AGENDA CAPTION:
Title
Receive a Staff presentation and hold a Public Hearing to receive comments for or against Ordinance 2021-66, adopting a budget in the amount of $259,813,834 for the fiscal year beginning October 1, 2021 and ending September 30, 2022; authorizing certain adjustments to the budget with the approval of the City Manager; approving fiscal year 2021-2022 Capital Improvements Program Projects; adopting a fee schedule; including procedural provisions; and declaring an effective date; consider approval of Ordinance 2021-66, on first of two readings.
Body
Meeting date: September 7, 2021
Department: Finance Marie Kalka, Assistant Finance Director
Amount & Source of Funding
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Funds Available: Click or tap here to enter text.
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Fiscal Note:
Prior Council Action: Visioning Workshop, Budget Policy Workshop, Budget Workshops
City Council Strategic Initiative: [Please select from the dropdown menu below]
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☐ Parks, Public Spaces & Facilities - Choose an item.
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☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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Background Information:
This year’s budget totals $259,813,834 a 0.42% or $1.1M increase from fiscal year 2021’s adopted budget. This budget currently proposes a tax rate of 59.30 cents per $100 valuation. This budget is balanced and meets all criteria set forth in the City’s Financial Policy.
The City Council held Visioning workshops in January to choose their Strategic Initiatives and a Budget Policy workshop in February to formulate the Budget Policy with adoption in March. The Strategic Initiatives and Budget Policy were used to create the base budget and this, along with City Manager recommended additions, was presented to City Council during workshops in May, June and August.
The only General Fund user fee adjustments recommended for FY22 are the Interlibrary Loan Postage Fee going from $4.50 to $5.00 per recommendation of the Library Board and cemetery lots increased by $50 each. Development Service fees are being evaluated and once study is complete will come before Council and be implemented during the fiscal year.
Major fund summary:
General Fund budget drivers include:
• $887.5K to sworn Fire and Police as agreed upon in the FY19 Meet & Confer
• Personnel funding allocation for all non-civil service employees effective Oct. 1st
• Contracted service increases
• Restoration of support to transit operations with an increase of $650K
• Additional staff including Veterinarian (cost neutral), Bilingual Communications Specialist and Communication Specialist (funded 100% by Electric and Water/Wastewater funds)
• Capital outlay one-time expenses increase of $800K with use of fund balance
• Dissolution of TIRZ#2 (Blanco Vista)
Electric Fund budget drivers include:
• Effective 5% rate increase with average residential customer monthly bill impact of $5.31
• Two Meter Technicians ½ funded with Water/Wastewater
• Communications Specialist (in General Fund but funded 50% from Electric)
• Debt service increase of $1.2M
• Capital Outlay additions including SCADA, relay test rack, substation metering, GPS locator, water bench test, two bucket trucks, substation guard, digger derrick, fire infrared system and wire tensioner
Water/Wastewater budget drivers include:
• Water rate adjustment of 5%, Wastewater rate adjustment of 3% with average residential customer monthly bill impact of $2.09
• Two Meter Technicians ½ funded with Electric
• Communications Specialist (in General Fund but funded 50% from Water/Wastewater)
• Debt service increase of $4.5M
• Capital Outlay additions including SCADA, CCTV unit, vehicles, equipment, monitors, tank inspections and repairs
Stormwater budget drivers include:
• Stormwater rate adjustment of 8.5%, average with average residential customer monthly bill impact of $1.07
• Increase in operational expenses of $250K
Resource Recovery budget drivers include:
• Rate adjustment of approximately 4% with average residential customer monthly bill impact of $1.03
• Increase in garbage contract due to 3% rate increase as well as increase in customers
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval of the proposed budget