2018 Budget and Five-Year Capital Improvement Plan

Transcription

1 Fiscal Year 2018 Budget and Five-Year Capital Improvement Plan

2 Making History in a Historic Town Solar Wind Turbines Downtown West Hillwood Groundbreaking Cedar Breaks Elevated Storage Tank Garey Park Groundbreaking Southwest Bypass

3 AGENDA Budget Legal Requirements Structure Process Budget Drivers and Areas of Focus Budget By Funds Revenues Operating Expenditure Highlights and Variances

4 BUDGET LEGAL REQUIREMENTS, STRUCTURE AND PROCESS FY2018 Annual Budget

5 City Charter Budget Workshop(s) shall be held within the City limits of Georgetown in meeting(s) open to the public prior to the adoption of the Budget. At least thirty (30) days prior to the end of each fiscal year the City Manager shall submit to the Council a proposed budget presenting a complete financial plan for the ensuing fiscal year. The budget shall be finally adopted not later than the twenty-seventh day of the last month of the fiscal year.

6 Budget Process To Date Council Goals established Strategies developed Budget impact evaluated for implementation Council budget workshops completed Public Safety, Transportation CIP, Parks Capital Improvements, Facilities CIP, Utilities CIP, Council Goals, Transit, Comp & Benefits Today and tomorrow are final workshops before City Manager proposed budget submitted on 7/25

7 Budget Workshops 7/11 & 7/12 Budget development is still a work in progress. Staff continue to review revenue estimates and expenditure requests. Prior to the proposed budget being finalized, it is important for the Council to see how elements of the budget are coming together. The workshops are an opportunity for the Council to generate discussion and give staff feedback.

8 Georgetown s Budgeted Funds Governments use a fund system of accounting A fund is an accounting device --balancing set of books to account for a specific area Funds demonstrate accountability and source/use rather than profitability Governmental Accounting Standards Board (GASB) guides fund accounting for governments Funds are set up by the Council depending upon restrictions/conditions placed upon the fund Budgetary compliance demonstrated by fund General Fund is for majority of traditional governmental services not restricted to be in another fund

9 Georgetown s Budgeted Funds Governmental Funds demonstrates flow of resources General Fund all departments not required to be in another fund; bread and butter govt. operations such as police, fire, streets, parks, library Debt Service Fund accounts for repayment of general debt General Capital Projects construction and acquisition of governmental assets Special Revenue Funds revenues restricted for a specific purpose

10 Georgetown s Budgeted Funds Proprietary Funds used for activities that are primarily supported by the activities; fees/user charges are designed to support their costs Enterprise (services to external customers) Electric, Water, Stormwater, Airport Internal Service (services to internal customers) Fleet, Facilities, Joint Services, Information Technology, Self-Insurance

11 Agenda Budget Theme Council Goals and related budget initiatives General Fund Revenues Tax Estimates Final Roll due on 7/25 Expenditures Department Highlights Capital Projects & Preliminary Debt Estimates Special Revenue Funds CVB, Street Maintenance, EMS, Council Discretionary Enterprise Funds Utility Funds - Electric, Water, Stormwater Airport Fund Internal Service Funds Joint Services, Facilities, Fleet, Information Technology Self Insurance Fund Summary and Direction from Council

12 Making History in a Historic Town Continued growth + long-term investments = Making history in a historic town The City is building upon a solid foundation Council s vision and goals represent a balanced approach to local government Life in Balance Legacy Projects that prepare for future growth Quality Growth Respecting our History Creating a Legacy for the Future

13 Key Budget Highlights Continued growth in sales tax Continued growth in new and existing property value property rate anticipated to decline Only fee increase is anticipated in our solid waste rate negotiating TDS contract renewal Continued investment in capital projects for infrastructure - $53M of new projects for FY18 Improving the fiscal health of all funds Building rate stabilization funds in Electric Recommending contingency funds for Airport Significant pay-off of start up costs in the EMS fund Setting aside $300K of on-going revenue to plan for the impact of future fire station #7 operations

14 Budget Drivers

15 Council Vision Georgetown is a safe, healthy, happy, connected, and truly diverse community where people can live, learn, work, retire, and play in an environment where we have ready access, throughout our lives, to arts, culture, essential services, and the natural environment. Our educated and skilled population, fiscally responsible governance, excellent infrastructure, and the beauty of our natural and man-made environments, attract new residents and businesses and enable us to create balanced and diverse employment centers and economic levels. Our strong sense of community connects us regardless of our cultural, age, ethnic, or economic differences.

16 Culture Georgetown is a truly diverse, vibrant, inclusive, and socially dynamic city where everyone has the opportunity to participate in, and benefit from, our economic, political, and social activities Employee Our outstanding and innovative City Employees work diligently to bring the Vision of Council to life and deliver exceptional services to our customers while exemplifying our Core Values Internal Process Our policies and procedures are easy to understand, and consistently and professionally applied. Our internal processes are effective, efficient, fair, inventive, and transparent, and make us a desired destination for residents and businesses Customer Anyone interacting with the City will have such a positive experience that they will tell everyone about it Financial To maintain a fiscal environment conducive to attaining the goals of the City Council Focus Areas

17 Council Goals & Budget Highlights 1. Attract, hire, develop and retain the best people, and compensate them for the value they create Compensation 3% average merit based increase effective in January 2018 Implementation of market increases No increases in health insurance premiums (self insurance fund) Continuation of tuition reimbursement program Update of employee survey in 2018 Continued emphasis on training and development 2. Create a Customer Service Mindset Branding, performance metrics Expansion of hours for Customer Care 3. Implement the special event and destination strategy Marketing and opening of Garey Park Increased conference transportation incentives in Convention and Visitors Bureau

18 Council Goals & Budget Highlights 4. Build and maintain an entertainment platform/venues Garey Park operations April 2018 opening 5. Expand and diversify the tax base (increase commercial percentage) Contract planning services for major projects Funding for analysis of economic development proposals Fiscal Impact Model completion in September 2017 South Georgetown TIRZ analysis complete in August 2017 Airport facility improvements

19 Council Goals & Budget Highlights 6. Accumulate funds to account for unfunded and unanticipated liabilities Increase in funding to Council SRF 7. Create a strategy to increase mobility Continued funding of major transportation CIP Transit voucher pilot program funding Increase in traffic analysis funding in Public Works Williams Drive study implementation Full year implementation of fixed-route transit Bike Master Plan CIP improvements Airport Road, NW Blvd/Rivery, FM 971

20 Council Goals and Budget Highlights 8. Attain and maintain superior public safety and enhance the perception of safety 3 Police officers (SRO/Patrol) Fire Station 6 design/construction and Station 7 preparation Major equipment SCBA and other safety equipment replacement Radio equipment (4 year plan) Fleet funding 9. Attract younger workers/young professionals to the Community Austin Young Chamber one time sponsorship Workplace culture initiatives

21 Council Goals and Budget Highlights 10. Improve communications and advertising Communications team Implementation from community branding vision process 11. Create and maintain outstanding aesthetics, and a welcoming appearance and spirit Increased ROW maintenance

22 Council Goals and Budget Highlights 12. Create an asset maintenance and revitalization plan Increased funding for Right of Way maintenance Implement strategies from Street Maintenance working group Begin SRF and ISF funding to set aside capital replacement for Garey Park assets Funded Enterprise Resource Planning software for Finance & Human Resources Continued implementation of Customer Information System Continued funding of Internal Service Fund replacements for IT, Facilities and Fleet Increased aquatics maintenance staff person to respond to new facilities Human resources staffing, training, compensation, equipment, safety

23 Council Goals and Budget Highlights 13. Create Comprehensive Annexation Strategy Completion of Fiscal Impact Model in September 2017 Comprehensive Plan Update Starting Fall Monitor, promote, and communicate a long-term water and utilities plan and strategy Electric Rate Study Capital Project Implementation of Water/Wastewater Infrastructure Development

24 Budget Drivers Population Growth 3 rd year in a row to be in the top 5 in growth 5.5% annual growth Over 40% growth since ,000 Population - U.S. Census Data 70,000 60,000 50,000 48,004 50,320 52,553 54,895 59,099 63,639 67,140 40,000 30,000 28,339 20,000 10,

25 Development Requests Comparison of Submitted Development Applications Rezoning Requests Site Plans Certificate of Design and Appropriateness Preliminary Plats Final Plats Municipal Utility District Requests Annexation Zoning Subdivision Platting Site Development Plan Building Permit Certificate of Occupancy

26 Growth Impacts/Budget Highlights Engineering contract support position Open Records processing coordinator Office support at West Side Service Center Increases in landscape maintenance contract (Parks) Contract planning and plan review services Project-based to expedite review Inspection services contracted during peak times

27 Growth Impacts/Budget Highlights Police positions Meter Tech Water crew Expansion of hours in Customer Care ERP support Sanitation contract negotiations

28 Implement Key Initiatives Downtown West Garey Park Groundbreaking Southwest Bypass

29 Implement Key Initiatives Garey Park opening April full-time positions; 1.5 part-time San Gabriel Park phased renovation Enterprise Resource Planning system 3 positions IT, Finance and HR Downtown West Construction begins Fall 2017

30 Implement Key Initiatives Transportation initiatives Northwest Blvd/971/Rivery Extension NW Boulevard Bridge - $10.5M Rivery - Williams to NW Blvd - $4.5M FM $3.9M

31 Implement Key Initiatives Transportation initiatives Leander Road design - $1.55M FM $1.95M

32 Implement Key Initiatives Transportation initiatives - sidewalks Austin Avenue HWY 29 to $300K Rock Street - $23K Phase II signal and ramp improvements - $253K

33 Implement Key Initiatives Solid Waste and Recycling Solid Waste Master Plan Transfer Station Study Increases related to events and programs Medication take back program, household hazardous waste, recycling at festivals

34 GENERAL FUND FY2018 Annual Budget

35 General Fund FY 17 - Overall expenditures under budget at $58.8M Slightly less than budget of $59M FY 17 Projected revenues $1.6M higher than budget 3% more than $57.5M budgeted

36 Sales Tax Revenue FY17: $13.7M 7.9% more than budget FY18: $14.3M 4% over projection Continued growth in retail, food and informational sectors

37 General Fund Fund Balance $1.9M in projected fund balance above required contingency Preliminary $1M towards Council Discretionary in 2018 budget $750,000 in 2017 $515,000 in 2016 $575,000 increase in the FY day contingency required by policy Remaining $300,000 for one time expenses in FY2018

38 Where the Money Comes From/Goes General Fund

39 Property Tax Revenue FY2018 General Fund $13.4M in 2018 Debt Service Fund $13.1M in 2018 Exploring early defeasance of debt Estimated tax rate at or below existing rate Continue to refine as tax roll is certified $800M still under protest review as of 7/2

40 Utility ROI and Other Revenue Return on Investment - the community s return for owning its own utilities Increasing due to customer growth Development revenue projected to continue to follow current trends Sanitation revenue - Contracted services for trash and recycling Revenue anticipated due to likely fee increases related to contract renewal Other revenues - continue to increase or remain stable

41 General Fund Analysis Year to Year Comparison on expenditures 7.6% increase in overall expenditures Includes two major increases Less: Increase due to expected Sanitation contract rate Less: Increase due to Garey Park Operations increase in overall expenditures Increase of 5% net of those two areas Less than census population growth of 5.5%

42 Operating Budget Highlights Police Department Step and increases based upon meet and confer discussions included in base 3 officers (One School Resource Officer - 50% funded by GISD)

43 Operating Budget Highlights Fire Department Step increases based upon meet and confer discussions included in base Promotional assessment centers Increases in operations based upon volume of calls Equipment replacement: Breathing apparatus Dispatch monitors Protective equipment Up 8.2% from last year. Up 32.5% from two years ago.

44 Operating Budget Highlights Parks and Recreation Garey Park operations Aquatics Maintenance worker Landscape and other increases due to growth Arts and Culture Funding for part-time Arts And Culture Coordinator Garey Park trail

45 Operating Budget Highlights Inspections Increased training to build staff competency Hiring of key positions in FY2017 Contract review for plans during peak times Contracted Inspections to assist in reducing waiting time for inspections Number of Building Inspections 4,028 2,755 3,546 3,550 3,473 3,531 3,614 3,625 3,474 3,453 3,385 3,119 2,749 2,410 2,456 2,181 2,354 2,410 3,509 3,466 3,304 3,295 2,859 2,577 OCT NOV DEC JAN FEB MAR APR MAY FY2015 FY2016 FY2017

46 Operating Budget Highlights Public Works Funding for transit budget increases the base budget by $175K; offset by Georgetown Health Foundation grant Voucher study for transit $25K (one time) Bike study for $44K Traffic Analysis $25K

47 One Time- General Fund One time strategy using recurring revenue to begin planning for operational impact of Fire Station #7 Comprehensive Plan $153K Historic Records Preservation $55K JAWS ADA software library $3K Garey Park Opening activities $15K Master Bike Plan $44K Austin Young Chamber sponsorship $5K Voucher/Transit Study $25K Total $300K

48 Council SRF FY2017 Available Fund balance 1,920,473 Projected Interest earnings FY17 2, Unbudgeted Obligations One-time cost Havins property plat $ 25,000 LCRA Transmission Lines $ 80,000 Study for aquatics $ 20,000 Speedy Stop Sign litigation $ 95,000 Marketing downtown buildings $ 30,000 Subtotal $ 250,000 Unfunded Liabilities/Other One-time cost Economic Uncertainty Reserve $ 650,000 ERP Project $ 250,000 Street Maintenance $ 250,000 Benefit Payout Reserve (Comp Ab) $ 222,000 Subtotal $ 1,372,000 **At time of preparation - does not include hospice study Available Fund Balance $ 300,473

49 Transfers to Council SRF/Balances $300K in fund balance $1,000,000 projected transfer in FY2018 Final number provided after 2017 year-end audit $1.3M projected fund balance for FY18

50 GENERAL CAPITAL PROJECTS

51 General Capital Projects - Parks San Gabriel Park - $3.5M Phase II Construction Re-define Phase II based on opportunities for the festival area in connection with the community center for design of Phase III Contain construction between Morrow Street and the San Gabriel River to reduce park interruptions Design services for Phase III

52 General Capital Projects - Parks Trail extension Katy Crossing from SG Park to Katy Crossing Subdivision - $500K $200K funded through Parks and Wildlife grant Parks ADA - $150K Phased implementation

53 General Capital Projects Transportation NW Blvd Bridge $10.75M Rivery Williams to NW Blvd $4.25M FM 971 $3.9M Leander Road design and ROW $1.55M FM 1460 close out $750K Total $21.2M

54 General Capital Projects Transportation/Sidewalks Austin Avenue 29 to 2243 $300K Rock Street $23K Phase II Signals and Ramps $253K Total $576K

55 General Capital Projects Facilities Fire Station 6 - FF&E $300K Fire Station 7 - planning & site $600K Design for CVB (HOT funded) $100K GMC Assessment $100K Review campus and future needs Downtown West signage $125K ADA transition phased $150K Animal Service site evaluation $100K Downtown Parking expansion $250K Total $1.725M

56 DEBT FY2018 Annual Budget

57 Spring 2018 Preliminary Debt Issue General Obligation Bonds/Authorizations 2008 Parks $4.0M 2008 Transportation $5.85M Includes Inner Peace ROW 2015 Transportation $16.5M Total GO $26.4M

58 Spring 2018 Preliminary Debt Issue Certificates of Obligation Enterprise Resource Planning Software $2.7M Amortize over 7 years 800 MHz Radio replacement phase II $0.5M Amortize over 5 to 8 years Public safety vehicles $1.74M Amortize over 5 years Sidewalks $0.5M Facilities $1.7M Total CO $7.3M

59 Spring 2018 Preliminary Debt Issue Self Supporting Debt Airport $150K Stormwater $900K Utility Debt Electric CIP $6.5M

60 Spring 2018 Preliminary Debt Issue General Obligation Cert of Obligation Self Supporting Debt Utility Debt $26.4M $7.3M $1.0M $6.5M Total $41.3M

61 SPECIAL REVENUE FUNDS

62 Operating SRFs Major Operating Funds CVB/Hotel Occupancy Tax Paramedic Fund Street Maintenance Fund GTEC and GEDCO Other donation/grant/dedicated funds Parks, trees, animal shelter donations, library donations

63 Convention & Visitors Bureau Fund Collects Local Hotel Occupancy Tax of 7% Use is restricted by state law Used to fund visitor center and promote the City New Funding Conference shuttle/special event shuttles Arts and culture grants paid from HOT funds Reserve for capital for Visitor Center relocation

64 Paramedic Fund FY17 Projected Revenue $2.4M 10.7% increase over budget New billing vendor FY17 Expenses increased demand FY17 Expenses on budget at $2M FY18 Expenses $2M no major changes FY18 Estimated Revenue $2.5M Assumes 13 transports per day with collection rate of $450 per call Improvement in reducing the negative fund balance Starting to reserve $300k for future ambulance capital replacement Billing fees currently under review Proposal for addition of a subscription based service

65 ELECTRIC SERVICES FUND

66 Electric Fund FY 17 ending projected balances Revenues for FY17 are slightly higher than budget Purchased power expenses are 16% higher due to excess generation being sold into a depressed wholesale market and milder weather conditions Ending 2017 budget fund balance at $12.1M Includes $5M contingency Includes $4.5M rate stabilization reserve

67 Electric Fund FY18 - Operating revenues budgeted to increase 1% due to customer growth Purchased power consistent with FY17 year end projection July 2018 projection for 100% renewable Fund balance projected to be $10.6M Increases rate stabilization funds to $5.5M Increases contingency to $5.1M

68 Electric Fund Key Initiatives/Growth Substation testing equipment $85K Reliability testing and maintenance Reduces contracted cost in the future Meter Technician and equipment $107K Reduces future labor savings for customer care and metering Rate Study $40K Update of 2012 study

69 WATER SERVICES FUND

70 Water Services Fund FY17 - Operating revenues at $49.8M or 6% higher than budgeted due to continued growth Capital recovery (impact) fees higher Operating expenditures at 4.6% less than budget Begin savings from in-house operations

71 Water Services Fund FY18 Decrease in overall revenue to anticipate a slow down in growth (impact fees) FY18 Increase in operations of 6% Impact of new Customer Information System Meter replacement project - $420k Water Services crew - $175 Rate increase likely in FY2019 Impact of new treatment capacity and water supply

72 OTHER ENTERPRISE FUNDS

73 Airport Fund FY17 revenues slightly less (1.9%) than budget due to depressed fuel prices in market; offset by higher volumes sold FY17- expenditures 3.35% less due to lower fuel Fund balance of $436K Allows fund to provide its own Contingency requirement

74 Airport Fund FY18 revenues projected to increase based on projected fuel price increase Also increases cost of fuel New funding for service truck and mowers to improve staff effectiveness for routine airport maintenance

75 Airport Fund FY18 Capital Improvements $150K Taxiway Edge lighting (funded by self supported bonds) Runway 18/36 Rehab ($16,500) Ramp Rehab ($15,000) Pavement Maintenance ($40,000) Hangar Maintenance ($33,000)

76 Stormwater Fund FY17 projections revenues are 1% higher and expenses 2.6% less FY18 increase to revenue by 1.8% due to growth Operational expenses decrease due to transfer of a technician to the General fund Self supported bonds fund Curb & Gutter - $500,000 Serenada Culvert Improvements - $200,000 Stormwater Infrastructure - $200,000 Ongoing TWDB Flood Protection Planning Study due for completion December 31, 2017

77 INTERNAL SERVICE FUNDS

78 Joint Services Fund Provides services to all departments Legal, HR, Finance, Accounting, Purchasing, Customer Care, GUS Administration, Engineering New Funding 2 positions to support ERP Software in Finance and HR $160K Internal Controls Study $50K Expanded Customer Care call center hours $60K GUS Office Specialist $50K Contract Coordinator for Engineering $95K

79 Information Technology Provides technology support to all departments Updated allocation methodology based upon best practices and use of systems Includes partial funding for capital replacement Full funding of capital replacement to be phased in over 2-3 years New Funding IT support staff for Finance/HR software Increases due to new systems/contracted support Two-factor authentication security

80 Self Insurance Fund Accounts for revenues and expenses related to employee health benefits FY 2017 projected ending balance of $1.2M higher than anticipated Worked with GGAF and consultants on reserves Rate Stabilization Reserve - $1.1M Incurred But Not Reported (claims) - $556K No FY18 rate increases for employee or employer Ending FY18 anticipated Fund Balance - $1.5M

81 Next Steps

82 Budget Schedule July 25 City Manager s Proposed Budget August 8 1 st Public Hearing on Budget and Tax Rate August 15 2 nd Public Hearing on Budget and Tax Rate August 22 1 st Reading of Budget Ordinance September 12 2 nd Reading of Budget Ordinance

83 Public Outreach and Education Current - draft workbooks posted on website Future - proposed Budget (7/25) posted City website and ebook at Library; Facebook Budget Video summary of proposed budget Press release on proposed budget Public Hearings on Proposed Budget on 8/8 and 8/15 Ordinance readings at public meetings 8/22 and 9/12 Adopted Budget in Brief published/on website Adopted Budget (full book) published/on website/library Budget Video on Adopted Budget on website/social media

84 Summary Budget continues the legacy projects and growth related initiatives set forth by the Council Progress on Council goals Continued growth driving increases in operational costs in utilities, public safety and other areas 20 new positions related to new initiatives and growth Major CIP initiatives to continue to address growth $53M in CIP Major transportation projects to alleviate congestion Completion of SW Bypass, Downtown West, Garey Parks, San Gabriel Park

85 Summary Budget strengthens the City s financial position Continued strong sales tax Continued growth in new and existing property value Anticipate property tax rate at or lower than current rate Fee increase is anticipated in our solid waste rate, negotiating TDS contract renewal EMS fees currently under review Community center fees under review Improving the fiscal health of all funds

86 Feedback and Questions Next Step: Work through detailed budget book