HomeMy WebLinkAboutAgenda CC 05.11.2010 WorkshopNotice of Meeting of the
Governing Body of the
City of Georgetown, Texas
MAY 119 2010
The Georgetown City Council will meet on MAY 11, 2010 at 3:00 P.M. at Council Chambers at 101 E. 7th
Street
If you need accommodations for a disability, please notify the city in advance.
Policy Development/Review Workshop -
A Presentation of issues outlined in the Mid Year Budget Update -- Micki Rundell, Chief Financial
Officer, Paul Brandenburg, City Manager
B Workshop discussion and possible action regarding the upcoming 2010/11 budget priorities and annual
budget process -- Laurie Brewer, Assistant Director of Finance, Micki. Rundell, Chief Financial Officer,
and Paul Brandenburg, City Manager
C Fire and ESD Workshop -- Robert Fite, Fire Chief
1 t
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the items listed below will be discussed in closed session and are subject to action in the regular
session.
D Sec 551.071: Consultation with Attorney
1. Advise from attorney about pending or contemplated litigation and other matters on which the
attorney has a duty to advise the City Council, including this week's agenda items
2. To discuss with the City Attorney and Kent Sick the pending condemnation litigation pertaining to
Honeycutt et. al. Cause No. 10.0277-CC4
E Sec 551.072: Deliberations about Real Property
1. Discuss the value of land as it pertains to prospective Fire Station sites
F Sec. 551.074 Personnel Matters
1. To discuss with the City Attorney his evaluation
r r1
Certificate of Posting
I, Jessica Hamilton, 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 , 2009, at , and remained so posted for at least
72 continuous hours preceding the scheduled time of said meeting.
Jessica Hamilton, City Secretary
City of Georgetown, Texas
May 11, 2010
SUBJECT:
Presentation of issues outlined in the Mid Year Budget Update -- Micki Rundell, Chief Financial
Officer, Paul Brandenburg, City Manager
ITEM SUMMARY:
Provide overview of the City's financial status as of Mid -Year 2010. This presentation will include:
§ An overview of the current financial conditions
General Fund revenue shortages
§ Potential decrease in projected ending fund balance.
Utility projections
Areas of concern
§ 2010/11 Budget Preview
§ Key dates in the upcoming budget process
COMMENTS:
As of Mid -Year, the financial projection is cautionary. While operating revenues are holding steady, and
expenses are at or less then budget, other revenue adjustments will be made that will impact the ending year
projected fund balance. These adjustments include recognition of an adjustment to the General Fund balance
for revenue that should have been recorded on the balance sheet as an offset to the Wolf Ranch PID
receivable in 2009. Other revenue shortfalls relate to lower than anticipated franchise fee revenue from
Atmos (due to lower gas costs in the reporting period), reduction in revenue for hydrant testing, and lower
interest income.
For the General Fund, these shortages will not impact the current year operations, as ending fund balance
was budgeted to be $1.1M, and is projected to be $636,046. This decrease in fund balance will impact the
2010/11 budget. Currently, there is an operating shortfall for 2010/11 of $1.2M. Any ending fund balance
could be used to offset this variance, in which case, it would not be available to buy down the 2010/11 debt
service to be included in the 2011 tax rate. Information contained in the presentation will be presented to
City Council at the May 10 Council Meeting.
FINANCIAL IMPACT:
SUBMITTED BY:
ATTACHMENTS:
Presentation
Cover Memo
Item # A
Attachment number 1
Page 1 of 16
Provide overview of Financial Conditions
General Fund
* Revenue /Expenditure Review
Budget shortfall
Utility Funds
Revenue review and Year End projected balances
Updated projections — March 31
Revenues/expense projections adjusted
Preview 2010/11 Budget
Item # A
Attachment number 1
Page 2 of 16
uia �N..3
10 General Fund""� Verview
YE revenues expected to be as much as $868K less
than budget
Variance = $516K less than expected in projected
fund balance
Original budgeted ending fund balance - $1,152,268
Updated projection of $636, 046 in unreserved fund
balance
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t eneraI Func �� r` s
Property tax
Thru March — 93.7% 2010 levy collected
PY March 09 = 93.97% collected
Sales tax (5 months)
Oct thru February = (-.32%) YTD
Feb 2010 = (-4.08%) compared to Feb 2009
Better than surrounding communities
Wolf Ranch — slightly up through February
Item # A
Attachment number 1
Page 3 of 16
Sales a .ss.. rends w
tC1 ft.irfityC, u`ra. =.,_4S+j�rtt*r NOW,,n u
�s
evelopmen����i�ru es
Total development related revenues up4.6%
over prior year thru March (but less than
budgeted)
Residential building permits
Up 9% over prior year
249 permits in 2010 vs 229 in 2009
Development applications filed
Down 41 % from last year
77 applications in 2010 vs 130 in 2009
Item # A
3
Attachment number 1
Page 4 of 16
Item # A
M
Attachment number 1
Page 5 of 16
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Other ���ue�_
Court Fines — up 1.28% through March
6094 cases in 2010.vs 6043 PY
Other revenues
Interest income less due to market conditions
Library revenues off slightly
Recreation revenues higher than anticipated
Other factors affecting fund balance
Fire hydrant testing. change in .program (-$215k):::
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Item # A
Attachment number 1
Page 6 of 16
Park`& Rec - 52% increase or $200k higher than
projected
7,628 Rec Center memberships sold thru Mar
ROI/Franchise Fees
3.6% down from prior year
ROI & System franchise fees holding steady
Atmos down $150k due to lower gas prices
Gas prices down 30% from 2 years ago
Item # A
n.
Attachment number 1
Page 7 of 16
`�Expenditure Savings
Personnel cost savings due to Vacancies
Budgeted vacancy factor of $195,000
Actual Savings of 491,763
Total budget savings = $296,763
Non frozen positions
11 Fire and Police
Unreserved Ending Balance
FY 2010 Budgeted Ending Fund Balance = $1,152,268
FY 2010 Projected Ending Fund Balance = $636,046
Beginning fund balance $269,635 higher than anticipated
Correction to be made for refund of project costs for 135 frontage
road from TxDot - ($370,056)
Revenue Shortfalls ($868,216)
Expenditure Savings +$452,415 (including vacancy)
Item # A
Attachment number 1
Page 8 of 16
U
£t,,Ending Balance
Revenue Shortfalls ($868,216)
* Sanitation - $302K less offset by expense savings(no impact to
ending fund balance)
* Franchise revenue — less in Atmos offset by increase in electric
* Development revenue - $250K (contingency revenue of $100K
offset by expense)
* Interest revenue - $155K
* Change in water hydrant testing program - $215K
TM».ew.aw.,w.
onclusion —£ e` era x, and
Revenues continue to lag
Expenses are being monitored closely to any
potential savings
Projections are realistic
Current Frozen positions will remain frozen
Results in less funds available to buy down debt
portion of tax rate for 2010/11
Item # A
Attachment number 1
Page 9 of 16
,�:�
'Utility Funds -XR, ues
Electric — overall 7.23% over prior year
System growth and higher Power Cost Adjustment in
current year
Wastewater revenue - less than projected
Slower customer growth
Water — 2025% less than projected
Wetter winter and spring in current year compared to
drought conditions in2008/09
Summer weather will impact revenues and related
costs
*!w h
.-.<,
ttt
ilities Revenue'ryG0r arison
70
0
0
40
Electric
0 Water
20 Wastewater
10
0 FY04 FY05 FY05 FY07 FY08 FY09 Proj FYI
Item # A
9
Attachment number 1
Page 10 of 16
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Expenses are withinbudget
Operating saving in fuel costs
Weather will impact revenue related expenses
Purchased Power lower than budgeted
* Lower natural gas prices
* $1.5 million adjustment to electric contract with LCRA recognized
for prior year "pay as you go"
LCRA billing error
Item # A
Me
Attachment number 1
Page 11 of 16
�r y,
Airport - Revenues and expenses within
budget
Tourism
Hotel tax revenue is 17.32% lower than 2009
* Increased vacancies due to economic conditions
* New properties planned to open later in 2010
* Close of Holiday Inn Express for renovation
Stormwater
Revenues slightly less due to slower growth
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11 �:_ p
Item # A
11
Attachment number 1
Page 12 of 16
Property Taxes
Estimated Assessed Valuation - $4.2 billion
Existing values expected to be slightly lower
Offset by:
New property added to role
Appraisal Review Board 2009/10 property certified at
60% - actually comes in slightly higher (but accounted
for in the current year revenue)
Prior year valuation $4.2 billion
Preliminary numbers expected WCAD Mid -May
New property estimated at $200 million
Decrease in sales tax impacts effective rate
Less "property tax relief" from sales taxes
Item # A
WA
Attachment number 1
Page 13 of 16
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/11 Genera
Sales taxes
Slight growth expected in "net" sales tax
* Estimated 2009/10 revenues projected at 2% higher than FY
10
* $178,000 of additional revenue
Development Revenue
Revenue expected to stay the same
Delayed recovery in; construction economy
Recreation Revenue
Projected with same level of programs as current year
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st
Budget Shortfall currently projected of $1.2M+
Health insurance increase estimated at 15%
Impact less due to HDHP implemented last year
Step increases included for civil serviceemployees
Minimal fund balance to offset debt service tax rate
increase as in FY 2010
No projected fund balance to address one-time safety
projects or other needs
*`Fully funding TMRS contribution for 2010/11
EXPENSE SAVINGS:
Continue to freeze" non -essential" spending
* Continue "Frozen" positions
Item # A
13
Attachment number 1
Page 14 of 16
Increased revenue and related contract expenses are
due to system growth
* Cost savings in purchased power
* Minimal growth in staffing for utility needs
* Development related revenues flat
m Economic recovery extended to 2012
$20+ million in Utility Capital Projects
* Funded through combination cash and debt
. Estimated Debt = $4 million
* SIP fees used for water plants
Review rates to ensure cost recovery
ny2010/11 Budget Conclusion
#1 GOAL - MAINTAIN SERVICE LEVELS
"Tighter" budget year
Maintain "Status Quo"
2 new positions — Recreation Center
Revenue neutral
No new programs
Limited spending
No new possibly declining revenues
Do the same with less
Item # A
M
Attachment number 1
Page 15 of 16
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CIP Presentation — June 8
Utility Capital
Advisory Board reviews in May
Fee reviews
* W/WW impact fees
* Roadway impact fees being considered
City Manager balances "Core" budget
Assumes No tax increase
2010/11 Budget Workbooks -Council June 30
Council Workshop - review City Manager's budget
July 12 & July 13 (July 26 finalize)
Tax roles certified July 23
Finalize proposed 2010/11 Tax Rate & set public
hearings July 27 — Special Meeting
August — tax public hearing & notification process
August 10 & August 17 public hearing dates
August 24th public hearing on the 201012011 Budget
First Reading Budget & Tax Ordinances — August 24
- Special Meeting
Item # A
im
Attachment number 1
Page 16 of 16
Item # A
City of Georgetown, Texas
May 11, 2010
SUBJECT:
Workshop discussion and possible action regarding the upcoming 2010/11 budget priorities and annual
budget process -- Laurie Brewer, Assistant Director of Finance, Micki Rundell, Chief Financial Officer,
and Paul Brandenburg, City Manager
ITEM SUMMARY:
This workshop is continuation of the budget setting priority process that began in March. Collectively, staff
has been developing strategies to implement the priorities listed below. This workshop focuses on the
priority to "Increase operational efficiency and financial integrity". Due to the financial conditions
impacting the budget, the opportunity to implement many of these strategies will be limited. Therefore, the
information gathered during this process will be formatted into a citywide 5 year Strategic Plan to be
implemented when funds or other resources are available.
Overview of the process:
In 2008, the City adopted the 2030 Plan as its master comprehensive plan. The 2030 Plan defines "what" the
community should be in 2030, outlining the character and quality of life that the future citizens of
Georgetown will experience. Yet, the 2030 Plan does not provide "how" the City should get from where it is
today to where it will be in 2030. The Plan itself doesn't determine specific goals or strategies needed for
implementation, therefore, the priorities that the City Council sets through its annual budgeting process
should in some way further the implementation of the Plan. Over the last three years, the City has focused on
12 basic "goal" or priority areas within the Annual Budget. Each one of these areas in some way furthers the
implementation of the Plan. From these 12 key goals, strategies will be developed within the context of the
budget. These Priority Areas are:
A. Continue revitalization and economic development
B. Alleviate traffic congestion
C. Continue implementation of the Downtown Master Plan
D. Improve quality of services while keeping property taxes low
E. Improve emergency response levels
F. Expand and coordinate Parks and Recreation system
G. Continue efforts for community long-range planning
H. Encourage and support Affordable Housing programs
I. Expand recycling opportunities and environmental program initiatives
J. Ensure adequate staffing and competitive compensation for all employees
K. Continue implementation of the City's Facility Plan
L. Increase operational efficiency and financial integrity
During this process, City Council can determine if these 12 goals are still relevant for implementing the 2030
Plan, and make additions and deletions as needed based upon feedback from the 2010 Quality of Life
Survey. From this process, the 2010/11 Annual Budget will be prepared. Council may also choose to give
feedback on specific strategies that are desired for the upcoming fiscal year. Staff will present strategies on
several of the areas that were identified in the citizen survey.
COMMENTS:
This discussion continues the discussion from previous workshops on Council priorities.
FINANCIAL IMPACT:
SUBMITTED BY:
Micki Rundell
ATTACHMENTS:
Presentation
Cover Memo
Item # B
Attachment number 1
Page 1 of 4
Council Workshop
May 11, 2010
2010/11 Priorities
Increase operational efficiency and financial
integrity
Implement vendor evaluation at the end of each
contract, especially for renewals to ensure the use
of the most qualified vendors at the best cost
:j Enhance desktop support through virtualization
program
u Implement utility office call center and develop
protocols to manage customer call volume
Item # B
Attachment number 1
Page 2 of 4
20"10111 Priorities
Increase operational efficiency and financial
integrity
ii Evaluate and plan for implementation of a new
financial system
o Expand recreation on-line registration process to
increase efficiency and customer service
,j Develop and implement an on-line request system
• mapping/GIS customers
o Implement video streaming equipment for public
meetings and events to enhance communication
with the public
Increase operational • and financial
integrity
o Expand Muni -Agenda program to other ••.
and commissions to increase efficiency and
reduce costs
,j Address records management needs through
technology
ca Review economic development marketing
expenditures to ensure marketing meets set cost
benefit criteria
o Provide • •- analysis for electric
- ----- --contraGted-s-ervices--to-determi-ne-whiGh-ser v-ices-.---
are best provided •
Item # B
Attachment number 1
Page 3 of 4
2010/11 Priorities
Increase operational efficiency and financial
integrity
u Install energy management systems on additional
facilities to comply with SECO requirements
Establish plan for five year CIP to implement fiber
and signal system upgrades to improve traffic
congestion and minimize lost soft costs
Li Implement new Customer Information System
software to increase customer service
Lj Coordinate update of the facilities plan to ensure
operational efficiency by consolidating city
2010/11 Priorities
Increase operational efficiency and financial
integrity
u Continue to expand the internal control program
:i Analyze benefit of replacing city vehicles with
electric and propane vehicles
* Plan for decommissioning of the City's fuel station
in San Gabriel Park
* Continue to research opportunities for shared
services with other local governments
Item # B
Attachment number 1
Page 4 of 4
2010/11 Priorities
Increase operational eNiciency and financial
integrity
u Evaluate the pilot system for LED lighting to
determine opportunities for future savings
ci Expand renewable energy program
* Expand conservation programs
* Develop an RFP for solid waste and recycling
services to increase services and contain costs
Lj Increase web based advertising and reduce print
media advertising costs
o Review op rtunities to facilitate plan elements of
0
the 2030 plan in house
2010/11 Priorities
Increase operational efficiency and financial
integrity
Review opportunities to expand social media to
increase communication and reduce print media
costs
o Prepare for election to renew street maintenance
sales tax
Item # B
City of Georgetown, Texas
May 11, 2010
SUBJECT:
Fire and ESD Workshop -- Robert Fite, Fire Chief
ITEM SUMMARY:
This presentation will cover the current Fire Department Operation and future considerations for service. In
addition, The Emergency Service District #8 (ESD8) will present their current operation and contractual
relationship with the Georgetown Fire Department and City of Georgetown.
FINANCIAL IMPACT:
None
SUBMITTED BY:
Robert Fite, Fire Chief
Cover Memo
Item # C
City of Georgetown, Texas
May 11, 2010
Sec 551.071: Consultation with Attorney
1. Advice from attorney about pending or contemplated litigation and other matters on which the attorney has
a duty to advise the City Council, including this week's agenda items
2. To discuss with the City Attorney and Kent Sick the pending condemnation litigation pertaining to
Honeycutt et. al. Cause No. 10.0277-CC4
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Rachel Saucier
Cover Memo
Item # D
City of Georgetown, Texas
May 11, 2010
SUBJECT:
Sec 551.072: Deliberations about Real Property
1. Discuss the value of land as it pertains to prospective Fire Station sites
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Rachel Saucier
Cover Memo
Item # E
City of Georgetown, Texas
May 11, 2010
SUBJECT:
Sec. 551.074 Personnel Matters
1. To discuss with the City Attorney his evaluation
ITEM SUMMARY:
FINANCIAL IMPACT:
SUBMITTED BY:
Rachel Saucier
Cover Memo
Item # F