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HomeMy WebLinkAboutCC 2013-08-02 Minutes MINUTES OF THE BUDGET WORK SESSION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE GRAND HALL AT THE NRH CENTRE, 6000 HAWK AVENUE, NORTH RICHLAND HILLS, TEXAS — AUGUST 2, 2013 Present: City Council: Oscar Trevino Mayor Tito Rodriguez Council Member/ Mayor Pro Tem Tom Lombard Council Member Tim Barth Council Member David Whitson Council Member Scott Turnage Council Member (present at 11:13 a.m.) Tim Welch Council Member Staff: Mark Hindman City Manager Karen Bostic Assistant City Manager Jared Miller Assistant City Manager Mike Curtis Managing Director Vickie Loftice Managing Director Jimmy Perdue Director of Public Safety Patricia Hutson City Secretary Larry Koonce Director of Finance Mark Mills Director of Budget Mary Peters Public Information Officer Patrick Hillis Director of Human Resources Craig Hulse Economic Development Director Jennipher Castellanos Senior Budget Analyst Kristin James Assistant to City Manager Christopher Smith Budget Analyst Laury Fiorello Assistant Finance Director Cecilia Barham Library Director Stan Tinney Fire Chief Jonathon Hilton Budget Intern Absent: Rita Wright Oujesky Council Member CALL TO ORDER Mayor Trevino called the Budget Work Session to order August 2, 2013 at 8:35 a.m. Mayor Trevino announced that the Crime Control and Prevention District Board would meet in conjunction with the Council Budget Work Session. Mayor Trevino and each of the council members briefly commented on the budget. Throughout the work session Budget Work Session Minutes August 2, 2013 Page 2 Staff presented a PowerPoint presentation that provided an overview of the Revised 2012-2013 and Proposed 2013-2014 Operating and Capital Project Budgets. The City Manager began the presentation by giving an overview of the proposed budget. The proposed budget is balanced and is based on the current tax rate of $.61 per $100 valuation. It does not contain any significant changes to operations and there are no new major programs being initiated. Mr. Hindman discussed the improving economy and improvements in sales tax and property values. There is cash funding for more projects, current year savings is being reallocated to offset future costs and the addition of some positions are being delayed to plan for future expenses. Mr. Hindman highlighted some of the changes in the proposed budget, presented an overview of the Capital Improvement Program proposed for FY 2013-2014, discussed some special issues and items for future consideration and advised of some programs and projects for Council to consider that were not included in the budget. Mr. Craig Hulse, Director of Economic Development, presented an overview of the local economy. Council was advised North Richland Hills is experiencing a stabilizing, expanding economy. There are improvements in unemployment, residential and commercial development, taxable sales and property values. Mr. Hulse discussed the growth in development and trends in taxable sales and property values. Council was advised of significant development plans and projects underway. Mr. Patrick Hillis, Director of Human Resources, presented an overview of the proposed recommendations for the compensation and benefits program for 2013-2014. Mr. Hillis explained how the merit pay program works and how a decision was reached on the type of pay range adjustments being recommended. The proposed budget includes a merit increase of 2% with an alternative for Council to consider an additional 1% merit increase. Recommended for Council consideration is a 3% merit increase with a 1% adjustment to the pay ranges. Additional adjustments to the pay ranges are also being recommended for some positions that are falling below market average. The recommendation is to raise these positions to market level and increase the merit increase amount up to 3% for many positions in order to remain competitive with the market. For FY 2013-2014 there are no plan design changes proposed to the health insurance plan. A 4% increase is proposed to the City budget and employee/retiree monthly medical premiums. Two new health programs are proposed that will offer medical tourism and an eligibility audit in January. A life insurance program has been added to replace the TMRS life insurance that was removed several years ago. Council discussed the list of unfunded programs and projects that had been left for Council to consider restoring to the budget. • 3% Compensation Increase $128,109 • Major Street Capital Improvements Reserve $190,133 • Additional funding for Preventative Street Maintenance (2014) $100,000 • Neighborhood Improvement Program (NIP) Funding $ 25,000 Budget Work Session Minutes August 2, 2013 Page 3 Mr. Hindman advised some of the programs and projects could be funded from the General Fund's projected ending balance ($343,133). He recommended Council consider funding the recommended compensation increase. Council concurred with the funding of the compensation increase. He also recommended Council consider designating an amount equivalent to 1/2 cent ($190,133) on the property tax rate to go into a reserve for major street capital improvements. After completion of the North Tarrant Express in 2015, the City will need to consider a street capital improvement program. By establishing a small cash reserve and allocating a portion of the tax rate through the operating budget there will be less of a jump-start to allocate the necessary funding to address the upcoming major street projects. After discussion by Council, consensus was to allocate the 1/2 cent to a transportation reserve. Council also discussed the City's Preventative Street Maintenance Program and partnering with the County on street preventative maintenance for some of the city's streets. The City would pay for material costs with the County supplying the labor. Staff will look at future funding of the NIP Program from possibly current year-ending balance or next year's budget. Mayor Trevino recessed the meeting at 10:01 a.m. and reconvened the meeting at 10:20 a.m. Mr. Mark Mills, Budget Director, presented an overview of the changes to the Revised 2012-2013 General Fund budget discussing significant impacts to revenues and expenditures. Mr. Mills compared the adopted to the revised revenues and expenditures and appropriations of fund balance. Revised 2012/2013 General Fund Overview SUMMARY I ADOPTED I REVISED I DIFF Operating Revenue $40,741,640 $41,506,847 $765,207 Approp. of Fund Balance 20,000 417,438 397,438 Total Revenues $40,761,640 $41,924,285 $1,162,645 Operating Expenditures $40,494,190 $41,636,369 $1,142,179 Reserves & Other 252,883 286,390 33,507 Total Expenditures $40,747,073 $41,922,759 $1,175,686 Balance $14,567 $1,526 ($13,041) Budget Work Session Minutes August 2, 2013 Page 4 Mr. Mills gave an overview of the Proposed 2013-2014 General Fund budget. Proposed 2013-2014 Budget General Fund Overview SUMMARY I ADOPTED I PROPOSED I DiFF Operating Revenue $40,741,640 $42,350,535 $1,608,895 Approp. of Fund Balance 20,000 20,000 0 Total Revenues $40,761,640 542,370,535 $1,608,895 Operating Expenditures $40,494,190 $41,751,480 $1,257,290 Reserves & Other 252,883 275,922 23,039 Total Expenditures $40,747,073 542,027,402 $1,280,329 Balance $14,567 $343,133 $328,566 Mr. Mills highlighted the net taxable value history and discussed the change in property values and sales tax revenues. Mr. Mills highlighted the changes in revenue and expenditures. The major increase in revenues is a result of property taxes, sales tax, construction related licenses and permits, ambulance fees and municipal court fines. The significant impacts to expenditures are: Merit Increase $272,548 Health Insurance $152,026 Internal Service Allocations $142,171 Ambulance Bad Debt / Commission $325,890 Public Safety Operations / Equipment $331,304 Replacement Ambulance Equipment $112,909 Gas Well Inspector $100,536 Fire Overtime $ 53,745 LifePakl5 Replacement $ 41,500 NEFDA Capital Replacement Dues $ 22,614 Pesticide (West Nile Initiative) $ 25,000 In response to a request for additional information on the ambulance related costs, staff discussed with Council ambulance billings and fees billed based on ordinance, and how Budget Work Session Minutes August 2, 2013 Page 5 the revenue received from ambulance billings is offset by adjustments from Medicare, Medicaid, Insurance, etc., uncollectible/bad debt and billing and collection fees. The proposed tax rate for Fiscal Year 2013-2014 was reviewed with Council. The proposed rate of 61¢ is projected to generate $23,196,188 from net taxable value at 99% collection rate. Of the estimated total revenue, 42.8% goes towards funding Debt Service and the Tax Incremental Financing Districts and 57.2% goes toward General Fund Maintenance and Operations costs. Mr. Larry Koonce, Finance Director, discussed with Council the Debt Service Fund. He reviewed the remaining authorized bonds from the 1994, 2003 and 2012 bond elections discussing the amounts issued to date, the 2014 proposed general obligation and certificates of obligations issues and the remaining authorized/unissued bonds. He also reviewed the debt service policy and other tax supported debt payments. Projects for the 2014 proposed bond sales are: Proposed GO Bond Sale FY 2014 Approved FY Proposed FY 2013 2014 Smithfield Rd - Davis to Mid-Cities (2003 BE) $ 160,000 $ 1,490,000 Jennings Dr./Dude Ct. (2003 BE) - 610,000 North Tarrant Parkway Median (2003 BE) 550,000 - City Hall (2012 BE) - 13,000,000 Animal Shelter Project (2003 BE) 1,300,000 - Total 2014 G.O. Projects $ 2,010,000 15,100,000 Proposed CO Bond Sale FY 2014 Approved FY Proposed FY 2013 2014 Ambulance Replacement $ - $ 200,000 Dump Truck Replacement 100,000 - Rescue Pumper Replacement 660,000 - Utility Projects - 1,330,000 Animal Adoption & Rescue Center 1,200,000 - TIF#1A Blvd. 26 Improvements - 2,000,000 Total 2014 C.O. Projects $ 1,960,000 $ 3,530,000 Councilman Turnage present at 11:13 a.m. Budget Work Session Minutes August 2, 2013 Page 6 Mr. Koonce updated Council on the City Hall Financing Plan. Council was advised the Financing Plan is on schedule. Funding for the facility comes from $48,000,000 in General Obligation Bonds approved by the voters with the remaining $22,000,000 from other funding sources. There was discussion on City Point Drive and the funding of the road. Council began a review of the Special Revenue Funds. Ms. Vickie Loftice, Managing Director, reviewed the Park and Recreation Facility Development Fund. Ms. Loftice highlighted the revised 2012-2013 Park Fund revenues and expenditures and the proposed 2013-2014 Park Fund revenues and expenditures. Mayor Trevino announced at 11:35 a.m. that he was recessing the Council Budget Work Session and calling the Crime Control and Prevention District Budget Work Session to order. After the Crime District's Board of Directors discussed the proposed budget, Mayor Trevino adjourned the Crime District Work Session at 11:40 a.m. and called the Council Budget Work Session back to order at 11:40 a.m. Mr. Mills reviewed and discussed with Council the remaining budgets for the Special Revenue Funds consisting of the Promotional Fund, Donations Fund, Special Investigation Fund, Drainage Utility Fund, Gas Development Fund and Traffic Safety Fund. Mr. Mills highlighted significant changes to the funds. Mayor Trevino recessed the work session at 11:48 a.m. and called the work session back to order at 12:58 p.m. All Council members were present as previously recorded. The revised and proposed Budgets for the Enterprise Funds (Utility Fund, Aquatic Park Fund and Golf Fund) were presented to Council. Ms. Bostic highlighted the revised 2012-2013 revenues and expenditures and proposed 2013-2014 revenues and expenditures for the Enterprise Funds and pointed out any significant impacts to the funds. Mr. Mills presented overviews of the Internal Service Funds consisting of the Facility/Construction Management Fund, Fleet Services Fund, Information Services Fund and Self Insurance Fund. Mr. Mills highlighted the revised 2012-2013 revenues and expenditures for each of the funds and the proposed 2013-2014 revenues and expenditures for each of the funds discussing any significant impacts to any of the funds. Following the presentation on the Operating Budget, Council concurred with the budgets for all Operating Funds and with maintaining the 61¢ tax rate. Council began a review and discussion of the Capital Improvements Program Budget. Mr. Jared Miller, Assistant City Manager, presented the Capital Improvements Program for streets, drainage and utility discussing the continuing projects with funding in FY 2013-2014 and new projects. An overview of the following projects was presented: Budget Work Session Minutes August 2, 2013 Page 7 Continuing Street Projects: • Smithfield Road (Davis to Mid-Cities) • Snider Street Extension Project New Street Projects: • Bridge Street Structure Repainting Project • Illuminated Street Name Sign Replacement Project • Jennings/Dude Court Reconstruction • New Sidewalk and Sidewalk Rehabilitation Project • Preventative Street Maintenance New Drainage Projects: • Concrete-Lined Channel Rehabilitation Project New Utility Projects: • Bursey Water Storage Tank Solar Powered Mixer • Johnson Pump Station Component and Infrastructure Replacements • Miscellaneous Water/Sewer Main Replacements • Motor Operated Transfer Valves • Small Water Main Replacements • Telemetric Water Meter Annual Maintenance • Water Storage and Facility Security System Ms. Loftice presented the Capital Improvements Program for the Park and Recreation Facilities and Development Fund. Ms. Loftice highlighted the following continuing and new projects Continuing Projects FY 2013-2014 • Adventure World Playground Renovation • Calloway Branch Trail • Little Bear Creek Trail New Projects • Barfield/Cotton Belt Trail Connector • Park Pond Drainage • Park Infrastructure Maintenance • Richfield Park Improvements • Richland Tennis Center Asset Management Mr. Miller presented project updates to the Capital Improvements Program for NRH2O, Facility Capital Projects, Equipment Capital Projects and Economic Development Projects. The following projects were addressed: NRH2O Family Waterpark • Bayou Banquet Decking • General Facility Improvements Budget Work Session Minutes August 2, 2013 Page 8 Facility Capital Projects Continuing Projects: • Building Demolition • New Municipal Complex New Facility Projects: • Flooring Replacement at Fire Stations 2 and 3 • HVAC Replacement • Interior/Exterior Renovations Fire Stations 2, 3 & 4 Major Equipment Capital Projects • Backhoe Tractor Replacement (Unit 504) • Backhoe Tractor Replacement (Unit 505) • Ambulance Replacement (Unit 956) • Cell Phone Signal Booster— NRH Centre • Fuel Management Software System Economic Development Capital Projects • TIF 1 Expansion — Utility Burial and & Intersection Improvements • Business Improvement and Growth (BIG) Program Following the presentations, Council concurred with the Capital Projects Budget as presented. Mr. Hindman briefly recapped the special issues and impacts to the General Fund, Utility Fund, Sales Tax Funds, Enterprise Funds, Internal Service Funds and Special Revenue Funds. Mr. Mills reviewed the budget calendar and dates for the upcoming public notices and public hearings. There being no further business, Mayor Trevino adjourned the work session on August 2, 2013 at 2:33 p.m. Oscar �evino — Mayor ATTEST: - of C edidia4, atricia Hutson, i �= ~- '