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2002-08-22 Budget Work SessionCity of Southlake, Texas to MEMORANDUM taw TO: Billy Campbell, City Manager FROM: Sharen Elam, Director of Finance Ext. 1713 SUBJECT: August 22, 2002 Budget Work Session Follow-up There were several questions raised by City Council during the first budget work session. Below I have outlined answers to each question raised during the work session and additional questions raised subsequent to August 22. If additional information is required, I will be happy to assist with further discussion/explanation. 1. Council Member Tom Stephen wanted to know the future cost associated with fully staffing the DPS West Facility and the opening of the DPS North and East Facility. West Facility would require hiring 6 additional firefighters. The first year of funding would be $275,016 of personnel cost and would increase each additional year due to funding the pay plan at 5% step increases each year and any increase in annual health/dental/life premiums. Staff suggests fully staffing this facility in fiscal year 2003-04. North Facility would require hiring 25 additional DPS employees (21 firefighters, and 4 Public Safety Officers(PSO) build out staffing. The first year of finding would be $1,234,732 of personnel cost and would increase each additional year due to funding the pay plan at 5% step increases each year and any increase in annual health/dental/life premiums. The Crime Control Capital Projects budget includes funding for the construction of the North Facility with an anticipated opening date in fiscal year 2004-05 (last quarter). A fire engine and a ladder truck would be required for the North Facility with a cost of $400,000 and $800,000, respectively. We will consider all financing options for the purchase of this equipment. • East Facility would not require any additional personnel. We would move personnel in the current East location (667 N. Carroll) to the new facility once construction was completed. Crime Control Capital Projects budget includes funding for the construction of the East with an anticipated opening date in fiscal year 2007-08 (last quarter). 2. Council Member Ralph Evans suggested using winter month's consumption for sewer billing. • As discussed during the budget work session, staff is currently working with the consultant on the update of the water/wastewater rate study. Based on preliminary drafts received on Tuesday from the consultant on winter -months averaging, we could cover sewer cost (debt service, operations and maintenance) if we structure the sewer rate the same as the existing water rate ($26.16 base rate and $3.00 per 1,000 gal) with a maximum volume charge of 10,000 gal. Staff will continue to fly Campbell, City Manager >eptember 5, 2002 e2 update the City Council on the progress of the rate study. We are anticipating bring the final document to Council within the next 30 to 45 days. 3. Council Member Tom Stephen suggested funding the pay plan at last year's CPI (2.8%) rate as opposed to the 5% step increase included in the proposed budget. • The difference would result in a reduction of $61,600 in the proposed budget. 4. Council Member Tom Stephen asked the question what is the dollar value of the assets with an average life of 20 years that 30 year bonds were issued to purchase the assets. • After reviewing_ the property tax bonds outstanding, we issued $18 million 30 year bonds for 20 year life assets. 5. Council Member Greg Standerfer wanted to know what the additional .01 allocated to debt would yield. • If Council chose to allocate the additional .01 to the debt service fund, the city would have an additional debt borrowing capacity of $3.8 million (20 year bonds) to assist with funding the capital improvement program. Based on the current property tax allocation for debt service of .12242, the city could fund $7.8 million (20 year bonds) of the capital improvement program. If you will recall fiscal year 1999-2000 the debt portion of the property tax rate was .13242. To balance the general fund budget at the tax rate of .422, it was necessary to transfer .01 from the debt tax rate to the general fund. 6. Council Member Carolyn Morris suggested that we continue the $1,000 membership fee to Southlake Sister Cities but discontinue our practice of sponsoring a Southlake repersentive to visit our Sister Cities. • This would reduce the proposed budget by $2,300. 7. Council Member Tom Stephen suggested that staff examine the opportunity of a lease purchase for the ambulance. • We received an estimate on a five-year lease that would reduce the proposed budget by $102,615. The annual lease payment would be $32,385 over the next five years. 8. Council Member Rex Potter suggested eliminating food for meetings and reducing the budget to only cover soft drinks and snacks (cookies, etc.). • The proposed budget reduced this item by $20,000 (57%) from the Adopted Budget for 2001-02. This could be a potential reduction of $5,000 to $8,000 from the proposed budget. .r 9. Council Member Rex Potter suggested removing the $300,000 for reimbursement to Cooper & Stebbins from the FY 2001-02 budget and use the savings to assist with the proposed Billy Campbell, City Manager September 5, 2002 Page 3 000 for Town Square's budget shortage of funding. The proposed budget includes $325, developer reimbursement. Council Member would prefer to ; start the reimbursement next i fiscal year as opposed to FY 2001-02. • This would increase FY 2001-02 roll forward fund balance by $300,000, therefore, increasing funding (fund balance) to assist with FY 2002-03 proposed budget funding requirements. 10. Council Member Rex Potter suggested reducing the legal service budget by $100,000 and requiring staff to monitor/control legal expenses within budget. • Staff has taken the following steps in order to increase efficiencies in the process of requesting general legal services: Block Appointments-CMO establishing "block" times with City Attorney's i Office to increase efficiency of billable attorney time; Communication Channels -working with the City Attorney and the law firm to identify and establish responsibility on particular issues, increasing efficiency regarding billable time; Departmental Accountability -insuring managerial accountability by breaking ter► down general legal services on a departmental basis, reviewing budget status at ib periodic intervals, and discussing procedural improvements; Managing Requests for Legal Services -development of request system to allow for planning of efficient Block Meetings with Attorneys, based upon priority, and allowing for managerial review and approval of requests for legal services; Operational Review/Procedures-CMO tracking billable hours in order to perform operational reviews in order to identify and implement efficiency procedures; Staff Authorization -each Department Director has identified in memorandum staff authorized to request legal services, streamlining access and insuring management review and approval. lly Campbell, City Manager September 5, 2002 age 4 It 11. Council Members Greg Standerfer and Tom Stephen wanted to know if the hiring of three traffic officers paid for themselves. With regards to this particular budget, it is important to understand the deployment of police officers and that the vacant positions consist of patrol officers, not traffic officers. Patrol officers are primarily responsible for patrolling of districts, neighborhoods, businesses, etc. A patrol officer responds to all calls for service and provides safety to the community. A traffic officer is primarily responsible for the enforcement of vehicle laws, maintaining a presence in high vehicle areas, and investigating traffic accidents. Given the opportunity to add police officers, the greatest need remains within patrol. As calls for service continue to increase, patrol officers are pulled from their patrol function and committed to the call. Occasionally, we rely on officers from the traffic section to fill in on patrol calls for service, taking them away from their primary function. When they answer these calls, they handle the- call and return to their traffic duties without being responsible for future activity in that neighborhood. Meeting with complainants, solving neighborhood problems, taking theft reports, responding to armed robberies, assaults, and many others are all the responsibility of patrol. Police have the greatest impact on crime when they are assigned to specific areas for long periods of time. Officers get to know the neighborhoods, the problems and problem makers. That is the basis of Community Policing and the model we are attempting to implement. Adding traffic officers would increase the number of officers at perhaps lesser cost to the city, but impacting the crime rate in the city and addressing our greatest need will require the assignment of these officers to patrol. 12. Council Members Greg Standerfer and Tom Stephen if the hiring of police officers and firefighters reduce the requested overtime amount. • The total police overtime request is $129,832. Only $22,968 is anticipated towards minimum staffing challenges. The remainder is anticipated to provide security at "events" such as handling the traffic related to Texas Motor Speedway functions, Holiday in the park, security at council and P&Z meetings, conducting backgrounds, training, etc. Because of the timing and limited duration of these events, it is much less expensive to utilize overtime than to hire enough officers to always have enough on hand to work these events. The additional officers might reduce the minimum staffing portion of the overtime budget slightly but the amount would not come close to the $131,000 needed for the three officers. The total fire service overtime request is $48,000. $33,600 is anticipated towards minimum staffing. The remainder is anticipated to be used for training purposes. The requested overtime amount is at a bare minimum based on the proposed part- M' time firefighters requested to staff during peak hours as well as minimum staffing. At this time the needed resources in firefighter staffing could not be made up by hiring from the overtime line. The amount to fund the full time positions would I lly Campbell, City Manager eptember 5, 2002 We 5 require $131,000 total dollars, overtime coupled with the part-time positions equates to $124,000. Due to the $7,000 difference and the $14,400 needed overtime monies for training the appropriate request would be to delay the additional personnel until the economy improves. RI Overtime requests, through the Department of Public Safety, are made after careful determination of all anticipated costs to meeting minimum staffing and costs related to service delivery outside of "regular duty". Please let me know if additional explanation is required. Staff will continue to examine any further options presented by City Council. CITY OF SOUTHLAKE L CITY COUNCIL BUDGET WORK SESSION: AUGUST 28, 2002 LOCATION: 1400 Main Street, Southlake, Texas Council Chambers in Town Hall DATE AND TIME: 6:00 P.M. AGENDA Call to order. 2. Executive Session: Pursuant to the Open Meetings Act, Chapter 551, Texas Government Code, Sections 551.071, 551.072, 551.073, 551.074, 551.076 and 551.087. Refer to posted list attached hereto and incorporated herein. Executive Session may be held, under these exceptions, at the end of the Regular Session or at anv time during the meeting that a need arises for the Citv Council to seek advice from the Citv Attornev as to the hosted subject matter of this City Council meeting, 3. Discussion: Fiscal Year 2002-03 Proposed Budget. 4. Meeting Adjourned. r CERTIFICATE I hereby certify that the above agenda was posted on the official bulletin boards at Town Hall, 1400 Main Street, Southlake, Texas, on Tuesday, August 20, 2002, at 5:00 p.m., pursuant to the Texas Government Code, Chapter 551. 'O. _ Zcn: Kim ush , Acting City Secretary •••'••.....•••'�•• If you plan to attend this public meeting and have a disability that requires special needs, please advise the City Secretary 48 hours in advance at 817-481-1519 and reasonable accommodations will be made to assist you. c L low Vt City Council Budget Work Session -IR August 28, 2002 Page 2 EXECUTIVE SESSION SECTION 551.071 CONSULTATION WITH ATTORNEY The City Council may conduct a private consultation with its attorney when the City Council seeks the advise of its attorney concerning any item on this agenda, about pending and contemplated litigations, or a settlement offer, or on a matter in which the duty of the attorney to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Board of Texas clearly conflicts with Chapter 551. This includes the following pending and/or contemplated litigation subjects: 1. Hanson Aggregate Central, Inc., vs. City of Southlake. October 2000. 2. Marcus Taylor vs. City of Southlake and TRI DAL, LTD. March 2001. 3. City of Southlake vs. Timarron et.al. May 2001. 4. Oakmont Enterprises, Inc., vs. City of Southlake, and Sabre, Inc. January 2002. 5. Leona and Raymond Fox vs. City of Southlake. April 2002. 6. David A. Gray vs. City of Southlake. April 2002. SECTION 551.072 DELIBERATION REGARDING REAL PROPERTY The City Council may conduct a closed meeting to deliberate the purchase, exchange, lease or value of real property. sir %W SECTION 551.073 DELIBERATION REGARDING PROSPECTIVE GIFT The City Council may conduct a closed meeting to deliberate a negotiated contract for a prospective gift or donation to the City. SECTION 551.074 DELIBERATION REGARDING PERSONNEL MATTERS The City Council may deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of public officers, including the City Manager, City Secretary, City Attorney, and city boards and commission members. A complete list of the city boards and commissions is on file in the City Secretary's Office. SECTION 551.076 DELIBERATION REGARDING SECURITY DEVICES The City Council may deliberate the deployment, or specific occasions for implementation of security personnel or devices. SECTION 551.087 DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS The City Council may discuss or deliberate regarding commercial or financial information received from a business prospect that the city seeks to have locate, stay, or expand in or near the city and which the City is conducting economic development negotiations; or to deliberate the offer of a financial or other incentive to a business prospect as described above. A FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A +.. CLOSED MEETING MAY ONLY BE MADE IN OPEN SESSION. Ado �CF -e t8c SK PA SP �,1512. Ll 4 I LOG OF PROCEEDINGS ELECTRONICALLY RECORDED .............................................................................................................................................................................................................................................................................................................................. ............... Pescription i CC Budget Work Session #2 ................... . .................. ........................................................................... . .............................. . §.................................................................................................................................... ............ Date 18 /28/2002 Location outhlake Council Chambers ................ . ................................................................................... ................... ; ........................................... ............................. Time Speaker ..................... ............ Note ,, ' ............. ..................................................................................................................................................................................... 6:21:1 PM ocall " work",** session 1 to order .................................................. N 6 executive* ­ ",,**,session *­­ ............ .......... .......... .......... ........... 6:21:33 PM necessary .................................................................... ? .................................................................................................................. I ..................................... ............. I ............. ...... ...... ................ 6:21:43 PM ::BC Intro remarks. If other sessions needed, it can be arranged. 'Brief powerpoint presentation, also answers to prev questions :from 1st session have been handed out by Finance Dir. ;;Sharen Elam. I proposed a tax rate - from the City Manager's I office. ...................... ......................................................... ............................................. 11 ...................................... ..................... I .............................. I ............................... 6 :23:50 PM BC :Work session purpose. Would like to determine tax rate :desired by the majority of Council tonight - so that Finance can prepare. Identify necessary sery related to corresponding tax :rate; determine utility rate structure. ..... ........................................ ................. .......................................................... . ..................................................................................................................................................................................... 6:26:52 PM BC :General Fund Budget - the proposed budget, includes cuts for :efficency, service cuts, and revenue enhancements. ..... ............................. .......... ............. ........................................................................................................................................................................ 6:29:42 PM BC Cuts for efficiencersonnel cuts y - p,etc. ..... ..................................................... . ........................................................................... . ... .......................................................................................................................................... .............................. 6:30:16 PM ':Additional cuts (previously approved but not filled) - postions, :no ex pay increses, mid -management 2%, defer remaining buy :in portion of vehicle replacement fund for a year ................................................ .................................................................. . .... ................................................................................................................................................................. 6:35:43 PM SE :unfunded needs - tech upgrades, misc capital items request by PW, park maint workers, misc. capital and service contract :funding, all capital requests for the library. GF Budget :Balancing eforts to date - improving cost effenciency. ..... ...................... ...................... ....... ....................................... .................... ......................................... I ........................................................................................................................................... 6:37:53 PM ana Y ::Additional Alternatives Debt Allocation Issues - proposed allocation raises portion of tax rate going to debt by one penny :the additonal penny will provide about 3,8 million in capital projects; strategic plan suggested 60%/40% split with debt at I 16.8cents - you could move back and fund .45 tax rate. ..... ........................................ ........... .................................... Replacement ..................................................... 6:39:46 PM ehicle Replacement Program -extended to 4 year :implementation, five year implementation yields a savings of $73,829, but begins to compromise fund, complete elimination :of program is not a sustainable option, since veh are all :ongoing expenses. ..... ....................................... ........................................................................... .................... I ................................................................. I .................... ......................................................................... 6:41:01 PM :Pay Plan Funding - proposed budget fund city's step and :grade pay plan (not reviewed in about three years). 26% of :employees on pay plan are topped out and will receive no :adjustments regardless; complete elimination of pay plan funding is not a sustainable alternative. ..... ......................................... .......... ...................................................................... ;v .................... ................................................................................... k................................................................ 6:42:58 PM Review of expenditure priorities and funding options. L 09/17/0215:34:16 1 1/4 M to 6:44:05 PM :Tax Rate Issues - proposed budget 4cent increase, each :penny roughly $305,000 rev to the city, 45.2 if move debt do :service back, list provided to show staffs priorities and funding :options. ..... .............. . §ff ................................................... .............. . ..................................................................................................................................................................................... 'Tax Rate History - same tax rate for 7 years when it was di :lowered from .45 to .42. Review impact to residents at 'different increments at 46.2 inc of $200 annually for a ............................................... $500,000 home. 6:47:44 PM ..... ................... ............... . . 1 .................... * ............................................................................ ............................... .......... ................... :Council Discussion Points - you set the tax rate, look at :service delivery priorities, give staff direction on GF budget. :We have to think only not just for today but for the future. 11-ooking at the budget is a service delivery budget. do ................................................. 6:49:44 PM .......... ........................................................................... .......................................................................................................................... .................................................... I Mayor :Question regarding reassign the debt (1 penny). To me that is V :a given that would be the first thing to do. How much do we :have in reservice can we draw a penny from that. SEat.46 :we will end fund balance at 15% which is required. We took 4 :cents from the fund. do................................................ 6:52:36 PM .......... ............................................. . ........................ . ..................................................................................................................................................................................... ex How much transfer from this year to last year. Current year we :are at 21 % - there may be some left there for FY01 -02. ................................................ 6:54:30 PM ........... ...................................................................... I ......................................................................... .................................... :Wal-mart the whole year? Yes. Chart priorities in staffs mind. :Ambulance seems to be needed - SE today we may be able to :fund by lease. Pay Plan needed. The others are not a priorty :to me if it means raising the taxes.\ :5 ..... ........................................ ........... ...................................................................... ..................................................................................................................................................................................... N ex :,Hate to get rid of veh plan. . ........................................................................... "W 6:57:48 PM ..................................................................................................................................................................................... Jorn Stephen ::things will be worse next year - need to do some planning for ithat. Veh plan needed. .......... 6:59:43 PM:discussion ..................................................................... ..................................................................................................................................................................................... on vehicle plan': iiii :replacement fund ........................................................... 7:06:21 PM .................................................... ............... :Keith Shankland ::what were the specifics of the plan - what vehicles, what ........................................................... : :condition - we don't have enough information ....................... ­*­ 7:0 43 PM .................................................... . ................................................................... ..................................................................................................................................................................................... m Stephen ;not responsible business to keep deferring costs; : 7:12:12 PM ........................................ .................... . ..................................................................................................................................................................................... ex Mould like to talk about other items not on the priority list. TIF ;bonds exceed expenditures on Town Hall approx $200,000 - 'could be used for other things. SE - next TIF Board meeting :Sept 17 would need to present to the Board. Rex suggest :using to pay Cooper and Stebbins or fund the library. ................................................. 7:11:47 PM ........................................................... ................ ................................. 11 ............................................................................................................................ ..................... FIke-x ........................................ :problem with funding pay plan . ... ....................................... .......................... 7:18:06 PM:Mayor . ........................................................................ I ................................................... I ................................. I ...................... :review priorities - to raises taxes for #3 - GS, #4 - TS some :how or another need; I would need to tell people that I'm .......... :raising there taxes for what reason? 7:22:19 PM .......... ...................... ............................................ .............................. ...................................................................................................................................................................................... Rex :48 7 2: ...................................... ............... ............................. I ........................ I ................................................. ... ............ ............. :,Carolyn Morris ow much money saved going to paperless packets 7:24:25 PM -& ..................................... - ...................... .......... ........... :discussion on tech needs Af 09/17/02 15:34:16 1 2/4 it 7:25:39 PM would find money somewhere else to take care of #1. CM :can't give you a yes or no; yes for #2,#3, also TS; KS - can't :answer yes or no w/o knowing if we can find savings :somewhere else. ................................... . ..................................................................................................................................................................................... :$3.00 a month on $400,000 for a penny - we need to look at a di resporibile budget. When it gets to $10 to $20 not being ........................................................... . responsible. 7:32:52 PM ....................................................... . ............................................... ............. ......... ex ................................................................ . ... ...................................... ........................................................................................................................................... : Me have been taking care of employees every year. ..... . . ................. I ....................... ...................................................................................... 7:36:54 PM ex I ................................ I ... . ...... :are we going to be able to see what capital projects we wi:*1F6e :able to do. SKY - Last year's cip will give you an idea. ............................................... Updated list at next CC meeting. dA 7:38:10 PM ................................. ......................................... :Keith Shankland .................................................................................................................................................................. .................. :more info about computers if we don't do this what will happen. If we are losing man hours it would be important to fund. They 'have been ranked by staff but I need to know why it is so important. ..................................... 7:41: 9 PM ....................... m Stephen ..... ........................................................................................................................................................................... : and 3 yes - pay plan at CPI IR. .................................................. :41:36 PM:Mayor . .................................................................. ....... ........... I ....................................................... .............................................................................................................................................. I ...................................... ino on 2 and 3 . .................................................. 41 7: 9: 6 PM ::carolyn .................................................................................. I ........... 000 in unused TIF can it be used in library - SE yes - 'library is in the TIF and it would have to be capital. They need :at least $33,000 (bluebonnet books) ........................................................... 5 PM ........................................................................... :discussion ................................................................................................................................................................. ................... .7:52:4 : ..... .............. .................................................................. carolyn .................................................................................... I ....................... I ........................................................................Y:5�i0 :questions - suggestions given that are not reflected in the 'sheet. Would like to know what we have saved. SE :increasing user fees (softball, baseball,etc.) from $8-$10 :would give us about $10,000. ................................................ 1111111 1%W 7:59:30 PM .......... ............ ex ................................... I ............................................. ........... ................................................................. edram franchise leases? Do we have an idea the amount of :increase - PF approx $35,000 annually - we are still ........................................................... 8:01:16 PM .. ...... ................................................... ......................................... 'discussion ........................................................................... ................................................................................................................................................... :TIF payment 8:08:04 PM Mayor .................................................... I ...............................................................................................................................iliri ::Lets put on next Council agenda - payment to Town Square. ........................................... :0 53 PM . ............................................................. aren ................................................... * ....................... * ............................................ ............................................... lQuestions from last budget work session #1 - #2 - $200,000 up :to potentially $1,000,000 #3 - #4 - #5 (follow hand out) ............................. ............................. 8:17: 10 PM ........................................................................ 'discussion on funding 3 ::Greg Standerfer - more traffic officers will :police officers and 3 generate additional revenue :firefighters ........................................................... 8:22:48 PM .................................... ................. :carolyn morns ..................................................................................................................................................................................... :question -most overtime for special events. RB-yescity :events, speedway, etc. all involves city sponsored events. ........................................................... PM ......... .......... ........................................................................... I:BC ..................................................................... ... ......................... 11 ..................................................... : .......................................................................... ;Utility Fund. Stands tands alone in its funding... ,4:',­*'­'"* ­,­'*­*­*­,***'­"*",** '­'­' 88:25:41 PM SE *** ..........:26:35 : 0iiiyRateSfudy. Baserate same; rate high users .................................................. pay more. Sewer rate - discussion. 8:33:21 PM ..... ........................................ .......... . ...................... ........... ........................................ ­ ....... . ** .. ........ . ............................................................................................................................... ..................................................... :Commercial rate discussion . 8:39:14 PM ..... ........................ I ............. ................................... ...... ........................... T ..................................................................................................................................................................................... :Sewer rate -increase of $16 in base rate for sewer 8:45:19 PM ................ I .......................................... ISE . .......... ............................. ifi­�i'v­e* list "t .................. .......... of sewer rates from other cities 8:48:51 PM I BC ..........where n*'d'** g o* - o­ d** idea ,,**"........... we need to go. Call Sharen if ........................................................... . .................. ......................................................... :you have any other questions. ; 8:49:17 PM I BC ...................................................................................................................................................................................... 'Other funds - TIRZ, SPDC, CCPD, Special Revenue ........................................................... ................................... Fund -Parks and Rec. E . 8:52:25 PM I . ............................. I ........................................................................................................................................ ;Status of facility construction for North site ........................................................... 18:56:36 PM:General .... ................ .............. I .............................................................................................................................................. Fund 09/17/02 V L 15:34:16 3/4 F 4W 16 qftw E AW ------------- :8:56:47 PM ..... ........................................ ............ :.................................................................. ........... ........................... I ................................................................................. I ......................................9:01:33 PM 6d reei6 get with sharen with questions, 1st public hearing :will be Sept. 3. You can consider at Sept. 3 and then meet in la work session between Sept 3 and Sept 17. ................... ........................................................................... ................................................................................................................................................................................. 9 :03: 5 PM Adjourned ......................................... ................. ........................................................................... ..................................................................................................................................................................................... 09/17/02 15:34:16 4/4 Ei