1. City of Excellence City Manager’s Proposed 2014/15 Annual Budget
City Council Workshop
July 14, 2014

2. Background & 5 Year Overview
City of Excellence

3. City of Excellence - Background
Council Direction in 2012
Develop 5 year business plans
2030 Vision
Citizen Input
Master Plans
Goals
Council Focus Areas
CM Goals
Business Plan
5 Year Plan
CIP
Staff objectives
Annual Budget

4. Began in 2012 as staff directive to develop 5-yr tax model
Council Vision
Began in 2012 as staff directive to develop 5-yr tax model
Forecast based on 2030 Comprehensive Plan, planning documents & citizen input
Council Goal – Georgetown will be….
the PREMIER community in Central Texas
Georgetown is the “City of Excellence”

5. City of Excellence Defined by Council as…
One that maximizes its citizen’s quality of life
Five focus areas
Economic Development
Signature Destination
Public Safety
Transportation
Utilities
Each area has Business plan updated annually
Directs the Annual Budget

6. City of Excellence Strategic Goals – what is accomplished annually
Become basis for Annual Budget
February 8, Council defines strategic goals for each Focus Area
Adopted April 22, 2014
Directly addressed in 2014/15 proposed budget

7. COE - CY Focus Area Highlights
Economic Development
Sales tax growth continues to be high
Rivery/Sheraton Conference Center agreement completed
Created the Georgetown South TIRZ
Public Safety
3 Fire & Life Safety Inspectors and Emergency Manager Coordinator in place
PSOTC construction underway
City of Georgetown

8. COE – CY Focus Area Highlights
Signature Destination
Arts & Culture Center & Splash Pad – Oct 2013
Downtown Master Plan update completed
Playscape completed
Westside Park & Garey Park preliminary design and business planning underway
Major projects completed by year end:
McMaster Athletic Complex, River Ridge Pool, San Gabriel Trail Extension; San Jose Park, Chautauqua Park
City of Georgetown

9. COE – CY Focus Area Highlights
Transportation
1460 ROW purchase complete – construction to be bid August 1
$2 million in sidewalks including North Austin Ave and Mitchell Elementary school
Utilities
Wind energy contract signed
CTSUD merger in September
Enterprise Asset Management system goes live in September
City of Georgetown

10. COE – Other CY Highlights
Compensation & Benefits
Final phase of comp study awarded October 2013
Merit increases awarded in February
Public Safety steps fully funded
Transitioned to self insurance and kept Aetna!
New HR Director and department in place
VDI and technology upgrades continue
GO intranet site fully operational
City of Georgetown

11. City of Excellence - Five Year Plan
Develop a fiscally responsible plan with policies to support the Focus Areas while alleviating and reducing future tax impacts
Economic Development
Signature Destination
Public Safety
Transportation
Utilities

12. City of Excellence – 2019 Nationally recognized as “COE”
Continued moderate growth ahead of US
Population 51,900 to 67,500
Fire Services area 78,000 to 98,000
Utility customers 28,000 to 42,000
Includes 8,000 new from CTSUD
Original Sun City has built out
New expansion underway
Rivery conference center
Open and operating
Retail expansion in SE

13. Public Safety - 2019 Community continues to feel “SAFE”
Public Safety Operations & Training Center
Operational since 2015
Partnership with ESD #8
East Side Fire Station about to open
Emergency Warning System in place
Well equipped, trained & compensated staff
30 additional fire staff
13 additional police staff

14. Signature Destination - 2019
Downtown
Thriving Arts Center
New Parking Garage
Sidewalks new and expanded with street and light posts
Downtown West facilities Phase 1 completed
Municipal Court & City Hall relocated
Phase 2 underway
Winery center
Expanded retail mix

15. Signature Destination - 2019
Parks and Recreation
Neighborhood parks, pools and playgrounds are well maintained
River trails have been expanded
West side park construction underway
San Gabriel Park updated
Festival area downtown underway

16. Utilities
Increase ROI contribution thru growth & business management
Regional leader in water management
Incorporated CTSUD
Highly competitive power rates
Low cost for economic development
Environmentally sustainable
Water policies and conservation
Conservation demo center
Drainage Management
San Jose area buy outs complete

17. Transportation - 2019 Sidewalks: City-wide walkability expanded
2015 road bond program underway
FM 1460 completed
Austin Ave Bridges rebuilt
Rivery Blvd extension complete
Urban transit operating
Traffic system in place
Streets well maintained
Airport is self sustaining!

18. GOAL: Attain “City of Excellence” at lowest possible tax rate
COST GAP: We’ve made progress!
2012/13 - $0.66 to fund COE in 2017
2013/14 - $0.57 to fund COE in 2018
Property tax rate:
$ As is
$ With $30M road bonds
City of Georgetown

19. City Manager’s proposed 2014/15 Annual budget
Continuing the City of Excellence
City Manager’s proposed 2014/15 Annual budget

20. Total Budget = $231.1M Proposal - Overview
1.8% decrease from prior year
2013/14 amended budget = $235.2M
General Fund = $52 Million
$49.4 Million in 2013/14 projected
Capital Improvements = $40.4 Million
$55.2 Million in 2013/14 (amended)
Purchased Power = $37.1 Million
GUS = $46.9 Million

21. 2014/15 Budgeted Revenues

22. 2014/15 Budgeted Expenses

23. General Fund Variance

24. Council Strategic Goals
Major driver for annual budget
All addressed specifically by Focus Area
Existing staff & funds used where possible
New resources proposed to meet direction
Other items funded only as required for:
Completion - example: PSOTC operations
Growth - example: population & customers
Legal - example: MS4

25. City Manager’s Process
Focus: Council Strategic Goals
Base budgets reviewed
Maintaining service levels & requirements considered
Collaborative review by Executive Management Team
Result – cross-divisional, consensus based proposal to Council

26. Economic Development Business Recruitment/Retention
Convert PT Program Manager to Full-Time Business Development Manager - $54,000
Expand marketing and retention - $30,000
Develop plans for Major Gateways
Williams Drive – 1st focus
Update plan, evaluate study area and look at implementation options - $25,000

27. Economic Development Workforce Training Affordable Housing
Work with GISD
Affordable Housing
Develop incentive program
Review UDC process
Expand planning staff & software - $92,000
Create capacity to improve process

28. Public Safety Maintain competitive pay Fire-based Paramedic program
Evaluate structure, add lateral entry options
Public Safety steps fully funded - $114,000
Fire-based Paramedic program
9 new fire fighters, 2 TRV’s - $1.4M
Fee based program, self supporting on added costs
Best practices & diversity
Review fees, hiring strategies, programs
City of Georgetown

29. Public Safety Police Crime Deployment Unit Best practices & diversity
3 new officers and equipment - $448,200
Create 5 officer unit to proactively identify address crime issues
Narcotics, violent crime, property crime
Best practices & diversity
Review fees, hiring strategies, programs
Add code enforcement officer
PT Volunteer Coordinator
Animal Shelter facility planning
City of Georgetown

30. Signature Destination
Downtown West Plan
Develop phased plan to address Court, City Hall & Parking - $1.7M
Downtown Master Plan
Purchase Grace Heritage lot - $194,000
Signage, ADA repairs, underground electric, tree replacement - $547,000
Downtown ordinances
Review and develop improvements
City of Georgetown

31. Signature Destination
Sidewalks
2nd street & 11th street - $500,000
Coordinated with Street projects
Surveys & outreach
Historic Resource Survey update - $50,000
Rivery
Add coordinator in CVB late in FY - $27,000
Work with private sector on sales & marketing
City of Georgetown

32. Signature Destination
Future Park Plans
Business plans for Westside & Garey parks
Coordinate efforts with Wilco & Lake Georgetown
Park System Maintenance
Williams Drive Pool - $850,000
VFW improvements - $1.3M
Ongoing repair and rehab efforts - $52,000
Playground audits, self assessments
City of Georgetown

33. Transportation Enhance planning and education efforts
Restructure Public Works using existing position - $108,000
Road bond election plan – May 2015
Committee established - $80,000
Street sales tax renewal
Public transit
Cap Metro partnership continued
Next phase implemented $291,400
City of Georgetown

34. Transportation Trolley Airport
Coordinate efforts with Cap Metro and new Rivery development
Airport
Fund grant match for TXDoT required runway improvements
Increase in hangar rentals and fuel
Restructuring business operations
City of Georgetown

35. Utilities Conservation Integrate CTSUD Energy
2 new positions & new programs - $252,800
Expand conservation programs to address water demand
Integrate CTSUD
Energy
Add wind and solar options
Marketing and public relations
CIS implementation - $4.5M
Data analysis - $64,000

36. Cross Cutting Themes HR issues addressed city-wide
Organizational development $50,000
Continue to pursue best practices and customer focus
Marketing & promoting of Georgetown
Add position & continue reporting $74,000
Develop metrics
Board & Commission training

37. Additional Support
Added Electric & Water staff to meet needs of customer growth
Implement IT Master Plan
2 additional support positions to maintain internal services
Continue facility maintenance
Maintain fleet
Implement asset management system
Replace 25 vehicles
City of Georgetown

38. Employee Compensation & Benefits

39. Salaries & Compensation 2014/15
All Compensation Plan items included
Cost of Living Adjustment - $431,000
All departments took reduction to fund this portion!
Maintenance (merit) - $229,605
Both effective February 2015
Public Safety Step Increases included
Cost for 2014/15 $114,000
City of Georgetown

40. Employee Benefits Health insurance Self insurance program included
Results positive to date
Jan 1, 2015 will start 2nd year of program
12% premium increase assumed
Impacts of Affordable Health Care Act
Market increases
Same provider - Aetna
Goal to have minimal impact to employees

41. TMRS - Update
2013 Unfunded Actuarial Accrued Liability (UAAL) - $17.9 million
2012 $10.6 million UAAL
Increase in UAAL due to new valuation methodology
2013 Funded Ratio – 81.3%
2012 – 86.7%
Down 6% due to more conservative valuation methodology
Policy minimum target is 80%

42. TMRS - Update 2015 Required Contribution - 11.83%
2014 Contribution Rate – 11.91%
2015 Recommended %
$172,000 city-wide
Proposal
Use additional contributions to improve funded liability position of retirement program

43. TOTAL 31 FTE Staffing Additions

44. New Employees By Division
Division/Department
FTE’s
Downtown & Community Services
Communications 1
CVB
Parks & Recreation 2
Finance IT
Management Services
Economic Development .5
Planning
Division/Department
FTE’s
Public Safety
Fire 9
Police Ops
3.5
Code Enforcement 1
GUS
Administration
Conservation 2
Inspections
Electric Ops and T&D 4
Water Ops

45. FTE’s Per Capita
Continues lean focus in face of growth

46. Capital Improvement Projects
Recap for 2014/15

47. TO BE UPDATED
City of Georgetown

48. Utility CIP Highlights
Electric substation & communication improvements - $2.4 M
Solar Energy - $3.3 M
Shell Road Water Line - $1.7 M
Rabbit Hill Elevated Storage - $1.7 M
Edwards Aquifer Replacements - $2.5M
Westinghouse Lift Station - $3M
City of Georgetown

49. Transportation CIP Highlights
FM 1460 Construction - $4.7M
Street Maintenance & Repairs - $2.1M
Street Rehab - $900,000
2nd Street, W. 10th, W. 11th, Stadium Dr.
Traffic signal Williams Dr & Jim Hogg - $300,000
Smith Branch Buyouts - $2.2M
Airport Runway Repairs - $900,000
City of Georgetown

50. TO BE UPDATED
City of Georgetown

51. GCP Highlights Parks Sidewalks Downtown
Williams Drive Pool, VFW Park, Splash Pad
Sidewalks
2nd Street, 11th Street, ADA work
Downtown
Purchase Grace Church parking lot, construct 8th & MLK parking
Phase I of Downtown West
Still being reviewed by Council
City of Georgetown

52. Financial Information Revenues & Resources

53. 2014/15 Policy Compliance
Fiscal & Budgetary Policy compliance maintained
Operating budget balanced with on-going, sustainable funding sources
PY fund balances used for 1-time expenses
Times coverage ratios maintained
Contingency reserves according to policy

54. 2014/15 Contingency Reserves
$18.82 million City-wide = 75 days
75 days City-wide operating expenses
Increased from $17.7M in 13/14 due to operational increases
$7.70 million in General Fund (90 days)
$7.5M in 2014 – 2.6% increase
Excludes Capital Projects, purchased power costs and interfund transfers/charges

55. Projected 2014/15 Debt Update!
Actual bond amount determined at time of issuance. Project timing & any excess funds may reduce bonds issued.

56. The Good News – Growth! Sales tax continues to grow
Current Year = 12.7% increase over prior year
5.0% increase included in 2014/15
Property tax values are rising
13.2% preliminary increase in Assessed Valuation
Utility revenues continue to grow
Growth rates average 3 - 5%

57. Financial Impacts – General Fund
Revenues have continued to improve!
5% increase in sales tax for 2014/15
Matches economic forecast
Development revenues projected to increase
New permits greater than anticipated
Property tax revenue as expected
Interest rates - continue to be minimal

58. General Fund Revenue Sources
PRIOR YEAR PROJECTIONS
BUDGETED 2014/15
*Charges for Services: Interest, franchise fees, development fees, parks & rec fees, muni court fees, and Fire/ESD Contract

60. 1-Time General Fund Expenditures
Funded with PY ending fund balances
Capital maintenance on Streets
D&CS Surveys & Updates
Fire department new supplies & equipment
Expanded home repair program
Park maintenance & improvements

61. Financial Impacts – Utility Revenues
Electric Revenues
Revenues match projected population growth and increases in usage
Water Services Revenues
Budget increase due to population growth
Cautious in case of rain and lower temperatures
5 year rolling average is used in forecast
Tap fees / Impact fees
Increase due to > development activity

62. 2014/15 Utility Rates Water - NO CHANGE Wastewater - NO CHANGE
Electric - NO CHANGE
Stormwater - NO CHANGE
Sanitation - Small – pass thru

63. Outstanding Items Funding for City Secretary Position and Archiving
General Fund cost - $90,000 in 2014/15
CTSUD
Transaction not complete - Budget impacts not included yet
Sanitation increase
General Fund revenues & expenses to be adjusted accordingly

64. Outstanding Items - Airport
Airport continues to be in the “RED”
Business Plan – implement in 2014/15
Self-funded within 4 – 5 years
Increase hangar rentals
Review fueling services
Incorporate customer service/business operations into Customer Care

65. Proposed 2014 Property Tax Rate

66. Property Tax Overview Ad Valorem Taxes (in proportion to value)
Based upon value of property
Determined by outside agency
Williamson Central Appraisal District
WCAD determines “market value”
City does not determine value of property
WCAD does not set the tax rate
City’s property tax rate set by Council

67. Property Tax Overview Two Elements of Property Tax Rate
Operations and Maintenance (O&M)
Funds on-going General Fund operations
Public safety, library, social services, parks & streets
Interest and Sinking (I&S)
Funds payments on debt for general government (not utility related) improvements
Tax Rate = O&M rate + I&S rate
Calculation:
Tax rate x taxable value/$100 = your City tax levy ($ paid to City)

68. Property Tax Overview - Definitions
“Effective” Tax Rate
“A calculation, based upon new valuations, that gives the City the exact dollars in revenue as generated in the previous year”
Typically, when values rise, effective rate is lower
Typically, when values lower, effective rate higher
City’s Effective Tax Rate Calc impacted by Over 65 Tax Freeze and Abatements
If proposed rate higher than effective rate, state law requires special notices to be published

69. Property Tax Overview - Definitions
“Rollback” Tax Rate
Taxpayers may petition for rollback tax election if City proposes tax increase over the “rollback rate”
“Rollback” rate =
Sum of 8% increase over the “effective” O&M rate, plus the I&S rate
8% increase in the O&M rate could trigger a rollback election

70. Property Tax Overview - Definitions
Truth In Taxation
State laws that regulate public hearings & published notices for taxing entities
Depending on the proposed rate, various publications and hearings may be required

71. 2014/15 Assessed Valuation Tax roles will be certified on July 25th
Preliminary Assessed Valuation $5.3B
Includes $163M NEW property (new & annexed)
13.2% above prior year
9.2% increased value on existing property
2014/15 Average Home = $221,723
16.2% Increase over PY ($190,802)

72. 2014/15 Assessed Valuation $216M in NEW “frozen values”
Total frozen = $1.65B
31.1% of total valuation is “frozen”
15% annual increase for 2014
Increased impact of “Abated Property”
Citicorp values increases abated 75%

73. Funds City Manager’s Proposed Budget
Proposed Tax Rate = $
Funds City Manager’s Proposed Budget
$ NET decrease over prior year $
Debt decrease = $
O&M decrease = $
5.06% above the “effective” tax rate of $

74. Certified Property Values & Tax Rates
PRELIMINARY ASSESSED VALUE $5.3 BILLION
Tax Rolls Certified on July 25

75. Assessed Valuation by Type

76. Proposed 2014 Tax Rate = $0.43500 Maintenance & Operations
< $0.021 MORE than Effective Rate of $
Maintenance & Operations
2014/15 = $
1.61% LESS than PY rate of $
Interest & Sinking (Debt)
2014/15= $
0.46% LESS than PY rate of $
Total debt includes $11.25 cents for voter approved bonds

77. 2014 TAX RATE Components

78. Tax Rate Breakdown

79. Tax Rate Comparison
Proposed 2014/15 City rate update only, but prior year for all other entities

80. Conclusions & Next Steps

81. Conclusions Budget IS “lean”
Funds “needs” not “wants”
Council Strategic Goals funded & addressed
Resources reallocated where needed
Efficiency & Effectiveness reviews continue
Financial reserves funded per policy
75 days = $18.82M
Financial policy compliance maintained

82. Conclusions Tax rate is lower than last year
Remains among lowest in area
Service levels maintained & expanded
Growth and legal requirements addressed
Maintenance issues addressed
Streets, parks and sidewalks
Employee compensation addressed
Merit and cost of living included

83. Next Steps Tax Rate Public Hearings Budget Adoption
August 12 – 1st Public Hearing
August 19 – 2nd Public Hearing
Budget Adoption
August 26 – Regular Meeting
Public Hearing 2014/15 Annual Budget
1st Reading Tax & Budget Ordinances
September 9 – Regular Meeting
2nd Reading Tax & Budget Ordinances
All GTEC/GEDCO budget items

84. Next Step in the “City of Excellence” SUMMARY… the
Proposed 2014/15 Annual Budget….
Meets needs & expectations of our citizens and is the…
Next Step in the
“City of Excellence”

85. QUESTIONS?