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Home My WebLink AboutAgenda CC 09.03.2019 SpecialN otice of M eeting of the Governing B ody of the C ity of Georgetown, Texas September 3, 2 01 9 The Georgetown City Council will meet on September 3, 2019 at 6:00 P M at City Council Chambers, 510 W 9th Street Georgetown, TX 78626 The City of Georgetown is committed to compliance with the Americans with Disabilities Act (AD A). If you require assistance in participating at a public meeting due to a disability, as defined under the AD A, reasonable assistance, adaptations, or accommodations will be provided upon request. P lease contact the City Secretary's Office, at least three (3) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 808 Martin Luther King J r. Street, Georgetown, TX 78626 for additional information; TTY users route through Relay Texas at 711. Le gislative Re gular Age nda A P ubl i c Heari ng on the proposed F Y2020 Annual B udget -- David Morgan, City Manager B P ubl i c Heari ng on the proposed 2019 P roperty Tax Rate used for the F Y2020 Annual B udget -- David Morgan, City Manager Adjournme nt Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that this Notice of Meeting was pos ted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily ac cessible to the general public as required by law, on the _____ day of _________________, 2019, 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 1 of 45 City of Georgetown, Texas City Council Special Meeting September 3, 2019 S UBJEC T: P ubl i c Heari ng on the proposed F Y2020 Annual B udget -- David Morgan, City Manager I T EM S UMMARY: This hearing provides an opportunity for public comment on the FY 2020 proposed budget that was presented to Council on August 6, 2019. The F Y 2020 P roposed Budget and overview presentations are available for public review at City Hall located at 808 Martin Luther King J r St. The information is also available on the City’s website finance.georgetown.org. This public hearing fulfills the requirements of the Texas Local Government Code, Section 102.006 providing public comment on the proposed budget. F I NANC I AL I MPAC T: N/A S UBMI T T ED BY: David Morgan, City Manager AT TAC HMENT S : Description P resentation Page 2 of 45 2020 Budget David Morgan | City Manager Page 3 of 45 Agenda •Review meetings to-date •Feedback, pressures, and themes •Major Projects Overview •2020 budget summary Page 4 of 45 Previous Council Work Sessions •Transportation Issues –Street Maintenance –Road Bond Update –Go Geo/Rideshare •Transfer station planning •Communications Assessment •Electric Resource Management/Fund Status •Long-term water supply •Council workshops •Presented proposed budget, set maximum tax rate, and set hearing dates Page 5 of 45 Resident Feedback •Retain Small Town Charm •Online survey –Manage growth –Taxes and spending –Traffic •Town Hall –Quality of life enhancements –Transportation Page 6 of 45 Fast Growth •7th fastest growing city in the nation •5th year to be in top 10 •Between 2013 and 2017, medical and fire calls increased 56%. •Population –47,000 in 2010 –74,180 in 2018 (up 56.6%) –96,500 by 2030 Page 7 of 45 City Service Areas Page 8 of 45 Growth Heat Map •Growing everywhere •Fastest growth in southeast •Historically northwest Page 9 of 45 Cost of service Page 10 of 45 Budget Themes •Retain small town charm while addressing growth •Ensure safety and responsiveness •Improve communication •Maintain quality of life services •Maintain and enhance service delivery/performance management •Continue to strengthen financial conditionPage 11 of 45 Major Projects Overview •Parks •Water •Wastewater •Solid Waste •Airport •Roads •Facilities, Fleet, and Equipment Page 12 of 45 Investing in New Infrastructure •$60.2 million in total capital investment –General Capital Projects -$18.6M •Roads –$10.6M •Facilities -$800K •Fleet -$3.2M •Public Safety –$1.4M •Parks -$2.5M •Water/Wastewater - $35.6M •Electric -$4.01 •Airport -$880K •Stormwater -$1.2M Page 13 of 45 Parks Current Year Projects •IOOF Columbarium •VFW Parking Lot Addition •San Gabriel Park Phase II and Trail Extension •Neighborhood Park Development •Parks ADA Transition PlanPage 14 of 45 Parks Proposed 2020 Projects •Design San Gabriel Park Phase III •Regional Trail Design and Construction •Parks Master Plan Update •Continue Parks ADA Transition Plan •Neighborhood Park Development –Heritage Community Gardens •Demo Tennis Center PoolPage 15 of 45 Water System •Lake WTP –8MG/day –Treatment and Pumping Expansion •Round Rock Treated Supply –6MG/day –Pump Station, Tank & Line work •Southside WTP –Rehabilitation of valves, controls, filters •Hoover Pump Station •Stonewall Ranch Pump Station •Southwest Bypass –24” from new bridge to FM 2243 –Support to Leander and Escalara ESTs •Rehab Daniels Mountain Tanks Page 16 of 45 Wastewater •Berry Creek Interceptor •Edwards Aquifer Recharge Zone (EARZ) (TCEQ mandate) •San Gabriel Wastewater Treatment Plant Rehab •San Gabriel Interceptor (easements)Page 17 of 45 Solid Waste •Adopted Solid Waste Master Plan •Rehabbing Transfer Station •Expanding composting •Exploring concierge service in Downtown Existing Facility Page 18 of 45 Airport •Reliever airport for ABIA •$12.6 million in improvements –Runway lighting –Taxiways –Runway –Fuel tanks •139 jobs and a $20 million impact to economy Page 19 of 45 Roads •341 Lane Miles –Pavement Condition Index (PCI) –86 –Goal to maintain PCI of 85 •Quarter Cent Sales Tax for Street Maintenance –$3.5 million per year •Half Cent Sales Tax for 4B –Georgetown Transportation Enhancement Corp. •$105 voter approve bond in 2015 –Decade worth of projects –on track to complete in 7 years •Building new corridorsPage 20 of 45 Roads Diverging Diamond at Williams Drive (Begin 2021) Rivery Blvd. Extension (Completing this summer) Northwest Blvd. Bridge (Breaking ground this summer) Page 21 of 45 •2015 Road Bond –Streets ($12.3MM) –Sidewalks ($1MM) –Williams Drive @ Booty’s/Lakeway Intersection –Leander Road (Norwood to SW Bypass) –Southwestern Blvd (Raintree to SE Inner Loop) –Southwest Bypass (Wolf Ranch Pkwy to SH29) –Westinghouse & Scenic Lake Traffic Signal –NW Blvd Bridge (Austin to Rivery) –Sidewalks (Priority 1 –Downtown, Sun City Crosswalks) Roads Page 22 of 45 Austin Avenue Bridges •Improvement Plan –Rehab existing bridges –Construct separate pedestrian bridge (comply with ADA) •FY20 –Design of the improvements initiated •Seeking grant funds in the future (CAMPO/TxDOT) Page 23 of 45 Facilities, Fleet, Equipment •Public Safety –Police Department -Body Cameras ($800,000) –Fire Department -Cardiac Monitors & SCBA Replacement •Facilities –GMC Remodel –Fuel Station •Fleet –Public Safety Vehicle Replacement for police and fire –New Public Safety Vehicles for Police Page 24 of 45 2020 Budget Summary Page 25 of 45 Revenue •Tax rate –$0.42 (same as 2019) –3.6% over the effective rate –Shape debt/infrastructure plan to stay within current tax rate •Continued growth of 6.7% in sales tax and 3-4% growth in utility revenues •No rate increases for water, sewer, electric, drainage rates •$0.75 monthly residential sanitation rate increase due to TDS contract cost increase Page 26 of 45 Valuations and Tax Rate •Total assessed valuation is certified at $8.6 billion, which is an overall increase of 8.16% increase over last year •New value represents $345M, which is an increase of 38% –Commercial growth of $47M •Existing property increased 4.7% over last year •The average taxable home value is $285,357. This is an increase of $7,244 (2.6%) over the past year •At the proposed tax rate of $0.42, the estimated tax increase for the average homeowner ($285,357) would be $30.42 annually or a 2.6% increase. Page 27 of 45 Tax Rate History Year Tax Rate Ave. Home City Taxes Percent Change 2015 0.434 $ 210,200 $ 912 2016 0.434 $ 234,500 $ 1,018 11.6% 2017 0.424 $ 253,300 $ 1,074 5.5% 2018 0.42 $ 266,600 $ 1,120 4.3% 2019 0.42 $ 278,113 $ 1,168 4.3% 2020*0.42 $ 285,357 $ 1,198 2.6% Page 28 of 45 Sanitation Revenue •Sanitation increase 7.2%; $10.1 million •TDS Contract established in 2018 (5 year term) –Increase request provided in the contract based on cost indexes •No increase requested in FY2019 •4% contract cost increase requested by TDS for FY20 –Contract provides weighted average of 5 indexes, including CPI, cost of diesel, labor costs –Calculation per contract would allow up to 7% increase for period Jan 2017-Jan 2019 –Increase of 4% across all rate classes –$0.75 increase per month for residential customersPage 29 of 45 Return on Investment •10.75% increase from 2019 due to reduced electric ROI •2020 ROI totals $8.06 million –Water -$4.5 million –Stormwater -$260,000 –Electric -$4.5 million* *$1 million less than fiscal and budgetary requirement Page 30 of 45 Compensation •3% Salary increases budgeted, allocated based upon performance •Police and Fire compensation as outlined in Meet & Confer agreements •Market study conducted –117 benchmarked titles reviewed –29% of positions below market –~140 employees affected Page 31 of 45 Staffing •Public Safety –Two patrol officers, CID detective, community engagement officer, and 2 dispatchers; fire inspections –Opening Fire Stations 6 and 7 •Operational costs •Staffing costs continue to be partially funded through SAFER grant •Director of Communication and Public Engagement •Increase staffing in various areas experiencing growth –Code enforcement –Visitors Center –Purchasing –Library temp staffing support Page 32 of 45 Continue Current Initiatives •Workday –Implementation through staffing contracts and employee resources •Enhance existing software programs –Utility billing, asset management, records management •Measure and transform our work to improve service delivery –Performance Management Program (PMP) manager –Business Improvement Program (BIP) manager –Training coordinator in human resources –Contracts manager –provide review and accountability for contracts –MUDS, etc. Page 33 of 45 Reorganization to Improve Service Delivery •Enhance planning and focus on Electric and Water/Wastewater –Reclass General Manager/Assistant City Manager position to Electric General Manager –Reclassify Utility Director position to Director of Water Utilities •Enhance service intensive areas by adding Director of Community Services to oversee “high touch” areas –Animal Services, Code Enforcement, and Emergency Management Page 34 of 45 Reorganization •Meets goals of city management for FY2020 and beyond –Enhance service delivery –Focus on performance management –Provide ways for leadership and employees to grow –Financially feasible Page 35 of 45 Page 36 of 45 Risk Management Initiatives •Continued analysis and increase of city reserves from fiscal policy update in 2018 •Backup data center implementation; on- going improvements •Electric Fund/Long term contracts – develop risk management policy and protocols •IT security enhancements Page 37 of 45 Electric Fund •Operating revenues totals $91.4 million. –Includes full-year impact of the current PCA •Operating expenses total $84.5 million. –Net Purchased Power at $59.5 million. •Non operating revenues total $4.01 million of bond proceeds for capital improvements. •Non Operating expenses total $8.1 million for capital improvements and debt service. •Proposed enhancement: control center operator (cost split with water fund) •Projected ending fund balance of $8.7 million by end of FY2020. Page 38 of 45 Electric Fund (cont.) •Secured additional support and oversight with Schneider Engineering •Outsourcing management of energy portfolio. •Development of a comprehensive risk management policy. •Hiring a general manager dedicated to the electric utility. Page 39 of 45 Water Fund •Operating revenues totals $63.2 million. •Operating expenses total $40.4 million. •Non operating revenues total $18.6 million of bond proceeds for capital improvements. •Non Operating expenses total $87.1 million for capital improvements and debt service. –Several large FY2019 CIP projects re-appropriated in FY2020 include the Berry Creek interceptor and the Lake Water Plant •Projected ending fund balance of $21.8 million by end of FY2020. Page 40 of 45 Tourism/CVB •Revenues total $1.5 million; same as 2019 •Expenses total $1.4 million; 7% increase •Proposed enhancements total $106,786 which include: –Part-time staff for the Visitors Center –Additional funding for Red Poppy for security, shuttle service, and traffic control. –Increase in funding for the Christmas Stroll. –Funding for a community mural behind the Shotgun House. –Continue holiday lights at $60,000. •Projected ending fund balance of $1.5 million by end of FY2020. Page 41 of 45 Budget Summary •All funds total $437.6 million –3% decrease from the FY2019 amended budget. –Due to timing of large capital projects which includes a budget roll forward totaling $50.5 million. •Managing growth and services •Maintain a high quality of life •Building our fiscal strength •Emphasis on small town charm Page 42 of 45 Love Where You Live •Functional and Safe are important, but it doesn’t make you fall in Love with Georgetown •It’s important for cities not to get stuck in the “pothole” syndrome… •Small things can make a disproportionate impact…. City of GeorgetownPage 43 of 45 Small Town Charm •Main Street Program •Arts & Culture •PD CommUNITY initiative •Special Events –Parks –CVB –Library Page 44 of 45 City of Georgetown, Texas City Council Special Meeting September 3, 2019 S UBJEC T: P ubl i c Heari ng on the proposed 2019 P roperty Tax Rate used for the F Y2020 Annual B udget -- David Morgan, City Manager I T EM S UMMARY: The Texas Tax Code requires the City Council to hold two public hearings on the proposed tax rate prior to adoption if the proposed rate exceeds the lower of the effective or rollback tax rate. The 2019 proposed tax rate of $0.42000 exceeds the effective rate of $0.413261. The rate is required to fund F Y2020 City operating costs, debt service on bonds for infrastructure, and various enhancements to City services to meet the demands of growth in the community. The Council is not required to adopt this rate; however, this is the maximum rate the Council may consider as set by Council action on August 6, 2019. An overview of the tax calculation and related General Fund revenue and expenditure information was reviewed with Council at budget workshops held on J uly 17, and when the City Manager presented the P roposed Budget to Council on August 6. The proposed FY2020 Annual Budget is available with the City Secretary and on the City’s website at finance.georgetown.org. F I NANC I AL I MPAC T: N/A S UBMI T T ED BY: David Morgan, City Manager Page 45 of 45