HomeMy WebLinkAbout091314 CC MinThe City of West University Place
A Neighborhood City
CITY CoUni STAFF
Bob Fry. MUym M"helkom'City Meveger
Smen Semple, McYnl Tam Ahn BwmV,GNAWmcY
FA HeeNCaq Conoditj r Thelma Len; Ciry Soi
Icon 10 iwq Councilmembu
Dick Yehle, COmWmembar
CITY COUNCIL BUDGET WORKSHOP MINUTES
City Council of Me City of West University Place, Texas, met in a special budget workshop meeting on
Saturday, September 13, 2014, in the Municipal Building, 3800 University Boulevard, West University
Place, Texas beginning at 7:30 a.m.
Notice of the special budget workshop was duly posted in accordance with the Texas Grveniount
Code, Chapter 551.
CALL TO ORDER
Mayor Fry called the special workshop meet to order at 7:30 a.m.
Council and staff in attendance: Mayor Fry, Mayor Pro Tom Sample, Councilmembers HeatM1cott,
Johnson and Yehle. City Manager ROSS, City Secretary Lenz, Assistant City Manager /Public Works
Director Peter, Assistant Public Works Director Beach, Fxecu ore Assistant Evelyn. Police Chief
Walker, Fire Chief Taylor, Finance Director Daugherty, Controller Mooney, Parks and Recreation
Director O'Connor, Assistant Parks and Recreation Director White, Human Resources Director
Brendan, and IT Director McFarland.
Agenda was as follows:
1. City Finances Facilities, Firebrands, 2014 Tax Rate and the 2015 Budget
Matters related to City finances, 2014 tax rate and Me 2015 Budget including revenues and
expenditures for current and future years for all funds.
City Manager Ross and Finance Director Daugherty presented a slide presentation of an overview
of Me budget process, expenditures, operating funds, debt service, general fund resources, and
proposed capital projects for the proposed 2015 Budget. He first reviewed the Budget calendar:
• September 18, 2014 @ 5:15 p.m. — First Public Heading on Tax Rate (Spacial Meeting)
• September 22. 2014 @ 6:30 p.m. — Second Public Hearing on the Tax Rate and Public
Hearing on the 2015 Budget.
• September 29, 2014 @ 6:30 p.m. — Adoption of the Budget and Tax Rate (Special Meeting)
City Manager Ross explained that his is a workshop to discuss the proposed budget and get
Council's hardback on any budget items that Council would like staff to reconsider, change,
reorganize and /or provide other diandon. He said results of the Workshop helps staff to plan for
the public hearings and plan better for he adoption of the budget.
City Manager Ross provided an overview of the financing sources, financing uses, personnel and
the highlights of each of the major funds.
City Council Budget Workshop Minutss, September 13. 2014
Financing Sources:
• The tax rate used to support this proposed budget is $0.36110 per $100 value, with
$0.19341 supporting Maintenance & Operations and $0.16823 supporting Debt Service.
This is a $0.0123 decrease in the oveall tax rate.
• Council may choose to add up to $.00009 (approx. $28000) to the tax ate, if needed, and
still be at or below the rollback ale of $0.36119 per $100 value.
• Decrease in license, permits and fees is due to higher estimated building and contractor
permit revenue in 2015 than in 2014. 2015 brings the budget back to a historically
conservative level although construction trends remain promising.
• No proposed increases in water and sewer rates other than a possible pass - through
increase from the City of Houston in early 2015, to be determined at that time.
• Proposed fi 2% increase in solid waste fees. as planned from 2014 budget discussions.
•
Fund transfers are decreased In 2014, the Vehicle Replacement Fund returned $198k to
the Solid Waste Fund due to closure of the recycle center.
Financing Uses:
Personnel
• 2015 Compensation includes the full year funding of anniversary date salary increases
approved in 2014.
• Includes the updates to the compensation plan as presented to Council at the August 29v
special Council meeting, including revising the salary grace structure to align the Citys
recruitment and retention strategy to 15" percentile in its comparator group. This places
employees into live proposed structure, based on years of service. wild a minimum 3% and
maximum 15% increase, unless below range minimum.
• TMRS funding rate is budgeted at 12.09% for 2015, which is slightly up from 10.34% in 2014.
The increase is primarily attributable to the TMRS update to the modality tables used in
calculating retirement benefits.
General Fund'
• Fund Sources
o Tax rate for Maintenance & Operations: $0.19341 per $100 valuatiod a slight decrease
from the 2013 rate of $0,19631
$100,000 revenue increase due to increased property values
0 All other sources relatively stable
Page of 6
201illEstimarted
Lud5lEfudget
he
%Change
In mllllons
Personnel
$ 11142
$ 12.398
$ 1:256
11.21%
Aerating
1.262
9.168
1.905
26.24%
zlardind
0.168
0228
0.060
35.16%
ansfers
5.308
1199
-2.109
39.13%
Debt
9.331
9341
0.013
0.13%
total Uses
$ 33.211
$ 34336
$ 1.125
3.39%
Personnel
• 2015 Compensation includes the full year funding of anniversary date salary increases
approved in 2014.
• Includes the updates to the compensation plan as presented to Council at the August 29v
special Council meeting, including revising the salary grace structure to align the Citys
recruitment and retention strategy to 15" percentile in its comparator group. This places
employees into live proposed structure, based on years of service. wild a minimum 3% and
maximum 15% increase, unless below range minimum.
• TMRS funding rate is budgeted at 12.09% for 2015, which is slightly up from 10.34% in 2014.
The increase is primarily attributable to the TMRS update to the modality tables used in
calculating retirement benefits.
General Fund'
• Fund Sources
o Tax rate for Maintenance & Operations: $0.19341 per $100 valuatiod a slight decrease
from the 2013 rate of $0,19631
$100,000 revenue increase due to increased property values
0 All other sources relatively stable
Page of 6
City Council Budget WoMShop Minutes, September 13, 2014
• Highlights of Budget Increases
• Compensation Plan: $288,000 over 2014 Budget
• Administration: Separated Executive Assistant responsibilities from Communications
Manager position in 2014, funded mid -year
• Overtime: $130,000 primarily due to Police department vacancy coverage ($45,000) and
elimination of the Fire department's Kelly Day S80,00% Fire Chief Taylor spoke to explain the
Kelly Day peaedre He said duo to a fir h ider's mirp pattern, overtime is accrued and to offset or
prevent overtime, some cities ff aKelly Day, add West Used had It built into its schedidoes Me
mid - 1980'5. He said a does prevent same overtime, but it is also very crippling M the department
because ofminlmum coding He said the City has J people pe• shift and the City can't operate with
less than k so during the Kelly Day ryele, which mites up 40 percent of the schedule, the department
is already at minimum smoving. Chief Taylor hefiselli, ellmmatingthe Kelly Day provides the bear
e f assume personnel and is a good tdingfor song
a
• Communications; $45,000 includes new website redesign. new City calendar, and
additional special events communications
• Consultants: $48,000 includes Public Works professional services for updates to the
Comprehensive Plan and Subdivision Ordinance regulations
• Professional Duane $6,000 all departments
• Instruction Fees: $51,000, offset by corresponding revenue increase from the additional
classeeinstructor fees
• Tri- Sports: Additional $20,000 approved In 2014. Additional $20,000 being requested for
2015 (Not: Lefler from Tri -Spats received asking or an additional $5,000 for a total of
$125,000).
• Finance: $81,000 reduction due to allocation of natural gas to closings using it and
decreasetl funding for electricity to align with actual usage
• Police: Increased treval and training ($18,000) for specialized response team; and
increased operating supplies ($10,000) for additional uniform order and TLO Investigate
System
• Public Works: Eliminated Office Manager position; eliminated Planning Assistant position;
and increased Otiler Condcted Services ($30,000) for temporary labor to replace
eliminated positions and to scan documents to meet electronic records retention goals
o Perks and Recreation: Added a full -time Parts Technician, eliminating two perfoms park
caretaker positions; increased funding to TnSports ($20,000); increased funding for
cadming events In Sr. BoNlwd
Water and Sewer FundlHioMigMS:
No rate increase is included
The City of Houston has handled the City of pending rate increases for water purchases. When
a rate notdmation is reserved, a ate increase will be proposed to fund the increased cost of
water. This will most likely be annually in April 2015.
Ederded meter reading contract four months to support completion of AMR installation program
• New lighting at the wastewater treatment plant ($25,000)
Security cameras for water conduction plant at Wakeforest and Bellaire lower ($55,0110)
• Fence fronting N. Baesvrood Drive at the wastewater treatment plant ($35,000)
Councilmember yehle said given the focus on water usage and not having done a rate survey in a
long time, is staff contemplating a rat survey anytime in the future?
Page 3 of 6
City Council Budget Workshop Minutes, September 13, 2014
Finance Director Daugherty said she believes Mat last one was done in 200] -2008 and feels that It
is time for one. She said it is on her to-do list.
Councilmember Yehle said it is not urgent, but thinks it needs to be on the radar.
After discussion, it was stated that staff will wait until the AMR (Automatic Meter Reader) is in place
in order to gather some history before conducting the survey. Staff will include it t0 dre 2016
Budget.
Councilmember Heathrnit asked R the City could take funs and designate them specifically for the
streets to offset capital project costs down the read.
City Manager said, absolutely.
Councilmember Heathcoff said, from this point forward he would like staff to formalize an ongoing
philosophy tram a budgeting standpoint every time staff can capture some additional funds not
needed for operations, those funds should be rolled into a fund for big money projects down the
road.
City Manager Ross said staff does push funds to the capital accounts and will continue to do so.
Councilmember Heathooft suggested that thre reserve accounts for specific projects should be
announced to future new Councilmembers to speed up their learning curve.
City Manager Ross said they will include it as part of the Budget component of the new Council
orientation.
Solid Waste Fund:
• 2015 Budget includes a 6.1% rate increase and provides for a 4.8% fund reserve
• Adding Green Waste increases the rate by an additional $2 per month
• Pros of Recycling Yard Wash:
Based upon previous quantities, the City's recyrcling (diversion) rate would increase by
approx, 15 percent The Citys overall rate would be mare than 40 percent, which Is
extremely good for a City using 18- gallon bins and manual collection.
• Would reduce the amount of a recyclable product being sent to landfills that have limited
space.
• The City would receive approximately 150 cubic yards of mulch each year. This would
save approximately $5,000 in annual parks maintenance cost. This savings Is
calculated in the annual cost on fine previous slide.
• Cons of Recycling Yard Waste:
Monthly rates would increase by approx. $2 per month. This is not currently included in
the 2015 proposed! budget.
• Would require residents to use paper yard bags or plastic compassable bags, which
would cost between $2 -$3 more par month man the cost of traditional plastic bags (cost
based upon 2 bags per week avg) Previously, it was discussed using plastic bags only
to gain a better rely, but since the City collects limbs with our said waste, that material is
charged at the higher rate that a lizes either paper or plastic compossable bags.
Page 4 of 6
City Coundl Budget Workshop Minutes. September 13, 2014
Orval Marlow, Chair of the Recycling and Sold Waste Reduction Board, was present to aid in the
Solid Waste discussion.
After discussion related to yam waste, Mayor Fry raised a couple points. He said Councilmembers
campaigned to not raise taxes or fees and this would require raising taxes and fees. He also said
Council would be raising taxes times) for everybody to satisfy Me desires of a percentage of the
population.
Mayor Fry said what bothers him is when you put something like this in the budget it gets locked in
and doesn't come out. He said he is hearing Mat yardmen are getting away from recycling and
mulching and blowing rather than bagging the waste.
City Manager Ross asked if the Solid Wane reserve is deleted, will there still be a fee to
homeowners. Finance Director Daugherty said yes, Mere would still be a higher fee. She also
said she wouldn It recommend dropping the reserve down to $0 in Me fund balance, because there
is a small percentage for people who don't pay Neer solid waste bill. In light of this, Councilmember
Johnson asked staff to add a bad debt line item to Me Budget.
Councilmember Heathcott said he Minks there will not be the same level of participating collecting
green waste as oppose to recycling. He said he Minks it will be law percentage.
Mayor Pro Tern Sample suggested having a pilot program for one year.
City Manager Ross saying Me City had this program up until 2006, so Me City is lust starting again
what it was already doing.
Councilm enter Vahle said he is generally not in favor of this, but if staff did a one -year trial, what
would be Me parameter 0 say it is successful enough to continue? Assistant Director Beach said it
is had to say what would be successful. He said he can do more research, but Me City currently
averages between a and 7,000 tons of fresh per year. He said If there were only 700 or 800 tons of
yard waste, he wouldn't be able to support the met, but he could for 1,500 to 2,000 tans.
Vehicle Replacement Fund
Regaling the vehicle replacement Pond, Courn lmember Heathcott suggested having a separele
vehicle replacement Pond for fire trucks instead of using short-term debt. He said he doesn't feel
residents new should have to pay for future equipment.
Finance Director Daugherty said Mere is $200,000 transfer Into the Capital Reserve and half of Nat
can be used to begin the fund for the fire truck replacement fund Per Councilmember HeaMmtt'a
suggestion, there will be line hem for fire trucks under the vehicle replacement program fund.
Technolpgv Management Fund
• Requesting an additional position for 2015 due to the added technology within the City
departments.
Capital Projects
• Water& Sewer Capita) Projects Fund
o Milton 1.5 MG GST & 0 4 MG GST rehabilitation: $450,000
Page 5 of
City Council Budget Workshop Minutes, September 13, 21114
o No. 9 walerwell rehabilitation: $325,000
o Sludge dawstering— replace one belt filter press: $425,00G
o Replace metal fences at public works maintenance yi $25,000
General Services — Traffic
• Pavement Markings:
a Puri Thermo: $13,000
0 3800 University restriping: $9,000
o Ctty Cenlerstriping:$5,000
Facility Maintenance:
• City Center striping: $5,000
• Replace wallpack lighting for pool at WUPRC with LED lighting: $8,000
• Replace 5 -ton Community Building air handier (audlmriu ni heat): $3,000
• Replace 5 -ton Community Building air handler (Director's office heat): $3,000
• Replace two 3 -ton air handlere at Seoul House (electric heat): $4,000
• Scout House Flooring- epoxy paint floor: $5,000
• Replace gate operall $13,500
• Replace gates at PW Ores Fleet: $1,500
• Replace Metal Fences at Public Works Maintenance Vard: $5,000
• Replace wall A) units in PW Traffic and Fleet offices: $3,000
• Block Enclosure Around CPE Transformers at Public Works $10,000
• Heaters in Rest Maintenance Bay: $6,000
• Looking ahead
• Animal Control Shelter (2016) - Construct a new 500 -1,000 sq. fl. animal control shelter at
the Waste Water Treatment Plant. (Possible use and post sharing with neighboring cities)
• Vehicle Wash Bey (2016) — Construct a sent wash bay to service all City vehicles and
equipment with appropriate enNmnmental controls.
• Fire Apparatus Bay Roof Replacement (2018 — 2020) - Replacement of the roof over the
apparatus bay. This project will coincide with the replacement of the City Hall chiller.
• Underground Fuel Storage Tanks (2018) — Replace the existing 10,000 gallon underground
fuel storage tanks installed in 1992.
Regarding City gateway signage, Cou usins mbar Vehle sand he does not see the goal or funding
for this in the budget. City Manager Ross said this is a goal for 2014.
Fee Schedule— No significant changes.
In summary, overall, Council has no concerns with the compensation plan. Council supports giving
Trl -Sports the $125,000 it requested.
Council would also like staff to review the wild waste reserve fund. They would like the tax rate to
be at fire not to exceed amount and put the $20,000 generated into a capital fund.
With no further discussion, Mayor Fry auto Mill gat 10:20 a.m.
Prepared By: ✓ " AF/vrx C� Ov�
Thelma A. Lenz, City Secret tlYk!
Page 6 of