Outreach
Page 11 of 126
Track Ridge
Grasshopper
(TRG)
Neighborhood
.19 square miles
Outreach
Page 12 of 126
Path to partnership
Meet
Listen
Learn
Plan
Confirm
Ask questions
Be present
Show interest
Trusted leaders
Concerns
Values
Vision
Develop a
partnership to
co-achieve
vision
Develop a plan
scope
Is this
partnership
going to
achieve the
vision?
Jul Aug Sept Oct
Page 13 of 126
Feedback requested
Does the City Council support the process to gather
information from the neighborhood?
Page 14 of 126
For more information
•If the public wants to participate or get more information, please contact
either
•Si el público quiere participar o obtener más información, por favor
comuníquense
TRG -Susan Watkins (512) 930-8477, susan.watkins@georgetown.org
San Jose -Nat Waggoner (512) 930-3584, nat.waggoner@georgetown.org
Page 15 of 126
City of Georgetown, Texas
City Council Workshop
August 11, 2020
S UBJEC T:
P resentation and discussion regarding possible sale of P ower Transformers to Lower Colorado River Authority -- Daniel
Bethapudi, General Manager of the Electric Utility
I T EM S UMMARY:
F I NANC I AL I MPAC T:
N O N E
S UBMI T T ED BY:
Daniel N. Bethapudi - General Manager, Electric Utility (LJ W )
AT TAC HMENT S :
Description
Workshop P resentation - P ower Trans former S ale
Page 16 of 126
City of Georgetown
Proposed Sale of 11 Power
Transformers
to LCRA
By
Daniel N Bethapudi
GM –Electric
8/11/2020
Page 17 of 126
Background
•The financial challenges presented us with an
opportunity to identify opportunities :
–To cut costs
–Improve cost recovery
–Revenue protection
–Cash flow optimization.
•One such opportunity was to review our substation cost
center.
City of GeorgetownPage 18 of 126
Current Configuration
City of GeorgetownPage 19 of 126
Current Configuration Contd.
•Power Transformer: A power transformer in an electric
substation transforms the voltage from transmission
voltage to distribution Voltage. From 138 kV
(transmission) to 7.2 kV and 14.4 KV (distribution).
–Georgetown currently owns 11 Power Transformers
in 7 substations owned by LCRA.
–Georgetown currently uses one transformer that is
owned by LCRA and pays transformation charges.
•The transmission service into these 7 substations is pre-
dominantly provided by LCRA.
•Unlike some MOUs, GTWN does not own transmission
assets and hence has no transmission revenues. The 11
power transformers are strictly cost-centers.
City of GeorgetownPage 20 of 126
Challenges -Costs
•Compliance burden which requires expensive testing
and maintenance.
•The substation technicians are highly specialized, and
the labor market is tight.
–High employee turnover.
–3 out of 5 positions open currently.
–High cost of training Substation Technicians.
•Based on growth, we need to add multiple
substations/transformers in the next 5 –7-years.
Estimated capital outlay is approx. $9M.
City of GeorgetownPage 21 of 126
Make or Buy Analysis
Make or buy /Outsourcing Analysis:
–Compares the costs and benefits associated with
producing a necessary good or service internally to
the costs and benefits involved in hiring an outside
supplier for the resources in question. (Investopedia)
–The outcome of this analysis should be a decision
that maximizes the long-term financial outcome for a
company.
Make: Keep power transformer assets
Buy: Sell power transformer assets to LCRA, Buy/receive
Transformation Service from LCRA.
City of GeorgetownPage 22 of 126
Make or Buy Analysis Contd.
•Why sell to LCRA:
–All the substations where these power transformers
are located are currently owned by LCRA
–The transmission service to all these substations is
provided by LCRA.
–GTWN already has an existing transformation
agreement with LCRA at Glasscock substation.
–LCRA’s transformation tariff is approved by PUCT.
The rate is currently set at $0.8690 per kW of billing
demand.
–LCRA provides these services to other municipally
owned utilities like GTWN.
City of GeorgetownPage 23 of 126
Make or Buy Analysis Contd.
•Study conducted by:
–McCord Engineering Inc and GTWN staff.
•Study Horizon:
–10 years
•Costs/Expenses included in the study:
1.Transformation Rate Charges
2.Personnel and Fleet
3.Maintenance and Testing
4.Debt Service Costs
5.Depreciation Expense
6.Testing Equipment
7.Equipment Upgrades
8.Mobile Substation/Contingency
City of GeorgetownPage 24 of 126
Make or Buy Analysis Contd.
•Cost of In-house transformation (10-year horizon):
–$32,861,232
•Cost of Out-Sourced Transformation (10-year horizon):
–$30,593,909
•10-year Savings from out-sourcing transformation:
–$2,267,323.
•Annual Savings from out-sourcing transformation:
–$226,732
•In addition to the savings, Proceeds from the sale of 11
Power Transformers:
–$9,659,388.53.
The sale of the power transformers to LCRA maximizes the
long-term financial outcome for GTWN.
City of GeorgetownPage 25 of 126
Business Benefits
•GTWN will no longer be responsible for the maintenance
of the existing Power Transformers. Reduction in costs.
•GTWN will no longer be responsible for testing and
compliance requirements related to these assets.
•GTWN will work with LCRA’s TSC to plan for future
substation/transformation needs.
•GTWN capital outlay will be for distribution infrastructure
only.
•The immediate cash infusion of $9.6M will help reduce
the pressure on our retail rates.
City of GeorgetownPage 26 of 126
Proposed Configuration
City of GeorgetownPage 27 of 126
Sale Process
City of Georgetown
Process for the sale of 11 Power Transformers and
associated Equipment
•Valuation of the assets –Completed
–Both parties agreed on the Net Book Value of the
assets
–LCRA completed the physical inspection of the
assets.
•Amendments to agreements –In progress
–Interconnect agreements
–Transformation agreements
–Metering agreement.
Page 28 of 126
Sale Process Contd.
City of Georgetown
•Close of Sale:
–9/1/2020.
•Restricted use:
–Approximately $1.3 M of the sale proceeds will be
restricted. This is because $1.3M from 2014 revenue
bond proceeds were used to finance the some of the
transformers that are to part of the proposed sale.
•The proceeds from the proposed sale are included in the
FY 2021 budget presented to the city council on
7/14/2020.
Page 29 of 126
Recommendation
City of Georgetown
•Staff recommends the sale of Power
Transformers to LCRA.
•City Council Approval of Sale of Power
Transformers to LCRA.
•Questions??
Page 30 of 126
City of Georgetown, Texas
City Council Workshop
August 11, 2020
S UBJEC T:
P resentation and discussion regarding downtown extended dining and retail -- Michaela Dollar, Economic Development
Director; Kim Mc Auliffe, Downtown Development Manager; & Travis Baird, Real Estate Services Manager
I T EM S UMMARY:
Due to social distancing and reduced retail occupancy requirements in response to C OVID-1 9, staff has been exploring
ways to help businesses through extended dining and retail space in downtown. W hile other retail areas in the city have
adjacent parking lots and management associations that manage this use, the historic downtown district is limited to public
right-of-way and on-street parking.
Staff has analyzed multiple options to comply with legal and safety requirements, and will pre sent a temporary ordinance
with a simplified lic e nse to encroach pe rmit for this specific use. Additionally, the City will hold a "kick-o ff/pilo t" to
highlight the initiative.
F I NANC I AL I MPAC T:
TB D
S UBMI T T ED BY:
Michaela Dollar
AT TAC HMENT S :
Description
Downtown Dining P resentation
Page 31 of 126
Extended Downtown Dining & Retail Update
City Council Workshop
August 11, 2020
Page 32 of 126
BACKGROUND
Page 33 of 126
Issue
•Social distancing and lower occupancy requirements are in place for retail businesses and restaurants
•Businesses in other areas of the city are able to utilize their parking lots for expanded space if they wish, or participate in property events
•Downtown businesses are limited in space due to public parking and right-of-way
•Crowded sidewalks are dangerous and can discourage patronage
Page 34 of 126
Project Team
•Economic Development
–Main Street
•Real Estate Services
•Public Works
•Legal
•Planning
•Permitting
•Community Services
Page 35 of 126
Today’s Update
Staff has worked to:
•Identify the components that have to be in place to allow this type of use
•Consider enforceability, regulation, liability, and public safety
•Gain an understanding of what the true needs are across all downtown businesses
•Analyze existing processes and regulations to use as a foundation and modify for a temporary solution
•Find a short-term alternative while a longer-term solution is finalized
•Estimate the cost of the program, in an effort to take the burden off the businesses
Page 36 of 126
NEEDS ASSESSMENT
Page 37 of 126
Survey Results
•Survey ran from July 24 –
August 1, 2020
•24 businesses completed the
survey, and 3 additional
businesses responded to the
e-mail to say that while they
are supportive of the effort,
they did not want to lose
parking in front of their
business.
33%
50%
4%
13%
Type of Business
Restaurant Retail Service Other
Page 38 of 126
Survey Results
•The survey resulted in 5 businesses saying they would
NOT benefit from using on-street parking for
seating/retail.
•Most businesses that responded to the survey preferred
a weekend closure, then closure for an extended amount
of time.
•Out of 21 food-related businesses in the 9-block area, 9
responded and were in favor of closing parking spaces
for additional outdoor dining.
0 5 10 15 20
Yes
No
Benefit from using on-street
parking?
Page 39 of 126
Survey Results Map
Page 40 of 126
PILOT KICK-OFF
Page 41 of 126
Proposed Solution
Open parking spots in public
rights of way to seating and
retail
Page 42 of 126
Labor Day Pilot
•City to test concept over Labor Day weekend
•City will close select on-street parking for:
–Pedestrians
–Food Service
–Retail
•No special license required for businesses to
participate
•City will manage traffic control
•Estimated cost = $4,000
Page 43 of 126
Labor Day Pilot Area
Page 44 of 126
Page 45 of 126
LONGER TERM SOLUTION
Page 46 of 126
Example Cities
In State
•Ft. Worth
•San Marcos
•Austin
•Denton
•Houston
Out of State
•Seattle, WA
•Los Angeles, CA
•San Francisco, CA
•Santa Monica, CA
•Portland, OR
•Portland, ME
•Toronto, ON
Page 47 of 126
Longer Term Solution
•License to Encroach
–Adjust existing license program
•Provide flexibility
•Short term changes to the program, through EOY
•Staff is working to:
–Identify basis specifications to ensure safety and function of roadway
–Changes to existing process
•Streamline
•Provide a guide for applicants
–Identify suggested changes to existing license terms:
•Reduce revocation notification
•Administrative approval of license
•Specific use requirements/limitations
Page 48 of 126
Next Steps
•Complete staff coordination on license changes
–Finalize ordinance change recommendations
–Finalize submittal path, forms, & guidance
•Determine Funding
–$4,000 for Labor Day pilot
–$8,500 for Longer Solution
•Includes traffic control and additional signage for up to four months
•Return August 25th
–Final Program approval
–Any needed ordinance changes
Page 49 of 126
City of Georgetown, Texas
City Council Workshop
August 11, 2020
S UBJEC T:
P resentation and discussion regarding the FY2021 City of Georgetown Budget and Tax Rate -- David Morgan, City
Manager
I T EM S UMMARY:
On Aug 11th, city staff will pro vide an overview of the propo sed City of Georgetown F Y2 02 1 Budget and receive
feedback and direction fro m the City Council. This is a follow-up sessio n to the J uly 14 & 28, 2020 City Council
Workshops regarding the City of Georgetown F Y2 02 1 budget considerations. Discussion on the 2 02 0 tax rate will also
occur, providing direction to staff to finalize the FY2021 Annual Budget.
The proposed FY2 02 1 Annual Budget will be filed with the Office of the City Secretary o n Tuesday, August 11 th and will
also be available on the City’s website for public review at the following links:
https://georgetown.org/files/2020/08/F Y21-P roposed-Budget-P art-1.pdf
https://georgetown.org/files/2020/08/F Y21-P roposed-Budget-P art-2.pdf
https://georgetown.org/files/2020/08/F Y21-P roposed-Budget-P art-3.pdf
F I NANC I AL I MPAC T:
A financial overview will be included as part of the discussion.
S UBMI T T ED BY:
Shirley J . Rinn on behalf of David Morgan, City Manager
AT TAC HMENT S :
Description
P roposed F Y 2021 Budget P res entation
Page 50 of 126
FY2021 Annual Budget
FY2021
Proposed Budget
August 11, 2020
Page 51 of 126
FY2021 Annual Budget
Agenda
•Budget Context
•Budget Engagement Results
•Budget Process Review
•Proposed Budget Overview
•Council Feedback
•Next Steps
Page 52 of 126
FY2021 Annual Budget
BUDGET CONTEXT
Page 53 of 126
FY2021 Annual Budget
Context of 2020 and 2021
•COVID-19 Pandemic
•Closures with impacts to revenues
•City facility and service changes
•Employee and public safety measures
•Continued uncertainty on future measures
•Development Growth Continues
•Residential and commercial growth not slowing down
•Continuing multi-year projects/initiatives
•Fire station 6&7
•Workday Implementation
•Comprehensive Plan implementation
•Maintain service levels where possible
Page 54 of 126
FY2021 Annual Budget
Budget Contingency Plan –
enacted for FY20 Budget
•Uncertainty over revenue impacts of COVID19 in
March enacted the budget contingency plan –fiscal
and budgetary policy
•Reviewed and froze vacant positions
•Reduced operating budgets
•Held on capital spending
•Projects in capital plan were paused as spring debt sale
was reduced to due stagnant bond market
Page 55 of 126
FY2021 Annual Budget
Key Themes for FY21
•Conservative revenue projections with continued
COVID uncertainty
•Flat sales tax
•Lower development, court, and recreation revenue
•Lower Property tax rate
•Continue to review service levels and staffing
•Reduced parks & recreation programming due to
reduced revenue and COVID social distancing measures
•Other base budget cuts made
•Employee market compensation
•Merit increase of 2% based upon Council’s feedback
from 7/28 workshop –review during fall for
implementation
Page 56 of 126
FY2021 Annual Budget
Key Themes for FY21
•Continue plan to open Fire Station 6&7 successfully
•Hire 6 firefighters for float positions
•Continue to invest in Police staffing and training
•Hire 2 police officers; fund the firing range/training facility
•Address limited areas in stress
•Customer Care/Utility Control Center/Fiber Mgt
•Carry forward key capital improvement projects
•Traffic/Public Safety/Utility Infrastructure
•Continue improvements in public/employee
engagement
•Citizen Survey
•Civic Leadership Program
•Employee Survey
Page 57 of 126
FY2021 Annual Budget
Budget Cost Assumptions
•Base budgets
•Existing staff, supplies, maintenance and costs
•May include increases related to growth
•Utilities, maintenance, cost increases
•Continue to provide overall existing levels of service; some
areas may have reduced levels of service
•Reduced travel, training, and supplies
•Continue a limited number of frozen positions (7 positions in the
General Fund)
•Reduce Recreation/Parks programming due to pandemic
•Service enhancements where necessary
•New staffing, program funding to address growth or specific issues
Page 58 of 126
FY2021 Annual Budget
Summary -Financial
Circumstances for FY21 Budget
•Lower revenue for FY21
•Flat sales tax
•Lower development, court and recreation revenue
•Property tax within 3.5% cap
•COVID impacts
•Flat sales tax revenue
•Continued electric revenue impacts (lower load demand)
•Reimbursement for FY20 COVID expenses
•Strategy:
•Flat expenditure plan due to reduced revenues
•Reduced compensation plan
•Base budget cuts to provide room for increases where
needed
Page 59 of 126
FY2021 Annual Budget
Budget Revenue Assumptions
•Proposed Property Tax rate –$0.418
•Decrease from prior year rate of $0.42
•Within voter approval rate (3.5% increase allowed)
•Allows for prepayment of some existing debt to allow room
in rate to support continued infrastructure growth in future
years
•Increase in Sanitation Rates
•Residential increase of $1.37 per month
•Transfer station funding; Household hazardous waste
program funding and increase by contractor
•Water Rate Study –in progress
•Results in August/September; implementation in January
•Expect changes to conservation tiers and rates due to
accelerated infrastructure
Page 60 of 126
FY2021 Annual Budget
Property Tax Revenue –FY21
•General Fund (Operations and Maintenance)
•$15.9M in FY21
•$14.9M in FY20
•6.7% increase
•Debt Service (Interest and Sinking)
•$18.75M in FY21
•$17M in FY20
•10.2% increase
•$350K towards prepayment to retire existing debt
•Allows for shaping future debt plan for mobility bonds
Page 61 of 126
FY2021 Annual Budget
BUDGET CITIZEN
ENGAGEMENT
Page 62 of 126
FY2021 Annual Budget
Budget Engagement –Online
Survey
•660 Responses
•Almost 12k video views
•1,500 comments on 6 open-ended questions
•Wide response rate from each city council district
•Spread of 17.5% in District 5 to 6.3% in District 1
Page 63 of 126
FY2021 Annual Budget
Budget Engagement –Feedback
•No change to property tax rate and user fees
•34.3% of respondents would support an increase in user
fees
•70% of respondents rate the value of city services
for the City taxes paid as Good or Excellent
•Rating for how the City is addressing the impacts of
growth
•7.8% Excellent
•34.4% Good
•29.6% Fair
•23.9% Poor
Page 64 of 126
FY2021 Annual Budget
Budget Engagement –Feedback
•Funding changes to manage traffic
•54.7% increase
•34.4% no change
•Funding changes to support infrastructure/roads
•54.6% increase
•35.1% no change
•Funding change to support safety in our city
•42.5% no change
•40.3% increase
•Other city services that should be prioritized
•Maintain/increase services in the library
Page 65 of 126
FY2021 Annual Budget
Budget Process
Page 66 of 126
FY2021 Annual Budget
Budget Process –Workshops
•Many 2020 budget workshops have informed
the FY21 proposed budget
•January 28 –Transfer station workshop
•February 25 –Budget schedule/calendar workshop
•March 10 –Water Infrastructure Planning workshop
•March 24 –Facilities Internal Service Fund
•April 14 & 28 –COVID19 Budget impacts/planning
•May 12 & 26 –COVID19 Budget impacts/planning
•June 9 –Utility Capital Projects; mid year planning; GoGeo
options
•June 23 –Facilities, Parks, Public Safety Capital Projects
•June 23 –Budget Pressures and Revenues
•July 11 –Council tax supported debt and Capital funding tax rate
impact planning
•July 21 –Council budget worksession –all funds review
•July 28 –Employee compensation –civil service and non civil
service
Page 67 of 126
FY2021 Annual Budget
Proposed Budget Overview
Page 68 of 126
FY2021 Annual Budget
Total City Budget
FY21 Revenues/Sources
34%
15%14%
9%
8%
6%
5%
5%
2%
1%
1%
FY2021 Budget
Utility Revenue
Interfund Transfers
Bond Proceeds
Property Tax
Sales Tax
Development and
Permit Fees
Charges for Service
Other Revenue
FY21 Expenses/Uses
22%
15%
12%10%
9%
8%
6%
5%
5%
5%
3%
0%0%
FY2021 Budget
Capital Improvements
Purchase Power
Water
Public Safety
Debt Service
Community Services &
Finance
Development & Public
Works
Management Services
Page 69 of 126
FY2021 Annual Budget
Total Budget -Major Expense
Categories
•$396 million total budget
•$77M in planned capital projects, plus
$9M available in GEDCO
•$60M in purchased power expense
•$41M in Water
•$39.7M in public safety
•$35M in debt service
Page 70 of 126
FY2021 Annual Budget
Maintain Service Levels –Increase staffing in high growth
areas
•General Fund
•Fire –6 firefighters
•Animal Shelter –PT Veterinarian (net $0 cost to General Fund)
•Police –two officers
•Joint Services
•Customer Care –Customer Service Representative
•Engineering –Project Manager
•Information Technology
•Fiber Supervisor
•System Analyst
•Electric
•Utility Analyst
•Control Center Operator
•Water
•Utility Analyst 15.5 New Positions
Page 71 of 126
FY2021 Annual Budget
General Fund
Page 72 of 126
FY2021 Annual Budget
General Fund -FY21
•Revenue Assumptions
•Sales tax 0% increase over budget; $17,859,375 million
•New development like Wolf Crossing, Holt Cat and Academy
Sports & Outdoors offsets other areas impacted by pandemic
business closures
•7.7% increase over FY19 ending balances
Page 73 of 126
FY2021 Annual Budget
Tax Rate for FY21 Budget
•Property Tax Valuations
•Total assessed value is certified at $8.6 billion, which is
an increase of 6% over previous year
•New Value represents $461M
•Over 33% increase in new property over prior year
•54 commercial property improvements compared to 13
last year
•Increase in new property on tax rolls allows for
sufficient revenue in O&M and I&S
Page 74 of 126
FY2021 Annual Budget
General Fund -FY21
•Property Tax -$15.9M
•Approximately $1M in new revenue
•3.5% increase allowed in voter approved rate
•SB 2 allows cities to go up to 8% before requiring voter
approval due to emergency declaration being declared
•Rate $.418 per $100 value anticipated
•Lower than FY20 rate of $0.42
•Average homestead property decreased by 2.3%
•$278,001 in FY21; $284,765 in FY20
•Average homeowner will pay $34 less in property tax in
upcoming year
Page 75 of 126
FY2021 Annual Budget
Tax Rate for FY21 Budget
•The proposed tax rate is $0.418 per $100 valuation, which is
$0.002 lower than the FY20 rate. This is a 7.3% increase over
the no new revenue rate adjusted for sales tax.
•The no new revenue rate adjusted for sales tax is $0.389738,
which represents the rate that would be needed to produce
the exact same revenue as the previous year.
•The voter approval rate is $0.418013.
Page 76 of 126
FY2021 Annual Budget
Tax Rate for FY21 Budget
•At the proposed tax rate of $0.418, the estimated
tax decrease for the average homeowner (on a
$287k taxable value) would be almost $34.
•This tax rate includes necessary funding for
proposed operations and payment of debt,
including an additional $350K towards prepaying
callable debt service to increase future debt
capacity.
Page 77 of 126
FY2021 Annual Budget
General Fund –Property
Valuations
Page 78 of 126
FY2021 Annual Budget
General Fund -FY21
•Sanitation
•Current residential rate -$19.55
•New proposed residential rate -$20.92
•Anticipate proposing a rate adjustment of $1.37
•1.26% in TDS Contract = $0.25
•Transfer station costs (debt service) = $1.00
•Fee for Household Hazardous Waste = $0.12
•Overall 7% increase
•Commensurate increase for commercial customers
Page 79 of 126
FY2021 Annual Budget
General Fund -FY2021
•Parks and Recreation –Revenue is reduced 29%
over FY19 actuals due to expected continued
impacts of COVID
•Areas Impacted
•Recreation Center
•Recreation Programming
•Tennis Center
•Aquatics
•Assumed program cuts, reduced hours at pools and
other cost savings to partially offset the reduced
revenue
Page 80 of 126
FY2021 Annual Budget
General Fund –FY21 Expenses
•Base budget cuts –Over $796K
•Significant Service level impacts in Parks & Rec
•Reduced pool operations at River Ridge Pool
•Reduced swim lessons
•Reduced babysitter service at Rec Center
•Aerobics -Cut Group Fitness with membership
•Reduced instructional payroll
•In addition, cut the transfer to the parks equipment
replacement fund $240K –will skip a year of
replacement of playground equipment and other
parks improvements
Page 81 of 126
FY2021 Annual Budget
General Fund –FY21
•Base budget cuts –over $796K
•Reduced travel, training, supplies
•7 Frozen Positions $331K
•Parks Maintenance Worker
•Challenge Course Coordinator
•2 part time recreation assistants
•Court supervisor
•Admin. Secretary (Administrative Services)
•Business Analyst (Public Works)
•Librarian
Page 82 of 126
FY2021 Annual Budget
General Fund -FY21
•Public Safety
•Fire
•6 new firefighter float positions -
$431,411
•Station equipment -$78,400
•Supplies for new stations -$19,000
•Police
•2 new police officers -$354,382
•DroneSense software $7,140
Page 83 of 126
FY2021 Annual Budget
General Fund -FY21
•Administrative and Council
•Redistricting -$40,000
•Mobility Bond planning -$8,000
•Citizen and Employee surveys -$31,000
•City council goal setting work session -
$9,500
Page 84 of 126
FY2021 Annual Budget
General Fund -FY2021 Expenses
•Community Services
•Training -$6K
•Code enforcement officer development/steps -$8K
•Part Time Veterinarian -$50K
•Adds .5 FTE
•$35K existing contract services funding available
in budget
•$15K donation from Friends of the Animal
Shelter
•Communications
•New Van maintenance (capital funded through PEG
special revenue fund)
Page 85 of 126
FY2021 Annual Budget
Where the Money Comes From/Goes
General Fund
Sales Tax
23%
ROI
11%
Sanitation
Revenue
14%
Franchise Fees
8%
All Other
Revenue
24%
Property Tax
20%
FY2021 REVENUES
Public Works
19%
Transfers
1%
Admin. Srvs.
11%
Com. Srvs. &
Fin.
17%
Dev. &
Planning…
Fire
28%
Police
21%
FY2021 EXPENSES
Page 86 of 126
FY2021 Annual Budget
CAPITAL IMPROVEMENT PLAN
Page 87 of 126
FY2021 Annual Budget
Capital Improvements
•Continued significant investments to address
growth pressures
•Property Tax supported –facilities, public safety, parks,
roads, sidewalks
•Rate and fee supported –water/wastewater, electric,
stormwater drainage, airport, sanitation
•Sales tax supported –through the city’s 4A and 4B
corporations
Page 88 of 126
FY2021 Annual Budget
Facilities –FY21 CIP
•Public safety training and operations –tactical
and firearms training center -$4,500,000
•Rec Center/Teen Center Renovation -
$200,000
•Transfer station -$11 million
–$1 million previously funded in FY19
–$5 million repurposed due to project timing on
parking garage
–Self supporting –paid through the sanitation rates
Page 89 of 126
FY2021 Annual Budget
Equipment –Tax Supported
•Public Safety Vehicles
–$1,080,000 Police
–$2,290,000 Fire
•Equipment
–$363,278 radio replacement (final year)
–$225,000 –Cardiac monitors
–$580,000 –SCBA replacement
Page 90 of 126
FY2021 Annual Budget
Parks Capital Improvements
•Parks CIP –Rollforward of FY20 projects not funded
during stagnant debt market –$1,795,000
•Neighborhood Park Development -$250K
(Heritage Gardens)
•Parks Master Plan -$200K
•Regional Trail through Wolf Crossing property
$1,275,000
•Tennis Center pool demo -$70,000
•New Parks projects for FY21 -$150,000
•Continuation of ADA Transition Plan ($150,000) –
upgrades to trails and facilities for accessibility
Page 91 of 126
FY2021 Annual Budget
Transportation Capital Improvements
•DB Wood -$4,000,000
–$14.4M in future years
•Sidewalks -$1,000,000
•Intersection Improvements -$1,800,000
Page 92 of 126
FY2021 Annual Budget
Airport –Capital Improvements
•Airport CIP -$750,000
•Airport Maintenance/Equipment Storage
Facility ($750,000)
Page 93 of 126
FY2021 Annual Budget
Stormwater Capital Improvements
•Stormwater CIP -$1.M
•Curb and Gutter ($500,000)
•Drainage Improvements/Flood Mitigation
Projects ($300,000)
•Stormwater Inventory ($200,000)
Page 94 of 126
FY2021 Annual Budget
Electric Capital Improvements
•Electric CIP -$5,648,625
•Continue system upgrades
•$2.5 million related to new development
•Various Feeder and transformer improvements
•Purchase of equipment
•Reel turret trailer -$98K
•Underground pulling trailer -$181K
Page 95 of 126
FY2021 Annual Budget
Water CIP-$28,650,000
•Projects rolled from FY20 -$5,550,000
•Round Rock: $9,200,000
•Connection and storage
•Hoover: $6,100,000
•Pump station, line and elevated tank
•Water Oak: $3,500,000
•South Plant: $1,250,000
•Misc line and tank: $750,000
•Aviation Drive:$2,300,000
•Fire flow
Page 96 of 126
FY2021 Annual Budget
Wastewater CIP -$2,650,000
•Edwards Aquifer Recharge Zone (EARZ)
•TCEQ mandate
•$1,500,000
•Lift Station Repair/Upgrades (as needed)
•Approximately 40 stations system-wide
•$550,000
•Cimarron Hills Treatment Plant Expansion
•Contractual Commitment Funded by Oaks at San
Gabriel
•Construction FY23/24
•$600,000 Design –FY21
•Developer reimbursed
Page 97 of 126
FY2021 Annual Budget
ELECTRIC AND WATER
FUNDS Page 98 of 126
FY2021 Annual Budget
Electric Fund FY20 Projections
•Operating revenues totals $90 million
•Electric charges are projected to be $2.9 million down
from the budget of $85.5 million. This decline is the
direct result of lower load demand due to COVID
•Developer contributions are projected to total $2
million, which is $1.4 million more than budget
•Operating expenses total $83.4 million
•Electric resource expenses are projected to end on
budget with the positive impact of renewable energy
credit sales
•Overall expenses are projected to end $1 million less
than budget due to operational savings seen throughout
the year
Page 99 of 126
FY2021 Annual Budget
Electric Fund FY20 Projections
•Non operating revenues are projected to total
$15.2 million, which is $10.2 million above budget.
This is due to an anticipated sale of transformers to
LCRA and the second year of the sale of the fiber
system to the IT Fund.
•Sale of transformers -$9.6 million
•Fiber system sale installment -$651k
•Non-Operating expenses are projected on budget
at $9.1 million for capital improvements and debt
service.
•Projected ending fund balance of $18.9M with
$13.4 million in non-operating reserves and $1.3
million in reserved bond proceeds after
contingency is met.
Page 100 of 126
FY2021 Annual Budget
Electric Fund FY21
•Operating revenues totals $90.4 million which
represents 1% growth due to residential and
commercial growth and reimbursement from the S.
Georgetown TIRZ for electric infrastructure
expenses.
•Operating expenses total $84.4 million which is a
1% growth over FY20 projections.
•Operational savings continue from FY20
projections
•Electric resource management is conservatively
budgeted at $60.3 million
Page 101 of 126
FY2021 Annual Budget
Electric Fund FY21
•Non operating revenues total $5.6 million of bond
proceeds for capital improvements
•Non-Operating expenses total $9.5 million for
capital improvements and debt service
•The ending fund balance is budgeted at $21.1
million with non-operating revenues at $15.8
million above contingency reserves
Page 102 of 126
FY2021 Annual Budget
Electric Fund FY21
•Proposed enhancements include:
•Control Center –logic controllers -$12,000
•Administration –Utilities Analyst -$113,687
•Metering –AMI modems-$12,000; handheld
computers $39,748; Meters (funded by Water)
$100,000
•T&D –Turret Trailer $98K; underground pulling
trailer $181K (funded through short term debt)
•Operations –Dispatcher training -$30,000,
locator equipment $10,000, System Operator
$81,864
Page 103 of 126
FY2021 Annual Budget
Water Fund –FY20 Projections
•Operating revenues totals $52 million which is an
increase of 5.17% primarily due to development fee
growth of $2 million
•Operating expenses total $43 million which is 0.3%
lower than budget due to operational savings
•Non-operating revenues are projected at $35.7
million of bond proceeds for capital improvements
and $26 million of impact fees
Page 104 of 126
FY2021 Annual Budget
Water Fund –FY20 Projections
•Non-operating expenses total $105.6 million for
capital improvements and for debt service which
matches the fast growth of the water utility
•Projected ending fund balance of $31.1 million by
end of FY2020 with $10 million in non-operating
contingency and available fund balance of $11.3
million after meeting contingency requirements
Page 105 of 126
FY2021 Annual Budget
Water Fund –FY21
•Operating revenues totals $53.2 million which is an increase
of 2.27% over FY20 projections. The increase reflects
moderate customer growth
•Operating expenses total $45.5 million which represents a
5.42% growth over FY20 projections. This increase is
primarily due to increases in wholesale water purchases,
increases in utility costs, and metering allocations.
•Non operating revenues include $35.1 million of bond
proceeds for capital improvements and $18.8 million of
impact fees.
•Non-Operating expenses total $39.3 million for capital
improvements and for debt service.
•The ending fund balance is $34.6 million with a $10 million
non operating reserve and available fund balance of $15.4
million after meeting contingency requirements
Page 106 of 126
FY2021 Annual Budget
Water Fund –FY21
•Proposed enhancements total $375K
•Position –business analyst -$80K
•Leak detection technology -$50K
•Wastewater plant upgrades –245K
•Water Rate Study currently underway
•Last rate update in 2018 indicated need for future rate
increases due to treatment infrastructure
•Updated growth patterns and usage
•Results to Water Advisory Board and Council in next two
months
•Estimated implementation –January 2021
Page 107 of 126
FY2021 Annual Budget
AIRPORT AND
STORMWATER FUNDSPage 108 of 126
FY2021 Annual Budget
Airport Fund FY21
•Operating revenues totals $3.4 million
•Reduced fuel revenue and expense due to prices
•Operating expenses total $3.5 million
•Non operating revenues total $700,000 of bond
proceeds for an airport storage facility
•Previously planned in FY20
•Non-Operating expenses total $908K for capital
improvements and debt service
•Projected ending fund balance of $923K by end of FY21
Page 109 of 126
FY2021 Annual Budget
Stormwater Fund FY21
•Operating revenues totals $3.8 million
•Operating expenses total $2.9 million
•Non operating revenues total $500,000 of bond
proceeds for drainage improvements
•Non-Operating expenses total $1.5 million for
capital improvements and debt service
•Proposed enhancements include a vehicle for site
inspections ($35,400) and a rate study ($30,000)
•Projected ending fund balance of $1.6 million by
end of FY2021
Page 110 of 126
FY2021 Annual Budget
SPECIAL
REVENUE FUNDS
Page 111 of 126
FY2021 Annual Budget
Tourism/CVB Fund
•Revenues total $1.05 million
•Hotel tax projected at FY20 levels
•Expenses total $1.5 million
•Red Poppy for April 2021
•Continued promotion of Georgetown as a
destination
•No proposed enhancements
•Projected ending fund balance of $850K by end of
FY2021 still meets contingency requirement
Page 112 of 126
FY2021 Annual Budget
Council Discretionary Fund
•Council directed the excess General fund revenue
from FY2019 to go towards the General Fund
economic stability reserve at beginning of COVID19
pandemic
•$1.759M available in General Fund ESR
•Council can direct using those funds towards
projects or transferred to this fund
•FY21 revenues total $500 for interest income
•Council directed a transfer of $110,983 to the
General Fund to help fund one-time expenses in
FY21
•Projected ending fund balance is $0 in FY21
Page 113 of 126
FY2021 Annual Budget
Street Maintenance Fund
•Revenues total $3.9 million
•Sales tax revenue flat for FY21
•Expenses total $4.4 million
•Cutler process; high performance pavement seal
•Detailed street listing on June 23 workshop
•Projected ending fund balance of $1.9 million by
end of FY2021
Page 114 of 126
FY2021 Annual Budget
GTEC Fund
•Revenues total $18.6 million
•$7.9 million in sales tax (flat from FY20)
•$10.6 in bond proceeds to fund new street projects
for economic expansion
•Expenses total $16.8 million
•$10.6 million in new projects -$2M for Costco area;
$600,000 for Confido; $8 million for Aviation Drive
•$3.8 million in debt service (includes transfer to
General Debt Service
•Projected ending fund balance of $15.3 million by end
of FY2021
•Fully funded contingency and debt service reserve
Page 115 of 126
FY2021 Annual Budget
GEDCO Fund
•Revenues total $2 million
•Forecasting flat sales tax from FY20 to FY21
•Expenses total $10.1 million
•$3.3 million for previously approved projects
•$2 million for Aviation Drive (Utility
improvements)
•$3.9M for future economic development
projects
•Projected ending fund balance of $708K by end of
FY2021
•Meets contingency and debt service policy
Page 116 of 126
FY2021 Annual Budget
Tax Increment Reinvestment
Zones –FY21
•Meetings held with boards July 29 and 31 for review of
projects and annual reports
•Williams Drive Gateway –only administrative expenses
•Rivery –Debt service and administrative expense
•South Georgetown –final payment for electric
infrastructure, administrative expense and dissolving of
TIRZ in FY21
•Downtown –administrative and project expenses
•Continued work on City Center include shotgun house
educational kiosk and demolition of bldg. at 9th and MLK and
possibly shade structures
•Art –murals and potential art park around Founders Park
•Public input to continue to drive improvements
Page 117 of 126
FY2021 Annual Budget
Internal service funds
INTERNAL
SERVICE FUNDSPage 118 of 126
FY2021 Annual Budget
Internal Service Funds –FY21
•Joint Services
•Cut expenses by $220,000
•Does not meet contingency requirements
•Enhancements of $532K including
•Infrastructure project manager in Engineering
•Customer Service Rep in Customer Care
•Overhead cost allocation study
•Workday training and programming
•Itineris/UMAX contingency
•Warehouse upgrades
•Fleet Services
•Meets contingency requirements
•Enhancements include replacement of courtesy van
Page 119 of 126
FY2021 Annual Budget
Internal Service Funds –FY21
•Information Technology
•Meets contingency reserves
•Balance in FY20 used towards fiber asset transfer from Electric
•FY21 Enhancements include
•Increases due to fiber network shift –2 positions
•System analyst for Meter Data Management and Geodigital
•Backup data system software
•Facilities
•Meets contingency requirements
•Enhancements include awning replacement at Animal
Shelter
Page 120 of 126
FY2021 Annual Budget
Self Insurance Fund
•Revenues totals $9.1 million.
•.76% slight decrease from FY20 projections
•Expenses total $9.5 million –projected
conservatively
•9.5% increase overall
•10.4% projected increase in medical claims
•16% increase in stop loss
Page 121 of 126
FY2021 Annual Budget
Self Insurance Fund
•Budgeted ending fund balance of $3.9 million by
end of FY2021
•Both reserves funded in total
•Ending fund balance increased by $1.1 million
over FY20 budget
•Healthy balances allow for recommendation
for no rate increases for employees for
health or dental
Page 122 of 126
FY2021 Annual Budget
Budget Summary
•The proposed budget totals $396 million
•10% decrease from the FY20 adopted budget
•Timing of capital projects drives most significant changes
•General Fund increase of 3.7% over FY20 budget
•Population growth of 7.2%
•Consumer Price Index increase of 2.3%
•Continued planning to meet demands of continued
residential and commercial growth
•Continued work on City Council priorities while
recognizing COVID19 uncertainties
Page 123 of 126
FY2021 Annual Budget
Next steps
NEXT STEPS
Page 124 of 126
FY2021 Annual Budget
FY2021 Proposed Budget
Calendar
•Aug 11: Regular Meeting; set max tax rate, & set
dates for Public Hearings
•Sep 8: Regular Meeting: public hearings on budget
and tax rate, 1st reading of the budget, 1st reading
of the tax rate, GTEC, GEDCO, Village PID budgets
adopted
•Sep. 22: Regular Meeting: 2nd reading of the
budget, 2nd reading of the tax rate
Page 125 of 126
FY2021 Annual Budget
Public Outreach
•Current
•Proposed Budget posted on City website and eBook at
Library; Facebook
•Press release on proposed budget
•Public Hearings on Budget and Tax Rate 9/8
•Future
•Adopted Budget in Brief published on website
•Adopted Budget (full book) published on website/library
•Budget Video on Adopted Budget on website/social media
Page 126 of 126