2017 Budget and and Fi Five-Year C r Capi pital I Improvement P - - PowerPoint PPT Presentation

FY2017 Annual Budget

Fiscal Y l Year ear

2017 Budget

and and Fi Five-Year C r Capi pital I Improvement P Plan

FY2017 Annual Budget

Overview

• The City Council completed budget workshops on July

12th and 13th providing important feedback and direction to staff for developing the proposed budget.

• Following these workshops, city staff evaluated final

revenue estimates and expenditure projections for FY 2016/17 and included the City Council’s feedback to develop the City Manager’s Proposed Budget.

• The proposed budget was filed with the City Secretary
• n Friday, July 22th in compliance with the City Charter.

FY2017 Annual Budget

Budget Theme

Implement Council Goals Continue with Key Initiatives Response to

Issues of

Growth

FY2017 Annual Budget

Development Pipeline Map

• US Census recently declared:

Georgetown is the fastest growing City over 50,000 in the nation

• Growth rate: 7.8%

FY2017 Annual Budget

Built Environment– Residential

Fiscal Year 2016 (projected)

• 731 - In-city new single-family starts
• 906 - In-city multi-family unit starts
• 405 - ETJ new single-family starts
• 800 - new platted residential lots

Fiscal Year 2017 (projected)

• 800 - In-city new single-family starts
• 350 - In-city multi-family unit starts
• 450 - ETJ new single-family starts
• 900 - new platted residential lots

FY2017 Annual Budget

Council Goals

Council Goals

Promote a Culture of Inclusion and Opportunity Attract and Retain Quality Employees Improved Internal Process Produce a Customer Service Organization Ensure Financial Stewardship

FY2017 Annual Budget

Continue Key Initiatives

• Major transportation improvements

– Southwest Bypass – Mays Street extension – FM1460 – Austin Avenue bridges – Rivery Boulevard extension planning

• Transit planning
• Retail Study
• Williams Drive Corridor Study
• Implement Customer Information System (CIS)

FY2017 Annual Budget

Continue Key Initiatives

• Parks and Quality of Life

– Garey Park – construction in 2017 – San Gabriel park – Phase I construction

• Conference center – coordination with

Sheraton for marketing and sales

• First Year of EMS Operations

FY2017 Annual Budget

Continue Key Initiatives

• Utility growth

– Western District consolidation – Major water and wastewater infrastructure – Municipal Utility District requests – Transfer station upgrades/planning

• Sanitation contract negotiations

– Transfer station upgrade

planning

FY2017 Annual Budget

Areas of Focus

• Assuring quality growth
• Continued increase in maintenance of existing

assets

• Implement voter approved bond projects and

limit tax rate impact

• Award winning downtown and parks –

maintain quality of life and small town charm

• Plan for next phases of growth

FY2017 Annual Budget

Key Elements for the FY 2017 Budget

• The City Manager’s Proposed budget totals

$325 325,48 485, 5,27 272 in expenditures the FY2017 Municipal Budget which represents a 8.7% decrease from the FY2016 adjusted budget

– Variance due to capital projects

• General Fund:

– The General Fund is proposed with total revenues

• f $56,063,595 and expenditures of $57,

57,492, 492,644 44 which represents a 4.8% increase over FY2016

FY2017 Annual Budget

GENE

NERA RAL FUND ND

FY2017 Annual Budget

Key Elements for the FY2017 Budget: General Fund

• Property Tax Valuations:

– Total assessed valuation is certified at 6.5 billion, which is an overall increase of 11% increase over last year – New and annexed value represents $193M – Existing property increased 6.6% over last year – Frozen and Disabled exemptions values increased 12.8% to $2.15 billion, which represents 34% of our tax base – The average taxable home value increased $18,804 (8%) over the past year to $253,320 for 2016.

FY2017 Annual Budget

Key Elements for the FY2017 Budget: General Fund

• Proposed Property Tax Rate (Tax Year 2016):

– The proposed tax rate is $0.424 per $100 valuation, which is a decrease of $.01 from the 2015 Tax Rate.

• The effective tax rate is $0.393635, which represents the

rate that would be needed to produce the exact same revenue as the previous year

• The rollback rate is $0.427892
• The estimated tax increase for the average homeowner (on a

$253,320 value) would be $56.28 annually.

– This tax rate includes necessary funding for proposed

• perations and the standard debt plan

– The proposed tax rate also includes the sale of $10 million of voter approved debt for the Road Bond and $3 million of voter approved debt for Garey Park

FY2017 Annual Budget

Fiscal Year Tax Comparisons

• Fi

Fiscal Y Yea ear 201 2016

• Average Taxable Home

Value $234,516

• City Tax Paid

$1,017.80

• Fi

Fiscal Y Yea ear 201 2017

• Average Home Value

$253,320

• City Tax Paid

$1,074.08 Difference: $56.28

FY2017 Annual Budget

Sales Tax Revenue – FY2017 (General Fund)

• FY2017: $12.819M or 3.7% over projected

year end

FY2017 Annual Budget

Utility ROI and Other Revenue

• Return on Investment - the

community’s return for

• wning 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

• Other revenues - continue

to increase or remain stable

FY2017 Annual Budget

Key Elements for the FY 2017 Budget: General Fund

• Revenue Adjustments (post workshops):

– City staff have identified $388K in additional estimated revenue above the totals provided in the July 12th and 13th budget workshops. – These include reducing property tax revenue and increasing sales tax, sanitation and other revenue

FY2017 Annual Budget

Key Elements for the 2015-2016 Budget: General Fund

• Expense Adjustments:

– City staff have identified $387K in adjustments to expenditures the totals provided in the workshops – These include corrections to:

• Increase sanitation contracted expense to meet

revenue projections

• Public works position
• Fire assessments for promotions

FY2017 Annual Budget

Employee Compensation & Benefits

• Merit Increases – 2% average effective in February

2017 (non civil service employees)

• Step increases for civil service
• Market Increases – based upon actual

positions/market conditions

• Tuition reimbursement program - $100K
• No increases in health insurance

for City or employee contribution

• Ongoing wellness funding

FY2017 Annual Budget

General Fund – Proposed New Personnel Summary

• Fire – to meet staffing needs/reduce overtime

3

• Fire - EMS compliance officer

1

– 50% to EMS fund – 50% General

• Police - Emergency com operators

2

• Police - School Resource Officer

1

– (50% participation by GISD)

• Inspections - Assistant Building Official

1

• Public Communications - Info Specialist (Reclass)

1

• Library - Community Resource Coord. (grant)

1

• 2 Part time Tennis Center & Rec Center

1

• Garey Park position (begins in Spring)

1

• Public Works director

1

• Total

13

FY2017 Annual Budget

Operating Budget Highlights

• Parks a

and Recr creation

– Garey Park - $85K

• One employee to begin marketing and planning events
• Maintenance costs during construction

– Special Needs Camp increase (offset by revenue) – Increase in mowing contract - $25K – Continued annual $75K transfer to cemetery fund

• Begin planning for columbarium

FY2017 Annual Budget

Operating Budget Highlights

• Public

c Libra rary

– Book purchase/materials increase- $20,000

• City S

ty Secretary’s O Offi fice

– Historic Records preservation - $55K

• Str

treets

– ROW Maintenance - $25K

FY2017 Annual Budget

Operating Budget Highlights

Transportation D Division R Reorganization

• Reorganization in transportation area planned

– Establish a Public Works division to enhance infrastructure maintenance services – Transportation planning will be a function within public works

• Transportation engineering would move under

Engineering to more centrally focus on project delivery/capital project plan implementation

• Building Inspections would move out of Engineering to

report to an ACM to create synergies within Planning and enhance our development process

FY2017 Annual Budget

One Time Study Requests

• Planning - Comprehensive Plan Update

$123,000

• Planning - UDC Transportation Review

$5,000

• Communications - brand dev/guidelines

$20,000

• General Government

– Financial/HR System selection

$150,000

– Fiscal impact model/cost serve

$120,000

– Affordable housing tools

$35,000

• Total

$453,000

FY2017 Annual Budget

Council Discretionary Fund

2017 Anticipated/Budgeted Year End Funding 1,532,000 $ Increase in 90 day contingency (75,000) $ Recommended one-time costs for Police, Fire, Parks, Streets (254,000) $ and Records Recommended one time studies Comp Plan update (123,000) $ UDC/Transportation update (5,000) $ Housing Plan tools/implementation (35,000) $ FIS/HRIS criteria and selection (150,000) $ Brand development & design guidelines (20,000) $ Fiscal Impact Model/Cost to Serve Model (120,000) $ Subtotal - "one time studies" (453,000) $ Transfer to Council SRF from 2016 YE 750,000 $

FY2017 Annual Budget

DEBT

BT

FY2017 Annual Budget

Spring 2017 Debt Issue

• General Obligation Bonds

– Garey Park (2008 Referendum) $5.5M – San Gabriel Parks (2008 Ref) $1 M – Sidewalks (2015 Referendum) $2.632M

• Includes 2016 projects of $400K
• Certificates of Obligation

– ADA phase II $300K – Grace Heritage phase II $140K – 800 Mhz Radio replacement phase I $500K

• Amortize over 5 to 8 years

– Public safety vehicles $1.988M

• Amortize over 5 years
• Total tax supported

$12.06M

FY2017 Annual Budget

Spring 2017 Debt Issue

• Self Supporting Debt

– GTEC – Airport Road $1.85M – Fire Station 6 (ESD partnership) $300K

• Utility Debt

– Electric CIP $3.75M – Water/Wastewater CIP $20M

FY2017 Annual Budget

Spring 2017 Debt Issue

• General Obligation

$9.1M

• Cert of Obligation

$2.928M

• Self Supporting Debt

$2.15M

• Utility Debt

$23.75M

• Total

$37.928M

FY2017 Annual Budget

Debt Tax Impact

• Proposed tax supported

debt totals $12,060,000. Projected tax impact of 1.93 cents.

• Capacity the City gains

from a combination of roll-off debt and continued growth will be greater than the impact of the FY2017 debt.

FY2017 Annual Budget

SPEC

ECIAL REVENU NUE

FUNDS

DS

FY2017 Annual Budget

Operating SRFs

• Major Operating Funds

– CVB/Hotel Occupancy Tax – Paramedic Fund – Street Maintenance Fund – Main Street Special Revenue Fund

• Other donation/grant/dedicated funds

– Parks, trees, animal shelter donations, library donations

FY2017 Annual Budget

Convention & Visitors Bureau Fund

• CVB

– Collects Local Hotel Occupancy Tax of 7%

• Use is restricted by state law
• Used to fund visitor center and

promote the City

– Continue to promote Georgetown as destination for conferences, visitors, citizens – New Funding

• Economic Impact of the Arts study (CVB) - $25,000
• Advertising & Conference Recruitment - $80,000
• Conference shuttle/special event shuttles

FY2017 Annual Budget

Main Street Fund

• Accounts for revenue specified for Main Street

Façade grants

– Note: MS Operations funded by City – City provides $15K annually for these grants

• Donations; fundraising

– Grants given to businesses to improve facades or update signage downtown – 2016 Holiday lights sponsored by City/GUS Electric as in 2015

FY2017 Annual Budget

Paramedic Fund

• 2016

– Revenue is projected at $1.77M

• 20.7% less than anticipated due to start up challenges

and timing between event and payment for event

– Expenditures 1.5% under budget at $1.92M – 2016 shortfall of $148K

• 2015 start up costs of $704K

FY2017 Annual Budget

Paramedic Fund

• 2017

– Revenue is estimated at $2.2 million

• Improved collections without 2016 start up challenges

– Expenditures of $2.078 million

• 50% funding of Medical Health & Fitness Officer

– Position will be responsible for quality control and billing contract management – Hiring of paramedics to run the 4th TRV during peak period will reduce overtime

– 2017 shortfall will be reduced to $726K

FY2017 Annual Budget

Paramedic Fund

• Proforma – 5 Year Updated Assumptions

– Annual revenue covers on-going expenses – Shortfall due to startup cost to be reduced over time – Anticipate future full activation of the 4th TRV and replacement cost of the current vehicles in 2020

FY2017 Annual Budget

ELE

LECTRIC IC SERVI VICE CES

FUND

ND

FY2017 Annual Budget

Electric Fund – FY2017

• Operating revenues budgeted to increase 5.1%

due to customer growth

• Expenses decreased due to variances in capital

improvement projects

• Ending fund balance of $9.7M

FY2017 Annual Budget

Electric Fund – Key Initiatives/Growth

• Personnel

– Utility Analyst – support for power supply – Fiber Infrastructure Tech

• Radio System replacement
• Meter replacements
• $4.8 Million in CIP

– On-going system expansion – Downtown overhead conversion

FY2017 Annual Budget

WAT

ATER SERV RVICES

FUND

ND

FY2017 Annual Budget

Water Services Fund – FY2017

• Operating revenues 6% higher than budgeted

due to continued growth

• Overall 11.5% increase in expenses
• $46.7M in capital projects

– Cash funding of $26M – Debt funding of $20M

FY2017 Annual Budget

Water Services Fund – FY2017

• Major infrastructure improvements for Water

– Domel Pump Station - $4.5 M – CR 255 main replacement - $5.9 M – Lake Water Treatment Plant expansion - $5 M – Sun City Elevated Storage Tank - $4.7 M

• Contracted cost savings with in house plant
• perations
• Additional contracted cost of water for Round

Rock and BRA Alliance water

FY2017 Annual Budget

Water Services Fund – FY2017

• Wastewater Capital Improvements –

– $12M Berry Creek Interceptor – $7.9M expansion of Pecan Branch plant – $2.2M San Gabriel plant belt press

• CIP Funding = $1.40/month Wastewater rate

increase

– 4.6% increase across all rate classes – $950K of debt service partially offset by additional $425K of revenue associated with the increase; remainder of debt service funded through growth

FY2017 Annual Budget

Water Services Fund – FY2017

• Wastewater Rate Comp

mparison

• Georgetown – flat rate; other rates based upon

10,000 gallons for comparison

$44. 44.04 $47. 47.17 $35. 35.60 $51. 51.59 $53. 53.62 $72. 72.55 $50. 50.27 $30. 30.65 $0.00 $20.00 $40.00 $60.00 $80.00 KILLEEN ROUND ROCK TEMPLE NEW BRAUNFELS CEDAR PARK SAN MARCOS LEANDER GEORGETOWN

Total Customer er C Cost: 1 10,000 000 Gallons ns Res esid identia ial

FY2017 Annual Budget

OTHE

HER ENT NTERP RPRISE

FUNDS

DS

FY2017 Annual Budget

Airport Fund

• FY2017
• Revenues increase of 27.8% due to increases in fuel prices and

implementation of rate increases as outlined in operational audit

• Fuel prices expected to increase proportionately at $600K

– New Funding

• Maintenance staff increase to enhance asset

management and is partially offset with decrease in contracted (ISF) costs

• Fund Balance estimated

at $122,000

FY2017 Annual Budget

Stormwater Fund

• FY2017
• Operational revenue increases by 3.8%
• No bond proceeds in 2017
• Capital improvements of $976K include curb & gutter

and drainage pond repairs

FY2017 Annual Budget

INT

NTERNAL AL SERVI VICE CE

FUNDS

DS

FY2017 Annual Budget

Joint Services Fund

• Provides services to all departments
• Legal, HR, Finance, Accounting, Purchasing, Customer

Care, GUS Administration, Engineering

– New Funding

• Utility Inspection Supervisor (Engineering)
• Risk-based audit program (Finance)
• Tuition assistance program (HR)

FY2017 Annual Budget

Facilities Fund

• Provides maintenance services to all City

facilities

• Janitorial, HVAC maintenance, landscaping, pest control,

fire systems, security systems, etc.

• Recovers costs through lease allocation based
• n square feet
• New Funding
• Major HVAC replacement for Recreation Center

FY2017 Annual Budget

Fleet Fund

• Services City rolling stock in all areas

– Provides capital replacement based on useful life

• f vehicles

– Public safety vehicles often financed through shorter term debt

• New Funding

– Replacement vehicles for Police and Fire – New vehicles for new positions

FY2017 Annual Budget

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
• Public Safety support staff 2
• Customer Information System support 1
• Web developer (transferred from Communications) 1
• Part time audio visual assistance 0.5

FY2017 Annual Budget

Self Insurance Fund

• Accounts for revenues and expenses related to

employee health benefits

• FY 2016 – projected ending balance of $2.6M

– Higher than anticipated – Worked with GGAF and consultants on reserves

• Rate Stabilization Reserve - $1.1M
• Incurred But Not Reported (claims) - $556K
• No FY17 rate increases for employee or employer
• Ending FY17 anticipated Fund Balance - $2.3M

FY2017 Annual Budget

Proposed New Personnel Summary

• Gener

eneral F l Fund nd 13 13

– 3 Firefighers – to meet staffing needs/reduce overtime – Fire - EMS compliance officer – 2 Emergency communications operators – Police - School Resource Officer – Assistant Building Official – Public Communications - Info Specialist (Reclass) – Library - Community Resource Coord. (grant) – 1 FTE (2 Part time) Tennis Center & Rec Center – Garey Park position (begins in Spring) – Public Works director

• Paramedic

dic F Fund und – 3 P Paramed edic/FF 3

• Elec

ectric ic F Fund und – 2 2 – Fiber Network Tech – Utilities Analyst

• Airport Fu

Fund – Maintenance Worker 1

• Join

int S Servic ices 1 – Inspections Supervisor

• Inf

nformatio ion T Techn hnolo logy gy 3. 3.5 – 2 Public Safety Systems Support – 1 Customer Information System Support – Webmaster (transfer from Communications – 0 net) – Part Time Audio/Visual Tech

• Total Proposed New Staff Additions

23.5

FY2017 Annual Budget

SUMMA

MARY RY AND AND

NEXT STEPS

PS

FY2017 Annual Budget

Budget Schedule

• August 9 – 1st Public Hearing on Budget and

Tax Rate

• August 16 – 2nd Public Hearing on Budget and

Tax Rate

• August 23 – 1st Reading of Budget Ordinance
• September 13 – 2nd Reading of Budget

Ordinance

FY2017 Annual Budget

Public Outreach and Education

• Proposed C

CM B Budget ( (7/26) p posted – City w y website a and ebook – Budget V Video – summary o y of p proposed C CM b budget – Press r releas ase o e on p prop

• posed

ed b budget

• Public H

Hearings gs o

• n P

Proposed B d Budget o

• n 8

8/9 a and 8 8/16

• Proposed S

Summa mmary B Budge get o

• n we

website/eb ebook

• k
• Ordinance r

readings gs a at public m meetings gs 8 8/23 and 9 9/13

• Ado

dopted B Bud udget i in B n Brie rief pu f publis lished/on w websit ite

• Ado

dopted B Bud udget ( (fu full bo l book) pu ) publis lished/on w website/lib library ry

• Budget V

Video eo o

• n A

Adop

• pted

ed B Budget o

• n w

website/ e/soci

• cial

al m media

FY2017 Annual Budget

Key Elements for the FY 2017 Budget: Next Steps

• The proposed FY2017 Municipal Budget

reflects the feedback and input from the City Council as well as the identification of needs/requests from city staff

• “Item I” on the City Council Regular Meeting

Agenda tonight is consideration of establishing a proposed 2016 tax rate (FY17) not to exceed amount and the public hearings for the tax rate and budget

FY2017 Annual Budget

QUESTIONS