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2020 Budget PresentationCity Council Budget Workshop August 11, 2020 Workshop Overview ▪FY 20/21 Budget Highlights & Discussion ▪General Fund Summary ▪W&S Summary ▪Drainage Summary ▪SEDC Summary ▪Special Revenue Funds Summary 2 FY 20/21 Budget Highlights 3 ▪Comprehensive Land Use Plan/Unified Development Code Update ▪CIP Funding ▪Facilities Maintenance ▪Class & Comp Implementation/ Employment Cost Index (ECI) ▪Funding personnel recommended by Staffing Study FY 20/21 Budget Highlights 4 ▪Comprehensive Land Use Plan and Unified Development Code Updates ▪Proposed to include following components: ▪Updates to Future Land Use Plan, Parks Master Plan, and any sub-elements we desire to include (housing, education, etc.) ▪Will also look at implications to Master Thoroughfare Plan and Water and Sewer Master Plan FY 20/21 Budget Highlights 5 ▪CIP Funding ▪Allocated additional funds in General Fund for following areas: ▪Streets -$200,000 ▪Parks/Trails -$150,000 ▪Drainage -$100,000 ▪Sidewalks -$50,000 ▪One-time ▪CIP Plans FY 20/21 Budget Highlights 6 ▪Streets ▪CIP Total Funding Amount ▪Amount currently have in General Fund (recurring) - $210,000 ▪Estimated remaining 19/20 Reserves -$320,000 ▪Some bond funds from NTE left over -? ▪Amount adding (one-time) -$200,000 ▪Total: Estimated ~$700,000+? FY 20/21 Budget Highlights 7 ▪Streets: How we will spend it ▪Estimated $700,000+ ▪PCI Study -$100,000 ▪Contribution to FM 3009/FM 78 crossing study (with TxDOT) -$200,000 ▪Lindbergh (Main to Exchange) reconstruction and storm drain -$720,000 - $1,000,000 ▪Will prioritize these remaining 2020 CIP Projects in early FY 2020/21 when funding amounts finalized FY 20/21 Budget Highlights 8 ▪Parks/Trails ▪CIP Total General Fund Amount ▪Amount currently have (recurring) -$235,000 ▪Amount adding (one-time) -$150,000 ▪Total:$385,000 FY 20/21 Budget Highlights 9 ▪Parks/Trails:How we will spend it ▪Amount: $385,000 ▪Thulemeyer Park additional parking -$100,000 ▪Ashley Park Pavillion -$35,000 ▪Ashley Park Playscape -$65,000 ▪Pickrell Park Improvements -$35,000 ▪North Trail section -$150,000 FY 20/21 Budget Highlights 10 ▪Drainage ▪CIP Total Funding Amount ▪Amount currently have (recurring) -$83,000 ▪Amount adding (one-time) -$100,000 ▪Total: $183,000 FY 20/21 Budget Highlights 11 ▪Drainage: How we will spend it ▪Amount: $183,000 ▪Amazon Channel ▪Design and Construction Estimate: $300,000 ▪Remainder to be paid from Drainage Reserves FY 20/21 Budget Highlights 12 ▪Sidewalks (part of PW Streets budget) ▪CIP Total General Fund Amount ▪Amount currently have (recurring) -$75,000 ▪Amount adding (one-time) -$50,000 ▪Total: $125,000 FY 20/21 Budget Highlights 13 ▪Sidewalks: How we will spend it ▪Amount: $125,000 ▪Projects ▪Curtiss Avenue (Beacon to FM 1518) ▪Construction Estimate: $50,000 ▪Finishes sidewalk from Clemens to 1518 ▪Aero Ave. (Schertz PKWY to 1518) ▪Construction Estimate: $150,000 14 FY 20/21 Budget Highlights 15 ▪Facilities Maintenance -$290,000 ▪Base $235,000 ▪Additional $55,000 ▪Projects: ▪City Hall Counter Remodel -$110,000 ▪Community Center Kitchen Remodel -$20,000 ▪AAC Rear Fence -$35,000 ▪Library Restroom -$20,000 ▪Fire Station 1 Sleeping Area Floor -$16,000 ▪Preventative Maintenance AC Units -$34,000 ▪Emergency Maintenance -$55,000 FY 20/21 Budget Highlights 16 ▪Class & Comp Implementation ▪Fund at 97% of median over 5 years ▪Employment Cost Index (ECI) ▪1% initial (FY 20/21) -effective Oct. 1 ▪0.25% following 4 years ▪End up at 2% FY 20/21 Budget Highlights 17 ▪Staffing Study ▪Evaluated requested positions based on study ▪Proposing 4 new positions: ▪Police –Captain ▪Police –School Resource Officer ▪Fire –Emergency Management Coordinator ▪Planning –Senior Planner FY 2020-21 Budget ▪General Fund Proposed Budget $37,214,581 ▪Increase of $972,075 or 2.7%, from FY 2019-20 Adopted Budget, not including infrastructure funding ▪Non Personnel Budgets decrease 4.5% due to fewer capital purchases and lower tax abatement payments ▪Personnel Budgets increase 6.9% to act on the Class & Comp Study, Merit, insurance, ECI, and add 4 positions City Budgets –General Fund 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Final General Fund Budgets Budget Per Capita 0 100 200 300 400 500 600 700 800 900 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Est 2020 Est 2021 Revenue Per Capita Expenditures Per Capita Sales Tax -2.6% 3.7% 13.0% 12.9% 21.0% 9.5% -2.3% 5.7% -0.5% 17.1% -1.4% 13.9% 5.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Est 2020 Proj 2021 Sales Tax Growth Permit $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Permit Revenue Franchise $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Actual Fees $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Actual Fees Without Plan Check $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Actual Personnel $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Actual Operating $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Actual Capital Outlay $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Actual General Fund ▪Proposed Budget assumes a 26% Fund Balance requirement ▪Choices made in this budget will reduce the fund balance to 26% over the next 5 years 2020 -5 Year Forecast FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 Revenue $34,572,785 $36,535,951 $37,894,459 $39,317,256 $40,807,506 $42,368,531 Expense $34,719,223 $36,714,581 $37,903,259 $39,071,107 $40,734,853 $42,463,756 Capital Projects $4,000,000 $500,000 Reserve Funding ($4,146,438)($678,630)($8,800)$246,149 $72,653 ($95,226) Fund Balance %33.9%30.7%29.1%28.5%27.4%26.0% Long Term Debt Model ▪For I&S Fund ▪Purpose: ▪To avoid large tax increases in the future ▪Design: ▪Model is long term in nature ▪Includes all current debt obligations ▪Takes into account the growth of the tax base ▪Ensures fund balance never falls below a certain level 5 Year Summary –I&S Fund ▪At I&S Rate of $0.1651: Includes the following upcoming debt issuances: FM 1518: $9,400,000 –committed/voter-approved All Funds -Expenses General Fund 41% W&S Fund 28% EMS Fund 11% I&S Fund 8% Budget General Fund W&S Fund Capital Recovery Drainage EMS Fund Special Revenue SEDC I&S Fund General Fund $37,214,581 I&S Fund 7,094,861 Water & Sewer Fund 24,729,835 Capital Recovery Water 206,000 Capital Recovery Sewer 208,000 Drainage Fund 1,443,563 EMS Fund 9,703,111 SEDC 8,144,799 Special Revenue Funds 699,480 Grand Total $89,444,230 Fund Balance/Equity FY 2020-21 Total Expenditures Net Change Estimated Fund Balance General Fund $37,214,581 ($678,630)$10,513,720 I&S Fund 7,094,861 960 791,916 Water & Sewer Fund 24,729,835 774,533 10,011,164 Capital Recovery-Water 206,000 966,000 8,587,302 Capital Recovery-Sewer 208,000 464,000 7,617,139 Drainage Fund 1,443,563 (176,563)474,114 EMS Fund 9,703,111 82,314 2,962,791 SEDC 8,144,799 (3,496,428)16,107,454 Special Events Fund 32,100 0 110,517 PEG Fund 185,500 (95,500)794,548 Hotel Tax Fund 253,930 286,820 2,641,718 Park Fund 125,000 (51,500)204,370 Tree Mitigation 70,000 4,500 456,157 Library Fund 21,200 0 76,851 Historical Committee 11,750 0 13,766 Total:$89,444,230 ($1,919,494)$61,363,525 W&S Fund ◼Upcoming Projects include: ⚫Ware-Seguin to Lower Seguin Loop Line Construction $1,100,000 ⚫Greytown to Pfiel Loop Line Design $156,200 ⚫Corbett Ground Water Storage Tank Design $300,000 ⚫FM 1518 Utility Relocation Design $750,000 ⚫Aviation Heights Waterline Replacement $1,800,000 ⚫Northcliffe Country Club Estates AC pipe Design & Bid $100,000 EMS Fund ◼Hire a Full Time Instructor for EMT and other classes ◼Add 2 12-hour Full Time Paramedics ◼Add a 24-Hour Full Time Paramedic Drainage Fund ◼Drainage Channel Maintenance ⚫FY 2020-21 Project ⧫Amazon Channel -$300,000 Economic Development ◼Approved Incentives $3,119,275 ◼Tri County Road Improvements $4,050,000 FY 2020-21 Proposed Tax Rate 2020 Property Values 2019 Taxable value $3,754,805,757 2020 Equivalent Taxable Value $3,785,492,777 2020 New Taxable Development +$120,725,051 2020 Adjusted Taxable Value $3,906,217,828 Difference between Adjusted Taxable Values $151,412,071 Tax Rate No-New Revenue: The tax rate which will generate the same revenue for the city from property on the previous year’s tax roll. Voter Approval Rate: The rate if exceeded triggers an automatic election on the tax rate. Current:The rate currently adopted by the City. Proposed Max:The maximum rate set at which the final adopted rate cannot exceed. Tax Rate No New Revenue:$0.5079 Voter Approval:$0.5247 Current:$0.5146 Proposed Max:$0.5146 $0.01 is equal to $390,000 revenue or $24.45 on the average home Proposed budget assumes this rate Target Tax Rate Tax Rate Current Proposed Maximum M&O $0.3496 $0.3495 For day to day operations I&S $0.1650 $0.1651 To pay the City’s debt Total $0.5146 $0.5146 FY 2020-21 City Tax Rate ◼At $0.5079 No New Revenue Rate Existing Residents Average City Tax Bill 2019 Tax Bill = $1,200 Avg Home Value $233,200 2020 Tax Bill = $1,241 Avg Home Value $244,500 Increase = $ 41* *This represents the increase of the tax bill on the average taxable home value, including new construction FY 2020-21 City Tax Rate ◼At Current Rate $0.5146 Existing Residents Average City Tax Bill 2019 Tax Bill = $1,200 Avg Home Value $233,200 2020 Tax Bill = $1,258 Avg Home Value $244,500 Increase = $58* (increase of $17)** *This represents the increase of the tax bill on the average taxable home value, including new construction **This represents the increase of the tax bill on the average existing home FY 2020-21 City Tax Rate ◼At $0.5247 Voter Approval Rate Existing Residents Average City Tax Bill 2019 Tax Bill = $1,200 Avg Home Value $233,200 2020 Tax Bill = $1,282 Avg Home Value $244,500 Increase = $ 82*(increase of $41**) *This represents the increase of the tax bill on the average taxable home value, including new construction **This represents the increase of the tax bill on the average existing home Historic Tax Rates –Total M&O 0.3345 M&O 0.259 M&O 0.259 M&O 0.2842 M&O 0.2993 M&O 0.2993 M&O 0.2993 M&O 0.301 M&O 0.3164 M&O 0.3159 M&O 0.3168 M&O 0.3248 M&O 0.3497 M&O 0.3496 M&O 0.3495 I&S 0.0972 I&S 0.15 I&S 0.15 I&S 0.15 I&S 0.15 I&S 0.185 I&S 0.2006 I&S 0.1964 I&S 0.181 I&S 0.1752 I&S 0.1743 I&S 0.1662 I&S 0.1649 I&S 0.165 I&S 0.1651 0.0000 0.1000 0.2000 0.3000 0.4000 0.5000 0.6000 .5146 .5146 .4317.4090 .4090 .4974 .4342 .4493 .4843 .4999 .4974 .4911 .4910.4911 Discussion 48